S.Amdt. 4784

SA 4784. Mr. CARDIN submitted an amendment intended to be proposed
to amendment SA 4753 proposed by Mr. Reid (for himself and Mr.
McConnell) to the bill H.R. 4853, to amend the Internal Revenue Code of
1986 to extend the funding and expenditure authority of the Airport and
Airway Trust Fund, to amend title 49, United States Code, to extend
authorizations for the airport improvement program, and for other
purposes; which was ordered to lie on the table; as follows:

On page 74, after line 6, insert the following:

TITLE IX--SURETY BONDS

SEC. 901. SURETY BONDS.

(a) Maximum Bond Amount.--Section 411(a)(1) of the Small
Business Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is
amended by striking ``(1)'' and all that follows and
inserting the following: ``(1)(A) The Administration may,
upon such terms and conditions as it may prescribe, guarantee
and enter into commitments to guarantee any surety against
loss resulting from a breach of the terms of a bid bond,
payment bond, performance bond, or bonds ancillary thereto,
by a principal on any total work order or contract amount at
the time of bond execution that does not exceed $5,000,000.
``(B) The Administrator may guarantee a surety under
subparagraph (A) for a total work order or contract amount
that does not exceed $10,000,000, if a contracting officer of
a Federal agency certifies that such a guarantee is
necessary.''.
(b) Denial of Liability.--Section 411 of the Small Business
Investment Act of 1958 (15 U.S.C. 694b) is amended--
(1) by striking subsection (e) and inserting the following:
``(e) Reimbursement of Surety; Conditions.--Pursuant to any
such guarantee or agreement, the Administration shall
reimburse the surety, as provided in subsection (c) of this
section, except that the Administration shall be relieved of
liability (in whole or in part within the discretion of the
Administration) if--
``(1) the surety obtained such guarantee or agreement, or
applied for such reimbursement, by fraud or material
misrepresentation;
``(2) the total contract amount at the time of execution of
the bond or bonds exceeds $5,000,000;
``(3) the surety has breached a material term or condition
of such guarantee agreement; or
``(4) the surety has substantially violated the regulations
promulgated by the Administration pursuant to subsection
(d).'';
(2) by striking subsection (k); and
(3) by adding after subsection (i) the following:
``(j) Denial of Liability.--For bonds made or executed with
the prior approval of the Administration, the Administration
shall not deny liability to a surety based upon material
information that was provided as part of the guaranty
application.''.
(c) Size Standards.--Section 410 of the Small Business
Investment Act of 1958 (15 U.S.C. 694a) is amended--
(1) by striking paragraph (9); and
(2) adding after paragraph (8) the following:
``(9) Notwithstanding any other provision of law or any
rule, regulation, or order of the Administration, for
purposes of sections 410, 411, and 412 the term `small
business concern' means a business concern that meets the
size standard for the primary industry in which such business
concern, and the affiliates of such business concern, is
engaged, as determined by the Administrator in accordance
with the North American Industry Classification System.''.
(d) Conforming Amendment.--Section 508(f) of division A of
the American Recovery and Reinvestment Act of 2009 (15 U.S.C.
694a note) is repealed.
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