MS HB500

Increases the contract amount threshold from $25,000 to $50,000 below which public bodies may elect not to require performance bonds or payment bonds from contractors.

Allows public bodies to make two equal payments of 50% of the contract amount each, with the final payment withheld until the contractor completes and accepts the work.

Eliminates the requirement for performance or payment bonds when contracts are under $50,000 and the two-payment structure is elected by the public body.

Effective July 1, 2013.