Mark your calendars and make your plans to attend the NASBP 2016 Regional Meetings. This year has been particularly active for public-private partnership (P3) legislation in the states, and, as a result, NASBP will provide updates on P3 legislation that relates to surety bonding at the Regional Meetings.
The fall NASBP Regional Meetings will kick off with the 2016 Regions 4, 5, 6 & 7 Meeting, which will be held September 22-24 in Lost Pines, TX, just outside of Austin, TX at the Hyatt Regency Lost Pines Resort & Spa. The NASBP 2016 Sales Workshop for Surety Professionals will be held in conjunction with this event from September 21-22.
The 2016 Regions 8, 9, 10 & 11 Meeting will be held October 2-4 in Nashville, TN, at the Omni Nashville Hotel; and the 2016 Regions 1, 2 & 3 Meeting will be held October 6-8 in Napa, CA, at the Silverado Resort.
Registration will be opening this month for all three meetings along with preliminary program information. The NASBP hotel blocks are open for reservations. Visit the NASBP.org website to book your hotel today.
Public-Private Partnership Legislation
Below is a sneak peek at the P3 issues that NASBP has been watching closely, which primarily are occuring in states that represent Regions 4, 5, 6 & 7 and 8, 9, 10 & 11. NASBP will provide updates on these and others during the respective Regional Meeting programs. NASBP has been particularly successful at quickly responding to legislation this year, thanks to NASBP Members and staff who have used the new NASBP State Bond Threshold Map to ascertain how new legislation will impact existing statutes.
If you have information about P3 legislation in your state, contact NASBP Assistant Director of Government Relations Shannon Crawford at firstname.lastname@example.org.
- IL SB 3277 (Stearns) would allow any public agency to enter into a P3 agreement with any private entity for improving transportation assets, public buildings, public services, or other public assets. Illinois' current P3 authorization is project specific. IL SB 3277 was assigned to the Senate Commerce and Economic Development.
- PA HB 2113 (Evankovich) would establish the Public-Private Partnership Pilot Program and the State Public-Private Partnership Board. Pennsylvania currently has authorization for transportation projects, but this bill would expand that authority to school and public buildings. As currently written, the bill would require “delivery of maintenance, performance and payment bonds or letters of credit in connection with the acquisition, design, construction, improvement, renovation, expansion, equipping, maintenance or operation of the eligible project, in the forms and amounts satisfactory to the government agency." HB 2113 has been assigned to the House Committee on Rules.
- RI HB 7563 (Shekarchi) would establish authorization for P3 project delivery for public works projects. The responsible public entity must "[e]nsure that provision is made for the private entity's performance and payment of subcontractors, including, but not limited to, surety bonds, letters of credit, parent company guarantees, and lender and equity partner guarantees. For the components of the qualifying project which involve construction performance and payment, bonds are required and are subject to the recordation, notice, suit limitation, and other requirements." HB 7563 was referred to the House Finance Committee.
KY HB 309 (Combs) - Due to the work of Todd Loehnert and Brian Ayres of L A Surety Solutions in Louisville, KY, HB 309 was amended to include a direct reference to the Little Miller Act for local governments and has been successfully enacted into law. These NASBP members were able to offer an amendment to the legislation, supported by the surety industry, through a contact in the Governor's office. The bill has been approved by both chambers and signed by the Governor. HB 309 authorizes P3 agreements for local governments and, as introduced, bonding on the P3 agreements would have been discretionary.
- LA SB 195 (Cortez) authorizes the Louisiana Department of Transportation and Development to enter into P3 agreements. P3 authorization in the state is currently piecemeal, with separate, limited authorization for the Louisiana Expressway Authority, parishes and municipalities and the Louisiana Transportation Authority (LTA). LA SB 195 requires the agreements to be subject to R.S. 48:2084 through 48:2084.15 which govern the LTA's ability to enter into P3 agreements. This statute also mandates that, these agreements are subject to R.S. 48:256.3 and 48:256.5, which govern payment bonds.
- NH SB 549 (Lasky) establishes the public-private partnership infrastructure oversight commission. NASBP sent a letter to the legislature requesting an amendment to the bill that references the NH Little Miller Act. This Little Miller Act reference was included in the final version of this study bill, which was enacted into law.
- TN SB 2093 (Ketron) authorizes state and local entities to enter into P3 agreements for transportation projects. P3 agreements require the delivery of performance and payment bonds or other forms of security in connection with the development, redevelopment, or operation of the qualifying transportation facility, in the forms and amounts satisfactory to the responsible public entity. SB 2093 was amended in the Senate and now directly cites the Little Miller Act for transportation projects.