NEWS
CNA Government Relations, with the help of surety industry and producer associations, takes an active role in surety and fidelity bond legislative issues at the federal, state and local level.
Use the drop-down menu below to review recent legislative developments specific to your state.
The mission of our Government Relations Department is to promote and defend our products and business practices at all levels of government.
CNA Government Relations works with lawmakers on legislation that improves the effectiveness of surety bonding and guards against adverse legislative developments. For example, every year 125,000 bills are introduced in state legislatures across the country. CNA's Government Relations Department has the responsibility of identifying those that affect the surety and fidelity industry. Our team of professionals reviews and analyzes legislation and directs lobbying efforts to ensure a positive outcome.
The Government Relations Department also works with local governments on Licence and Permit Bond issues. Many professions are required to post a bond at the local level. Government Relations works to ensure that local communities receive information and support to obtain the kind of public protection afforded by bonds.
Need more specific information? Please contact our Government Relations Department at 800-CNA-2000 (800-262-2000).
COMMERCIAL SURETY
HB 22 – Notaries Public. Appointment of residents of bordering states who carry on a business, profession, or are regularly employed in Alabama.
Status: 3/5/19: (H) read first time and referred to State Government
HB 81 – Motor Fuels. Would enact the Rebuild Alabama Act to levy an additional excise tax on gasoline and diesel fuel, and increase the cap on the bond for suppliers, permissive suppliers, or terminal operators from $2,000,000 to $3,000,000.
Status: 3/5/19: (H) read first time and referred to Transportation, Utilities and Infrastructure
SB 76 – Medicaid Estate Recovery Program. Provides that a Medicaid agency may petition the court to open the probate estate of a Medicaid recipient by filing a petition to appoint a third party administrator. The administrator would be required to procure a bond in accordance with Article 4, Chapter 2, of Title 43 of the Code of Alabama 1975.
Status: 3/5/19: (S) read first time and referred to Governmental Affairs
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 16 – Alcoholic Beverages. Would revise existing law so that a brewer, distiller, bottler, jobber, wholesaler, or manufacturer would not be required to post the bond if they have filed monthly tax returns and paid the tax to the Department of Revenue in a timely manner over the most current three consecutive years. Current law requires licensees to post a $25,000 bond to secure payment of the applicable tax.
Status: 3/8/19: (S) in Finance. Co-sponsors added.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 2151 – Court Bond. Provides that a bond may be required in connection with proceedings to compel the satisfaction of a judgment. The party filing the motion for satisfaction of the judgment would have to post the bond, and it would have to be equal to the amount of the judgment.
Status: 2/25/19: (S) first reading, referred to Judiciary and then Rules
HB 2229 – Cable Licensing and Video Service Providers. Would require video service providers to comply with all local laws concerning the use and occupation of a highway, including the performance bond requirements, in connection with entering into a video service license agreement.
Status: 2/25/19: (S) first reading, referred to Commerce and then Rules
HB 2231 – Professions and Occupations. Would require the state to use the least restrictive requirements for non-health occupational regulations. The bill establishes standards for occupational regulations based on the ALEC model act. Required bonding and insurance would be considered more restrictive while voluntary bonding and insurance would be less restrictive. There would be a rebuttable presumption that market competition and private remedies are sufficient to protect the public if the state does not regulate a practice. The bill would also revise the existing sunset and sunrise review processes for occupational regulations to incorporate these standards. State legislative committees reviewing occupational regulations under these procedures would be allowed to recommend that a state agency administering an occupational regulation could repeal the license requirement, convert the license to a less restrictive requirement (registration), or for the state agency to seek legislation or adopt regulations that impose less restrictive requirements, change the qualifications for the license, and redefine the scope of practice for the license.
Status: 3/4/19: (H) failed to pass
HB 2463 – Occupational Regulations. Would require notice to be given to any persons required to have a license that they have the right to petition for the repeal or modification of an occupational regulation or bring an action in court to challenge the regulation if the person believes the regulation is not necessary to fulfill a public health, safety, or welfare concern.
Status: 3/11/19: (S) from Rules: Proper for consideration. To Consent Calendar
SB 1216 – Receivers. Would require receivers for commercial real estate to post a surety bond or other security to secure the faithful discharge of their duties in an amount to be specified by the court. The court would have to approve the sureties on the bond. The bill would adopt the Uniform Commercial Real Estate Receivership Act.
Status: 3/6/19: (H) referred to Commerce; additionally referred to Rules
SB 1403 – Prescription Drug Wholesalers. Would repeal the bond requirement for wholesale prescription drug distributors. Current law requires a permit bond or other security in an amount of at least $100,000 to secure the payment of fines and penalties, as well as any permit fees or costs that the distributor does not pay.
Status: 3/5/19: (H) referred to Health and Human Services; Regulatory Affairs; and Rules
CONTRACT SURETY
HB 2147 – Design-Build; Performance Bond. Would authorize the International Transportation and Trade Corridor Authority to build and operate transportation and trade facilities. The Authority could enter into lease agreements for the land for the facility and for the construction and/or operation and maintenance of the facility. The Authority could use the design-build method. Any agreement between the Authority and a lessee, user, or jurisdictional sponsor of the facility would have to include a method for assuring the payment of the obligations of the lessee, user, or jurisdictional sponsor, which could include a bond in an amount equal to the entity's obligations to the Authority or other security.
Status: 2/20/19: (H) from State and International Affairs: Do pass with amendment
SB 1271 – Indemnity Agreements. Would prohibit provisions in private construction contracts for dwellings that would indemnify against liability for losses or damages resulting from the negligence of the contractor or the contractor's indemnitees, employees, subcontractors, consultants or agents. A surety's agreements for indemnification of a payment bond or a performance bond by its principal or indemnitors would be exempted from this provision.
Status: 3/12/19: (H) first read; referred to Judiciary and the Rules
SB 1285 – Retainage. Would require retainage on state and local projects to be 5% for the entire project. For state projects, requiring retainage would be discretionary rather than mandatory. Retainage would remain mandatory for all local construction projects. Currently, 10% retainage is withheld for state and local projects until they reach 50% completion, and 5% retainage may be withheld for the remainder of the project. Half of the retainage withheld is released at 50% completion. The bill also would establish prompt pay requirements and require any licensed contractor, subcontractor, or material supplier that files a prompt payment complaint with the Registrar of Contractors to post a bond or a cash deposit of $500 or one-half of the amount due, whichever is less, to secure the payment of claims. The bond would be forfeited if the claim is determined to be frivolous and without merit.
Status: 3/5/19: (H) referred to Commerce and Rules Committees
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1117 – Public Officials. Would repeal the bond requirements for the director of the Arkansas Natural Resources Commission ($10,000), the state forester ($25,000), and the state forester's assistants.
Status: 1/14/19: (H) introduced and referred to State Agencies and Government Affairs
HB 1118 – Public Officials. Would repeal the requirement for the director of Parks and Tourism to post a $10,000 bond conditioned on faithful performance of duties.
Status: 1/14/19: (H) introduced and referred to State Agencies and Government Affairs
HB 1301 – Occupational Licensing. Would create a new process for persons to obtain expedited temporary licenses if he or she holds an occupational license in good standing from another state or U.S. territory or district that is substantially similar. Occupational licensing entities in Arkansas would have to implement the least restrictive requirements to grant a reciprocity license endorsement. If the person's state does not require a license, the occupational licensing entity would have to adopt regulations that are the least restrictive to permit sufficiently competent individuals to obtain an Arkansas license. The occupational licensing entity would be allowed to require the individual applying for occupational licensure to meet any bonding, financial statement, or insurance requirements that are applicable to all applicants. The bill's provisions would not apply to reciprocity or licensing by endorsement provisions that already are in existing law for several professions. Occupational licensing entities would be permitted to enter into agreements with occupational licensing entities in other states to assure that there are comparable nonresident licensing opportunities.
Status: 3/8/19: (H) correctly enrolled and ordered transmitted to the Governor's office
HB 1371 – Fidelity Bonds. Would repeal the fidelity bond requirement for employees of the bank commissioner. The bond covers the liabilities for the employee's position.
Status: 2/4/19: (H) read first time, rules suspended, read second time and referred to State Agencies and Governmental Affairs
HB 1527 – Occupational Licensing. Provides that is the legislature's intent to determine and implement the least restrictive form of occupational authorization to protect consumers from significant and substantiated harms to public health and safety. The bill would establish a process for the Legislative Council to review occupational regulations on an annual basis to determine if the regulations are consistent with this intent. The Legislative Counsel would have to analyze whether consumers are sufficiently protected by competition, public knowledge of the reputations of occupational practitioners, private ratings and reviews, private certification, voluntary bonding, and voluntary insurance. If the Legislative Council finds substantiated evidence of significant harm arising from failure of an occupational licensee to complete a contract fully or comply with standards, the Legislative Council may recommend legislation requiring the occupational licensee to be bonded. The Legislative Council would have to recommend to the legislature whether to repeal an occupational regulation, revise the regulation to be less restrictive, revise the qualifications for the occupation, or revise the scope of practice of an occupation or profession. The bill would impose reporting requirements on occupational entities concerning their regulations.
Status: 3/12/19: (H) returned by Public Health, Welfare and Labor Committee: Do pass
NEW LAW: SB 187 – Money Transmitters. Would revise the license bond amount required for money transmitters to require a bond in an amount based on the dollar volume of money transmissions, payment instruments, and store value instruments, with a $10,000 minimum and $300,000 maximum. The bill would authorize setting specific bond amounts by regulation. Under current law, the bond amount must be $50,000, plus $10,000 per location with a maximum amount of $300,000.
Status: 2/13/19: approved by the Governor; Act No. 111
SB 264 – Fresh Start Act. Would prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation for which a license is required solely or in part because of a prior conviction of a crime, unless the crime directly relates to the duties and responsibilities for the licensed occupation. The bill would require state licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify a license applicant to meet this standard. State license authorities would be prohibited from using terms such as "moral turpitude" and "good character." State licensing authorities also could not consider a license applicant's arrests without a conviction. The bill would allow a person with a criminal record to petition a licensing authority to determine whether the criminal record would disqualify the person from obtaining the license. The bill also would eliminate references to good moral character and moral turpitude in several existing licensing laws.
Status: 2/26/19: (S) reported correctly engrossed; re-referred to Public Health, Welfare and Labor
SB 342 – Contractors. Would allow contractors to post a surety bond in lieu of submitting financial statements that are required under existing law. The bond would have to be in an amount equal to 10 times the amount of the required minimum net worth for the contractor's registration or license classification. Existing law, however, does not provide for a net worth requirement. The surety providing the bond would have to be licensed in the state and be listed on the U.S. Treasury Department's Circular 570. The surety also would have to have an "A" rating from A.M. Best and Company, Inc. The state would have priority over all other claims to recover against the bond. The bond would have to be for the benefit of persons suffering damages due to the contractor's act or omission that results in a breach of the contract or an unlawful act or omission in the performance of the contractor's services. Existing law already requires a $10,000 license bond that does not include these requirements for the surety.
Status: 3/13/19: (H) reported correctly engrossed
CONTRACT SURETY
HB 1041 – Threshold. Would increase the threshold at which bid bonds are required from $35,000 to $50,000.
Status: 1/28/19: (S) read first time, rules suspended, read second time, referred to City, County and Local Affairs
NEW LAW: SB 150 – P3s. Would authorize state and local government entities to enter into a P3 with private providers for voice, data, broadband, video, or wireless telecommunications services to the public. The bill provides that the government entity could, either on its own or in partnership with a private entity, apply for funding through grants or loans for the construction, acquisition, or leasing of facilities, land, or buildings used to deploy broadband service in unserved areas and provide, directly or indirectly, voice, data, broadband, video, or wireless telecommunications services. The bill does not specify any procurement requirements.
