I
103D CONGRESS
1ST SESSION
H. R. 1464
To prohibit discrimination on the basis of certain factors with respect to
any aspect of a surety bond transaction.
IN THE HOUSE OF REPRESENTATIVES
MARCH 24, 1993
Ms. NORTON (for herself, Mrs. MINK, and Ms. PELOSI) 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.
(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.
(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
(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