HOUSE AMENDMENT Bill No. HB 1169 CS
1	CHAMBER ACTION
2	Senate House
3	.
4	.
5	.
6
7
8
9
10
11
12	Representative Reagan offered the following:
13
14	Amendment (with title amendment)
15	Remove everything after the enacting clause, and insert:
16	Section 1. Section 218.70, Florida Statutes, is amended to
17	read:
18	218.70 Popular nameShort title.--This part may be cited
19	as the "Local GovernmentFloridaPrompt Payment Act."
20	Section 2. Subsections (2), (6), and (7) of section
21	218.72, Florida Statutes, are amended to read:
22	218.72 Definitions.--As used in this part:
23	(2) "Local governmental entity" means a county or
24	municipal government, school board, school district, authority,
25	special taxing district, other political subdivision, community
26	college,or any office, board, bureau, commission, department,
27	branch, division, or institution thereof or any project
28	supported by county or municipal funds.
29	(6) "Vendor" means any person who sells goods or services,
30	sells or leases personal property, or leases real property
31	directlyto a local government entity.
32	(7) "Construction services" means all labor, services, and
33	materials provided in connection with the construction,
34	alteration, repair, demolition, reconstruction, or any other
35	improvements to real property that require a license under parts
36	I and II of chapter 489.
37	Section 3. Subsection (6) of section 218.735, Florida
38	Statutes, is amended, present subsection (7) of that section is
39	redesignated as subsection (9), and new subsections (7) and (8)
40	are added to that section, to read:
41	218.735 Timely payment for purchases of construction
42	services.--
43	(6) When a contractor receives payment from a local
44	governmental entity for labor, services, or materials furnished
45	by subcontractors and suppliers hired by the contractor, the
46	contractor shall remit payment due to those subcontractors and
47	suppliers within 1015days after the contractor's receipt of
48	payment. When a subcontractor receives payment from a contractor
49	for labor, services, or materials furnished by subcontractors
50	and suppliers hired by the subcontractor, the subcontractor
51	shall remit payment due to those subcontractors and suppliers
52	within 1015days after the subcontractor's receipt of payment.
53	Nothing herein shall prohibit a contractor or subcontractor from
54	disputing, pursuant to the terms of the relevant contract, all
55	or any portion of a payment alleged to be due to another party.
56	In the event of such a dispute, the contractor or subcontractor
57	may withhold the disputed portion of any such payment if the
58	contractor or subcontractor notifies the party whose payment is
59	disputed, in writing, of the amount in dispute and the actions
60	required to cure the dispute. The contractor or subcontractor
61	must pay all undisputed amounts due within the time limits
62	imposed by this section.
63	(7)(a) Each contract for construction services between a
64	local government entity and vendor must provide for the
65	development of a list of items required to render complete,
66	satisfactory, and acceptable the construction services purchased
67	by the local government. The contract must specify the process
68	for the development of the list, including responsibilities of
69	the local government and vendor in developing and reviewing the
70	list and a reasonable time for developing such list as follows:
71	1. For construction projects with an estimated cost less
72	than $10 million, within 30 days after reaching substantial
73	completion of the construction services purchased as defined in
74	the contract, or, if not defined in the contract, upon reaching
75	beneficial occupancy or use; or
76	2. For construction projects with an estimated cost of $10
77	million or more, within 30 days, unless otherwise extended by
78	contract not to exceed 90 days, after reaching substantial
79	completion of the construction services purchased as defined in
80	the contract, or, if not defined in the contract, upon reaching
81	beneficial occupancy or use.
82	(b) If the contract between the local government entity
83	and vendor relates to the purchase of construction services on
84	more than one building or structure, or involves a multiphased
85	project, the contract shall provide for the development of a
86	list of items required to render complete, satisfactory, and
87	acceptable the construction services purchased for each
88	building, structure, or phase of the project in accordance with
89	the timeframes specified in subparagraph (a)1. or subparagraph
90	(a)2.
91	(c) The failure to include any corrective work or pending
92	items not yet completed on the list developed pursuant to this
93	subsection shall not alter the responsibility of the vendor to
94	complete all the purchased construction services as defined in
95	the contract.
96	(d) Upon completion of all items on the list, or such
97	other time defined in the contract, the vendor may submit a
98	payment request for the appropriate amount of retainage. The
99	local government may withhold an amount not to exceed 150
100	percent of the total costs to complete any incomplete items on
101	the list.
