SECONDREGULARSESSION
HOUSEBILLNO.1724
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEFALKNER.
3752H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections107.170and513.455,RSMo,andtoenactinlieuthereoftwonewsections
relatingtocontractswithpublicentities,withpenaltyprovisions.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections107.170and513.455,RSMo,arerepealedandtwonewsections
2enactedinlieuthereof,tobeknownassections107.170and513.455,toreadasfollows:
107.170.1.Asusedinthissection,thefollowingtermsmean:
2 (1)"Contractor":
3 (a)Apersonorbusinessentitywho:
4 a.Providesorarrangesforconstructionservicesonapublicworksprojectunder
5contracttoapublicentityforagovernmentalpurpose;or
6 b.Contracts,provides,orarrangesforconstructionservicesonapublicworksproject
7foranongovernmentalpurposewhenactingasalessee,agent,designee,orrepresentativeofa
8publicentity;
9 (b)Contractorshallnotinclude:
10 a.Professionalengineers,architectsorlandsurveyorslicensedpursuanttochapter
11327;
12 b.Thosewhoprovideenvironmentalassessmentservices;
13 c.Thosewhodesign,createorotherwiseprovideworksofartunderacity'sformally
14establishedprogramfortheacquisitionandinstallationofworksofartandotheraesthetic
15adornmentstopublicbuildingsandproperty;or
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16 d.Aconstructionmanagernot-at-riskwithinthemeaningofsection8.675,orwho
17doesnototherwiseenterintocontractswithcontractorsforthefurnishingoflabor,materials,
18orservicestothepublicworksproject;
19 (2)"Publicentity",[anyofficial,board,commissionoragencyof]thisstate[or];any
20county,city,town,township,municipality,school[, road] district, orotherpolitical
21subdivisionofthisstate; oranyofficial,board,commission,oragencyofanyofthe
22precedingentities;
23 (3)"Publicofficial",anyofficial,officer,employee,ormemberofagoverning
24bodyorboardofapublicentity,whetherelected,employed,orappointed,andany
25personservinginacapacitythatcould,underapplicablelaworatequity,bepersonally
26liableforthefailuretorequirethefurnishingofapaymentbondunderthissection;
27 (4)"Publicworks",theerection,construction,alteration,repairorimprovementof
28anybuilding,road,street,publicutilityorotherpublicfacilityownedbythepublicentity,
29includingworkfornongovernmentalpurposes.
30 2.Itisherebymadethedutyofallpublicentitiesinthisstate,inmakingcontractsfor
31publicworksexemptfromattachmentandexecutionundersection513.455, thecostof
32whichisestimatedtoexceedfiftythousanddollars,tobeperformedfor:
33 (1)Thepublicentity;or
34 (2)Thepublicentity'slessee,agent,designee,orrepresentativeonworkfor
35nongovernmentalpurposes,
36
37torequireeverycontractorforsuchworktofurnishtothepublicentityabondwithgoodand
38sufficientsureties,inanamountfixedbythepublicentity.Suchbond,amongother
39conditions,shallbeconditionedforthepaymentofanyandallmaterials,incorporated,
40consumedorusedinconnectionwiththeconstructionofsuchwork;allinsurancepremiums,
41bothforcompensation,andforallotherkindsofinsurance,onsaidwork;andforalllabor
42performedinsuchworkwhetherbyasubcontractor,asupplieratanytier,orotherwise.
43Remotesuppliersshallnotbeentitledtorecoveryunderthebondrequiredbythissection,
44unlesssuchsuppliersshallhavegivenwrittennoticetothecontractorthatithasnotbeenpaid
45withinninetydaysofthetimethesupplierlastsuppliedmaterialsonthepublicworksproject.
46Forpurposesofthisprovision,a"remotesupplier"isanymaterialsuppliertoapublicworks
47projecthavingacontractwithasecond,orlower,tiersubcontractor,orwithanothermaterial
48supplierofanytier.
49 3.Allbondsexecutedandfurnishedundertheprovisionsofthissectionshallbe
50deemedtocontaintherequirementsandconditionsashereinsetout,regardlessofwhetherthe
51samebesetforthinsaidbond,orofanytermsorprovisionsofsaidbondtothecontrary
52notwithstanding.
HB1724 2 53 4.Nothinginthissectionshallbeconstruedtorequirea[memberoftheschoolboard
54ofanypublicschooldistrictofthisstate] publicofficialtoindependentlyconfirmthe
55existenceorsolvencyofanybondingcompanyifacontractorrepresentstothe[member]
56publicofficialthatthebondingcompanyissolventandthattherepresentationsmadeinthe
57purportedbondaretrueandcorrect.Thissubsectionshallnotrelievefromanyliabilityany
58[schoolboardmember] publicofficialwhohasanyactualknowledgeoftheinsolvencyof
59anybondingcompany,orany[schoolboardmember] publicofficialwhodoesnotactin
60goodfaithincomplyingwiththeprovisionsofsubsection2ofthissection.
