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3 | 3 | | HB 611 2023 |
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7 | 7 | | CODING: Words stricken are deletions; words underlined are additions. |
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8 | 8 | | hb0611-00 |
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9 | 9 | | Page 1 of 4 |
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10 | 10 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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13 | 13 | | |
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14 | 14 | | A bill to be entitled 1 |
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15 | 15 | | An act relating to bonds of contractors constructing 2 |
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16 | 16 | | public buildings; amending s. 255.05, F.S.; exempting 3 |
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17 | 17 | | certain contractors from executing payment and 4 |
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18 | 18 | | performance bonds when certain criteria are met; 5 |
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19 | 19 | | providing an effective date. 6 |
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20 | 20 | | 7 |
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21 | 21 | | Be It Enacted by the Legislature of the State of Florida: 8 |
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22 | 22 | | 9 |
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23 | 23 | | Section 1. Paragraph (d) of subsection (1) of section 10 |
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24 | 24 | | 255.05, Florida Statutes, is amended to read: 11 |
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25 | 25 | | 255.05 Bond of contractor constructing public buildings; 12 |
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26 | 26 | | form; action by claimants. — 13 |
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27 | 27 | | (1) A person entering into a formal contract with the 14 |
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28 | 28 | | state or any county, city, or political subdivision thereof, or 15 |
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29 | 29 | | other public authority or private entity, for the construct ion 16 |
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30 | 30 | | of a public building, for the prosecution and completion of a 17 |
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31 | 31 | | public work, or for repairs upon a public building or public 18 |
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32 | 32 | | work shall be required, before commencing the work or before 19 |
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33 | 33 | | recommencing the work after a default or abandonment, to execute 20 |
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34 | 34 | | and record in the public records of the county where the 21 |
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35 | 35 | | improvement is located, a payment and performance bond with a 22 |
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36 | 36 | | surety insurer authorized to do business in this state as 23 |
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37 | 37 | | surety. A public entity may not require a contractor to secure a 24 |
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38 | 38 | | surety bond under this section from a specific agent or bonding 25 |
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40 | 40 | | HB 611 2023 |
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44 | 44 | | CODING: Words stricken are deletions; words underlined are additions. |
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46 | 46 | | Page 2 of 4 |
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47 | 47 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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51 | 51 | | company. 26 |
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52 | 52 | | (d)1. When the work is done for the state and the contract 27 |
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53 | 53 | | is for $100,000 or less, no payment and performance bond shall 28 |
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54 | 54 | | be required. 29 |
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55 | 55 | | 2. When the work is done for the state, the Secretary of 30 |
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56 | 56 | | Management Services may delegate to state agencies the authority 31 |
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57 | 57 | | to exempt any person entering into such a contract amounting to 32 |
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58 | 58 | | more than $100,000 but less than $200,000 from executing the 33 |
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59 | 59 | | payment and performance bond. If an exemption is granted, the 34 |
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60 | 60 | | officer or official is not personally liable to persons 35 |
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61 | 61 | | suffering loss because of granting such exemption. The 36 |
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62 | 62 | | Department of Management Services shall maintain information on 37 |
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63 | 63 | | the number of requests by state agencies for delegation of 38 |
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64 | 64 | | authority to waive the bond r equirements by agency and project 39 |
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65 | 65 | | number and whether any request for delegation was denied and the 40 |
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66 | 66 | | justification for the denial. 41 |
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67 | 67 | | 3.a. When the work is done for any county, city, or 42 |
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68 | 68 | | political subdivision thereof, or other public authority or 43 |
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69 | 69 | | private entity, and the contract is for $200,000 or less, at the 44 |
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70 | 70 | | discretion of the official or board awarding such contract when 45 |
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71 | 71 | | such work is done for any county, city, political subdivision, 46 |
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72 | 72 | | or public authority, a person entering into such a contract that 47 |
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73 | 73 | | is for $200,000 or less may be exempted from executing the 48 |
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74 | 74 | | payment and performance bond. 49 |
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75 | 75 | | b. Notwithstanding sub -subparagraph a., a person entering 50 |
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77 | 77 | | HB 611 2023 |
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80 | 80 | | |
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81 | 81 | | CODING: Words stricken are deletions; words underlined are additions. |
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83 | 83 | | Page 3 of 4 |
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84 | 84 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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88 | 88 | | into a contract of any amount may be exempted from executing the 51 |
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89 | 89 | | payment and performance bond at the discretion of the official 52 |
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90 | 90 | | or board awarding such contract if the following criteria are 53 |
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91 | 91 | | met: 54 |
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92 | 92 | | (I) The person provides documentation from the Department 55 |
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93 | 93 | | of Business and Professional Regulation that he or she has 56 |
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94 | 94 | | maintained a minimum of 10 consecutive years of active busin ess 57 |
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95 | 95 | | operations within this state. 58 |
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96 | 96 | | (II) The person has a minimum of 10 years of business 59 |
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97 | 97 | | experience in his or her industry. 60 |
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98 | 98 | | (III) The person employs a sufficient number of staff who 61 |
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99 | 99 | | have the skill and knowledge to perform the work. 62 |
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100 | 100 | | (IV) The person is licensed and properly insured. 63 |
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101 | 101 | | (V) The person is an owner of a small, local business 64 |
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102 | 102 | | entity as certified by any county, city, or political 65 |
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103 | 103 | | subdivision thereof, or other public authority or private 66 |
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104 | 104 | | entity. 67 |
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105 | 105 | | c. When such work is done for the state, the S ecretary of 68 |
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106 | 106 | | Management Services may delegate to state agencies the authority 69 |
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107 | 107 | | to exempt any person entering into such a contract amounting to 70 |
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108 | 108 | | more than $100,000 but less than $200,000 from executing the 71 |
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109 | 109 | | payment and performance bond. If an exemption is grant ed under 72 |
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110 | 110 | | this subparagraph, the officer or official is not personally 73 |
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111 | 111 | | liable to persons suffering loss because of granting such 74 |
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112 | 112 | | exemption. The Department of Management Services shall maintain 75 |
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114 | 114 | | HB 611 2023 |
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118 | 118 | | CODING: Words stricken are deletions; words underlined are additions. |
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120 | 120 | | Page 4 of 4 |
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121 | 121 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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125 | 125 | | information on the number of requests by state agencies for 76 |
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126 | 126 | | delegation of authority to waive the bond requirements by agency 77 |
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127 | 127 | | and project number and whether any request for delegation was 78 |
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128 | 128 | | denied and the justification for the denial. 79 |
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129 | 129 | | Section 2. This act shall take effect July 1, 2023. 80 |
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