Missouri 2022 Regular Session

Missouri Senate Bill SB758 Latest Draft

Bill / Enrolled Version Filed 05/13/2022

                             
EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted 
and is intended to be omitted in the law. 
SECOND REGULAR SESSION 
[TRULY AGREED TO AND FINALLY PASSED ] 
SENATE SUBSTITUTE NO. 3 FOR 
SENATE COMMITTEE SUBSTITUTE FOR 
SENATE BILL NO. 758 
101ST GENERAL ASSEMBLY 
2022 
3896S.10T   
AN ACT 
To repeal sections 8.250, 8.260, 8.420, 34.055, 34.057, 34.058, 34.100, 34.203, 34.206, 34.209, 
34.212, 34.217, and 34.218, RSMo, and to enact in lieu thereof fifteen new sections 
relating to procedures for certain public projects for facilities. 
 
Be it enacted by the General Assembly of the State of Missouri, as follows: 
     Section A.  Sections 8.250, 8.260, 8.420, 34.055, 34.057, 1 
34.058, 34.100, 34.203, 34.206, 34.209, 34.212, 34.217, and 2 
34.218, RSMo, are repealed and fifteen new sections enacted in 3 
lieu thereof, to be known as sections 8.250, 8.260, 8.420, 4 
8.690, 8.960, 8.962, 8.964, 8.966, 8.968, 8.970, 8.972, 8.974, 5 
34.055, 34.100, and 67.5065, to read as follows:6 
     8.250.  1.  "Project" for the purposes of this chapter 1 
means the labor or material necessary for the construction, 2 
renovation, or repair of improvements to real property so 3 
that the work, when complete, shall be ready for service for 4 
its intended purpose and shall require no other work to be a 5 
completed system or component. 6 
     2.  All contracts for projects, the cost of which 7 
exceeds twenty-five thousand dollars, entered into by any 8 
city containing five hundred thousand inhabitants or more 9 
shall be let to the lowest, responsive, responsible bidder 10 
or bidders after [notice and] publication of an  11   SS#3 SCS SB 758 	2 
advertisement for [five days in a daily newspaper in the 12 
county where the work is located, or at least twice over ] a  13 
period of ten days or more in a newspaper in the county 14 
where the work is located, [and] in two daily newspapers in 15 
the state which do not have less than fifty tho usand daily  16 
circulation, and [by such other means as are determined to 17 
be most likely to reach potential bidders ] on the website of  18 
the city or through an electronic procurement system . 19 
     3.  All contracts for projects, the cost of which 20 
exceeds one hundred thousand dollars, entered into by an 21 
officer or agency of this state shall be let to the lowest, 22 
responsive, responsible bidder or bidders based on 23 
preestablished criteria after [notice and] publication of an  24 
advertisement for [five days in a daily newspaper in the 25 
county where the work is located, or at least twice over ] a  26 
period of ten days or more in a newspaper in the county 27 
where the work is located [and], in one daily newspaper in 28 
the state which does not have less than fifty thousand daily  29 
circulation, and [by such other means as determined to be 30 
most likely to reach potential bidders ] on the website of  31 
the officer or agency or through an electronic procurement 32 
system.  For all contracts for projects between twenty -five  33 
thousand dollars and one hundred thousand dollars, a minimum 34 
of three contractors shall be solicited with the award being 35 
made to the lowest responsive, responsible bidder based on 36 
preestablished criteria. 37 
     4.  The number of such public bids shall not be 38 
restricted or curtailed, but shall be open to all persons 39 
complying with the terms upon which the bids are requested 40 
or solicited unless debarred for cause.  No contract shall  41 
be awarded when the amount appropriated for same is not 42 
sufficient to complete the work ready for service. 43   SS#3 SCS SB 758 	3 
     5.  Dividing a project into component labor or material 44 
allocations for the purpose of avoiding bidding or 45 
advertising provisions required by this section is 46 
specifically prohibited. 47 
     8.260.  All appropriations made by the general assembly 1 
amounting to one hundred thousand dollars or more for the 2 
construction, renovation, or repair of facilities shall be 3 
expended in the following manner: 4 
     (1)  The agency requesting payment shall provide the 5 
commissioner of administration with satisfactory evidence 6 
that a bona fide contract, procured in accordance with all 7 
applicable procedures, exists for the work for which payment 8 
is requested; 9 
     (2)  All requests for payment shall be approved by the 10 
architect or engineer registered to practice in the state of 11 
Missouri who designed the project or who has been assigned 12 
to oversee it; 13 
     (3)  In order to guarantee completion of the contract, 14 
