06 LC 34
0646S
House
Bill 1177 (COMMITTEE SUBSTITUTE)
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 single bonds in such amount are not reasonably available in the
surety industry. Whereupon the amount of the value of the construction portion
of the contract, excluding right of way acquisition and engineering, shall be
guaranteed by combinations, as shall be determined in the discretion of the
board, of performance and payment bonds, letters of credit and corporate
guaranties, but in no case shall such aggregate assurances toward performance
and payment:
(1)
Be composed of less than $300 million of performance and payment bonds; and
(2)
Equal less than 100 percent of the
contractoŕs
obligation under the construction portion of the contract, and shall be in
accordance with Part 4 of Article 1 of Chapter 10 of Title 13 for the purposes
of Code Section 13-10-61.
Additionally,
contractors shall provide the following certification under oath with each
request for payment: 'All payments due to subcontractors and suppliers from
previous payment 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.