Concerns with HB 1117, legislation to increase surety bond threshold for state educational institutions

On behalf of the members of the National Association of Surety Bond Producers (NASBP), a national trade organization of professional surety bond producers, whose membership includes resident and non-resident firms employing licensed surety bond producers placing bid, performance, and payment bonds throughout the U.S., including in Indiana, I am contacting you regarding our concerns with House Bill 1117, as recently passed by the Senate. As it currently stands, HB 1117 increases the statutory bond threshold on state educational institutions’ contracts from $200,000 to $500,000. Subsequently, HB 1117 is a substantial policy shift from the original bills that you sponsored, which was ultimately approved by the House. Moreover, the impact of HB 1117 would be many more taxpayer-funded construction contracts procured without the vital assurance of performance and payment guarantees, and thereby placing public funds at risk in the event of contract defaults.

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