Revision: April 9, 2009, midnight
HB 284-FN – VERSION ADOPTED BY BOTH BODIES
2009 SESSION
06/09
HOUSE BILL 284-FN
AN ACT increasing the contract amount that triggers the bond requirement on public projects.
SPONSORS: Rep. Lerandeau, Ches 6; Rep. Campbell, Hills 24; Rep. Cloutier, Sull 4; Rep. Chandler, Carr 1; Rep. Graham, Hills 18
COMMITTEE: Public Works and Highways
This bill increases the contract amount that triggers the bond requirement on public projects.
This bill is a request of the department of transportation.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0658
06/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT increasing the contract amount that triggers the bond requirement on public projects.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Liens for Labor and Materials; Bond Required. Amend RSA 447:16 to read as follows:
447:16 Bond Required. Officers, public boards, agents or other persons who contract in behalf of the state or any political subdivision thereof for the construction, repair or rebuilding of public buildings, public highways, bridges or other public works shall if said contract involves an expenditure of [$25,000] $35,000, and may if it involves an expenditure of less amount, obtain as a condition precedent to the execution of the contract, sufficient security, by bond or otherwise, in an amount equal to at least 100 percent of the contract price, or of the estimated cost of the work if no aggregate price is agreed upon, conditioned upon the payment by the contractors and subcontractors for all labor performed or furnished, for all equipment hired, including trucks, for all material used and for fuels, lubricants, power, tools, hardware and supplies purchased by said principal and used in carrying out said contract, and for labor and parts furnished upon the order of said contractor for the repair of equipment used in carrying out said contract.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
09-0658
01/07/09
HB 284-FN - FISCAL NOTE
AN ACT increasing the contract amount that triggers the bond requirement on public projects.
FISCAL IMPACT
The Department of Transportation states this bill will decrease state expenditures by $7,000 in FY 2010, $7,000 in FY 2011, $8,400 in FY 2012 and $8,400 FY 2013. The Department of Transportation states this bill will decrease county and local expenditures by an indeterminable amount in FY 2010 through 2013. This bill will have no impact on state, county and local revenues.
METHODOLOGY
The Department of Transportation states this bill increases the contract amount that triggers the bond requirement on public projects from $25,000 to $35,000. The Department states that approximately 10 projects in FY 2010, 10 projects in FY 2011, 12 projects in FY 2012 and 12 projects in FY 2013 will cost above $25,000 and less than $35,000. The Department states the cost to bond is approximately $1,000 per project and contractors pass along 70% of these costs to the state in the form of higher project costs. Given these assumptions the Department estimates a $7,000 decrease in state expenditures in FY 2010 and FY 2011 and a $8,400 decrease in state expenditures in FY 2012 and FY 2013. The Department states this bill will also decrease county and local expenditures in the form of lower project costs as well, however, the Department states the amount is indeterminable at this time.
The Department of Administrative Services states this bill will have no fiscal impact on state expenditures because the Bureau of Public Works is planning to continue to require a performance bond for all of their projects involving an expenditure of $25,000 or more as a good business practice.