Projected Surety & Fidelity Legislative Issues in 2016
ALABAMA
ARIZONA
--Seek: Amend the P3 law enacted in 2012 to require bonding
ARKANSAS
--New: Legislation was enacted to authorize the adoption of regulations for DOT design-buildfinance contracts. Comprehensive P3 bills failed in 2015. The legislature is not in session in
2016. Need to monitor proposed regulations.
CALIFORNIA
--New: The law authorizing P3s for transportation P3 law expires on Jan 1, 2017. The existing
law requires that the private partner must demonstration that it has the capacity to obtain all
required payment and performance bond. Bills were introduced in 2015 to extend and/or
eliminate the sunset provision, which carry over to 2016. AIAI is taking the lead on this
legislation.
COLORADO
--New: Continued problems with Denver RTD letting projects without bonding may lead to
legislation at some point.
CONNECTICUT
--New: The P3 statute authorizing the governor to approve up to five P3 projects prior to Jan. 1,
2015 was not extended. Bills authorizing a P3 commission also failed in 2015. P3 bills may be
back in 2016.
--Continuing: SFAA and AIA are going to meet this Fall with leadership and the Administration
regarding bonding for small, emerging and minority contractors and offer our MCDP. There
again were bills this year to waive bonds for small contractors on projects under $500,000 and to
provide bonds through a bond guarantee program on projects over $500,000. A placeholder was
introduced to increase the bond threshold but a bill never was drafted.
DELAWARE
DISTRICT OF COLUMBIA.
FLORIDA
--New: Legislation was introduced to require medical marijuana businesses to post “performance
and compliance bonds” in 2015. Large bond amount and the bills lack clarity on the bond’s
obligation. This bill may return in 2016.
--Continuing: The bill that failed to pass this year, which would extend authority to enter into
P3s to district and state colleges, will be back. It contains the bonding provisions that SFAA and
the Florida Surety Association have gotten in to P3 laws enacted in prior sessions.
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GEORGIA
HAWAII
--New: Several P3 bills were introduced in 2015 that can carryover to 2016. Some require
studies of P3s; Other bills permit P3s on a specific projects; A few authorize P3s. The bonding
requirements vary and would need to be addressed if the bills move in 2016.
IDAHO
ILLINOIS
--New: Legislation for a statewide contractor license bond was introduced in 2015 that would
eliminate local bonds. This will carryover to 2016.
--New: A P3 placeholder was introduced in 2015 but no bill ever materialized. A carryover bill
would permit the DOT to use the Construction Manager/General Contractor for procurements
limits the bond requirements to the construction portion of the project.
INDIANA
--Continuing: Indiana P3 laws do not require 100% bonding and need to be amended. SFAA and
AIA had the bill introduced to amend all P3 laws, which drew opposition and led us to speak
with the Senate leadership about changing just the public building P3 law but time ran out.
IOWA
KANSAS
KENTUCKY
--Continuing: P3 legislation that was vetoed in 2014 returned in 2015, but it failed to move. The
bill needs to come back for a joint bridge project with Ohio.
LOUISIANA
--Continuing: Caps on appeal bonds surfaces periodically
MAINE
--New: P3 legislation was introduced in 2015 that can carry over to 2016. The bill would require
performance and payment bonds in compliance with the Little Miller Act for the construction
portion of the project.
MARYLAND
--Continuing: There is a continuing need to monitor Maryland closely for legislation impacting
bonding in order to get in front of it. There was legislation in 2015 on excessive bonding and
change orders that went nowhere.
MASSACHUSETTS
--New: Legislation has been introduced to delete the subcontractor bond requirement for
construction manager projects. The bill would allow for the use of subcontractor default
insurance. It is expected to carryover to 2016 and be addressed then, if at all. This is a high
priority for the local AGC.
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MICHIGAN
MINNESOTA
--New: Several bills pertaining to a transportation P3 pilot program were introduced in 2015 and
can carry over to 2016. SFAA achieved amendments to require bonding, but the P3 pilot
program was dropped from the bill that was enacted. Legislation authorizing P3s for public
buildings and infrastructure projects also was introduced in 2015 and can carry over to 2016. The
bill contains discretionary bonding requirements.
--New: Workers’ compensation self-insurer security fund bill introduced in 2015 that can carry
over to 2016.
MISSISSIPPI
-- Continuing; Caps on appeal bonds have been a perennial issue.
MISSOURI
--New—Recent disparity study recommends increase in state bond threshold and a bonding
program to assist small, emerging and minority contractors to obtain bonds.
--New: P3 legislation was introduced in 2015 that failed. SFAA and AIA achieved amendments
to the bonding requirements. The P3 bill may return in 2016.
--New: Legislation providing for the regulation of individual sureties was introduced in 2015 and
never moved.
MONTANA
--New: Bond threshold bill introduced in 2015 that was defeated. Legislature not in session in
2016.
NEBRASKA
--Seek: Legislation to permit service of process on the Secretary of State for federal lawsuits on
bonds in order to eliminate the requirement for sureties to file a resident agent in each federal
district.
--New: Carryover bill would require the ransportation and Telecommunications Committee to
study the roads in the State and alternative project funding sources, including P3s.
NEVADA
--New: Legislation that would have authorized and regulated individual sureties and legislation
providing for a $1 million bond threshold were defeated in 2015. Also, a bill very similar to the
Maryland individual surety bill introduced and was defeated. Legislature is not in session in
2016.
