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Bill > S4104


NJ S4104

NJ S4104
Requires surety to take certain actions after assuming responsibility for completion of transportation project.


summary

Introduced
11/30/2023
In Committee
11/30/2023
Crossed Over
Passed
Dead
01/08/2024

Introduced Session

2022-2023 Regular Session

Bill Summary

This bill requires a surety to take certain actions after assuming responsibility for the completion of a transportation project. Specifically, the bill provides that when a surety assumes responsibility for the completion of a transportation project, the surety would be required to: (1) enter into a contract with a contractor for the completion of the transportation project within 60 calendar days; and (2) require the contractor to begin, or otherwise resume, construction of the transportation project within 60 calendar days of the execution of the contract. The bill would also apply to any surety that is responsible for the completion of a transportation project on the date of enactment of the bill, except that: (1) if the surety has not entered into a contract with a contractor for the completion of the transportation project on or before the date of enactment, the surety would be required to enter into such contract within 60 calendar days of the bill's enactment and require the contractor to begin, or otherwise resume, construction of the transportation project within 60 calendar days of the execution of the contract; (2) if the surety has entered into a contract with a contractor for the completion of the transportation project, but the contractor has not begun, or otherwise resumed, construction of the transportation project on the date of enactment, the surety would be required to require the contractor to begin, or otherwise resume, construction of the transportation project within 60 days of the bill's enactment; and (3) the requirements of the bill would not apply if the surety has entered into a contract, and the contractor has begun, or otherwise resumed, construction of the transportation project on or before the bill's enactment. A surety that violates the bill's provisions is subject to a penalty of not less than $10,000 for each day a surety is not in compliance.

AI Summary

This bill requires a surety (an entity that provides a bond or guarantee) to take certain actions after assuming responsibility for the completion of a transportation project. Specifically, the bill mandates that the surety must enter into a contract with a contractor to complete the project within 60 calendar days and require the contractor to begin or resume construction within 60 calendar days of the contract's execution. The bill also applies to sureties responsible for transportation projects on the effective date of the bill, with some exceptions. Sureties that violate the bill's provisions are subject to a penalty of at least $10,000 per day of non-compliance.

Committee Categories

Transportation and Infrastructure

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Transportation Committee (on 11/30/2023)

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