Texas House Bill HB2032

Texas 2011 - 82nd Regular

• Out of House Committee: 4/26/11
• Voted on by House: 5/15/11
• Report Pass: 4/20/11
• Engrossed: 5/15/11
• Refer: 5/16/11

Caption

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.