the agency or officer shall retain a portion of the contract 15 
value in accordance with the provisions of section [34.057]  16 
8.960; 17 
     (4)  A contractor may be paid for materials delivered 18 
to the site or to a storage facility approved by the 19 
director of the division of facilities management, design 20 
and construction as having adequate safeguards against loss, 21 
theft or conversion. 22 
In no case shall the amount contracted for exceed the amount  23 
appropriated by the general assembly for the purpose. 24 
     8.420.  1.  Bonds issued under and pursuant to the 1 
provisions of sections 8.370 to 8.450 shall be of such 2 
denomination or denominations, shall bear such rate or rates 3   SS#3 SCS SB 758 	4 
of interest not to exceed fifteen percent per annum, and 4 
shall mature at such time or times within forty years from 5 
the date thereof, as the board determines.  The bonds may be  6 
either serial bonds or term bonds. 7 
     2.  Serial bonds may be issued with or without the 8 
reservation of the right to call them for payment and 9 
redemption in advance of their maturity, upon the giving of 10 
such notice, and with or without a covenant requiring the 11 
payment of a premium in the event of such payment and 12 
redemption prior to maturity, as the board determines. 13 
     3.  Term bonds shall contain a reservation of the right 14 
to call them for payment and red emption prior to maturity at 15 
such time or times and upon the giving of such notice, and 16 
upon the payment of such premium, if any, as the board 17 
determines. 18 
     4.  The bonds, when issued, shall be sold at public 19 
sale for the best price obtainable after giving such  20 
reasonable notice of such sale as may be determined by the 21 
board, but in no event shall such bonds be sold for less 22 
than ninety-eight percent of the par value thereof, and 23 
accrued interest.  Any such bonds may be sold to the United 24 
States of America or to any agency or instrumentality 25 
thereof, at a price not less than par and accrued interest, 26 
without public sale and without the giving of notice as 27 
herein provided. 28 
     5.  The bonds, when issued and sold, shall be 29 
negotiable instrumen ts within the meaning of the law 30 
merchant and the negotiable instruments law, and the 31 
interest thereon shall be exempt from income taxes under the 32 
laws of the state of Missouri. 33 
     6.  The board shall not issue revenue bonds pursuant to 34 
the provisions of sections 8.370 to 8.450 for one or more 35   SS#3 SCS SB 758 	5 
projects, as defined in section 8.370, in excess of a total 36 
par value of one billion one hundred seventy -five million  37 
dollars. 38 
     7.  Any bonds which may be issued pursuant to the 39 
provisions of sections 8. 370 to 8.450 shall be issued only 40 
for projects which have been approved by a majority of the 41 
house members and a majority of the senate members of the 42 
committee on legislative research of the general assembly, 43 
and the approval by the committee on legis lative research  44 
required by the provisions of section 8.380 shall be given 45 
only in accordance with this provision.  For the purposes of 46 
approval of a project, the total amount of bonds issued for 47 
purposes of energy retrofitting in state -owned facilities  48 
shall be treated as a single project. 49 
     [8.  Any bonds which may be issued due to the increase 50 
of the cap amount in subsection 6 of this section occurring 51 
on August 28, 2014, shall not be issued for construction of 52 
new buildings and shall only be used for repair or 53 
renovation of existing buildings and facilities, except that 54 
bonds may be issued for the construction of a new mental 55 
health facility in any county of the first classification 56 
with more than forty thousand but fewer than fifty thousa nd  57 
inhabitants and with a home rule city with more than twelve 58 
thousand one hundred but fewer than twelve thousand two 59 
hundred inhabitants as the county seat. ] 60 
     8.690.  1.  The office of administration shall have the 1 
authority to utilize: 2 
     (1)  The construction manager -at-risk delivery method, 3 
as provided for in section 67.5050; and 4 
     (2)  The design-build delivery method, as provided for 5 
in section 67.5060, only as follows: 6   SS#3 SCS SB 758 	6 
     (a)  For noncivil works projects, as that term is used  7 
in section 67.5060, in excess of seven million dollars; and 8 
     (b)  No more than five noncivil works projects, as that 9 
term is used in section 67.5060, may be contracted for in 10 
any fiscal year that are less than seven million dollars. 11 
     2.  The office of administration shall not be subject 12 
to subsection 15 of section 67.5050 and subsection 22 of 13 
section 67.5060 in executing contracts pursuant to this 14 
section. 15 
     3.  The office of administration shall not be subject 16 
to subsection 4 of s ection 67.5060.  The office of  17 
administration shall publish its advertisement for proposals 18 
in the publications; and on the website of the officer or 19 
agency or through an electronic procurement system as set 20 
forth in subsection 3 of section 8.250.  The selection and  21 
award shall follow sections 67.5050 and 67.5060, as 22 
applicable. 23 
     [34.057.] 8.960.  1.  Unless contrary to any federal 1 
funding requirements or unless funds from a state grant are 2 
not timely received by the contracting pu blic municipality  3 
but notwithstanding any other law to the contrary, all 4 
public works contracts made and awarded by the appropriate 5 
officer, board or agency of the state or of a political 6 
subdivision of the state or of any district therein, 7 
including any municipality, county and any board referred to 8 
as the public owner, for construction, reconstruction or 9 
alteration of any public works project, shall provide for 10 
prompt payment by the public owner to the contractor, and 11 
any professional engineer, a rchitect, landscape architect, 12 
or land surveyor, as well as prompt payment by the 13 
contractor to the subcontractor and material supplier in 14 
accordance with the following: 15   SS#3 SCS SB 758 	7 
     (1)  A public owner shall make progress payments to the 16 
contractor and any pr ofessional engineer, architect, 17 
landscape architect, or land surveyor on at least a monthly 18 
basis as the work progresses, or, on a lump sum basis 19 
according to the terms of the lump sum contract.  Except in  20 
the case of lump sum contracts, payments shall be based upon  21 
estimates prepared at least monthly of work performed and 22 
material delivered, as determined by the project architect 23 
or engineer.  Retainage withheld on any construction 24 
contract or subcontract for public works projects shall not 25 
exceed five percent of the value of the contract or 26 
subcontract.  If the contractor is not required to obtain a 27 
bond under section 107.170 because the cost of the public 28 
works contract is not estimated to exceed fifty thousand 29 
dollars, the public owner may w ithhold retainage on the 30 
public works project in an amount not to exceed ten percent 31 
of the value of the contract or subcontract.  The public  32 
owner shall pay the contractor the amount due, less a 33 
retainage, within thirty days following the latter of th e  34 
following: 35 
     (a)  The date of delivery of materials or construction 36 
services purchased; 37 
     (b)  The date, as designated by the public owner, upon 38 
which the invoice is duly delivered to the person or place 39 
designated by the public owner; or 40 
     (c)  In those instances in which the contractor 41 
approves the public owner's estimate, the date upon which 42 
such notice of approval is duly delivered to the person or 43 
place designated by the public owner; 44 
     (2)  Payments shall be considered received wi thin the  45 
context of this section when they are duly posted with the 46 
United States Postal Service or other agreed upon delivery 47   SS#3 SCS SB 758 	8 
service or when they are hand -delivered to an authorized 48 
person or place as agreed to by the contracting parties; 49 
     (3)  If, in the discretion of the owner and the project 50 
architect or engineer and the contractor, it is determined 51 
that a subcontractor's performance has been completed and 52 
the subcontractor can be released prior to substantial 53 
completion of the public works contract without risk to the 54 
public owner, the contractor shall request such adjustment 55 
in retainage, if any, from the public owner as necessary to 56 
enable the contractor to pay the subcontractor in full.  The  57 
public owner may reduce or eliminate retai nage on any  58 
contract payment if, in the public owner's opinion, the work 59 
is proceeding satisfactorily.  If retainage is released and 60 
there are any remaining minor items to be completed, an 61 
amount equal to one hundred fifty percent of the value of 62 
each item as determined by the public owner's duly 63 
authorized representatives shall be withheld until such item 64 
or items are completed; 65 
     (4)  The public owner shall pay at least ninety -eight  66 
percent of the retainage, less any offsets or deductions 67 
authorized in the contract or otherwise authorized by law, 68 
to the contractor.  The contractor shall pay the 69 
