Committee questions bill to change delivery of good-faith deposit after bond awards

The Local Government Committee considered Senate Bill 900, sponsored by Senator Martinez, an act to amend the Local Finance Law in relation to the delivery of the good-faith deposit following award of bonds to the successful bidder.

Committee members questioned whether removing the deposit requirement would benefit municipalities and asked whether municipalities or home rule jurisdictions had expressed support for the change. A committee member said the change could “remove a lot of work” for towns but asked if municipalities had requested it and whether there was home rule support.

A staff member responded that they did not believe the bill would trigger a home rule issue and that it had been supported in the past by “NACOM,” but said they would double-check the record. Lina, identified in the meeting as a staff person, was asked to follow up with the council.

A motion to report the bill out of committee was made; Senator Roop was recorded as moving the motion. The committee reported the bill out to the finance committee. The committee recorded the outcome as 8–0 (notation in the transcript: “8 0 r”) and noted an “AWR” by Senator Wake during the procedure.

No final text changes or amendments were recorded during the discussion. Staff committed to return with a follow-up on municipal support and any home rule considerations.

What happened next: the bill was reported out of the Local Government Committee to the finance committee for further consideration.