102	(e) All items that require correction under the contract
103	and that are identified after the preparation and delivery of
104	the list shall remain the obligation of the vendor as defined by
105	the contract.
106	(f) Warranty items may not affect the final payment of
107	retainage as provided in this section or as may be provided in
108	the contract between the vendor and its subcontractors and
109	suppliers.
110	(g) If a local government entity fails to comply with its
111	responsibilities to develop the list required under paragraph
112	(a) or paragraph(b), as defined in the contract, and the
113	timeframes provided in subparagraph(a)1. or subparagraph (a)2.,
114	the vendor may submit a payment request for the appropriate
115	amount of retainage. The local government entity shall not be
116	required to pay or process any request for payment of retainage
117	if the vendor has, in whole or in part, failed to cooperate with
118	the local government in the development of the list; failed to
119	perform its contractual responsibilities, if any, with regard to
120	the development of the list; or if paragraph (8)(d) applies.
121	(8)(a) In any public construction project, a local
122	government entity may withhold an amount not exceeding 10
123	percent of each progress payment made to the vendor until the
124	local government project has reached 50-percent completion.
125	After reaching 50-percent completion, the local government must
126	reduce to 5 percent the amount of retainage withheld from each
127	subsequent progress payment made to the vendor. However,
128	notwithstanding the provisions of this subsection, a
129	municipality with a population of 25,000 or fewer, or a county
130	with a population of 100,000 or fewer, may withhold retainage in
131	an amount not exceeding 10 percent of each progress payment made
132	to the vendor until final completion and acceptance of the
133	project by the local government. For purposes of this
134	subsection, the term "50-percent completion" means as defined in
135	the contract between the local government entity and the vendor,
136	or, if not defined in the contract, the point at which the local
137	government has expended 50 percent of the total project costs
138	identified in the contract, plus all change orders and other
139	additions issued subsequent to the approval of the contract by
140	the governing body of the local government, and the level of
141	actual project construction is equivalent to such expenditure of
142	funds.
143	(b) After 50-percent completion, the vendor may present to
144	the local government entity a payment request for up to one-half
145	of the retainage amount held by the local government. The local
146	government entity shall promptly make payment to the vendor,
147	unless the local government has grounds, pursuant to the
148	contract or as provided in paragraph (d), for withholding the
149	payment of retainage. If the local government makes payment of
150	retainage to the vendor under this paragraph, the vendor shall
151	timely remit payment of such retainage to the appropriate
152	subcontractors and suppliers.
153	(c) After 50-percent completion, the vendor may elect to
154	withhold retainage from payments to its subcontractors at a rate
155	higher than 5 percent. The specific amount to be withheld must
156	be determined on a case-by-case basis and must be based on the
157	vendor's assessment of the subcontractor's past performance, the
158	likelihood that such performance will continue, and the vendor's
159	ability to rely on other safeguards. The vendor shall notify the
160	subcontractor, in writing, of its determination to withhold more
161	than 5 percent of the progress payment and the reasons for
162	making that determination, and the vendor may not request the
163	release of such retained funds from the local government.
164	(d) Nothing in this section requires the local government
165	to pay or release any amounts that are the subject of a good-
166	faith dispute, the subject of an action brought pursuant to s.
167	255.05, or otherwise the subject of a claim or demand by the
168	local government or vendor.
169	(e) The timeframes set forth in this section for payment
170	of payment requests apply to any payment request for retainage
171	made pursuant to this subsection.
172	Section 4. Section 255.0705, Florida Statutes, is created
173	to read:
174	255.0705 Short title.--Sections 255.0705-255.078 may be
175	cited as the "Florida Prompt Payment Act."
176	Section 5. Subsections (2) and (3) of section 255.071,
177	Florida Statutes, are amended to read:
178	255.071 Payment of subcontractors, sub-subcontractors,
179	materialmen, and suppliers on construction contracts for public
180	projects.--
181	(2) The failure to pay any undisputed obligations for such
182	labor, services, or materials within 30 days after the date the
183	labor, services, or materials were furnished and payment for
184	such labor, services, or materials became due, or within 1030
185	days after the date payment for such labor, services, or
186	materials is received, whichever last occurs, shall entitle any
187	person providing such labor, services, or materials to the
188	procedures specified in subsection (3) and the remedies provided
189	in subsection(4).
