85R13633 SCL-F     By: Schwertner S.B. No. 1980       A BILL TO BE ENTITLED   AN ACT   relating to performance bonds for certain public improvements in   certain municipalities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 212.073, Local Government Code, is   amended to read as follows:          Sec. 212.073.  PERFORMANCE BOND; LETTER OF CREDIT. (a)   Except as provided by Subsection (b), the [The] developer must   execute a performance bond for the construction of the improvements   that are the subject of the contract under Section 212.071 to ensure   completion of the project. The bond must be executed by a corporate   surety in accordance with Chapter 2253, Government Code. The   amount of the bond must be for the contract price for the   improvements. The municipality may not require the developer to   include in the amount of the bond any other improvement related to   the development that the developer did not contract with the   municipality to construct under Section 212.071.          (b)  The municipality and developer may agree that, instead   of a performance bond under Subsection (a), the developer may   submit to the municipality an irrevocable letter of credit in the   amount required under Subsection (a) for the bond. As part of the   agreement, the municipality may not pay any amount to the   developer, issue a building permit related to the development other   than a permit necessary for the improvements that are the subject of   the contract, or approve a subdivision plat for the developer   until:                (1)  the improvements are:                      (A)  complete; or                      (B)  in the final phase of construction if the   improvements are constructed in phases; and                (2)  the developer has submitted to the municipality an   affidavit stating that the developer has paid all costs associated   with the construction.          SECTION 2.  Section 212.073, Local Government Code, as   amended by this Act, applies only to a contract entered into under   Section 212.071, Local Government Code, on or after the effective   date of this Act. A contract entered into under Section 212.071,   Local Government Code, before the effective date of this Act is   governed by the law applicable to the contract immediately before   the effective date of this Act, and that law is continued in effect   for that purpose.          SECTION 3.  This Act takes effect September 1, 2017.