NASBP Focal Point – April 3, 2025

Federal Report

Federal: Legislation was recently introduced as H.R. 1870 (Hudson-R-NC-9th), the SPEED for BEAD Act, which seeks to streamline the functionality of the Broadband Equity, Access, and Deployment (BEAD) Act by prohibiting certain conditions such as prevailing wages, project labor and collective bargaining agreements, and letters of credit (LOCs) when a subgrantee has commercially deployed or operated a broadband network, and is seeking funding in an amount that is less than 25 percent of the annual revenues of the subgrantee. This week, NASBP/SFAA staff met with the bill sponsor’s aide, to seek clarification and to convey the importance of keeping performance security and the benefits of surety bonds. The bill was referred to the House Energy and Commerce Committee.

On March 11, the House Natural Resources Subcommittee on Federal Lands conducted a hearing to address, H.R. 1820, the FLASH Act. The legislation includes a reference to the Miller Act (40USC, 3131-3133) for the construction cleanup of cannabis cultivation sites. While bill language appears to include protections for sureties, there may be liability exposure concerns for the sureties to consider. NASBP has contacted SFAA for their analysis of the bill.

On Wednesday, the Senate Committee on Environment and Public Works held a hearing on the Surface Transportation Reauthorization Bill. Testifying before the Committee was U.S. Transportation Secretary Sean Duffy. In her opening statement, Chairman Shelly Moore Capito (R-WV) referenced her three key principles for the next Surface Transportation Reauthorization Bill, which includes: 1) improving the safety and reliability of America’s surface transportation network with impactful investments; 2) reforming and modernizing federal programs and policies to increase efficiency; and 3) addressing the variety of surface transportation needs across all states. Ranking Member, Sheldon Whitehouse’s (D-RI) opening statement noted, “There’s permitting, and I’m thrilled to work with our Chair on permitting reform. There’s bureaucracy, and as I’ve mentioned many times before here and elsewhere, we must find a way to rein in “interagency process” run amok.” Throughout the hearing Senators expressed the need to make substantial changes to the permitting process. During his testimony, Secretary Duffy addressed concerns relating to pauses in DOT funding while noting that “disbursements for valid reimbursement requests under existing obligations continue as usual and were never paused.” Duffy further added, that “this Administration inherited a backlog of over 3,200 awarded projects without signed grant agreements in place.” Duffy also added, “We are expediting reviews to ensure alignment with this Administration’s priorities so that we can fund projects that deliver the infrastructure America so desperately needs.” 

State Activity

IA SF 574 (Bousselot) Amends Section 573.12,“Payments and Retention from Payments on Contracts,” by lowering the retainage percentage a general contractor may withhold from a subcontractor from 5% to 3%. SF 574 passed the Senate on March 24 and was sent to the House Ways and Means Committee.

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 House on March 3 and the Senate on March 22 as amended.

ND HB 1369 (Heinert) Amends 48-01.2-02.1., “The Public Improvement Construction Threshold,” by raising the bond threshold from $200,000 to $250,000. HB 1369 passed the House 78-12 and is now before the Senate Appropriations Committee. The surety industry has contacted the Senate bill sponsor, Michelle Axtman, to garner further intelligence.

Update: TX SB 1066 (Perry) Amends Section 11.0171, the Parks and Wildlife Code, by raising the bond threshold from $25,000 to $150,000 for contracts of constructing, altering, or repairing a public building or carrying out or completing for the Department Parks and Wildlife. SB 1066 passed the Senate on March 13.  

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.