Status: 2/26/19: approved by the Governor; Act 198; effective upon passage
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 1057 – Oil and Gas Wells. Would double the amount of the bonds required under existing law for operators of oil and gas wells. For individual wells, the bill would increase the bond required for a well that is less than 10,000 feet deep from $25,000 to $50,000, and would increase the amount required for well that is more than 10,000 feet deep from $40,000 to $80,000. Under existing law, a blanket bond may be posted if the operator has 20 or more wells. The bond must be in an amount ranging from $200,000 to $3 million based on the number of wells that the operator has in the state. The bill would increase the blanket bond so that it would have to be in an amount ranging from $400,000 to $6 million based on the number of wells. Last year, California enacted a law requiring the requires the State Oil and Gas Supervisor to evaluate and estimate the costs for decommissioning offshore oil and gas wells and develop a schedule to increase the bond amounts or other financial assurance that the operator provides to secure decommissioning costs because the state had experienced two oil company bankruptcies.
Status: 3/7/19: (A) referred to Natural Resources
AB 1342 – Private Postsecondary Educational Institutions. Would require a nonprofit corporation that operates or controls a private postsecondary educational institution to obtain the Attorney General's consent before entering into certain agreements or transactions. The Attorney General's consent to an agreement or transaction could include certain conditions, including a requirement for the corporation post a surety bond to provide recovery to students who were enrolled at the private postsecondary educational institution upon the institution's subsequent closure.
Status: 2/25/19: (A) read first time
AB 1489 – Virtual Currency Businesses. Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Department of Business Oversight would determine based on the nature and the extent of the licensee's virtual currency business model. The bond or other security would secure the licensee's compliance with the applicable law. A surety bond only could be required if it is generally available in the state for a commercially reasonable cost. The Department could require the bond to be in place for a period of time that it will determine after the licensee ceases to do business in the state.
Status: 2/25/19: (A) read first time
AB 1627 – Nonparticipating Tobacco Manufacturers. Would establish additional factors with regard to fee payments, reporting compliance, and sales practices for determining when a tobacco manufacturer poses an elevated risk and would be subject to the bond requirement to be listed on the state's directory of nonparticipating tobacco manufacturers.
Status: 2/25/19: (A) read first time
SB 410 – Hunting and Fishing Guides. Would increase the amount of the bond required for persons licensed as a guide through the Department of Fish and Wildlife from $1,000 to $2,500.
Status: 2/28/19: (S) referred to Natural Resources and Water
CONTRACT SURETY
AB 356 – Payment and/or Performance Bonds; Retainage. Would authorize the Los Angeles Community College District to use the best value contracting method for construction projects exceeding $1 million in a pilot program. If the district requires the contractor to furnish a performance and payment bond, retainage could not exceed 5%. The contractor would be allowed to withhold more retainage from its subcontractor than the district withholds from the contractor if the subcontractor is unable or refuses to furnish any bonds that the contractor requires. The contractor's ability to obtain payment bonds would have to be considered when evaluating his or her financial condition.
Status: 3/12/19: (A) re-referred to Higher Education
AB 1074 – Payment and/or Performance Bonds. Would create the Accessory Dwelling Unit Construction Program. Under this program, the Department of Housing and Community Development would be authorized to enter into a contract with a homeowner to provide financing to pay for the eligible costs that the homeowner incurs when constructing an accessory dwelling unit on the homeowner's property. The bill provides that the Department could require the contractor to furnish a bond or other security in an amount that the Department would determine. The bond would secure compliance with the terms of the contract and the payment to persons furnishing material or labor on the construction of the accessory dwelling unit.
Status: 3/7/19: (A) referred to Housing and Community Development and Local Government
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1043 – Life Care Facilities. Would revise the existing law concerning the kinds of security that may be posted to meet the reserve requirements for life care facilities to allow surety bonds. Existing law permits several forms of security to be posted. The reserves must cover the obligations of the provider under the life care agreements.
Status: 3/11/19: (S) Business, Labor, and Technology refer unamended - Consent Calendar to Senate Committee of the Whole
SB 65 – Peer Health Assistant Programs - Emergency Medical Service Providers. Would require an administering entity for a peer health assistance program for emergency medical service providers to post a bond in an amount that the State Board of Health would determine to secure its performance under the law.
Status: 3/13/19: (S) second reading, passed with amendments - committee
SB 105 – Trusts. Would adopt the Uniform Directed Trust Act, which would require the trust director for a directed trust to comply with the existing bond requirement for trustees. Existing law requires a bond under the Uniform Trust Code's model in which the trustee must post a bond only if the court required one or it is required by the terms of the trust and the court has not dispensed with the requirement.
Status: 3/8/19: (H) third reading, passed - no amendments
CONTRACT SURETY
SB 101 – P3s. Would prohibit the Department of Transportation or any of its enterprises from constructing or designating a managed lane on a state highway or entering into a P3 for a managed lane, unless the DOT conducts a thorough evaluation of alternatives for increasing capacity and reducing traffic congestion on state highways, publishes a detailed report on why the alternatives are not feasible and makes it available online, conducts outreach efforts, and submits annual reports to the state legislature.
Status: 2/26/19: (S) from Transportation and Energy: Postpone indefinitely
SB 138 – P3s; Payment and/or Performance Bonds. Would require the Department of Personnel (Department) to conduct a disparity study on the state's procurement process to determine whether any disparities exist between the participation of historically underutilized businesses and other businesses and to make recommendations to address any discrepancies identified by the study. The study would have to cover all of the state's contracts entered into from the 2014‑2015 to the 2017‑2018 state fiscal years and includes construction contracts. The bill sets forth the required types of analyses that must be conducted in the study. Any conclusion that discrimination‑related disparity exists between the availability and utilization of historically underutilized businesses would have to be supported by statistical evidence and could be supplemented or supported by anecdotal evidence. The executive director of the Department would have to develop a method to track the contracts entered into by all principal departments of the executive branch of state government, institutions of higher education, and the Colorado Commission on Higher Education that are awarded during any calendar year to a historically underutilized business. The information would have to be posted to the Department's website.
Status: 3/8/19: (H) introduced; assigned to Finance
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
CONNECTICUT – CT General Assembly | Session Dates: 1/9/19 – 6/5/19
COMMERCIAL SURETY
HB 7104 – Uniform Trust Code. Would adopt the Uniform Trust Code. Under current law, the court must require a trustee to post a bond, unless it is otherwise specified in the will. The court may require a trustee to post a bond if it is not required in the will upon application from an interested person. The bill provides that the trustee only would have to post a bond if the court determines it is needed or if it is required in the terms of the trust and the court has not dispensed with the requirement. The court would determine the bond amount, its liabilities and whether sureties are required.
Status: 2/15/19: (H) in Joint Committee on Judiciary; public hearing held
SB 815 – Public Officials. Would permit the Connecticut Health and Educational Facilities Authority and the Connecticut Higher Education Supplemental Loan Authority to obtain an insurance policy in lieu of a surety bond to secure the faithful performance of the duties of authorized officers or employees. The insurance policy would have to be for $100,000 per each occurrence. These authorities would have to determine any applicable deductible or self-insured retention. Under existing law, the bond for the Connecticut Health and Educational Facilities Authority must be for $50,000 for each board member and $100,000 for each officer. A blanket bond is accepted to meet the requirement. For the Connecticut Higher Education Supplemental Loan Authority, a $50,000 bond is required for each officer and board member authorized to handle funds. A $50,000 blanket bond is accepted to meet the requirement.
Status: 3/13/19: (S) reported out of LCO; favorable report, tabled for the calendar; Senate Calendar Number 53; File Number 58 (LCO)
SB 881 – Self-Insurers - FMLA. Would establish a paid family and medical leave program for employers. Employers could apply for approval to meet their obligations under this program through a private plan. If the employer's private plan is in the form of self-insurance, the employer would have to post a surety bond in an amount that the Labor Department would determine.
Status: 3/8/19: (S) in Joint Committee on Labor and Public Employees; public hearing on 3/12/19
CONTRACT SURETY
HB 5945 – P3s. Would require the Commissioner of Transportation to be required to study best practices of established P3s, and to make recommendations to the relevant joint standing committee of the General Assembly that handles transportation issues on creating a framework for P3s to thrive in the state.
Status: 3/18/19: referred to Joint Committee on Transportation
HB 7280 – Infrastructure; P3s. Would create the Connecticut Transportation Finance Authority for transportation infrastructure projects. The bill would authorize the Authority to pursue P3s for the design, development, operation or maintenance of transportation systems, transit-oriented development and related infrastructure. The bill does not specify procurement requirements for P3s. The bill also would allow the Commissioner of Transportation to establish electronic tolling systems on state highways. The bill would create a Connecticut Transportation Infrastructure Bank Fund.
Status: 3/6/19: in Joint Committee on Transportation; public hearing held
SB 878 – P3s; Payment and/or Performance Bonds. Would expand the existing P3 law to authorize the use of this project delivery method permanently for an unlimited number of projects, instead of operating as a pilot program for five projects. Under existing law, performance and payment bonds or other security is required as a condition of the P3 agreement. The bill also would revise the kinds of projects eligible to be conducted as a P3. Currently, any public building or transportation project that generates revenue can be conducted as a P3. The bill would allow P3s to be used for any kind of infrastructure project.
Status: 2/21/19: referred to Joint Committee on Government Administration and Elections
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
CONTRACT SURETY
LB 119 (B23-0119) – Bad Faith. Would give insurance claimants a cause of action for bad faith in claims handling. The bill would apply to any kind of insurance policy or insurance contract. Employee dishonesty coverage is among the list of policies specifically listed. The bill also applies to any other policies known or considered to be policies of insurance. Insureds are given a private right of action if the insurer does not pay them within 30 days of the receipt of sufficient documentation of the loss where such refusal to pay is wrong, mistaken, in error, or unreasonable, regardless of the insurer's intent. The court can award interest at 7% from the date that the claim was first made, economic and noneconomic damages proximately caused ad the claimant's attorney and expert fees and costs. In cases where the insurance claim amount due is reasonable, the court can triple the amount due.
Status: 2/15/19: in Council Committee on Business and Economic Development; notice of intent to act published in the DC Register
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 3 – Occupational Regulations - Preemption of Local Regulations. Would preempt local governments from adopting regulations and licensing requirements for professions and occupations so that this exclusively would be the state's role. The proposed law would supersede any local government regulation or licensing requirement of professions and occupations, except for those in place prior to July 1, 2019, and any such regulation that is expressly authorized by general law or ratified by the legislature before July 1, 2021. All local professional and occupational regulations would expire on July 1, 2021, without such legislative approval. After July 1, 2019, local governments only could adopt new regulations on businesses if the regulation is necessary to protect the public health, safety, or welfare from significant and discernible harm or damage and that the police power being exercised is only being exercised to the extent necessary for that purpose. New local regulations could not unnecessarily restrict entry into the business or adversely impact the availability of the business' services. The regulation would have to be the least restrictive and most cost effective regulatory scheme. The bill does not define what the least restrictive regulations would be, but it does set forth several factors for evaluating the cost impact of a regulation. The local government would have to issue a statement of the estimated costs using these standards and certify that the regulation either does not impose regulatory costs or that there is not a less costly alternative. All local regulations would have to sunset after two years from when it was adopted. Professional and occupational regulations would have to be adopted with a two-thirds majority vote of the local governing body. The bill specifically would restrict local governments from requiring licenses for specialty contractors for the following trades: painting, flooring, cabinetry, interior remodeling, driveway or tennis court installation, and decorative stone, tile, marble, granite, or terrazzo installation, plastering, and stuccoing.
Status: 3/5/19: (H) first reading; PCS added to State Affairs Committee agenda
Related Bill: SB 1748
HB 409 – Electronic Notaries. Would require online notaries providing electronic notarizations to post a minimum $25,000 surety bond, conditioned on the faithful performance of the notaries' official duties. If a notary posts this bond, he or she would not be required to post a separate bond for the existing notary bond requirement. The bill would also require qualified custodians of electronic wills to post a minimum $250,000 surety bond or liability insurance to cover the acts or omissions of the custodian and each of its agents or employees. The bond would be for the benefit of all persons who store electronic records with a qualified custodian and their estates, beneficiaries, successors, and heirs, and conditioned on the faithful performance of all duties and obligations.
