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A BILL TO BE ENTITLED
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AN ACT
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relating to performance and payment bonds for public work contracts |
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on public property leased to a nongovernmental entity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2253.001(3) and (4), Government Code, |
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are amended to read as follows: |
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(3) "Prime contractor" means a person, firm, or |
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corporation that makes a public work contract with: |
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(A) a governmental entity; or |
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(B) a person who leases any public property, |
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other than a person who leases property from a river authority |
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created pursuant to Section 59, Article XVI, Texas Constitution, |
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that owns electric generation capacity in excess of 1,000 |
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megawatts. |
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(4) "Public work contract" means a contract for |
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constructing, altering, or repairing a public building or carrying |
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out or completing any public work, including work performed on |
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property owned by a governmental entity or on public property |
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leased by the governmental entity to a nongovernmental entity. |
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"Public work contract" does not include any contract entered into |
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by a nongovernmental entity that leases property from a river |
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authority created pursuant to Section 59, Article XVI, Texas |
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Constitution, that owns electric generation capacity in excess of |
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1,000 megawatts. |
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SECTION 2. Section 2253.021(a), Government Code, is amended |
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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 or authorizes a nongovernmental entity |
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leasing public property from the governmental entity to enter into |
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a public work contract with a prime contractor shall require the |
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contractor, before beginning the work, to execute to the |
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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 Subchapter D, 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 Subchapter D, Chapter 22, Transportation Code. |
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SECTION 3. Sections 2253.024(a) and (b), Government Code, |
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are amended to read as follows: |
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(a) A prime contractor, on the written request of a person |
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who provides public work labor or material and when required by |
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Subsection (c), shall provide to the person: |
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(1) the name and last known address of the |
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governmental entity or nongovernmental leasehold tenant with whom |
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the prime contractor contracted for the public work; |
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(2) a copy of the payment and performance bonds for the |
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public work, including bonds furnished by or to the prime |
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contractor; and |
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(3) the name of the surety issuing the payment bond and |
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the performance bond and the toll-free telephone number maintained |
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by the Texas Department of Insurance under Subchapter B, Chapter |
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521, Insurance Code, for obtaining information concerning licensed |
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insurance companies. |
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(b) A subcontractor, on the written request of a |
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governmental entity, a nongovernmental leasehold tenant with whom |
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the prime contractor contracted, the prime contractor, a surety on |
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a bond that covers the public work contract, or a person providing |
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work under the subcontract and when required by Subsection (c), |
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shall provide to the person requesting the information: |
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(1) the name and last known address of each person from |
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whom the subcontractor purchased public work labor or material, |
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other than public work material from the subcontractor's inventory; |
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(2) the name and last known address of each person to |
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whom the subcontractor provided public work labor or material; |
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(3) a statement of whether the subcontractor furnished |
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a bond for the benefit of its subcontractors and materialmen; |
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(4) the name and last known address of the surety on |
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the bond the subcontractor furnished; and |
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(5) a copy of that bond. |
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SECTION 4. Section 2253.071(a), Government Code, is amended |
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to read as follows: |
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(a) The proceeds of a public work contract are not payable, |
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until all costs of completion of the contract work are paid by the |
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contractor or the contractor's surety, to a contractor who |
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furnishes a bond required by this chapter if: |
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(1) the contractor abandons performance of the |
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contract; or |
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(2) the contractor's right to proceed with performance |
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of the contract is lawfully terminated by the awarding governmental |
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entity or nongovernmental entity leasing public property from the |
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governmental entity because of the contractor's default. |
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SECTION 5. The changes in law made by this Act apply only to |
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a public work contract or construction project for which a |
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governmental entity or a nongovernmental entity leasing public |
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property from the governmental entity first advertises or otherwise |
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requests bids, proposals, offers, or qualifications, or makes a |
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similar solicitation, on or after the effective date of this Act. |
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SECTION 6. This Act takes effect September 1, 2021. |
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