HB643 - Relating to the requirement for payment bonds from certain public work contractors.

  89R3634 LRM-F     By: Gervin-Hawkins H.B. No. 643       A BILL TO BE ENTITLED   AN ACT   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.