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Current Status Bill Number:View additional legislative information at the LPITS web site.4823 Ratification Number:310 Act Number:253 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20020227 Primary Sponsor:Cato All Sponsors:Cato, Chellis, Battle, G. Brown, J. Brown, Cooper, Edge, Harrison, Hinson, Jennings, Law, Lee, Limehouse, Lourie, Miller, Perry, Quinn, Rice, Rutherford, Sandifer, Scarborough, Scott, F.N. Smith, J.E. Smith, Tripp, Trotter, Walker and White Drafted Document Number:l:\council\bills\dka\4700mm02.doc Date Bill Passed both Bodies:20020425 Governor's Action:S Date of Governor's Action:20020514 Subject:Surety bonds, to prohibit the State or political subdivisions from requiring that a bond be furnished by a particular surety company, agent, or broker History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20020603 Act No. A253 ------ 20020514 Signed by Governor ------ 20020508 Ratified R310 Senate 20020425 Read third time, enrolled for ratification Senate 20020424 Read second time Senate 20020417 Recalled from Committee 06 SF Senate 20020416 Introduced, read first time, 06 SF referred to Committee House 20020412 Read third time, sent to Senate House 20020411 Read second time, unanimous consent for third reading on the next Legislative day House 20020410 Committee report: Favorable 26 HLCI House 20020227 Introduced, read first time, 26 HLCI referred to Committee Versions of This Bill Revised on April 10, 2002 - Word format Revised on April 17, 2002 - Word format
(A253, R310, H4823)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-35-35 SO AS TO PROHIBIT THE STATE, A POLITICAL SUBDIVISION OF THE STATE, OR OTHER PUBLIC ENTITY OF THE STATE FROM REQUIRING THAT A BOND TO SECURE THE BID OR THE PERFORMANCE OR PAYMENT OF THE CONTRACT BE FURNISHED BY A PARTICULAR SURETY COMPANY OR THROUGH A PARTICULAR AGENT OR BROKER; AND TO AMEND SECTIONS 11-1-120, 11-35-3030, AS AMENDED, 12-28-2740, 29-6-250, AND 57-5-1660, RELATING TO PAYMENT BONDS, BID BONDS, PERFORMANCE BONDS, LABOR AND MATERIAL BONDS, AND HIGHWAY CONSTRUCTION BONDS, RESPECTIVELY, ALL SO AS TO ADD CONFORMING LANGUAGE PROHIBITING THE STATE, A POLITICAL SUBDIVISION OF THIS STATE, OR OTHER PUBLIC ENTITY OF THE STATE FROM REQUIRING THAT THE BOND BE FURNISHED BY A PARTICULAR SURETY COMPANY OR THROUGH A PARTICULAR AGENT OR BROKER.
Be it enacted by the General Assembly of the State of South Carolina:
Surety bond
SECTION 1. The 1976 Code is amended by adding:
"Section 11-35-35. If the State, or county, city, public service district, or other political subdivision of the State, or agency, department, institution, or other public entity of the State, enters into a procurement contract and requires the bidder to provide a surety bond to secure the bid or the performance or payment of the contract, the state political subdivision of the State, or public entity of the State may not exact that the surety bond be furnished by a particular surety company or through a particular agent or broker."
Payment bond
SECTION 2. Section 11-1-120 of the 1976 Code, as added by Act 240 of 2000, is amended by adding an undesignated paragraph at the end to read:
"If the State, or county, city, public service district, or other political subdivision of the State, or other public entity contracts for construction and requires the contractor to furnish a payment bond pursuant to this section, the State, political subdivision of this State, or other public entity of this State may not exact that the payment bond be furnished by a particular surety company or through a particular agent or broker."
Bid security, contract performance bonds
SECTION 3. Section 11-35-3030 of the 1976 Code, as last amended by Act 240 of 2000, is further amended by adding at the end:
"(5) Bonds for Bid Security and Contract Performance. The requirement of a bond for bid security on a construction contract, pursuant to subsection (1), and a construction contract performance bond, pursuant to subsection (2), may not include a requirement that the surety bond be furnished by a particular surety company or through a particular agent or broker."
Bid security, payment and performance bonds
SECTION 4. Section 12-28-2740(I) of the 1976 Code is amended to read:
"(I)(1) In expending funds pursuant to this section, counties that provide for engineering, contracting, and project supervision shall use a procurement system that requires competitive sealed bids and public advertisement of all projects. All bids for contracts in excess of one hundred thousand dollars must be accompanied by certified bid bonds, and all work awarded under the contracts must be covered by performance and payment bonds for one hundred percent of the contract value. Bid summaries must be published in a newspaper of general distribution following each award.
(2) The requirement of a bond for bid security or a bond for payment and performance may not include the requirement that the surety bond be furnished by a particular surety company or through a particular agent or broker."
Labor and material payment bonds
SECTION 5. Section 29-6-250(1) of the 1976 Code, as added by Act 295 of 2000, is amended by adding at the end:
"The governmental body may not exact that the labor and material payment bond be furnished by a particular surety company or through a particular agent or broker."
Performance and indemnity bonds
SECTION 6. Section 57-5-1660 of the 1976 Code, as last amended by Act 240 of 2000, is further amended by adding at the end:
"(d) If the Department of Transportation enters into a public highway construction contract exceeding ten thousand dollars and requires that the contractor furnish a performance and indemnity bond, or a payment bond, or both of them, the department, the county, or the road district may not exact that the surety bond be furnished by a particular surety company or through a particular agent or broker."
Time effective
SECTION 7. This act takes effect upon approval by the Governor and applies to all subject contracts entered into after that date.
Ratified the 8th day of May, 2002.
Approved the 14th day of May, 2002.
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