S.Amdt. 3340

1. Rewrites section 501

   Replaces

   Removes section 501.

   Inserted: SEC. 501. SURETY BONDS.

   Inserted: (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--

   Inserted: (1) by inserting "(A)" after "(1)";

   Inserted: (2) by striking "does not exceed" and all that follows through the period at the end and inserting "does not exceed $6,500,000, as adjusted for inflation in accordance with section 1908 of title 41, United States Code."; and

   Inserted: (3) by adding at the end the following:

   Inserted: "(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.".

   Inserted: (b) Limitation of Liability.--Section 411(c)(1) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(c)(1)) is amended by striking "70 per centum" and inserting "90 percent".

   Inserted: (c) Denial of Liability.--Section 411 of the Small Business Investment Act of 1958 (15 U.S.C. 694b) is amended--

   Inserted: (1) by striking subsection (e) and inserting the following:

   Inserted: "(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--

   Inserted: "(1) the surety obtained such guarantee or agreement, or applied for such reimbursement, by fraud or material misrepresentation;

   Inserted: "(2) the total contract amount at the time of execution of the bond or bonds exceeds $6,500,000;

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   Inserted: "(3) the surety has breached a material term or condition of such guarantee agreement; or

   Inserted: "(4) the surety has substantially violated the regulations promulgated by the Administration pursuant to subsection (d)."; and

   Inserted: (2) by striking subsection (k), as added by section 508(b)(2) of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 158), and inserting the following:

   Inserted: "(j) 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 guarantee application.".

   Inserted: (d) Size Standards.--Section 410 of the Small Business Investment Act of 1958 (15 U.S.C. 694a) is amended by striking paragraph (9), as added by section 508(c) of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 158), and inserting the following:

   Inserted: "(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.".

   Original wording

   Strike section 501 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed