Texas 2021 - 87th Regular

Texas House Bill HB1477 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1477
	1	+	By: Bell of Kaufman, et al. H.B. No. 1477
	2	+	(Senate Sponsor - Nichols)
	3	+	(In the Senate - Received from the House May 5, 2021;
	4	+	May 6, 2021, read first time and referred to Committee on Business &
	5	+	Commerce; May 20, 2021, reported favorably by the following vote:
	6	+	Yeas 9, Nays 0; May 20, 2021, sent to printer.)
	7	+	Click here to see the committee vote
2	8
3	9
	10	+	A BILL TO BE ENTITLED
4	11		AN ACT
5	12		relating to performance and payment bonds for public work contracts
6	13		on public property leased to a nongovernmental entity.
7	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	15		SECTION 1. Sections 2253.001(3) and (4), Government Code,
9	16		are amended to read as follows:
10	17		(3) "Prime contractor" means a person, firm, or
11	18		corporation that makes a public work contract with:
12	19		(A) a governmental entity; or
13	20		(B) a person who leases any public property,
14	21		other than a person who leases property from a river authority
15	22		created pursuant to Section 59, Article XVI, Texas Constitution,
16	23		that owns electric generation capacity in excess of 1,000
17	24		megawatts.
18	25		(4) "Public work contract" means a contract for
19	26		constructing, altering, or repairing a public building or carrying
20	27		out or completing any public work, including work performed on
21	28		property owned by a governmental entity or on public property
22	29		leased by the governmental entity to a nongovernmental entity.
23	30		"Public work contract" does not include any contract entered into
24	31		by a nongovernmental entity that leases property from a river
25	32		authority created pursuant to Section 59, Article XVI, Texas
26	33		Constitution, that owns electric generation capacity in excess of
27	34		1,000 megawatts.
28	35		SECTION 2. Section 2253.021(a), Government Code, is amended
29	36		to read as follows:
30	37		(a) A governmental entity that makes a public work contract
31	38		with a prime contractor or authorizes a nongovernmental entity
32	39		leasing public property from the governmental entity to enter into
33	40		a public work contract with a prime contractor shall require the
34	41		contractor, before beginning the work, to execute to the
35	42		governmental entity:
36	43		(1) a performance bond if the contract is in excess of
37	44		$100,000; and
38	45		(2) a payment bond if:
39	46		(A) the contract is in excess of $25,000, and the
40	47		governmental entity is not a municipality or a joint board created
41	48		under Subchapter D, Chapter 22, Transportation Code; or
42	49		(B) the contract is in excess of $50,000, and the
43	50		governmental entity is a municipality or a joint board created
44	51		under Subchapter D, Chapter 22, Transportation Code.
45	52		SECTION 3. Sections 2253.024(a) and (b), Government Code,
46	53		are amended to read as follows:
47	54		(a) A prime contractor, on the written request of a person
48	55		who provides public work labor or material and when required by
49	56		Subsection (c), shall provide to the person:
50	57		(1) the name and last known address of the
51	58		governmental entity or nongovernmental leasehold tenant with whom
52	59		the prime contractor contracted for the public work;
53	60		(2) a copy of the payment and performance bonds for the
54	61		public work, including bonds furnished by or to the prime
55	62		contractor; and
56	63		(3) the name of the surety issuing the payment bond and
57	64		the performance bond and the toll-free telephone number maintained
58	65		by the Texas Department of Insurance under Subchapter B, Chapter
59	66		521, Insurance Code, for obtaining information concerning licensed
60	67		insurance companies.
61	68		(b) A subcontractor, on the written request of a
62	69		governmental entity, a nongovernmental leasehold tenant with whom
63	70		the prime contractor contracted, the prime contractor, a surety on
64	71		a bond that covers the public work contract, or a person providing
65	72		work under the subcontract and when required by Subsection (c),
66	73		shall provide to the person requesting the information:
67	74		(1) the name and last known address of each person from
68	75		whom the subcontractor purchased public work labor or material,
69	76		other than public work material from the subcontractor's inventory;
70	77		(2) the name and last known address of each person to
71	78		whom the subcontractor provided public work labor or material;
72	79		(3) a statement of whether the subcontractor furnished
73	80		a bond for the benefit of its subcontractors and materialmen;
74	81		(4) the name and last known address of the surety on
75	82		the bond the subcontractor furnished; and
76	83		(5) a copy of that bond.
77	84		SECTION 4. Section 2253.071(a), Government Code, is amended
78	85		to read as follows:
79	86		(a) The proceeds of a public work contract are not payable,
80	87		until all costs of completion of the contract work are paid by the
81	88		contractor or the contractor's surety, to a contractor who
82	89		furnishes a bond required by this chapter if:
83	90		(1) the contractor abandons performance of the
84	91		contract; or
85	92		(2) the contractor's right to proceed with performance
86	93		of the contract is lawfully terminated by the awarding governmental
87	94		entity or nongovernmental entity leasing public property from the
88	95		governmental entity because of the contractor's default.
89	96		SECTION 5. The changes in law made by this Act apply only to
90	97		a public work contract or construction project for which a
91	98		governmental entity or a nongovernmental entity leasing public
92	99		property from the governmental entity first advertises or otherwise
93	100		requests bids, proposals, offers, or qualifications, or makes a
94	101		similar solicitation, on or after the effective date of this Act.
95	102		SECTION 6. This Act takes effect September 1, 2021.
96		-	______________________________ ______________________________
97		-	President of the Senate Speaker of the House
98		-	I certify that H.B. No. 1477 was passed by the House on May 5,
99		-	2021, by the following vote: Yeas 146, Nays 0, 2 present, not
100		-	voting.
101		-	______________________________
102		-	Chief Clerk of the House
103		-	I certify that H.B. No. 1477 was passed by the Senate on May
104		-	25, 2021, by the following vote: Yeas 31, Nays 0.
105		-	______________________________
106		-	Secretary of the Senate
107		-	APPROVED: _____________________
108		-	Date
109		-	_____________________
110		-	Governor
	103	+	* * * * *