NASBP Focal Point – February 6, 2025

Federal Report

EPW Priorities: Speaking before members of the American Association of State Highway and Transportation Officials (AASHTO), Chairman of the Senate Committee on Environment and Public Works (EPW), Shelly Moore Capito (R-WV), and Ranking Member, Sheldon Whitehouse (D-RI), shared their thoughts on key transportation issues before the EPW Committee. Chairman Capito noted that the Committee’s work will focus on the reauthorization of the Infrastructure Investment and Jobs Act (IIJA) of 2021, which expires in September 2026. According to the Chairwoman, “the work will be done in a bipartisan nature, which is hard to do in this environment, but we have found consensus before I plan to continue that dialog with Sheldon.”

Senate EPW has jurisdictional authority over legislation, soon to be reintroduced this Congress, which provides essential protections for workers, suppliers, and contractors by requiring payment protection on federally financed infrastructure projects receiving Water Infrastructure Finance and Innovation Act (WIFIA) assistance, including public-private projects (P3s). Supporting this legislation will be a key message point for Fly-in attendees during their congressional hill visits on Feb. 27.

State Activity

CT HB 6754 (Hall) Amends subsection (b) of 49-41(CT’s LMA) to raise the performance bond threshold for subcontractors from less than $50,000 to less than $1M. The bill was introduced by Rep. Hall who is the House Majority Deputy Speaker. HB 6754 was referred to the Joint Committee on Government Administration and Elections. Grassroots activity has been initiated in earnest by a NASBP CT member, who called upon the CT network of contracting stakeholder organizations to alert them of the negative impact this legislation would have on their members. HB 6754 has not been scheduled for a hearing. NASBP will submit a letter of opposition, should a hearing be scheduled.

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. Earlier this session, HB 643 was introduced in the House to raise the bond threshold to $100,000.

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 State Administration Committee.

Update: NM HB 19 (Lundstrom) Establishes Public Private Partnerships (P3s) to facilitate the development of trade ports. The bill requires the private partner to provide performance and payment bonds pursuant to Section 13-4-18 NMSA (LMA). The private partner may also provide guarantees, letters of credit, or other acceptable forms of security, the amount of which may be less than one hundred percent of the value of the contract involved based on the determination of the public partner, or, for public-private partnership agreements requiring approval pursuant to the Trade Ports Development Act, based on the determination by the secretary. HB 19 passed the House Taxation and Revenue 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.