senate Bill S1786

2009-2010 Legislative Session

Relates to performance and payment bonds

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 03, 2010 notice of committee consideration - requested
Jan 06, 2010 referred to finance
Feb 06, 2009 referred to finance

Co-Sponsors

S1786 - Bill Details

See Assembly Version of this Bill:
A4093
Current Committee:
Law Section:
State Finance Law

S1786 - Bill Texts

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view sponsor memo
BILL NUMBER: S1786

TITLE OF BILL :
An act to amend the state finance law, in relation to performance and
payment bond requirements


PURPOSE OR GENERAL IDEA OF BILL :
To provide increased performance and payment bond waiver levels for
small and certified minority and women-owned businesses.

SUMMARY OF SPECIFIC PROVISIONS :
This bill would increase the contract threshold for which performance
and payment bonds are required to $500,000 for small and certified
minority and omen-owned businesses and would require information on
bonding requirements or dispensations in advertisements for bids.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER :
Currently, under the State Finance Law, performance and payment bonds
may be dispensed with at the discretion of the state agency head for
contracts less than $100,000, or, for contracts not subject to
multiple contract award requirements, $200,000. This bill would
provide a targeted increase of these thresholds for small and
certified minority and women-owned businesses. The bill would also
require that information on bonding requirements be included in
advertisements for bids.

AMENDMENT :
Performance and payments bonds for single contracts have been
increased to $150,000 and multiple contracts to $300,000 and allows
for automatic increases based upon inflation of construction costs.

JUSTIFICATION :
This proposal is intended to enhance the participation of small,
certified minority and woman-owned businesses in public projects.
Testimony from an Assembly hearing in 2005 documented that statutory
bonding requirements on public projects pose a barrier to the growth
of small, certified minority and woman owned contractors. These firms
often lack the assets and the record of experience required by bonding
companies; yet without bonding they cannot compete for the work, and
thus, cannot get the experience and assets they need to become
bondable. By providing a targeted dispensation of bonding requirements
this bill would enable small, certified minority and women-owned
businesses to gain experience with larger projects, and will benefit
contracting agencies as well as the targeted businesses by creating a
larger pool of qualified contractors and subcontractors available for
public works projects.

PRIOR LEGISLATIVE HISTORY :
2006: A.9069
2007: S.5199-A - Died in Finance Committee

EFFECTIVE DATE :
Immediately.
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