NASBP Focal Point – January 9, 2025

Federal Report

Reconciliation: President-elect Trump and members of the Senate Republican leadership met on Wednesday to discuss plans to bundle together legislative language to address taxes, border security and energy policies into one catch-all Reconciliation bill, which only requires a simple majority for passage in both chambers. Reconciliation allows legislation to be fast-tracked in order to bypass the filibuster (60 votes needed to advance legislation) in the Senate. The previous administration used Reconciliation to advance their legislative priorities, such as the Inflation Reduction Act. The challenge lawmakers face is to ensure language included in the Reconciliation bill is germane to budgetary matters to pass parliamentary muster.

NASBP submits comments to the SBA: NASBP recently submitted public comments to the SBA Office of Surety Guarantees on proposed rule changes, which focus on the expansion of the Program’s Quick Application. NASBP offered positive comments in support of the SBA’s approach to streamlining the collection process, which may lead to greater opportunities for small contractors.

2025 Legislative Fly-in: The annual Federal Legislative Fly-in will take place February 26-27, 2025. The host hotel, The Hilton Washington, DC, Capitol Hill, is just a few blocks from the U.S. Capitol. The room block is sold out. However, rooms are still available outside of the NASBP block. There are no registration fees to attend. The event begins at 2pm on February 26, which is dedicated as the “Washington Program,” and includes remarks from former U.S. Secretary of Transportation Ray LaHood followed by a panel comprised of Capitol Hill staffers. February 27 is dedicated solely to Capitol Hill appointments. You must register in advance to attend this event.

State Activity

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.

NM HB 19 (Lundstrom) Establishes Public Private Partnerships (P3) 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.

TX HB 643 (Gervin) Amends Section 2253.021(a) (TX LMA) of the Government Code to increase the payment bond requirement for a governmental entity that enters into a public works contract with a prime contractor from $25,000 to $100,000 if the governmental entity is not a municipality or a joint board created under Subchapter D, Chapter 22, of the Transportation Code. The bill sponsor introduced the same measure in 2021 and 2023.

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.