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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
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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
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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;
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(B) by striking ‘‘and’’ at the end of para-
graph (2);
(C) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(D) by adding at the end the following new
paragraph:
‘‘(4) may, after the end of the 1-year period be-
ginning on the effective date of any revocation under
paragraph (1) of the authority of a surety corpora-
tion for noncompliance with the Equal Surety Bond
Opportunity Act, reauthorize such corporation to
provide surety bonds under section 9304.’’.
(5) REVOCATION FOR FAILURE TO PAY CER-
TAIN
JUDGMENTS.—Section 9305(e) of title 31,
United States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (1);
(B) by redesignating paragraph (2) as
paragraph (3); and
(C) by inserting after paragraph (1) the
following new paragraph:
‘‘(2) the corporation does not pay a final judg-
ment or order against the corporation for noncompli-
ance with the Equal Surety Bond Opportunity Act
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or fails to comply with any order under section 3(c)
of such Act; and’’.
(c) TECHNICAL AND CONFORMING AMENDMENT.—
Section 9304(a)(3) of title 31, United States Code, is
amended by inserting ‘‘and section 4(a) of the Equal Sur-
ety Bond Opportunity Act’’ before the period.
(d) REGULATIONS.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall prescribe such regulations as may be nec-
essary to carry out the purposes of this Act.
(2) INITIAL REGULATIONS.—The initial regula-
tions prescribed pursuant to paragraph (1) shall
take effect at the earliest practicable date after the
date of the enactment of this Act and not later than
the end of the 1-year period beginning on such date
of enactment.
SEC. 5. EFFECTIVE DATE.
Sections 2(d) and 4(a) shall take effect on the earlier
of—
(1) the effective date of the initial regulations
prescribed pursuant to section 4(d); or
(2) the end of the 1-year period beginning on
the date of the enactment of this Act.
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