Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 1350
                        Barcode 903914
                            CHAMBER ACTION
              Senate                               House
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       03/08/2006 09:24 AM         .                    
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11  The Committee on Transportation (Sebesta) recommended the
12  following amendment:
13  
14         Senate Amendment (with title amendment) 
15         On page 1, line 9,
16  
17  insert:  
18         Section 1.  Paragraph (a) of subsection (3) of section
19  337.11, Florida Statutes, is amended to read:
20         337.11  Contracting authority of department; bids;
21  emergency repairs, supplemental agreements, and change orders;
22  combined design and construction contracts; progress payments;
23  records; requirements of vehicle registration.--
24         (3)(a)  On all construction contracts of $500,000
25  $250,000 or less, the department shall advertise for bids in a
26  newspaper having general circulation in the county where the
27  proposed work is located.  Publication shall be at least once
28  a week for no less than 2 consecutive weeks, and the first
29  publication shall be no less than 14 days prior to the date on
30  which bids are to be received.
31         Section 2.  Subsection (1) of section 337.14, Florida
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    Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 1350
                        Barcode 903914
 1  Statutes, is amended to read:
 2         337.14  Application for qualification; certificate of
 3  qualification; restrictions; request for hearing.--
 4         (1)  Any person desiring to bid for the performance of
 5  any construction contract in excess of $250,000 which the
 6  department proposes to let must first be certified by the
 7  department as qualified pursuant to this section and rules of
 8  the department.  The rules of the department shall address the
 9  qualification of persons to bid on construction contracts in
10  excess of $250,000 and shall include requirements with respect
11  to the equipment, past record, experience, financial
12  resources, and organizational personnel of the applicant
13  necessary to perform the specific class of work for which the
14  person seeks certification. The department is authorized to
15  limit the dollar amount of any contract upon which a person is
16  qualified to bid or the aggregate total dollar volume of
17  contracts such person is allowed to have under contract at any
18  one time.  Each applicant seeking qualification to bid on
19  construction contracts in excess of $250,000 shall furnish the
20  department a statement under oath, on such forms as the
21  department may prescribe, setting forth detailed information
22  as required on the application.  Each application for
23  certification shall be accompanied by the latest annual
24  financial statement of the applicant completed within the last
25  12 months. If the annual financial statement shows the
26  financial condition of the applicant more than 4 months prior
27  to the date on which the application is received by the
28  department, then an interim financial statement must also be
29  submitted.  The interim financial statement must cover the
30  period from the end date of the annual statement and must show
31  the financial condition of the applicant no more than 4 months
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    Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 1350
                        Barcode 903914
 1  prior to the date on which the application is received by the
 2  department.  Each required annual or interim financial
 3  statement must be audited and accompanied by the opinion of a
 4  certified public accountant or a public accountant approved by
 5  the department.  The information required by this subsection
 6  is confidential and exempt from the provisions of s.
 7  119.07(1).  The department shall act upon the application for
 8  qualification within 30 days after the department determines
 9  that the application is complete. The department may waive the
10  requirements of this subsection for projects having a contract
11  price of $500,000 or less if the department determines that
12  the project is of a noncritical nature and noncompliance with
13  the subsection will not endanger public health, safety, or
14  property.
15         Section 3.  Paragraph (a) of subsection (1) of section
16  337.18, Florida Statutes, is amended to read:
17         337.18  Surety bonds for construction or maintenance
18  contracts; requirement with respect to contract award; bond
19  requirements; defaults; damage assessments.--
20         (1)(a)  A surety bond shall be required of the
21  successful bidder in an amount equal to the awarded contract
22  price. However, the department may choose, in its discretion
23  and applicable only to multiyear maintenance contracts, to
24  allow for incremental annual contract bonds that cumulatively
25  total the full, awarded multiyear contract price. For a
26  project for which the contract price is $250,000 $150,000 or
27  less, the department may waive the requirement for all or a
28  portion of a surety bond if it determines the project is of a
29  noncritical nature and nonperformance will not endanger public
30  health, safety, or property. If the secretary or his designee
31  determines that it is in the best interests of the department
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    Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 1350
                        Barcode 903914
 1  to do so and that a reduced bonding requirement for a project
 2  will not endanger public health, safety, or property, the
 3  department may waive the requirement of a surety bond in an
 4  amount equal to the awarded contract price for a project
 5  having a contract price of $250 million or more, and, in its
 6  place, may set a surety bond amount that is a portion of the
 7  total contract price and provide an alternate means of
 8  security for the balance of the contract amount which is not
 9  covered by the surety bond or provide for incremental surety
10  bonding and provide an alternate means of security for the
11  balance of the contract amount which is not covered by the
12  surety bond. Such alternative means of security may include
13  letters of credit, United States bonds and notes, parent
14  company guaranties, and cash collateral. The department may
15  require alternate means of security if a surety bond is
16  waived. The surety on such bond shall be a surety company
17  authorized to do business in the state. All bonds shall be
18  payable to the department and conditioned for the prompt,
19  faithful, and efficient performance of the contract according
20  to plans and specifications and within the time period
21  specified, and for the prompt payment of all persons defined
22  in s. 713.01 furnishing labor, material, equipment, and
23  supplies for work provided in the contract; however, whenever
24  an improvement, demolition, or removal contract price is
25  $25,000 or less, the security may, in the discretion of the
26  bidder, be in the form of a cashier's check, bank money order
27  of any state or national bank, certified check, or postal
28  money order. The department shall adopt rules to implement
29  this subsection. Such rules shall include provisions under
30  which the department shall refuse to accept bonds on contracts
31  when a surety wrongfully fails or refuses to settle or provide
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    Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 1350
                        Barcode 903914
 1  a defense for claims or actions arising under a contract for
 2  which the surety previously furnished a bond.
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 4  (Redesignate subsequent sections.)
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 7  ================ T I T L E   A M E N D M E N T ===============
 8  And the title is amended as follows:
 9         On page 1, line 3, after the first semicolon,
10  
11  insert:
12         amending s. 337.11, F.S.; amending notification
13         requirements for construction contracts;
14         amending s. 337.14, F.S.; providing exemptions
15         from prequalification requirements for certain
16         projects; amending s. 337.18, F.S.; revising
17         requirements for surety bonds for certain
18         construction projects;
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