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Government Relations - General Information (Public)

Federal Construction Industry Procurement Reform Coalition Legislation for this CongressOpen in a New Window

Federal Construction Industry Procurement Reform Coalition Legislation for this Congress 
Members should visit Government Relations / General Info (Members) for more information.

 

States Interest in Public-Private Partnerships Remain High in 2017Open in a New Window

  States Interest in Public-Private Partnerships Remain High in 2017 
Members should visit Government Relations / General Info (Members) for more information.

 

Key P3 Stakeholder Group Urges U.S. EPA to Require Bonding for WIFIA-Financed ProjectsOpen in a New Window

  Key P3 Stakeholder Group Urges U.S. EPA to Require Bonding for WIFIA-Financed Projects 
Members should visit Government Relations / General Info (Members) for more information.

 

New Hampshire Bond Threshold Bill Amended to Lower Proposed IncreaseOpen in a New Window

New Hampshire Bond Threshold Bill Amended to Lower Proposed Increase 

As originally introduced, New Hampshire HB 371 would have increased the state bond threshold from $35,000 to $150,000. Following a committee hearing on the bill, with materials from SFAA, AIA state counsel has addressed the misconceptions about how much the bonds cost and whether the contractor or the public contracting entity pays the cost that some small contractors had raised. The bill has been amended so that the bond threshold is increased from $35,000 to $75,000 instead of $150,000. The bill also was amended to allow political subdivisions to opt-out of the bonding requirements. SFAA is reviewing the Little Miller Acts to assess this provision and will continue to work with AIA to address the bill.

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


 

This Week in Surety & Fidelity LegislationOpen in a New Window

SFAA has replaced the monthly overview reports with the weekly legislative update on Surety & Fidelity legislation.  Reports are available for Members on the Weekly Legislative Reports page.

Members may sign up to receive email notifications by subscribing to the "Legislative-Regulatory Alert" group.


 

 

New Mexico P3 Bills Introduced with SFAA and AIA’s Bonding ProvisionsOpen in a New Window

  New Mexico P3 Bills Introduced with SFAA and AIA’s Bonding Provisions 

Bills recently introduced in New Mexico to authorize State and local governments to use public-private partnerships (P3) include bonding provisions that SFAA and AIA previously obtained in prior sessions in addressing P3 bills.  These bills include SB 426 (tourism services buildings and facilities), SB 418 (behavioral health services buildings and facilities), HB 275 (all public works projects), and SB 143 (telecommunications infrastructure and public building projects for the conservation of natural resources).

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


 

SFAA Urges EPA to Include Bonding Requirements in Regulations to Implement WIFIAOpen in a New Window

SFAA Urges EPA to Include Bonding Requirements in Regulations to Implement WIFIA 

SFAA and NASBP submitted comments to the U.S. Environmental Protection Agency (EPA) to address an interim final rule to implement the Water Infrastructure Finance and Innovation Act (WIFIA). The law allows the EPA to provide secured loans and loan guarantees to eligible water infrastructure projects. The EPA will enter into credit agreements that are negotiated between the project sponsor and the EPA. The regulations largely deal with repayment of WIFIA loans and loan guarantees. The comments from SFAA and NASBP urge that the interests of the federal government should be protected on water projects, including when federal funds are at risk, through bonding requirements.

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


 

SFAA and AIA Addressing Bond Threshold Indexing in WisconsinOpen in a New Window

SFAA and AIA Addressing Bond Threshold Indexing in Wisconsin 

SFAA and AIA are working to eliminate the statutory indexing requirement for the Little Miller Act bond threshold in Wisconsin. The law provides a process in which the threshold may be adjusted for inflation every two years. We are seeking to eliminate the indexing and freeze the bond thresholds at the current levels and are working to pass these provisions in 2017.

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


 

SFAA & AIA Addressing Virginia Bill to Repeal Mandatory Pre-qualification When Bonds Are WaivedOpen in a New Window

SFAA & AIA Addressing Virginia Bill to Repeal Mandatory Pre-qualification When Bonds Are Waived 

SFAA, AIA, and its industry partners are addressing Virginia HB 2017, which would permit local governments to waive the mandatory prequalification requirement on non-transportation construction contracts between $100,000 and $500,000 when bonds are not required.

