By: Madla S.B. No. 1266
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the requirement that the name, address, and phone
1-3 number of a bondsman appear on the face of performance and payment
1-4 bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 2253.021, Government Code, is amended by
1-7 adding Subsection (f) to read as follows:
1-8 (f) All bonds required under this chapter must clearly and
1-9 prominently display on the bond or attachment to the bond:
1-10 (1) the name, mailing address, physical address, and
1-11 telephone number, including the area code, of the surety issuing
1-12 the bond; and
1-13 (2) the name of the surety contact person, if any, and
1-14 the mailing address, physical address, and telephone number,
1-15 including the area code, where any notice of claim should be given.
1-16 SECTION 2. Section 2253.024(a), Government Code, is amended
1-17 to read as follows:
1-18 (a) A prime contractor, on the written request of a person
1-19 who provides public work labor or material and when required by
1-20 Subsection (c), shall provide to the person:
1-21 (1) the name and last known address of the
1-22 governmental entity with whom the prime contractor contracted for
1-23 the public work; [and]
2-1 (2) a copy of the payment and performance bonds for
2-2 the public work, including bonds furnished by or to the prime
2-3 contractor;
2-4 (3) the name, mailing address, physical address, and
2-5 telephone number, including the area code, of the surety issuing
2-6 the bond; and
2-7 (4) the name of the surety contact person, if any, and
2-8 the mailing address, physical address, and telephone number,
2-9 including the area code, where any notice of claim should be given.
2-10 SECTION 3. Section 2253.026, Government Code, is amended by
2-11 amending Subsection (a) and adding Subsection (d) to read as
2-12 follows:
2-13 (a) A governmental entity shall furnish the information
2-14 required by Subsection (d) [a certified copy of a payment bond and
2-15 the public work contract for which the bond was given] to any
2-16 person who applies for the information [copy] and who submits an
2-17 affidavit that the person:
2-18 (1) has supplied public work labor or material for
2-19 which the person has not been paid;
2-20 (2) has contracted for specially fabricated material
2-21 for which the person has not been paid; or
2-22 (3) is being sued on a payment bond.
2-23 (d) A governmental entity shall furnish the following
2-24 information to a person who makes a request under Subsection (a):
2-25 (1) a certified copy of a payment bond;
2-26 (2) the public work contract for which the bond was
3-1 given;
3-2 (3) the name, mailing address, physical address, and
3-3 telephone number, including the area code, of the surety issuing
3-4 the bond; and
3-5 (4) the name of the surety contact person, if any, and
3-6 the mailing address, physical address, and telephone number,
3-7 including the area code, where any notice of claim should be given.
3-8 SECTION 4. Section 53.161, Property Code, is amended by
3-9 adding Subsection (h) to read as follows:
3-10 (h) A bond required under this section must clearly and
3-11 prominently display on the bond or attachment to the bond:
3-12 (1) the name, mailing address, physical address,
3-13 and telephone number, including the area code, of the surety
3-14 issuing the bond; and
3-15 (2) the name of the surety contact person, if
3-16 any, and the mailing address, physical address, telephone number,
3-17 including the area code, where any notice of claim should be given.
