NASBP Focal Point – March 18, 2025

Federal Report

Follow-up activities from joint Legislative Fly-in: Following up from the joint fly-in, NASBP contacted a number of congressional offices who expressed interest in signing on as a co-sponsor to the WIFIA Legislation, S.570/H.R.1285. Since the Fly-in, NASBP has made a concerted effort to pursue co-sponsors by contacting those House (15) members and Senators (2) who previously co-sponsored the original legislation H.R. 1740/S.2928 introduced in the previous session of Congress. To date, NASBP has contacted over 30 Congressional Offices regarding this effort. On H.R. 1285, Reps. Norcross (D-NJ-1) and Fitzpatrick (R-PA-1) recently have joined as co-sponsors. We will keep you informed on this effort moving forward.

State Activity & New Resources

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 Senate on March 1 and was referred to the House State Administration Committee.

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 was then referred to the Senate Finance Committee.    

New: NY S 6313 (Sanders) Amends Section 137 of the NY Finance Law when a contract is awarded to a small business or to a minority or women-owned business to permit performance bonds and payment bonds which may be dispensed when the aggregate amount of the contract is under $500,000. S 6313 was referred to the Senate Committee on Procurement and Contracts.

Update: TX SB 1066 (Perry) Amends Section 2253.021(a) (TX LMA) of the Government Code to increase the thresholds for performance and payment bonds for public works contracts from $25,000 to $150,000. SB 1066 passed the Senate on March 13.  

New Resources: Throughout the year, NASBP submits comment letters on behalf of its members to local, state, federal agencies and lawmakers on policy matters such as: increases to state bond thresholds, resident bond countersignature requirements, and onerous bond forms, among other subjects. Recently, NASBP prepared comments/issue papers concerning the importance of mutual waivers of consequential damages clauses.  the public requirement for financial strength of surety ratings exceeding “A-“, the practice of elimination of prime bonds in favor of dual obligees, and attorney-in-fact’s home address in the Commonwealth of VA, which the procurement officer noted in its response to NASBP was an oversight in the project manual and will be corrected in future solicitations.

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.