NASBP Focal Point – March 21, 2024

Federal Report

Federal/Funding Bill: As we go to press, tomorrow the House is expected pass an appropriations package, under suspension of the rules, to fund the federal government for the remainder of the Fiscal Year (Sept. 30, 2024). The Senate will then follow. Large parts of the federal government will shut down at midnight Friday if the funding bill is not passed. After passage, both Chambers will recess for two weeks. Included in the funding package includes a 24% increase dedicated to border protection (border patrol agents), and additional $1 Billion dedicated funding for child care/Head Start programs as well additional funding for cancer and Alzheimer’s research, and funding for new construction for the FBI headquarters.

SBA Office of Surety Guarantees (OSG): On Wednesday, April 3, from 2:00-3:00pm (EST) the OSG will offer a Town Hall. Attendees will learn about the recent and future enhancements of the Surety Bond Guarantee Program. All surety professionals are welcome to register for the Town Hall.

State Report

Update: LA HB514(Braud): Amends R.S. 48:252(A)/253(A) by increasing the bond threshold from $50,000 to $100,00 for Louisiana DOT contracts. HB514 was referred to the House Committee on Appropriations. HB514 passed the House on March 20.

Update: MS HB1060 (Remak) Amends Section 31-5-51 (MS LMA) by increasing the bond threshold from 25K, to $75K for public works contracts. HB1060 passed the House on March 18.

New: LA SB 265 (Womack) Amends LA R.S. 38:2241(C) and 2247, and R.S. 48:256.3(B) and 256.12 to permit a surety to assert defenses that its bonded principal may assert relative to claims involving subcontractors and suppliers except for a lack of capacity or discharge in bankruptcy of the bonded principal. SB265 was referred to the Senate Committee on Finance.

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.