Category: Surety Bond Articles

New bonding opportunities enacted in the state legislature that may be of interest to SFAA members has been posted. The report is divided by line of business: contract surety, commercial surety, and fidelity bonds. For your reference, we have included the date of enactment for each bill. SFAA updates this list periodically as new bonding opportunities are enacted.

Access the New Bonding Opportunities now

The Preliminary 2018 Top 100 Reports have been posted for Members and Subscribers. Use the following links  Surety / Fidelity or navigate to Statistics / Statistical Reports: Financial Statement Data / Top 100 from the menu.

Non-Members may purchase these reports by completing a Statistical Report Order Form. Click here for a complete list, description, and release schedule of statistical reports.

The data used to produce these reports have been compiled by both The Surety
& Fidelity Association of America and SNL Financial LC, and is copyrighted
by both The Surety & Fidelity Association of America and SNL Financial LC.
Reproduction in any form in whole or in part is prohibited without written
permission from The Surety & Fidelity Association of America.

Indiana Governor Signs SFAA?s P3 Bonding Bill

Indiana HB 1374 is SFAA’s bill that amends all three of the state’s public-private partnership (P3) laws to require a 100% payment bond and a 50% performance bond. The requirements will apply to P3 agreements entered into after June 30, 2019.

Members should visit Advocacy / General Info (Members) for more information.

Case Summary Reports have been posted for Members, Subscribers, Claims Advisors and Case Summary Subscribers: 2003-2019 Surety and Fidelity Cases Indexed by State/Topic 2003-2019 Surety Cases Indexed by Topic 2003-2019 Fidelity Cases Indexed by Topic 2003-2019 Bail Cases by State

Navigate to Member Services / Claims / Case Summaries.

Gap Financing Issues in Nebraska

Members should visit Advocacy / What’s New for more information.

Colorado Enacts P3 Bonding Requirements

 Bill Provides Additional Protections for Workers, Businesses and Taxpayer Money

April 18, 2019, Washington, D.C. ? Colorado Governor Jared Polis has now signed SB 138 into law. The bill amends Colorado law to clarify that current surety bonding requirements for public construction projects apply to public-private partnership construction projects.

?Requiring surety bonds on P3 construction projects greatly reduces the risk of leaving taxpayers on the hook in the event of a contractor default, ensures projects are completed, and protects subcontractors, suppliers and workers,? says SFAA President Lee Covington. ?When surety bonding protections are in place, everyone wins.?

P3s provide a new method of financing for public infrastructure projects. A P3 is a way for governments and agencies to access the capital market, but the construction risk remains the same. Research shows more than one out of four contractors fail. Surety bonds significantly increase the likelihood that a construction contract will be completed, and that subcontractors, suppliers and workers will be paid. No matter the project delivery method, surety bonds help public agencies assess and minimize their risk.

For more information on the value of surety bonds, visit www.surety.org.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write over 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience.

The Surety & Fidelity Weekly newsletter is published every Monday. The newsletter provides valuable information regarding surety and fidelity industry developments, federal and state legislative activity, legal decisions, new bonding opportunities, regulatory news, upcoming industry events, and much more.

2019: June 10

• Success: SFAA-NASBP Legislative Fly-In
• LSA Spotlight: Surety Association of Ohio
• Texas Legislature Passes ?Right to Repair? Bill for Construction Defects
• Minnesota Repeals Bond Required for Fuel Distributors and Special Fuel Dealers
• Reminder: Call for Data

View older Newsletters

SFAA Bill to Require Bonding for P3s in Indiana on Governor?s Desk

Members should visit Advocacy / What’s New for more information.

Clarifying Bonding Requirements in Missouri Includes Expanding the Payment Bond Obligations

Members should visit Advocacy / What’s New for more information.

Pennsylvania Bill to Amend the Little Miler Act Starts to Move in House

Members should visit Advocacy / What’s New for more information.

Colorado Enacts New Law Requiring Bonding for P3s

Members should visit Advocacy / What’s New for more information.

Arkansas Enacts Contractor License Bond Requirement with High Bond Amount

Members should visit Advocacy / What’s New for more information.

Illinois Alternative Project Delivery Bill Moving with SFAA Bonding Language Included

Members should visit Advocacy / What’s New for more information.

Mississippi Enacts Standards for Requiring Bonding for Private Construction Projects

Members should visit Advocacy / What’s New for more information.

New York Executive Order Imposes Integrity Clause on State Contracts

Members should visit Advocacy / What’s New for more information.

Will Bad Facts Make Bad Law in Oregon?

Members should visit Advocacy / What’s New for more information.

Privatized Military Housing Woes Continue

Members should visit Advocacy / What’s New for more information.

Local Governments Pressuring on State Bond Thresholds

Members should visit Advocacy / What’s New for more information.

States Not Waiting for Congress on Infrastructure

Members should visit Advocacy / What’s New for more information.

U.S. House Committee Marks Up Marijuana Safe Harbor Bill

Members should visit Advocacy / What’s New for more information.

Virginia Establishes Sunrise Process for Occupational Regulations

Members should visit Advocacy / What’s New for more information.

SFAA and APCIA Seek to Address Bonding in Illinois Energy Savings Legislation

Illinois HB 3398, as introduced, would have allowed state construction agencies and public universities to enter into energy savings contract for a period not exceeding 30 years. SFAA and APCIA sought amendments to mirror the Ohio law such that the performance bond shall be for no more than one year, and renewable at the option of the construction agencies for a term no to exceed three consecutive years. The legislators understood that their bill required a bond that may not be available and considered our amendments, but decided to enact an enabling bill instead under which state purchasing officers will be allowed to use energy savings contracts that do not exceed 25 years. If the enabling act gets passed this year, we will need to work on a bonding requirement in the regulations that will be needed to implement HB 3398.

Members should visit Advocacy / What’s New for more information.

Bill Restricting Local Licensing Authority Moving in Florida Legislature

Members should visit Advocacy / What’s New for more information.

SFAA Working on Oklahoma Bill that Prohibits Retainage When Bonds are in Place

SFAA and AIA are working with the local surety association in Oklahoma to address HB 2676, which would prohibit the withholding of retainage from the general contractor on public buildings and public works projects if bonds under the Little Miller Act are in place. Oklahoma’s bond threshold is $50,000, and existing law provides that not more than 5% of the contract price may be withheld. For subcontractors, the bill provides that either retainage of not more than 5% may be withheld or performance and maintenance bonds could be required as a condition of the subcontract.

Members should visit Government Relations / General Info (Members) for more information.

SFAA Addressing Proposed Bond Threshold Increase and P3 Pilot Program in Vermont

SFAA is addressing HB 917, which would increase the bond threshold from $100,000 to $500,000.  As drafted, the bill would have provided for a $1 million bond threshold.  The bill also would provide for a pilot program for the Agency of Transportation to enter into public-private partnerships (P3s) for transportation infrastructure projects.  The state legislature would set the requirements and would have to approve each P3 project, unless the project will have a project lifetime cost that is less than $2 million or the project has been approved in the most recently adopted Transportation Program.  The bill does not specify a bonding requirement for this P3 program.  The program would expire on July 1, 2023.

Members should visit Government Relations / General Info (Members) for more information.