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Committee approves modest change to bonding language for state construction contracts
Summary
The committee passed Senate Bill 202, an agency bill that amends statutory bonding language for state construction projects to ensure contracts are fully executed and bonds cover the state's exposure.
Representative Howard Beatty presented Senate Bill 202 as an agency bill to the House Transportation Committee, saying the measure would amend statutory bonding requirements for state construction projects to better protect the state’s financial exposure.
“Basically, this bill is just a small modification on the bonding language,” Representative Beatty said, describing the change as insertion of language to ensure that each contract is fully executed and that bonds fully cover the state's exposure. He told the committee that the new language had not been in the statute previously and was intended to confirm the state's protection when projects proceed.
Committee members asked whether a bonding level equal to 25% of the contract price would be sufficient; a questioner referenced the prior 25% language. Representative Beatty said the bill’s language is intended to ensure bonds cover the exposure, implying the dollar amount would reflect that exposure rather than a fixed percentage.
No outside testimony was offered in opposition or support. Representative Richmond moved that the committee give the bill a do-pass recommendation. The committee approved the motion by voice vote; the chair announced the bill passed and will move forward to the next stage.
