Senate Bill sb1332

    Florida Senate - 2003                                  SB 1332

    By Senator Miller





    18-952A-03                                          See HB 259

  1                      A bill to be entitled

  2         An act relating to contractor bonds for public

  3         building construction; amending s. 255.05,

  4         F.S.; revising contract amount thresholds for

  5         payment and performance bonds; providing an

  6         effective date.

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  8  Be It Enacted by the Legislature of the State of Florida:

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10         Section 1.  Paragraph (a) of subsection (1) of section

11  255.05, Florida Statutes, is amended to read:

12         255.05  Bond of contractor constructing public

13  buildings; form; action by materialmen.--

14         (1)(a)  Any person entering into a formal contract with

15  the state or any county, city, or political subdivision

16  thereof, or other public authority, for the construction of a

17  public building, for the prosecution and completion of a

18  public work, or for repairs upon a public building or public

19  work shall be required, before commencing the work or before

20  recommencing the work after a default or abandonment, to

21  execute, deliver to the public owner, and record in the public

22  records of the county where the improvement is located, a

23  payment and performance bond with a surety insurer authorized

24  to do business in this state as surety. A public entity may

25  not require a contractor to secure a surety bond under this

26  section from a specific agent or bonding company. The bond

27  must state on its front page: the name, principal business

28  address, and phone number of the contractor, the surety, the

29  owner of the property being improved, and, if different from

30  the owner, the contracting public entity; the contract number

31  assigned by the contracting public entity; and a description

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2003                                  SB 1332
    18-952A-03                                          See HB 259




  1  of the project sufficient to identify it, such as a legal

  2  description or the street address of the property being

  3  improved, and a general description of the improvement. Such

  4  bond shall be conditioned upon the contractor's performance of

  5  the construction work in the time and manner prescribed in the

  6  contract and promptly making payments to all persons defined

  7  in s. 713.01 who furnish labor, services, or materials for the

  8  prosecution of the work provided for in the contract. Any

  9  claimant may apply to the governmental entity having charge of

10  the work for copies of the contract and bond and shall

11  thereupon be furnished with a certified copy of the contract

12  and bond. The claimant shall have a right of action against

13  the contractor and surety for the amount due him or her,

14  including unpaid finance charges due under the claimant's

15  contract. Such action shall not involve the public authority

16  in any expense. When such work is done for the state and the

17  contract is for $250,000 $100,000 or less, no payment and

18  performance bond shall be required. At the discretion of the

19  official or board awarding such contract when such work is

20  done for any county, city, political subdivision, or public

21  authority, any person entering into such a contract which is

22  for $500,000 $200,000 or less may be exempted from executing

23  the payment and performance bond. When such work is done for

24  the state, the Secretary of the Department of Management

25  Services may delegate to state agencies the authority to

26  exempt any person entering into such a contract amounting to

27  more than $250,000 $100,000 but less than $500,000 $200,000

28  from executing the payment and performance bond. In the event

29  such exemption is granted, the officer or officials shall not

30  be personally liable to persons suffering loss because of

31  granting such exemption. The Department of Management Services

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    Florida Senate - 2003                                  SB 1332
    18-952A-03                                          See HB 259




  1  shall maintain information on the number of requests by state

  2  agencies for delegation of authority to waive the bond

  3  requirements by agency and project number and whether any

  4  request for delegation was denied and the justification for

  5  the denial.

  6         Section 2.  This act shall take effect July 1, 2003.

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CODING: Words stricken are deletions; words underlined are additions.