NASBP Focal Point - June 28, 2024

Federal Report

This week on Capitol Hill: As we go to press, the House passed H.R. 8774, the Defense Appropriations Act. The $833 billion defense appropriations bill passed almost entirely along party lines, 271-198. House Republicans and Democrats were mainly in opposition relating to social policy issues included in the bill. The House adjourns today. Both Chambers will reconvene Monday, July 8.

State Activity

CA AB 2677(Chen): Amends existing law to establish that the surety's liability is limited to the penal sum on the bond. AB2677 defines surety as a corporate insurer or interinsurance exchange to which the Insurance Commissioner has issued a certificate of authority to transact surety insurance in the state. AB 2677 passed the Assembly 75-0 and was referred to the Senate Judiciary Committee where it passed 7-1. AB2677 is in response to Karton v. Ari, a decision where the surety was liable for attorney's fees even though the fees exceeded the penal sum on the bond, which established a new precedent for sureties in the state of California.

If you are aware of any bills impacting the industry, please reach out to Larry LeClair, NASBP's Director of Government Relations, and let us know.