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S.B. 743
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VETOES
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(b) (1) A supplier who has a direct contractual relationship with a
subcontractor or sub-subcontractor of a contractor who has provided payment
security but no contractual relationship with the contractor may sue on the security if
the supplier gives written notice to the contractor within 90 days after the labor or
materials for which the claim is made were last supplied in prosecution of work
covered by the security.
(2) A notice under this subsection:
(i) shall state with substantial accuracy the amount claimed and
the person to whom the labor or material was supplied; and
(ii) shall be sent by certified mail to the contractor at the
contractor's residence or a place where the contractor has an office or does business.
(c) (1) On request by a person who submits an affidavit verifying that the
person has supplied labor or materials but has not been paid or is being sued under
this section, the Comptroller or the officer in charge of the office where the payment
security or evidence of security is required to be filed shall issue:
(i) a certified copy of the payment bond; or
(ii) for other security, a certified statement of the security.
(2) The person requesting certification shall pay a reasonable fee, set by
the Comptroller or other officer required to issue the certification, to cover the costs of
preparation.
(3) A certification under this section is prima facie evidence of the
contents, execution, and delivery of payment security.
(D) (1) AN EXECUTORY CONTRACT BETWEEN A SUPPLIER AND A
CONTRACTOR OR SUBCONTRACTOR THAT IS RELATED TO A CONSTRUCTION
CONTRACT MAY NOT WAIVE OR REQUIRE THE SUPPLIER TO WAIVE THE RIGHT TO
SUE ON PAYMENT SECURITY UNDER THIS SECTION.
(2) A PROVISION IN AN EXECUTORY CONTRACT BETWEEN A SUPPLIER
AND A CONTRACTOR OR SUBCONTRACTOR THAT IS RELATED TO A CONSTRUCTION
CONTRACT AND THAT CONDITIONS PAYMENT TO THE SUPPLIER ON RECEIPT OF
PAYMENT BY THE PERSON FROM A PUBLIC BODY OR OTHER THIRD PARTY, MAY NOT
ABROGATE OR WAIVE THE RIGHT OF THE SUPPLIER TO SUE ON PAYMENT SECURITY
UNDER THIS SUBTITLE.
(3) A PROVISION OF A CONTRACT MADE IN VIOLATION OF THIS
SUBSECTION IS VOID AS AGAINST THE PUBLIC POLICY OF THE STATE.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2000.
May 18, 2000
The Honorable Thomas V. Mike Miller, Jr.
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- 4110 -
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