HB 0785

1
A bill to be entitled
2An act relating to Hillsborough County; authorizing the
3waiver of payment and performance bonds for the
4construction of a public building, for the prosecution and
5completion of a public work, or for repairs upon a public
6building or public work when the cost of the project is
7$500,000 or less and the contract for the construction,
8completion, or repair is awarded pursuant to an economic
9development program established to encourage local small
10businesses to participate in county procurement programs;
11providing for a committee to determine suitable projects;
12providing requirements for the economic development
13program for local small businesses; providing procedures
14for waiver of the payment and performance bond; requiring
15a report; providing for repeal of the act; providing an
16effective date.
17
18Be It Enacted by the Legislature of the State of Florida:
19
20     Section 1.  Notwithstanding section 255.05, Florida
21Statutes, Hillsborough County may waive payment and performance
22bonds on construction contracts for the construction of a public
23building, for the prosecution and completion of a public work,
24or for repairs on a public building or public work which has a
25cost of $500,000 or less and the project is awarded pursuant to
26a race and gender neutral economic development program for the
27encouragement of local small businesses which has been adopted
28by the governing body of the county pursuant to a resolution or
29ordinance.
30     Section 2.  The county's adopted criteria for participation
31in the economic development program for local small businesses
32requires that a participant:
33     (1)  Be an independent business.
34     (2)  Be principally domiciled in Hillsborough County unless
35a reciprocal program is established with another jurisdiction
36pursuant 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-
40year period of $2 million or less, with regard to any
41construction element of the program.
42     (6)  Participate in an educational curriculum which will
43assist the small business in becoming eligible for bonding.
44     Section 3.  The county's adopted procedures for waiving
45payment and performance bonds on projects with values not less
46than $200,000 and not exceeding $500,000 shall provide that
47payment and performance bonds may only be waived on projects
48that have been set aside to be competitively bid on by
49participants in an economic development program for local small
50businesses. A committee of county staff from affected
51departments shall determine if specific construction projects
52are suitable to be set aside for bidding by registered local
53small businesses and waiver of the payment and performance bond.
54The committee's decision to waive the payment and performance
55bond shall be in writing and shall include a determination that
56there exists sufficient competition so that the county receives
57a fair price and that the project lacks any unusual risk to the
58county.
59     Section 4.  For any contract for which a payment and
60performance bond has been waived pursuant to the authority in
61section 1 of this act, the county shall pay all persons defined
62in section 713.01, Florida Statutes, who furnish labor,
63services, or materials for the prosecution of the work provided
64for in the contract to the same extent and upon the same
65conditions that a surety on the payment bond under section
66255.05, Florida Statutes, would have been obligated to pay such
67persons if the payment and performance bond has not been waived.
68 The county shall record notice of this obligation in the manner
69and location that surety bonds are recorded.  The notice shall
70include the information describing the contract which section
71255.05(1), Florida Statutes, requires be stated on the front
72page of the bond.  Section 255.05(9), Florida Statutes, shall
73apply to any contract on which performance or payment bonds are
74waived pursuant to this act, and any claim to payment under this
75section shall be treated as a contract claim pursuant to section
76255.05(9), Florida Statutes.
77     Section 5.  A small business that has been the successful
78bidder on three projects where the payment and performance bond
79were waived pursuant to section 1 shall be ineligible to bid on
80additional projects where the payment and performance bond has
81been waived on projects with an estimated value of not less than
82$200,000 and not exceeding $500,000.  The local small business
83may continue to participate in other elements of the economic
84development program for local small business so long as
85otherwise eligible.
86     Section 6.  The county shall prepare a report on the
87activities every 2 years which shall be provided to the county's
88county's legislative delegation. The initial report shall be
89due December 31, 2006.
90     Section 7.  This act shall stand repealed on September 30,
912009.
92     Section 8.  This act shall take effect on October 1, 2004.


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