| 1 | 1 | | 2009S0560-1 03/04/09 |
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| 2 | 2 | | By: Harris S.B. No. 1639 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to requirements based on dollar amounts regarding payment |
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| 8 | 8 | | bonds and change orders for certain public contracts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subsection (a), Section 2253.021, Government |
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| 11 | 11 | | Code, is amended to read as follows: |
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| 12 | 12 | | (a) A governmental entity that makes a public work contract |
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| 13 | 13 | | with a prime contractor shall require the contractor, before |
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| 14 | 14 | | beginning the work, to execute to the governmental entity: |
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| 15 | 15 | | (1) a performance bond if the contract is in excess of |
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| 16 | 16 | | $100,000; and |
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| 17 | 17 | | (2) a payment bond if: |
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| 18 | 18 | | (A) the contract is in excess of $25,000 and the |
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| 19 | 19 | | governmental entity is not a municipality or a joint board created |
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| 20 | 20 | | under Chapter 22, Transportation Code; or |
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| 21 | 21 | | (B) the contract is in excess of $50,000 and the |
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| 22 | 22 | | governmental entity is a municipality or a joint board created |
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| 23 | 23 | | under Chapter 22, Transportation Code. |
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| 24 | 24 | | SECTION 2. Subsection (c), Section 252.048, Local |
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| 25 | 25 | | Government Code, is amended to read as follows: |
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| 26 | 26 | | (c) If a change order involves a decrease or an increase of |
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| 27 | 27 | | $50,000[$25,000] or less, the governing body may grant general |
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| 28 | 28 | | authority to an administrative official of the municipality to |
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| 29 | 29 | | approve the change orders. |
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| 30 | 30 | | SECTION 3. The change in law made by this Act to Subsection |
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| 31 | 31 | | (a), Section 2253.021, Government Code, applies only to a contract |
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| 32 | 32 | | entered into on or after the effective date of this Act, and the |
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| 33 | 33 | | change in law made by this Act to Subsection (c), Section 252.048, |
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| 34 | 34 | | Local Government Code, applies only to a change order approved on or |
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| 35 | 35 | | after the effective date of this Act. A contract entered into or |
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| 36 | 36 | | change order approved before the effective date of this Act is |
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| 37 | 37 | | governed by the law in effect when the contract was entered into or |
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| 38 | 38 | | the change order was approved, and the former law is continued in |
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| 39 | 39 | | effect for that purpose. |
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| 40 | 40 | | SECTION 4. This Act takes effect September 1, 2009. |
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