In the states, thus far, NASBP has tracked and/or reviewed nearly 450 bills that have been introduced since the beginning of the 2026 state legislative season. Several of those bills directly impact the surety industry.

For example, on February 4, the NASBP First Vice President Monica Donatelli, who is a Kansas resident, testified before the Kansas Senate Commerce Committee in support of SB 335, legislation that requires public construction contracts to include a mutual waiver of consequential damages. NASBP submitted a letter for the Committee’s consideration emphasizing the importance of the bill’s passage.

Kansas State Capitol Building

Donatelli’s official statement for the record made three important policy points in support of the legislation:

1. Cost Control—When risk is undefinable, contractors must increase their bid prices to “price in” the uncertainty;
2. Market Competition—Without these waivers, many qualified Kansas small businesses and subcontractors may be forced to pass on state projects, as they cannot risk the existential threat of unlimited, indirect liability; and
3. Litigation Avoidance—Waivers prevent the state from spending significant resources attempting to prove or collect speculative damage through the court system, focusing instead on project completion and performance. Of note, several other Kansas contracting groups, private companies, and state organizations were on record in support the bill including AGC, ASA, the state Chamber of Commerce, and Crossland Construction Company.

Staying in the “Sunflower” State, NASBP submitted a letter to the Kansas Senate Committee on Local Government, Transparency and Ethics opposing to SB 436, legislation to raise the bond threshold for county construction contracts from $25,000 to $100,000. The American Subcontractors Association also went on record in opposing the measure.

Finally, moving to the “Prairie” State, earlier this month, NASBP alerted its Illinois key contacts of legislation that was recently introduced, HB5042/SB3760, to raise the bond threshold for the Illinois Department of Transportation contracts from $500,000 to $10,000,000. The legislation also increases the bond threshold for other state public contracts from $150,000 to $5,000,000. NASBP asked Illinois NASBP members to consider reaching out to their contacts at the state/local organizations of the AGC, ABC, and others to make those organizations aware of this legislation. NASBP has alerted the National ASA Office.

NASBP members may recall that in 2023 legislation was originally introduced, SB157/HB2482, to amend Illinois’ Little Miller Act by raising the bond threshold from $50,000 to $5,000,000. However, stakeholders agreed to compromise language to raise the bond threshold for ILDOT and IL Toll Authority contracts to $500,000. For all other state public works contracts, the bond threshold remained at $150,000. Both provisions are set to sunset on January 1, 2029, when the bond threshold reverts back to $50,000.

As always, NASBP will continue to keep you informed concerning the aforementioned bills and other bills that impact on the industry throughout the legislative season.