I 
114TH CONGRESS 
1ST SESSION 
H. R. 838 
To amend title 31, United States Code, to revise requirements related to 
assets pledged by a surety, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2015 
Mr. HANNA (for himself, Ms. MENG, and Mr. CHABOT) introduced the fol-
lowing bill; which was referred to the Committee on the Judiciary, and 
in addition to the Committee on Small Business, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend title 31, United States Code, to revise require-
ments related to assets pledged by a surety, and for 
other purposes. 
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 ‘‘Security in Bonding 
Act of 2015’’. 
SEC. 2. SURETY BOND REQUIREMENTS. 
Chapter 93 of subtitle VI of title 31, United States 
Code, is amended— 
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(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 Govern-
ment 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.’’. 
SEC. 3. SBA SURETY BOND GUARANTEE. 
Section 411(c)(1) of the Small Business Investment 
Act of 1958 (15 U.S.C. 694b(c)(1)) is amended by strik-
ing ‘‘70’’ and inserting ‘‘90’’. 
SEC. 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 
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a surety bond proposed or issued by a surety in con-
nection with a Federal project was— 
(A) rejected by a Federal contracting offi-
cer; or 
(B) accepted by a Federal contracting offi-
cer, but was later found to have been backed by 
insufficient collateral or to be otherwise defi-
cient or with respect to which the surety did not 
perform. 
(2) The consequences to the Federal Govern-
ment, subcontractors, and suppliers of the instances 
described under paragraph (1). 
(3) The percentages of all Federal contracts 
that were awarded to new startup businesses (in-
cluding new startup businesses that are small dis-
advantaged businesses or disadvantaged business en-
terprises), small disadvantaged businesses, and dis-
advantaged business enterprises as prime contrac-
tors in the 2-year period prior to and the 2-year pe-
riod 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 percent-
ages. 
(b) REPORT.—Not later than the end of the 3-year 
period beginning on the date of the enactment of this Act, 
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the Comptroller General shall issue a report to the Com-
mittee on the Judiciary of the House of Representatives 
and the Committee on Homeland Security and Govern-
ment Affairs of the Senate containing all findings and de-
terminations 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’’ has 
the meaning given that term under section 26.5 of 
title 49, Code of Federal Regulations. 
(2) NEW STARTUP BUSINESS.—The term ‘‘new 
startup business’’ means a business that was formed 
in the 2-year period ending on the date on which the 
business bids on a Federal contract that requires 
giving a surety bond. 
(3) SMALL
DISADVANTAGED
BUSINESS.—The 
term ‘‘small disadvantaged business’’ has the mean-
ing given that term under section 124.1002(b) of 
title 13, Code of Federal Regulations. 
Æ 
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