subcontractor or supplier after substantial completion of 70 
the contract work and acceptance by the public owner's 71 
authorized contract representative, or as may otherwise be 72 
provided by the contract specifications for state highway, 73 
road or bridge projects administered by the state highways 74 
and transportation commission.  Such payment shall be made 75 
within thirty days after acceptance, and the invoic e and all  76 
other appropriate documentation and certifications in 77 
complete and acceptable form are provided, as may be 78 
required by the contract documents.  If the public owner or 79   SS#3 SCS SB 758 	9 
the owner's representative determines the work is not 80 
substantially comple ted and accepted, then the owner or the 81 
owner's representative shall provide a written explanation 82 
of why the work is not considered substantially completed 83 
and accepted within fourteen calendar days to the 84 
contractor, who shall then provide such notic e to the  85 
subcontractor or suppliers responsible for such work.  If  86 
such written explanation is not given by the public body, 87 
the public body shall pay at least ninety -eight percent of  88 
the retainage within thirty calendar days.  If at that time  89 
there are any remaining minor items to be completed, an 90 
amount equal to one hundred fifty percent of the value of 91 
each item as determined by the public owner's representative 92 
shall be withheld until such items are completed; 93 
     (5)  All estimates or invoices for supplies and  94 
services purchased, approved and processed, or final 95 
payments, shall be paid promptly and shall be subject to 96 
late payment charges provided in this section.  Except as  97 
provided in subsection 4 of this section, if the contractor 98 
has not been paid within thirty days as set forth in 99 
subdivision (1) of subsection 1 of this section, the 100 
contracting agency shall pay the contractor, in addition to 101 
the payment due him, interest at the rate of one and one - 102 
half percent per month calculated from the expiration of the 103 
thirty-day period until fully paid; 104 
     (6)  When a contractor receives any payment, the 105 
contractor shall pay each subcontractor and material 106 
supplier in proportion to the work completed by each 107 
subcontractor and material su pplier his application less any 108 
retention not to exceed five percent.  If the contractor  109 
receives less than the full payment due under the public 110 
construction contract, the contractor shall be obligated to 111   SS#3 SCS SB 758 	10 
disburse on a pro rata basis those funds recei ved, with the  112 
contractor, subcontractors and material suppliers each 113 
receiving a prorated portion based on the amount of 114 
payment.  When, however, the public owner does not release 115 
the full payment due under the contract because there are 116 
specific areas of work or materials he is rejecting or 117 
because he has otherwise determined such areas are not 118 
suitable for payment then those specific subcontractors or 119 
suppliers involved shall not be paid for that portion of the 120 
work rejected or deemed not suitabl e for payment; provided 121 
the public owner or the owner's representative gives a 122 
written explanation to the contractor, subcontractor, or 123 
supplier involved as to why the work or supplies were 124 
rejected or deemed not suitable for payment, and all other 125 
subcontractors and suppliers shall be paid in full; 126 
     (7)  If the contractor, without reasonable cause, fails 127 
to make any payment to his subcontractors and material 128 
suppliers within fifteen days after receipt of payment under 129 
the public construction co ntract, the contractor shall pay 130 
to his subcontractors and material suppliers, in addition to 131 
the payment due them, interest in the amount of one and one - 132 
half percent per month, calculated from the expiration of 133 
the fifteen-day period until fully paid.  This subdivision  134 
shall also apply to any payments made by subcontractors and 135 
material suppliers to their subcontractors and material 136 
suppliers and to all payments made to lower tier 137 
subcontractors and material suppliers throughout the 138 
contracting chain; 139 
     (8)  The public owner shall make final payment of all 140 
moneys owed to the contractor, including any retainage 141 
withheld under subdivision (4) of this subsection, less any 142 
offsets or deductions authorized in the contract or 143   SS#3 SCS SB 758 	11 
otherwise authorized by law, within thirty days of the due 144 
date.  Final payment shall be considered due upon the 145 
earliest of the following events: 146 