190	(3) Any person providing labor, services, or materials for
191	the construction of a public building, for the prosecution and
192	completion of a public work, or for repairs upon a public
193	building or public work improvements to real property may file a
194	verified complaint alleging:
195	(a) The existence of a contract for providing such labor,
196	services, or materials to improve real property.
197	(b) A description of the labor, services, or materials
198	provided and alleging that the labor, services, or materials
199	were provided in accordance with the contract.
200	(c) The amount of the contract price.
201	(d) The amount, if any, paid pursuant to the contract.
202	(e) The amount that remains unpaid pursuant to the
203	contract and the amount thereof that is undisputed.
204	(f) That the undisputed amount has remained due and
205	payable pursuant to the contract for more than 30 days after the
206	date the labor or services were accepted or the materials were
207	received.
208	(g) That the person against whom the complaint was filed
209	has received payment on account of the labor, services, or
210	materials described in the complaint more than 1030days prior
211	to the date the complaint was filed.
212	Section 6. Section 255.072, Florida Statutes, is created
213	to read:
214	255.072 Definitions.--As used in ss. 255.073-255.078, the
215	term:
216	(1) "Agent" means project architect, project engineer, or
217	any other agency or person acting on behalf of a public entity.
218	(2) "Construction services" means all labor, services, and
219	materials provided in connection with the construction,
220	alteration, repair, demolition, reconstruction, or any other
221	improvements to real property. The term "construction services"
222	does not include contracts or work performed for the Department
223	of Transportation.
224	(3) "Payment request" means an invoice or request for
225	payment for construction services which conforms with all
226	statutory requirements and with all requirements specified by
227	the public entity to which the payment request is submitted.
228	(4) "Public entity" means the state, a state university,
229	or any office, board, bureau, commission, department, branch,
230	division, or institution thereof, or any project supported by
231	state funds, but does not include a local government entity as
232	defined in s. 218.72.
233	(5) "Purchase" means the purchase of construction
234	services.
235	(6) "Vendor" means any person providing construction
236	services directly to a public entity.
237	Section 7. Section 255.073, Florida Statutes, is created
238	to read:
239	255.073 Timely payment for purchases of construction
240	services.--
241	(1) Except as otherwise provided in ss. 255.072-255.078,
242	s. 215.422 governs the timely payment for construction services
243	by a public entity under this act.
244	(2) If a public entity disputes a portion of a payment
245	request, the undisputed portion must be timely paid, in
246	accordance with subsection(1).
247	(3) When a vendor receives payment from a public entity
248	for labor, services, or materials furnished by subcontractors
249	and suppliers hired by the vendor, the vendor shall remit
250	payment due to those subcontractors and suppliers within 10 days
251	after the vendor's receipt of payment. When a subcontractor
252	receives payment from a vendor for labor, services, or materials
253	furnished by subcontractors and suppliers hired by the
254	subcontractor, the subcontractor shall remit payment due to
255	those subcontractors and suppliers within 10 days after the
256	subcontractor's receipt of payment. This subsection does not
257	prohibit a vendor or subcontractor from disputing, pursuant to
258	the terms of the relevant contract, all or any portion of a
259	payment alleged to be due to another party. If such a dispute
260	occurs, the vendor or subcontractor may withhold the disputed
261	portion of any such payment if the vendor or subcontractor
262	notifies the party whose payment is disputed, in writing, of the
263	amount in dispute and the actions required to cure the dispute.
264	The vendor or subcontractor must pay all undisputed amounts due
265	within the time limits imposed by this section.
266	(4) All payments due under this section and not made
267	within the time periods specified by this section shall bear
268	interest at the rate of 1 percent per month, or the rate
269	specified by contract, whichever is greater.
270	Section 8. Section 255.074, Florida Statutes, is created
271	to read:
272	255.074 Procedures for calculation of payment due dates.--
273	(1) Each public entity shall establish procedures whereby
274	each payment request received by the public entity is marked as
275	received on the date on which it is delivered to an agent or
276	employee of the public entity or of a facility or office of the
277	public entity.
278	(2) If the terms under which a purchase is made allow for
279	partial deliveries and a payment request is submitted for a
280	partial delivery, the time for payment for the partial delivery
281	must be calculated from the time of the partial delivery and the
282	submission of the payment request in the same manner as provided
283	in s. 255.073.
