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Summary: HB 3316 would require the property owner to either set aside money in a trust fund or purchase a bond in order to ensure payment for a project in which the property owner has a retainage to pay the remainder of the project cost. This legislation would ensure that the contractors who supply labor and materials for the project get fully paid in the event the property owner defaults.
Analysis: Construction projects are already heavily regulated through the allowance of mechanic's liens and required retainage. HB 3316 would further interfere with free-market interactions by increasing government regulations beyond their current state. If a property owner defaults, the contractor can pursue legal remedy through the courts. It is our view that the answer to an overregulation is not to add still more regulation. We oppose HB 3316.