Status: 3/11/19: (H) added to Civil Justice Subcommittee agenda
HB 431 – Lien Release. Would allow a person claiming a lien against a motor vehicle to obtain the release of the vehicle from a lien claimed by a motor vehicle repair shop by posting a surety bond or cash deposit as provided in existing law for vehicle owners seeking the vehicle's release from the shop.
Status: 3/11/19: (H) in Judiciary; Transportation and Infrastructure Subcommittee, first reading
HB 475 – Certificate of Title - Vessels. Would authorize the Department of Highway Safety to require a bond or other security in connection with an application for transfer of ownership or termination of security interest without a certificate of title for a vessel that is valued at more than $5,000. The bond would have to be in an amount not more than twice the value of the vessel, and indemnify any owner, purchaser, or other claimant for any expense, loss, delay, or damage, including reasonable attorney fees and costs, but not including incidental or consequential damages resulting from creation or amendment of the certificate of title for the vessel.
Status: 3/11/19: (H) in State Affairs; Transportation and Tourism Appropriations Subcommittee, first reading
Related Bill: SB 676
HB 1053 – Private Rebuilt Motor Vehicle Inspection Program. Would create a private rebuilt motor vehicle inspection program that would be designed to prevent the use of stolen parts in the rebuilding process, identify and recover stolen motor vehicles, require the installation of non-recalled airbags in rebuilt motor vehicles, and assist law enforcement with the investigation of motor vehicle theft and related fraud. To participate in this program a private rebuilt inspection provider would have to furnish a $100,000 surety bond or letter of credit to cover all activities in the program.
Status: 3/12/19: (H) favorable with Committee Substitute by Transportation and Infrastructure Subcommittee
SB 334 – Occupational Regulation. Would require several occupational licensing boards to use the process set forth in the bill for reviewing a license applicants criminal record to determine the applicant's eligibility, including licenses for contractors. The bill would prohibit using the criminal history of an applicant for licensure for these licensing boards to be used as grounds for denial of the license if the date of conviction, plea, or adjudication, or the date of sentencing is more than three years before the date of application.
Status: 3/13/19: (S) in Innovation, Industry, and Technology; pending reference review under Rule 4.7(2) - (Committee Substitute)
SB 548 – Electronic Notaries and Custodians of Electronic Wills. Would require online notaries providing electronic notarizations to post a minimum $25,000 surety bond, conditioned on the faithful performance of the notaries' official duties. If a notary posts this bond, he or she would not be required to post a separate bond for the existing notary bond requirement. The bill would also require qualified custodians of electronic wills to post a minimum $250,000 surety bond or liability insurance to cover the acts or omissions of the custodian and each of its agents or employees. The bond would be for the benefit of all persons who store electronic records with a qualified custodian and their estates, beneficiaries, successors, and heirs, and conditioned on the faithful performance of all duties and obligations.
Status: 3/5/19: (S) introduced
Related Bill: HB 409
SB 676 – Certificate of Title - Vessels. Would authorize the Department of Highway Safety to require a bond or other security in connection with an application for transfer of ownership or termination of security interest without a certificate of title for a vessel that is valued at more than $5,000. The bond would have to be in an amount not more than twice the value of the vessel, and indemnify any owner, purchaser, or other claimant for any expense, loss, delay, or damage, including reasonable attorney fees and costs, but not including incidental or consequential damages resulting from creation or amendment of the certificate of title for the vessel.
Status: 3/5/19: (S) introduced
Related Bill: HB 475
SB 1322 – Marijuana Treatment Centers. Would require medical marijuana treatment centers to register and post a $1 million "performance and compliance bond" instead of the $5 million bond or letter of credit required under existing law. The bond would be forfeited if the treatment center fails to comply with the requirements established in the bill.
Status: 3/5/19: (S) introduced
SB 1640 – Occupational Licensing. This bill is an occupational deregulation measure that would revise or repeal several license requirements. The bill would repeal the license requirement for talent agencies but retain the existing $5,000 bond requirement. The bond is conditioned on compliance with the applicable law. The law also permits direct actions on the talent agency's bond.
Status: 3/8/19: (S) referred to Innovation, Industry, and Technology; Commerce and Tourism
SB 1748 – Occupational Regulations - Preemption of Local Regulations. Would preempt local governments from adopting regulations and licensing requirements for professions and occupations so that this exclusively would be the state's role. The proposed law would supersede any local government regulation or licensing requirement of professions and occupations, except for those in place prior to July 1, 2019, and any such regulation that is expressly authorized by general law or ratified by the legislature before July 1, 2021. All local professional and occupational regulations would expire on July 1, 2021, without such legislative approval. After July 1, 2019, local governments only could adopt new regulations on businesses if the regulation is necessary to protect the public health, safety, or welfare from significant and discernible harm or damage and that the police power being exercised is only being exercised to the extent necessary for that purpose. New local regulations could not unnecessarily restrict entry into the business or adversely impact the availability of the business' services. The regulation would have to be the least restrictive and most cost effective regulatory scheme. The bill does not define what the least restrictive regulations would be, but it does set forth several factors for evaluating the cost impact of a regulation. The local government would have to issue a statement of the estimated costs using these standards and certify that the regulation either does not impose regulatory costs or that there is not a less costly alternative. All local regulations would have to sunset after two years from when it was adopted. Professional and occupational regulations would have to be adopted with a two-thirds majority vote of the local governing body. The bill specifically would restrict local governments from requiring licenses for specialty contractors for the following trades: painting, flooring, cabinetry, interior remodeling, driveway or tennis court installation, and decorative stone, tile, marble, granite, or terrazzo installation, plastering, and stuccoing.
Status: 3/8/19: (S) referred to Community Affairs; Commerce and Tourism; Rules
Related Bill: HB 3
CONTRACT SURETY
HB 101 – Retainage. Would reduce the amount of retainage that could be withheld from a progress payment from an amount not exceeding 10% to an amount not exceeding 5% until the project reaches 50% completion for any contracts for public construction services. The bill would reduce the amount of retainage that is withheld after these projects reach 50% completion from 5% to 2.5%; it would also reduce the amount that can be withheld on public building contracts that are below $200,000 from up to 10% to up to 5% of each progress payment.
Status: 3/13/19: (H) reported out of Oversight, Transparency and Public Management Subcommittee. Now in Commerce
Related Bill: SB 246
HB 385 – P3s. Would authorize the Tampa-Hillsborough County Expressway Authority and the Central Florida Expressway Authority to enter into P3s for transportation facilities. The bill does not provide any procurement requirements for these P3s. The bill provides that each P3 transportation facility constructed under the bill's provisions would have to comply with all of the requirements of federal, state, and local laws; state, regional, and local comprehensive plans; the rules, policies, procedures, and standards for transportation facilities for these authorities; and any other conditions that these authorities determine to be in the public's best interest.
Status: 3/8/19: (H) first reading; referred to State Affairs
Related Bill: SB 898
HB 1247 – Payment Bonds. Provides that the law concerning the payment of attorneys' fees in suit against a surety on a performance or payment bond would apply to a contractor's suit. Current law provides that the attorneys' fees requirements apply to suits against sureties that are brought by owners, subcontractors, laborers, and materialmen. The bill would revise the existing law concerning conditional payment bonds furnished for private work to allow a contractor to record a notice identifying a project bond as a conditional payment bond before the project commences in order to make the duty of a surety to pay lienors coextensive with the contractor's duty to pay. A failure to list or record a bond as a conditional payment bond would not convert the bond into a common law bond or a payment bond furnished under the existing law for private work. The bill also would revise the notice requirements for payment bond claimants on public works projects to set forth the required contents of a notice of nonpayment. The bill also would establish penalties for fraudulent notices of nonpayment.
Status: 3/15/19: (H) in Commerce. Assigned to Business and Professions Subcommittee; added to agenda.
Related Bill: SB 1200
SB 122 – Award of Attorney Fees. Would revise the existing law concerning the award of attorney fees in judgments against insurers to specify that an insured or beneficiary entitled to attorney fees under an insurance policy or contract would have to be a named insured or named beneficiary. The bill also provides that the right to attorney fees also could not be assigned or extended by contract or other agreement to any person other than another named insured, named beneficiary, or omnibus insured.
Status: 3/13/19: (S) in Judiciary; on agenda
SB 246 – Retainage. Would reduce the amount of retainage that could be withheld from a progress payment from an amount not exceeding 10% to an amount not exceeding 5% until the project reaches 50% completion for any contracts for public construction services. The bill would reduce the amount of retainage that is withheld after these projects reach 50% completion from 5% to 2.5%; it would also reduce the amount that can be withheld on public building contracts that are below $200,000 from up to 10% to up to 5% of each progress payment.
Status: 3/7/19: (S) referred to Appropriations
Related Bill: HB 101
SB 898 – P3s. Would authorize the Tampa-Hillsborough County Expressway Authority and the Central Florida Expressway Authority to enter into P3s for transportation facilities. The bill does not provide any procurement requirements for these P3s. The bill provides that each P3 transportation facility constructed under the bill's provisions would have to comply with all of the requirements of federal, state, and local laws; state, regional, and local comprehensive plans; the rules, policies, procedures, and standards for transportation facilities for these authorities; and any other conditions that these authorities determine to be in the public's best interest.
Status: 3/14/19: (S) in Appropriations Subcommittee on Transportation, Tourism, and Economic Development
Related Bill: HB 385
SB 1200 – Payment Bonds. Provides that the law concerning the payment of attorneys' fees in suit against a surety on a performance or payment bond would apply to a contractor's suit. Current law provides that the attorneys' fees requirements apply to suits against sureties that are brought by owners, subcontractors, laborers, and materialmen. The bill would revise the existing law concerning conditional payment bonds furnished for private work to allow a contractor to record a notice identifying a project bond as a conditional payment bond before the project commences in order to make the duty of a surety to pay lienors coextensive with the contractor's duty to pay. A failure to list or record a bond as a conditional payment bond would not convert the bond into a common law bond or a payment bond furnished under the existing law for private work. The bill also would revise the notice requirements for payment bond claimants on public works projects to set forth the required contents of a notice of nonpayment. The bill also would establish penalties for fraudulent notices of nonpayment.
Status: 2/19/19: Pre-filed
Related Bill: HB 1247
SB 1534 – Small Business; Bond Waivers. Provides that micro-businesses would be eligible for the Department of Transportation's existing small business programs for highway contracts, which includes bond waivers, contract set-asides, and contracting preferences.
Status: 3/13/19: (S) introduced
SB 7068 – P3s. Would create the Multi-use Corridors of Regional Economic Significance Program for the Department of Transportation for the construction of regional corridors to accommodate multiple modes of transportation and multiple types of infrastructure. The bill provides that P3s could be used for these projects. Under the existing P3 law for the DOT, surety bonds or other security are required. The DOT determines the forms and amounts of security required for P3s. Projects included in this program are the Southwest-Central Florida Connector, the Suncoast Connector, and the Northern Turnpike Connector.
Status: 3/14/19: (S) on Committee agenda - Appropriations Subcommittee on Transportation, Tourism, and Economic Development
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 213 – Hemp Processors. Would require a person seeking a hemp processor permit to post a $100,000 surety bond to secure the permittee's compliance with the law.
Status: 2/28/19: (S) read first time and referred to Agriculture and Consumer Affairs
HB 257 – Magistrates. Would increase the amount of the bond required for magistrates from $25,000 to $100,000.
Status: 3/5/19: (S) read first time and referred to Special Judiciary
HB 417 – Trauma Scene Waste Management Service Providers. Would require a trauma scene waste management service provider to be licensed and post a $25,000 surety bond for the benefit of any person harmed in the provider's performance of its services. In addition to being licensed by the state insurance department, the surety issuing the bond would have to be approved by the Bureau of Investigation with regard to its solvency.
Status: 3/4/19: (H) Public Safety and Homeland Security - favorably reported by substitute
Related Bill: SB 153
HB 450 – Mariculture Development. Would require master harvesters entering into a lease for shellfish mariculture activities on sub-tidal water bottoms to post a $20,000 performance bond to secure compliance with the applicable law. The bill provides for the forfeiture of the bond for violations.
Status: 2/25/19: (H) read second time
Related Bills: HB 501, SB 182
HB 501 – Mariculture Development. Would require master harvesters entering into a lease for shellfish mariculture activities on sub-tidal water bottoms to post a $20,000 performance bond to secure compliance with the applicable law. The bill provides for the forfeiture of the bond for violations.
