NASBP Focal Point – June 22, 2023

Federal Report

American Subcontractors Association (ASA) members fly-in to DC: Last week NASBP accompanied ASA members on several Senate and House visits to discuss ASA’s top legislative priorities for 2023. Those issues of common interest to ASA and NASBP members include, H.R. 1740 (Bost-IL), legislation to require payment/performance security for loans/grants for the Water Infrastructure Finance Innovation Act (WIFIA), and H.R. 2726 (Stauber-MN), the Small Business Payment for Performance Act of 2023, which requires prompt payment to contractors for change orders. NASBP was afforded the opportunity to accompany ASA members at several key congressional visits such as meeting with staff from the House and Senate Small Business Committee, which has jurisdiction over H.R. 2726, and staff from the House Transportation & Infrastructure Subcommittee on Water Resources & Environment, which has jurisdiction over H.R. 1740. ASA fly-in attendees also encouraged members of Congress to sign on as cosponsors to H.R. 2726 and H.R. 1740 and to introduce companion legislation in the Senate.

Closing the Digital Divide in America: Yesterday the House Committee on Agriculture conducted a hearing focusing on providing internet connectivity to rural America. As Chairman Thompson noted, in this opening statement, “throughout this Congress, the House Committee on Agriculture has had countless discussions on ways we can empower our farm families and build a robust rural economy. A pillar of these discussions is providing rural communities with access to high-speed, affordable, and reliable broadband internet connectivity.” In 2023, the Committee is tasked with reauthorizing the 2018 Farm bill to include expanding access to broadband by: providing last mile technical and financial assistance to rural communities; ensuring accurate mapping of broadband connectivity; and increasing federal financial resources to construct middle-mile infrastructure. During the recent legislative fly-in, attendees’ talking points addressed the importance of including bonds as security for guaranteeing the construction of broadband buildout utilizing federal funding. NASBP continues to raise this issue on Capitol Hill.

State Report

Update: IL HB2878 (amendment no.2) As originally introduced, SB157/HB2482, would have amended Illinois’ Little Miller Act by raising the bond threshold from $50,000 to $5,000,000. Recently, stakeholders agreed to compromise language (Amendment 2/HB 2878) which raises the bond threshold for ILDOT and IL Toll Authority contracts to $500,000. For all other public works contracts, the bond threshold is $150,000. Both provisions sunset on January 1, 2029 when the bond threshold reverts back to $50,000. HB 2878 Amendment 2 also requires the ILDOT and the Toll Authority display on their respective websites or annually report information to interested parties, such as a list of defaulted contracts, the number and aggregate amount of payment claims made under the Mechanics Lien Act, the aggregate annual revenue of the contractor derived from contracts with the State for each of its public works contracts, regardless of contract value, and the identity of the surety providing the contract bond. HB2878 as amended passed the Senate and was sent back to the House for concurrence. On May 25 the House concurred with Senate Amendment 2. The legislation now awaits the governor’s action.

Update: TX HB2518 (Bell) amends Sections 2253.001(3),(4) to expand the scope of the Texas Little Miller Act to require performance and payment bonds for public work contracts on public property leased to a nongovernmental entity. HB2518 pass the Texas’ legislature and was sent to the governor. Similar legislation passed the TX legislature in 2021 but was vetoed by the governor. The Texas Construction Association (TCA) asked their members to send letters in support of HB2518 to their TX legislators, and TCA also requested that NASBP make the same request to its TX members as well. HB2518 was signed into law by the governor on June 18.

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.