77R12613 BDH-F                           
         By Wise, Solomons                                     H.B. No. 3530
         Substitute the following for H.B. No. 3530:
         By Danburg                                        C.S.H.B. No. 3530
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a surety bond obtained for a public project and
 1-3     executed by a surety company.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 2166.258(b), Government Code, is amended
 1-6     to read as follows:
 1-7           (b)  In accordance with [Notwithstanding] Section 1, Chapter
 1-8     87, Acts of the 56th Legislature, Regular Session, 1959 (Article
 1-9     7.19-1, Vernon's Texas Insurance Code), the commission or other
1-10     agency may not require a contractor or subcontractor for any public
1-11     building or other construction contract to obtain a surety bond
1-12     from any specific insurance or surety company, agent, or broker.
1-13     To the extent consistent with that law, the commission or other
1-14     agency may require a contractor or subcontractor to meet part or
1-15     all of any other insurance requirements for the project under the
1-16     negotiated arrangement [meet part or all of the bonding or
1-17     insurance requirements for the project under the arrangement
1-18     negotiated by the commission or other agency].
1-19           SECTION 2.  Section 2253.021, Government Code, is amended by
1-20     adding Subsection (f) to read as follows:
1-21           (f)  A governmental entity may not require a contractor for
1-22     any public building or other construction contract to obtain a
1-23     surety bond from any specific insurance or surety company, agent,
1-24     or broker.
 2-1           SECTION 3. (a)  This Act takes effect September 1, 2001.
 2-2           (b)  The change in law made by this Act applies only to a
 2-3     contract for a construction project that is made on or after the
 2-4     effective date of this Act.  A contract that is made before the
 2-5     effective date of this Act is governed by the law in effect at the
 2-6     time the contract is made, and that law is continued in effect for
 2-7     that purpose.