Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
Summary of Legislation This legislation specifies performance and payment bond requirements for certain development agreements through Texas Department of Transportation (TxDOT), or another authority authorized to issue bonds for projects. This bill requires that the amount of payment security required for the job must not be less than the amount of the performance security and that the bonds must remain separate. If an authority authorizes payment security to be supplied by means other than bonds issued by a corporate surety, then the contract must include notice specifying how a claimant may submit a claim and how the claim process will be administered.
Notes: This is a bill to clean up technical issues with existing law. Due to poor wording in the existing law, TxDOT and other authorities financing through private entities might not have secured enough funds to secure the completion of a project. This bill strengthens contract agreements and transparency. Additionally it ensures that taxpayer funded projects actually get completed, and contractors get paid for work that they do.