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Union Calendar No. 322 

112TH CONGRESS 

2D SESSION H. R. 3534 

[Report No. 112–460] 

To amend title 31, United States Code, to revise requirements related to 

assets pledged by a surety, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 1, 2011 

Mr. HANNA (for himself and Mr. MULVANEY) introduced the following bill; 

which was referred to the Committee on the Judiciary 

APRIL 27, 2012 

Additional sponsors: Mr. GOWDY and Mr. POLIS

APRIL 27, 2012 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

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•HR 3534 RH

A BILL 

To amend title 31, United States Code, to revise requirements related to assets pledged by a surety, and for 

other purposes. 

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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Security in Bonding 

5 Act of 2011’’. 

6 SEC. 2. SURETY BOND REQUIREMENTS. 

7 Chapter 93 of subtitle VI of title 31, United States 

8 Code, is amended— 

9 (1) in section 9304(b)— 

10 (A) by striking ‘‘may not require’’ and in11 serting ‘‘may require’’; and 

12 (B) by striking ‘‘or through’’ and inserting 

13 ‘‘, but not through’’; 

14 (2) by adding at the end the following: 

15 ‘‘§ 9310. Individual sureties 

16 ‘‘If another applicable law or regulation permits the 

17 acceptance of a bond from a surety that is not subject 

18 to sections 9305 and 9306 and is based on a pledge of 

19 assets by the surety, the assets pledged by such surety 

20 shall— 

21 ‘‘(1) consist of eligible obligations described 

22 under section 9303(a); and 

23 ‘‘(2) be submitted to the official of the Govern24 ment required to approve or accept the bond, who 

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1 shall deposit the assets with a depository described 

2 under section 9303(b).’’; and 

3 (3) in the table of contents for such chapter, by 

4 adding at the end the following: 

‘‘9310. Individual sureties.’’. 

5 SECTION 1. SHORT TITLE. 

6 This Act may be cited as the ‘‘Security in Bonding 

7 Act of 2012’’. 

8 SEC. 2. SURETY BOND REQUIREMENTS. 

9 Chapter 93 of subtitle VI of title 31, United States 

10 Code, is amended— 

11 (1) by adding at the end the following: 

12 ‘‘§ 9310. Individual sureties 

13 ‘‘If another applicable law or regulation permits the 

14 acceptance of a bond from a surety that is not subject to 

15 sections 9305 and 9306 and is based on a pledge of assets 

16 by the surety, the assets pledged by such surety shall— 

17 ‘‘(1) consist of eligible obligations described 

18 under section 9303(a); and 

19 ‘‘(2) be submitted to the official of the Govern20 ment required to approve or accept the bond, who 

21 shall deposit the assets with a depository described 

22 under section 9303(b).’’; and 

23 (2) in the table of contents for such chapter, by 

24 adding at the end the following: 

‘‘9310. Individual sureties.’’. 

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1 SEC. 3. GAO STUDY. 

2 (a) STUDY.—The Comptroller General of the United 

3 States shall carry out a study on the following: 

4 (1) All instances during the 10-year period prior 

5 to the date of the enactment of this Act in which a 

6 surety bond proposed or issued by a surety in connec7 tion with a Federal project was— 

8 (A) rejected by a Federal contracting officer; 

9 or 

10 (B) accepted by a Federal contracting offi11 cer, but was later found to have been backed by 

12 insufficient collateral or to be otherwise deficient 

13 or with respect to which the surety did not per14 form. 

15 (2) The consequences to the Federal Government, 

16 subcontractors, and suppliers of the instances de17 scribed under paragraph (1). 

18 (3) The percentages of all Federal contracts that 

19 were awarded to small disadvantaged businesses (as 

20 defined under section 124.1002(b) of title 13, Code of 

21 Federal Regulations) and disadvantaged business en22 terprises (as defined under section 26.5 of title 49, 

23 Code of Federal Regulations) as prime contractors in 

24 the 2-year period prior to and the 2-year period fol25 lowing the date of enactment of this Act, and an asmstockstill on DSK4VPTVN1PROD with BILLS

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1 sessment of the impact of this Act and the amend2 ments made by this Act upon such percentages. 

3 (b) REPORT.—Not later than the end of the 3-year pe4 riod beginning on the date of the enactment of this Act, 

5 the Comptroller General shall issue a report to the Com6 mittee on the Judiciary of the House of Representatives and 

7 the Committee on Homeland Security and Government Af8 fairs of the Senate containing all findings and determina9 tions made in carrying out the study required under sub10 section (a). 

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Union Calendar No. 322 

112TH CONGRESS 

2D SESSION H. R. 3534 

[Report No. 112–460] 

A BILL 

To amend title 31, United States Code, to revise 

ety, and for other purposes. requirements related to assets pledged by a surAPRIL 27, 2012 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 

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