IB 
Union Calendar No. 342 
113TH CONGRESS 
2D SESSION 
H. R. 776 
[Report No. 113–462, Parts I and II] 
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 15, 2013 
Mr. HANNA (for himself and Mr. GRAVES of Missouri) 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 
MAY 21, 2014 
Additional sponsors: Ms. MENG, Mr. LUETKEMEYER, Mr. COLLINS of New 
York, Ms. MICHELLE LUJAN GRISHAM of New Mexico, and Mr. GRIFFIN 
of Arkansas 
MAY 21, 2014 
Reported from the Committee on the Judiciary with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
MAY 21, 2014 
Reported from the Committee on Small Business with amendments; com-
mitted to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in boldface roman] 
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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 2013’’. 
SEC. 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 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.’’. 
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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’’. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Security in Bonding 
Act of 2014’’. 
SEC. 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 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.’’. 
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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 striking 
‘‘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 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 offi-
cer, 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 per-
form. 
(2) The consequences to the Federal Government, 
subcontractors, and suppliers of the instances de-
scribed 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 
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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 pe-
riod beginning on the date of the enactment of this Act, 
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 Government Af-
fairs of the Senate containing all findings and determina-
tions made in carrying out the study required under sub-
section (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 giv-
ing a surety bond. 
(3) SMALL
DISADVANTAGED
BUSINESS.—The 
term ‘‘small disadvantaged business’’ has the meaning 
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given that term under section 124.1002(b) of title 13, 
Code of Federal Regulations. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Security in 
Bonding Act of 2014’’. 
SEC. 2. SBA SURETY BOND GUARANTEE. 
Section 411(c)(1) of the Small Business In-
vestment Act of 1958 (15 U.S.C. 694b(c)(1)) is 
amended by striking ‘‘70’’ and inserting ‘‘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.’’. 
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