     (a)  Completion of the project and filing with the 147 
owner of all required documentation and certifications, in 148 
complete and acceptable form, in accordance with the terms 149 
and conditions of the contract; 150 
     (b)  The project is certified by the architect or 151 
engineer authorized to make such certification on behalf of 152 
the owner as having been completed, including the filing o f  153 
all documentation and certifications required by the 154 
contract, in complete and acceptable form; or 155 
     (c)  The project is certified by the contracting 156 
authority as having been completed, including the filing of 157 
all documentation and certifications required by the  158 
contract, in complete and acceptable form. 159 
     2.  Nothing in this section shall prevent the 160 
contractor or subcontractor, at the time of application or 161 
certification to the public owner or contractor, from 162 
withholding such applications or certifications to the owner 163 
or contractor for payment to the subcontractor or material 164 
supplier.  Amounts intended to be withheld shall not be 165 
included in such applications or certifications to the 166 
public owner or contractor.  Reasons for withholdi ng such  167 
applications or certifications shall include, but not be 168 
limited to, the following:  unsatisfactory job progress; 169 
defective construction work or material not remedied; 170 
disputed work; failure to comply with other material 171 
provisions of the cont ract; third-party claims filed or 172 
reasonable evidence that a claim will be filed; failure of 173 
the subcontractor to make timely payments for labor, 174 
equipment and materials; damage to a contractor or another 175   SS#3 SCS SB 758 	12 
subcontractor or material supplier; reasonable evidence that  176 
the contract cannot be completed for the unpaid balance of 177 
the subcontract sum or a reasonable amount for retention, 178 
not to exceed the initial percentage retained by the owner. 179 
     3.  Should the contractor determine, after application 180 
or certification has been made and after payment has been 181 
received from the public owner, or after payment has been 182 
received by a contractor based upon the public owner's 183 
estimate of materials in place and work performed as 184 
provided by contract, that al l or a portion of the moneys 185 
needs to be withheld from a specific subcontractor or 186 
material supplier for any of the reasons enumerated in this 187 
section, and such moneys are withheld from such 188 
subcontractor or material supplier, then such undistributed 189 
amounts shall be specifically identified in writing and 190 
deducted from the next application or certification made to 191 
the public owner or from the next estimate by the public 192 
owner of payment due the contractor, until a resolution of 193 
the matter has been achieved.  Disputes shall be resolved in 194 
accordance with the terms of the contract documents.  Upon  195 
such resolution the amounts withheld by the contractor from 196 
the subcontractor or material supplier shall be included in 197 
the next application or certific ation made to the public 198 
owner or the next estimate by the public owner and shall be 199 
paid promptly in accordance with the provisions of this 200 
section.  This subsection shall also apply to applications 201 
or certifications made by subcontractors or material  202 
suppliers to the contractor and throughout the various tiers 203 
of the contracting chain. 204 
     4.  The contracts which provide for payments to the 205 
contractor based upon the public owner's estimate of 206 
materials in place and work performed rather than 207   SS#3 SCS SB 758 	13 
applications or certifications submitted by the contractor, 208 
the public owner shall pay the contractor within thirty days 209 
following the date upon which the estimate is required by 210 
contract to be completed by the public owner, the amount due 211 
less a retainage not to exceed five percent.  All such  212 
estimates by the public owner shall be paid promptly and 213 
shall be subject to late payment charges as provided in this 214 
subsection.  After the thirtieth day following the date upon 215 
which the estimate is required by contract to be completed 216 
by the public owner, the contracting agency shall pay the 217 
contractor, in addition to the payment due him, interest at 218 
a rate of one and one -half percent per month calculated from 219 
the expiration of the thirty -day period until fully paid. 220 
     5.  The public owner shall pay or cause to be paid to 221 
any professional engineer, architect, landscape architect, 222 
or land surveyor the amount due within thirty days following 223 
