hb1177_LC_34_0646S_hs_4.html
06 LC 34 0646S

The House Committee on Transportation offers the following substitute to HB 1177:

A BILL TO BE ENTITLED
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All laws and parts of laws in conflict with this Act are repealed.