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Legislative, Regulatory and Other News at a Glance for Grassroots Action
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Currently forty-four legislatures are in session: Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Federal, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
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State Report
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Bid Bond
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Alabama Senate Bill 175
AL SB 175 (Allen) raises the current bid bond amount to no more than $50,000. The current maximum amount required for a bid bond is $10,000. SB 175 was reported favorably by the Senate Transportation, Utilities, and Infrastructure Committee on February 23.
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Bond Threshold Increase
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Connecticut House Bill 5487
CT HB 5487 (Joint Committee on Planning and Development) raises the current bond threshold in Conn. Gen. Stat. §§ 49-41, the state's Little Miller Act, from $100,000 to $200,000. HB 5487 was heard in committee on March 4. NASBP sent a letter in opposition to the measure. We will continue to track this bill and keep members apprised of any updates.
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Cuyahoga County, Ohio Ordinance 2016-0006
Cuyahoga County O2016-0006 establishes a county-run Risk Management program and waives performance and payment bonds on county projects under $250,000. This is similar to an ordinance proposed by the County in 2013. That ordinance was withdrawn pending the completion of a Disparity Study, which has now been finalized. The study found that between 2009 and 2012, minority-owned businesses received only 1.4% of County contracts. This ordinance, along with several others, is the County's attempt to remedy this disparity.
State Government Affairs Representative Lou Colagrossi of NASBP Member Firm Dawson Insurance testified regarding the importance of bonding on public works project at the first hearing of the ordinance. Despite this, the ordinance is likely to pass. NASBP will continue to work with members in Ohio to ensure bonding education continues to be offered to small and emerging contractors.
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Washington House Bill 2129
WA HB 2129 (Santos) attempted to raise the bonding threshold in RCW 39.08.010, the Little Miller Act, from $35,000 to $150,000. NASBP sent the committee a letter opposing the legislation. HB 2129 failed to pass out of its chamber of origin before the crossover deadline and is effectively dead for this session.
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Bonding Assistance Program
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California Assembly Bill 2270
CA AB 2270 (Bonta) establishes a statewide contractor bonding program, to be administered by the Office of Small Business and Disabled Veteran Business Enterprise Services, for the purpose of enabling participating contractors to meet any applicable bid, payment, or performance bonding requirements for public contracts with state agencies. This bill would authorize the office to act as guarantor on surety bonds for participating contractors on contracts with state agencies and require the office to provide specified technical assistance to participating contractors.
NASBP has alerted our California members who are working with the Local Surety Association. A public hearing on the bill is tentatively scheduled for March 20.
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Public-Private Partnerships
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Kentucky House Bill 309
KY HB 309 (Combs) would establish P3 authorization in the state for the development of public works projects by state governments. As introduced the P3 agreements would require "delivery by the private partner of maintenance bonds, performance and payment bonds, warranties, guarantees, and optional letters of credit in connection with its activities under the agreement, in the forms and amounts satisfactory to the local government and in amounts necessary to provide adequate protection to the local government". HB 309 passed the House on February 11 and was referred to the Senate Committee on Economic Development, Tourism, & Labor.
NASBP Kentucky members have been able to offer an amendment, supported by the surety industry, to the bill to ensure the bonds on P3 agreements comply with the Kentucky Little Miller Act. NASBP will continue to keep members posted on the status of this legislation.
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Oklahoma Senate Bill 1316
OK SB 1316 (Sparks) creates the Oklahoma Public and Private Facilities and Infrastructure Act, authorizing the state to enter into P3 agreements. Agreements would require "delivery of letters of credit or other security in connection with the development or operation of the qualifying project, in the forms and amounts satisfactory to the responsible governmental entity, and delivery of performance and payment bonds required for all construction activities." SB 1316 was reported out of the General Government Committee favorably on February 22.
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Tennessee Senate Bill 2093
TN SB 2093 (Ketron) authorizes state and local entities to enter into public-private partnership (P3) agreements for transportation projects. P3 agreements require the delivery of performance and payment bonds or other forms of security in connection with the development, redevelopment, or operation of the qualifying transportation facility, in the forms and amounts satisfactory to the responsible public entity. SB 2093 is scheduled for a committee hearing on March 7 in the Senate Transportation and Safety Committee.
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