BILL ANALYSIS

 

 

 

C.S.H.B. 2515

By: Smith, Todd

State Affairs

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

Current law requires a governmental entity, including a municipality, that enters into a public work contract in excess of $25,000 to require the contractor to execute to the entity a payment bond in the amount of the contract.

 

C.S.H.B. 2515 increases the payment bond threshold on public work contracts of municipalities and joint airport boards of certain municipalities from greater than $25,000 to greater than $50,000.  The bill increases from $25,000 to $50,000 the amount of a contract change order above which the governing body of a municipality must approve the change order.  

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

 

C.S.H.B. 2515 amends the Government Code to increase, from $25,000 to $50,000, the contract value threshold above which a municipality or a joint airport board is required to require a prime contractor to execute a payment bond before the contractor begins work under a public work contract.

 

C.S.H.B. 2515 amends the Local Government Code to authorize the governing body of a municipality to grant general authority to an administrative official of the municipality to approve change orders if a change order involves a decrease or increase of $50,000 or less, rather than $25,000 or less.

EFFECTIVE DATE

 

September 1, 2009.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 2515 differs from the original by making technical corrections referring to a joint airport board created under Subchapter D, Chapter 22, Transportation Code, rather than under Chapter 22 generally as in the original. The substitute differs from the original by making other nonsubstantive technical corrections.