Blogs

Individual surety provision is a key focus for NASBP Legislative Fly-in

  

The June 11-12, 2014 NASBP Legislative Fly-in will continue the association's emphasis on the accomplishments and contribution of the surety industry, with a particular focus on a bill that could set more stringent requirements for assets backing individual surety bonds.

NASBP members are being encouraged to talk to their federal legislators about the importance of surety bonds and how passing House Bill 776, the Security in Bonding Act of 2013, will help the industry. They’re also calling for enhancements to the U.S. Small Business Administration's Surety Bond Guarantee Preferred Program and for lawmakers to include surety bond requirements for public-private partnership agreements.

NASBP members said they've seen the effects of the association's efforts to educate lawmakers about the surety industry and the importance of the surety product.

When the Fly-in was a new event, “it was rare to find someone who understood what we did. Now we don't have to start at square one all the time,” said Lynne Cook, Senior Vice President at Early, Cassidy & Schilling in Rockville, MD, and Second Vice President of NASBP.

One of the main goals of the event is to develop a rapport with lawmakers so that they know NASBP members can serve as a resource on surety-related issues, said Kevin Garrity, Senior Vice President of Surety and Construction Services at Rose & Kiernan in East Greenbush, NY.

“We're not having to explain what we do anymore. We're able to talk about specific issues” without having to go through the basics of the industry, he said.

Garrity, who recently became chairman of the NASBP Government Relations Committee, said the Fly-in is a “cornerstone event” where surety professionals can advocate on behalf of clients, and its success is important for ensuring the industry remains viable.

Cook said the Fly-in is a good opportunity to tell lawmakers “about the work that we've been doing with small and emerging contractors, and small businesses and SuretyLearn.org,” which is a tool for helping contractors understand the basics of bonding, “as well as discussing H.R. 776, which we want to get passed.”

H.R. 776 is the Security in Bonding Act of 2013, which includes two provisions that are chiefly of interest to NASBP. The first of those is related to individual sureties, and it is intended to ensure that stable, easily liquidated assets back bonds provided by individual sureties. These assets would have to be backed by the U.S. government and retained by the government until the completion of a contract, said Lawrence LeClair, Director of Government Relations for NASBP.

The other key provision would raise the guarantee from 70% to 90% for surety companies that participate in the SBA Surety Bond Guarantee Preferred Program.

Both provisions were included in the National Defense Authorization Act of 2015, which passed the House last week. The bill now moves to the Senate, and a conference committee will ultimately determine what is included in the final version of the bill, LeClair said.

“Our hopes are that the Senate will take the House bill and leave the elements of H.R. 776 intact,” he said.

This year's Fly-in events will begin June 11 with a reception to review the talking points ahead of meetings with lawmakers and their staff. The next day, June 12, will begin with a brief morning presentation including remarks from U.S. Representatives John J. Duncan Jr. (R-Tenn.-2nd) and Grace Meng (R-NY-6th) and Adam Hepburn, Legislative Director for U.S. Representative Richard Hanna (R-NY-22nd). The rest of the morning and afternoon will be dedicated to meetings with members of Congress, and the day will end with a reception.

In addition, a free NASBP Virtual Seminar is scheduled for May 29 to review this year's key federal legislative matters and talking points.

For more information and to register for the Fly-in, visit nasbp.org

0 comments
58 views

Permalink