Relating to performance and payment security for certain comprehensive development agreements.
Impact
The passing of HB2032 would modify existing state laws pertaining to public-private partnerships. By making provisions for alternative security measures, it could potentially increase participation from more diverse contractors who may have previously been deterred by stringent bonding requirements. This amendment not only protects the interests of the state and beneficiaries involved in construction but also enhances the overall efficiency of projects funded through such partnerships.
Summary
House Bill 2032 is designed to refine the performance and payment security requirements within certain comprehensive development agreements in Texas. This bill explicitly stipulates that the Department of Transportation must demand a performance and payment bond from private entities engaging in comprehensive projects, ensuring that there is sufficient financial security to cover the costs of constructions or maintenance. Furthermore, it allows for alternative forms of security, including cashier's checks, U.S. bonds, or irrevocable letters of credit, which could streamline the process for those entities that may struggle to provide conventional bonds.
Contention
While the intent of the bill is generally aimed at improving project outcomes through enhanced financial assurances, there may be concerns regarding the robustness of the alternative security forms. Critics may argue that by allowing non-traditional forms of security, accountability could be diminished, especially in large scale projects. Conversely, supporters might contend that these options create greater flexibility and encourage competition among contractors, ultimately benefiting state infrastructure initiatives.
Relating to the procurement by local governments of energy savings performance contracts for certain conservation measures; creating criminal offenses; authorizing a fee.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to measures for ensuring public school safety, including the development and implementation of purchases relating to and funding for public school safety and security requirements and the provision of safety-related resources.
Relating to measures for ensuring safety and security in public schools, including measures related to the health and safety of public school students and active shooter training for certain peace officers.
Relating to amendments to the Uniform Commercial Code, including amendments concerning certain intangible assets and the perfection of security interests in those assets.