HBA-AMW H.B. 409 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 409
By: Shields
State Affairs
7/27/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, a bondsman's name, address, and telephone
number were not required to appear on a payment or performance bond.  As a
result, it might have been difficult to locate the bondsman to obtain
payment on a government or private bond.  House Bill 409 requires that
performance and payment bonds clearly display surety company contact
information for sending any notice of claim or display the toll-free
telephone number maintained by the Texas Department of Insurance for
obtaining the address of a surety company. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 409 amends the Government and Property codes relating to bonds
executed by a contractor for a public work or to indemnify against a
mechanic's, contractor's, or materialman's lien.  The bill requires that
certain surety company contact information or the Texas Department of
Insurance's (TDI) toll-free telephone number be contained on the bond or an
attachment to the bond. The bill requires a governmental entity to furnish
to any person who makes the appropriate request a certified copy of a
payment bond, and any attachment to the bond, the public work contract for
which the bond was given, and the toll-free telephone number maintained by
TDI for obtaining information concerning licensed insurance companies. 

EFFECTIVE DATE

September 1, 2001.