| 1 | 1 | | 88R4262 LRM-F |
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| 2 | 2 | | By: Gervin-Hawkins H.B. No. 857 |
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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 the requirement for payment bonds from certain public |
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| 8 | 8 | | work contractors. |
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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. Section 2253.021(a), Government Code, is amended |
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| 11 | 11 | | 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 $100,000 |
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| 19 | 19 | | [$25,000], and the governmental entity is not a municipality or a |
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| 20 | 20 | | joint board created under Subchapter D, Chapter 22, Transportation |
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| 21 | 21 | | Code; or |
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| 22 | 22 | | (B) the contract is in excess of $50,000, and the |
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| 23 | 23 | | governmental entity is a municipality or a joint board created |
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| 24 | 24 | | under Subchapter D, Chapter 22, Transportation Code. |
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| 25 | 25 | | SECTION 2. (a) The changes in law made by this Act apply |
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| 26 | 26 | | only to a public work contract for which a governmental entity first |
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| 27 | 27 | | advertises or otherwise requests bids, proposals, offers, or |
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| 28 | 28 | | qualifications, or makes a similar solicitation, on or after the |
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| 29 | 29 | | effective date of this Act. |
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| 30 | 30 | | (b) A public work contract for which a governmental entity |
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| 31 | 31 | | first advertises or otherwise requests bids, proposals, offers, or |
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| 32 | 32 | | qualifications, or makes a similar solicitation, before the |
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| 33 | 33 | | effective date of this Act is governed by the law as it existed |
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| 34 | 34 | | immediately before the effective date of this Act, and that law is |
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| 35 | 35 | | continued in effect for that purpose. |
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| 36 | 36 | | SECTION 3. This Act takes effect September 1, 2023. |
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