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


 

SFAA and AIA Seeking Bond Requirements in Indiana P3 LawsOpen in a New Window

SFAA and AIA Seeking Bond Requirements in Indiana P3 Laws 

SFAA and AIA are pursuing amendments to the P3 laws in Indiana for public facilities, the Department of Transportation, and the Indiana Finance Authority to require a performance bond and a payment bond. We also are seeking to revise the definition of "public funds" so that bonding will be required for P3s.

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


 

Bill for Alternative Project Delivery Returns in Illinois with SFAA Bonding ProvisionsOpen in a New Window

  Bill for Alternative Project Delivery Returns in Illinois with SFAA Bonding Provisions 

Legislation has been reintroduced in Illinois under HB 2755/SB 1320 that would authorize the use of the design-build and construction manager/general contractor project delivery methods for transportation facility projects. The bill specifies that these projects are subject to the Little Miller Act, a provision which SFAA and AIA obtained in last year’s bill.

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


 

Hawaii Legislation Attempts to Address Bonds from a Captive InsurerOpen in a New Window

  Hawaii Legislation Attempts to Address Bonds from a Captive Insurer 

Hawaii HB 1415/SB 1280 would address a situation involving a contractor that formed a captive insurer to write bonds and defaulted on a project. The bill would require the surety company issuing the bond to be independent from the parties that were awarded the bid. The bill would require the surety company to be listed on the Treasury Department's Circular 570. The legislation is intended to. The bill also would prohibit a surety company or bond company from being revoked or dismissed until 90 days after the completion of the project and the settlement of all claims, torts, and liens. SFAA is working to address this legislation and the problems that were the impetus for it.

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


 

Policy Agenda for Administration and Congress Begins to Take ShapeOpen in a New Window

Policy Agenda for Administration and Congress Begins to Take Shape 

Things are starting to take shape in the 115th Congress and the new Trump Administration as the Senate works through cabinet nominations and the House begins work on the budget.

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


 

Monthly Comprehensive Legislative Reports posted for MembersOpen in a New Window

   

Comprehensive Legislative Reports for February 2017 (Commercial Surety; Contract Surety; Fidelity) posted for Members only.

Or navigate to any of the following:


 

 

SFAA and AIA Oppose Bond Threshold Increase in North DakotaOpen in a New Window

  SFAA and AIA Oppose Bond Threshold Increase in North Dakota 

SFAA and AIA are seeking to defeat North Dakota SB 2146 would increase the bid, payment and performance bond thresholds from $100,000 to $150,000. The bill is being promoted as an effort make the laws consistent with other procurement-related thresholds, which were raised to $150,000 in the last session. The bill also may be a means of cutting costs for the State. The bill has passed the Senate and needs to be addressed in the House.

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


 

SFAA & AIA Seek Defeat of Virginia Bill to Repeal Mandatory Pre-qualification When Bonds are WaivedOpen in a New Window

  SFAA and AIA Seek Defeat of Virginia Bill to Repeal Mandatory Pre-qualification When Bonds are Waived 

SFAA, AIA, and its industry partners recently testified against Virginia HB 2017, which would unravel the compromise that SFAA and AIA reached in 2011 when the bond threshold was increased from $100,000 to $500,000 for non-transportation projects.  HB 2017, as introduced this year, would permit a local government to waive the prequalification requirement with a written determination that the waiver is in its best interests.  The bill has passed out of committee with an amendment to limit the waiver to ten non-transportation construction contracts in one year for Class A contractors only.  SFAA and AIA will address the bill on the House floor.

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

 

Federal/State Regulatory Reports for January 2017 posted for MembersOpen in a New Window

 

Regulatory reports for January 2017 have been posted on rules affecting Commercial Surety and Contract Surety that were recently proposed or adopted.

 For Members only (or from the menu, select "Government Relations" / "Federal/State Regulations")


 

 

SFAA Gears Up to Address Surety Issues in CongressOpen in a New Window

  SFAA Gears Up to Address Surety Issues in Congress  
Members should visit Government Relations / General Info (Members) for more information.

