H.B. No. 5201 mandates that school districts in Texas require project managers overseeing construction projects to be bonded, licensed, and insured. Specifically, the bill adds new subsections to Section 44.031 of the Education Code, stipulating that before entering into a contract with a project manager for projects exceeding $1,000,000, school districts must ensure the project manager is bonded as per Chapter 2252 of the Government Code, licensed with the Texas Board of Professional Engineers and Land Surveyors, and provide evidence of professional liability insurance or errors and omissions coverage. Additionally, a new subsection in Section 2253.021 of the Government Code requires that the performance bond be at least 10% of the total contract value, ensuring compliance with laws and payment to subcontractors.

The bill also introduces Subchapter F to Chapter 2201 of the Insurance Code, which outlines bonding requirements for school district project managers. It specifies that the bond must be issued by a surety company authorized in Texas and that claims against the bond can be made if the project manager fails to fulfill contractual obligations, such as meeting deadlines or making payments to subcontractors. This legislation is set to take effect on September 1, 2025.

Statutes affected:
Introduced: of the Education Code 44.031, of the Government Code 2253.021 (of the Education Code 44, of the Government Code 2253)