Tex.
Gov't Code Section 2253.027
Liability of Governmental Entity
(a)
If a governmental entity fails to obtain from a prime contractor a payment bond as required by Section 2253.021 (Performance and Payment Bonds Required) or fails to include in a lease the lease terms required by Section 2252.909 (Voidable Contract Provision: Experience Modifier):(1)
the entity is subject to the same liability that a surety would have if the surety had issued a payment bond and if the entity had obtained the bond; and(2)
a payment bond beneficiary is entitled to a lien on money due to the prime contractor in the same manner and to the same extent as if the public work contract were subject to Subchapter J (Lien), Chapter 53 (Mechanic’s, Contractor’s, or Materialman’s Lien), Property Code.(b)
To recover in a suit under Subsection (a), the only notice a payment bond beneficiary is required to provide to the governmental entity is a notice provided in the same manner as described by Subchapter C. The notice must be provided as if the governmental entity were a surety.(c)
A governmental entity is not liable as a surety under Subsection (a)(1) if a person leasing property from the entity fails to submit to the entity the notice of commencement required by Section 2252.909 (Voidable Contract Provision: Experience Modifier).
Source:
Section 2253.027 — Liability of Governmental Entity, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2253.htm#2253.027 (accessed Jun. 5, 2024).
