2024 NASBP Government Relations Agenda

2024 Government Relations Agenda of the National Association of Surety Bond Producers (NASBP)

NASBP, located in Bethesda, MD, is a national trade association whose membership includes firms employing licensed surety bond producers placing bid, performance, and payments bonds throughout the United States, its territories and in certain countries for construction projects and other commercial purposes.

This Agenda describes important government relations activities and initiatives, grouping them in three categories:
(1) Direct Advocacy by NASBP members and or staff, (2) Working with Coalition Partners to accomplish stated legislative goals, and (3) by using NASBP Advocacy Tools as another means to achieve a legislative solution.

1. Direct Advocacy
   Advocate for the preservation and, where possible, expansion of existing federal, state, and local statutory bonding requirements:
   
   • Educate public officials and legislators regarding the crucial public policy reasons underlying bid, performance, and payment bond requirements in relation to private/public works and infrastructure projects;
   • Monitor legislative and regulatory efforts to increase statutory bonding thresholds and oppose those that represent material increases;
   • Oppose efforts to substitute alternative products for statutorily-required bonds;
   • Monitor regulatory implementation to remove the Miller Act from periodic inflation adjustments as required by 41 U.S.C. §1908 as enacted in Section 861 of the National Defense Authorization Act (NDAA) for FY 2022;
   • Advocate for regulatory or statutory changes to require written notice when payment bonds are waived on federal construction contracts;
   • Advocate for bonds for the construction portion of Public-Private Partnership (P3) agreements to ensure that construction projects undertaken for public benefit and welfare through P3 contracts offer contracting authorities proper prequalification of entities performing construction services; guarantees of performance from solvent, third-party corporate sureties; and payment remedies for unpaid subcontractors and suppliers;
   • Advocate for statutory bonding requirements for the construction portion of the contract when third-parties receive federal loans or grant funds for the undertaking of infrastructure and P3 construction agreements, such as transportation, water, and airport projects;
   • Support the inclusion of performance and payment bonds as the form of security for the construction portion of rural broadband infrastructure projects; and
   • Monitor legislative and regulatory measures authorizing alternative project delivery methods to ensure incorporation of, or reference to, statutory bonding requirements.
     
     
   Commercial Surety Legislative Opportunity
   
   • Advocate for the consideration of and/or preservation of surety bonds as an acceptable means of security for various commercial and compliance contexts in public enterprise.
   • Advocate for bonds as an alternative form of security to letters of credit (LOCs) when small business internet service providers (ISPs) bid on procurement opportunities through federal programs offered by the Federal Communications Commission’s (FCC) Rural Broadband Auction, the U.S. Department of Agriculture’s Rural Utilities Service (RUS) ReConnect Program and the U.S. Department of Commerce’s, National Telecommunications and Information Administration’s (NTIA) program, so small ISPs are able to retain sufficient working capital and will not be forced to set aside liquid assets to pay bank fees necessary to secure an LOC, and the FCC, NTIA and RUS are financially protected in the event the ISP fails to perform.
   • Advocate for surety bonds as an acceptable form of security for energy interconnection agreements in place of LOCs, while seeking equitable bond terms.
   
   Advocate for legislation/regulations, that encourage qualified small, disadvantaged, and minority contractors to participate in public construction markets:
   
   • Support legislation that provides education and resource opportunities to small, women, minority, and veteranowned construction companies to better position them to qualify for surety credit; and
   • Support bond guarantee programs that have been reviewed and analyzed for practicality and adhere to current industry practices.
   
   Advocate for new legislative initiatives in the states:
   
   • Advocate for legislation to allow state agencies to accept the electronic digital execution and delivery of construction surety bonds and commercial surety bonds, including use of electronic signatures, seals, and powers of attorney.
     
     
2. Coalition Partners
   NASBP is part of the Construction Industry Procurement Coalition (CIPC), which includes 15 national trade and professional organizations such as the American Council of Engineering Companies (ACEC), the Associated General Contractors of America (AGC), the American Subcontractors Association (ASA), the American Institute of Architects (AIA), the American Council of Engineering Companies (ACEC), the Design-Build Institute of America (DBIA), and the Surety & Fidelity Association of America (SFAA). Reinforce alliance with ASA to strengthen grassroots advocacy efforts in the states and on Capitol Hill.
   
   In 2024, the CIPC may seek to introduce legislation addressing the following procurement reforms:
   
   • Require payment and performance bonds on federal P3 agreements for federal buildings;
   • Require better/earlier payment practices for federal change order work;
   • Require federal agencies to report during the solicitation process when it is their policy to bundle contracts; and
   • Seek additional program opportunities for members of Congress who are members of the Congressional Construction Procurement Caucus.
     
     
3. NASBP Advocacy Tools
   Encourage Support and Funding of SuretyPAC — SuretyPAC is the oldest federal PAC that is 100% devoted to representing the surety industry and establishing and nurturing relationships with candidates running for congressional office. NASBP uses SuretyPAC as one of its advocacy tools to engage, educate, and encourage federal legislators to support NASBP’s federal legislative agenda. 
   
   Communicate Government Relations Information via Focal Point and Podcast — The government relations staff will continue to keep the membership and other interested parties apprised of NASBP government relations objectives and actions and legislative and regulatory developments via issuance of Focal Point and Let’s Get Surety podcasts as needed and developments occur.
   
   Encourage Participation in Annual Legislative Fly-in — The annual legislative Fly-in will take place February 28 and 29. The host hotel (The Hilton Washington, DC, Capitol Hill), is just a few blocks from the capitol. There will be no registration fees to attend making it the perfect time to join your NASBP colleagues in the effort to ensure federal policymakers on Capitol Hill understand the significant role bonds play to protect taxpayer funds and advance public works infrastructure projects. February 28 is dedicated as the “Washington Program,” which includes political observations from Amy Walter, Editor-in-Chief of the Cook Political Report, and a surety executives panel discussion regarding current surety market conditions and issues. The Surety Panel will be moderated by NASBP 3rd VP, Monica Donatelli and her panelists will include Mike Ito (Amerisure), Rick Ciullo (Hartford), and Bob Murray (Zurich). February 29 is dedicated entirely to Capitol Hill appointments.