284	(3) The public entity must submit a payment request to the
285	Chief Financial Officer for payment no more than 25 days after
286	receipt of the payment request.
287	Section 9. Section 255.075, Florida Statutes, is created
288	to read:
289	255.075 Mandatory interest.--A contract between a public
290	entity and a vendor or a provider of construction services may
291	not prohibit the collection of late payment interest charges
292	allowable under ss. 255.072-255.078.
293	Section 10. Section 255.076, Florida Statutes, is created
294	to read:
295	255.076 Improper payment request; resolution of
296	disputes.--
297	(1) If a vendor submits an improper payment request, the
298	public entity shall, within 10 days after receiving the improper
299	payment request, notify the vendor that the payment request is
300	improper and indicate what corrective action on the part of the
301	vendor is needed to make the payment request proper.
302	(2) If a dispute occurs between a vendor and a public
303	entity concerning payment of a payment request, the dispute must
304	be resolved as provided in this section. Each public entity
305	shall establish a dispute resolution procedure to be followed by
306	the public entity if such a dispute occurs. The procedure must
307	provide that proceedings to resolve the dispute must commence
308	not later than 45 days after the date on which the public entity
309	received the payment request and must conclude by final decision
310	of the public entity not later than 60 days after the date on
311	which the public entity received the payment request. Such
312	procedures are not subject to chapter 120 and do not constitute
313	an administrative proceeding that prohibits a court from
314	deciding de novo any action arising out of the dispute. If the
315	dispute is resolved in favor of the public entity, interest
316	charges begin to accrue 15 days after the public entity's final
317	decision. If the dispute is resolved in favor of the vendor,
318	interest begins to accrue as of the original date the payment
319	became due.
320	(3) In an action to recover amounts due under ss. 255.072-
321	255.078, the court shall award court costs and reasonable
322	attorney's fees, including fees incurred through any appeal, to
323	the prevailing party, if the court finds that the nonprevailing
324	party withheld any portion of the payment that is the subject of
325	the action without any reasonable basis in law or fact to
326	dispute the prevailing party's claim to those amounts.
327	Section 11. Section 255.077, Florida Statutes, is created
328	to read:
329	255.077 Project closeout and payment of retainage.--
330	(1) A public entity must present to the vendor a final
331	punch list of all items required to render complete,
332	satisfactory, and acceptable the construction services
333	purchased, within 30 days after the earliest of the following:
334	(a) Issuance of a temporary or final certificate of
335	occupancy, if applicable;
336	(b) Substantial completion of the construction services
337	purchased, as defined in the contract; or
338	(c) Beneficial occupancy or use of the structure,
339	building, facility, or improvement that is the subject of the
340	construction services purchased, as defined in the contract.
341	(2) If the purchase relates to construction services on
342	more than one building or structure, the public entity shall
343	prepare a final punch list for each building or structure. The
344	public entity must present to the vendor a final punch list with
345	regard to each building or structure within 30 days after the
346	earliest of the following:
347	(a) Issuance of a temporary or final certificate of
348	occupancy on the particular building or structure, if
349	applicable;
350	(b) Substantial completion of the particular building or
351	structure, as defined in the contract; or
352	(c) Beneficial occupancy or use of the particular
353	structure, building, facility, or improvement, as defined in the
354	contract.
355
356	Unless the contract provides otherwise, the public entity shall
357	pay out retainage to the vendor based upon the value of the
358	construction services rendered with regard to that structure,
359	building, facility, or improvement as compared to the total
360	value of the purchase.
361	(3) Upon completion of all items on the final punch list
362	or within 30 days after issuance of the punch list, whichever
363	occurs sooner, the vendor shall submit a payment request for the
364	appropriate amount of retainage. The owner may withhold up to
365	150 percent of the cost to complete any incomplete final
366	punchlist items. Thereafter, ss. 255.072-255.076 apply to the
367	payment of any payment request for retainage.
368	(4) If the public entity fails to present to the vendor a
369	final punch list within the time periods provided in subsection
370	(1) or subsection (2), the project is considered to be complete
371	and the vendor shall submit a payment request for the
372	appropriate amount of retainage. Thereafter, ss. 255.072-255.076
373	apply to the payment of any payment request for retainage.
