FL S0446

Requires applicants for incentives under the Quick Action Closing Fund (s. 288.1088) or Innovation Incentive Program (s. 288.1089) to provide a surety bond issued by an authorized insurer for the award amount before receiving funds.

Permits up to half of the surety bond premium (not to exceed 3 percent of the award) to be paid from the award amount, with applicants required to notify the department 10 days before each premium payment.

Allows the department to waive the surety bond requirement if the applicant cannot obtain one or demonstrates unreasonable cost, but requires written certification to the Governor and legislative leaders explaining the reasons and demonstrating the project warrants waiver.

If a surety bond is waived, requires the applicant to secure the award through an irrevocable letter of credit, cash or securities held in trust, or a secured transaction in collateral, with all security remaining in effect until performance conditions are satisfied.

Permits the department to completely waive bonding and security requirements for applicants with 5 years of independently audited financial statements and prior successful compliance with incentive clawback provisions, subject to Legislative Budget Commission approval for awards exceeding $5 million.

Applies to all contracts entered into on or after July 1, 2013.