Security in Bonding Act of 2014

Bill: 113-hr-776
Sponsor: full_name: Rep. Hanna, Richard L. [R-NY-22]
Introduced: 2013-02-15
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
Latest action: action_date: 2014-05-21
text: Placed on the Union Calendar, Calendar No. 342.

Summaries:
action_date: 2013-02-15
action_desc: Introduced in House
text: <p>Security in Bonding Act of 2013 - Revises requirements related to assets pledged by a surety. </p> <p>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).</p> <p>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.</p> <p>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.</p>

action_date: 2014-05-21
action_desc: Reported to House amended, Part I
text: <p>Security in Bonding Act of 2014 - Revises requirements related to assets pledged by a surety.</p> <p>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).</p> <p>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.</p> <p>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.</p> <p>Requires the Comptroller General (GAO) to study:</p> <ul> <li>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;</li> <li>the consequences to the federal government, subcontractors, and suppliers of the instances; and</li> <li>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. </li> </ul>

action_date: 2014-05-21
action_desc: Reported to House amended, Part II
text: <p>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.</p> <p>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.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 776 IN THE HOUSE OF REPRESENTATIVES February 15, 2013 Mr. Hanna (for himself and Mr. Graves of Missouri ) introduced the following bill; which was 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 A BILL To amend title 31, United States Code, to revise requirements related to assets pledged by a surety, and for other purposes.

1. Short title This Act may be cited as the Security in Bonding Act of 2013 . 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 Government 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. . 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 .

tv_txt: IB Union Calendar No. 342 113th CONGRESS 2d Session H. R. 776 [Report No. 113–462, Parts I and II] IN THE HOUSE OF REPRESENTATIVES February 15, 2013 Mr. Hanna (for himself and Mr. Graves of Missouri ) introduced the following bill; which was 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 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; committed 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 A BILL To amend title 31, United States Code, to revise requirements related to assets pledged by a surety, and for other purposes.

1. Short title This Act may be cited as the Security in Bonding Act of 2013 . 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 Government 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. . 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 .

1. Short title This Act may be cited as the Security in Bonding Act of 2014 . 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 Government 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. . 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 . 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 officer, 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. (2) The consequences to the Federal Government, subcontractors, and suppliers of the instances described 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 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 period beginning on the date of the enactment of this Act, the Comptroller General shall issue a report to the Committee on the Judiciary of the House of Representatives and the Committee on Homeland Security and Government Affairs of the Senate containing all findings and determinations 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 meaning given that term under section 124.1002(b) of title 13, Code of Federal Regulations.

1. Short title This Act may be cited as the Security in Bonding Act of 2014 . 2. 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 .

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. .

May 21, 2014 Reported from the Committee on the Judiciary with an amendment May 21, 2014 Reported from the Committee on Small Business with amendments; committed to the Committee of the Whole House on the State of the Union and ordered to be printed