SRC-JEC H.B. 1171 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1171
78R3535 ATP-DBy: Madden (Ratliff)
State Affairs
5/9/2003
Engrossed


DIGEST AND PURPOSE 

Current law requires governmental entities to obtain performance and
payment bonds from contractors on certain public work contracts.  If a
governmental entity does not obtain a payment bond, the governmental
entity is liable as if it were the surety and the bond beneficiary is
entitled to a lien on the money due to the contractor; however, the
statute does not expressly require that the beneficiary give the
governmental entity notice of its claim.  H.B. 1171 requires a bond
beneficiary seeking to recover against a governmental entity to notify the
governmental entity in the same manner that the bond beneficiary is
required to notify a surety. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2253.027, Government Code, as follows:

(a)  Created from existing text.

(b)  Provides that, to recover in a suit under Subsection (a), the only
notice a payment bond beneficiary is required to provide to the
governmental entity is a notice provided in the same manner as described
by Subchapter C.  Requires that the notice be provided as if the
governmental entity were a surety. 

SECTION 2.   (a)  Effective date:  September 1, 2003.

(b)  Makes application of this Act prospective.