SB 0521 Addresses public entity's requirement of surety bonds and establishes the open contracting act
LR Number:1683L.04C Fiscal Note:1683-04
Committee:Economic Development, Tourism & Local Government
Last Action:05/16/03 - S Calendar S Bills with H amendments (HCS) Journal page:
Title:HCS SB 521
Effective Date:August 28, 2003
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Current Bill Summary

HCS/SB 521 - This act prohibits public entities and their agents from requiring a bidder, proposer, or contractor to obtain a surety bond from a particular company in connection with any contract for construction of public works. Public entities must require that a surety bond required by Section 107.170 be issued by a company that holds a certificate of authority from the U.S. Department of Treasury.

This act establishes the "Open Contracting Act" which prohibits public agencies from imposing certain labor requirements as conditions for performing public works.

Public entities procuring products or services or entering into contracts for manufacture of public works shall ensure that their agreements do not bind the other parties to such agreement to labor organizations. Public entities shall not discriminate against such parties who refuse to adhere to agreements with labor organizations. Public entities shall not require such parties to make their employees join or pay dues or fees to a labor organization in excess of costs already paid.

Public entities shall not issue grants or contract for construction projects requiring another party's employees join, become affiliated with, or pay more money to a labor organization. Such entities may exercise authority, as required, to prevent such action by a grant recipient or party to a contract.

Any interested party has standing to challenge agreements that violate these provisions.