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What's New: Government Affairs

Multiple Government Affairs updates posted

Tuesday, March 21, 2017  
 

SFAA Addressing Bonding Requirements in Port Authority Bills in Florida and Oregon

Oregon HB 2750, which would allow the Port of Hood River to conduct tollway projects within its district. The bill would allow private entities to own and operate the tollway in an agreement with the port. Except for the prevailing wage laws, the bill would exempt these projects from the existing public procurement laws for construction contracts so that the Little Miller Act would not apply. SFAA is seeking amendments to require bonding for these projects.

In Florida, HB 737 would renew the charter for the Port of Palm Beach District. SFAA reviewed the bonding issue and under current law, under which the port authority is a political subdivision of the State. Political subdivisions are subject to the Little Miller Act.

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

 

States Interest in Public-Private Partnerships Remain High in 2017

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

 

SFAA and AIA Opposing Bond Threshold Increase for Indiana Educational Institutions

Indiana HB 1117 has been amended in the Senate to provide 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. Originally, the bill only pertained to the partial release of a subdivision bond. The bill passed the Senate and has been sent to the House for approval. SFAA and AIA are opposing the bill.

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 model provides that the notary must 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. Bills currently are pending 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.

Pennsylvania Bill would Eliminate Discretionary Security Requirements in Little Miller Act

In Pennsylvania, SB 493 would revise the Little Miller Act to repeal the broad discretion granted to state and local public contracting entities to accept "any financial security" to secure performance and payment obligations, and to set forth specific acceptable forms of security. The bill would limit the security that may be furnished to performance and payment bonds, letters of credit, or escrow accounts in an amount equal to 100% of the contract.

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

 

Recently Introduced P3 Legislation

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

 

SFAA Addressing Little Miller Act Bills in Tennessee

Tennessee 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.

Legislation also has been introduced under SB 681/HB 981 that would revise Tennessee’s Little Miller Act so that the bonds required for public construction contracts would have to be for a minimum of 25% of the contract price. Currently, the bonds must be equal to 25% of the contract price.

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

 

P3 Bill Sent to Governor in Utah

Legislation has passed in Utah under SB 204 that would make minimal revisions to the existing public procurement code to authorize state and local procurement units to use public-private partnerships (P3) for public works projects. The bill does not specify any additional requirements for the P3 other than what is in the existing law, which includes the Little Miller Act. The bill is on the Governor’s desk for signing.

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

 

SFAA and Industry Partners Obtain Changes in Virginia Contractor Prequalification Bill Sent to Governor

Virginia HB 2017 is heading the Governor’s desk. Under existing law, for non-transportation public construction contracts that exceed $100,000 and are less than $500,000, contractors must be prequalified under the existing law's standards when bonds are not required. The bill provides that a locality may waive the requirement for prequalification of a bidder upon a written determination made in advance that waiving the requirement is in the best interests of the locality, but only under the following circumstances: 1) the bidder has a current Class A contractor license; 2) the contract amount is in excess of $100,000 but less than $300,000; 3) the locality cannot enter into more than ten such construction contracts per year; and 4) the provisions for waiving the prequalification would expire on July 1, 2021.

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



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