NASBP Focal Point – February 15, 2024

Federal Report

ASA Testifies: On February 6, Andrew Christ of Compass Contractors, testified on behalf of the American Subcontractors Association (ASA) before the House Small Business Committee (HSBC). Mr. Christ’s testimony included support for H.R. 1740/S.2928 which clarifies that performance and payment bonds are required when federal loans, grant funds are provided or when public-private agreements (P3s) are utilized for Water Infrastructure Finance and Innovation Act (WIFIA) contracts. NASBP had the opportunity to provide input to ASA on their testimony and appreciates ASA’s support on this important legislative matter before the House Small Business Committee.

State Report

New: MN SB3578 (Hoffman): Amends chapter 574 to waive bonds for construction projects above $100,000 when awarded to Black, Indigenous, and People of Color (BIPOC)-owned businesses. This waiver exemption is intended to facilitate generational wealth-building within the BIPOC community. SB3578 was referred to the Committee on State and Local Government and Veterans.

New: OR HB4006: Amends ORS 279C.560 to permit a contracting agency to accept a surety bond in lieu of retainage from a contractor. The contractor shall accept surety bonds from subcontractors or suppliers from which the contractor has withheld retainage at any time before final payment on a public improvement contract. HB 4006 passed the House on 2/13 and was referred to the Senate Committee on Labor and Business.

Update: New Mexico H190 (Garratt): Establishes public-private partnership (P3) agreements between one or more public partners and one or more private partners in connection with the development of a public project. A “public project” means a project for which the public partner believes a public-private partnership would best suit the needs and requirements of the project. The bill requires bonds by including a reference to New Mexico’s Little Miller Act. According to the bill, “a public-private partnership agreement shall require a private partner to provide or cause to be provided performance and payment bonds as required pursuant to Section 13-4-18 NMSA 1978. H190 passed the House and was referred the Senate Committee on Judiciary.

Update: Rhode Island HB 7057(Cruz): Amends Sections 37-12-1 (RI LMA) so that the chief purchasing officer of the state may waive the bonding requirement for a State of Rhode Island office of diversity, equity, and opportunity certified minority business enterprise (MBE) or women owned business enterprise (WBE) prime contractor or subcontractor on a public works project for up to two hundred fifty thousand dollars ($250,000). Rhode Island’s bond threshold is $150,000. HB 7057 was assigned to the House Committee on Labor where a hearing was held on Feb. 1. The bill was placed in a Study committee.

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.