Status: 3/7/19: (S) read first time and referred to Natural Resources and the Environment
Related Bills: HB 450, SB 182
SB 153 – Trauma Scene Waste Management Service Providers. Would require a trauma scene waste management service provider to be licensed and post a $25,000 surety bond for the benefit of any person harmed in the provider's performance of its services. In addition to being licensed by the state insurance department, the surety issuing the bond would have to be approved by the Bureau of Investigation with regard to its solvency.
Status: 3/7/19: (H) read second time
Related Bill: HB 417
SB 182 – Mariculture Development. Would require master harvesters entering into a lease for shellfish mariculture activities on sub-tidal water bottoms to post a $20,000 performance bond to secure compliance with the applicable law. The bill provides for the forfeiture of the bond for violations.
Status: 3/5/19: (H) read second time
Related Bills: HB 450, SB 501
CONTRACT SURETY
HB 90 – Small/Minority Businesses. Would create the Division of Supplier Diversity to provide programs to assist minority- and women- owned businesses obtain state contracts and subcontracts. The director of the Division could provide assistance for and facilitated access to programs serving these businesses to ensure that they benefit from bonding and insurance education programs. The Director could review contracting agencies' bonding and paperwork requirements and seek to maximize the use of federal bond guarantees.
Status: 2/5/19: (H) second readers
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 70 – Virtual Currency Businesses. Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Division of Financial Institutions would determined, based on the nature and the extent of the applicant's virtual currency business model. A surety bond would only be required if it is generally available in the state for a commercially reasonable cost.
Status: 2/1/19: (H) re-referred to Intrastate Commerce, Consumer Protection & Commerce/Judiciary, and Finance
Related Bill: SB 250
HB 79 – Small Loan Lenders. Would require small loan lenders to be licensed and post a surety bond in an amount ranging from $30,000 to $250,000, based on the lender's loan origination volume. The bond would secure the lender's compliance with applicable laws and regulations, and the payment of any amount due to the state and persons having a cause of action against the lender. The surety's aggregate liability would be limited to the bond amount.
Status: 1/22/19: (H) referred to Consumer Protection & Commerce and Finance
Related Bill: SB 537
HB 638 – Planned Community Association Managing Agent. Would require the managing agent for a planned community association to obtain a fidelity bond in an amount equal to $500 multiplied by the aggregate number of units in the association that the agent manages. The minimum bond amount would be $20,000 and the maximum amount would be $500,000. The bill provides that the fidelity bond would protect the managing agent against the loss of any association's moneys, securities, or other properties caused by the fraudulent or dishonest acts of employees of the managing agent. The bill also would require a planned community association with more than five dwelling units to obtain a fidelity bond that covers persons, including the managing agent and its employees who control or disburse funds of the association, in an amount equal to $500 multiplied by the number of units in the association. The minimum bond amount would be $20,000 and the maximum bond amount would be $200,000. The bill would permit associations to seek an exemption from the bond requirement or provide an alternative form of security.
Status: 2/1/19: (H) hearing held in Consumer Protection and Commerce; committee recommended that the measure be deferred
HB 986 – Third Party Administrators. Would require a third party administrator for insurance plans to be licensed and to post a surety bond of at least $300,000. The insurance commissioner would determine the bond amount. The bill provides for a two-year tail on the bond, but the bond could be cancelled earlier with the insurance commissioner's permission.
Status: 2/14/19: (H) passed second reading as amended and referred to Finance
Related Bill: SB 1212
HB 1058 – Payday Lenders. Would require payday lenders to be licensed and post a surety bond in an amount ranging from $30,000 to $250,000, based on the annual dollar amount of deferred deposit agreements conducted. The bond would secure the lender's compliance with applicable laws and regulations, and payment of any amount due to the state and persons having a cause of action against the lender. The aggregate liability of the surety would be limited to the bond amount.
Status: 1/28/19: (H) to Intrastate Commerce. Subsequent referral set for Consumer Protection and Commerce, and Finance
SB 250 – Virtual Currency Businesses. Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Division of Financial Institutions would determined, based on the nature and the extent of the applicant's virtual currency business model. A surety bond would only be required if it is generally available in the state for a commercially reasonable cost.
Status: 1/24/19: (S) re-referred to Commerce, Consumer Protection, and Health and Ways and Means
Related Bill: HB 70
SB 537 – Small Loan Lenders. Would require small loan lenders to be licensed and post a surety bond in an amount ranging from $30,000 to $250,000, based on the lender's loan origination volume. The bond would secure the lender's compliance with applicable laws and regulations, and the payment of any amount due to the state and persons having a cause of action against the lender. The surety's aggregate liability would be limited to the bond amount.
Status: 3/11/19: (H) in Intrastate Commerce; hearing scheduled: 3/14/19
Related Bill: HB 79
SB 686 – Cannabis Dispensaries. Would legalize marijuana for recreational use. Under current law, marijuana only is allowed for medical uses. The bill would revise the existing law for medical cannabis distribution systems to reflect this change, including the requirement for a cannabis dispensary to provide documentation that demonstrates control of not less than $1 million in the form of a surety bond or other security.
Status: 2/13/19: (S) to Commerce, Consumer Protection, and Health; additionally referred to Ways and Means
SB 1212 – Third Party Administrators. Would require a third party administrator for insurance plans to be licensed and to post a surety bond of at least $300,000. The insurance commissioner would determine the bond amount. The bill provides for a two-year tail on the bond, but the bond could be cancelled earlier with the insurance commissioner's permission.
Status: 3/12/19: (H) Consumer Protection and Commerce recommend that the measure be passed, with amendments
Related Bill: HB 986
CONTRACT SURETY
HB 821 – P3s; Infrastructure. Would authorize the Department of Business, Economic Development, and Tourism to enter into a P3 to plan, build, and manage key strategic broadband infrastructure that benefits the state, including a cable landing station. The bill would exempt these projects from the state procurement law, which includes the Little Miller Act. The P3 partners would have to develop internal policies and procedures for the procurement of goods, services, and construction that are consistent with the goals of public accountability and public procurement. The bill also would exempt these projects from state and county permitting requirements.
Status: 3/15/19: (S) Energy, Economic Development, and Tourism recommends that the measure be passed, with amendments.
HB 889 – P3s. Would authorize the state and county governments to enter into P3s for infrastructure facilities. In addition to the current bid security requirements, the bill would require one or more forms of security to assure the timely, faithful, and uninterrupted provision of operations or maintenance services as elements of the P3. Acceptable forms of security would include operations period surety bonds to secure the contractor's operations and maintenance obligations, a letter of credit to cover the cost of preventing infrastructure service interruptions for a period of up to 12 months, and parent company guarantees to secure the recovery of re-procurement costs to the purchasing agency in the event of the contractor's default in performance. The bill would establish the Office of Public-Private Partnerships to assist state and county agencies with these projects and develop best practices for P3s.
Status: 3/15/19: (S) in Government Operations; public hearing scheduled for 3/19/19
Related Bill: SB 882
HB 1025 – Performance Bonds. Would require the lessee, or lessee and developer, for a lease with the Board of Land and Natural Resources for public lands for commercial, hotel, resort, or industrial use to furnish a sufficient performance bond to secure the terms and conditions of the development agreement.
Status: 3/15/19: (H) Water and Land recommends that the measure be passed, with amendments.
Related Bill: SB 1251
HB 1062 – Infrastructure; Performance Bonds. Would establish a broadband infrastructure grant program. The bill provides that the regulations adopted to implement the program could not include third-party audit requirements, letter of credit, security fund, or performance bond obligations, or any other financial commitment to secure performance other than those expressly specified in the law. The law does not currently include such specifications.
Status: 3/5/19: (S) passed first reading; referred to Technology/Energy, Economic Development, and Tourism, then Ways and Means
Related Bills: HB 1156 and SB 553
HB 1156 – Infrastructure; Performance Bonds. Would establish a broadband infrastructure grant program. The bill provides that the regulations adopted to implement the program could not include third-party audit requirements, letter of credit, security fund, or performance bond obligations, or any other financial commitment to secure performance other than those expressly specified in the law. The law does not currently include such specifications.
Status: 2/8/19: (H) passed second reading as amended and referred to Consumer Protection and Commerce
Related Bills: HB 1062 and SB 553
HB 1212 – P3s. Would authorize the Hawaii Community Development Authority to enter into P3s by establishing a lease-back arrangement between the Authority and private investors. Under these agreements, the private investor would renovate, improve, or construct public infrastructure for the Authority under a ground lease or easement, and may maintain the facility. The private investor would lease back the public infrastructure to the Authority. The Authority would have the option to purchase the public infrastructure at any time during the lease.
Status: 1/28/19: (H) to Housing. Additionally referred to Transportation. Subsequent referrals set for: Water and Land and Finance
HB 1582 – Bid Bonds. Would allow proposals to be submitted for concessions on public property. Existing law only allows for bids. Such proposals would be subject to the existing law's bid bond requirements for concessions contracts.
Status: 3/7/19: (S) re-referred to Government Operations/Labor, Culture and the Arts, then Ways and Means
Related Bill: SB 1535
SB 218 – P3s. Would require the Hawaii Technology Development Corporation shall seek to establish a public-private partnership with a private organization to plan, build, and manage broadband infrastructure projects. Pursuant to existing law, these projects would be exempt from state and county permitting requirements and utility pole replacement requirements. The bill does not specify any procurement requirements for these projects otherwise.
Status: 2/15/19: (S) report adopted; passed second reading as amended and referred to Ways and Means
SB 515 – Financing; P3s. Would create the Hawaii State Infrastructure Bank to provide financial assistance for public and private affordable housing projects. The bill provides that a P3 would be eligible to receive funds through this program.
Status: 1/24/19: (S) To Housing. Additionally referred to Commerce, Consumer Protection, and Health. Subsequent referral set for Ways and Means.
SB 553 – Infrastructure; Performance Bonds. Would establish a broadband infrastructure grant program. The bill provides that the regulations adopted to implement the program could not include third-party audit requirements, letter of credit, security fund, or performance bond obligations, or any other financial commitment to secure performance other than those expressly specified in the law. The law does not currently include such specifications.
Status: 3/15/19: (H) passed second reading as amended and referred to Consumer Protection and Commerce
Related Bills: HB 1062 and HB 1156
SB 882 – P3s. Would authorize the state and county governments to enter into P3s for infrastructure facilities. In addition to the current bid security requirements, the bill would require one or more forms of security to assure the timely, faithful, and uninterrupted provision of operations or maintenance services as elements of the P3. Acceptable forms of security would include operations period surety bonds to secure the contractor's operations and maintenance obligations, a letter of credit to cover the cost of preventing infrastructure service interruptions for a period of up to 12 months, and parent company guarantees to secure the recovery of re-procurement costs to the purchasing agency in the event of the contractor's default in performance. The bill would establish the Office of Public-Private Partnerships to assist state and county agencies with these projects and develop best practices for P3s.
Status: 1/24/19: (S) referred to Government Operations; Energy, Economic Development, & Tourism; and Ways and Means
Related Bill: HB 889
SB 1251 – Performance Bonds. Would require the lessee, or lessee and developer, for a lease with the Board of Land and Natural Resources for public lands for commercial, hotel, resort, or industrial use to furnish a sufficient performance bond to secure the terms and conditions of the development agreement.
Status: 3/7/19: (H) passed first reading; referred to Water, Land, and Hawaiian Affairs; Judiciary; Finance
Related Bill: HB 1025
SB 1535 – Bid Bonds. Would allow proposals to be submitted for concessions on public property. Existing law only allows for bids. Such proposals would be subject to the existing law's bid bond requirements for concessions contracts.
Status: 1/28/19: (S) referred to Government Operations; Ways and Means
Related Bill: HB 1582
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 141 – Reclamation. Would revise the financial assurance requirements for mining operations to permit other forms of security to be furnished in lieu of a surety bond as financial assurance. The bill also would eliminate the requirement for the financial assurance to include an additional 10% of the costs of reclamation and closing the facility.
