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