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Government Relations - What's New (Public)

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General Government Relations Information for the Public:



 

SFAA Bill to Address Missouri Case Law on Bonding Public Works Projects IntroducedOpen in a New Window

SFAA Bill to Address Missouri Case Law on Bonding Public Works Projects Introduced 

Missouri HB 2453 would amend the existing procurement law to clarify that bonds are require when a construction manager agency is used.

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


 

Illinois Proposed Rules for Insurance Company Bonds Contain Provisions SFAA SoughtOpen in a New Window

Illinois Proposed Rules for Insurance Company Bonds Contain Provisions SFAA Sought 

The proposed rules that the Illinois Department of Insurance has issued contain provisions implementing changes SFAA has long sought to make the bonds required for insurance companies to cover their employees and officers more workable. The proposed rules would eliminate the minimum discovery period in the bond and would instead require the coverage to be on a “discovery basis.” The proposed rules also would change the required bond amount so that it would be based on the guidance in the National Association of Insurance Commissioners Financial Condition Examiners' Handbook. Currently, the bond amount is based on the amount of admitted assets of the company (as determined from year to year) filed with the Department in the company’s annual statement.

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


 

This Week in Surety & Fidelity LegislationOpen in a New Window

The Weekly Legislation Report posted has been posted.  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.


 

Indiana Bill to Require Bonding in P3s Goes to StudyOpen in a New Window

Indiana Bill to Require Bonding in P3s Goes to Study 

Indiana HB 1301, as introduced, contained the amendments that SFAA drafted to require the design and construction portion of P3s to be bonded in Indiana. Our bonding amendments were part of the Insurance Department’s bill, and would have required 100% bonds, just as the Indiana Little Miller Act requires for any other project. In the House Insurance Committee, the bill was amended to require 50% payment and performance bonds, and on second reading on the House floor, the bond amount was further reduced to 25% before it later passed the House. It was not possible to reach an agreement to move HB 1301 forward in the Senate. It is likely that the issue of bonding on P3 projects in Indiana will be sent to a summer study committee, which is where the issue was last summer.

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


 

Trump Administration Releases Infrastructure Plan and FY 2019 Budget RequestOpen in a New Window

Trump Administration Releases Infrastructure Plan and FY 2019 Budget Request 

The White House released the Trump Administration’s infrastructure plan that is aimed stimulating $1.5 trillion in new investment over the next ten years based on the federal government’s contribution of $200 billion in federal funding. In some respects the plan is similar to the six-page document that previously was leaked, but the new 55-page plan provides more details. We expect legislation will be introduced in Congress in the near future.

The federal government’s $200 billion in funding will be allocated among five existing federal programs as follows:

  • $100 billion to create an Incentives Program under which federal grants would be given to infrastructure projects funded by new sources of long-term, nonfederal revenue generated by the state and local governments and from the private sector.
  • $20 billion for a Transformative Projects Program for “bold and innovative projects that have the potential to dramatically improve America’s infrastructure.”
  • $20 billion to expand infrastructure financing programs, with $14 billion going to expanding existing loan and credit programs: Transportation Infrastructure Finance and Innovation Act (TIFIA), Water Infrastructure Finance and Innovation Act (WIFIA), Railroad Rehabilitation and Improvement Financing (RRIF), and rural utility lending, and $6 billion going to Private Activity Bonds (PABs).
  • $10 billion will go to a new federal Capital Revolving Fund to address the leasing of federal real property, which would be more cost-effective to purchase.
  • $50 billion to a new Rural Infrastructure Program from which 80% of the funds will be given state governors to distribute. The remaining 20% of the funds will be distributed through rural performance grants.

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


 

Comprehensive Legislative Reports posted for MembersOpen in a New Window

 

Comprehensive Legislative Reports for Commercial Surety, Contract Surety and Fidelity posted for Members.

Navigate to:


 

SFAA’s Bill to Address Attorneys’ Fees Awards in Bond Claims is Heard in CommitteeOpen in a New Window

SFAA’s Bill to Address Attorneys’ Fees Awards in Bond Claims is Heard in Committee 

Washington SB 6428/HB 2852 would place reasonable limits on the award of attorney fees’ against sureties. The bill provides that the rights granted under current procurement law would be the exclusive remedy for recovering attorneys' fee for all disputes, including but not limited to coverage disputes involving a performance or payment bond required under the Little Miller Act. HB 2852 has been heard in committee in the House.