Status: 3/1/19: (S) introduced, read first time; referred to Resources and Environment
SB 1007 – Collection Agencies. Would repeal the existing requirement for collection agencies to post a $15,000 surety bond or certificate of deposit in connection with licensure, and establish the Collection Agency Recovery Fund.
Status: 2/28/19: (H) read first time; referred to Business
SB 1048 – Fidelity Bond; Financial Institution. Would revise the fidelity bond requirement for credit unions to eliminate a requirement that the fidelity bond cover burglary, robbery, larceny, theft, forgery or alterations of instruments, misplacement or mysterious disappearance, and for faithful performance of duty. The bond only would have to cover fraud and dishonesty as required under existing law.
Status: 3/11/19: (H) read second time; filed for third reading
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1471 – Trusts. Would repeal the current trust code and replace it with the Uniform Trust Code. The bill provides that a trustee would be required to post a bond only if it is required by the terms of the trust and the court has not dispensed with the requirement. The liability of the trustee or any surety for acts or omissions of the trustee would not be discharged or affected by the trustee's resignation. Corporate fiduciaries would be exempt from the bond requirement. Current law does not require a trustee to be bonded.
Status: 3/6/19: (H) placed on Calendar Order of 3rd Reading - Short Debate
HB 2577 – Liquor Manufacturers and Importing Distributors. Would exempt liquor manufacturers and importing distributors from the existing tax bond requirement if their tax liability is less than $50,000 in the preceding year.
Status: 2/26/19: (H) assigned to Executive Committee
HB 3269 – Motor Vehicle Dealers. Would require "Buy Here, Pay Here" used vehicle dealers to be licensed and post a surety bond for $50,000 per location. The bond would be conditioned upon the proper transmittal of all title and registration fees and taxes that the licensee accepts. A "Buy Here, Pay Here" dealer is an entity that engages in the business of selling or leasing of vehicles and finances the sale or purchase price of the vehicle to a customer without the customer using a third-party lender.
Status: 3/13/19: (H) placed on Calendar 2nd Reading - Short Debate
SB 2037 – Notary Public Remittance Agents. Would require notary public remittance agents to post a $20,000 surety bond. Such agents remit notary public applications to the Secretary of State on behalf of applicants for appointment and commission as a notary public.
Status: 3/5/19: (S) assigned to State Government
SB 2084 – Alternative Retail Electric Suppliers. Would require alternative retail electric suppliers applying to service all eligible retail customers to post a "license or permit bond" for $600,000. The bond would be conditioned on the full and faithful performance of all duties and obligations. The bond would have to be valid for not less than one year.
Status: 3/5/19: (S) assigned to Energy and Public Utilities
CONTRACT SURETY
HB 873 – Performance Bonds. Would create the Metro East Development Authority. Contractors performing work on the Authority's construction contracts for demolishing buildings and for paving and improving streets would have to provide a performance bond.
Status: 2/14/19: (H) in Revenue and Finance; to Property Tax Subcommittee
HB 2722 – Payment Bonds. Would amend the Little Miller Act to require the bond to cover the payment of apparatus, fixtures, and machinery used in the completion of a contract. Existing law requires the bond to cover the payment of materials and labor. The bill would allow persons furnishing an apparatus, fixtures, and machinery to file claims against the bond for payment as provided under existing law for persons furnishing materials and labor. The bill would define "material", "labor", "apparatus", "fixtures", and "machinery" to include rented items that are on the construction site and rented tools used or consumed on the construction site in the performance of the contract for which the bond is given.
Status: 3/14/19: (H) placed on Calendar 2nd Reading - Short Debate
HB 2865 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds. Would authorize the use of the design-build and construction manager/general contractor project delivery methods for transportation facility projects. The bill provides that the projects would be subject to the requirements of the Little Miller Act. The request for proposals for these projects could set out the bid, payment, and performance security requirements.
Status: 2/26/19: (H) assigned to Transportation: Regulation, Roads and Bridges This legislation reflects SFAA's and APCIA's past work with the DOT to require bonding for these projects.
Related Bills: HB 3063, HB 3443 and SB 1995
HB 2916 – Retainage. Would cap retainage on private construction contracts at not more than 10% of the progress payments until the project reaches 50% completion, at which time retainage would be reduced to 5%.
Status: 2/26/19: (H) assigned to Executive Committee
Related Bill: SB 1636
HB 3063 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds. Would authorize the use of the design-build and construction manager/general contractor project delivery methods for transportation facility projects. The bill provides that the projects would be subject to the requirements of the Little Miller Act. The request for proposals for these projects could set out the bid, payment, and performance security requirements.
Status: 3/5/19: (H) assigned to Executive Committee
Related Bills: HB 2865, HB 3443 and SB 1995
HB 3398 – Energy Savings; Performance Bonds. Would increase the required guarantee period for an energy savings contract entered into with public universities from 20 to 30 years. The guarantee must insure that either the energy or operational cost savings, or both, will meet or exceed within 20 years the costs of the energy conservation measure under existing law. The law requires providers to furnish a bond for the installation and the faithful performance of all the measures included in the contract.
Status: 3/12/19: (H) in Public Utilities; to Regulatory Matters Subcommittee
HB 3443 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds. Would authorize the use of the design-build and construction manager/general contractor project delivery methods for transportation facility projects. The bill provides that the projects would be subject to the requirements of the Little Miller Act. The request for proposals for these projects could set out the bid, payment, and performance security requirements.
Status: 3/13/19: (H) in State Government Administration; to Agency Operation Subcommittee
Related Bills: HB 2865, HB 3063 and SB 1995
SB 1636 – Retainage. Would cap retainage on private construction contracts at not more than 10% of the progress payments until the project reaches 50% completion, at which time retainage would be reduced to 5%.
Status: 3/13/19: (S) placed on Calendar Order of 3rd Reading for 3/14/19
Related Bill: HB 2916
SB 1846 – Minority Business; Payment and/or Performance Bonds; Veteran-Owned Business; Woman-Owned Business. Would include veterans in existing contracting programs for minorities, women, and persons with disabilities, including a provision concerning surety bond premiums. The law prohibits the premium bond rate of a surety company for a bond required for a business owned by a minority, woman, or person with a disability who is bidding for a state contract from being higher than the lowest rate charged by the surety company for a similar bond in the same classification of work that would be written for a business not owned by a minority, woman, or person with a disability.
Status: 3/12/19: (S) in Executive; Senate Committee Amendment No. 1 to Governmental Operations Subcommittee
SB 1995 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds. Would authorize the use of the design-build and construction manager/general contractor project delivery methods for transportation facility projects. The bill provides that the projects would be subject to the requirements of the Little Miller Act. The request for proposals for these projects could set out the bid, payment, and performance security requirements.
Status: 3/12/19: (S) placed on Calendar Order of 2nd Reading for 3/13/19
Related Bills: HB 2865, HB 3063, HB 3443
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1086 – Local Licensing and Permitting. Would establish standards for license bonds that a political subdivision may require. If a person is required to post a license or permit bond in a political subdivision, the bond would have to be: (i) written by a surety authorized to transact business in the state; (ii) in an amount that is at least equal to the amount that the political subdivision requires; and (iii) must specify the appropriate political subdivision(s) as the obligee(s), as set forth in the bill. The bond condition would have to otherwise comply with the requirements of the ordinance imposing the bond requirement. The licensee would have to file a copy of the bond with the political subdivision or the appropriate agency. The political subdivision would be prohibited from requiring the license bond to be recorded.
Status: 3/11/19: (S) Local Government Committee Report: Do pass, adopted
HB 1196 – Horse Racing Events. Would revise the existing permit bond requirements for horse racing events to allow alternative forms of security to be furnished in lieu of the bond required under existing law, which must be in an amount not to exceed $1 million.
Status: 2/27/19: (S) first reading; referred to Public Policy
HB 1271 – Occupational Licensing. Would permit employers and consumers to hire a person if he or she does not have a license for certain professions or occupations listed in the bill if the person performing the work provides a disclosure notice to the consumer that complies with the requirements of the law. An individual who engages in an occupation without a license is required to comply with all health, safety, security, confidentiality, reporting, and consumer protection requirements that are imposed on an individual with an occupational license, including insurance, and bonding, among other requirements.
Status: 1/10/19: (H) first reading; referred to Employment, Labor and Pensions
HB 1395 – Right-of-Way Permits. Would revise the existing bond requirements for permits from the Department of Transportation for the excavation or obstruction of a street, highway, or right-of-way to cap the bond amount at not more than $10,000 for each area designated in the permit. The bill provides that a blanket bond could be furnished to meet the bond requirement.
Status: 1/16/19: (H) in Utilities, Energy and Telecommunications; Rep. Lehman added as coauthor
HB 1440 – Residential Loan Brokers. Would rewrite the current law on residential loan brokers, who must post a surety bond in an amount ranging from $50,000 to $75,000, based on the volume of the loan origination business. The bill would require the broker to post a $60,000 bond in electronic form. The bond would cover all of the broker's loan originators and principal managers.
Status: 2/27/19: (S) first reading; referred to Insurance and Financial Institutions
HB 1444 – e-Cigarette Distributors. Would require distributors of e-cigarette vapor products and consumable materials to post a $1,000 bond conditioned on compliance with the applicable law.
Status: 3/4/19: (S) first reading; referred to Appropriations
HB 1447 – Civil Proceeding Advance Payment Transaction Providers. Would revise the bond requirement for civil proceeding advance payment transaction providers to require the surety issuing the bond to have at least an A- rating, the bond to have a 2-year tail, and require 30 days' notice to cancel the bond. Current law requires a bond in an amount not to exceed $50,000. The bill would require notices in connection with license bonds for mortgage businesses to be sent through the NMLSR rather than by mail. Providers would also have to send notices via the NMLSR.
Status: 2/27/19: (S) first reading; referred to Insurance and Financial Institutions
HB 1675 – Education Savings Accounts. Would establish an education savings account program as part of a school choice measure. The bill would require participating entities receiving $50,000 or more in funds from such accounts to post a bond in an amount equal to the funds expected to be received during the school year or provide financial information demonstrating their ability to repay that amount.
Status: 1/24/19: (H) first reading; referred to Education
SB 265 – Trustees. Would adopt the Uniform Directed Trust Law. Trust directors would have to comply with the existing bond requirements for trustees. The law requires the trustee to post a bond only if the terms of the trust or the court requires a bond to be posted. Unless otherwise directed, the court determines the amount, surety, and term of the bond. The court also has discretion to excuse a bond requirement.
Status: 3/4/19: (H) first reading; referred to Judiciary
SB 345 – Postsecondary Educational Institutions. Would require for-profit postsecondary educational institutions to post a surety bond or other form of financial guarantee, conditioned on the institution faithfully performing all agreements and contracts with students. The Commission for Higher Education would determine the bond amount. The bill would also require institutions to pay an annual fee for the For-Profit Postsecondary Educational Student Reimbursement Fund. If the total claims filed against the bond or guarantee exceed the penal sum, the surety or guarantor would pay the amount of the bond or guarantee to the Commission for distribution to claimants. The Commission would only pay claimants who applied for reimbursement from the recovery fund if the claimant filed a claim against the bond and the bond has been exhausted.
Status: 1/10/19: (S) introduced and referred to Education and Career Development
SB 357 – Public Officials. Would regulate the use of cannabis in the state. Commissioners of the Cannabis Compliance Commission would be required to post a $10,000 bond to secure their performance of duties.
Status: 1/31/19: (S) in Health and Provider Services; Sen. Stoops added as coauthor
Related Bill: SB 211
SB 384 – Occupational Licensing. Would require the least restrictive regulation to be adopted if it is determined that an occupational regulation is needed to protect consumers. The bill provides that there is a presumption that market competition and private remedies are sufficient to protect consumers. The bill follows the ALEC model act for determining what the least restrictive regulation is; required bonding and insurance would be considered more restrictive and voluntary bonding and insurance would be considered less restrictive. All proposed regulations would be subject to review by the Small Business Ombudsman using these standards. An occupational regulation would only be adopted if there is credible empirical evidence of a systematic problem that justifies the adoption of an occupational regulation to protect consumers. The bill would incorporate these standards for occupational regulations into the existing law's requirements to review all regulations for their costs and economic impact, regulatory flexibility, impacts on small businesses, and for readopting regulations that are set to expire. The bill would permit the attorney general to disapprove an occupational regulation if it violated federal antitrust laws.
