IB 

Union Calendar No. 342 

113TH CONGRESS 

2D SESSION H. R. 776 

[Report No. 113–462, Parts I and II] 

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 15, 2013 

Mr. HANNA (for himself and Mr. GRAVES of Missouri) 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 

MAY 21, 2014 

Additional sponsors: Ms. MENG, Mr. LUETKEMEYER, Mr. COLLINS of New 

York, Ms. MICHELLE LUJAN GRISHAM of New Mexico, and Mr. GRIFFIN

of Arkansas 

MAY 21, 2014 

Reported from the Committee on the Judiciary with an amendment 

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

MAY 21, 2014 

Reported from the Committee on Small Business with amendments; 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 boldface roman] 


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•HR 776 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 2013’’. 

6 SEC. 2. SURETY BOND REQUIREMENTS. 

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

8 Code, is amended— 

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

10 ‘‘§ 9310. Individual sureties 

11 ‘‘If another applicable law or regulation permits the 

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

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

14 assets by the surety, the assets pledged by such surety 

15 shall— 

16 ‘‘(1) consist of eligible obligations described 

17 under section 9303(a); and 

18 ‘‘(2) be submitted to the official of the Govern19 ment required to approve or accept the bond, who 

20 shall deposit the assets with a depository described 

21 under section 9303(b).’’; and 

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

23 adding at the end the following: 

‘‘9310. Individual sureties.’’. 


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1 SEC. 3. SBA SURETY BOND GUARANTEE. 

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

3 Act of 1958 (15 U.S.C. 694b(c)(1)) is amended by strik4 ing ‘‘70’’ and inserting ‘‘90’’. 

5 SECTION 1. SHORT TITLE. 

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

7 Act of 2014’’. 

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. SBA SURETY BOND GUARANTEE. 

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

3 Act of 1958 (15 U.S.C. 694b(c)(1)) is amended by striking 

4 ‘‘70’’ and inserting ‘‘90’’. 

5 SEC. 4. GAO STUDY. 

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

7 States shall carry out a study on the following: 

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

9 to the date of enactment of the Act in which a surety 

10 bond proposed or issued by a surety in connection 

11 with a Federal project was— 

12 (A) rejected by a Federal contracting officer; 

13 or 

14 (B) accepted by a Federal contracting offi15 cer, but was later found to have been backed by 

16 insufficient collateral or to be otherwise deficient 

17 or with respect to which the surety did not per18 form. 

19 (2) The consequences to the Federal Government, 

20 subcontractors, and suppliers of the instances de21 scribed under paragraph (1). 

22 (3) The percentages of all Federal contracts that 

23 were awarded to new startup businesses (including 

24 new startup businesses that are small disadvantaged 

25 businesses or disadvantaged business enterprises), 

26 small disadvantaged businesses, and disadvantaged 


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1 business enterprises as prime contractors in the 2- 

2 year period prior to and the 2-year period following 

3 the date of enactment of this Act, and an assessment 

4 of the impact of this Act and the amendments made 

5 by this Act upon such percentages. 

6 (b) REPORT.—Not later than the end of the 3-year pe7 riod beginning on the date of the enactment of this Act, 

8 the Comptroller General shall issue a report to the Com9 mittee on the Judiciary of the House of Representatives and 

10 the Committee on Homeland Security and Government Af11 fairs of the Senate containing all findings and determina12 tions made in carrying out the study required under sub13 section (a). 

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

15 (1) DISADVANTAGED BUSINESS ENTERPRISE.— 

16 The term ‘‘disadvantaged business enterprise’’ has the 

17 meaning given that term under section 26.5 of title 

18 49, Code of Federal Regulations. 

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

20 startup business’’ means a business that was formed 

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

22 business bids on a Federal contract that requires giv23 ing a surety bond. 

24 (3) SMALL DISADVANTAGED BUSINESS.—The 

25 term ‘‘small disadvantaged business’’ has the meaning 


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1 given that term under section 124.1002(b) of title 13, 

2 Code of Federal Regulations. 

3 SECTION 1. SHORT TITLE. 

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

5 Bonding Act of 2014’’. 

6 SEC. 2. SBA SURETY BOND GUARANTEE. 

7 Section 411(c)(1) of the Small Business In8 vestment Act of 1958 (15 U.S.C. 694b(c)(1)) is 

9 amended by striking ‘‘70’’ and inserting ‘‘90’’. 

Amend the title so as to read: ‘‘A bill to amend the 

Small Business Investment Act of 1958 to increase the 

amount of a surety bond guarantee.’’. 


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Union Calendar No. 342 

113TH CONGRESS 

2D SESSION H. R. 776 

[Report No. 113–462, Parts I and II] 

A BILL 

To amend title 31, United States Code, to revise 

ety, and for other purposes. requirements related to assets pledged by a surMAY 21, 2014 

Reported from the Committee on the Judiciary with an 

amendment 

MAY 21, 2014 

Reported from the Committee on Small Business with 

to be printed Whole House on the State of the Union and ordered amendments; committed to the Committee of the 


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