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A BILL TO BE ENTITLED
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AN ACT
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relating to requirements based on dollar amounts regarding payment |
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bonds and change orders for certain public contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 2253.021, Government |
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Code, is amended to read as follows: |
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(a) A governmental entity that makes a public work contract |
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with a prime contractor shall require the contractor, before |
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beginning the work, to execute to the governmental entity: |
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(1) a performance bond if the contract is in excess of |
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$100,000; and |
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(2) a payment bond if: |
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(A) the contract is in excess of $25,000 and the |
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governmental entity is not a municipality or a joint board created |
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under Chapter 22, Transportation Code; or |
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(B) the contract is in excess of $50,000 and the |
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governmental entity is a municipality or a joint board created |
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under Chapter 22, Transportation Code. |
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SECTION 2. Subsection (c), Section 252.048, Local |
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Government Code, is amended to read as follows: |
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(c) If a change order involves a decrease or an increase of |
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$50,000[$25,000] or less, the governing body may grant general |
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authority to an administrative official of the municipality to |
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approve the change orders. |
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SECTION 3. The change in law made by this Act to Subsection |
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(a), Section 2253.021, Government Code, applies only to a contract |
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entered into on or after the effective date of this Act, and the |
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change in law made by this Act to Subsection (c), Section 252.048, |
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Local Government Code, applies only to a change order approved on or |
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after the effective date of this Act. A contract entered into or |
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change order approved before the effective date of this Act is |
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governed by the law in effect when the contract was entered into or |
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the change order was approved, and the former law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2009. |