Bill Text: TX SB1014 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to performance and payment bonds for public work contracts on public property leased to a nongovernmental entity.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-18 - Referred to Business & Commerce [SB1014 Detail]
Download: Texas-2021-SB1014-Introduced.html
| 87R5600 YDB-F | ||
| By: Buckingham | S.B. No. 1014 | |
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| relating to performance and payment bonds for public work contracts | ||
| on public property leased to a nongovernmental entity. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Sections 2253.001(3) and (4), Government Code, | ||
| are amended to read as follows: | ||
| (3) "Prime contractor" means a person, firm, or | ||
| corporation that makes a public work contract with: | ||
| (A) a governmental entity; or | ||
| (B) a person who leases any public property. | ||
| (4) "Public work contract" means a contract for | ||
| constructing, altering, or repairing a public building or carrying | ||
| out or completing any public work, including work performed on | ||
| property owned by a governmental entity or on public property | ||
| leased by the governmental entity to a nongovernmental entity. | ||
| SECTION 2. Section 2253.021(a), Government Code, is amended | ||
| to read as follows: | ||
| (a) A governmental entity that makes a public work contract | ||
| with a prime contractor or authorizes a nongovernmental entity | ||
| leasing public property from the governmental entity to contract | ||
| with a prime contractor shall require the contractor, before | ||
| beginning the work, to execute to the governmental entity: | ||
| (1) a performance bond if the contract is in excess of | ||
| $100,000; and | ||
| (2) a payment bond if: | ||
| (A) the contract is in excess of $25,000, and the | ||
| governmental entity is not a municipality or a joint board created | ||
| under Subchapter D, Chapter 22, Transportation Code; or | ||
| (B) the contract is in excess of $50,000, and the | ||
| governmental entity is a municipality or a joint board created | ||
| under Subchapter D, Chapter 22, Transportation Code. | ||
| SECTION 3. Sections 2253.024(a) and (b), Government Code, | ||
| are amended to read as follows: | ||
| (a) A prime contractor, on the written request of a person | ||
| who provides public work labor or material and when required by | ||
| Subsection (c), shall provide to the person: | ||
| (1) the name and last known address of the | ||
| governmental entity or nongovernmental leasehold tenant with whom | ||
| the prime contractor contracted for the public work; | ||
| (2) a copy of the payment and performance bonds for the | ||
| public work, including bonds furnished by or to the prime | ||
| contractor; and | ||
| (3) the name of the surety issuing the payment bond and | ||
| the performance bond and the toll-free telephone number maintained | ||
| by the Texas Department of Insurance under Subchapter B, Chapter | ||
| 521, Insurance Code, for obtaining information concerning licensed | ||
| insurance companies. | ||
| (b) A subcontractor, on the written request of a | ||
| governmental entity, a nongovernmental leasehold tenant with whom | ||
| the prime contractor contracted, the prime contractor, a surety on | ||
| a bond that covers the public work contract, or a person providing | ||
| work under the subcontract and when required by Subsection (c), | ||
| shall provide to the person requesting the information: | ||
| (1) the name and last known address of each person from | ||
| whom the subcontractor purchased public work labor or material, | ||
| other than public work material from the subcontractor's inventory; | ||
| (2) the name and last known address of each person to | ||
| whom the subcontractor provided public work labor or material; | ||
| (3) a statement of whether the subcontractor furnished | ||
| a bond for the benefit of its subcontractors and materialmen; | ||
| (4) the name and last known address of the surety on | ||
| the bond the subcontractor furnished; and | ||
| (5) a copy of that bond. | ||
| SECTION 4. Section 2253.071(a), Government Code, is amended | ||
| to read as follows: | ||
| (a) The proceeds of a public work contract are not payable, | ||
| until all costs of completion of the contract work are paid by the | ||
| contractor or the contractor's surety, to a contractor who | ||
| furnishes a bond required by this chapter if: | ||
| (1) the contractor abandons performance of the | ||
| contract; or | ||
| (2) the contractor's right to proceed with performance | ||
| of the contract is lawfully terminated by the awarding governmental | ||
| entity or nongovernmental entity leasing public property from the | ||
| governmental entity because of the contractor's default. | ||
| SECTION 5. The changes in law made by this Act apply only to | ||
| a public work contract or construction project for which a | ||
| governmental entity or a nongovernmental entity leasing public | ||
| property from the governmental entity first advertises or otherwise | ||
| requests bids, proposals, offers, or qualifications, or makes a | ||
| similar solicitation, on or after the effective date of this Act. | ||
| SECTION 6. This Act takes effect September 1, 2021. | ||