the receipt of an invoice prepared and submitted in 224 
accordance with the contract terms.  In addition to the 225 
payment due, the contracting agency shall pay interest at 226 
the rate of one and one -half percent per month calculated 227 
from the expiration of the thirty -day period until fully 228 
paid. 229 
     6.  Nothing in this section shall prevent the owner 230 
from withholding payment or final payment from the 231 
contractor, or a subcontractor or material supplier.   232 
Reasons for withholding payment or final payment shall 233 
include, but not be limited to, the following:  liquidated  234 
damages; unsatisfactory job progress; defective construction 235 
work or material not remedied; disputed work; failure to 236 
comply with any material provision of the contract; third 237 
party claims filed or reasonable evidence that a claim will 238 
be filed; failure to make timely payments for labor, 239   SS#3 SCS SB 758 	14 
equipment or materials; damage to a contractor, 240 
subcontractor or material supplier; reasonable evidence that 241 
a subcontractor or material supplier cannot be fully 242 
compensated under its contract with the contractor for the  243 
unpaid balance of the contract sum; or citation by the 244 
enforcing authority for acts of the contractor or 245 
subcontractor which do not comply with any material 246 
provision of the contract and which result in a violation of 247 
any federal, state or local l aw, regulation or ordinance 248 
applicable to that project causing additional costs or 249 
damages to the owner. 250 
     7.  Nothing in this section shall be construed to 251 
require direct payment by a public owner to a subcontractor 252 
or supplier, except in the case of the default, as 253 
determined by a court, of the contractor on the contract 254 
with the public owner where no performance or payment bond 255 
is required or where the surety fails to execute its duties, 256 
as determined by a court. 257 
     8.  Notwithstanding any o ther provisions in this 258 
section to the contrary, no late payment interest shall be 259 
due and owing for payments which are withheld in good faith 260 
for reasonable cause pursuant to subsections 2, 5, and 6 of 261 
this section.  If it is determined by a court of competent  262 
jurisdiction that a payment which was withheld pursuant to 263 
subsections 2, 5, and 6 of this section was not withheld in 264 
good faith for reasonable cause, the court may impose 265 
interest at the rate of one and one -half percent per month 266 
calculated from the date of the invoice and may, in its 267 
discretion, award reasonable attorney fees to the prevailing 268 
party.  In any civil action or part of a civil action 269 
brought pursuant to this section, if a court determines 270 
after a hearing for such purpose t hat the cause was  271   SS#3 SCS SB 758 	15 
initiated, or a defense was asserted, or a motion was filed, 272 
or any proceeding therein was done frivolously and in bad 273 
faith, the court shall require the party who initiated such 274 
cause, asserted such defense, filed such motion, or cau sed  275 
such proceeding to be had to pay the other party named in 276 
such action the amount of the costs attributable thereto and 277 
reasonable expenses incurred by such party, including 278 
reasonable attorney fees. 279 
     [34.058.] 8.962.  1.  As used in this section, the term 1 
"public works contract" means a contract of the state, 2 
county, city and other political subdivisions of the state, 3 
except the Missouri transportation department, for the 4 
construction, alteration, repair, or maintenance of any 5 
building, structure, highway, bridge, viaduct, pipeline, 6 
public works, or any other works dealing with construction, 7 
which shall include, but need not be limited to, moving, 8 
demolition, or excavation performed in conjunction with such 9 
work. 10 
     2.  Any clause in a public works contract that purports 11 
to waive, release, or extinguish the rights of a contractor 12 
to recover costs or damages, or obtain an equitable 13 
adjustment, for delays in performing such contract, if such 14 
delay is caused in whole, or in part, by acts or omissions 15 
within the control of the contracting public entity or 16 
persons acting on behalf thereof, is against public policy 17 
and is void and unenforceable. 18 
     3.  Subsection 2 of this section is not intended to 19 
render void any cont ract provision of a public works 20 
contract that: 21 
     (1)  Precludes a contractor from recovering that 22 
portion of delay costs caused by the acts or omissions of 23 
the contractor or its agents; 24   SS#3 SCS SB 758 	16 
