The bill, H.B. No. 643, amends Section 2253.021(a) of the Government Code regarding payment bonds required from public work contractors. It stipulates that a governmental entity must require a prime contractor to execute a performance bond for contracts exceeding $100,000. Additionally, it modifies the threshold for payment bonds: a payment bond is now required for contracts exceeding $100,000 unless the governmental entity is a municipality or a joint board created under Subchapter D, Chapter 22 of the Transportation Code, in which case the threshold is set at $50,000.

The changes introduced by this bill will only apply to public work contracts for which a governmental entity first advertises or requests bids on or after the effective date of September 1, 2025. Contracts solicited before this date will continue to be governed by the previous law. This legislation aims to clarify and adjust the requirements for payment bonds in public work contracts, ensuring that the thresholds are appropriately aligned with the nature of the governmental entity involved.

Statutes affected:
Introduced: Government Code 2253.021 (Government Code 2253)
House Committee Report: Government Code 2253.021 (Government Code 2253)