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Advocacy - What's New

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

SFAA Bill to Address Missouri Case Law on Bonding Public Works Projects Moving in the House 

Missouri HB 2453 would amend the existing procurement law to address bonding on projects when a construction manager agency is used in response to a recent state supreme court case.

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


 

Congressional Action Day Notice PostedOpen in a New Window

  The Congressional Action Day Notice has been posted for Members for the Capitol Hill Visits on May 23, 2018.

 

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.


 

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

 

Commercial Lines Modernization Bills Moving in the StatesOpen in a New Window

Commercial Lines Modernization Bills Moving in the States 
Members should visit Advocacy / General Info (Members) for more information.

 

SFAA Seeking Clarification on Illinois Bill for Subdivision BondsOpen in a New Window

SFAA Seeking Clarification on Illinois Bill for Subdivision Bonds 

Illinois HB 4531 would amend Section 3 of the Illinois Public Construction Bond Act and related county and municipal codes. Section 3 of the Bond Act is generally understood to pertain to instruments securing subdivision related work. This Section currently provides subdivision developers the flexibility of maintaining a locally filed surety bond or letter of credit, which exempts it from being required to furnish individual performance security for project improvements, so long as the filed security remains 110% of the work in progress and out for bid. Absent a filed bond, Section 3 also, currently, grants local governments the flexibility of requiring letters of credit, cash bonds, and surety bonds. This bill would remove cash bonds and filed security as options for subdivision improvement performance security. This bill would also remove a home rule preemption clause in Section 3, and would eliminate a requirement for counties or municipalities with a population under 1 million people to approve the surety on the bond. HB 4531 passed out of committee in the House to meet legislative deadlines.

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


 

Ohio Considering Occupational Licensing Reform Bill that Eliminates Specialty Contractor License ...Open in a New Window

Ohio Considering Occupational Licensing Reform Bill that Eliminates Specialty Contractor License Bonds 

Ohio HB 583 is an occupational licensing reform measure that would address municipal licensing requirements in addition to state licensing requirements. The bill would eliminate the authorization for municipalities to require specialty contractors, who must be licensed at the state level, to register with the municipality and post a bond. A bond is not required in connection with a state license for contractors. The bill also would prohibit political subdivisions from requiring licenses for any profession that already is required to obtain a license under state law. The bill also would address other occupational licensing issues such as disqualification from obtaining a license for having a criminal record, nonspecific moral character requirements, and licensing fees.

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


 

2018 Public Private Partnership (P3) State LegislationOpen in a New Window

2018 Public Private Partnership (P3) State Legislation 
Members should visit Advocacy / General Info (Members) for more information.

 

SFAA and AIA Opposing Proposed Bond Waivers in Rhode IslandOpen in a New Window

SFAA and AIA Opposing Proposed Bond Waivers in Rhode Island 

SFAA and AIA are opposing bond threshold legislation in Rhode Island pending under HB 7809/SB 2513 that would grant the chief purchasing officer the discretion to waive the state bond requirements for projects up to $250,000. The bill also would increase the state bond threshold for public works projects from $50,000 to $100,000.

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


 

Kansas Legislation to Prohibit Captives from Writing Surety EnactedOpen in a New Window

Kansas Legislation to Prohibit Captives from Writing Surety Enacted 
Kansas enacted a new law under SB 410, which amends the existing law to prohibit captives from writing surety. Prior law was silent on whether these entities can write this line of business.

 

Federal/State Regulatory Reports for March 2018 posted for MembersOpen in a New Window

 

Regulatory reports for March 2018 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 "Advocacy" / "Federal/State Regulations")


 

 

GAO Study Recommends Elimination of Self-Bonding for Mining ReclamationOpen in a New Window

In response to a request to the Government Accountability Office (GAO) from Members of Congress, the GAO conducted a study of the oversight of financial assurances for coal mine reclamation.

The study noted several challenges associated with self-bonding due to the difficulty of assessing the operator’s aggregate exposure in other states. The study recommended that Congress amend the Surface Mining and Coal Reclamation Act to eliminate the use of self-bonding.

The study also included data from the Office of Surface Mining Reclamation and Enforcement and state regulatory agencies. The study stated that regulatory agencies held $10.2 billion in financial assurance, with surety bonds accounting for 76% of that total ($7.8 billion). Almost half of that total surety bond amount comes from three states (Wyoming ($1.641 billion), Kentucky ($886 million) and Pennsylvania ($976.7 million)). “Self-Bonding” accounts for $1.2 billion of financial assurance.

The Members of Congress requesting this study were: Representatives (Sen. Maria Cantwell (DWA), Rep. Raul Grijalva (D-AZ), Rep. Alan Lowenthal (D-CA), Sen. Richard Durbin (D-IL), Rep. Matt Cartwright (D-PA), and Rep. Debbie Dingell (D-MI)).

 

End of Legislative Session Reports postedOpen in a New Window



End of 2018 Legislative Session report has been added for Alabama, Georgia, Idaho, Oregon, South Dakota and Wisconsin for Members only.

Previous updates were posted for Arkansas, Florida, Indiana, Mississippi, New Mexico, Oregon, Utah, Virginia, Washington, West Virginia and Wyoming.

