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S1099.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC WORKS - Amends existing law to provide that no performance or
payment bond furnished by a contractor for a public works project shall be
less than 85% of the amount of the contract.
02/03 Senate intro - 1st rdg - to printing
02/04 Rpt prt - to Com/HuRes
02/26 Rpt out - rec d/p - to 2nd rdg
03/01 2nd rdg - to 3rd rdg
03/04 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Parry
Floor Sponsor - King
Title apvd - to House
03/05 House intro - 1st rdg - to Bus
03/12 Rpt out - rec d/p - to 2nd rdg
03/15 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 59-3-8
AYES -- Barraclough, Barrett, Bell, Bieter, Boe, Bruneel, Campbell,
Chase, Clark, Deal, Denney, Field(13), Field(20), Gagner, Geddes,
Gould, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck,
Jaquet, Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh,
Linford, Loertscher, Marley, McKague, Meyer(Duncan), Montgomery,
Mortensen, Moyle, Pischner, Pomeroy, Reynolds, Ridinger, Robison,
Sali, Schaefer, Sellman, Smith, Smylie, Stevenson, Stone, Taylor,
Tilman, Tippets, Trail, Watson, Williams, Wood, Zimmermann
NAYS -- Alltus, Ringo, Stoicheff
Absent and excused -- Black, Callister, Crow, Cuddy, Ellsworth,
Mader, Wheeler, Mr Speaker
Floor Sponsor - Kunz
Title apvd - to Senate
03/17 To enrol - rpt enrol - Pres signed
03/18 Sp signed
03/19 To Governor
03/23 Governor signed
Session Law Chapter 166
Effective: 07/01/99
S1099|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1099 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO THE PUBLIC CONTRACTS BOND ACT; AMENDING SECTION 54-1926, IDAHO 3 CODE, TO PROVIDE THAT NO PERFORMANCE OR PAYMENT BOND FURNISHED BY A CON- 4 TRACTOR FOR A PUBLIC WORKS PROJECT MAY BE LESS THAN EIGHTY-FIVE PERCENT OF 5 THE CONTRACT AMOUNT AND TO MAKE TECHNICAL CORRECTIONS. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 54-1926, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 54-1926. PERFORMANCE AND PAYMENT BONDS REQUIRED OF CONTRACTORS FOR PUBLIC 10 BUILDINGS AND PUBLIC WORKS OF THE STATE, POLITICAL SUBDIVISIONS AND OTHER PUB- 11 LIC INSTRUMENTALITIES -- REQUIREMENTS FOR BONDS -- GOVERNMENTAL OBLIGATIONS. 12 Before any contract for the construction, alteration, or repair of any public 13 building or public work or improvement of the state of Idaho, or of any 14 county, city, town, municipal corporation, township, school district, public 15 educational institution, or other political subdivision, public authority, or 16 public instrumentality, or of any officer, board, commission, institution, or 17 agency of the foregoing, is awarded to any person, he shall furnish to the 18 state of Idaho, or to such county, city, town, municipal corporation, town- 19 ship, school district, public educational institution, or other political sub- 20 division, public authority, or public instrumentality, or to such officer, 21 board, commission, institution, or agency thereof, bonds which shall become 22 binding upon the award of the contract to such person, who is hereinafter des- 23 ignated as "contractor": 24 (1) A performance bond in any amount to be fixed by the contracting body, 25 but in no event less thanfifty per centeighty-five per- 26 cent ( 8 50%) of the contract amount condi- 27 tioned upon the faithful performance of the contract in accordance with the 28 plans, specifications and conditions thereof. Said bond shall be solely for 29 the protection of the public body awarding the contract. 30 (2) A payment bond in an amount to be fixed by the contracting body but 31 in no event less thanfifty per centeighty-five percent 32 ( 8 50%) of the contract amount, solely for 33 the protection of persons supplying labor or materials, or renting, leasing, 34 or otherwise supplying equipment to the contractor or his subcontractors in 35 the prosecution of the work provided for in such contract. 36 (3) Public bodies requiring a performance bond or payment bond in excess 37 of fiftyper centpercent (50%) of the total con- 38 tract amount shall not be authorized to withhold from the contractor or sub- 39 contractor any amount exceeding fiveper centpercent 40 (5%) of the total amount payable as retainage. Further, the public body 41 shall release to the contractor any retainage for those portions of the proj- 42 ect accepted by the contracting public body and the contractors as complete 43 within thirty (30) days after such acceptance. Contractors, contracting with 2 1 subcontractors pursuant to contract work with a public body, shall not be 2 authorized to withhold from the subcontractor any amount exceeding five3per centpercent (5%) of the total amount payable to the 4 subcontractor as retainage. The contractor shall remit the retainage to the 5 subcontractor within thirty (30) days after completion of the subcontract. 6 Each bond shall be executed by a surety company or companies duly autho- 7 rized to do business in this state, or the contractor may deposit any of the 8 type of government obligations listed in subsection (h) of section 54-1901, 9 Idaho Code, in lieu of furnishing a surety company performance or payment bond 10 or bonds. In the case of contracts of the state or a department, board, com- 11 mission, institution, or agency thereof the aforesaid bonds shall be payable 12 to the state, or particular state agency where authorized. In case of all 13 other contracts subject to this act, the bonds shall be payable to the public 14 body concerned. 15 Said bonds shall be filed in the office of the department, board, commis- 16 sion, institution, agency or other contracting body awarding the contract. 17 Nothing in this section shall be construed to limit the authority of the 18 state of Idaho or other public body hereinabove mentioned to require a perfor- 19 mance bond or other security in addition to these, or in cases other than the 20 cases specified in this act. 21 It shall be illegal for the invitation for bids, or any person acting or 22 purporting to act, on behalf of the contracting body to require that such 23 bonds be furnished by a particular surety company, or through a particular 24 agent or broker.
STATEMENT OF PURPOSE
RS8835
RAISES THE MINIMUM REQUIREMENT FOR PAYMENT AND PERFORMANCE BONDS
FOR PUBLIC WORKS PROJECTS. CURRENT WAIVES OF BONDING
REQUIREMENTS ALLOW PUBLIC ENTITIES TO WAIVE BOND REQUIREMENTS TO
50%, FIFTY PERCENT, BOND WILL NOT COVER CURRENT MATERIAL AND
LABOR COSTS FOR SUBCONTRACTORS IN EVENT OF NON-PAYMENT BY THE
GENERAL CONTRACTOR.
FISCAL NOTE
NO FISCAL IMPACT
CONTACT: SENTOR ROBBI KING 332-1339
STATEMENT OF PURPOSE/ FISCAL NOTE S1099