Focus Report, Volume 87, Number 5, January 10, 2022 Page: PAGE9
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* Expanding performance and payment
bond requirements to certain entities
HB 1477 by K. Bell (Nichols)
Digest Notes
HB 1477 would have expanded certain state laws The HRO analysis of HB 1477 appeared in Part Two
requiring performance and payment bonds for public of the May 4 Daily Floor Report.
work contracts. A governmental entity that authorized a
nongovernmental entity leasing public property from the
governmental entity to enter into a public work contract
with a prime contractor would have had to require the
contractor to execute performance and payment bonds.
The bill would not have included persons who leased
properties from certain river authorities.
Governor's reason for veto
"Whenever a government entity leases public property
to a non-governmental entity, and the latter decides to
enter into a contract for work performed on the property,
House Bill 1477 would make the government entity
responsible for the prime contractor obtaining a bond
to protect subcontractors. If no bond is obtained and
the prime contractor does not pay subcontractors, the
government entity would be responsible for payment
because the bill waives the government entity's sovereign
immunity in this situation. Because the government entity
may not know who the prime contractor is - or even that
there is a contract between the non-governmental entity
and a prime contractor - House Bill 1477 could leave
the government entity, and taxpayers, on the hook for
damages not caused by the government entity."
Response
Rep. Keith Bell, the bill's author, could not be
reached for comment on the veto.
Sen. Robert Nichols, the Senate sponsor, had no
comment on the veto.Page 9
House Research Organization
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Texas. Legislature. House of Representatives. Research Organization. Focus Report, Volume 87, Number 5, January 10, 2022, periodical, January 10, 2022; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1543870/m1/9/?q=%22~1%22~1: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.