House Bill 134

Chair's Name: Ed Rynders

Committee: Intragovernmental Coordination

House Sponsor: Terry England

HB 134 raises the maximum bid bond amount from $300,000 to $750,000, allowing local governments to accept letters of credit up to that amount in lieu of a bond.

This bill received a Do Pass recommendation from the Intragovernmental Coordination Committee and comes to the House Floor under the Open Rule. 

Chairman Rynders� opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

This legislation attempts to address the heavy expense associated with bid bonds required of small businesses by local governments.  This bill raises the level over which a local government must require a bid bond, from $300,000 to $750,000, and would authorize them instead to accept an irrevocable letter of credit for bids under the new ceiling amount.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

The driving force behind this bill is to lower the expenses to small businesses engaged in construction projects for local governments.

Senate Changes:

The Senate attached language originally from SB 146 dealing with the advertisement of public works contracts. However, the House recently passed SB 146, so Rep. England will likely move to disagree.