HB 0785 2004
   
1 A bill to be entitled
2          An act relating to Hillsborough County; authorizing the
3    waiver of payment and performance bonds for the
4    construction of a public building, for the prosecution and
5    completion of a public work, or for repairs upon a public
6    building or public work when the cost of the project is
7    $500,000 or less and the contract for the construction,
8    completion, or repair is awarded pursuant to an economic
9    development program established to encourage local small
10    businesses to participate in county procurement programs;
11    providing for a committee to determine suitable projects;
12    providing requirements for the economic development
13    program for local small businesses; providing procedures
14    for waiver of the payment and performance bond; requiring
15    a report; providing for repeal of the act; providing an
16    effective date.
17         
18          Be It Enacted by the Legislature of the State of Florida:
19         
20          Section 1. Notwithstanding section 255.05, Florida
21    Statutes, Hillsborough County may waive payment and performance
22    bonds on construction contracts for the construction of a public
23    building, for the prosecution and completion of a public work,
24    or for repairs on a public building or public work which has a
25    cost of $500,000 or less and the project is awarded pursuant to
26    a race and gender neutral economic development program for the
27    encouragement of local small businesses which has been adopted
28    by the governing body of the county pursuant to a resolution or
29    ordinance.
30          Section 2. The county’s adopted criteria for participation
31    in the economic development program for local small businesses
32    requires that a participant:
33          (1) Be an independent business.
34          (2) Be principally domiciled in Hillsborough County unless
35    a reciprocal program is established with another jurisdiction
36    pursuant to an interlocal agreement.
37          (3) Have been in business for at least 1 year.
38          (4) Employ 25 or fewer full-time employees.
39          (5) Have gross annual sales averaging over the previous 3-
40    year period of $2 million or less, with regard to any
41    construction element of the program.
42          (6) Participate in an educational curriculum which will
43    assist the small business in becoming eligible for bonding.
44          Section 3. The county’s adopted procedures for waiving
45    payment and performance bonds on projects with values not less
46    than $200,000 and not exceeding $500,000 shall provide that
47    payment and performance bonds may only be waived on projects
48    that have been set aside to be competitively bid on by
49    participants in an economic development program for local small
50    businesses. A committee of county staff from affected
51    departments shall determine if specific construction projects
52    are suitable to be set aside for bidding by registered local
53    small businesses and waiver of the payment and performance bond.
54    The committee’s decision to waive the payment and performance
55    bond shall be in writing and shall include a determination that
56    there exists sufficient competition so that the county receives
57    a fair price and that the project lacks any unusual risk to the
58    county.
59          Section 4. For any contract for which a payment and
60    performance bond has been waived pursuant to the authority in
61    section 1 of this act, the county shall pay all persons defined
62    in section 713.01, Florida Statutes, who furnish labor,
63    services, or materials for the prosecution of the work provided
64    for in the contract to the same extent and upon the same
65    conditions that a surety on the payment bond under section
66    255.05, Florida Statutes, would have been obligated to pay such
67    persons if the payment and performance bond has not been waived.
68    The county shall record notice of this obligation in the manner
69    and location that surety bonds are recorded. The notice shall
70    include the information describing the contract which section
71    255.05(1), Florida Statutes, requires be stated on the front
72    page of the bond. Section 255.05(9), Florida Statutes, shall
73    apply to any contract on which performance or payment bonds are
74    waived pursuant to this act, and any claim to payment under this
75    section shall be treated as a contract claim pursuant to section
76    255.05(9), Florida Statutes.
77          Section 5. A small business that has been the successful
78    bidder on three projects where the payment and performance bond
79    were waived pursuant to section 1 shall be ineligible to bid on
80    additional projects where the payment and performance bond has
81    been waived on projects with an estimated value of not less than
82    $200,000 and not exceeding $500,000. The local small business
83    may continue to participate in other elements of the economic
84    development program for local small business so long as
85    otherwise eligible.
86          Section 6. The county shall prepare a report on the
87    activities every 2 years which shall be provided to the county’s
88    legislative delegation. The initial report shall be due December
89    31, 2006.
90          Section 7. This act shall stand repealed on September 30,
91    2009.
92          Section 8. This act shall take effect on October 1, 2004.