Public works contracts; increase the threshold for performance and payment bonds.

SB 2574 raises the threshold for requiring performance and payment bonds on public construction contracts from an unspecified lower amount to $50,000. This means state, county, city, or public authority contracts for building, altering, or repairing public works under $50,000 will no longer need these bonds. Instead, the public body may make a single cash payment after project completion, simplifying the process for smaller projects. The bill directly affects contractors and public agencies handling public works contracts valued at $50,000 or less, effective July 1, 2025.