May 6, 2015 Issue
Currently thirty-two legislatures are in session. They are Alabama, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Wisconsin, District of Columbia, and Federal
National Defense Authorization Act of 2016
- H.R. 838 (Hanna)--As a follow up to our recent blog post and announcement to the NASBP Government Relations Committee, last week, U.S. Representative Sam Graves (R-MO-6th) offered H.R. 838 as amendment to H.R. 1735, the Fiscal Year 2016 National Defense Authorization Act (NDAA). As you know, H.R. 838 includes the individual surety provision and increases the guarantee to sureties who participate in the SBA Surety Bond Guarantee Program from 70% to 90%. The full House is expected to vote on H.R. 1735 sometime next week. The Senate is in the process of drafting their version of the NDAA. NASBP will be visiting offices of those Senators who serve on the Senate Armed Services Committee and the Homeland Security and Governmental Affairs Committee (HSGAC) requesting they consider including H.R. 838 in their version of the NDAA. Of particular importance are members who serve on HSGAC, which has committee jurisdiction over the provision in H.R. 838 addressing individual surety. HSGAC needs to support H.R. 838 in order for it to be included in the Senate NDAA.
HSGAC is Chaired by Senator Ron Johnson (R-WI) and its Ranking Member is Tom Carper (D-DE). If you are a constituent of either of these Senators, please consider attending the NASBP Fly-in on June 10 to voice your support on the importance of this legislation. For a complete list of Senators who serve on HSGAC, please click here.
For more information and how to register for the NASBP Fly-in, please click here. We are very close once again to enacting meaningful and impactful reform for the industry, but we cannot do that without your support. Please consider attending the fly-in to make your voice heard.
2015 Annual Legislative Fly-in
- Save-the-Date: 2015 NASBP Fly-in June 9-10
Registration Now Open
On June 10, NASBP members, affiliates and associates will meet with their members of Congress on Capitol Hill for the Annual NASBP Legislative Fly-in. The event will begin Tuesday evening, June 9 with a pre-Fly-in reception where we will discuss the talking points for Fly-in attendees. Wednesday, June 10 will be dedicated to Capitol Hill appointments, followed by a cocktail reception that evening back at the Hyatt Regency.
Once again, this year, NASBP will be hosting a Virtual Seminar on Thursday, June 4 at 2:00 pm to discuss this year's issues and talking points. This seminar will be free to all Fly-in registrants.
This year NASBP is excited to announce that on June 11, the day following the Fly-in we will be hosting a Federal Construction Contracting Seminar. For more information on this event or to register for both the Fly-in and the Seminar please visit this webpage and watch a short video on why you should attend.
For more information about the Fly-in, please visit the Fly-in webpage devoted entirely to the event. There you will find information pertaining to registration, hotel accommodations, a sample meeting request letter to be used for scheduling your Capitol Hill appointments, and a document addressing frequently-asked-questions (FAQs). For more information about the fly-in, contact Larry LeClair at lleclair@nasbp.org or Shannon Crawford atscrawford@nasbp.org.
Don't miss your opportunity to show your passion for surety to your elected lawmakers.
Individual Sureties
- NV AB 345 (Neal) would have authorized the State and local governments to accept certain alternate forms of security and create circumstances under which an individual surety may provide such security. NASBP hired a contract lobbyist to work this issue and, as a result of education and meetings, the individual surety provisions were removed from the bill. At the bill sponsor's request, NASBP members met personally with her to discuss the bonding process, prequalification, and the possibility of hosting a bonding education program sometime this summer.
Public-Private Partnerships
- UPDATE: GA SB 59 (Hill) authorizes the state to enter in P3 agreements which require delivery of performance and payment bonds for the construction portion of the project, in the amounts required in the state's Little Miller Acts. SB 59 passed both chambers and was sent to the Governor on 04/09/2015. This bill would create P3 authority in Georgia.
- ME HP 884 (Ward) authorizes state and local governments to enter into P3 contracts for public works projects. This bill requires delivery of payment and performance bonds for all construction activities. HP 884 was referred to the Committee on State and Local Government on 04/09/2015. This bill would expand P3 authority in Maine beyond DOT contracts as currently authorized.
- MN HF 4 (Kelly) authorizes the Commissioner of Transportation to establish a P3 pilot program. The bill requires performance and payment bonds on the contracts as required by Minnesota’s Little Miller Act. HF 4 is currently in conference committee.
- NV AB 450 (Transportation) authorize the state DOT to enter into P3 agreements. Currently the state has only regional authorization in Southern Nevada. To enter into a public-private partnership, a performance bond and payment bond, letter of credit, parent company guarantee or other security acceptable to the Department is required. AB 450 is currently in the Committee on Ways and Means.
Statute of Limitations
- CT SB 1032 (Judiciary)--NASBP continues to participate with the Connecticut Statute of Limitations Coalition. This coalition has introduced SB 1032, a bill to enact a 10 year statute of limitations for state projects in Connecticut. There is currently no statute of limitations for claims made by the state, meaning Connecticut can file claims against contractors in perpetuity.
This bill was introduced to solve that problem, which passed unanimously by the Joint Judiciary Committee and will be voted on shortly in the Senate.
Subcontractor Default Insurance
- MA HB 2808 (J. Rogers) amends Massachusetts statute to allow the construction manager at-risk (CMAR) to have the option to obtain Subcontractor Default Insurance (SDI) in lieu of performance and payment bonds for some or all trade contracts exceeding a specific dollar threshold. Trade contractors not covered through SDI must submit payment and performance bonds to the CMAR at no additional cost to the CMAR or awarding agency. NASBP has hired a contract lobbyist to work this issue with our Massachusetts members. The Massachusetts Legislature meets year round, so this bill may move at any point in the calendar year.