Security in Bonding Act of 2014

To amend title 31, United States Code, to revise requirements related to assets pledged by a surety, and for other purposes. 1. Short title This Act may be cited as the Security in Bonding Act of 2013 2. Surety bond requirements Chapter 93 of subtitle VI of title 31, United States Code, is amended— (1) by adding at the end the following: 9310. Individual sureties If another applicable law or regulation permits the acceptance of a bond from a surety that is not subject to sections 9305 and 9306 and is based on a pledge of assets by the surety, the assets pledged by such surety shall— (1) consist of eligible obligations described under section 9303(a); and (2) be submitted to the official of the Government required to approve or accept the bond, who shall deposit the assets with a depository described under section 9303(b). ; and (2) in the table of contents for such chapter, by adding at the end the following: 9310. Individual sureties. . 3. SBA surety bond guarantee Section 411(c)(1) of the Small Business Investment Act of 1958 ( 15 U.S.C. 694b(c)(1) 70 90 1. Short title This Act may be cited as the Security in Bonding Act of 2014 2. Surety bond requirements Chapter 93 of subtitle VI of title 31, United States Code, is amended— (1) by adding at the end the following: 9310. Individual sureties If another applicable law or regulation permits the acceptance of a bond from a surety that is not subject to sections 9305 and 9306 and is based on a pledge of assets by the surety, the assets pledged by such surety shall— (1) consist of eligible obligations described under section 9303(a); and (2) be submitted to the official of the Government required to approve or accept the bond, who shall deposit the assets with a depository described under section 9303(b). ; and (2) in the table of contents for such chapter, by adding at the end the following: 9310. Individual sureties. . 3. SBA surety bond guarantee Section 411(c)(1) of the Small Business Investment Act of 1958 ( 15 U.S.C. 694b(c)(1) 70 90 4. GAO Study (a) Study The Comptroller General of the United States shall carry out a study on the following: (1) All instances during the 10-year period prior to the date of enactment of the Act in which a surety bond proposed or issued by a surety in connection with a Federal project was— (A) rejected by a Federal contracting officer; or (B) accepted by a Federal contracting officer, but was later found to have been backed by insufficient collateral or to be otherwise deficient or with respect to which the surety did not perform. (2) The consequences to the Federal Government, subcontractors, and suppliers of the instances described under paragraph (1). (3) The percentages of all Federal contracts that were awarded to new startup businesses (including new startup businesses that are small disadvantaged businesses or disadvantaged business enterprises), small disadvantaged businesses, and disadvantaged business enterprises as prime contractors in the 2-year period prior to and the 2-year period following the date of enactment of this Act, and an assessment of the impact of this Act and the amendments made by this Act upon such percentages. (b) Report Not later than the end of the 3-year period beginning on the date of the enactment of this Act, the Comptroller General shall issue a report to the Committee on the Judiciary of the House of Representatives and the Committee on Homeland Security and Government Affairs of the Senate containing all findings and determinations made in carrying out the study required under subsection (a). (c) Definitions For purposes of this section: (1) Disadvantaged business enterprise The term disadvantaged business enterprise section 26.5 (2) New startup business The term new startup business (3) Small disadvantaged business The term small disadvantaged business section 124.1002(b) 1. Short title This Act may be cited as the Security in Bonding Act of 2014 2. SBA surety bond guarantee Section 411(c)(1) of the Small Business Investment Act of 1958 ( 15 U.S.C. 694b(c)(1) 70 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. May 21, 2014 Reported from the Committee on the Judiciary May 21, 2014 Reported from the Committee on Small Business

Summary: Security in Bonding Act of 2014 - Amends the Small Business Investment Act of 1958 with respect to any Small Business Administration (SBA) guarantee or agreement to indemnify a surety under the Small Business Investment Program against loss from a breach of the terms of a bid bond, payment bond, performance bond, or ancillary bonds, by a principal on any total work order or contract amount at the time of bond execution that does not exceed $6.5 million, as adjusted for inflation. Increases from 70% to 90% of the loss incurred and paid by a surety authorized to issue bonds (subject to SBA guarantee) the SBA's maximum obligation to pay the surety under the guarantee or agreement to indemnify.