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: contractors must provide a payment bond for contracts over $100,000 unless the governmental entity is a municipality or a joint board created under Subchapter D, Chapter 22 of the Transportation Code. In such cases, a payment bond is required for contracts exceeding $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 or proposals on or after the effective date of the Act, which is set for September 1, 2025. Contracts solicited before this date will continue to be governed by the previous law.

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