Home > 105th Congressional Bills > H.R. 4456 (ih) To amend title II of the Social Security Act to provide for an increase ...H.R. 4456 (ih) To amend title II of the Social Security Act to provide for an increase ...
108th CONGRESS
2d Session
H. R. 4455
To prohibit discrimination on the basis of certain factors with respect
to any aspect of a surety bond transaction.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 20, 2004
Ms. Norton introduced the following bill; which was referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To prohibit discrimination on the basis of certain factors with respect
to any aspect of a surety bond transaction.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Equal Surety Bond Opportunity Act''.
SEC. 2. EQUAL SURETY BOND OPPORTUNITY REQUIREMENTS.
(a) Activities Constituting Discrimination.--It shall be unlawful
for any surety to discriminate against any applicant, with respect to
any aspect of a surety bond transaction--
(1) on the basis of race, color, religion, national origin,
sex, marital status, sexual orientation, disability, or age (if
the applicant has the capacity to contract);
(2) because the applicant has in good faith exercised any
right under this Act;
(3) because the applicant previously obtained a bond
through an individual or personal surety; or
(4) because the applicant previously obtained a bond
through--
(A) any bonding assistance program expressly
authorized by law;
(B) any bonding assistance program administered by
a nonprofit organization for its members or an
economically disadvantaged class of persons; or
(C) any special purpose bonding program offered by
a profit-making organization to meet special needs.
(b) Activities not Constituting Discrimination.--It shall not
constitute discrimination for purposes of this Act for a surety--
(1) to make an inquiry of marital status if such inquiry is
for the purpose of ascertaining the surety's rights and
remedies applicable to the granting of a bond and not to
discriminate in a determination of bondability;
(2) to make an inquiry of the applicant's age if such
inquiry is for the purpose of determining the amount and
probable continuance of bondability; or
(3) to make an inquiry as to where the applicant has
previously obtained a bond, in order to determine bonding
history, or other pertinent element of bondability, except that
an applicant may not be assigned a negative factor or value
because the applicant previously obtained a bond through--
(A) an individual or personal surety;
(B) a bonding assistance program expressly
authorized by law;
(C) any bonding program administered by a nonprofit
organization for its members or an economically
disadvantaged class of persons; or
(D) any special purpose bonding program offered by
a profit-making organization to meet special needs.
(c) Additional Activities not Constituting Discrimination.--It is
not a violation of this Act for a surety to refuse to issue a bond
pursuant to--
(1) any bonding assistance program authorized by law for an
economically disadvantaged class of persons;
(2) any bonding assistance program administered by a
nonprofit organization for its members or an economically
disadvantaged class of persons; or
(3) any special purpose bonding program offered by a
profit-making organization to meet special needs;
if such refusal is required by or made pursuant to such program.
(d) Reasons for Adverse Action; Procedure Applicable; Definition.--
(1) Notice required.--
(A) In general.--Except as provided in subparagraph
(B), any surety approved under section 9304 of title
31, United States Code, shall notify an applicant of
the surety's action on a completed application before
the end of the 10-day period beginning on the date the
application is filed with the surety.
(B) Extension.--The 10-day period referred to in
subparagraph (A) may be extended an additional 10 days
if the surety has not issued a bond to the applicant
during the 1-year period ending on the date the
application is filed with the surety.
(2) Statement of reasons.--
(A) In general.--Each applicant against whom
adverse action is taken shall be entitled to a
statement of reasons for such action from the surety.
(B) Acceptable forms of statement.--A surety
satisfies the requirement established under
subparagraph (A) by--
(i) providing a statement of reasons in
writing as a matter of course to applicants
against whom adverse action is taken; or
(ii) giving written notification of adverse
action which discloses--
(I) the applicant's right to a
statement of reasons within 30 days
after receipt by the surety of a
request made within 60 days after such
notification; and
(II) the identity of the person or
office from which such statement may be
obtained.
(C) Oral statement permitted.--Such statement may
be given orally if the written notification advises the
applicant of the applicant's right to have the
statement of reasons confirmed in writing on written
request.
(3) Specificity of reasons.--A statement of reasons meets
the requirements of this Act only if it contains specific
reasons for the adverse action taken.
(4) Applicability in case of 3d party applications.--In the
case of a request to a surety by a third party to issue a bond
directly or indirectly to an applicant, the notification and
statement of reasons required by this section may be made
directly by such surety, or indirectly through the third party,
if the identity of the surety is disclosed to the applicant.
(5) Applicability in case of sureties which accept few
applications.--The requirements of paragraph (2), (3), or (4)
may be satisfied by oral statements or notifications in the
case of any surety who did not act on more than 100
applications 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 refusal to issue a bond in
the amount or on substantially the terms requested; and
(2) does not include any refusal to issue an additional
bond under an existing bonding arrangement where the applicant
is in default, or where such additional bond would exceed a
previously established 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 applicant
(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 or grant such other equitable relief as
the court determines 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 maintains 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 paragraph
(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 penalty of perjury by the
president and the secretary of the corporation.''.
(2) Compliance as a condition for approval of
application.--Section 9305(b) of title 31, United States Code,
is amended--
(A) by striking ``and'' at the end of paragraph
(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 Opportunity Act''
before the semicolon;
(B) by striking ``and'' at the end of paragraph
(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 beginning on
the effective date of any revocation under paragraph (1) of the
authority of a surety corporation 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 certain judgments.--
Section 9305(e) of title 31, United States Code, is amended--
(A) by striking ``and'' at the end of paragraph
(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 judgment or
order against the corporation for noncompliance with the Equal
Surety Bond Opportunity Act or fails to comply with any order
under section 3(c) of such Act;''.
(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 Surety Bond Opportunity Act'' before the period.
(d) Regulations.--
(1) In general.--The Secretary of the Treasury shall
prescribe such regulations as may be necessary to carry out the
purposes of this Act.
(2) Initial regulations.--The initial regulations
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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