Status: 1/14/19: (S) introduced and referred to Commerce and Technology. Senators Holdman and Spartz added as coauthors.
SB 576 – Public Officials. Would repeal the existing bond requirements for the executive directors of the Health Professions Licensing Agency and the Workforce Licensing Agency. The bonds secure faithful performance of duties and faithful accounting of all money and property that the executive director handles in his/her official capacity.
Status: 1/14/19: (S) introduced and referred to Commerce and Technology
SB 613 – Installment Lenders. Would require installment small loan lenders to meet the license and bond requirements in existing law for small loan lenders ($50,000 per location). The director of the Department of Financial Institutions determines the maximum amount of the bond required. The bond is conditioned on compliance with the applicable law and regulations, and must remain in force for two years after expiration. The surety must have at least an A- rating.
Status: 3/7/19: (H) first reading; referred to Financial Institutions
CONTRACT SURETY
HB 1019 – Bond Threshold. Would increase the threshold at which certain bidding requirements must be met for construction contracts with county drainage boards from $75,000 to $150,000, including bonding requirements. For contracts under this threshold, the boards have the authority to waive the bid bond and performance bond requirements under existing law. The state bond threshold is $200,000.
Status: 3/14/19: (S) second reading; ordered engrossed
HB 1052 – P3s; Payment and/or Performance Bonds. As amended, this bill would allow political subdivisions to enter into P3s for regional jail facilities under the existing law for using P3s for public facilities. The P3 agreement may require a performance bond and provide for the payment of contractors and subcontractors under the applicable law.
Status: 3/7/19: (S) first reading; referred to Tax and Fiscal Policy
HB 1055 – Payment Bonds. Would allow the discharge of a mechanic's lien claim by either the posting of a new indemnification bond or the filing of copies of a payment bond furnished by a contractor or subcontractor. The indemnification bond or the payment bond would have to be equal to at least 150% of the lien claim and the surety issuing the indemnification bond or payment bond would have to be rated at least "A-" by at least one nationally recognized investment rating service. A bond filed or deposited discharges the liability of a person served by a lien claimant. The bill also provides for the formation of a study committee to study judgment liens and establishing an online system for submitting information, sending notices concerning judgments, and providing a searchable database for these cases.
Status: 3/7/19: (S) first reading; referred to Judiciary
HB 1374 – P3s; Payment and/or Performance Bonds. Would establish a requirement for payment and performance bonds in all three of the existing P3 laws. For projects under $25 million, performance and payment bonds may be required and the public entity may set the bond amount. For projects that exceed $25 million but are less than $250 million, performance and payment bonds that are equal to the design and construction costs for the project would be required. For projects exceeding $250 million, performance and payment bonds would be required in an amount of not less than 50% of the design and construction costs. The requirements would apply to P3 agreements entered into after June 30, 2019.
Status: 3/4/19: (S) first reading; referred to Homeland Security and Transportation
SB 66 – P3s. As amended, this bill would create the Gary Trans-Modal Compact between the various transportation entities in the Gary area to oversee, direct, support, coordinate, and plan for the development, enhancement, and operation of infrastructure serving the trans-modal compact area. The bill would allow the compact to enter into P3s under the existing law allowing the use of P3s for transportation facilities. Under this P3 law, the P3 agreement must provide for the delivery of performance and payment bonds or other performance security in the forms and amounts set forth in the P3 agreement or as the DOT determines to be satisfactory to protect the DOT and payment bond beneficiaries.
Status: 3/11/19: (H) in Public Policy; cosponsors added
SB 290 – Prevailing Wage. Would establish a prevailing wage requirement for public construction contracts exceeding $150,000. The public owner could terminate the contract if the contractor or a subcontractor failed to pay the prevailing wage rate. The original contractor or subcontractor and their sureties would be liable to the public owner for any excess costs resulting from the contractor's or subcontractor's failure to pay the required prevailing wage. The Commissioner of Labor could bring an action against the contractor's or subcontractor's surety to pay wages to workers claiming that they were paid less than the prevailing wage. If the Commissioner prevails, the contractor, subcontractor, and their sureties would be liable for the costs of the suit and reasonable attorney fees according to the court's determination. The previous prevailing wage law was repealed in 2015, which did not include liability provisions for sureties.
Status: 1/7/19: (S) first reading; referred to Pensions and Labor
SB 574 – Bonding Assistance Program. Would add businesses owned by Hoosiers with a disability as small businesses. The bill would require these businesses to be included in an annual offering of instruction on surety bond requirements and how to obtain bonds from the Department of Administration that is available under existing law for small, women, and minority-owned businesses. The bill would also include these businesses in contract preferences in existing law for public works and purchasing contracts that currently apply to small, women, and minority-owned businesses.
Status: 1/14/19: (S) first reading; referred to Pensions and Labor
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HF 64 – Fidelity Bonds; Background Checks. Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made. The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.
Status: 1/28/19: (H) in Labor; subcommittee assignments: Grassley, Dolecheck and Hunter
Related Bills: HF 163, SF 142
HF 163 – Fidelity Bonds; Background Checks. Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made. The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.
Status: 2/4/19: (H) in Labor; subcommittee assignments: Grassley, Dolecheck and Hunter
Related Bills: HF 64, SF 142
HF 391 (HSB 13) – Travel Trailer Dealers. Would increase the amount of the bond required for travel trailer dealers from $25,000 to $75,000.
Status: 2/14/19: (H) introduced, placed on calendar
Related Bill: SF 268
HF 398 – Reclamation. Would require owners of a confined feeding operation for animals to post a $10 million surety bond in connection with obtaining approval for a manure management plan. The bond would secure the payment of the related costs if there is a violation of the law that results in a discharge from a manure storage structure. The surety's liability would be limited to the bond amount.
Status: 2/18/19: (H) introduced, referred to Agriculture
HF 472 – Fidelity Bonds; Background Checks. Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made. The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.
Status: 2/21/19: (H) introduced, referred to Labor
Related Bills: HF 64, HF 163, SF 142, SF 390
HF 551 – Occupational Licensing. Would create a sunset advisory committee in the General Assembly. The bill would establish a sunset review process for state agencies that the committee would administer in which agencies would be reviewed on a 12-year schedule. The bill does not follow the ALEC model for reviewing agencies and regulations. The bill establishes criteria for the committee to consider in such reviews to determine whether a public need exists for an agency or its functions. The criteria would include the efficiency and effectiveness with which the agency operates, identification of the agency's objectives, and the problems or needs that the agency was intended to address, identification of agency's activities in addition to those required or authorized by statute, an assessment of the agency's specific authority to impose any fees or penalties it imposes and to conduct any inspections that it conducts. The bill would require the committee to report on its findings and track the implementation of its findings.
Status: 2/27/19: (H) introduced, referred to State Government
HF 648 – Sports Betting. Would authorize gambling companies to conduct sports betting in the state. The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations.
Status: 3/11/19: (H) in Ways and Means; subcommittee assignments.
Related Bills: HSB 101, SSB 1080, SSB 1100
HSB 15 – Home Improvement Contractors. Would require any contractor, prior to entering into a home improvement contract in Iowa, to file with the Division of Labor Services of the Department of Workforce Development a $75,000 surety bond. The bond would be for the benefit of any person damaged by the contractor's breach of contract or a violation of the law, regardless of whether the person has a direct cause of action. Any person so damaged may bring suit directly on the bond without assignment, and may recover from bond proceeds actual damages, court costs, and reasonable attorney fees. The attorney general may make a direct claim on the bond or bring an action in equity on behalf of the state to recover bond proceeds for persons suffering damage. Priority for payment shall be based on the time of filing a notice with the Division, except that any claim or action by the attorney general shall take precedence over all other claims on the bond.
Status: 1/29/19: (H) in Commerce; subcommittee meeting: 1/30/19
HSB 22 – Guardianships and Conservatorships. Would revise the cases in which a court could waive the bond requirement for a conservator by eliminating the option to waive the bond for conservatorships with assets of less than $25,000. The bond could only be waived for financial institutions with Iowa trust powers or if the conservator provides an alternate form of protecting the assets that the court approves. Existing law permits an individual's will to waive the bond requirement.
Status: 2/26/19: (H) from Judiciary Committee recommending amendment and passage
Related Bill: SSB 1018
HSB 101 – Sports Betting. Would authorize gambling companies to conduct sports betting in the state. The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations.
Status: 1/31/19: (H) in State Government; subcommittee meeting on 2/7/19
Related Bills: HSB 124, SSB 1080, SSB 1100
HSB 124 – Sports Betting. Would authorize gambling companies to conduct sports betting in the state. The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations.
Status: 2/5/19: (H) in State Government; subcommittee meeting on 2/7/19
Related Bills: HSB 101, SSB 1080, SSB 1100
HSB 227 – Dog Breeders. Would require commercial dog breeders to provide a surety bond or other security to secure the costs of care for dogs that are seized and impounded by the Department for failure to take proper care of the animals. The financial responsibility would have to be in an amount based on the number of dogs that the breeder has, ranging from $5,000 to $50,000.
Status: 3/7/19: (H) committee report, recommending passage
SF 28 – Scholarship Programs. Would establish a scholarship program to provide assistance to students attending non-public schools. The director of the Department of Management would be authorized to procure insurance against any loss in connection with the assets of the scholarship fund or require a surety bond.
Status: 1/17/19: (S) in Education; subcommittee assignments: Cournoyer, Quirmbach and Zaun
SF 142 – Fidelity Bonds; Background Checks. Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made. The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.
Status: 2/5/19: (S) in Labor and Business Relations; subcommittee assignments: Schultz, Bisignano and Koelker
Related Bills: HF 64, HF 163
SF 268 (SSB 1072) – Travel Trailer Dealers. Would increase the amount of the bond required for travel trailer dealers from $25,000 to $75,000.
Status: 2/14/19: (S) introduced, placed on calendar; Judiciary Committee Report, approving bill.
Related Bill: HF 391
SF 361 – Wind Energy Facilities - Decommissioning. Would establish requirements for siting and operating wind energy conversion facilities. The owner of the proposed facility would have to file a decommissioning plan with the county and any applicable cities where the proposed facility will be located, along with a bond or irrevocable letter of credit in an amount sufficient to cover the costs of removal of the facility. Public utilities would be exempt from this requirement.
Status: 2/27/19: (S) in Commerce: Passed subcommittee with amendment.
SF 366 – Sports Betting. Would authorize gambling companies to conduct sports betting in the state. The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations.
Status: 2/26/19: (S) in Ways and Means. Subcommittee assignments.
Related Bills: HF 648, HSB 101, HSB 124, SSB 1080, SSB 1100
SF 372 – Scholarship Programs. Would establish a scholarship program to provide assistance to students attending nonpublic schools. The director of the Department of Management would be authorized to procure insurance against any loss in connection with the assets of the scholarship fund or require a surety bond.
Status: 3/7/19: (S) reported out of committee as SF 547
Related Bill: SF 28
SF 390 – Fidelity Bonds; Background Checks. Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made. The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.
Status: 3/5/19: (S) subcommittee recommends amendment and passage
Related Bills: HF 64, HF 163, HF 472, SF 142
SF 424 – Guardianships and Conservatorships. Would revise the cases in which a court could waive the bond requirement for a conservator by eliminating the option to waive the bond for conservatorships with assets of less than $25,000. The bond could only be waived for financial institutions with Iowa trust powers or if the conservator provides an alternate form of protecting the assets that the court approves. Existing law permits an individual's will to waive the bond requirement.
Status: 3/11/19: (S) Fiscal Note
Related Bills: HSB 22, SSB 1018
SF 435 – Travel Trailer Dealers. Would eliminate an exemption for motor vehicle manufacturers, distributors, wholesalers, and dealers from the existing law's requirement for travel trailer dealers to post a $25,000 bond. The bill would also expand the existing law's licensing and bond requirements for travel trailer dealers to apply to all towable recreational vehicle dealers.