     (2)  Requires notice of any delay by the party 25 
responsible for such delay; 26 
     (3)  Provides for reasonable liquidated damages; or 27 
     (4)  Provides for arbitration or any other procedure 28 
designed to settle contract disputes. 29 
     [34.203.] 8.964.  The provisions of sections [34.203 to  1 
34.216] 8.964 to 8.974 shall be known and may be cited as 2 
the "Fairness in Public Construction Act". 3 
     [34.206.] 8.966.  The purpose of sections [34.203 to  1 
34.216] 8.964 to 8.974 is to fulfill the state's proprietary 2 
objectives in maintaining a nd promoting the economical, 3 
nondiscriminatory, and efficient expenditures of public 4 
funds in connection with publicly funded or assisted 5 
construction projects.  Nothing in sections [34.203 to  6 
34.216] 8.964 to 8.974 shall prohibit employers or other 7 
parties covered by the National Labor Relations Act from 8 
entering into agreements or engaging in any other activity 9 
arguably protected by law, nor shall any aspect of sections 10 
[34.203 to 34.216] 8.964 to 8.974 be interpreted in such a 11 
way as to interfere with the labor relations of parties 12 
covered by the National Labor Relations Act. 13 
     [34.209.] 8.968.  1.  The state, any agency of the 1 
state, any political subdivision of the state, or any 2 
instrumentality thereof, when engaged in procu ring or  3 
letting contracts for construction, repair, remodeling, or 4 
demolition of a facility shall ensure that bid 5 
specification, project agreements, and other controlling 6 
documents entered into, required, or subject to approval by 7 
the state, agency, p olitical subdivision, or instrumentality 8 
do not: 9 
     (1)  Require or prohibit bidders, offerors, 10 
contractors, or subcontractors to enter into or adhere to 11   SS#3 SCS SB 758 	17 
agreements with one or more labor organizations on the same 12 
or related projects; or 13 
     (2)  Discriminate against, encourage, or give 14 
preferential treatment to bidders, offerors, contractors, or 15 
subcontractors for: 16 
     (a)  Entering or refusing to enter agreements with one 17 
or more labor organizations on the same or related 18 
construction projects ; or 19 
     (b)  Remaining or refusing to remain signatory with one 20 
or more labor organizations on the same or related 21 
construction projects. 22 
     2.  Nothing in this section shall be construed to 23 
prohibit the state, any agency of the state, any political  24 
subdivision of the state, or any instrumentality thereof 25 
from requiring bidders, offerors, contractors, or 26 
subcontractors, as a condition of receiving work or 27 
submitting a bid, to test its workers and employees for the 28 
presence of illegal drugs. 29 
     [34.212.] 8.970.  1.  The state, any agency of the 1 
state, any political subdivision of the state, or any 2 
instrumentality thereof shall not issue or award grants, tax 3 
abatements, or tax credits or enter into cooperative 4 
agreements for construction projects or for the improvement, 5 
maintenance, or renovation of real property or fixtures, a 6 
condition of which requires that bid specifications, project 7 
agreements, or other controlling documents pertaining to the 8 
grant, tax abatement, t ax credit, or cooperative agreement 9 
contain any of the elements specified in section [34.209]  10 
8.968. 11 
     2.  The state, any agency of the state, any political 12 
subdivision, or any instrumentality thereof shall exercise 13 
such authority as may be required to preclude a grant, tax 14   SS#3 SCS SB 758 	18 
abatement, or tax credit recipient or party to a cooperative 15 
agreement from imposing any of the elements specified in 16 
section [34.209] 8.968 in connection with any grant or 17 
cooperative agreement awarded or entered into.  Nothing in  18 
sections [34.203 to 34.217] 8.964 to 8.974 shall prohibit  19 
contractors or subcontractors from voluntarily entering into 20 
agreements described in section [34.209] 8.968. 21 
     [34.217.] 8.972.  Notwithstanding the provisions of 1 
section 1.140, the provisions of sections 290.095 and 2 
290.250 and sections [34.203 to 34.216] 8.964 to 8.974 shall  3 
not be severable.  In the event a court of competent 4 
jurisdiction rules that any part of this act is 5 
unenforceable, the entire act shall be rende red null and  6 
void. 7 
     [34.218.] 8.974.  1.  Any entity which violates the 1 
provisions of sections [34.203 to 34.217] 8.964 to 8.974  2 
shall be liable to the person affected for such equitable 3 
relief as may be appropriate, including reasona ble  4 
attorney's fees. 5 
     2.  Any entity which violates the provisions of 6 
sections [34.203 to 34.217] 8.964 to 8.974 shall not be  7 
