06 HB1177/SCSFA/1
SENATE
SUBSTITUTE TO HB 1177
AS
PASSED SENATE
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 notice, makes a written determination supported by
specific findings that single bonds in such amount are not reasonably available,
and the board approves such determination in a public meeting. In such event,
the estimated value of the construction portion of the contract, excluding right
of way acquisition and engineering, shall be guaranteed by a combination of
security including, but not limited to the following:
(1)
Payment, performance, surety, cosurety, or excess layer surety
bonds;
(2)
Letters of credit;
(3)
Guaranties of the contractor or its parent companies;
(4)
Obligations of the United States and of its agencies and instrumentalities;
or
(5)
Cash collateral.
(6)
Provided however that the aggregate total guarantee of the project may not use a
corporate guarantee of more than 35%.
The
combination of such guarantees shall be determined at the discretion of the
department, subject to the approval of the board; provided, however, that such
aggregate guarantees shall include not less than $300 million of performance and
payment bonds and shall equal not less than 100 percent of the
contractoŕs
obligation under the construction portion of the contract. Payment guarantees
approved pursuant to this subsection shall be deemed to satisfy the requirements
of Code Section 13-10-61. Contractors requesting payment under construction
contracts guaranteed pursuant to this subsection shall provide the following
certification under oath with each such request: '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.