Relating to workers' compensation insurance coverage and bid bonding requirements for small municipal construction projects for certain municipalities.
The caption says the bill deals with bid bonding, but the text waives the performance bond, a different bond, and never mentions bid bonds. The subject matches in spirit, so this looks like a drafting gap rather than a hidden provision.
Initial review · graded Nov 9, 2026 · How we grade
Caption
relating to workers' compensation insurance coverage and bid
bonding requirements for small municipal construction projects for
certain municipalities.
This bill lets small Texas cities skip two safeguards on small construction jobs: making sure the contractor carries workers' compensation insurance, and requiring the contractor to post a performance bond.
This bill lets small Texas cities skip two safeguards on small construction jobs: making sure the contractor carries workers' compensation insurance, and requiring the contractor to post a performance bond. It touches cities with fewer than 20,000 people, their contractors, and the workers on those jobs, for projects that cost less than one percent of the city's latest budget. Starting with contracts signed on or after September 1, 2027, those cities can hire contractors for small jobs without these coverage and bond requirements, but they cannot add up several projects to fit under the limit.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 3406 by Rep. Spiller (Died in committee) and 89R SB 1890 (Died in committee). Checked against 88R and 89R only.DO-OVER. Reworked text of a bill filed before that died: 88R HB 3406 by Rep. Spiller (Died in committee) and 89R SB 1890 (Died in committee). Filed in 3 sessions, counting this one. Checked against 88R and 89R only.TRY NO. 3. Filed in 3 sessions: 88R, 89R and 90R. Checked against 88R and 89R only.
relating to workers' compensation insurance coverage and bid
bonding requirements for small municipal construction projects for
certain municipalities.
WHAT IT DOES
This bill lets small Texas cities skip two safeguards on small construction jobs: making sure the contractor carries workers' compensation insurance, and requiring the contractor to post a performance bond.
This bill lets small Texas cities skip two safeguards on small construction jobs: making sure the contractor carries workers' compensation insurance, and requiring the contractor to post a performance bond. It touches cities with fewer than 20,000 people, their contractors, and the workers on those jobs, for projects that cost less than one percent of the city's latest budget. Starting with contracts signed on or after September 1, 2027, those cities can hire contractors for small jobs without these coverage and bond requirements, but they cannot add up several projects to fit under the limit.
The caption says the bill deals with bid bonding, but the text waives the performance bond, a different bond, and never mentions bid bonds. The subject matches in spirit, so this looks like a drafting gap rather than a hidden provision.
90R968 SCL-D
By: Perry
S.B. No. 262
A BILL TO BE ENTITLED
AN ACT
relating to workers' compensation insurance coverage and bid
bonding requirements for small municipal construction projects for
certain municipalities.
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 FOR CERTAIN
MUNICIPALITIES. (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) This section applies only to a municipality with a
population of less than 20,000.
(c) 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.
(d) For the purpose of determining the contracted amount of
a construction project under Subsection (c), 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, 2027.