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SB 202

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2025-2026 Regular Session Introduced by Russ Goodman and 4 co-sponsors

Senate Bill 202 requires contractors to secure construction projects with bonds worth 25% of the contract, enhancing financial protection for Arkansas' state funds.

Senate Tabled
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Bill Summary · SB 202

Summary of Senate Bill 202 (Act 217)

Purpose and Intent

Senate Bill 202, now enacted as Act 217, amends the statutory bonding requirements for construction projects overseen by the State Highway Commission in Arkansas. The primary goal of this legislation is to ensure that contracts between the commission and successful bidders are adequately secured, thereby protecting the state's financial interests in construction projects.

Key Provisions

The bill introduces significant changes to the bonding requirements as follows:

  1. Bond Amount:

    • Successful bidders are required to provide a surety bond or bonds amounting to at least one-fourth (¼) of the total contract price. This bond must be approved by the State Highway Commission.
    • The bond is conditioned to ensure that contracts are fully executed and completed, covering the state's exposure.

  2. Acceptance of Personal Bonds:

    • The commission has the discretion to accept personal bonds. However, if a personal bond is accepted, the contractor must deposit collateral in the form of:
      • United States Government bonds
      • State highway bonds or notes
      • Valid bonds of any road improvement district
    • The collateral must equal twenty-five percent (25%) of the contract amount and will be held in escrow as security for contract performance.

Affected Parties

  • Contractors: The legislation directly impacts contractors bidding for construction projects with the State Highway Commission, as they must comply with the new bonding requirements.
  • State Highway Commission: The commission benefits from enhanced security measures that protect state funds and ensure project completion.

Legislative Timeline

  • Introduced: February 5, 2025
  • Amendment Adopted: February 13, 2025
  • Passed by Senate: February 18, 2025
  • Passed by House: February 26, 2025
  • Enacted: February 27, 2025 (Notification that SB202 is now Act 217)

Conclusion

Senate Bill 202 (Act 217) strengthens the bonding requirements for construction projects under the State Highway Commission, ensuring that contracts are secured and state interests are protected. By mandating a minimum bond amount and allowing for personal bonds with collateral, the legislation aims to enhance accountability and financial security in state construction projects.

Compiled from official sources — confirm details with the bill’s official record.

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