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Bill > S1639
NJ S1639
NJ S1639Requires surety to take certain actions after assuming responsibility for completion of transportation project.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 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 mandates that a surety, which is a company that guarantees the performance of a contract, must take specific actions when it becomes responsible for completing a transportation project, such as a road or bridge. If a surety takes over a project, it must sign a contract with a new contractor within 60 days and ensure that this contractor begins or resumes construction within another 60 days of signing that contract. These rules also apply to sureties already responsible for projects when the bill becomes law, with specific timelines for entering into new contracts or resuming work if construction hasn't started yet, unless construction was already underway or a contract was in place and work had begun before the bill's enactment. Violating these requirements can result in a penalty of at least $10,000 for each day the surety remains non-compliant.
Committee Categories
Transportation and Infrastructure
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Transportation Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1639 |
| BillText | https://pub.njleg.gov/Bills/2026/S2000/1639_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S2000/1639_I1.HTM |
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