eligible for any state funding or tax credits issued by the 8 
state for two years. 9 
     3.  The prosecuting attorney or circ uit attorney with  10 
jurisdiction over the location where a violation of sections 11 
[34.203 to 34.217] 8.964 to 8.974 occurs, or the attorney 12 
general of this state, shall investigate complaints of 13 
violation of such sections, and use all means at their 14 
command to ensure the effective enforcement of this section. 15 
     34.055.  1.  Except as otherwise provided in section 1 
[34.057] 8.960, all invoices for supplies and services 2 
purchased by the state, duly approved and processed, shall 3   SS#3 SCS SB 758 	19 
be subject to interest charges or late payment charges as 4 
provided in this section. 5 
     2.  After the forty-fifth day following the later of 6 
the date of delivery of the supplies and services or the 7 
date upon which the invoice is duly approved and processed, 8 
interest retroactive to the thirtieth day shall be paid on 9 
any unpaid balance, except balances for services provided by 10 
a gas corporation, electrical corporation, water 11 
corporation, or sewer corporation which has received 12 
authorization from the public ser vice commission to impose 13 
late payment charges on delinquent utility bills, upon 14 
application of the vendor thereof.  The rate of such  15 
interest shall be three percentage points above the average 16 
predominant prime rate quoted by commercial banks to large  17 
businesses, as determined by the Board of Governors of the 18 
Federal Reserve System. 19 
     3.  The state shall be liable for late payment charges 20 
on any delinquent bill for services purchased by the state 21 
from a gas corporation, electrical corporation, w ater  22 
corporation, or sewer corporation which has received 23 
authorization from the public service commission to impose 24 
late payment charges on delinquent utility bills.  The rate  25 
of such late payment charges shall be as established for 26 
each such corporation by order of the public service 27 
commission, but bills rendered to the state shall not be 28 
considered delinquent until thirty days after rendition of 29 
the bill by the corporation. 30 
     4.  Any such interest charges or late payment charges 31 
shall be paid from appropriations which were made for the 32 
fiscal year in which the supplies or services were delivered 33 
to the respective departments purchasing such supplies or 34 
services.  The commissioner of administration shall be 35   SS#3 SCS SB 758 	20 
responsible for the timely imple mentation of this section 36 
and all officers, departments, institutions and agencies of 37 
state government shall fully cooperate with the commissioner 38 
of administration in the implementation of this section.  No  39 
late payment penalty shall be assessed again st, nor payable  40 
by, the state unless pursuant to the provisions of this 41 
section. 42 
     5.  Notwithstanding any other provision of this 43 
section, recipients of funds from the low -income energy  44 
assistance program shall be exempt from interest charges 45 
imposed by such section for the duration of the recipient's 46 
participation in the program. 47 
     34.100.  The commissioner of administration may, when 1 
in the commissioner's best judgment it is in the best 2 
interests of the state, delegate the com missioner's  3 
procurement authority pursuant to this chapter to an 4 
individual department; provided, however, that each instance 5 
of single feasible source purchasing authority in excess of 6 
[five] ten thousand dollars under section 34.044 must be 7 
specifically delegated by the commissioner.  The delegation  8 
may allow departments to negotiate in accordance with 9 
section 34.042 the purchase of services for patients, 10 
residents or clients with funds appropriated for this 11 
purpose.  In accepting this delegated authority the  12 
department acknowledges its ability to, and agrees to, 13 
fulfill all of the requirements of this chapter in making 14 
purchases and entering into contracts and keeping records.   15 
No claim for payment based upon any purchase under this 16 
section shall be certified by the commissioner unless 17 
accompanied by such documentation of compliance with the 18 
provisions of this chapter as the commissioner may require.   19 
Any department that fails to fulfill all such requirements 20   SS#3 SCS SB 758 	21 
may have its delegated author ity rescinded by the 21 
commissioner of administration. 22 
     67.5065.  For purposes of section 67.5050 and section 1 
67.5060, the term "political subdivision" includes any 2 
public institution of higher education. 3 
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