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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3785 Introduced in Senate (IS)]

109th CONGRESS
  2d Session
                                S. 3785

 To amend the Small Business Investment Act of 1958 to improve surety 
                bond guarantees, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 3, 2006

   Ms. Snowe introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL

 
 To amend the Small Business Investment Act of 1958 to improve surety 
                bond guarantees, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Surety Bond Improvement Act of 
2006''.

SEC. 2. SURETY BONDS.

    (a) Rates.--Section 411(a) of the Small Business Investment Act of 
1958 (15 U.S.C. 694b(a)) is amended--
            (1) in paragraph (1), by striking ``$2,000,000'' and 
        inserting ``$3,000,000''; and
            (2) by adding at the end the following:
    ``(6) The Administrator may authorize a surety that issues, 
monitors, or services bonds under paragraph (3) to use rates approved 
by the insurance commissioner in the State in which such contract will 
be performed.''.
    (b) Payment of Guarantees.--Section 411(b) of the Small Business 
Investment Act of 1958 (15 U.S.C. 694b(b)) is amended--
            (1) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively, and adjusting the 
        margins accordingly;
            (2) by striking ``Subject to the provisions'' and inserting 
        the following:
            ``(1) In general.--Subject to the provisions'';
            (3) by striking ``: Provided, however'' and inserting ``.
            ``(2) Conditions.--For a guarantee under this subsection--
        '';
            (4) by striking ``In no event shall'' and inserting the 
        following:
            ``(3) Maximum amount.--In no event shall''; and
            (5) by adding at the end the following:
            ``(4) Payment of guarantees.--The Administrator may not 
        refuse to make payment on a guarantee under this subsection 
        based on facts, circumstances, or defects that the 
        Administrator reasonably should have identified during the 
        process of making the guarantee.''.
    (c) Reports to Congress.--
            (1) In general.--On the date on which the Administrator of 
        the Small Business Administration provides notice of a proposed 
        change in fees under section 411(h) of the Small Business 
        Investment Act of 1958 (15 U.S.C. 694b(h)), the Administrator 
        shall submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives, and make publically 
        available, a report regarding the basis for the change in fees.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include--
                    (A) the contents of any study used by the 
                Administrator in determining whether to change fees 
                under section 411(h) of the Small Business Investment 
                Act of 1958; and
                    (B) the total amount of fees received under such 
                section 411(h) and the total cost of the program under 
                part B of title IV of the Small Business Investment Act 
                of 1958 (15 U.S.C. 694a et seq.)--
                            (i) for the first report submitted under 
                        paragraph (1), during the 3-year period ending 
                        on the date of the submission of the report; 
                        and
                            (ii) for each subsequent report, during the 
                        period beginning on the date of the submission 
                        of the prior report submitted under paragraph 
                        (1) and ending on the date of submission of 
                        such subsequent report.
    (d) Sense of Congress.--It is the sense of Congress that the 
program under part B of title IV of the Small Business Investment Act 
of 1958 (15 U.S.C. 694a et seq.) is not required to be self-funding 
and, therefore, the program may at times operate at a loss.
                                 <all>
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