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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to requiring school districts ensure that project managers |
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| 7 | 9 | | overseeing construction projects are bonded. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Section 44.031, of the Education Code is amended |
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| 10 | 12 | | to add Subsection (n), (o), and (p) to read as follows: |
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| 11 | 13 | | (n) Before entering into a contract with a project manager |
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| 12 | 14 | | to oversee the construction of a building or other facility, the |
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| 13 | 15 | | school district shall require that the project manager be bonded, |
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| 14 | 16 | | as specified in Chapter 2252, Government Code. The bonding |
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| 15 | 17 | | requirement shall apply to all school district construction |
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| 16 | 18 | | projects exceeding $1,000,000. |
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| 17 | 19 | | (o) Before entering into a contract with a project manager |
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| 18 | 20 | | to oversee the construction of a building or other facility, the |
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| 19 | 21 | | school district is required to verify the project manager is |
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| 20 | 22 | | licensed or registered with the Texas Board of Professional |
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| 21 | 23 | | Engineers and Land Surveyors under Chapter 1001 of the Occupations |
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| 22 | 24 | | Code. |
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| 23 | 25 | | (p) Before entering into a contract with a project manager |
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| 24 | 26 | | to oversee the construction of a building or other facility, the |
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| 25 | 27 | | school district shall require that the project manager provide |
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| 26 | 28 | | evidence of professional liability insurance or errors and |
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| 27 | 29 | | omissions coverage, as described in Section 2269.208, Government |
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| 28 | 30 | | Code. The insurance requirement shall apply to all school district |
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| 29 | 31 | | construction projects exceeding $1,000,000. |
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| 30 | 32 | | SECTION 2. Section 2253.021 of the Government Code is |
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| 31 | 33 | | amended to add a new subsection (i) to read as follows: |
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| 32 | 34 | | (i) A school district that enters into a contract with a |
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| 33 | 35 | | project manager for the oversight of a construction project shall |
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| 34 | 36 | | require the project manager to provide a performance bond as |
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| 35 | 37 | | outlined in this section. The bond must be for an amount equal to at |
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| 36 | 38 | | least 10% of the total contract value. The bond must ensure the |
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| 37 | 39 | | faithful performance of the project manager's duties, compliance |
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| 38 | 40 | | with applicable laws, and payment to subcontractors and suppliers |
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| 39 | 41 | | as required by law. |
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| 40 | 42 | | SECTION 3: Chapter 2201 of the Insurance Code is amended to |
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| 41 | 43 | | add Subchapter F to read as follows: |
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| 42 | 44 | | SUBCHAPTER F. BONDING REQUIREMENTS FOR SCHOOL DISTRICT PROJECT |
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| 43 | 45 | | MANAGERS. |
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| 44 | 46 | | Sec. 2201.501 BONDING REQUIREMENT FOR SCHOOL DISTRICT |
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| 45 | 47 | | CONSTRUCTION PROJECT MANAGERS. (a) A project manager for a school |
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| 46 | 48 | | district construction project, as defined by Section 44.031(g) of |
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| 47 | 49 | | Education Code, must be bonded in accordance with Chapter 2253 of |
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| 48 | 50 | | the Government Code. |
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| 49 | 51 | | (b) The bond must be issued by a surety company authorized |
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| 50 | 52 | | to conduct business in the State of Texas and in an amount not less |
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| 51 | 53 | | than 10% of the total contract value of the construction project. |
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| 52 | 54 | | Sec. 2201.502. CLAIMS AGAINST BONDS. (a) A claim against |
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| 53 | 55 | | the bond may be made if the project manager fails to perform duties |
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| 54 | 56 | | in accordance with the contract, including but limited to failure |
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| 55 | 57 | | to meet deadlines, budget overruns, or nonpayment to |
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| 56 | 58 | | subcontractors or suppliers. |
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| 57 | 59 | | SECTION 4. This Act takes effect September 1, 2025. |
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