I
105TH CONGRESS
1ST SESSION
H. R. 2554
To prohibit discrimination on the basis of certain factors with respect to
any aspect of a surety bond transaction.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 25, 1997
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
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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—
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(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.
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(c) ADDITIONAL ACTIVITIES NOT CONSTITUTING
DISCRIMINATION.—It is not a violation of this Act for a
surety to refuse to issue a bond pursuant to—
(1) any bonding assistance program authorized
by law for an economically disadvantaged class of
persons;
(2) any bonding assistance program adminis-
tered by a nonprofit organization for its members or
an economically disadvantaged class of persons; or
(3) any special purpose bonding program of-
fered by a profit-making organization to meet special
needs;
if such refusal is required by or made pursuant to such
program.
(d) REASONS FOR ADVERSE ACTION; PROCEDURE
APPLICABLE; DEFINITION.—
(1) NOTICE REQUIRED.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), any surety approved under
section 9304 of title 31, United States Code,
shall notify an applicant of the surety’s action
on a completed application before the end of the
10-day period beginning on the date the appli-
cation is filed with the surety.
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(B) EXTENSION.—The 10-day period re-
ferred to in subparagraph (A) may be extended
an additional 10 days if the surety has not is-
sued 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
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(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-