Written Testimony re: AB 345 – Neal

NASBP lauds Representative Neal and Senator Ford for recognizing the importance of providing opportunities to small and emerging contractors, so they may participate on state, local or municipal construction contracts. Unfortunately, there may be unintended consequences if A.B. 345 were enacted into law. Those same constituents, which Representative Neal and Senator Ford are attempting to help, may fall victim to those unscrupulous individual sureties who prey on such small businesses. There are well-documented situations, which include Nevada (see below) where assets pledged by individual sureties have proven to be illusory or insufficient, causing significant financial harm to taxpayers, contractors, subcontractors and suppliers, many of whom are small businesses wholly reliant on the protections of payment bonds to safeguard their businesses.

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