In the July/August issue of Pipeline, NASBP Chief Executive Officer Mark McCallum wrote about resident countersignature requirements and how, though they have been statutorily stricken, continue to appear in documentation, such as bid documents. Often local and state government personnel are unaware that case law has struck down the requirement or the operator statute has been amended to remove preferences for resident agents.

That was the case recently when a NASBP member in Mississippi informed NASBP CEO Mark McCallum, that Mississippi was requiring a resident agent countersignature. McCallum contacted the state’s Office of State Aid Road & Bridge Construction and described how in 2004 the Mississippi State Legislature eliminated the requirement that resident agents must countersign policies placed by nonresident agents. He also explained that the Mississippi bid specifications needed to reflect that change.

As a result of NASBP’s September 7 correspondence with the Mississippi Department of Transportation (DOT) Office, Mississippi has since amended and updated its Standard Specifications for State Aid Road & Bridge Construction to be in compliance with the state’s statute on resident agent countersignature requirements relating to surety bonds. Officials with that Office sent NASBP a letter on September 14 stating that specifications have indeed been amended.To view NASBP’s September 7 letter to the Office of State Aid Road & Bridge Construction, click here. To view the September 14 letter from the Mississippi DOT in response to NASBP, click here.

A similar issue arose in Florida, and when alerted by a member, NASBP responded by sending a letter to Florida officials with the Design and Construction Division General Services Administration Department (GSA). The Florida GSA made a similar requirement that was not in compliance with the state’s law which was enacted in 2004. To view NASBP’s August 4 letter to the Florida GSA, click here. That matter is now under review by the Department Counsel.

If you discover a resident agent countersignature issue, contact NASBP for assistance.