On Monday, President Trump sent his FY 2019 proposed budget up to Capitol Hill, which included the long-awaited proposal addressing an infrastructure spending package. The plan calls for spending $200 billion in federal funds over a ten-year period to generate $1.5 trillion in investments. The 53-page proposal "Legislative Outline for Rebuilding Infrastructure in America," is structured around four main priorities; generate $1.5 trillion in new investments, shorten permitting requirements, invest in rural infrastructure, and invest in worker training programs. The $200 billion will allocate $100 billion for direct grants to local governments, $50 billion to projects in rural areas in the form of block grants, $20 billion to large projects, and $30 billion dedicated to existing infrastructure programs. What is unique about the proposal is that states would provide roughly 80% or more in funding. The Transportation Construction Coalition (TCC), of which NASBP is a member, issued a statement regarding the President's plan. While the TCC lauds the plan to improve highway and transit infrastructure, TCC opposes the elimination of transit capital and other grant programs and expresses concern that the plan is not addressing the necessary reforms needed to ensure the financial solvency of the Highway Trust Fund. NASBP will begin to meet with those House/Senate Committees working on the infrastructure proposal and will keep everyone apprised of our efforts moving forward.  

H.R. 4486 (Velázquez) 

Representative Nydia Velázquez (D-NY-7) has introduced a standalone bill identical to what she offered as an amendment to last year's (FY 2018) National Defense Authorization Act (NDAA). H.R. 4486 amends Title 41 to exclude the Federal Miller Act from periodic threshold increases based on inflation. NASBP and SFAA have started to meet with Senate staff from the Homeland Security and Government Affairs Committee, which has jurisdiction, to ensure they are acquainted with and support the legislation. The goal is to included the Velázquez bill in the FY 2019 NDAA. 

Update: MS SB 2430 (Horhn) would amend Miss. Code Ann. § 31-5-51 by raising the threshold from $25,000 to $50,000. This particular code is only relevant to non-highway projects. Highway works in Mississippi would still be bonded at $1,500. SB 2430 was referred to the Senate Committee on Accountability, Efficiency, and Transparency on 01/15/2018. SB 2430 died in Committee.

Update: VA HB 398 (Davis) adds a sunset date of July 1, 2021 to the provisions authorizing a locality, where the bid, performance, and payment bond requirements are waived, to waive the requirement for prequalification for a bidder or contractor with a current Class A contractor license for non-transportation-related construction contracts. This locality waiver was enacted last year as HB 2017. As originally enacted by the legislature, HB 2017 included a sunset date, however, the date was removed by former Governor Terry McAuliffe during the bill's signing.  HB 398 passed the House on February 6 and was referred to the Senate Committee on General Laws and Technology.

Update: AL SB 184 (Orr) adds Section 8-29-9 to the Code of Alabama 1975, which would require an entity entering into a public-private agreement of $50,000 or more for development or construction, or both, to occur on public property or public right-of-way to be subjected to Section 39-1-1, the Alabama Little Miller Act, regardless of the origination of the financing or funds for the work or improvements to be accomplished in the agreement. On February 8, SB 184 was approved by the Committee on Governmental Affairs.

Update: IN HB 1301 (Carbaugh) amends three current P3 statutes to require a performance bond in an amount equal to 50% of the cost to design and construct the public facility; and provide for the payment of contractors and subcontractors under IC 4-13.6-7, IC 5-16-5, or IC 36-1-12, whichever is applicable. NASBP sent a letter of support for the bill as originally introduced, before the performance bonds were amended to 50%. NASBP will continue to monitor this legislation and provide the membership with updates.  HB 1301 was amended in the House to require bonds at 25%.

Update: VA HB 1084 (Yancey) expands the timeframe to take action on a performance bond from one year to five years after the date of substantial completion and the expiration of all warranties. HB 1084 also eliminates the application of the discovery rule. Currently a five-year statute of limitations only applies to VDOT work. HB 1084 was referred to the House Committee on General Laws on 01/10/2018. NASBP continues to analyze the impact of this bill on the surety industry.