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What's New: Government Affairs

Multiple Government Affairs updates posted

Friday, March 31, 2017  
 

SFAA and AIA Opposing Bond Threshold Increase for Indiana Educational Institutions

SFAA and AIA are opposing Indiana HB 1117, which as amended provides that state higher educational institutions can waive payment and performance bonds on public works contracts under $500,000. As originally introduced and passed in the House, the bill dealt only with the partial release of a subdivision bond.

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. 

 

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.

 

Little Support for Allowing Political Subdivisions in New Hampshire Opt-Out of Bond Threshold Requirements

New Hampshire HB 371 would increase the bond threshold from $35,000 to $75,000.  Originally, the bill provided for a $150,000 threshold.  The bill still would permit political subdivisions to opt out of the bonding requirements as they contend they are best qualified to decide whether bonding is needed on their projects.

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

 

Bill Changing North Dakota CM-at Risk Bond Requirements Sent to Governor

North Dakota SB 2146 increases the state bond threshold for public improvement contracts from $100,000 to $150,000. SFAA and AIA opposed the bill, but arguments to make the threshold consistent with other recently increased procurement thresholds prevailed.

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

 

Oklahoma Bill to Permit Bond Waivers for State Agencies Moving

Oklahoma SB 672 would authorize the Governor to designate a state agency as an enterprise agency for five years, which would grant the agency relief for several laws and regulations, including bonding requirements for public building projects.

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

 

Wisconsin Considering Changes to Local Public Official Bond Requirements

Two bills have been introduced in Wisconsin that would allow local governments to determine the bonding requirements for local public officials. AB 168 would allow a city’s common council and village boards to decide if bonds are required for their public officials. Insurance would be required if bonds are not. SFAA will question whether this is the best protection to have in place. AB 169 would change the bond amounts for required of town, city, or village treasurers so that the bond is equal to at least the amount of state and county taxes apportioned to the town, village, or city. Under current law, the bond must be for double this amount. The bill would repeal the provisions permitting the use of personal sureties and the associated caps on the bond amount when personal sureties are used.

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

 

Virginia Enacts New License Bond Requirement for Construction Contractors

Virginia SB 1113 requires Class A and Class B contractors to post a $50,000 license bond or provide financial statements demonstrating a minimum net worth.

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

 

North Dakota Increases State Bond Threshold

North Dakota SB 2146 increases the state bond threshold for public improvement contracts from $100,000 to $150,000.  SFAA and AIA opposed the bill, but arguments to make the threshold consistent with other recently increased procurement thresholds prevailed.

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

 

Oklahoma Bill to Create P3 “Center of Excellence” Moving with Bonding Amendment

Oklahoma SB 430 would create the Office of Public-Private Partnerships and a Partnership Committee that would be charged with reviewing and evaluating proposals for state P3 public projects. The bill provides what the P3 agreement would have to include generally, which would include requirements for "financial assurances." The bill was further amended to provide that the P3 agreement also could include requirements for performance and payment bonds for all construction activities. Other forms of security would be accepted for the other portions of the project. SB 430 will be the bill that addresses state P3 projects. HB 1534 still is pending with broad P3 enabling provisions for public facility and transportation projects, but likely will be limited to local governments.

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


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