Texas 2021 - 87th Regular

Texas Senate Bill SB1014 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R5600 YDB-F
2	2	By: Buckingham S.B. No. 1014
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to performance and payment bonds for public work contracts
8	8	on public property leased to a nongovernmental entity.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 2253.001(3) and (4), Government Code,
11	11	are amended to read as follows:
12	12	(3) "Prime contractor" means a person, firm, or
13	13	corporation that makes a public work contract with:
14	14	(A) a governmental entity; or
15	15	(B) a person who leases any public property.
16	16	(4) "Public work contract" means a contract for
17	17	constructing, altering, or repairing a public building or carrying
18	18	out or completing any public work, including work performed on
19	19	property owned by a governmental entity or on public property
20	20	leased by the governmental entity to a nongovernmental entity.
21	21	SECTION 2. Section 2253.021(a), Government Code, is amended
22	22	to read as follows:
23	23	(a) A governmental entity that makes a public work contract
24	24	with a prime contractor or authorizes a nongovernmental entity
25	25	leasing public property from the governmental entity to contract
26	26	with a prime contractor shall require the contractor, before
27	27	beginning the work, to execute to the governmental entity:
28	28	(1) a performance bond if the contract is in excess of
29	29	$100,000; and
30	30	(2) a payment bond if:
31	31	(A) the contract is in excess of $25,000, and the
32	32	governmental entity is not a municipality or a joint board created
33	33	under Subchapter D, Chapter 22, Transportation Code; or
34	34	(B) the contract is in excess of $50,000, and the
35	35	governmental entity is a municipality or a joint board created
36	36	under Subchapter D, Chapter 22, Transportation Code.
37	37	SECTION 3. Sections 2253.024(a) and (b), Government Code,
38	38	are amended to read as follows:
39	39	(a) A prime contractor, on the written request of a person
40	40	who provides public work labor or material and when required by
41	41	Subsection (c), shall provide to the person:
42	42	(1) the name and last known address of the
43	43	governmental entity or nongovernmental leasehold tenant with whom
44	44	the prime contractor contracted for the public work;
45	45	(2) a copy of the payment and performance bonds for the
46	46	public work, including bonds furnished by or to the prime
47	47	contractor; and
48	48	(3) the name of the surety issuing the payment bond and
49	49	the performance bond and the toll-free telephone number maintained
50	50	by the Texas Department of Insurance under Subchapter B, Chapter
51	51	521, Insurance Code, for obtaining information concerning licensed
52	52	insurance companies.
53	53	(b) A subcontractor, on the written request of a
54	54	governmental entity, a nongovernmental leasehold tenant with whom
55	55	the prime contractor contracted, the prime contractor, a surety on
56	56	a bond that covers the public work contract, or a person providing
57	57	work under the subcontract and when required by Subsection (c),
58	58	shall provide to the person requesting the information:
59	59	(1) the name and last known address of each person from
60	60	whom the subcontractor purchased public work labor or material,
61	61	other than public work material from the subcontractor's inventory;
62	62	(2) the name and last known address of each person to
63	63	whom the subcontractor provided public work labor or material;
64	64	(3) a statement of whether the subcontractor furnished
65	65	a bond for the benefit of its subcontractors and materialmen;
66	66	(4) the name and last known address of the surety on
67	67	the bond the subcontractor furnished; and
68	68	(5) a copy of that bond.
69	69	SECTION 4. Section 2253.071(a), Government Code, is amended
70	70	to read as follows:
71	71	(a) The proceeds of a public work contract are not payable,
72	72	until all costs of completion of the contract work are paid by the
73	73	contractor or the contractor's surety, to a contractor who
74	74	furnishes a bond required by this chapter if:
75	75	(1) the contractor abandons performance of the
76	76	contract; or
77	77	(2) the contractor's right to proceed with performance
78	78	of the contract is lawfully terminated by the awarding governmental
79	79	entity or nongovernmental entity leasing public property from the
80	80	governmental entity because of the contractor's default.
81	81	SECTION 5. The changes in law made by this Act apply only to
82	82	a public work contract or construction project for which a
83	83	governmental entity or a nongovernmental entity leasing public
84	84	property from the governmental entity first advertises or otherwise
85	85	requests bids, proposals, offers, or qualifications, or makes a
86	86	similar solicitation, on or after the effective date of this Act.
87	87	SECTION 6. This Act takes effect September 1, 2021.