Bill
SB 1980
85(R) - 2017
Senate Business & Commerce
Senate Business & Commerce
Bonds
Local Government
Purchasing
Vote Recommendation
Neutral
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Neutral
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Neutral
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Neutral
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Neutral
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Neutral
Author(s)
Charles Schwertner
Bill Caption
Relating to performance bonds for certain public improvements in certain municipalities.
Fiscal Notes
From the LBB: no fiscal implication to the state is anticipated.
Bill Analysis
Under current law, a developer must execute a performance bond for the construction of the improvements in a municipal developer contract to ensure the completion of the project. SB 1980 would require the amount of the bond to be for the contract price for the improvements. The municipality and developer may agree that, instead of a performance bond, the developer may submit to the municipality an irrevocable letter of credit in the amount required for the bond.
Vote Recommendation Notes
This is an administrative bill that has no connection to our liberty principles. We remain neutral.
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