NASBP Focal Point – September 18, 2024

Federal Report

Budget Showdown: With less than two weeks before a federal government shutdown, last week Speaker Mike Johnson (R-LA) was forced to abandon a six-month continuing resolution to keep the government open. However, on Tuesday, the Speaker decided to move forward with that same package. Meanwhile, on the other side of the U.S. Capitol, senators are already talking about a Plan B should the House not pass something by the end of the this week. The growing consensus amongst lawmakers is to pass a short-term bill which funds the federal government into December.

Take Action Letter: NASBP signed on as a supporter to letter asking Congress to prioritize funding to the Department of Transportation’s Emergency Relief Program (ERP) to replace the Francis Scott Key Bridge and other critical national assets impacted by unforeseen disasters. The letter was spearheaded by the U.S. Chamber of Commerce and includes nearly 50 signatories representing national trade organizations such as the Associated General Contractors of America (AGC), the American Road & Transportation Builders Association (ARTBA), and the American Society of Civil Engineers (ASCE).

Portrait Unveiling: NASBP was honored to attend the portrait unveiling of Ranking and past House Small Business Committee Chair, Nydia Velázquez (D-NY). Congresswoman Velázquez is the first Latina woman to Chair a full House-standing Committee and was formally recognized by the Senate and House Leadership for all of her hard work on behalf of small U.S. businesses especially during the pandemic, and to the citizens of Puerto Rico by Majority Leader Chuck Schumer (D-NY), Emeritus Nancy Pelosi (D-CA), House Minority Leader, Hakeem Jeffries (D-NY), as well as her personal friend, Supreme Court Justice Sonia Sotomayor. NASBP is grateful to the Congresswoman for her leadership on small business policy matters which had a direct impact on the surety industry. See photos from the unveiling from Congressman Adriano Espaillat (D-NY-13), Congresswoman Sylvia Garcia (D-TX-29), who also posted additional photos here, and Senator Chuck Schumer (D-NY).

State Activity

Update: 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 recently passed the Senate 34-3. The bill was enrolled and delivered to the governor on Sept. 11. 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.