SB 167
Modifies provisions relating to bonding requirements on public works
Sponsor:
LR Number:
0888H.05T
Last Action:
7/11/2019 - Signed by Governor
Journal Page:
Title:
HCS SCS SB 167
Calendar Position:
Effective Date:
August 28, 2019
House Handler:

Current Bill Summary

HCS/SCS/SB 167 - This act modifies the definition of "contractor", for purposes of public works construction bonds, to include persons and business entities that contract, provide, or arrange for construction services on a public works project for a non-governmental purpose when acting as a lessee, agent, designee, or representative of a public entity. The act exempts construction managers not-at-risk and construction managers who do not otherwise enter into contracts with contractors for the furnishing of labor, materials, or services to a public works project from the definition of "contractor."

The act further requires that all contracts for public works in excess of $50,000 to be performed for a public entity's lessee, agent, designee, or representative on work for non-governmental purposes shall require contractors to furnish a bond. Remote suppliers shall not be entitled to recovery under this bond, unless such suppliers shall have given written notice to the contractor that it has not been paid within ninety days of the time the supplier last supplied materials on the public works project.

The act specifically provides that these provisions shall not require a contractor who provides construction services for a public works project used for non-governmental purposes and who contracts with a public entity's lessee, agent, designee, or representative on such public works project used for non-governmental purposes to furnish a bond when the public entity's lessee, agent, designee, or representative is required to furnish a bond. Providing a bond under this act precludes the filing of a mechanic's lien by any subcontractor or supplier.

This act is similar to HB 490 (2019), HB 791 (2019), and HB 2453 (2018).

SCOTT SVAGERA