N.J. Admin. Code § 6A:27-9.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 6A:27-9.6 - Performance surety bond

(a) A surety bond for the performance of contracts and contract renewals for transportation to and from school equal at least to the amount of one year of the contract shall be required by the district board of education. In the case of contracts for more than one year, the bond may be for an amount in excess of the proportionate annual contract amount as determined by the district board of education. The district board of education may require a performance surety bond furnished by a corporate surety company recognized by the State Department of Banking and Insurance as being authorized to do business in the State or may permit a personal surety bond.

1. Contracts awarded on a per diem basis shall be bonded in the per annum amount based on the actual number of days transportation is required by the school calendar or may be in the per annum amount based on 180 days.

2. Contracts for school-related activities transportation shall be bonded for an amount to be determined by the district board of education.

3. The district board of education may require a performance surety bond for quoted contracts pursuant to N.J.A.C. 6A:27-9.12.

4. Personal bonds shall be submitted on the personal surety bond form prescribed by the Commissioner. The bond shall be signed by at least two responsible sureties who are residents of New Jersey, neither of whom shall be a member of the district board of education, and shall include the multi-contract number(s) or route number(s) guaranteed by the bond.

i. The district board of education may reject an individual surety offer, and may request a certification that each individual's net worth is sufficient to guaranty the bond.

5. The corporate bond shall be issued in the name of the school bus contractor with whom the district board of education holds the contract and shall be signed by the contractor and authorized agent of the bonding company. The bond shall also include the multi-contract number(s) or route number(s) guaranteed by the bond.

(b) If it is necessary to replace an existing corporate or personal surety bond, the contractor shall furnish a new surety bond as required by the original bid. The contractor may substitute a corporate bond for a personal bond with the approval of the district board of education.

N.J. Admin. Code § 6A:27-9.6

Amended by R.2005 d.259, effective 8/1/2005.
See: 37 N.J.R. 851(a), 37 N.J.R. 2865(b).
In (a), rewrote the introductory paragraph, added paragraphs 1 through 3, recodified former paragraph 1 as 4, added paragraph 5; deleted former (b); recodified former (c) as (b), and rewrote the subsection.
Amended by R.2010 d.085, effective 6/7/2010.
See: 41 N.J.R. 4004(a), 42 N.J.R. 1029(a).
In the introductory paragraph of (a)4, inserted "and shall include the multi-contract number(s) or route number(s) guarantied by the bond"; in (a)4i, substituted "guaranty" for "cover"; and in (a)5, inserted the last sentence.
Amended by R.2013 d.121, effective 10/7/2013.
See: 45 N.J.R. 606(a), 45 N.J.R. 2245(a).
In the introductory paragraph of (a), inserted "equal at least to the amount of one year of the contract", and deleted "equal at least to the amount of one year of the contract" following the first occurrence of "education", ", at its discretion" preceding "require", and "of New Jersey" following "State"; in (a)1, deleted ", at the discretion of the district board of education," following "or"; in (a)3, deleted "at its discretion" following "may"; in (a)4, substituted "personal surety bond form" for "Personal Surety Bond form, as", deleted "of Education" following "Commissioner" and a comma following "sureties", and inserted a comma following "education"; and in (b), substituted "The contractor may substitute a" for "A", and deleted "may be substituted" preceding "for" and "by the contractor" preceding "with".

Amended by 53 N.J.R. 163(a), effective 2/1/2021