HB 83 reintroduces a state bond guarantee program bill that died for lack of funding last year. HB 83 would create the Surety Bond Guarantee Fund Program. The program would serve to enable disadvantaged businesses to bid competitively for certain Commonwealth contracts. The Surety Bond Guarantee Fund (Fund) would provide guarantees up to $1 million for any one small or disadvantaged business enterprise. To qualify for a guarantee, the bond would have to meet the following criteria: 1) the bond must be listed in the contract bonds section of “The Surety Association of America’s Manual Of Rules, Procedures and Classifications”; 2) the bond is required by the contract, invitation for bid or request for proposal; 3) the surety company issuing the bond must be listed on the U.S. Treasury Department’s Circular 570 as an acceptable company; and 4) the bond must meet any other requirements established in regulations. The bill also contains a provision that the bond must contain a provision allowing the bond to be cancelled with 30-days notice to the Department, or the bond will not qualify for a guarantee.
