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Bill > HB196
MS HB196
Public works contracts; revise contract threshold amounts relating to performance bond and general liability insurance requirements.
summary
Introduced
01/10/2025
01/10/2025
In Committee
01/10/2025
01/10/2025
Crossed Over
Passed
Dead
02/04/2025
02/04/2025
Introduced Session
2025 Regular Session
Bill Summary
An Act To Amend Section 31-5-51, Mississippi Code Of 1972, To Increase From $25,000.00 To $75,000.00 The Threshold Amount For Public Works Contracts Under Which An Owner May Elect To Make A Lump-sum Payment At Completion Of The Contract Instead Of Requiring A Performance Bond Or Payment Bond; To Increase From $25,000.00 To $75,000.00 The Threshold Amount Under Which Any Person Entering Into A Formal Contract With A County, City Or Other Public Authority For The Construction, Alteration, Or Repair Of Any Public Building Or Public Work, Must Furnish Proof Of General Liability Insurance Coverage In An Amount Not Less Than $1,000,000.00 For Bodily Injury And Property Damage; To Provide That For Any Contract With The State Which Exceeds $5,000.00, Or With A County, City Or Other Public Authority Which Exceeds $75,000.00, For The Construction, Alteration Or Repair Of Any Public Building Or Public Work, If A Subcontractor Of The General Contractor For The Contract Does Not Have General Liability Insurance Coverage In The Required Minimum Amount, Then The General Contractor Shall Be Liable For Any Amount Under Such Minimum Amount Of Coverage For Which The Subcontractor Is Underinsured Or Not Insured; And For Related Purposes.
AI Summary
This bill amends Mississippi's public works contract regulations by increasing several key financial thresholds. Specifically, the bill raises the contract amount from $25,000 to $75,000 at which point contractors must provide performance and payment bonds, and beyond which they must have general liability insurance. For contracts over these thresholds, contractors must now provide performance and payment bonds that protect the public body and ensure full contract completion and payment to workers and suppliers. Additionally, the bill introduces a new provision requiring that if a subcontractor lacks the required minimum general liability insurance (typically $1 million for bodily injury and property damage), the general contractor becomes financially responsible for any coverage gaps. The changes aim to provide greater financial protection for public works projects by ensuring more comprehensive bonding and insurance coverage, with the new regulations set to take effect on July 1, 2025. These modifications will help mitigate financial risks for public entities undertaking construction, alteration, or repair projects by mandating more robust insurance and bonding requirements.
Committee Categories
Justice
Sponsors (5)
Last Action
Died In Committee (on 02/04/2025)
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://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB0196.xml |
| BillText | https://billstatus.ls.state.ms.us/documents/2025/html/HB/0100-0199/HB0196IN.htm |
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