SB100: Bill Text

LRB-2174/1

KSH:kaf:jf

1997 - 1998 LEGISLATURE

1997 Senate BILL 100

March 4, 1997 - Introduced by Senators Moen, C. Potter, Rude, Wineke, Huelsman, Breske, Jauch, Buettner, Rosenzweig and Panzer, cosponsored by Representatives Musser, Springer, Huber, Harsdorf, Hahn, Reynolds, Albers, Ourada, Murat and Olsen. Referred to Committee on Economic Development, Housing and Government Operations.

SB100,1,4 An Act to renumber and amend 779.14 (1m) (b) 1.; to amend 779.14 (2) (am) 2. c.; and to create 779.14 (1m) (b) 1. of the statutes; relating to: performance bonding requirements for certain contracts for public improvements or public works.

Analysis by the Legislative Reference Bureau

Under current law, certain contracts pertaining to public improvements or public works are required to contain a provision for the payment by the prime contractor of all claims for labor performed and materials furnished, used or consumed in making the public improvement or performing the public work. The prime contractor is required to give a performance bond for payment of these claims. These requirements apply to contracts with the state, if the contract involves $2,500 or more, and to other public improvement or public work contracts, if the contract involves $500 or more. Prior to 1995 Wisconsin Act 395, the performance bond requirement could be waived if the appropriate governmental entity determined that the contract provided for adequate guarantees or warranties of performance. This authority to waive performance bond requirements was repealed by 1995 Wisconsin Act 395.

This bill provides that the performance bonding requirements do not apply to contracts with school districts that do not exceed $10,000 and allows school boards to waive the performance bonding requirements for contracts in excess of $10,000, if the contract provides for guarantees or warranties deemed adequate by the school board.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB100, s. 1 Section 1. 779.14 (1m) (b) 1. of the statutes is renumbered 779.14 (1m) (b) 1. a. and amended to read:

SB100,2,7 779.14 (1m) (b) 1. a. A Except as provided in subd. 1.b., a contract under par. (a) shall may not be made unless the prime contractor gives a bond issued by a surety company licensed to do business in this state and unless the prime contractor agrees, to the extent practicable, to maintain a list of all subcontractors and suppliers performing labor or furnishing materials under the contract.

SB100, s. 2 Section 2. 779.14 (1m) (b) 1. b. of the statutes is created to read:

SB100,2,13 779.14 (1m) (b) 1. b. A performance bond under subd. 1. a. is not required for contracts with school districts that are not in excess of $10,000. A school board may waive the performance bonding requirements under subd. 1. a. for contracts in excess of $10,000 if the school board determines that the contract with the school district provides adequate guarantees or warranties.

SB100, s. 3 Section 3. 779.14 (2) (am) 2. c. of the statutes is amended to read:

SB100,2,18 779.14 (2) (am) 2. c. The subcontractor or supplier is listed in the list required to be maintained under sub. (1m) (b) 1. a. or in a written contract, or in a document appended to a written contract, between a subcontractor or supplier and the prime contractor.

SB100,2,19 (End)