A subcontractor is not required to execute a performance bond under Chapter 2253 if:

1. (1) the construction, alteration, repair, or other public work to be performed under the contract is entirely in a readjustment zone; and
2. (2) the amount of the contract does not exceed $200,000.

Added by Acts 1997, 75th Leg., ch. 114, Sec. 1, eff. May 19, 1997.