BILL ANALYSIS

H.B. 2886

By: Bucy

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been suggested that increasing the maximum value of a public work contract between a prime contractor and a governmental entity that can be made without the contractor executing a payment bond would increase the state's bidding pool, lower project costs and the administrative burden on the state, and increase the opportunities for smaller and historically underutilized businesses to compete for the contract. H.B. 2886 seeks to increase that maximum value to $100,000.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

H.B. 2886 amends the Government Code to increase from $25,000 to $100,000 the maximum value of a public work contract between a prime contractor and a governmental entity that is not a municipality or a joint board created for the operation of county and municipal airports that can be made without the contractor executing a payment bond.

EFFECTIVE DATE

September 1, 2019.