Navigate to Advocacy / End of Legislative Session Reports

 

House Resolution Expresses Support for P3s at National ParksOpen in a New Window

House Resolution Expresses Support for P3s at National Parks 

U.S. H. Res. 794 provides that it is the sense of Congress that public-private partnerships (P3) should be utilized for projects to address infrastructure needs for national parks, national forests, and public lands and waters and for conservation efforts at these sites. P3s could be used to address modernizing and expanding campgrounds, increasing access to recreational areas, addressing backlogged maintenance, and improving deteriorating infrastructure, according to the resolution. The resolution notes that the federal government owns and manages roughly 640 million acres of land in the United States, including 59 national parks. Rep. Dennis Ross (R-FL) is the sponsor for the recently introduced resolution, which has one co-sponsor to date, Rep. Jackie Walorski (R-IN).

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


 

SFAA’s Efforts to Seek Bonding in Proposed Federal P3 Pilot Program Delayed until Next YearOpen in a New Window

SFAA’s Efforts to Seek Bonding in Proposed Federal P3 Pilot Program Delayed until Next Year 

SFAA's efforts to obtain bonding requirements in a proposed general aviation public-private partnership (P3) program to allow small airports—public and private—to improve their facilities will wait until next year. The federal assistance that can be awarded any airport under this legislation is limited to $500,000, and priority will be given to projects that will use best practices in developing or implementing a P3 project or that have an established P3 process. The program currently is in S. 1320 and H.R. 2879, but it will not be considered for inclusion in this year's Federal Aviation Authority reauthorization bill.

Members should visit Advocacy / 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 and AIA Have Increase of Vermont Bond Threshold to $500,000 Removed from BillOpen in a New Window

SFAA and AIA Have Increase of Vermont Bond Threshold to $500,000 Removed from Bill 

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


 

SFAA and AIA Defeated Onerous Reclamation Bond Bill in ColoradoOpen in a New Window

SFAA and AIA Defeated Onerous Reclamation Bond Bill in Colorado 

SFAA and AIA and our members locally defeated Colorado SB 63, which would have revised the current law to greatly expand the scope of the coverage required for the financial assurance that an operator of an oil or gas well must provide to secure the fulfillment of its obligations for the operation, closure, reclamation and post closure care for the wells. Surety bonds are among the forms of security accepted to meet this requirement.

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


 

Minnesota Legislation Would Eliminate Residential Trade Licensing and Bond RequirementsOpen in a New Window

Minnesota Legislation Would Eliminate Residential Trade Licensing and Bond Requirements 

Minnesota would eliminate consumer protections from license bonds in legislation that would repeal the licensing laws for residential building contractors, residential remodelers, residential roofers, manufactured home installers under HB 3872/SB 3448.

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


 

SFAA and AIA Opposing Proposed Bond Threshold Increase in Rhode IslandOpen in a New Window

SFAA and AIA Opposing Proposed Bond Threshold Increase in Rhode Island

SFAA and AIA are opposing bond threshold legislation in Rhode Island pending under HB 7809/SB 2513 that l would increase the state bond threshold for public works projects from $50,000 to $100,000. The bill also would grant the chief purchasing officer the discretion to waive the state bond requirements for projects up to $250,000. The bill would prohibit waiving bonds for projects exceeding $250,000.

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


 

Legislation Exempting Surety & Fidelity from Filing Requirements Enacted in West VirginiaOpen in a New Window

Legislation Exempting Surety & Fidelity from Filing Requirements Enacted in West Virginia 

The West Virginia Governor has signed SB 495, which exempts surety and fidelity, among several commercial insurance lines, from the rate and rule filing requirements in the existing law. Under prior law, rates and rules for these lines of business had to be filed under a file and use system with a 30 day waiting period. Such legislation benefits SFAA as an advisory organization, as well as SFAA members.

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


 

Commercial Lines Modernization Bills Moving in the StatesOpen in a New Window

Commercial Lines Modernization Bills Moving in the States 

Commercial lines modernization legislation is pending in Massachusetts (HB 2159), New York (SB 4719), New Hampshire (HB 1389), and Missouri (HB 1287/SB 594) that addresses exemptions from regulatory filing requirements, including surety and fidelity. Such legislation has been enacted in West Virginia (SB 495).

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


 

Minnesota Public-Private Partnership (P3) Bill Includes SFAA’s Bonding LanguageOpen in a New Window

Minnesota Public-Private Partnership (P3) Bill Includes SFAA’s Bonding Language 

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


 

Kansas Legislation to Prohibit Captives from Writing Surety Moving in LegislatureOpen in a New Window

Kansas Legislation to Prohibit Captives from Writing Surety Moving in Legislature 

Kansas SB 410 would amend the existing law to prohibit captives from writing surety. The bill passed out of committee in the House.

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


 

States Consider Legislation on Notary BondsOpen in a New Window

States Consider Legislation on Notary Bonds 

State legislatures continue to examine notary bond requirements, continuing on last year’s uptick in notary legislation. This year’s legislation is trending toward revisions to existing requirements rather than adopting the model legislation from the National Conference of Commissioners on Uniform State Law that states considered in 2017, which resulted in a new bond requirement in some states. Legislation is pending in Kentucky (SB 135/HB 333), Illinois (SB 3443), and Missouri (SB 1023/SB 2590). Legislation was enacted in West Virginia (SB 4207) and failed in Florida (SB 1042/HB 771).

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


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