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Government Relations - General Information (Public)

HHS Adopts DMEPOS Bid Bond Rules with SFAA’s Recommendations to Improve Bond AvailabilityOpen in a New Window

  HHS Adopts DMEPOS Bid Bond Rules with SFAA’s Recommendations to Improve Bond Availability

The Department of Health and Human Services’ (HHS) has adopted regulations to require bidders for contracts to supply durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) under the Medicare competitive acquisition program to furnish a $50,000 “bid surety bond” for each area in which it is bidding. Originally, the agency would have required a $100,000 bond, but it reduced the amount based on SFAA’s comments explaining the underwriting process for bonds of this size.

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


 

SFAA Comments on Proposed Changes to SBA’s Preferred Surety Bond Guarantee ProgramOpen in a New Window

  SFAA Comments on Proposed Changes to SBA’s Preferred Surety Bond Guarantee Program 

SFAA submitted comments to support the proposed rules from the U.S. Small Business Administration (SBA) for the Bond Guarantee Program (BGP), with some suggested revisions and clarifications to further improve the regulations. The proposed rules implement a recent change in the law, advocated by SFAA, to increase the guarantee percentage for the Preferred Surety Bond Guarantee Program (PSB) from not more than 70% to not more than 90% of the losses. The proposed rules provide that the SBA will reimburse sureties participating in the PSB for the same amounts as set forth in the existing regulations for the Prior Approval program.

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


 

Federal/State Regulatory Reports for October 2016 posted for MembersOpen in a New Window

 

Regulatory reports for October 2016 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")


 

 

Surety & Fidelity Legislative Overview Report for October Posted for MembersOpen in a New Window

  Surety & Fidelity Legislative Overview Report for October Posted for Members 
Report is available for Members on the Weekly Legislative Reports page.

 

End of Legislative Session Reports postedOpen in a New Window

 

End of 2016 Legislative Session report added for California, Delaware and North Carolina for Members only.

Previous reports posted for:  Alabama, Alaska, Arizona, Colorado, Connecticut, Florida, Georgia, Hawaii, Indiana, Kansas, Kentucky, Idaho, Illinois, Louisiana, Maine, Maryland, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, New York, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Oregon, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming  

 

Navigate to Government Relations / End of Legislative Session Reports

 

SFAA Urges DC City Council to Pass Key Legislation to Improve Bonding Requirements for Joint VentureOpen in a New Window

  SFAA Urges D.C. City Council to Pass Key Legislation to Improve Bonding Requirements for Joint Ventures 

SFAA testified before the Local Business Development and Utilities Subcommittee of the D.C. City Council (Subcommittee) to advocate for the passage of LB 21-0863, which would eliminate a problematic requirement for certified business enterprises (CBEs) participating in a joint venture (JV) to provide the bond and be solely and individually liable as the principal to the surety for at least 51% of each claim asserted under the bond. The law has the unintended consequences of making bonding for these JVs less attractive for sureties because it restricts how the surety can set up indemnity agreements for the JV partners and how the surety can proceed in handling its claims if there is a default. SFAA explained that the surety reviews a JV just like any other project and its indemnity agreements and claim handling also are the same for a JV. CBEs are certified local, small, disadvantaged, resident, or veteran-owned business enterprises that enter into JVs for many beneficial purposes. The law hurts CBEs more than it helps them use JVs.

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


 

SFAA Warns Los Angeles that its Sales Tax Revenues are not SecuredOpen in a New Window

  SFAA Warns Los Angeles that its Sales Tax Revenues are not Secured 

The City Council of Los Angeles adopted an ordinance for parking garage operators waives the bond that parking garage operators must post if the operator accepts credit cards to pay the parking fees. The bond secures the payment of the taxes and compliance with the applicable ordinances, including recordkeeping requirements. SFAA argued that the obligations that the bond secures exist regardless of the payment method that a customer uses and that waiving the bond increases the City’s risk that the taxes due will not be paid. The operators that still must post the bond if they accept only cash may find the bond harder to obtain.

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


 

SFAA and AIA Addressing Bonding Provisions in Michigan P3 Bill for Public Works ProjectsOpen in a New Window

  SFAA and AIA Addressing Bonding Provisions in Michigan P3 Bill for Public Works Projects 

Michigan SB 627 would authorize the State, its political subdivisions, counties, cities, township, villages, school districts, community colleges, and public universities to enter into P3s for public works projects. The bill would permit bonding or other security to be furnished for the project in the amount the public entity determines. SFAA and AIA are seeking amendments to require bonding for the design and construction portion of the project. The bill recently passed out of the Senate Commerce Committee and has the support of the Administration. Because of the bonding issues that SFAA and AIA raised, the Senate floor vote on SB 627 was delayed until after the November elections to give time for consideration of the bonding issues.

