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Bill > HB496
MS HB496
MS HB496Public works contracts; revise contract threshold amounts relating to performance bond and general liability insurance requirements.
summary
Introduced
01/12/2026
01/12/2026
In Committee
01/12/2026
01/12/2026
Crossed Over
Passed
Dead
02/03/2026
02/03/2026
Introduced Session
2026 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 increases the threshold amount for public works contracts in Mississippi that require a performance bond or payment bond from $25,000 to $75,000, meaning that for contracts under this new amount, the owner can opt for a lump-sum payment upon completion instead of requiring these bonds. Additionally, the bill raises the minimum general liability insurance requirement for contractors on public building or work projects from $25,000 to $75,000, mandating coverage of at least $1,000,000 for bodily injury and property damage. A significant new provision is that for state contracts exceeding $5,000 or contracts with local public authorities exceeding $75,000, if a subcontractor lacks the required general liability insurance, the general contractor will be held responsible for any underinsured or uninsured amounts up to the minimum coverage limit.
Committee Categories
Justice
Sponsors (1)
Last Action
Died In Committee (on 02/03/2026)
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/2026/pdf/history/HB/HB0496.xml |
| BillText | https://billstatus.ls.state.ms.us/documents/2026/html/HB/0400-0499/HB0496IN.htm |
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