Security in Bonding Act of 2014

Bill: 113-hr-776
Sponsor: Rep. Hanna, Richard L. [R-NY-22]
Introduced: 2013-02-15 in the House
Policy area: Finance and Financial Sector
Subjects: Congressional oversight
Contracts and agency
Financial services and investments
Government liability
Government studies and investigations
Minority and disadvantaged businesses
Public contracts and procurement
Small business

Summary:
action_date: 2013-02-15
text: 
Security in Bonding Act of 2013 - Revises requirements related to assets pledged by a surety. 
 
Declares that if another applicable law or regulation permits the acceptance of a bond from a surety that is not subject to specified federal law, and is based on a pledge of assets by the surety, the assets pledged by such surety shall: (1) consist of eligible obligations given as security instead of surety bonds; and (2) be submitted to the government official required to approve or accept the bond, who shall deposit the assets with a depository (the Secretary of the Treasury, a federal reserve bank, or a depository designated by the Secretary).
 
Amends the Small Business Investment Act of 1958 with respect to any Small Business Administration (SBA) guarantee or agreement to indemnify a surety under the Small Business Investment Program against loss from a breach of the terms of a bid bond, payment bond, performance bond, or ancillary bonds, by a principal on any total work order or contract amount at the time of bond execution that does not exceed $6.5 million, as adjusted for inflation.
 
Increases from 70% to 90% of the loss incurred and paid by a surety authorized to issue bonds (subject to SBA guarantee) the SBA's maximum obligation to pay the surety under the guarantee or agreement to indemnify.

action_date: 2014-05-21
text: 
Security in Bonding Act of 2014 - Revises requirements related to assets pledged by a surety.
 
Declares that if another applicable law or regulation permits the acceptance of a bond from a surety that is not subject to specified federal law, and is based on a pledge of assets by the surety, the assets pledged by such surety shall: (1) consist of eligible obligations given as security instead of surety bonds; and (2) be submitted to the government official required to approve or accept the bond, who shall deposit the assets with a depository (the Secretary of the Treasury, a federal reserve bank, or a depository designated by the Secretary).
 
Amends the Small Business Investment Act of 1958 (the Act) with respect to any Small Business Administration (SBA) guarantee or agreement to indemnify a surety under the Small Business Investment Program against loss from a breach of the terms of a bid bond, payment bond, performance bond, or ancillary bonds, by a principal on any total work order or contract amount at the time of bond execution that does not exceed $6.5 million, as adjusted for inflation.
 
Increases from 70% to 90% of the loss incurred and paid by a surety authorized to issue bonds (subject to SBA guarantee) the SBA's maximum obligation to pay the surety under the guarantee or agreement to indemnify.
 
Requires the Comptroller General (GAO) to study:
 
 
all instances during the 10-year period before enactment of the Act in which a surety bond proposed or issued by a surety in connection with a federal project was: (1) rejected by a federal contracting officer; or (2) accepted by one, 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 perform;
 
the consequences to the federal government, subcontractors, and suppliers of the instances; and
 
the percentages of all federal contracts that were awarded to new startup businesses (including new startups that are small disadvantaged businesses or disadvantaged business enterprises), small disadvantaged businesses, and disadvantaged business enterprises as prime contractors in the two-year period before and the two-year period after enactment of this Act, together with an assessment of the impact of this Act and its amendments upon such percentages. 
 

action_date: 2014-05-21
text: 
Security in Bonding Act of 2014 - Amends the Small Business Investment Act of 1958 with respect to any Small Business Administration (SBA) guarantee or agreement to indemnify a surety under the Small Business Investment Program against loss from a breach of the terms of a bid bond, payment bond, performance bond, or ancillary bonds, by a principal on any total work order or contract amount at the time of bond execution that does not exceed $6.5 million, as adjusted for inflation.
 
Increases from 70% to 90% of the loss incurred and paid by a surety authorized to issue bonds (subject to SBA guarantee) the SBA's maximum obligation to pay the surety under the guarantee or agreement to indemnify.


Legislative actions:
action_date: 2014-05-21
text: Placed on the Union Calendar, Calendar No. 342.
action_date: 2014-05-21
text: Reported (Amended) by the Committee on Small Business. H. Rept. 113-462, Part II.
action_date: 2014-05-21
text: Reported (Amended) by the Committee on Small Business. H. Rept. 113-462, Part II.
action_date: 2014-05-21
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 113-462, Part I.
action_date: 2014-05-21
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 113-462, Part I.
action_date: 2014-04-30
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2014-04-30
text: Committee Consideration and Mark-up Session Held.
action_date: 2014-04-29
text: Subcommittee on Regulatory Reform, Commercial And Antitrust Law Discharged.
action_date: 2014-03-05
text: Further action deferred.
action_date: 2014-03-05
text: Committee Consideration and Mark-up Session Held.
action_date: 2013-04-08
text: Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.
action_date: 2013-02-15
text: Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2013-02-15
text: Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2013-02-15
text: Introduced in House
action_date: 2013-02-15
text: Introduced in House