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


 

SFAA & Industry Partners Urge FAR Council to Implement Revised Law for Pledging Assets for FederalOpen in a New Window

  SFAA and Industry Partners Urge FAR Council to Implement Revised Law for Pledging Assets for Federal Contracts 

The Construction Industry Procurement Coalition (Coalition) in which SFAA participates has sent a letter to the Federal Acquisition Regulation (FAR) Council urging that the current regulations for the assets that individual sureties can pledge for securing a federal contract to be amended to be consistent with recent statutory changes.

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


 

SFAA Comments on City of Baltimore Procurement RegulationsOpen in a New Window

  SFAA Comments on City of Baltimore Procurement Regulations 

SFAA has submitted comments to urge the City of Baltimore consider whether the alternative security options in its proposed procurement regulations for public works projects are the best options to secure its contracts. The proposed rules would require payment and performance bonds, an irrevocable letter of credit (LOC), or certification of self-insurance for Baltimore’s public works projects. The amount of the bonds or LOC would have to be 100% of the contract price for construction contracts. SFAA argued that the rules need to be revised to ensure equal coverage under an LOC to be comparable to the bond. We highlighted the benefits of the bond through the surety’s prequalification of the contractor and its claims handling abilities that are not available through an LOC or the self-insurance option.

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


 

D.C. P3 Regulations Revised to Address SFAA’s Comments on BondingOpen in a New Window

  D.C. P3 Regulations Revised to Address SFAA’s Comments on Bonding 
Members should visit Government Relations / General Info (Members) for more information.

 

New York Enacts Revised Bond Requirement for Used Motor Vehicle DealersOpen in a New Window

  New York Enacts Revised Bond Requirement for Used Motor Vehicle Dealers 

The Governor of New York has signed AB 8166, which revises the bond required in connection with registration for used motor vehicle dealers to require a $20,000 surety bond if they are making a first application or sell 50 or fewer motor vehicles in the previous calendar year. The new law requires a $100,000 surety bond if a used motor vehicle dealer sells more than 50 motor vehicles in the previous calendar year.

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


 

SFAA Objects to Proposal to Make Mortgage Servicer Bond Optional in WashingtonOpen in a New Window

  SFAA Objects to Proposal to Make Mortgage Servicer Bond Optional in Washington 

SFAA submitted comments to the Washington Department of Financial Institutions to object to its proposed revisions to the bond requirements for consumer loan licensee regulations that would make the bond requirement optional for entities that only service loans. The servicer would be permitted to either post a bond or meet proposed net worth requirement. We explained the benefits of the bond and urged that it be maintained as a requirement.

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


 

Federal Agency Denies Idaho’s Bonding Exemption Application for Third-Party Commercial Drivers’ ...Open in a New Window

  Federal Agency Denies Idaho’s Bonding Exemption Application for Third-Party Commercial Drivers’ License Test Administrators
 

The Federal Motor Carrier Safety Administration (FMCSA) recently denied the Idaho Department of Transportation’s application to exempt its contractors from the bond requirement applicable to third-party commercial drivers’ license (CDL) test administrators. SFAA submitted comments to FMCSA to highlight the benefits of the bond requirement, specifically protecting the Idaho DOT through the surety’s prequalification and claims handling services. Notably, FMCSA stated that the “bond requirement is a business standard that not only provides a higher degree of assurance that the CDL tests performed meet FMCSA and State requirements, but that the tests are also performed by qualified individuals as agents of the State.”

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


 

Pennsylvania Bill to Amend Little Miller Act Passes SenateOpen in a New Window

  Pennsylvania Bill to Amend Little Miller Act Passes Senate 

The Pennsylvania Senate has passed SB 344, which 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, including performance and payment bonds.

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


 

City of Baltimore Proposes Procurement Regulations with Contractor Self-Insurance ProgramOpen in a New Window

  City of Baltimore Proposes Procurement Regulations with Contractor Self-Insurance Program 

The City of Baltimore has proposed procurement regulations for public works projects and for goods and services contracts. This is the first time that the City of Baltimore has proposed detailed regulations to implement provisions from its City Charter, which requires a good and sufficient performance bond, irrevocable letter of credit (LOC), or certification that the successful bidder meets the requirements under the City’s self-insurance program for performance coverage. The proposed regulations would require payment and performance bonds, LOCs and certification of self-insurance for the City’s public works projects. The amount of the bonds or LOC would have to be 100% of the contract price for construction contracts. Baltimore’s City Code also contains provisions pertaining to the self-insurance program for contracts under $200,000, which is consistent with the exceptions in the Little Miller Act for the City.

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


 

D.C. Bill Introduced to Address SFAA's Recommendations to Help Small BusinessesOpen in a New Window

  D.C. Bill Introduced to Address SFAA's Recommendations to Help Small Businesses 

The District of Columbia City Council has introduced LB 863, which would repeal a requirement for joint ventures that include a certified local, small, disadvantaged, or veteran-owned business enterprise that requires bonds for the project that the joint venture performs to be provided by the certified business enterprise (CBE) and that the certified business enterprise is solely and individually liable as the principal to the surety for at least 51% of each claim asserted under the bond. SFAA worked with the D.C. government to explain the problems with these provisions for CBEs to get the bill introduced. We have obtained the support of the D.C. Mayor to repeal these provisions.

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


 

New York Legislature Passes Revised Bond Requirement for Used Motor Vehicle DealersOpen in a New Window

  New York Legislature Passes Revised Bond Requirement for Used Motor Vehicle Dealers 

The New York legislature has passed AB 8166, which would revise the bond required in connection with registration for used motor vehicle dealers to require a $20,000 surety bond if they are making a first application or sell 50 or fewer motor vehicles in the previous calendar year. The bill would require a $100,000 surety bond if a used motor vehicle dealer sells more than 50 motor vehicles in the previous calendar year.

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


 

Bond Threshold Bill Introduced in New JerseyOpen in a New Window

  Bond Threshold Bill Introduced in New Jersey

In New Jersey, SB 2504 has been introduced to increase the bond threshold from $200,000 to $300,000 and to provide for the threshold to be adjusted for inflation going forward. The bill has failed in prior sessions and no committee hearings have been requested, according to AIA. We are monitoring the bill for any necessary action.

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


 

Federal Agency Proposes Rule Requiring Bonding for Construction Loan GuaranteesOpen in a New Window

  Federal Agency Proposes Rule Requiring Bonding for Construction Loan Guarantees 

The Economic Development Administration (EDA) has proposed revised regulations that would implement a law authorizing loan guarantees for small- and medium-sized manufacturers for the use or production of innovative technologies. If the loan that is being guaranteed will finance construction, the lender must use a construction management company or the borrower must supply a 100% payment and performance bond and builder’s risk insurance, unless waived by EDA.

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


 

P3 Water Projects Bill Introduced in MassachusettsOpen in a New Window

   P3 Water Projects Bill Introduced in Massachusetts

Massachusetts SB 2442 has been introduced to authorize the use of public-private partnerships for public water supply, storm water, and waste water projects. The bill would require the P3 agreement to include requirements for the delivery of maintenance, performance and payment bonds or letters of credit in connection with the acquisition, design, construction, improvement, renovation, expansion, equipping, maintenance or operation of the project. The bill is similar to SB 1722, which passed out of committee, but failed to move any further this year. SFAA and AIA are working to determine the viability of SB 2442. Massachusetts is in informal session for the rest of the year.

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


 

New Jersey Governor Signs P3 Bill for County Hospitals with Bonding RequirementsOpen in a New Window

  New Jersey Governor Signs P3 Bill for County Hospitals with Bonding Requirements 

The New Jersey Governor signed SB 2361, which permits counties that own an 800-bed hospital to form a local hospital authority that may enter into a public-private partnership for the construction, reconstruction, repair, alteration, improvement, extension, management, or operation of a building, structure, or facility for the hospital. When there is no public funding, the public owner must require the private partner to post, or cause to be posted, a bond that guarantees the prompt payment of moneys due to the contractor, his or her subcontractors and to all persons furnishing labor or materials to the contractor or his or her subcontractors for the public improvement.

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


 

Michigan Legislature Starts Moving Broad P3 Project BillOpen in a New Window

  Michigan Legislature Starts Moving Broad P3 Project Bill 

Michigan SB 627 would authorize the State, local governments, school districts, community colleges, and public universities to enter into public-private partnerships for public works projects, including public buildings and facilities, transportation facilities, drinking water and wastewater projects, and energy projects. The bill would require, proposal, performance, or payment security in the form and amount the public entity requires. The bill recently was scheduled to be heard in committee in the Senate. SFAA is working with AIA to determine the viability of the bill as time runs out in the session.

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


 

SFAA Supports Adoption of Bonding Provisions in Kentucky P3 RegulationsOpen in a New Window

  SFAA Supports Adoption of Bonding Provisions in Kentucky P3 Regulations 

SFAA has submitted comments to the Kentucky Finance Administration Cabinet in support of its proposed regulations for public-private partnerships because they include bonding requirements for all future P3 projects in Kentucky. The rules implement a law SFAA and AIA had amended to require bonding in the detailed enabling law for local government P3s. The law provides that requirements for State capital projects delivered as P3s are to be set by regulation and the Cabinet has decided to require bonding for them.

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


 

SFAA Seeking to Reverse Onerous Treasury RegulationsOpen in a New Window

  SFAA Seeking to Reverse Onerous Treasury Regulations 

SFAA is working to address U.S. Treasury Department regulations that allow any federal agency to develop a regulatory process for declining a surety's bond "for cause" according to the procedures set forth in the regulations. The regulations also allow the federal agency to petition Treasury to delist that surety from Circular 570. SFAA objected to the changes when they were proposed, but Treasury chose to adopt the revised regulations. SFAA will address any agency rules that propose to implement this authority.

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


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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