Category: Surety bond articles

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.

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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.

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Comprehensive Legislative Reports for Commercial Surety, Contract Surety and Fidelity posted for Members. Navigate to: Government Relations / Legislative Comprehensive Reports

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ERISA Dishonesty Bond (SFAA-F-303; XX-FM-24) Status Report posted for Members on the Regulatory Filings / Countrywide Filings page.

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Massachusetts Form Filing Requirements - Fidelity and Crime Filings Status Report  posted for Members on the Regulatory Filings / Countrywide Filings page.

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The Fidelity and Forgery Rules Manual has been updated with a Fidelity Rules Manual Exception page for Hawaii for Members and Subscribers (effective date 3/1/2018).

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Filing to Update Surety Rules Manual *XX-SM-10 report updated for Members on the Regulatory Filings / Countrywide Filings page.

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Crime Protection Policy Schedule Endorsement Filing (SFAA-F-294), XX-FM-21, Loss Cost Filing Number XX-FLC-13 status report updated for Members on the Regulatory Filings / Countrywide Filings page.

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SFAA’s Bill to Address Attorneys’ Fees Awards in Bond Claims Considered but not Enacted

Washington SB 6428/HB 2852 would have placed reasonable limits on the award of attorney fees’ against sureties. The bill provided that the rights granted under current procurement law would have been the exclusive remedy for recovering attorneys' fee for all disputes, including but not limited to coverage disputes involving a performance or payment bond required under the Little Miller Act. The legislation stalled in the House and died at the end of the session since bills do not carry over to 2019 in Washington.

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

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Draft Minutes from the following
recent meetings have been posted for Members:

• Fidelity Claims Advisory Committee meeting - January 24, 2018
• Board of Directors meeting - December 7, 2017
• Commercial Surety Advisory Committee meeting - December 6, 2017
• Fidelity/Fidelity Claims Advisory Committee meeting - November 8, 2017
• e-Business Advisory Committee conference call - October 4, 2017
• Diversity & Human Resources Advisory Committee meeting - September 28, 2017
• Actuarial Advisory Committee meeting - September 13, 2017
• Contract Bonds Advisory Committee meeting - September 13, 2017
• Government Affairs Advisory Committee meeting - September 13, 2017
• Communications Advisory Committee conference call - September 12, 2017
• Surety Claims Advisory Committee meeting - June 20, 2017
• Fidelity Advisory Committee meeting - May 10, 2017
• International Advisory Committee meeting - May 10, 2017
• Surety Claims / Corporate Counsel Advisory Committees meeting - January 18, 2017
• Joint Automation Committee meeting - September 24-25, 2015
• Statistical Advisory Committee meeting - September 2, 2015

Members should navigate to the Board and Committees section of the website for for additional information
about SFAA Board and Advisory Committees.

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