The NASBP Legislative Fly-in began at the break of dawn. However, attendees were not sorry they had to rise a little early to gain political insights from Congressional representatives and staff. The stage was set with welcoming remarks from NASBP President John Rindt (pictured right), followed by NASBP Government Relations Chair, Susan Hecker (pictured below with Representative Mulvaney) who reflected on her personal involvement with the event.

At precisely 7:15 a.m., just as attendees were starting on their second cup of coffee, Representative Mick Mulvaney (R-SC) took to the podium to stress the importance of the repeal of the 3% tax withholding that requires federal, state and local governments with $100 million in revenue to withhold 3% from all payments to contractors for goods or services purchased. Fresh off a hearing, on May 26 in the House Small Business Subcommittee on Contracting and Workforce, Representative Mulvaney, who chairs this subcommittee, provided an overview of the hearing and expressed optimism that that law, which goes into effect in 2013, would be repealed. As the Chairman explained, the 3% withholding would greatly impact business, especially small business, by restricting cash flow it needs to keep its business viable. The 3% withholding would also place a huge burden on states and localities to administer.

Next, Representative Richard Hanna (R-NY) (pictured right at podium), a freshman member of Congress representing New York’s 24th District, described how his previous occupation as a developer gave him the necessary strength to endure a successful Congressional campaign. The Congressman spent a significant amount of time discussing the problems associated with the nation’s economy and the importance of working in a bipartisan fashion in order to solve these problems. Finally, Representative Hanna offered his support to NASBP should it need assistance with issues important to surety interests.

Additional speakers included Peter Gibbs (pictured to the left) from the Small Business Administration’s (SBA) Surety Bond Guarantee Program, Brandon Neal (pictured below to the right) from the Department of Transportation’s (DOT) Office of Small and Disadvantaged Business Utilization, as well as Krystal Brumfield (pictured below at the podium) from the Senate Small Business Committee and and Caren Street (pictured below shaking hands with Larry LeClair) from Senate Majority Leader Harry Reid’s office. John McNerney, General Counsel of the Mechanical Contractors Association of America (MCAA), provided an update on the Coalition that is diligently working to influence FASB’s proposal on multi-employer pension plans. NASBP is a member of that Coalition along with other construction industry groups.

Peter Gibbs, from the SBA Office of Surety Guarantees, described recent enhancements to the Program in order to streamline the application process to make it more attractive to contractors and sureties, while Brandon Neal from the DOT’s Office of Small and Disadvantaged Business Utilization, thanked producers for their involvement with the DOT’s Bonding Education Program.

After the conclusion of the morning briefing policy program, NASBP Fly-in attendees headed off to Capitol Hill to meet with their members of Congress to discuss important issues of the Association. Armed with a one-page list of NASBP’s federal legislative priorities (which they could leave behind after their visit with the member), Fly-in attendees discussed and advocated for points such as the importance of the surety bond product and the protection it offers to downstream parties and the taxpayer, an exemption to prevent the Federal Miller Act from periodic threshold increases every 5 years, the repeal of the 3% withholding requirement, which Representative Mulvaney discussed during his comments, and reforms to the SBA Surety Bond Guarantee Program.

The day culminated with a reception on Capitol Hill, where attendees discussed their day on Capitol Hill. Judging by conversations, Fly-in attendees were very excited about their involvement in advocating issues supported by the association and educating members of Congress and their staff about the importance of the product and the protection it offers. In fact, NASBP member Colleen Clarke was visited at the reception by her legislator, Illinois Representative Don Manzullo, and his scheduler Loren Hoekstra (both are pictured left below talking with Colleen Clarke) at the reception since they were unable to meet during the day. If you were unable to make this year’s event, please plan to attend the next NASBP Fly-in. It is a unique opportunity and of critical importance to show your passion for the industry. Read about a NASBP member’s personal experience at the Fly-in and Workshop in the article below.

A NASBP Member’s Vantage Point: NASBP Events Offer Opportunity to Gain a Competitive Edge

As industry professionals, each day we are faced with many tough choices. How should I spend my time and money? How can I add value to my customers as well as invest in my employees? How can I differentiate myself from the competition? The choices we make and the consequences of those decisions define us as professionals, as leaders, as employers of choice and as the business partners our customers seek. Occasionally opportunities come along that allow us to accomplish several goals at one time. When they do, we need to reach out and grab them. NASBP’s activities last week were such an opportunity.

On June 21 and 22 twenty-five students (many of whom stayed for the NASBP Fly-in) attended the NASBP Federal Government Construction Workshop very ably compiled by NASBP’s outside counsel, Martha Perkins, Esq. of the Washington, DC office of Whiteford, Taylor & Preston, LLP (WTP). Heather James Esq., also with WTP was the main presenter along with Perkins and Gehrig Cosgray of the CPA firm of Clifton Gunderson. A wide range of experience was represented by class participants, including several affiliate members and two large business contractors. The sessions were interactive. Workshop attendees less experienced in federal contracting benefited from the questions other seasoned professionals asked using real situations to provide context.

Earlier this year after the Small Business Administration (SBA) 8(a) rules for mentor/protégés changed, I realized our customers and prospects would need guidance, and I made it a mission to improve my understanding. Three months into this personal journey, I am convinced that the SBA’s determination to eliminate fraud, waste and abuse, could result in the SBA making an example of someone. None of us want our customer to be that example that “makes  law.”

On Thursday, June 23, NASBP had our third consecutive Legislative Fly-In since 2008 and the results were amazing. This year we had a mix of NASBP Fly-in regulars and new attendees. We were traveling to the Hill in groups, teaming up first-time attendees with seasoned veterans and making an impact. Thanks to our terrific NASBP Government Relations staff in Washington, D.C. we had two Congressmen, Hill staff members, and a line-up of federal agency representatives brief us on what is going on in Washington, D.C.

NASBP is gaining traction and has increased its number of friends on the Hill. Our Members of Congress are being educated about the importance of bonds and not only are our voices being heard, our assistance is being sought. We are discussing the need for bi-partisan support for an upcoming infrastructure bill, repeal of the 3% tax withholding law, and we have multiple offers of assistance to sponsor legislation to have Title 41 amended so the Miller Act can be excluded from automatic threshold increases. Would your revenue be impacted if in a couple of years all federal bonds under $500,000 were waived? How about if acceptance of individual surety bonds became more prevalent?

In summary, our product is being attacked on many fronts. If you are asking yourself these same questions, come and see for yourself and bring a member of your staff with you. Nothing we are doing as an industry is more important. For those of you who say, “Why should I go to Washington, D.C. and meet with members of Congress when you guys are doing it for me,” my response is that you are being shortsighted. No one is more impactful to an elected official than a constituent. We were legislated into business with the Federal Miller Act, and we could just as easily be legislated out if we do not pay attention. The steps we are taking now will serve to protect our industry for generations to come, but only if we work together. We are making new friends, learning things that will keep our customers and prospects out of trouble, providing opportunity and investment for our people, building the next generation of industry leaders and making our money spent matter. Join us next year. Your participation makes a difference. We work in a fabulous industry.

The author of this article is Susan Hecker, CPCU, Area Executive Vice President, Gallagher Construction Services, San Francisco, CA. She is an Ex Officio serving on the NASBP Executive Committee and the Chair of the NASBP Government Relations Committee. She can be reached at susan_hecker@ajg.com.