| 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 |
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| 18 | Be It Enacted by the Legislature of the State of Florida: |
| 19 |
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| 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. |