Status: 2/28/19: (S) introduced; formerly SSB 1080
SF 456 – Home Improvement Contractors. Would require any contractor, prior to entering into a home improvement contract in Iowa, to file with the Division of Labor Services of the Department of Workforce Development a $75,000 surety bond. The bond would be for the benefit of any person damaged by the contractor's breach of contract or a violation of the law, regardless of whether the person has a direct cause of action. Any person so damaged may bring suit directly on the bond without assignment, and may recover from bond proceeds actual damages, court costs, and reasonable attorney fees. The attorney general may make a direct claim on the bond or bring an action in equity on behalf of the state to recover bond proceeds for persons suffering damage. Priority for payment shall be based on the time of filing a notice with the Division, except that any claim or action by the attorney general shall take precedence over all other claims on the bond.
Status: 3/4/19: (S) introduced, referred to Judiciary; subcommittee assignments
Related Bill: SSB 1097
SF 547 – Scholarship Programs. Would establish a scholarship program to provide assistance to students attending non-public schools. The director of the Department of Management would be authorized to procure insurance against any loss in connection with the assets of the scholarship fund or require a surety bond.
Status: 3/13/19: (S) in Appropriations; subcommittee assignments
Related Bill: SF 28
SSB 1018 – Guardianships and Conservatorships. Would revise the cases in which a court could waive the bond requirement for a conservator by eliminating the option to waive the bond for conservatorships with assets of less than $25,000. The bond could only be waived for financial institutions with Iowa trust powers or if the conservator provides an alternate form of protecting the assets that the court approves. Existing law permits an individual's will to waive the bond requirement.
Status: 2/21/19: (S) in Judiciary; subcommittee recommends passage
Related Bill: HSB 22
SSB 1020 – Public Officials. Would create the Insurance Fraud Bureau Special Fund and require the state treasurer to post an additional bond to secure the faithful performance of his/her duties in connection with the fund. The Governor would determine the amount of the bond required.
Status: 1/23/19: (S) in Commerce; subcommittee assignments: Chapman, Bolkcom and Brown
SSB 1080 – Sports Betting. Would authorize gambling companies to conduct sports betting in the state. The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations.
Status: 1/31/19: (H) in State Government; subcommittee meeting on 2/6/19
Related Bills: HSB 101, HSB 124, SSB 1100
SSB 1097 – Home Improvement Contractors. Would require any contractor, prior to entering into a home improvement contract in Iowa, to file with the Division of Labor Services of the Department of Workforce Development a $75,000 surety bond. The bond would be for the benefit of any person damaged by the contractor's breach of contract or a violation of the law, regardless of whether the person has a direct cause of action. Any person so damaged may bring suit directly on the bond without assignment, and may recover from bond proceeds actual damages, court costs, and reasonable attorney fees. The attorney general may make a direct claim on the bond or bring an action in equity on behalf of the state to recover bond proceeds for persons suffering damage. Priority for payment shall be based on the time of filing a notice with the Division, except that any claim or action by the attorney general shall take precedence over all other claims on the bond.
Status: 2/4/19: (S) in Judiciary; subcommittee assignments: Chapman, Hogg and Schultz
Related Bill: HSB 15
SSB 1100 – Sports Betting. Would authorize gambling companies to conduct sports betting in the state. The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations.
Status: 2/4/19: (H) in State Government; subcommittee meeting on 2/6/19
Related Bills: HSB 101, HSB 124, SSB 1080
SSB 1105 – Small Loan Lenders. Would require small dollar installment loan lenders to be licensed and post a $25,000 surety bond. The bond would be conditioned upon the licensee's compliance with the applicable law, the faithful performance by the licensee of the duties and obligations for its business, and the prompt payment of any judgment recovered against the licensee.
Status: 2/5/19: (S) in Ways and Means; subcommittee assignments: Feenstra, Dawson and Jochum
SSB 1180 – Travel Trailer Dealers. Would eliminate an exemption for motor vehicle manufacturers, distributors, wholesalers, and dealers from the existing law's requirement for travel trailer dealers to post a $25,000 bond. The bill would also expand the existing law's licensing and bond requirements for travel trailer dealers to apply to all towable recreational vehicle dealers.
Status: 2/21/19: (S) in Transportation. Subcommittee recommends passage
CONTRACT SURETY
HSB 2 – Construction Manager; Design-Build. Would allow state and local governments, other than the Department of Transportation, to use the design‑build or construction manager at‑risk procurement methods for public buildings, infrastructure, and facility projects. For design‑build contracts, the request for proposals would have to contain requirements for performance and payment bonds and insurance, as well as any available ratings for them. Bid security would be required to be furnished with the design‑build proposal.
Status: 2/11/19: (H) subcommittee meeting held
HF 28 – Prevailing Wage. Would require the payment of prevailing wages on public improvement projects exceeding $25,000. The bill would impose penalties for any extra project costs on sureties resulting from the contractor's or subcontractor's failure to comply with the wage requirements. The performance bond would have to secure payment of the wages. The bill also provides for contract termination, debarment, and financial penalties on contractors and subcontractors for violations of the prevailing wage requirements. Workers would be given a private right of action against the contractor or subcontractor.
Status: 1/22/19: (H) in Labor. Subcommittee assigned: Grassley, Dolecheck and Hunter
SSB 1213 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds. Would allow state and local governments, other than the Department of Transportation, to use the design-build or construction manager at-risk procurement methods for public buildings, infrastructure, and facility projects. For design-build contracts, the request for proposals would have to contain requirements for performance and payment bonds and insurance, as well as any available ratings for them. Bid security would be required to be furnished with the design-build proposal.
Status: 2/27/19: (S) in State Government; Subcommittee meeting
Related Bill: HSB 2
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
KANSAS – KS Legislature | Session Dates: 1/14/19 – 5/31/19
COMMERCIAL SURETY
HB 2101 – Credit Union Boards of Directors. Would eliminate the authority for a credit union's board of directors to acquire surety bonds. Instead, the board would be authorized to purchase adequate fidelity and insurance coverage for officers, directors, committee members and employees, and for losses caused by persons outside the credit union for which the credit union would be liable.
Status: 3/14/19: (S) in Financial Institutions and Insurance; hearing held
HB 2163 – Medical Marijuana Growers, Distributors and Dispensaries. Would require medical cannabis grower-distributors to be licensed and post a surety bond in an amount that the Cannabis Regulatory Commission (Commission) would determine through regulations. The Commission would determine the bond amount based on the size and actual and projected yield of the medical cannabis grower-distributor operations, the number of facilities that the licensee operates by the medical cannabis grower-distributor and any other factor that the Commission determines necessary. The bill also would require medical cannabis dispensaries to be licensed and post a surety bond in an amount that the Kansas Department of Agriculture will determine based on the size and actual and projected amounts of inventory that the licensee holds and sells and the number of facilities that the licensee operates.
Status: 2/6/19: (H) introduced, referred to Health and Human Services
Related Bill: SB 113
HB 2301 – Scholarship Programs. Would create a scholarship program as part of a school choice measure. The bill provides that scholarship organizations receiving more than $50,000 in funds from this program during the school year and scholarship granting organizations that provide other nonprofit services would have to post a surety bond in an amount equal to the funds expected to be received during the school year or provide financial information demonstrating that the organization can repay the funds.
Status: 2/13/19: (H) introduced, referred to Taxation
SB 113 – Medical Marijuana Growers, Distributors and Dispensaries. Would require medical cannabis grower-distributors to be licensed and post a surety bond in an amount that the Cannabis Regulatory Commission (Commission) would determine through regulations. The Commission would determine the bond amount based on the size and actual and projected yield of the medical cannabis grower-distributor operations, the number of facilities that the licensee operates by the medical cannabis grower-distributor and any other factor that the Commission determines necessary. The bill also would require medical cannabis dispensaries to be licensed and post a surety bond in an amount that the Kansas Department of Agriculture will determine based on the size and actual and projected amounts of inventory that the licensee holds and sells and the number of facilities that the licensee operates.
Status: 3/15/19: (S) in Public Health and Welfare; hearing continued
Related Bill: HB 2163
SB 168 – Home Inspectors. Would require home inspectors to demonstrate their financial responsibility by furnishing a surety bond or other security for not less than $10,000. The bond would be conditioned upon the licensee faithfully performing all contracts that he or she entered into and compliance with all applicable laws and regulations. The surety's aggregate liability would be limited to the bond amount, regardless of the number of claims made against the bond or the number of years that the bond is in force.
Status: 2/26/19: (S) withdrawn from Ways and Means; referred to Commerce
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 12 – Sports Wagering. Adds sports wagering to the existing licensing and bonding requirements.
Status: 1/10/19: (H) to Appropriations & Revenue
HB 90 – Ban the Box - Barriers to Employment for Persons with Past Criminal Records. Would prohibit employers from considering or requiring disclosure of prior criminal history as part of the initial job application; title the act "Ban the Box - The Criminal Record Employment Discrimination Act".
Status: 1/10/19: (H) to Economic Development & Workforce Investment
HB 199 – Oil and Gas Wells. Would change the required bonding amounts for oil and gas wells. The bill would eliminate the current amounts required for individual shallow wells to secure plugging them, which is based on depth and ranges from $500 to $8,000. For new permits, the bill provides that the bond would have to be for $2 per foot of true vertical well depth. The bill also would eliminate the different blanket bond amounts for qualified and nonqualified shallow well operators. Currently, the blanket bond for qualified shallow well operators must be in amount ranging from $10,000 to $100,000 based on the number of wells that are covered. For nonqualified well operators, the bond amount ranges from $50,000 to $100,000 based on the number of wells covered. For all shallow wells, the blanket bond would have to be in amount ranging from $20,000 to $100,000 based on the number of wells covered. The bill would establish procedures for well operators to adjust their bonds to meet the requirements set forth in the bill.
Status: 3/6/19: (H) delivered to the Governor
HB 285 – Consumer Loan Companies. Would require consumer loan companies to post a license bond or other security for $100,000 if the licensee is privately held and for $250,000 if the license is publicly traded. The bond would secure the recovery of expenses, fines, and fees levied or imposed against the licensee, and for losses or damages that the Commissioner determines are incurred by any customer as a result of the licensee's failure to comply with the requirements of the law. The bill would limit the surety's aggregate liability to the bond amount.
Status: 3/14/19: (H) concurred in Senate committee substitute; delivered to the Governor
HB 386 – Insurance Innovation. Would create an application process for admitting companies to the regulatory sandbox to permit the company to beta test an insurance innovation under a limited no-action letter. The bill would require companies seeking entry into a sandbox to provide a statement that the company has at least $25,000 available to guarantee its financial stability. The company could meet this requirement by posting a surety bond or other security.
Status: 3/14/19: (H) concurred in Senate committee substitute; delivered to the Governor
SB 23 – Sports Wagering. Adds sports wagering to the existing licensing and bonding requirements.
Status: 1/9/19: (S) to Appropriations & Revenue
NEW LAW: SB 32 – Water Well Drillers. Would establish certification requirements for water well driller assistants. An assistant would be allowed to work under the surety bond of the supervising certified water well driller, or must provide proof that the assistant has obtained their own bond and insurance. Current law requires water well drillers to post a $5,000 bond and maintain a liability insurance policy.
Status: 3/11/19: signed by the Governor; effective 90 days after adjournment
SB 114 – Notaries Public. Would revise the current law for notaries public to require them to post a $1,000 surety bond in connection with obtaining a commission from the Secretary of State. The bond would cover acts performed during the notary public's commission.
Status: 3/13/19: (S) delivered to the Governor
SB 153 – Grain Dealers and Grain Warehouses. Would revise the amount of the bond required for grain dealers and grain warehouse operators. Current law requires warehouse operators to post a bond for 25-cents per bushel of the total maximum bushel capacity of the warehouse, or $25,000, whichever is greater. The maximum bond amount is $1 million. The bill would require the bond for grain warehouse operators to be equal to 10% of the aggregate dollar value of the grain deposited in the grain warehouse operator's most recently completed fiscal year; or the amount of grain estimated to be deposited in the operator's warehouse during the current fiscal year if no records of the previous year are available. The minimum bond amount would be $50,000 and the maximum bond amount would be $1 million. The bill would increase the minimum bond amount for grain dealers from $25,000 to $50,000.
