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Small & Emerging Contractors

 

What's New: Government Affairs

Multiple Government Affairs updates posted

Wednesday, April 19, 2017  
 

Indiana Bill to Increase Bond Threshold for State Educational Institutions Sent to Governor

Indiana HB 1117 provides that contractors would not have to furnish a performance bond or a payment bond on public works contracts under $500,000 with a state educational institution if the institution agrees to waive the bond requirement. As introduced, the bill dealt only with partial release subdivision bonds, and the bill now on the Governor’s desk still contains those provisions.

Members should visit Government Relations / General Info (Members) for more information.  

SFAA Addressing Little Miller Act Bills in Tennessee 

Tennessee SB 681 revises Tennessee’s Little Miller Act so that the bonds required for public construction contracts must be for a minimum of 25% of the contract price. Under prior law, the bonds had to be equal to 25% of the contract price. HB 1036/SB 884 would increase the bond threshold from $100,000 to $200,000 for contracts let by the State Building Commission for state building projects. SFAA is working to defeat the bill.

Members should visit Government Relations / General Info (Members) for more information.

Montana P3 Bill Amended with Exemption from Bonding and Other Procurement Laws

Montana SB 335, as originally introduced, would grant state and local governments the authority to use P3s for transportation and public facilities. The bill required that the P3 agreement contain specifications for the delivery of maintenance, performance and payment bonds, as well as letters of credit, in connection with the development or operation of a P3. The responsible public entity would determine the form and amount for the construction portion of the P3. SFAA and AIA have been seeking bonding amendments to clarify these provisions. The bill was amended in committee in the House so that bonding, prevailing wages, and many other requirements of the procurement code would not apply to P3s. The amended bill also eliminated authority for P3s for transportation projects and technology infrastructure. Although the bill got out of committee in the House, it appears that it may have died on the House floor.

Members should visit Government Relations / General Info (Members) for more information.

 

Colorado Bill Addressing Contractor Qualifications Moving

Colorado SB 211 provides that if contractors required to provide a bid bond can furnish the bond in the amount required by the solicitation or otherwise required by law, the Department of Transportation (DOT) would be prohibited from eliminating the contractor from consideration of an award on the basis of any financial statement that the contractor submitted for the DOT’s contractor prequalification determination process.

Members should visit Government Relations / General Info (Members) for more information.

 

Bond Threshold Bill Headed to Governor’s Desk in Washington

Washington SB 5734 would increase the bond threshold from $35,000 to $150,000. Under existing law, on contracts under the bond threshold, the contractor may opt for retainage in lieu of a bond. The bill would reduce the amount that can be retained in lieu of a bond from 50% to 10% of the contract amount. The bill has been sent to the Governor.

Members should visit Government Relations / General Info (Members) for more information.

 

States Consider Model Law on Notaries with Bonding Requirements

In 2017, some states have introduced bills this year to implement the Revised Uniform Law on Notarial Acts from the National Conference of Commissioners on Uniform State Law (NCCUSL). The revised model now contains a provision that is optional for the states to enact that requires the notary to post a bond or its functional equivalent and leaves it to the state to decide the amount required. The model gives the state agency implementing the law the authority to determine what forms of security would be accepted through regulations. Since the 2010 revisions to the Uniform Act states have moved to incorporate the NCCUSL amendments. In a few states, this has led to a new bonding requirement. This year, however, we are seeing states reconsider and increase their bonds amounts. Bills were introduced in: Idaho (HB 125/HB 209), Indiana (SB 539), Kentucky (HB 218/HB 539), Minnesota (SB 893/HB 1609), and Washington (SB 5081).

Members should visit Government Relations / General Info (Members) for more information.

 

Oklahoma P3 Bills Moving to Create “Centers of Excellence” for State and Local Projects

In Oklahoma, two bills are moving that would establish a state level and a local level P3 agency.  SB 430 would create the Office of Public‑Private Partnerships (OP3) and a Partnership Committee for state P3 projects and HB 1534 would authorize local governments to form a Local Partnership Committee for local P3 projects.  These entities would be charged with reviewing proposals for public projects to determine if a P3 would be the best method for delivering the project.  Both bills provide that the requirements for the P3 must be in the P3 agreement, and the OP3 will develop the requirements.  Both bills specify that the agreement could include requirements for performance and payment bonds for all construction activities.  Bonds or other security also could be required for the other portions of the project. 

Members should visit Government Relations / General Info (Members) for more information.

 

New Hampshire Bond Threshold Bill Moving with Lower Threshold Increase

New Hampshire HB 371, as amended, would increase the bond threshold from $35,000 to $100,000.  Originally, the bill would have increased the threshold to $150,000, but passed the House with an increase to $75,000.  An agreement was reached in the Senate to increase the threshold to $100,000 and remove provisions that would have permitted political subdivisions the option of applying the state bond threshold. 

Members should visit Government Relations / General Info (Members) for more information.


SFAA Fighting Bills that Reduce Consumer Protections in Motor Vehicle Dealer Bonds in Oregon

SFAA and AIA are opposing bills in Oregon that would reduce consumer protection under motor vehicle dealer bonds. SB 974 would remove the cap on claims from non-retail customers and HB 2975 provides for awards of penalties attorneys’ fees. HB 3323 increases the bond amount from $40,000 to $100,000, which could reduce the bond’s availability.

Members should visit Government Relations / General Info (Members) for more information.

 

SFAA Defends Bail Bonds in the States

SFAA is opposing legislation that essentially make bail bonds the option of last resort by establishing pretrial services programs, permitting the use of unsecured personal bonds, or by permitting partial cash deposits to be posted in lieu of bail bonds. We have argued that these bills would restrict a useful tool for the State to ensure the defendant’s appearance in court. We currently are addressing bills in California, Connecticut, Maine, and Texas.

Members should visit Government Relations / General Info (Members) for more information.




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