 

SFAA Warns NY Insurance Regulators of Negative Impact of New Commercial Crime Policy RequirementsOpen in a New Window

  SFAA Warns New York Insurance Regulators of Negative Impact of New Commercial Crime Policy Requirements 

The New York Department of Financial Services (Department) adopted regulations that prohibit commercial crime insurance policies from excluding coverage for losses caused by employees who have been convicted of a criminal offense, if the employer knew about the conviction prior to the loss and followed the procedure in the Corrections Law in determining whether to hire the person. SFAA objected to these regulations when they were proposed and urged the Department not to implement them. SFAA’s Crime Protection Policy is not intended to insure against unsound management practices, and the regulations may have the unintended result of making the coverage less available and/or more expensive.

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


 

D.C. City Council Passes Bill to Improve Bonding for Joint Ventures ProgramOpen in a New Window

  D.C. City Council Passes Bill to Improve Bonding for Joint Ventures Program 

SFAA successfully persuaded the District of Columbia City Council to introduce and pass LB 863, which is a bill that would revise a bond requirement in current law for joint ventures (JV) that include a certified business enterprise (CBE). The bill repeals a requirement for the bonds for the project that the joint venture performs to be provided by the CBE. The bill also repeals a provision that the CBE is solely and individually liable as the principal to the surety for at least 51% of each claim asserted under the bond. The bill was amended to require the CBE with the majority interest in the JV to demonstrate it has a bonding capacity equal to 51% of the total contract amount. The amended bill also includes reporting requirements for JVs regarding its income from the contract, as well as reporting requirements for DSLBD regarding its compliance enforcement practices. A CBE is a local, small, disadvantaged, or veteran-owned business. The bill now goes to the Mayor for signing, whose support SFAA already has obtained for enacting this bill.

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


 

SFAA Urges Bonding on Construction Projects Financed by EDA LoansOpen in a New Window

  SFAA Urges Bonding on Construction Projects Financed by EDA Loans

The Economic Development Administration (EDA )recently proposed rules that require construction projects financed by EDA loan guarantees to either require the lender to use a construction management company or the borrower to supply 100% payment and performance bonds. SFAA told the EDA that these two forms of security should not be alternatives, but rather be complementary forms of security. Use of a construction manager protects the lender and the EDA from fraud and provides risk management on projects undertaken under EDA loans. Only the surety bonds provide security that the construction contact will be performed and that subcontractors will be paid. Without the bonds, the EDA ultimately assumes the risk and loss if the contractor defaults.

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


 

Final Edition of the 2016 Annual State Legislative Reports postedOpen in a New Window

The Final Edition of the 2016 Annual State Legislative Reports for Commercial Surety, Contract Surety, and Fidelity have been posted for Members (or navigate to Government Relations / Annual State Legislative Reports).


 

SFAA & Local Partners Obtain Exclusion for Surety & Fidelity in Ohio Self-Insurance Pool LegislationOpen in a New Window

  SFAA and Local Partners Obtain Exclusion for Surety & Fidelity in Ohio Self-Insurance Pool Legislation Heading to the Governor 

The Ohio legislature has passed a bill that would allow state colleges and universities to establish joint self-insurance pools to provide several types property or casualty self-insurance to cover any other liabilities or risks of the pool’s members. Earlier in the year, SFAA and its local partners successfully had the legislation amended to exclude surety and fidelity from the kinds of coverage that these pools will be able to provide.

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


 

Federal Agencies Begin to Implement New Law on Individual SuretiesOpen in a New Window

   Federal Agencies Begin to Implement New Law on Individual Sureties

Federal agencies have begun to implement the change in the law for the assets that individual sureties can pledge. The Federal Acquisition Regulation (FAR) Council recently opened a FAR case and tasked its staff with developing amendments to the regulations regarding individual sureties. This will implement a change in the law that now requires individual sureties to pledge only “eligible obligations,” which are instruments backed by the federal government, to back their bonds. The new law also requires such assets to be deposited with the federal government. SFAA will review the proposed regulations when they are issued and submit comments to ensure that the law is implemented as intended.

In a separate action, the U.S. Department of the Treasury recently issued a Frequent Asked Questions (FAQs) document to explain what kinds of assets individual sureties can pledge and the process for placing the assets in a new individual account with the Federal Reserve Bank in St. Louis. SFAA submitted recommendations to clarify the FAQs with regard to the kinds of assets that can be pledged and to ensure that the FAQs only apply to individual sureties and not corporate sureties. We also noted that changes to the FAR still are needed.

