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H.B. No. 1171
AN ACT
relating to the notice required to be given to a governmental entity
to recover in a suit on a payment bond.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2253.027, Government Code, is amended to
read as follows:
Sec. 2253.027. LIABILITY OF GOVERNMENTAL ENTITY. (a) If a
governmental entity fails to obtain from a prime contractor a
payment bond as required by Section 2253.021:
(1) the entity is subject to the same liability that a
surety would have if the surety had issued a payment bond and if the
entity had obtained the bond; and
(2) a payment bond beneficiary is entitled to a lien on
money due to the prime contractor in the same manner and to the same
extent as if the public work contract were subject to Subchapter J,
Chapter 53, Property Code.
(b) 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. The notice must be provided as if the
governmental entity were a surety.
SECTION 2. (a) This Act takes effect September 1, 2003.
(b) The change in law made by this Act applies only to a suit
filed under Section 2253.027, Government Code, as amended by this
Act, on or after September 1, 2003. A suit filed before September
1, 2003, is covered by the law in effect when the suit was filed, and
the former law is continued in effect for that purpose.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1171 was passed by the House on April
8, 2003, by a non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1171 was passed by the Senate on May
27, 2003, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor