SuretyPAC: Supporting Those Who Will Support Us

An all too familiar refrain is “no one understands surety,” especially when surety professionals interface with public officials and legislators. That certainly is the case in many situations where we face misguided legislation and regulations, necessitating that we engage in constant education campaigns about the merits of surety bonding. In most cases, the government official or the legislator simply never has had exposure to surety matters. Other times, the official or legislator may harbor incorrect notions of bonds and bonding told to them by persons with differing political agendas. In either case, surety professionals often have their work cut out for them in guiding such persons to an adequate understanding of the importance of bonding.

The surety industry certainly is not the only industry that is little known and fairly complex for those outside of the industry to understand. However, the stakes may be higher for the surety industry in educating legislators, as legislators hold exclusive sway over the continued existence of statutory, and compulsory, bonding requirements in the various jurisdictions. Having legislators learn the importance of mandatory bonding requirements for the protection of contracting authorities and taxpayer funds is critical. Better yet, providing meaningful support to candidates for office at federal and state levels who already appreciate the importance of surety requirements so they can assume elected office is the best of all situations for the continued viability of the industry. So how do we do that?

At the federal level, NASBP uses its political action committee, called SuretyPAC, a critical tool to get in front of members of Congress (to learn more about SuretyPAC, click here), to support congressional candidates who demonstrate pro-business views or who have industry experience that aligns with the interests of the surety industry. In each freshman class of congressional representatives, NASBP actively seeks out those with ties to the construction, insurance, and surety industries with whom to cultivate productive working relationships on federal legislative matters, especially if he or she is assigned to a congressional committee having jurisdiction over matters important to suretyship, such as governmental oversight, small business, finance, or transportation.

At NASBP meetings, you have heard me tell of the story of U.S. Representative Richard Hanna of the 22nd Congressional District in New York, who had operated a successful construction business for decades before seeking election to Congress. In our visits to his office, he has remarked to NASBP Government Relations Director Larry LeClair and me of his pride in eventually “earning” surety credit as he was getting his construction firm started. He readily understood the industry’s request to introduce legislation at the federal level to curtail abuses of individual sureties pledging worthless or non-existent assets on federal construction contracts. He, in fact, has been the primary sponsor of our federal individual surety legislation now in three straight Congresses and has been a stalwart on moving it forward in Congress.

We also like to find and to promote a candidate before he or she is elected to Congress, if we know that the candidate has a strong chance of election and has first-hand knowledge of the importance of suretyship. On July 29, NASBP hosted a “meet-and-greet” for a candidate running for election as the representative of the 8th Congressional District in Maryland to introduce that person to other organizations with which NASBP works closely, like the American Subcontractors Association, the National Electrical Contractors Association, and the American Institute of Architects. NASBP has had a productive working relationship with State Delegate Kumar Barve, former Majority Leader in the Maryland House of Delegates and current Chair of the Maryland Transportation Committee, on various state legislative matters during NASBP’s multi-year campaign to fight the Maryland individual surety law, now sunsetted. Delegate Barve now is seeking to move past state office to election to the U.S. Congress.

An accountant by training, Delegate Barve is the CFO of an environmental contracting firm and consequently has first-hand knowledge of the myriad business issues faced by small contracting firms seeking private contracts and contracts at local, state, and federal levels. He understands the importance of securing and maintaining financial and surety credit. In my experience, he has looked at issues brought to him on the substantive merits, not just on political grounds, allowing us to make our case on important issues that require a thoughtful discussion.

We must do our best to shape the composition of Congress so the House and Senate have leaders conversant on pro-business policies and familiar with surety. SuretyPAC offers us the best means to support worthy candidates for congressional seats, allowing NASBP to be proactive in aiding those who are more likely to hear and to thoughtfully deliberate on legislative issues of importance to suretyship.