State Government Affairs Rep

Role of the State Government Affairs Representative

NASBP has an opportunity for bond producer members who would like to volunteer their time to further NASBP’s Government Relations Agenda at the state level. For those NASBP members who want to engage in the advocacy process to protect and promote surety bonding, the volunteer role of the State Government Affairs Representatives (GAR) may be for you. Under the guidance, direction, and assistance of the NASBP national staff and the Government Relations Committee, the GAR will serve as the “eyes and ears” of the association for state and local government relations matters impacting surety.

Potential Issues the State Government Affairs Representative May Encounter

Over the past several years, NASBP staff has catalogued examples of various state legislative activities and has responded to state procurement officials on a number of issues, all which would have impacted the surety industry.

Below are specific examples which the GAR may be called upon to address with assistance from the NASBP national staff to craft a response or to develop a legislative solution.

For example, the GAR may face such issues in their respective state that impose policies that are either beneficial or harmful to the industry such as:

  • Legislation that either waives or increases statutory bonding requirements;
  • Supporting licensing or registration of all sureties in jurisdictions in which they conduct business to protect the interests of public owners and taxpayers and;
  • Advocating for the inclusion of statutory bonding requirements on public-private partnerships (P3) for public works projects.

For example, the GAR may be confronted with issues from local or state agencies and will be asked to coordinate efforts with NASBP staff concerning:

  • Onerous or unrealistic contract requirements, such as long-term warranties or excessive liquidated damages in public works contracts; 
  • Resident agent countersignature requirements where state and local procurement officials continue to require resident agents countersign documents on behalf of non-resident agents even though resident agent countersignature requirements have been eliminated in all the states and have been found to be unconstitutional;
  • Owners requesting subcontractor default insurance as an alternative to traditional subcontractor bonding and;    
  • Requirements that are being considered by governments to enact laws and regulations that mandate green building/sustainability requirements in public and private construction, which may include surety bonding requirements that place inappropriate risks on contractors and sureties.

NASBP State Government Affairs Representative Tool Kit

This document is a collection of resources to educate and assist the GAR and contains the following items:

  • Role of the GAR
  • Potential Issues for the GAR
  • Local surety issue report form
  • An appendix containing 21 NASBP comment letters submitted over the past several years