NASBP Focal Point – March 2, 2023

Federal Report

Federal Highway Admin (FHWA)–As reported in the Nov/Dec 2022 Pipeline, in December 2021, the FHWA issued a policy memo concerning the implementation of the Infrastructure Investment & Jobs Act (IIJA) urging local and state governments to prioritize climate-friendly infrastructure projects and to dedicate funding towards the maintenance of existing roads and bridges, rather than expanding capacity. On February 24, the FHWA issued a revised policy memo, superseding its December 2021 memo. The new memo clarifies that “states and not the FHWA retain the ultimately control and responsibility for IIJA funding.” “States determine which of their projects shall be federally financed by federal-aid highway formula dollars.” House Transportation & Infrastructure Chairman, Sam Graves (R-MO), and Senate Ranking Member on the Environment & Public Works Committee, Shelly Moore Capito (R-WV), both of whom have been outspoken in opposition the to Dec. 2021 FHWA memo, stated jointly, “Today is a win for states, communities and millions of Americans who stand to benefit from the flexibility provided in the Infrastructure Investment and Jobs Act,” Rep. Sam Graves (R-Mo.) and Sen. Shelley Moore Capito (R-W.Va.) said jointly Feb. 24.

There’s Still time to Register–So Don’t Delay–Federal Legislative Fly-in, March 29/30—For the first time in nearly three years, an in-person fly-in is scheduled for March 29 and 30. An opening reception, at the host hotel Kimpton The George, just a few blocks from the nation’s capitol, will kickoff the fly-in festivities on March 29. Fly-in attendees must register separately for these two items: First: Register for the reception/fly-in at the 2023 fly-in page; Next: Register HERE to schedule your Capitol Hill appointments arranged by our outside consulting firm, Advocacy Associates. Although the room block is sold out, there are hotels in close proximity to the Kimpton George. For a list of those hotels, please see the Fly-in webpage.

State Report

SB157 (Villivalam)/HB2482(Buckner)–Amends Section 1 (30 ILCS 550/1) of the Public Construction Bond Act, (Illinois’ Little Miller Act), by raising the current bond threshold from $50,000 to $5,000,000. The legislation also creates a “self-insured risk pool” to pay claims or damages arising under a public works construction contract valued at $5,000,000 or less because of a contractor’s failure. SB157 was referred to the Senate Assignments and Executive Committees, while HB2482 was just assigned to the House State Government Administration. NASBP has created policy points for you and your clients to oppose these bills. Neither SB157 nor HB2482 are scheduled for public hearings. Once hearings are scheduled, NASBP members and their clients will be asked to submit opposition letters and to perhaps testify in-person. As we go to press, SB157 has five co-sponsors. NASBP is coordinating with SFAA and is working in conjunction with other IL contracting groups to defeat this legislation.

Signed into law–VA HB 1490 (Davis)–The VA General Assembly passed legislation which allows localities to waive VA LMA bonding requirements (transportation and non-transportation) for indefinite delivery or quantity (IDIQ) contracts for the total sum of the contract amount if the local governing body has adopted an alternative ordinance. The legislation did require bonds for IDIQ contracts for the dollar amount of individual tasks identified in the underlying contract. While the bill seemed to be well-intended for the inclusion of small business contractors bidding on IDIQ contracts, the legislation needed additional clarification. NASBP offered language to clarify the legislation, which was not fully-adopted. The amended/enacted legislation now reads:  Localities may by ordinance allow a contractor otherwise subject to subsection A to furnish to the local public body a performance bond and a payment bond, each of which shall be equal to the dollar amount of the individual tasks identified in the underlying contact.

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.