I 

114TH CONGRESS 

1ST SESSION H. R. 838 

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 

FEBRUARY 10, 2015 

Mr. HANNA (for himself, Ms. MENG, and Mr. CHABOT) introduced the following bill; which was referred to the Committee on the Judiciary, and 

in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

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

other purposes. 

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 2015’’. 

6 SEC. 2. SURETY BOND REQUIREMENTS. 

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

8 Code, is amended— 


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

2 ‘‘§ 9310. Individual sureties 

3 ‘‘If another applicable law or regulation permits the 

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

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

6 assets by the surety, the assets pledged by such surety 

7 shall— 

8 ‘‘(1) consist of eligible obligations described 

9 under section 9303(a); and 

10 ‘‘(2) be submitted to the official of the Govern11 ment required to approve or accept the bond, who 

12 shall deposit the assets with a depository described 

13 under section 9303(b).’’; and 

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

15 adding at the end the following: 

‘‘9310. Individual sureties.’’. 

16 SEC. 3. SBA SURETY BOND GUARANTEE. 

17 Section 411(c)(1) of the Small Business Investment 

18 Act of 1958 (15 U.S.C. 694b(c)(1)) is amended by strik19 ing ‘‘70’’ and inserting ‘‘90’’. 

20 SEC. 4. GAO STUDY. 

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

22 States shall carry out a study on the following: 

23 (1) All instances during the 10-year period 

24 prior to the date of enactment of the Act in which 


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1 a surety bond proposed or issued by a surety in con2 nection with a Federal project was— 

3 (A) rejected by a Federal contracting offi4 cer; or 

5 (B) accepted by a Federal contracting offi6 cer, but was later found to have been backed by 

7 insufficient collateral or to be otherwise defi8 cient or with respect to which the surety did not 

9 perform. 

10 (2) The consequences to the Federal Govern11 ment, subcontractors, and suppliers of the instances 

12 described under paragraph (1). 

13 (3) The percentages of all Federal contracts 

14 that were awarded to new startup businesses (in15 cluding new startup businesses that are small dis16 advantaged businesses or disadvantaged business en17 terprises), small disadvantaged businesses, and dis18 advantaged business enterprises as prime contrac19 tors in the 2-year period prior to and the 2-year pe20 riod following the date of enactment of this Act, and 

21 an assessment of the impact of this Act and the 

22 amendments made by this Act upon such percent23 ages. 

24 (b) REPORT.—Not later than the end of the 3-year 

25 period beginning on the date of the enactment of this Act, 


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1 the Comptroller General shall issue a report to the Com2 mittee on the Judiciary of the House of Representatives 

3 and the Committee on Homeland Security and Govern4 ment Affairs of the Senate containing all findings and de5 terminations made in carrying out the study required 

6 under subsection (a). 

7 (c) DEFINITIONS.—For purposes of this section: 

8 (1) DISADVANTAGED BUSINESS ENTERPRISE.— 

9 The term ‘‘disadvantaged business enterprise’’ has 

10 the meaning given that term under section 26.5 of 

11 title 49, Code of Federal Regulations. 

12 (2) NEW STARTUP BUSINESS.—The term ‘‘new 

13 startup business’’ means a business that was formed 

14 in the 2-year period ending on the date on which the 

15 business bids on a Federal contract that requires 

16 giving a surety bond. 

17 (3) SMALL DISADVANTAGED BUSINESS.—The 

18 term ‘‘small disadvantaged business’’ has the mean19 ing given that term under section 124.1002(b) of 

20 title 13, Code of Federal Regulations. 

Æ 


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