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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring school districts ensure that project managers |
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overseeing construction projects are bonded. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 44.031, of the Education Code is amended |
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to add Subsection (n), (o), and (p) to read as follows: |
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(n) Before entering into a contract with a project manager |
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to oversee the construction of a building or other facility, the |
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school district shall require that the project manager be bonded, |
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as specified in Chapter 2252, Government Code. The bonding |
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requirement shall apply to all school district construction |
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projects exceeding $1,000,000. |
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(o) Before entering into a contract with a project manager |
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to oversee the construction of a building or other facility, the |
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school district is required to verify the project manager is |
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licensed or registered with the Texas Board of Professional |
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Engineers and Land Surveyors under Chapter 1001 of the Occupations |
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Code. |
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(p) Before entering into a contract with a project manager |
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to oversee the construction of a building or other facility, the |
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school district shall require that the project manager provide |
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evidence of professional liability insurance or errors and |
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omissions coverage, as described in Section 2269.208, Government |
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Code. The insurance requirement shall apply to all school district |
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construction projects exceeding $1,000,000. |
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SECTION 2. Section 2253.021 of the Government Code is |
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amended to add a new subsection (i) to read as follows: |
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(i) A school district that enters into a contract with a |
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project manager for the oversight of a construction project shall |
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require the project manager to provide a performance bond as |
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outlined in this section. The bond must be for an amount equal to at |
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least 10% of the total contract value. The bond must ensure the |
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faithful performance of the project manager's duties, compliance |
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with applicable laws, and payment to subcontractors and suppliers |
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as required by law. |
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SECTION 3: Chapter 2201 of the Insurance Code is amended to |
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add Subchapter F to read as follows: |
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SUBCHAPTER F. BONDING REQUIREMENTS FOR SCHOOL DISTRICT PROJECT |
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MANAGERS. |
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Sec. 2201.501 BONDING REQUIREMENT FOR SCHOOL DISTRICT |
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CONSTRUCTION PROJECT MANAGERS. (a) A project manager for a school |
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district construction project, as defined by Section 44.031(g) of |
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Education Code, must be bonded in accordance with Chapter 2253 of |
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the Government Code. |
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(b) The bond must be issued by a surety company authorized |
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to conduct business in the State of Texas and in an amount not less |
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than 10% of the total contract value of the construction project. |
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Sec. 2201.502. CLAIMS AGAINST BONDS. (a) A claim against |
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the bond may be made if the project manager fails to perform duties |
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in accordance with the contract, including but limited to failure |
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to meet deadlines, budget overruns, or nonpayment to |
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subcontractors or suppliers. |
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SECTION 4. This Act takes effect September 1, 2025. |