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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 77(R)

HOUSE BILL 409

HOUSE AUTHOR: Shields et al.

EFFECTIVE: 9-1-01

SENATE SPONSOR: Madla

            House Bill 409 amends the Government Code to provide that a performance or payment bond, when required of a contractor by a governmental entity for specified contract amounts under the code, must contain either on the bond or on a bond attachment the name, mailing address, physical address, and telephone number of the surety company, plus the Texas Department of Insurance toll-free telephone number for obtaining the surety company's address. The governmental entity must provide the telephone number, and the prime contractor must provide both the number and the name of the surety, on the request of certain suppliers of public works labor or material. Amendments to the Property Code provide that bonds furnished by a general contractor to pay liens or claims by subcontractors under a private contract must contain the same detailed information, including the toll-free number, as applies to public work performance or payment bonds. The bill further amends the two codes to provide that requirements of notice to a surety are satisfied if notice is sent by certified or registered mail to the surety at the address on the bond or bond attachment, the address on file with the Texas Department of Insurance, or any other address allowed by law.