This bill amends sections 337.11 and 337.18 of the Florida Statutes to enhance the Department of Transportation's (DOT) authority regarding payments to subcontractors and the management of surety bonds. Specifically, it requires the DOT to adopt rules that outline the circumstances under which it can make direct payments to first-tier subcontractors. These circumstances include conditions such as the contractor not having requested payment in the past six months, the existence of a binding subcontract, the subcontractor having performed unpaid work, and the absence of disputes between the contractor and subcontractor. Additionally, any amounts paid directly to subcontractors must be deducted from the amounts owed to the contractor.

Furthermore, the bill introduces a new requirement for takeover agreements between the DOT and sureties in the event of a contractor default. The new provision mandates that the surety's completion contractor must meet the qualification requirements of the original contract bid and adhere to the established procedures for disbursing payments to subcontractors. The bill is set to take effect on July 1, 2026.