374	(5) All items that require correction under the contract
375	which are identified subsequent to preparation and delivery of
376	the final punch list must be considered warranty items or make-
377	good items, and such items have no effect on the final payment
378	of retainage provided in this section.
379	Section 12. Section 255.078, Florida Statutes, is created
380	to read:
381	255.078 Public construction retainage.--
382	(1) From the commencement of a public construction project
383	that is subject to ss. 255.072-255.078 until 50-percent of the
384	contract value has been earned, a public entity may not withhold
385	as retainage more than 10 percent of each progress payment to
386	the vendor. When 50-percent of the contract value has been
387	earned, the vendor may submit a payment request to the public
388	entity for up to one-half of the retainage withheld up to that
389	time.
390	(2) After 50-percent of the contract value has been
391	earned, the public entity may not withhold as retainage more
392	than 5 percent of each progress payment to the vendor. However,
393	the vendor may withhold retainage from payments to its
394	subcontractors at a rate higher than 5 percent. The specific
395	amount to be withheld must be determined on a case-by-case basis
396	and must be based on the vendor's assessment of the
397	subcontractor's past performance, the likelihood that such
398	performance will continue, and the vendor's ability to rely on
399	other safeguards. The vendor shall notify the subcontractor, in
400	writing, of its determination to withhold more than 5 percent of
401	the progress payment and the reasons for making that
402	determination.
403	(3) This section does not require the payment or release
404	of amounts that are the subject of a good-faith dispute.
405	(4) Sections 255.072-255.076 apply to the payment of any
406	payment request for retainage.
407	Section 13. Paragraph (a) of subsection (2) is amended and
408	subsections (10) and (11) are added to section 255.05, Florida
409	Statutes, to read:
410	255.05 Bond of contractor constructing public buildings;
411	form; action by materialmen.--
412	(2)(a)1. If a claimant is no longer furnishing labor,
413	services, or materials on a project, a contractor or the
414	contractor's agent or attorney may elect to shorten the
415	prescribed time in this paragraph within which an action to
416	enforce any claim against a payment bond provided pursuant to
417	this section may be commenced by recording in the clerk's office
418	a notice in substantially the following form:
419
420	NOTICE OF CONTEST OF CLAIM AGAINST PAYMENT BOND
421
422	To: . . . (Name and address of claimant) . . .
423
424	You are notified that the undersigned contests your notice
425	of nonpayment, dated ____________, ________, and served on the
426	undersigned on ____________, ________, and that the time within
427	which you may file suit to enforce your claim is limited to 60
428	days after the date of service of this notice.
429
430	DATED on ____________, ________.
431
432	Signed: . . . (Contractor or Attorney) . . .
433
434	The claim of any claimant upon whom such notice is served and
435	who fails to institute a suit to enforce his or her claim
436	against the payment bond within 60 days after service of such
437	notice shall be extinguished automatically. The clerk shall mail
438	a copy of the notice of contest to the claimant at the address
439	shown in the notice of nonpayment or most recent amendment
440	thereto and shall certify to such service on the face of such
441	notice and record the notice. Service is complete upon mailing.
442	2. A claimant, except a laborer, who is not in privity
443	with the contractor shall, before commencing or not later than
444	45 days after commencing to furnish labor, materials, or
445	supplies for the prosecution of the work, furnish the contractor
446	with a notice that he or she intends to look to the bond for
447	protection. A claimant who is not in privity with the contractor
448	and who has not received payment for his or her labor,
449	materials, or supplies shall deliver to the contractor and to
450	the surety written notice of the performance of the labor or
451	delivery of the materials or supplies and of the nonpayment. The
452	notice of nonpayment may be served at any time during the
453	progress of the work or thereafter but not before 45 days after
454	the first furnishing of labor, services, or materials, and not
455	later than 90 days after the final furnishing of the labor,
456	services, or materials by the claimant or, with respect to
457	rental equipment, not later than 90 days after the date that the
458	rental equipment was last on the job site available for use. Any
459	notice of nonpayment served by a claimant who is not in privity
460	with the contractor which includes sums for retainage must
461	specify the portion of the amount claimed for retainage.No
462	action for the labor, materials, or supplies may be instituted
463	against the contractor or the surety unless both notices have
464	been given. Notices required or permitted under this section may
465	be served in accordance with s. 713.18. An action, except for an
466	action exclusively for recovery of retainage, must be instituted
467	against the contractor or the surety on the payment bond or the
468	payment provisions of a combined payment and performance bond
469	within 1 year after the performance of the labor or completion
470	of delivery of the materials or supplies. An action exclusively
471	for recovery of retainage must be instituted against the
472	contractor or the surety within 1 year after the performance of
473	the labor or completion of delivery of the materials or
474	supplies, or within 90 days after receipt of final payment (or
475	the payment estimate containing the owner's final reconciliation
476	of quantities if no further payment is earned and due as a
477	result of deductive adjustments) by the contractor or surety,
478	whichever comes last. A claimant may not waive in advance his or
479	her right to bring an action under the bond against the surety.
