The Senate Local Government Committee met at 10:00 am to consider SB1189.

The initiative was created as a result of testimony received during committee hearings last session and is sponsored by the Chairman of the Senate Local Government Committee, Senator John Eichelberger R-30.

The legislation would close the apparent loophole which can allow projects to be initiated without sufficient security to insulate the municipality from risk.

Eichelberger's bill would eliminate alternative security instruments that have proven to offer insufficient protections to taxpayers when projects go bad.

The law would require security for all levels of government equal to the contract amount through the use of performance bonds, payment bonds, irrevocable letters of credit, or the use of escrow accounts.

Photo By Natalie Cake