1-1 AN ACT
1-2 relating to a surety bond obtained for a public project and
1-3 executed by a surety company and to related surety technical
1-4 assistance services for certain entities.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 2166.258, Government Code, is amended by
1-7 amending Subsection (b) and adding Subsection (c) to read as
1-8 follows:
1-9 (b) In accordance with [Notwithstanding] Section 1, Chapter
1-10 87, Acts of the 56th Legislature, Regular Session, 1959 (Article
1-11 7.19-1, Vernon's Texas Insurance Code), the commission or other
1-12 agency may not require a contractor or subcontractor for any public
1-13 building or other construction contract to obtain a surety bond
1-14 from any specific insurance or surety company, agent, or broker.
1-15 To the extent consistent with that law, the commission or other
1-16 agency may require a contractor or subcontractor to meet part or
1-17 all of the bonding or insurance requirements for the project under
1-18 the negotiated arrangement [negotiated by the commission or other
1-19 agency].
1-20 (c) For the purposes of this section, the General Services
1-21 Commission shall establish a program to provide surety technical
1-22 assistance services for the benefit of small businesses and
1-23 historically underutilized businesses. The commission may contract
1-24 with insurance companies, surety companies, agents, or brokers to
1-25 implement this program.
2-1 SECTION 2. Section 2253.021, Government Code, is amended by
2-2 adding Subsection (f) to read as follows:
2-3 (f) A governmental entity may not require a contractor for
2-4 any public building or other construction contract to obtain a
2-5 surety bond from any specific insurance or surety company, agent,
2-6 or broker.
2-7 SECTION 3. (a) This Act takes effect September 1, 2001.
2-8 (b) The change in law made by this Act applies only to a
2-9 contract for a construction project that is made on or after the
2-10 effective date of this Act. A contract that is made before the
2-11 effective date of this Act is governed by the law in effect at the
2-12 time the contract is made, and that law is continued in effect for
2-13 that purpose.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1268 passed the Senate on
April 26, 2001, by a viva-voce vote; and that the Senate concurred
in House amendments on May 24, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1268 passed the House, with
amendments, on May 18, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor