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Government Relations - General Information (Public)

This Week in Surety & Fidelity LegislationOpen in a New Window

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.


 

 

SFAA Gears Up to Address Surety Issues in CongressOpen in a New Window

  SFAA Gears Up to Address Surety Issues in Congress  
Members should visit Government Relations / General Info (Members) for more information.

 

Monthly Comprehensive Legislative Reports posted for MembersOpen in a New Window

   

Comprehensive Legislative Reports for January 2017 (Commercial Surety; Contract Surety; Fidelity) posted for Members only.

Or navigate to any of the following:


 

 

SFAA Warns NY Insurance Regulators of Negative Impact of New Commercial Crime Policy RequirementsOpen in a New Window

  SFAA Warns New York Insurance Regulators of Negative Impact of New Commercial Crime Policy Requirements 

The New York Department of Financial Services (Department) adopted regulations that prohibit commercial crime insurance policies from excluding coverage for losses caused by employees who have been convicted of a criminal offense, if the employer knew about the conviction prior to the loss and followed the procedure in the Corrections Law in determining whether to hire the person. SFAA objected to these regulations when they were proposed and urged the Department not to implement them. SFAA’s Crime Protection Policy is not intended to insure against unsound management practices, and the regulations may have the unintended result of making the coverage less available and/or more expensive.

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


 

D.C. City Council Passes Bill to Improve Bonding for Joint Ventures ProgramOpen in a New Window

  D.C. City Council Passes Bill to Improve Bonding for Joint Ventures Program 

SFAA successfully persuaded the District of Columbia City Council to introduce and pass LB 863, which is a bill that would revise a bond requirement in current law for joint ventures (JV) that include a certified business enterprise (CBE). The bill repeals a requirement for the bonds for the project that the joint venture performs to be provided by the CBE. The bill also repeals a provision that the CBE is solely and individually liable as the principal to the surety for at least 51% of each claim asserted under the bond. The bill was amended to require the CBE with the majority interest in the JV to demonstrate it has a bonding capacity equal to 51% of the total contract amount. The amended bill also includes reporting requirements for JVs regarding its income from the contract, as well as reporting requirements for DSLBD regarding its compliance enforcement practices. A CBE is a local, small, disadvantaged, or veteran-owned business. The bill now goes to the Mayor for signing, whose support SFAA already has obtained for enacting this bill.

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


 

SFAA Urges Bonding on Construction Projects Financed by EDA LoansOpen in a New Window

  SFAA Urges Bonding on Construction Projects Financed by EDA Loans

The Economic Development Administration (EDA )recently proposed rules that require construction projects financed by EDA loan guarantees to either require the lender to use a construction management company or the borrower to supply 100% payment and performance bonds. SFAA told the EDA that these two forms of security should not be alternatives, but rather be complementary forms of security. Use of a construction manager protects the lender and the EDA from fraud and provides risk management on projects undertaken under EDA loans. Only the surety bonds provide security that the construction contact will be performed and that subcontractors will be paid. Without the bonds, the EDA ultimately assumes the risk and loss if the contractor defaults.

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


 

Final Edition of the 2016 Annual State Legislative Reports postedOpen in a New Window

The Final Edition of the 2016 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).


 

SFAA & Local Partners Obtain Exclusion for Surety & Fidelity in Ohio Self-Insurance Pool LegislationOpen in a New Window

  SFAA and Local Partners Obtain Exclusion for Surety & Fidelity in Ohio Self-Insurance Pool Legislation Heading to the Governor 

The Ohio legislature has passed a bill that would allow state colleges and universities to establish joint self-insurance pools to provide several types property or casualty self-insurance to cover any other liabilities or risks of the pool’s members. Earlier in the year, SFAA and its local partners successfully had the legislation amended to exclude surety and fidelity from the kinds of coverage that these pools will be able to provide.

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


 

Federal Agencies Begin to Implement New Law on Individual SuretiesOpen in a New Window

   Federal Agencies Begin to Implement New Law on Individual Sureties

Federal agencies have begun to implement the change in the law for the assets that individual sureties can pledge. The Federal Acquisition Regulation (FAR) Council recently opened a FAR case and tasked its staff with developing amendments to the regulations regarding individual sureties. This will implement a change in the law that now requires individual sureties to pledge only “eligible obligations,” which are instruments backed by the federal government, to back their bonds. The new law also requires such assets to be deposited with the federal government. SFAA will review the proposed regulations when they are issued and submit comments to ensure that the law is implemented as intended.

In a separate action, the U.S. Department of the Treasury recently issued a Frequent Asked Questions (FAQs) document to explain what kinds of assets individual sureties can pledge and the process for placing the assets in a new individual account with the Federal Reserve Bank in St. Louis. SFAA submitted recommendations to clarify the FAQs with regard to the kinds of assets that can be pledged and to ensure that the FAQs only apply to individual sureties and not corporate sureties. We also noted that changes to the FAR still are needed.

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


 

State Legislative Reports postedOpen in a New Window


State Legislative Report posted  for Members
Members should navigate to Government Relations / Legislative Overview Reports.

 

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.


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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1/18/2017
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