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


 

SFAA’s Bill to Require Bonding for P3s in Indiana Passes HouseOpen in a New Window

SFAA’s Bill to Require Bonding for P3s in Indiana Passes House 

Indiana HB 1301, which would amend the three existing P3 laws to require bonding, has passed the House.  For these projects, the bill would require a performance bond in an amount equal to at least 25% of the cost to design and construct the project and a payment bond that is conditioned on payment for labor and material furnished for use in the construction of the project.  The bill was amended prior to passage in the House to reduce the bond amount.

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


 

SFAA’s Bill to Require Bonding for P3s in Indiana Moving in the House with AmendmentsOpen in a New Window

  SFAA’s Bill to Require Bonding for P3s in Indiana Moving in the House with Amendments 

Indiana HB 1301 would amend the three existing P3 laws to require bonding. For these projects, the bill would require a performance bond in an amount equal to at least 25% of the cost to design and construct the project and a payment bond that is conditioned on payment for labor and material furnished for use in the construction of the project. The bill was amended on second reading in the House to reduce the performance bond amount to 25% and it is expected to pass the House soon with this change.

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


 

SFAA Pursuing Elimination of Indexing of Miller Act Bond ThresholdOpen in a New Window

SFAA Pursuing Elimination of Indexing of Miller Act Bond Threshold 

SFAA, AIA, and NASBP are seeking the enactment of H.R. 4486 to exempt the Miller Act bond threshold from the required indexing of all federal government acquisition thresholds. All government acquisition thresholds are reviewed for inflation every five years. The current Miller Act bond threshold is $150,000 and could be increased to $200,000 in 2020.

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


 

Final Edition of the 2017 Annual State Legislative Reports postedOpen in a New Window

The Final Edition of the 2017 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).


 

End of Legislative Session Reports postedOpen in a New Window



End of 2017 Legislative Session report has been updated for New Jersey and Virginia for Members only.

Previous reports posted for 2017:  Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

Navigate to Government Relations / End of Legislative Session Reports

 

SFAA Comments on California Surface Mining Bond FormsOpen in a New Window

SFAA Comments on California Surface Mining Bond Forms 

SFAA recommended that the California State Mining and Geology Board retain its surety bond forms for financial assurance for surface mining operations in their current form. SFAA’s comment were in response to a pending revision to the bond condition so that the bond only would be released after all of the relevant agencies have concurred that the requirements for the reclamation plan have been met. Currently, the bond only is conditioned on the completion of the reclamation.

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


 

SFAA Persuades Florida Agency to Drop A+ Surety Requirements in Financial Assurance RegulationsOpen in a New Window

SFAA Persuades Florida Agency to Drop A+ Surety Requirements in Financial Assurance Regulations 

The Florida Department of Environmental Protection (Department) agreed to remove a provision in its revised financial assurance regulations for mitigation banks that would have required the sureties issuing bonds to have an "A+" rating from A.M. Best. To make the bond more widely available, SFAA recommended that the surety should only be subject to licensure by the insurance department, and that if the Department includes a rating requirement, a minimum “A-” rating would be sufficient. The Department agreed to the “A-” rating requirement. The existing regulations currently require an “A” rating.

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


 

Bill to Address Attorneys’ Fees Awards in Bond Claims Introduced in WashingtonOpen in a New Window

  Bill to Address Attorneys’ Fees Awards in Bond Claims Introduced in Washington 

SB 6428 has been introduced in Washington, which would place reasonable limits on the award of attorney fees’ against sureties. The bill provides that the rights granted under current procurement law would be the exclusive remedy for recovering attorneys' fee for all disputes, including but not limited to coverage disputes involving a performance or payment bond required under the Little Miller Act.

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


 

Federal Construction Coalition Change Order Bill Reintroduced in CongressOpen in a New Window

Federal Construction Coalition Change Order Bill Reintroduced in Congress 

H.R. 4754 would require that every solicitation for a contract to be awarded to a small business, the agency must provide prospective bidders with the agency’s policies or practices for compliance with the FAR regulations on REAs. The agency must also provide information on its past practices for the past three years. If the agency does not have information on its past practices regarding on REAs, the agency must start collecting that information for a three year period. The agency must collect data on whether they responded to a REA within 30, 60, 90, 180 or 36 days from receipt of the REA or whether the agency responds to REAs after the completion of the contract.

