The caption says the bill is about bid bonding, but the operative text waives the performance bond, which is a different guarantee. The caption also calls these small projects, yet the limit is one percent of each city's budget, so how big a 'small' project can be rises with the size of the city.
Caption: bid bonding. Bill: performance bonds. And “small” means under 1% of the city budget!
The bill lets a Texas city skip two safeguards on construction contracts worth less than one percent of the city's latest adopted budget: it no longer has to make sure the contractor carries workers' compensation insurance, and it no longer has to require a performance bond. It touches cities, the contractors they hire, and the workers on those job sites. On new contracts signed on or after September 1, 2025, cities can award these jobs without those coverage and bond checks, and the dollar limit for what counts as small grows as a city's budget grows.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 3406 by Rep. Spiller (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 3406 by Rep. Spiller (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.NEVER GOT A HEARING. Filed Mar 4, 2025 and referred to the Senate Local Government committee. No public hearing. The bill died.
relating to workers' compensation insurance coverage and bid
bonding requirements for small municipal construction projects.
WHAT IT DOES
Caption: bid bonding. Bill: performance bonds. And “small” means under 1% of the city budget!
The bill lets a Texas city skip two safeguards on construction contracts worth less than one percent of the city's latest adopted budget: it no longer has to make sure the contractor carries workers' compensation insurance, and it no longer has to require a performance bond. It touches cities, the contractors they hire, and the workers on those job sites. On new contracts signed on or after September 1, 2025, cities can award these jobs without those coverage and bond checks, and the dollar limit for what counts as small grows as a city's budget grows.
The caption says the bill is about bid bonding, but the operative text waives the performance bond, which is a different guarantee. The caption also calls these small projects, yet the limit is one percent of each city's budget, so how big a 'small' project can be rises with the size of the city.
89R3264 SCL-D
By: Perry
S.B. No. 1890
A BILL TO BE ENTITLED
AN ACT
relating to workers' compensation insurance coverage and bid
bonding requirements for small municipal construction projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 271, Local Government
Code, is amended by adding Section 271.909 to read as follows:
Sec. 271.909. WORKERS' COMPENSATION AND BID BONDING
REQUIREMENTS FOR SMALL MUNICIPAL CONSTRUCTION PROJECTS. (a) In
this section, "project" includes all work to be completed on a
construction project for a municipality at one location within 12
months of the date the work begins.
(b) Notwithstanding any other law, for a construction
project contracted for an amount that is less than one percent of
the total amount of a municipality's most recently adopted budget,
the municipality is not required to:
(1) ensure that the contractor is covered by workers'
compensation insurance coverage; or
(2) require the contractor to obtain a performance
bond.
(c) For the purpose of determining the contracted amount of
a construction project under Subsection (b), a municipality may not
aggregate work from more than one project.
SECTION 2. The change in law made by this Act applies only
to a contract entered into on or after the effective date of this
Act.
SECTION 3. This Act takes effect September 1, 2025.