2009S0560-1 03/04/09
By: Harris S.B. No. 1639
A BILL TO BE ENTITLED
AN ACT
relating to requirements based on dollar amounts regarding payment
bonds and change orders for certain public contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (a), Section 2253.021, Government
Code, is amended to read as follows:
(a) A governmental entity that makes a public work contract
with a prime contractor shall require the contractor, before
beginning the work, to execute to the governmental entity:
(1) a performance bond if the contract is in excess of
$100,000; and
(2) a payment bond if:
(A) the contract is in excess of $25,000 and the
governmental entity is not a municipality or a joint board created
under Chapter 22, Transportation Code; or
(B) the contract is in excess of $50,000 and the
governmental entity is a municipality or a joint board created
under Chapter 22, Transportation Code.
SECTION 2. Subsection (c), Section 252.048, Local
Government Code, is amended to read as follows:
(c) If a change order involves a decrease or an increase of
$50,000[$25,000] or less, the governing body may grant general
authority to an administrative official of the municipality to
approve the change orders.
SECTION 3. The change in law made by this Act to Subsection
(a), Section 2253.021, Government Code, applies only to a contract
entered into on or after the effective date of this Act, and the
change in law made by this Act to Subsection (c), Section 252.048,
Local Government Code, applies only to a change order approved on or
after the effective date of this Act. A contract entered into or
change order approved before the effective date of this Act is
governed by the law in effect when the contract was entered into or
the change order was approved, and the former law is continued in
effect for that purpose.
SECTION 4. This Act takes effect September 1, 2009.