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


 

SFAA Addresses Proposed Rules in Mississippi on Energy Efficiency ProgramsOpen in a New Window

 

SFAA Addresses Proposed Rules in Mississippi on Energy Efficiency Programs

SFAA submitted comments to the Mississippi Development Authority to address its proposed
regulations for energy service providers (ESP) that provide energy efficient programs. The
Authority would pre-qualify the ESPs, but could grant conditional status to ESPs that did not
qualify. Such ESPs would have to obtain performance and payment bonds. SFAA
recommended a broad application of bonding to all ESPs so that all public entities, taxpayers and
subcontractor and suppliers obtain the benefits of prequalification and payment security.

The regulations would require bonding in compliance with the Little Miller Act, which requires a
100% bond, for the duration of the contract. To make bonding more widely available, SFAA
recommended a bond with a one year term that would be equal to 100% of the annual guaranteed
savings under the contract for the first year. The bond could be renewed for a term not to exceed
three consecutive years under our proposal. This would allow the surety to better evaluate the
ESP’s ability to perform the contract, and three years would be sufficient for a “proof of
concept” for the energy savings measures.

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


 

FAR Council Delays Plans to Implement New Law on Individual Surety AssetsOpen in a New Window

FAR Council Delays Plans to Implement New Law on Individual Surety Assets 
Members should visit Government Relations / General Info (Members) for more information.

 

Updates on P3 Bills in MichiganOpen in a New Window

Updates on P3 Bills in Michigan 

Michigan is winding down it 2017 legislative session and SB 97, the P3 legislation, may not pass this year. SFAA and AIA are seeking a bonding requirement in the legislation, which would authorize P3s for transportation projects, health care facilities and laboratories. This is a key initiative of the Governor, who has opposed our bonding amendments. There is division among the Republicans in the House on the concept of P3s however, as some believe the bill authorizes government agencies to award contracts, which the taxpayers fund, to private entities for profit and with little accountability.

Michigan SB 711 also recently was introduced. The bill amends the existing law on port authorities to allow the use of P3s for their projects, which include construction, reconstruction, rehabilitation, remodeling, enlargement, and repair of port facilities, among other projects. There are no specific bonding requirements in the existing port authority law. The Michigan Little Miller Act, however, applies to “public authorities,” among many other governmental entities.

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


 

SFAA Persuades Pennsylvania Agency to Delete Confess Judgment Provision from Real Estate ...Open in a New Window

SFAA Persuades Pennsylvania Agency to Delete Confess Judgment Provision from Real Estate Appraisal Management Company Bond 
Members should visit Government Relations / General Info (Members) for more information.

 

SFAA Addresses Concerns in Proposed Federal Hard Rock Mining RulesOpen in a New Window

SFAA Addresses Concerns in Proposed Federal Hard Rock Mining Rules 

The U.S. Environmental Protection Agency has withdrawn the rules that it had proposed to establish financial responsibility requirements for hard rock mining operations for metals and non-metallic fuel minerals to implement §108(b) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Surety bonds would have been accepted to meet the requirement. The financial responsibility would have had to cover response costs, health assessment costs, and natural resource damages. The proposed rules set forth a formula for determining the amount of financial responsibility required.

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


 

Michigan P3 Bill Moving in the HouseOpen in a New Window

Michigan P3 Bill Moving in the House 

SFAA and AIA continue to seek bonding amendments for Michigan SB 97, which would authorize the State and local units of government to enter into public-private partnerships (P3s) for transportation projects and health care facilities or laboratory facilities. The bill provides that the P3 agreement may contain provisions to require the private partner or one of its contractors to provide proposal, performance, or payment security. The bill provides that the security, if required, would have to be in the amount that the public authority determines, and can be in the form of bonds, guarantees, letters of credit, committed equity, or any other type of financial instrument, or any combination of these to meet security requirement. The bill recently passed out of committee in the House and sits in third reading on the House floor.

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


 

New Bonding Opportunities posted for MembersOpen in a New Window


New bonding opportunities enacted in the state legislature that may be of interest to SFAA members has been posted. The report is divided by line of business: contract surety, commercial surety, and fidelity bonds. For your reference, we have included the date of enactment for each bill. SFAA updates this list periodically as new bonding opportunities are enacted. 
Access the New Bonding Opportunities now

 

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

 

Regulatory reports for October 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")


 

 

Provisions to End Federal Miller Act Indexing Removed from Defense Policy BillOpen in a New Window

Provisions to End Federal Miller Act Indexing Removed from Defense Policy Bill 
Members should visit Government Relations / General Info (Members) for more information.

Government Relations - General Info (Public)

Item Name Posted By Date Posted
US Dept. of Labor accepts SFAA proposed ERISA form PDF (198.39 KB)  more ] Administration 3/3/2017
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

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