Capitol Hill Update

NASBP Advocacy At Work 

On Tuesday, February 11, the U.S. House of Representatives voted 221-201 to lift the debt ceiling until March 2015, thus removing the threat of the country defaulting on its debt. The U.S. Senate approved the debt limit bill the following day. Congress' next major fiscal decision regarding government funding is the transportation funding that is to expire on September 30. NASBP has been following and advocating on behalf of its members on the following issues.   

Urging that Bonding Be Required on P3s

On February 11, the U.S. House Transportation and Infrastructure Committee conducted its first roundtable policy discussion on public-private partnerships (P3s). The roundtable discussion, “Case Studies in Public-Private Partnerships,” examined the use and opportunities for P3s across all modes of transportation, economic development, public buildings, water and maritime infrastructure and equipment. Representative John Duncan (R-TN-2nd) and Representative Michael Capuano (D-MA-7th), who serves as Ranking Member, chaired the roundtable. Participating from the private sector were the chief operating officer from a large general contractor, a state legislator from Indiana, and a representative from a leading international toll road developer and investor with major assets in Australia and emerging interests in North America.

Key issues discussed included: gaining insight concerning what the private sector looks for when investing in infrastructure projects; exploring the challenges that states and public sponsors experienced in developing P3 contractual agreements, and examining both the long-term advantages and disadvantages of different P3 structures. One of the panelists, Indiana state legislator Terri Austin, who served as co-chair on the National Conference of State Legislators (NCSL) Task Force on P3s in Transportation and as NCSL’s Vice-Chair of the Transportation Committee, noted NCSL’s development of a Tool Kit on P3s for other states to consult when considering entering into P3 agreements. You may recall, that NASBP, ASA, and SFAA sent a letter to Maryland legislators on August 2, 2013, regarding the NCSL's publication "Public-Private Partnerships for Transportation: A Toolkit for Legislators.” This toolkit is silent on the importance of bonding, thus NASBP, ASA, and SFAA have encouraged NCSL to address bonding requirements to assist state legislators. NASBP will take this opportunity to engage state Representative Austin in a discussion concerning the importance of bonding the construction portion of P3 agreements.
  

H.R. 776, the Security in Bonding Act

Meanwhile, H.R. 776, the Security in Bonding Act may be considered for markup in early March in the U.S. House Small Business Committee. The Small Business Committee specifically will address the provision that increases the guarantee to surety companies who participate in the Preferred Program of the Small Business Administration's (SBA) Surety Bond Guarantee Program from 70 to 90%. H.R. 776 was also referred to the House Committee on the Judiciary, which has jurisdiction over the individual surety provision. With the Small Business Committee taking action on the bill, hopefully the House Judiciary Committee will soon follow. 

Act for Multistate Licensing for Insurance Producers

Finally, legislation re-establishing the National Association of Registered Agents and Brokers (NARAB) passed the U.S. Senate in late January and was sent to the House for concurrence. The NARAB passed the House in November 2013 by a 397-6 vote. The Senate bill was passed as part of S.1926, the Homeowner Flood Insurance Affordability Act of 2014 and National Association of Registered Agents and Brokers Reform Act of 2014. The Senate passed the bill 67-32, which included an amendment by Senator Coburn (R-OK) that would allow states to opt-out. NARAB would create a non-profit, independent board that would allow multistate licensing for insurance producers. Under the House bill, H.R. 1155, the “National Association of Registered Agents and Brokers Reform Act of 2013," insurance agents will be able to apply for NARAB membership and become licensed to sell insurance in multiple states, but states will maintain their full authority in regulating the business of insurance. The legislation is modeled after the National Association of Securities Dealers (NASD) and will be a completely voluntary, self-regulating organization.