06 LC 34
0550
House
Bill 1177
By:
Representatives Smith of the
129th,
Graves of the
12th,
Smith of the
13th,
Channell of the
116th,
Wix of the
33rd,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 32-2-60 of the Official Code of Georgia Annotated, relating
to Department of Transportation construction contracts, so as to provide for
bonding amounts for certain projects; to provide for related matters; to provide
an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 32-2-60 of the Official Code of Georgia Annotated, relating to
Department of Transportation construction contracts, is amended by inserting
after subsection (d) thereof a new subsection (e) to read as
follows:
∀(e)
When the estimated amount of any department construction contract exceeds $300
million, performance and payment bonds shall be required in the amount of at
least the total amount payable by the terms of the contract unless the
department, after public comment, makes a written recommendation to the board,
supported by specific findings, and the board by vote in a public approved
meeting, that bonds in such amount are not reasonably available in the surety
industry, whereupon the amount of such bonds shall be fixed by the department in
an amount not less than $300 million, and adequate for the protection of the
state and all persons furnishing labor and material for use in prosecution of
the work provided for in the contract. If approved by the board, payment bonds
obtained in the approved amount shall be deemed a payment bond taken in
accordance with provisions contained in Code Sections 13-10-60 through 13-10-65
for the purposes of Code Section 13-10-61. If a determination is made by the
department, with board approval, that a payment bond in an amount less than the
total contract amount may be furnished, then the contractor shall provide the
following certification under oath with each request for payment: 'All payments
due to subcontractors and suppliers from previous payments received under the
contract have been made, and timely payments will be made from the proceeds of
the payment covered by this
certification.'∀
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.