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


 

State Legislative Reports postedOpen in a New Window


State Legislative Report posted  for Members
Members should navigate to Government Relations / Legislative Overview Reports.

Government Relations - General Info (Public)

Item Name Posted By Date Posted
SFAA and AIA Working with Indiana Attorney General PDF (81.72 KB)  more ] Administration 2/23/2016
Bond Waiver Bill Resurfaces in Cuyahoga County, OH PDF (156.11 KB) Administration 2/9/2016
Wisconsin - New Draft of Surety Indexing Bill ... PDF (142.4 KB)  more ] Administration 1/27/2016
Proposed Bonding Amendments for Federal Water ... PDF (142.93 KB)  more ] Administration 1/27/2016
Oklahoma - Transportation & Public Facility P3... PDF (156.37 KB)  more ] Administration 1/27/2016
Congress and States Start to Convene 2016 Sessions PDF (166.5 KB)  more ] Administration 1/7/2016
President Signs Two Surety Provisions into Law PDF (149.47 KB)  more ] Administration 11/30/2015
Final Congressional Conference Report on NDAA ... PDF (149.44 KB)  more ] Administration 9/30/2015
President Signs 3-Month Extension to Highway Act PDF (149.84 KB) Administration 8/3/2015
US House Makes First Move on Extending Highway ... PDF (163.37 KB)  more ] Administration 7/15/2015
Congress Gives VA Construction Short Term Patch PDF (38.06 KB) Administration 6/18/2015
IL Bond Form for Commercial Drivers License Test.. PDF (95.59 KB)  more ] Administration 6/12/2015
Federal Construction Coalition Procurement ... PDF (108.85 KB)  more ] Administration 6/9/2015
Nevada Adjourns - Update on Key Surety Legislation PDF (108.66 KB) Administration 6/9/2015
New York $500,000 Bond Threshold Bill to be Heard PDF (108.55 KB) Administration 6/8/2015
Construction Coalition Bill Introduced in Senate PDF (109.15 KB) Administration 6/5/2015
Congress Extends Funding for VA Hospital Project.. PDF (108.96 KB)  more ] Administration 5/26/2015
Congress Heads to Recess without a Solution to ... PDF (121.69 KB)  more ] Administration 5/21/2015
Short Term Extension Likely for Highway Trust Fund PDF (110.28 KB) Administration 5/21/2015
Connecticut Nullum Tempus Bill Passes Legislature PDF (109.32 KB) Administration 5/20/2015
SFAA Comments on Commerce Dept. Bond Waivers ... PDF (95.65 KB)  more ] Administration 5/19/2015
Bills to Transfer Control of VA Construction ... PDF (94.18 KB)  more ] Administration 4/30/2015
Connecticut Nullum Tempus Bill Amended Favorably PDF (96.38 KB) Administration 4/7/2015
New Commercial Surety Bond Opportunity Passes ... PDF (95.5 KB)  more ] Administration 3/31/2015
Sureties in Iowa Fight Bond Waiver PDF (95.62 KB) Administration 3/18/2015
CT Nullum Tempus Bill to be Heard in Committee PDF (109.05 KB) Administration 3/4/2015
SFAA Participates in Joint Trade Comments on ... PDF (62.65 KB)  more ] Administration 2/12/2015
US House Small Business Subcommittee Hearing... PDF (1.17 MB)  more ] Administration 2/12/2015
Congress Enacts New Bond Requirement for ... PDF (50.72 KB)  more ] Administration 1/5/2015
Infrastructure Bills Are Moving in New Jersey PDF (65.83 KB) Administration 12/19/2014
Threshold for Payment Security under Miller Act PDF (64.75 KB)  more ] Administration 12/12/2014
Surety Issues in Congress Wait Until Next Year PDF (54.55 KB) Administration 12/11/2014
Summary of Mid-Term Election Results PDF (50.47 KB) Administration 11/5/2014
Treasury Dept. Issues Final Rules on Sureties ... PDF (65.06 KB)  more ] Administration 10/22/2014
Annual Legislative Report: Fidelity PDF (68.75 KB) Administration 8/29/2014
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