NEW HAMPSHIRE
--Continuing; In 2015, legislation providing for a committee to study the possibility for
legislation forming a P3 for intermodal transportation was enacted. Findings and
recommendations for proposed legislation are due by January 1, 2016.
NEW JERSEY
--Still Pending. Good contractor license bond opportunities in pending, but impetus for a bond
requirement is waning.
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--Still Pending; New Jersey has P3 legislation that has been returned to the legislature from the
Governor with a conditional veto. SFAA and AIA achieved amendments to the bonding
provisions that were not affected by the Governor’s recommendations.
--Still Pending: Pending legislation would increase the state bond threshold from $200,000 to
$300,000 and requiring indexing the bond threshold for inflation going forward.
NEW MEXICO
--New: P3s legislation was introduced in 2015, but the bill ultimately failed to pass. This may
well come back again. It has been introduced in prior sessions as well, but has always gotten a
triple committee referral, which makes it hard to pass.
NEW YORK.
--Continuing: Monitor the impact in the new law that changes the statute of limitations for
actions on the payment bond and seek amendments to the law;
--New: There will be a P3 bill in New York and it will most likely come from the Governor’s
budget proposal
--New: Legislation to increase the bond threshold from $100,000 to $200,000 for public works
contracts subject to the existing law’s multiple award requirements has been sent to the
Governor. SFAA and AIA are seeking a chapter amendment to eliminate or further limit the
increase.
--New: Legislation to prohibit withholding retainage on any payment due to a material supplier
for materials that have been delivered and accepted on a public construction project has gone to
the Governor. SFAA is supporting AGC in seeking a veto of the bill.
NORTH CAROLINA
-- New: Bonding for small and emerging contractors remains an issue and SFAA’s current
efforts might help initiate a move to reduce the state bond threshold ($500,000) as some point in
the future.
--Seek: SFAA and AIA sought a bill sponsor to amend the bonding requirements for energy
savings contracts, which involve a long term warranty. The Treasurer is involved with this issue
and we agreed to meet with all interested parties and seek a bill that all interested parties can
support.
NORTH DAKOTA
OHIO
--Continuing; The 2012 budget bill amended Chapter 153.11 so that the bond amount is
increased with every change order. The law should be amended to restore the prior law, but the
local sureties want to establish better working relationships with stakeholders first
OKLAHOMA
OREGON
--Seek: Amendment to the motor vehicle dealer bond to assure that injured consumers are paid
first under the bond.
--New: Workers’ compensation self-insurer security fund bill introduced in 2015.
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PENNSYLVANIA
--Seek: Amendment to the law needed to address the doctrine of nullum tempus
--Still Pending—P3 legislation is pending and the bonding provisions need to be addressed,
starting this fall.
RHODE ISLAND
--Continuing: After a year hiatus, the surety bad faith bill came back again in 2014 for probate
bonds and we defeated it. The bill did not return in 2015, and it remains to be seen if it will
return in 2016.
--New: P3 legislation was introduced that would have required performance and payment bonds
for the construction portion of the project. The bill failed in 2015 and may return in 2016.
--New: Bills limiting retainage to 5% failed in 2015 and may return in 2016
SOUTH CAROLINA
--Continuing: To amend the advisory organization law or develop a regulatory solution so that
SFAA’s annual license renewal as an advisory organization is not dependent on the requirement
that SFAA submit a copy of an examination that is five years old or less.
-- Continuing: P3 legislation was introduced in recent years; The P3 bill could come back
although it was not introduced in 2015.
SOUTH DAKOTA
TENNESSEE
--Continuing: P3 legislation has been considered but not enacted in the past few years.
TEXAS
Not in session in 2016
UTAH
--New: New law enacted to change the statute of limitations for claims on fidelity bonds. SFAA
is seeking amendments to resolve this in 2016.
VERMONT
VIRGINIA
--Seek: Amend the transportation P3 law to require bonding of the construction portions of P3s;
--Continuing: Amend the Insurance Code to give the commissioner authority to issue a cease
and desist order that prohibits persons and entities located in the Commonwealth from engaging
in unauthorized insurance in any state, rather than just in Virginia.
--Continuing: To amend the 2008 law giving colleges and universities a $1 million bond
threshold so that the educational institution must disclose in its contract specifications that there
is no payment or performance bond in place on a project under $1 million and must provide
written justification for acceptance of alternate security. This is going to be difficult to amend
absent a major default at UVA.
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WASHINGTON
--New: P3 legislation introduced that would eliminate bonding requirements for the projects was
introduced in 2015 and can carry over to 2016. There also is legislation to exempt P3s from the
state bond threshold that returned in 2015.
--New: Legislation to increase the bond threshold from $35,000 to $150,000 was introduced in
2015 and can carry over to 2016.
--New: Legislation allowing for P3s for the I-73/I-74 NHS Corridor Project was introduced and
can carry over to 2016.
WEST VIRGINIA
--Continuing: Trial bar will seek to restore third-party bad faith law repealed in 2005;
--Continuing: There is some interest in regulating roofers and rogue contractors, which might
provide a license bond opportunity.
--New: Legislation requiring claims to be handled by a resident adjuster was introduced in 2015.
The bill never moved, but technically can carry over to 2016.
WISCONSIN
--Seek: Amend the state bond threshold law to repeal the biennial review for inflation
WYOMING
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