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 | county's legislative delegation. The initial report shall be |
89 | due December 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. |