89th Legislature Regular Session

SB 1066

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest
SB 1066 proposes an amendment to Section 11.0171 of the Texas Parks and Wildlife Code. The bill requires performance and payment bonds for contractors involved in constructing, altering, or repairing a public building or carrying out any public work for the Texas Parks and Wildlife Department (TPWD) when the contract value exceeds $150,000. These bonds must be executed before work begins.

The new requirement applies only to contracts first advertised or solicited on or after the bill's effective date.

The committee substitute version of SB 1066 refines and simplifies the bonding requirement by broadening applicability beyond strictly defined "public work contracts", expanding enforcement authority, and integrating the requirement into the Parks and Wildlife Code more smoothly. These changes increase flexibility in implementation but could also expand the regulatory burden to a broader range of contracts.
Author
Charles Perry
Fiscal Notes

The fiscal note for SB 1066 indicates that the bill is not expected to have a significant fiscal impact on the state. Any costs associated with implementing the requirement for performance and payment bonds for certain contractors working with the Texas Parks and Wildlife Department (TPWD) are assumed to be manageable within existing resources.

Additionally, the bill does not impose any significant financial burden on local governments, meaning cities, counties, or other local entities will not experience notable costs as a result of this legislation.

The Legislative Budget Board (LBB) reviewed the bill and determined that its implementation does not require additional appropriations or new funding allocations. Overall, the bill is fiscally neutral, ensuring contractor accountability without generating substantial costs for the state or local governments.

Vote Recommendation Notes

SB 1066 presents a reasonable and necessary update to existing contractor bonding requirements for the Texas Parks and Wildlife Department (TPWD). The bill raises the threshold for requiring performance and payment bonds from $25,000 and $100,000, respectively, to $150,000 for public works projects under TPWD. The primary goal is to increase competition by allowing more small and local contractors to compete for state contracts without being disqualified due to bonding costs. The bill also seeks to streamline the contracting process, reducing administrative burdens and lowering project costs.

This bill aligns with key liberty principles. It promotes free enterprise by reducing regulatory barriers that previously prevented small businesses and rural contractors from participating in state projects. By setting a higher bonding threshold, more businesses gain access to government contracts, fostering greater economic opportunity while still maintaining financial accountability for larger projects. Additionally, SB 1066 advances limited government by eliminating unnecessary bureaucratic requirements for smaller projects, ensuring that bonding requirements are only applied where they are most needed.

Concerns about contractor accountability and fiscal responsibility are well addressed in the bill. TPWD still retains the ability to require performance and payment bonds for contracts exceeding $150,000, ensuring that larger projects are safeguarded against financial and performance failures.

Given these considerations, SB 1066 strikes an effective balance between contractor accountability, free market competition, and reduced regulatory barriers. Texas Policy Research recommends a YES vote on SB 1066.

View Bill Text and Status