480	In any action brought to enforce a claim against a payment bond
481	under this section, the prevailing party is entitled to recover
482	a reasonable fee for the services of his or her attorney for
483	trial and appeal or for arbitration, in an amount to be
484	determined by the court, which fee must be taxed as part of the
485	prevailing party's costs, as allowed in equitable actions. The
486	time periods for service of a notice of nonpayment or for
487	bringing an action against a contractor or a surety shall be
488	measured from the last day of furnishing labor, services, or
489	materials by the claimant and shall not be measured by other
490	standards, such as the issuance of a certificate of occupancy or
491	the issuance of a certificate of substantial completion.
492	(10) Notwithstanding any other provision of law to the
493	contrary, a claimant may not institute an action for the sole
494	purpose of recovery of retainage against the contractor or
495	against the surety issuing a payment or performance bond
496	pursuant to this section until:
497	(a) The public entity has paid out that retainage to the
498	contractor and the time provided under ss. 218.70-218.76 or ss.
499	255.072-255.078 for payment of that retainage to the claimant
500	has expired;
501	(b) The claimant has completed all work required under its
502	contract and 90 days have passed since the owner's receipt of
503	the contractor's last payment request; or
504	(c) The claimant has made the written request to the owner
505	provided in subsection (11) and has not timely received the
506	requested information from the owner.
507	(11) An owner shall furnish in writing to a claimant who
508	has provided labor, services, or materials to a project, within
509	5 business days after receipt of a written request from that
510	claimant, the following information:
511	(a) The dates of all payment requests received by the
512	owner from the contractor.
513	(b) The dates of all payments made by the owner to the
514	contractor.
515	(c) Whether the owner has received the contractor's final
516	payment request and, if so, the date the final payment request
517	was submitted by the contractor to the owner.
518	Section 14. This act shall take effect July 1, 2003.
519
520	================= T I T L E A M E N D M E N T =================
521	Remove the entire title, and insert:
522	A bill to be entitled
523	An act relating to prompt payment for construction
524	services; amending s. 218.70, F.S.; providing a short
525	title; amending s. 218.72, F.S.; redefining terms used in
526	part VII of ch. 218, F.S.; amending s. 218.735, F.S.;
527	revising provisions relating to timely payment for
528	purchases of construction services; revising deadlines for
529	payment; providing procedures for project closeout and
530	payment of retainage; providing requirements for local
531	government construction retainage; providing that ss.
532	218.72-218.76, F.S., apply to the payment of any payment
533	request for retainage; creating s. 255.0705, F.S.;
534	providing a short title; amending s. 255.071, F.S.;
535	revising deadlines for the payment of subcontractors, sub-
536	subcontractors, materialmen, and suppliers on construction
537	contracts for public projects; creating ss. 255.072,
538	255.073, 255.074, 255.075, 255.076, 255.077, 255.078,
539	F.S.; providing definitions; providing for timely payment
540	for purchases of construction services by a public entity;
541	providing procedures for calculating payment due dates;
542	providing procedures for handling improper payment
543	requests; providing for the resolution of disputes;
544	providing for project closeout and payment of retainage;
545	providing for public-construction retainage; providing
546	that ss. 255.072-255.076, F.S., apply to the payment of
547	any payment request for retainage; amending s. 255.05,
548	F.S.; providing requirements for certain notices of
549	nonpayment served by a claimant who is not in privity with
550	the contractor; providing limitations on a claimant's
551	institution of certain actions against a contractor or
552	surety; providing for certain notices to the claimant;
553	providing an effective date.