By McCall                                             H.B. No. 2354
       74R7047 CAG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain contracts made by a governmental entity that
    1-3  require a payment bond.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 2253.021(a), Government Code, is amended
    1-6  to read as follows:
    1-7        (a)  A governmental entity that makes a public work contract
    1-8  <for more than $25,000> with a prime contractor shall require the
    1-9  contractor, before beginning the work, to execute to the
   1-10  governmental entity:
   1-11              (1)  a performance bond if the contract is in excess of
   1-12  $100,000; and
   1-13              (2)  a payment bond if the contract is in excess of
   1-14  $100,000.
   1-15        SECTION 2.  Section 2253.022, Government Code, is repealed.
   1-16        SECTION 3.  (a) In addition to the changes in the law made by
   1-17  this Act relating to contracts of governmental entities requiring a
   1-18  payment bond, this Act conforms the provisions of the Government
   1-19  Code regarding contracts requiring a performance bond and payment
   1-20  bond to changes in the law made by Section 1, Chapter 865, Acts of
   1-21  the 73rd Legislature, Regular Session, 1993.
   1-22        (b)  Section 1, Chapter 865, Acts of the 73rd  Legislature,
   1-23  Regular Session, 1993, is repealed.
   1-24        (c)  To the extent of any conflict, this Act prevails over
    2-1  another Act of the 74th Legislature, Regular Session, 1995,
    2-2  relating to nonsubstantive additions to and corrections in enacted
    2-3  codes.
    2-4        SECTION 4.  Section 2253.021(a), Government Code, as amended
    2-5  by this Act, applies only to a contract made on or after the
    2-6  effective date of this Act. A contract made before the effective
    2-7  date of this Act is governed by the law in effect on the date the
    2-8  contract was made, and the former law is continued in effect for
    2-9  that purpose.
   2-10        SECTION 5.  This Act takes effect September 1, 1995.
   2-11        SECTION 6.  The importance of this legislation and the
   2-12  crowded condition of the calendars in both houses create an
   2-13  emergency and an imperative public necessity that the
   2-14  constitutional rule requiring bills to be read on three several
   2-15  days in each house be suspended, and this rule is hereby suspended.