NASBP Focal Point – April 15, 2025

Federal Report

Federal: Prior to adjournment, last week House Republicans agreed to support the Senate-approved budget blueprint by a vote of 216-214. Once lawmakers return from their two-week recess, Republicans in both Chambers will begin the difficult task of agreeing to a budget/reconciliation package which includes extending the Trump tax cuts, military spending, energy policy, and investments in border protection. These budgetary negotiations will likely pit fiscal hawks against moderates as each voting bloc has their own policy reason to protect programs such as Medicaid, while cutting trillions of dollars from the federal budget.

Supporters of H.R. 1285 (Bost/Pappas) delivered a letter to the leadership of the House Transportation and Infrastructure Committee and the Subcommittee on Water Resources and Environment requesting a markup on H.R. 1285, the “Water Infrastructure Subcontractor & Taxpayer Protection Act.” H.R. 1285 requires performance and payment guarantees for loans/grants and P3s utilized through the Water Infrastructure Finance and Innovation Act (WIFIA). H.R. 1285 currently has seven co-sponsors. NASBP will continue to keep you informed on this effort moving forward.

State Activity

New: AR SB 437 (Hester) Establishes rules and regulations for wind energy development in the state. Before the start of construction, the applicant for a permit for the construction or operation shall establish financial security in the amount of one hundred percent of the estimate of the total cost to decommission and remove the wind energy facility. To establish financial security the applicant shall file with the AR Public Service Commission a surety bond, collateral bond, irrevocable letter of credit, parent guaranty, cash, cashier’s check, certificate of deposit, bank joint custody receipt, or other approved negotiated instrument. SB 437 passed the Senate and was referred to the House Insurance and Commerce Committee.

Update: MT SB 29 (Esp) Amends Title 18-2-302 (Public Contracts) to permit the state or other governmental entities to accept electronic bid bonds signed electronically or otherwise verified by the bidder and the surety. The bill was requested on behalf of MT’s Department of Administration. SB 29 passed the legislature and was delivered to the governor for signature.

Update: MS HB 196 (Remak) Amends Section 31-5-51 (MS LMA) by increasing the bond threshold from $25K, to $75K for public works contracts. HB 196 failed to advance in the House Judiciary Committee. A Senate companion bill, SB 2372, also failed to advance.

Update: NM HB 19 (Lundstrom) Establishes Public-Private Partnerships (P3s) to facilitate the development of trade ports. The bill requires the private partner to provide performance and payment bonds pursuant to Section 13-4-18 NMSA (LMA). The private partner may also provide guarantees, letters of credit, or other acceptable forms of security, the amount of which may be less than one hundred percent of the value of the contract involved based on the determination of the public partner, or, for public-private partnership agreements requiring approval pursuant to the Trade Ports Development Act, based on the determination by the secretary. HB 19 passed the legislature and was signed by the governor.

Update: NM HB 128 (Szczepanski) Creates the local solar access energy fund to provide grants to local entities for solar power energy. Entities shall require a contractor of a project funded through grant funds to furnish performance and payment bonds in accordance with 13-4-18 NMSA (LMA). HB 128 passed the House on March 1 and passed the the Senate Committee on Conservation. HB 128 passed the legislature and was signed by the governor.

If you are aware of any bills impacting the industry, please reach out to Larry LeClair, NASBP’s Director of Government Relations, and let us know.