Texas HB643 amends the requirement for payment bonds from public work contractors.

HB643 modifies the Government Code to mandate that governmental entities require contractors to execute a performance bond for contracts exceeding $100,000 and a payment bond for contracts exceeding $100,000 unless the entity is a municipality or a joint board, in which case the threshold is $50,000. The changes apply to contracts solicited after the bill's effective date of September 1, 2025. Contracts solicited before the effective date remain governed by previous law.

Texas HB643 amends the requirement for payment bonds from public work contractors.

HB643 modifies the Government Code to mandate that governmental entities require contractors to execute a performance bond for contracts exceeding $100,000 and a payment bond for contracts exceeding $100,000 unless the entity is a municipality or a joint board, in which case the threshold is $50,000. The changes apply to contracts solicited after the bill's effective date of September 1, 2025. Contracts solicited before the effective date remain governed by previous law.