61 5.(1)Nopublicofficialorotherpersonwhowouldotherwisebepersonally
62liableunderapplicablelaworatequitytoacontractor,subcontractor,supplieratany
63tier,orotherwise,byreasonofthefailureofapublicentitytorequireacontractorto
64furnishapaymentbondasrequiredbythissectionshallbesoliableunlessthe
65contractorprovides,priortothetimethecontractisexecuted,tothepresidingofficial
66orofficerandtothesecretary,clerk,orsimilarofficialorofficerofthepublicentitya
67writtennoticeinbold,ten-pointorgreatertypeidentifyingthepersonswhowillhave
68personalliabilityforpaymentandotherwiseprovidingasfollows:
69 NOTICEOFPERSONALLIABILITY
70 Failureofthe(insertthelegalnameofthepublicentity)topay
71 (insertthelegalnameofthecontractor),thecontractor
72 furnishingthisnotice,underthecontractfor(identifythe
73 constructionservicesorpublicworksproject),orthefailureof
74 thecontractortopayanypersonwhosuppliesmaterialsor
75 servicesfortheworkdescribedinthecontract,canresultinthe
76 personalliabilityof(identifyallthepublicofficialsorother
77 personstobeheldliable,bytitleandlegalname)andtheirestate
78 (s)forsuchpaymentifnopaymentbondmeetingthe
79 requirementsofsection107.170,RSMo,hasbeenfurnished.
80 (2)Compliancewiththissubsectionshallbeaconditionprecedenttothe
81personalliabilityofanypublicofficialorotherpersonwithrespecttotheclaimfor
82paymentofsuchoriginalcontractor,anysubcontractororsupplier,oranyotherperson
83underorwithrespecttoacontractforanyworkthatisthesubjectofthissection.
84 (3)Anyoriginalcontractorwhofailstoprovidethewrittennoticesetoutinthis
85subsection,withintenttodefraud,shallbeguiltyofaclassBmisdemeanor.
86 (4)Apublicentitymaydefend,saveharmlessandindemnifyanyofits[officersand
87employees] publicofficials, whether[electiveorappointive] elected,employed,or
88appointed, againstanyclaimordemand,whethergroundlessorotherwisearisingoutof
HB1724 3 89anallegedactoromissionoccurringintheperformanceofadutyunderthissection.The
90provisionsofthissubsectiondonotapplyincaseofmalfeasanceinofficeorwillfulor
91wantonneglectofduty.
92 6.[Nothinginthissectionshallbedeemedtorequireanycontractorwhoprovides
93constructionservicesforapublicworksprojectusedfornongovernmentalpurposesandwho
94contractswithapublicentity'slessee,agent,designee,orrepresentativeonsuchpublicworks
95projectusedfornongovernmentalpurposestofurnishabondwhenthepublicentity'slessee,
96agent,designee,orrepresentativeisrequiredunderthissectiontofurnishabond] Ifconsent
97thatmeetstherequirementsofsubsection2ofsection513.455hasbeenexecutedand
98recordedasthereinrequired,nobondisrequiredtobefurnishedunderthissection.
99 7.Nothinginthissectionshallbedeemedtorequireanypublicentity'slessee,
100agent,designee,orrepresentativethatcontractswithacontractortoprovide
101constructionservicesforapublicworksprojecttobeusedfornongovernmental
102purposestofurnishabondwhenthecontractorisrequiredtofurnishabondunderthis
103sectionorinfactfurnishesacomplyingbond.
104 8.Theprovidingofabondunderthissectionshallprecludethefilingofamechanic's
105lienunderchapter429byanysubcontractororsupplier.Anymechanic'slienfiledin
106violationhereofshallbevoidandunenforceableandshallbesummarilydischargedbya
107judgeofthecountyinwhichthemechanic'slienisfiled.
513.455.1.Allcourthouses,jails,clerks'offices,andotherbuildings[ownedbyany
2countyormunicipality] andimprovements, andthelotsonwhichthey[stand] arelocated,
3andallburialgrounds[,] andotherlands,ownedbythisstate,anypublicbodycorporate
4andpoliticofthisstate,oranycounty,city,town,township,municipality,roaddistrict,
5waterdistrict,sewerdistrict,firedistrict,librarydistrict,hospitaldistrict,school
6district,orotherpoliticalsubdivisionofthisstate,shallbeexemptfromattachmentand
7execution.
8 2.Ifthestateoranyentitydescribedinsubsection1ofthissectionentersintoa
9leaseorotheragreementwithalessee,agent,designee,orrepresentativewhoisto
10provideorarrangeconstructionservicesonaprojectforanongovernmentalpurpose,
11thestateorentitymayconsenttothesubjectionoftheprojectandthelanduponwhich
12itislocatedtotheattachmentofmechanics'liensfiledunderchapter429.Anysuch
13consentshallbeinwritingspecificallystatingsuchconsent,shallcontainalegal
14descriptionofthepropertytobesubjecttoattachment,shallbesignedand
15acknowledgedbyitsauthorizedofficialorofficerinaformsuitableforrecording,
16andshallberecordedintheofficeoftherecorderofdeedsforthecountyinwhichthe
17propertyislocated.Suchconsentmaybeincludedaspartofanyleaseorother
18agreement,oramemorandumthereof,executedandrecordedinthesamemanner.
HB1724 4 19Uponsuchrecording,thepropertydescribedthereinshallbesubjecttotheprovisionsof
20chapter429asifthepropertywereownedbyaprivateperson.
âś”
HB1724 5