Relating to the requirement for payment bonds from certain public work contractors.
relating to the requirement for payment bonds from certain public
work contractors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 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 $100,000
[$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 2. (a) The changes in law made by this Act apply
only to a public work contract for which a 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.
(b) A public work contract for which a governmental entity
first advertises or otherwise requests bids, proposals, offers, or
qualifications, or makes a similar solicitation, before the
effective date of this Act is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2025.
