I 
108TH CONGRESS 
2D SESSION 
H. R. 4455 
To prohibit discrimination on the basis of certain factors with respect to 
any aspect of a surety bond transaction. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 20, 2004 
Ms. NORTON introduced the following bill; which was referred to the 
Committee on the Judiciary 
A BILL 
To prohibit discrimination on the basis of certain factors 
with respect to any aspect of a surety bond transaction. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Equal Surety Bond 
Opportunity Act’’. 
SEC. 2. EQUAL SURETY BOND OPPORTUNITY REQUIRE-
MENTS. 
(a) ACTIVITIES CONSTITUTING DISCRIMINATION.—It 
shall be unlawful for any surety to discriminate against
any applicant, with respect to any aspect of a surety bond 
transaction— 
(1) on the basis of race, color, religion, national 
origin, sex, marital status, sexual orientation, dis-
ability, or age (if the applicant has the capacity to 
contract); 
(2) because the applicant has in good faith ex-
ercised any right under this Act; 
(3) because the applicant previously obtained a 
bond through an individual or personal surety; or 
(4) because the applicant previously obtained a 
bond through— 
(A) any bonding assistance program ex-
pressly authorized by law; 
(B) any bonding assistance program ad-
ministered by a nonprofit organization for its 
members or an economically disadvantaged 
class of persons; or 
(C) any special purpose bonding program 
offered by a profit-making organization to meet 
special needs. 
(b) ACTIVITIES
NOT CONSTITUTING DISCRIMINA-
TION.—It shall not constitute discrimination for purposes 
of this Act for a surety—
(1) to make an inquiry of marital status if such 
inquiry is for the purpose of ascertaining the sure-
ty’s rights and remedies applicable to the granting 
of a bond and not to discriminate in a determination 
of bondability; 
(2) to make an inquiry of the applicant’s age if 
such inquiry is for the purpose of determining the 
amount and probable continuance of bondability; or 
(3) to make an inquiry as to where the appli-
cant has previously obtained a bond, in order to de-
termine bonding history, or other pertinent element 
of bondability, except that an applicant may not be 
assigned a negative factor or value because the ap-
plicant previously obtained a bond through— 
(A) an individual or personal surety; 
(B) a bonding assistance program ex-
pressly authorized by law; 
(C) any bonding program administered by 
a nonprofit organization for its members or an 
economically disadvantaged class of persons; or 
(D) any special purpose bonding program 
offered by a profit-making organization to meet 
special needs.
(B) EXTENSION.—The 10-day period re-
ferred to in subparagraph (A) may be extended 
an additional 10 days if the surety has not 
issued a bond to the applicant during the 1- 
year period ending on the date the application 
is filed with the surety. 
(2) STATEMENT OF REASONS.— 
(A) IN GENERAL.—Each applicant against 
whom adverse action is taken shall be entitled 
to a statement of reasons for such action from 
the surety. 
(B) 
ACCEPTABLE
FORMS
OF
STATE-
MENT.—A surety satisfies the requirement es-
tablished under subparagraph (A) by— 
(i) providing a statement of reasons in 
writing as a matter of course to applicants 
against whom adverse action is taken; or 
(ii) giving written notification of ad-
verse action which discloses— 
(I) the applicant’s right to a 
statement of reasons within 30 days 
after receipt by the surety of a re-
quest made within 60 days after such 
notification; and
(II) the identity of the person or 
office from which such statement may 
be obtained. 
(C) ORAL STATEMENT PERMITTED.—Such 
statement may be given orally if the written no-
tification advises the applicant of the appli-
cant’s right to have the statement of reasons 
confirmed in writing on written request. 
(3) SPECIFICITY OF REASONS.—A statement of 
reasons meets the requirements of this Act only if 
it contains specific reasons for the adverse action 
taken. 
(4) APPLICABILITY IN CASE OF 3D PARTY AP-
PLICATIONS.—In the case of a request to a surety 
by a third party to issue a bond directly or indirectly 
to an applicant, the notification and statement of 
reasons required by this section may be made di-
rectly by such surety, or indirectly through the third 
party, if the identity of the surety is disclosed to the 
applicant. 
(5) APPLICABILITY
IN
CASE
OF
SURETIES 
WHICH ACCEPT FEW APPLICATIONS.—The require-
ments of paragraph (2), (3), or (4) may be satisfied 
by oral statements or notifications in the case of any 
surety who did not act on more than 100 applica-
tions during the calendar year in which the adverse 
action is taken. 
(e) ADVERSE ACTION DEFINED.—For purposes of 
this Act, the term ‘‘adverse action’’— 
(1) means a denial of a bond, a change in the 
terms of an existing bonding arrangement, or a re-
fusal to issue a bond in the amount or on substan-
tially the terms requested; and 
(2) does not include any refusal to issue an ad-
ditional bond under an existing bonding arrange-
ment where the applicant is in default, or where 
such additional bond would exceed a previously es-
tablished bonding limit. 
SEC. 3. CIVIL LIABILITY. 
(a) DAMAGES.—Any surety who fails to comply with 
section 2(a) shall be liable to the aggrieved applicant for— 
(1) any actual damage sustained by such appli-
cant (individually or as a member of a class); and 
(2) in the case of any successful action under 
this section, the costs of the action, together with 
reasonable attorney’s fees as determined by the 
court. 
(b) EQUITABLE RELIEF.—Upon application by an 
aggrieved applicant, a court of competent jurisdiction may 
enjoin a surety from violating the requirements of this Act
or grant such other equitable relief as the court deter-
mines to be appropriate to enforce such requirements. 
(c) JURISDICTION.—Any action under this section 
may be brought in any United States district court, or 
in any other court of competent jurisdiction, within 1 year 
after the date of the occurrence of the violation involved. 
SEC. 4. ADMINISTRATIVE ENFORCEMENT. 
(a) IN GENERAL.—A company may not be approved 
as a surety by the Secretary of the Treasury under section 
9304 of title 31, United States Code, or provide any surety 
bond pursuant to such section unless such company main-
tains full compliance with the requirements of this Act. 
(b) REQUIREMENTS RELATING TO ENFORCEABILITY 
OF ACT.— 
(1) SIGNED STATEMENT OF COMPLIANCE WITH 
APPLICATION.—Section 9305(a) of title 31, United 
States Code, is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (1); 
(B) by striking the period at the end of 
paragraph (2) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) a statement of compliance with the Equal 
Surety Bond Opportunity Act which is signed under
penalty of perjury by the president and the secretary 
of the corporation.’’. 
(2) COMPLIANCE
AS
A
CONDITION
FOR
AP-
PROVAL OF APPLICATION.—Section 9305(b) of title 
31, United States Code, is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (2); 
(B) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(4) the corporation is in full compliance with 
the Equal Surety Bond Opportunity Act.’’. 
(3) SIGNED STATEMENT OF COMPLIANCE WITH 
QUARTERLY REPORTS.—Section 9305(c) of title 31, 
United States Code, is amended by inserting ‘‘and a 
statement of compliance with the Equal Surety 
Bond Opportunity Act’’ before the period. 
(4) ENFORCEMENT AUTHORITY OF SECRETARY 
OF THE TREASURY.—Section 9305(d) of title 31, 
United States Code, is amended— 
(A) in paragraph (1), by inserting ‘‘or the 
provisions of the Equal Surety Bond Oppor-
tunity Act’’ before the semicolon;