Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. PCS (380674) for CS for SB 1392
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/01/2016           .                                

       The Committee on Appropriations (Gaetz) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete lines 260 - 336
    4  and insert:
    5         Section 22. Paragraph (a) of subsection (1) of section
    6  337.18, Florida Statutes, is amended to read:
    7         337.18 Surety bonds for construction or maintenance
    8  contracts; requirement with respect to contract award; bond
    9  requirements; defaults; damage assessments.—
   10         (1)(a) A surety bond shall be required of the successful
   11  bidder in an amount equal to the awarded contract price.
   12  However, the department may choose, in its discretion and
   13  applicable only to multiyear maintenance contracts, to allow for
   14  incremental annual contract bonds that cumulatively total the
   15  full, awarded, multiyear contract price.
   16         1. The department may waive the requirement for all or a
   17  portion of a surety bond if:
   18         a.For a project for which The contract price is $250,000
   19  or less and, the department may waive the requirement for all or
   20  a portion of a surety bond if it determines that the project is
   21  of a noncritical nature and nonperformance will not endanger
   22  public health, safety, or property;
   23         b. The prime contractor is a qualified nonprofit agency for
   24  the blind or for the other severely handicapped under s.
   25  413.036(2); or
   26         c. The prime contractor is using a subcontractor that is a
   27  qualified nonprofit agency for the blind or for the other
   28  severely handicapped under s. 413.036(2). However, the
   29  department may not waive more than the amount of the
   30  subcontract.
   31         2. If the Secretary of Transportation or the secretary’s
   32  designee determines that it is in the best interests of the
   33  department to reduce the bonding requirement for a project and
   34  that to do so will not endanger public health, safety, or
   35  property, the department may waive the requirement of a surety
   36  bond in an amount equal to the awarded contract price for a
   37  project having a contract price of $250 million or more and, in
   38  its place, may set a surety bond amount that is a portion of the
   39  total contract price and provide an alternate means of security
   40  for the balance of the contract amount that is not covered by
   41  the surety bond or provide for incremental surety bonding and
   42  provide an alternate means of security for the balance of the
   43  contract amount that is not covered by the surety bond. Such
   44  alternative means of security may include letters of credit,
   45  United States bonds and notes, parent company guarantees, and
   46  cash collateral. The department may require alternate means of
   47  security if a surety bond is waived. The surety on such bond
   48  shall be a surety company authorized to do business in the
   49  state. All bonds shall be payable to the department and
   50  conditioned for the prompt, faithful, and efficient performance
   51  of the contract according to plans and specifications and within
   52  the time period specified, and for the prompt payment of all
   53  persons defined in s. 713.01 furnishing labor, material,
   54  equipment, and supplies for work provided in the contract;
   55  however, whenever an improvement, demolition, or removal
   56  contract price is $25,000 or less, the security may, in the
   57  discretion of the bidder, be in the form of a cashier’s check,
   58  bank money order of any state or national bank, certified check,
   59  or postal money order. The department shall adopt rules to
   60  implement this subsection. Such rules shall include provisions
   61  under which the department shall refuse to accept bonds on
   62  contracts when a surety wrongfully fails or refuses to settle or
   63  provide a defense for claims or actions arising under a contract
   64  for which the surety previously furnished a bond.
   66  ================= T I T L E  A M E N D M E N T ================
   67  And the title is amended as follows:
   68         Delete lines 37 - 40
   69  and insert:
   70         airport-related leases; amending s. 337.18, F.S.,
   71         relating to contracts for construction or maintenance;
   72         revising conditions for waiver of a required surety
   73         bond; amending s. 338.165, F.S.; deleting an