1-1     By:  Madla                                            S.B. No. 1268
 1-2           (In the Senate - Filed March 7, 2001; March 12, 2001, read
 1-3     first time and referred to Committee on Business and Commerce;
 1-4     April 19, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; April 19, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1268                   By:  Lucio
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to a surety bond obtained for a public project and
1-11     executed by a surety company.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subsection (b), Section 2166.258, Government
1-14     Code, is amended to read as follows:
1-15           (b)  In accordance with [Notwithstanding] Section 1, Chapter
1-16     87, Acts of the 56th Legislature, Regular Session, 1959 (Article
1-17     7.19-1, Vernon's Texas Insurance Code), the commission or other
1-18     agency may not require a contractor or subcontractor for any public
1-19     building or other construction contract to obtain a surety bond
1-20     from any specific insurance or surety company, agent, or broker.
1-21     To the extent consistent with that law, the commission or other
1-22     agency may require a contractor or subcontractor to meet part or
1-23     all of any other [the bonding or] insurance requirements for the
1-24     project under the negotiated arrangement [negotiated by the
1-25     commission or other agency].
1-26           SECTION 2.  Section 2253.021, Government Code, is amended by
1-27     adding Subsection (f) to read as follows:
1-28           (f)  A governmental entity may not require a contractor for
1-29     any public building or other construction contract to obtain a
1-30     surety bond from any specific insurance or surety company, agent,
1-31     or broker.
1-32           SECTION 3.  (a)  This Act takes effect September 1, 2001.
1-33           (b)  The change in law made by this Act applies only to a
1-34     contract for a construction project that is made on or after the
1-35     effective date of this Act.  A contract that is made before the
1-36     effective date of this Act is governed by the law in effect at the
1-37     time the contract is made, and that law is continued in effect for
1-38     that purpose.
1-39                                  * * * * *