SB995

Regular Session

Relating to the approval of a surety bond for a contract authorizing an oversize or overweight vehicle to cross a road or highway.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Department of Transportation (TxDOT)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (Applies to all new bond submissions filed on or after this date).
Agency Rulemaking: TxDOT is expected to update 43 TAC and issue revised bond forms by Summer 2025 to remove obsolete signature blocks.

Immediate Action Plan

Notify Surety Brokers: Inform your bonding agents immediately that Texas OS/OW bond forms must be updated to reflect single-agency approval by September 1.
Update SOPs: Revise internal routing protocols to prevent accidental submissions to the AG or Comptroller, which will result in processing delays.
Buffer Q4 Submissions: Submit bond packages for late 2025 projects 15 days earlier than usual to account for TxDOT internal workflow adjustments.
Monitor Forms: Assign a compliance officer to watch the TxDOT website for the release of the simplified bond template.

Operational Changes Required

Contracts

Ensure your surety providers update their standard bond forms for Texas OS/OW crossings. Forms must be revised to remove signature lines for the Comptroller and Attorney General. Using legacy forms after September 1 may result in administrative rejection by TxDOT.

Hiring/Training

Retrain permitting and compliance staff to cease routing bond drafts to the Attorney General or Comptroller. Update internal Standard Operating Procedures (SOPs) to reflect a direct-to-TxDOT submission workflow.

Reporting & Record-Keeping

You no longer need to retain evidence of multi-agency approval for audit purposes. The singular approval notification from TxDOT will serve as the sole required compliance artifact for the validity of the bond.

Fees & Costs

There are no changes to statutory fees or bond calculation methods. Administrative costs should decrease due to the elimination of multi-agency coordination.

Strategic Ambiguities & Considerations

The statute removes external legal review (Attorney General), placing the burden of determining "legal sufficiency" entirely on TxDOT’s internal counsel. This creates a potential bottleneck in Q4 2025 if TxDOT is not adequately staffed to handle the increased legal review volume. Furthermore, the law does not specify if TxDOT will accept legacy forms with "N/A" marked in obsolete signature blocks or if they will require strictly updated forms immediately upon the effective date.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsHighways Vehicles & Traffic Vehicles & Traffic--general Bonds Transportation, Texas Department of Vehicle Weight Limits & Enforcement Vehicles & Traffic--rules of Road

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 995
89R5746 GP-F	By: Nichols
	Transportation
	3/4/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Under Texas Transportation Code � 623.051 and � 623.052, a person may operate an overweight vehicle to cross roads or highways under the Texas Department of Transportation's (TxDOT) jurisdiction to get from one private road to another. This is done through contracts to indemnify TxDOT for the cost of maintenance and repair of the part of the highway crossed by the vehicle; and obtaining a surety bond in an amount determined by TxDOT to compensate for the maintenance and repairs to the affected roads or highways.

Currently, the comptroller of public accounts and the attorney general must approve the surety bond.

This bill would amend Texas Transportation Code � 623.051 and � 623.052 by removing the comptroller and attorney general from the approval process to obtain a surety bond and add TxDOT as the agency in charge of approving surety bonds. This increases efficiency in the surety bond approval process as TxDOT has the expertise and authority to assess and contract with applicants directly.

As proposed, S.B. 995 amends current law relating to the approval of a surety bond for a contract authorizing an oversize or overweight vehicle to cross a road or highway.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 623.051(d), Transportation Code, to require that a surety bond be approved by the Texas Department of Transportation, rather than the comptroller of public accounts of the State of Texas and the attorney general, and be conditioned on the person fulfilling the obligations of the contract.

SECTION 2. Amends Section 623.052(b), Transportation Code, to make a conforming change.

SECTION 3. Makes application of this Act prospective.

SECTION 4. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Robert NicholsRepublican · Primary Author

Coauthors (1)

Royce West (D)

House Sponsor

Rep. Dennis PaulRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 995

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the approval of a surety bond for a contract authorizing
	an oversize or overweight vehicle to cross a road or highway.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 623.051(d), Transportation Code, is
	amended to read as follows:
	(d) Before exercising any right under a contract under this
	section, a person must execute with a corporate surety authorized
	to do business in this state a surety bond in an amount determined
	by the commission to compensate for the cost of maintenance and
	repairs as provided by this section. The bond must be approved by
	the Texas Department of Transportation [~~comptroller and the~~
	~~attorney general~~] and must be conditioned on the person fulfilling
	the obligations of the contract.
	SECTION 2. Section 623.052(b), Transportation Code, is
	amended to read as follows:
	(b) Before a person may operate a vehicle under this
	section, the person must:
	(1) contract with the Texas Department of
	Transportation to indemnify the Texas Department of Transportation
	for the cost of the maintenance and repair for damage caused by a
	vehicle crossing that part of the highway; and
	(2) execute an adequate surety bond to compensate for
	the cost of maintenance and repair, approved by the Texas
	Department of Transportation [~~comptroller and the attorney~~
	~~general~~], with a corporate surety authorized to do business in this
	state, conditioned on the person fulfilling each obligation of the
	agreement.
	SECTION 3. The changes in law made by this Act apply only to
	the approval of a surety bond on or after the effective date of this
	Act.
	SECTION 4. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 11, 2025

TO:	Honorable Robert Nichols, Chair, Senate Committee on Transportation

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB995 by Nichols (Relating to the approval of a surety bond for a contract authorizing an oversize or overweight vehicle to cross a road or highway.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

302 Office of the Attorney General, 304 Comptroller of Public Accounts, 601 Department of Transportation

LBB Staff:

JMc, AAL, GDZ, TG

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Frequently Asked Questions

Common questions about SB995

What does Texas SB995 do?

SB995 streamlines the permitting process for oversize/overweight (OS/OW) vehicle crossing contracts by removing the Comptroller and Attorney General from the surety bond approval loop. Effective September 1, 2025, the Texas Department of Transportation (TxDOT) assumes sole authority for approving these bonds, reducing administrative lead times for heavy civil, energy, and logistics operators. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Applies to all new bond submissions filed on or after this date).

Who authored SB995?

SB995 was authored by Texas Senator Robert Nichols during the Regular Session.

When was SB995 signed into law?

SB995 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB995?

SB995 is enforced by Texas Department of Transportation (TxDOT).

How urgent is compliance with SB995?

The compliance urgency for SB995 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB995?

The cost impact of SB995 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB995 address?

SB995 addresses topics including highways, vehicles & traffic, vehicles & traffic--general, bonds and transportation, texas department of.

Legislative data provided by LegiScanLast updated: November 25, 2025

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