3-18 SECTION 5. Section 53.172, Property Code, is amended to read
3-19 as follows:
3-20 Sec. 53.172. BOND REQUIREMENTS. The bond must:
3-21 (1) describe the property on which the liens are
3-22 claimed;
3-23 (2) refer to each lien claimed in a manner sufficient
3-24 to identify it;
3-25 (3) be in an amount that is double the amount of the
3-26 liens referred to in the bond unless the total amount claimed in
4-1 the liens exceeds $40,000, in which case the bond must be in an
4-2 amount that is the greater of 1 1/2 times the amount of the liens
4-3 or the sum of $40,000 and the amount of the liens;
4-4 (4) be payable to the parties claiming the liens;
4-5 (5) be executed by:
4-6 (A) the party filing the bond as principal; and
4-7 (B) a corporate surety authorized and admitted
4-8 to do business under the law in this state and licensed by this
4-9 state to execute the bond as surety, subject to Section 1, Chapter
4-10 87, Acts of the 56th Legislature, Regular Session, 1959 (Article
4-11 7.19-1, Vernon's Texas Insurance Code); [and]
4-12 (6) be conditioned substantially that the principal
4-13 and sureties will pay to the named obligees or to their assignees
4-14 the amount that the named obligees would have been entitled to
4-15 recover if their claims had been proved to be valid and enforceable
4-16 liens on the property; and
4-17 (7) clearly and prominently display on the bond or
4-18 attachment to the bond:
4-19 (A) the name, mailing address, physical address,
4-20 and telephone number, including the area code, of the surety
4-21 issuing the bond; and
4-22 (B) the name of the surety contact person, if
4-23 any, the mailing address, physical address, and telephone number,
4-24 including the area code, where any notice of claim should be given.
4-25 SECTION 6. Section 53.202, Property Code, is amended to read
4-26 as follows:
5-1 Sec. 53.202. BOND REQUIREMENTS. The bond must:
5-2 (1) be in a penal sum at least equal to the total of
5-3 the original contract amount;
5-4 (2) be in favor of the owner;
5-5 (3) have the written approval of the owner endorsed on
5-6 it;
5-7 (4) be executed by:
5-8 (A) the original contractor as principal; and
5-9 (B) a corporate surety authorized and admitted
5-10 to do business in this state and licensed by this state to execute
5-11 bonds as surety, subject to Section 1, Chapter 87, Acts of the 56th
5-12 Legislature, Regular Session, 1959 (Article 7.19-1, Vernon's Texas
5-13 Insurance Code); [and]
5-14 (5) be conditioned on prompt payment for all labor,
5-15 subcontracts, materials, specially fabricated materials, and normal
5-16 and usual extras not exceeding 15 percent of the contract price[;
5-17 and]
5-18 (6) clearly and prominently display on the bond or
5-19 attachment to the bond:
5-20 (A) the name, mailing address, physical address,
5-21 and telephone number, including the area code, of the surety
5-22 issuing the bond; and
5-23 (B) the name of the surety contact person, if
5-24 any, and the mailing address, physical address, and telephone
5-25 number, including the area code, where any notice of claim should
5-26 be given.
6-1 SECTION 7. Section 53.237, Property Code, is amended to read
6-2 as follows:
6-3 Sec. 53.237. BOND REQUIREMENTS. The bond must be:
6-4 (1) in an amount double the amount of the claims
6-5 filed;
6-6 (2) payable to the claimants;
6-7 (3) executed by:
6-8 (A) the party filing the bond as principal; and
6-9 (B) a corporate surety authorized, admitted to
6-10 do business, and licensed by that law of this state to execute the
6-11 bond as surety; [and]
6-12 (4) conditioned that:
6-13 (A) the principal and surety will pay to the
6-14 obligees named or to their assignees the amount of the claims or
6-15 the portions of the claims proved to be liens under this
6-16 subchapter; and
6-17 (B) the principal and surety will pay all court
6-18 costs adjudged against the principal in actions brought by a
6-19 claimant on the bond; and
6-20 (5) in a form that clearly and prominently displays on
6-21 that bond or attachment to the bond:
6-22 (A) the name, mailing address, physical address,
6-23 and telephone number, including the area code, of the surety
6-24 issuing the bond; and
6-25 (B) the name of the surety contact person, if
6-26 any, and the mailing address, physical address, and telephone
7-1 number, including the area code, where any notice of claim should
7-2 be given.
7-3 SECTION 8. This act takes effect September 1, 2001. The
7-4 changes in law made by this Act to Section 2253.021, Government
7-5 Code, and to Sections 53.161, 53.172, 53.202, and 53.237, Property
7-6 Code, apply only to a bond issued on or after the effective date of
7-7 this Act.