Status: 3/13/19: (S) delivered to the Governor
SB 194 – Notaries Public. Would require a notary public to post a $1,000 bond conditioned on the faithful performance of their duties and to cover their acts during the term of their commission.
Status: 2/15/19: (S) to Judiciary
CONTRACT SURETY
HB 349 – Performance Bonds. Would require contractors and subcontractors performing on public works projects that exceed $1 million to have an apprenticeship program. The bill provides that the contractor's performance bond for the project would be conditioned on having an apprenticeship program in compliance with the bill's requirements.
Status: 2/14/19: (H) to Appropriations and Revenue
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact
CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 389 – Professional Licensure and Certification. Would require each professional licensing and certification board to work with the Attorney General to review its rules and procedures and to survey its licensees and certificate holders and license and certification applicants to research barriers to obtaining them, including existing deficiencies in reciprocity provisions. Each board would have to provide a report on their findings and any proposed alterations to its rules and procedures.
Status: 1/31/19: (S) referred to Innovation, Development, Economic Advancement and Business in concurrence with House
CONTRACT SURETY
HB 636 – Retainage. Would cap retainage for private construction contracts at not more than 5% of the contract price, pending completion of the contractor's or subcontractor's performance.
Status: 2/14/19: referred to Joint Committee on Innovation, Development, Economic Advancement and Business
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
MARYLAND – MD General Assembly | Session Dates: 1/9/19 – 4/8/19
COMMERCIAL SURETY
HB 476 – Credit Repair Businesses. Would require credit repair businesses to be licensed and to meet the surety bond requirements in the existing financial institutions law. The bill would require the bond to be in an amount equal to 100 times the standard fee that the business charges; $50,000 minimum, $75,000 maximum. Direct actions against the bond would be permitted, but the surety's liability would be limited to the bond amount.
Status: 3/6/19: (H) in Economic Matters; hearing held
Related Bill: SB 873
HB 765 – Right-of-Way Permits. Would require a project owner for a transportation project for railroad using a magnetic levitation propulsion system to provide to each governing body of an affected county a bond in connection with obtaining access to the state-owned right of way and state-owned property. The affected counties would determine the bond amount. The bond would be conditioned on the project owner covering any future liability for damage to land or infrastructure and damages related to the project's failure.
Status: 2/28/19: (H) in Environment and Transportation; hearing held
Related Bill: SB 914
HB 1020 – Wireless Facilities. Would authorize a wireless provider to install and maintain wireless facilities and poles in a public right-of-way in accordance with any applicable requirements from a state or local authority. The bill would allow state and local governments to require the provider to post a surety bond to secure the removal of abandoned or improperly maintained wireless facilities or poles, including those that the authority determines need to be removed to protect public health, safety, or welfare and restore the right-of-way. The bond also would secure the recoupment of unpaid rates or fees that the provider owes. The provider would have to be given reasonable notice and the opportunity to pay the rates or fees first.
Status: 3/11/19: (H) referred to interim study by Economic Matters
Related Bill: SB 713
HB 1065 – Receivership. Would adopt the Uniform Commercial Receivership Act, which provides that the court would be authorized to require a receiver to post a bond or other security. The court also could authorize a receiver to act without posting a bond or other security or to act prior to posting it. The bond or other security would be conditioned on the faithful performance of the receiver's duties. The court would determine the amount required.
Status: 2/14/19: (H) in Economic Matters; hearing cancelled and rescheduled for 3/13/19
Related Bill: SB 695
SB 22 – Third Party Administrators. Would subject third party administrators (TPAs) for life insurance plans to the existing law for TPAs for all insurance benefit plans. Current law requires a bond in an amount equal to 10% of the average amount of money that the TPA handles at any one time for all plans administered; $5,000 minimum, $500,000 maximum.
Status: 2/26/19: (H) in Economic Matters; scheduled for hearing on 3/14/19
SB 695 – Receivership. Would adopt the Uniform Commercial Receivership Act, which provides that the court would be authorized to require a receiver to post a bond or other security. The court also could authorize a receiver to act without posting a bond or other security or to act prior to posting it. The bond or other security would be conditioned on the faithful performance of the receiver's duties. The court would determine the amount required.
Status: 3/14/19: (H) first reading Economic Matters
Related Bill: HB 1065
SB 713 – Wireless Facilities. Would authorize a wireless provider to install and maintain wireless facilities and poles in a public right-of-way in accordance with any applicable requirements from a state or local authority. The bill would allow state and local governments to require the provider to post a surety bond to secure the removal of abandoned or improperly maintained wireless facilities or poles, including those that the authority determines need to be removed to protect public health, safety, or welfare and restore the right-of-way. The bond also would secure the recoupment of unpaid rates or fees that the provider owes. The provider would have to be given reasonable notice and the opportunity to pay the rates or fees first.
Status: 2/6/19: (S) in Finance; hearing scheduled for 2/26/19
SB 873 – Credit Repair Businesses. Would require credit repair businesses to be licensed and to meet the surety bond requirements in the existing financial institutions law. The bill would require the bond to be in an amount equal to 100 times the standard fee that the business charges; $50,000 minimum, $75,000 maximum. Direct actions against the bond would be permitted, but the surety's liability would be limited to the bond amount.
Status: 3/4/19: (S) reassigned to Finance; hearing scheduled for 3/20/19
Related Bill: HB 476
SB 914 – Right-of-Way Permits. Would require a project owner for a transportation project for railroad using a magnetic levitation propulsion system to provide to each governing body of an affected county a bond in connection with obtaining access to the state-owned right of way and state-owned property. The affected counties would determine the bond amount. The bond would be conditioned on the project owner covering any future liability for damage to land or infrastructure and damages related to the project's failure.
Status: 2/14/19: (S) introduced and referred to Rules
Related Bill: HB 765
SB 937 – Wireless Facilities. Would allow a state or local government to enter into agreements with a wireless infrastructure provider for the construction of small wireless facilities. The state or local government could set requirements for surety bond requirements in connection with a provider obtaining a permit for a small wireless facility. The bond amount cannot exceed $200 per facility and also could not exceed $10,000 for all facilities. The bond would have to secure the removal of an abandoned or improperly maintained facility, restoration of the right-of-way following removal of the facility, or the recoupment of rates or fees that a provider has not paid in over 12 months, so long as the provider has received reasonable notice of any of the non-compliance and an opportunity to pay the amount owed.
Status: 2/22/19: (S) re-referred to Finance; hearing scheduled for 2/26/19
Related Bill: HB 654
CONTRACT SURETY
HB 524 – Payment and/or Performance Bonds; Prevailing Wage. Would revise the existing law for filing a suit for prevailing wage violations to allow an employee under a public work contract who is paid less than the prevailing wage rate for that employee's classification for the work performed to sue to recover the difference between the prevailing wage rate and the amount received by the employee. Under existing law, the bonds on public work contracts must guarantee the faithful performance of the prevailing wage rate clause of the public work contract. Under existing law, employees are required to file wage complaints with the Commissioner, who investigates and makes a determination on the complaint regarding the restitution due to the employee. The bill provides that if the Commissioner makes a determination that a contractor is required to make restitution to an employee, it would not preclude an employee from filing a suit in court. The bill provides that the contractor and the subcontractor would be jointly and severally liable for any violation of the subcontractor's obligations under the prevailing wage law.
Status: 3/8/19: (S) first reading; referred to Finance
HB 1257 – P3s. Would establish an Office of Transportation Oversight (Office) for overseeing transportation P3 projects. Existing law requires bonding for the construction portion of these P3 projects. Of note, the bill would grant broad authority to the Office, including adopting regulations, requiring modifications to contracts, work orders, or designs to protect and serve the public and conserve or restore its natural resources. The Office would be authorized to apply legal and equitable remedies to enforce any relevant law, contract, or mitigation commitment, and the regulation of fares and services related to a P3 agreement. The Office also would be granted authority to inspect, investigate, or monitor any issues regarding the operation or implementation of a P3 agreement. The Office could bring an action against a party to a P3 agreement, or contractors, agents, or entities acting under the P3 agreement as a result of a violation of the agreement, any related mitigation commitment, law, or regulation. On or before November 1, 2019, all work associated with a P3 agreement for the planning or construction of new rail-based transportation modes or new state or federal highways would have to be placed on hold while the Director of the Office reviews the P3 agreement for compliance with the law.
Status: 2/11/19: (H) in Environment and Transportation; hearing scheduled for 2/26/19
SB 300 – Payment and/or Performance Bonds; Prevailing Wage. Would revise the existing law for filing a suit for prevailing wage violations to allow an employee under a public work contract who is paid less than the prevailing wage rate for that employee's classification for the work performed to sue to recover the difference between the prevailing wage rate and the amount received by the employee. Under existing law, the bonds on public work contracts must guarantee the faithful performance of the prevailing wage rate clause of the public work contract. Under existing law, employees are required to file wage complaints with the Commissioner, who investigates and makes a determination on the complaint regarding the restitution due to the employee. The bill provides that if the Commissioner makes a determination that a contractor is required to make restitution to an employee, it would not preclude an employee from filing a suit in court. The bill provides that the contractor and the subcontractor would be jointly and severally liable for any violation of the subcontractor's obligations under the prevailing wage law.
Status: 3/8/19: (S) received from House - passed
SB 931 – P3s. Would establish an Office of Transportation Oversight (Office) for overseeing transportation P3 projects. Existing law requires bonding for the construction portion of these P3 projects. Of note, the bill would grant broad authority to the Office, including adopting regulations, requiring modifications to contracts, work orders, or designs to protect and serve the public and conserve or restore its natural resources. The Office would be authorized to apply legal and equitable remedies to enforce any relevant law, contract, or mitigation commitment, and the regulation of fares and services related to a P3 agreement. The Office also would be granted authority to inspect, investigate, or monitor any issues regarding the operation or implementation of a P3 agreement. The Office could bring an action against a party to a P3 agreement, or contractors, agents, or entities acting under the P3 agreement as a result of a violation of the agreement, any related mitigation commitment, law, or regulation. On or before November 1, 2019, all work associated with a P3 agreement for the planning or construction of new rail-based transportation modes or new state or federal highways would have to be placed on hold while the Director of the Office reviews the P3 agreement for compliance with the law.
Status: 2/22/19: (S) in Budget and Taxation; public hearing: 3/13/19
Related Bill: HB 1257
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 928 – Rate and Form Filings. Would exempt specialty commercial lines of insurance from the existing law's rate and form filing requirements, including surety and fidelity. Insurers would have to maintain underwriting files, premium, loss and expense statistics, financial and other records regarding the lines of business that are exempt.
Status: 1/22/19: referred to Joint Committee on Financial Services
HB 1073 – Debt Management Services Providers. Would require debt management services providers to be licensed and post a surety bond in an amount that the Commissioner of Banks will determine.
Status: 1/22/19: referred to Joint Committee on Financial Services
HB 1114 – Appraisal Management Companies. Would require real estate appraisal management companies to be licensed and post a surety bond in an amount that the Board of Real Estate Appraisers would determine. The bond would secure the company's faithful performance of its obligations under the proposed law. The bill would permit direct actions on the bond, but the surety's aggregate liability would not exceed the principal sum of the bond. A deposit of cash or security would be accepted in lieu of the surety bond.
Status: 1/22/19: referred to Joint Committee on Financial Services
CONTRACT SURETY
HB 74 – Bid Bonds; Performance Bonds. Would authorize the use of job order contracts for maintenance, repair, alteration and conversion projects for public agencies for contracts up to $150,000. The bill provides that the bid deposit amount would be $5,000 and the amounts of surety bonds required by the contract could be satisfied for each particular job order before the commencement of any work.
Status: 2/27/19: (H) Ways and Means reported, in part, by substitution of new draft; see HB 3505
HB 231 – Payment and/or Performance Bonds. Would revise the existing law concerning home improvement contractors to exempt them from the deposit requirements if the contractor furnishes a performance and payment bond, a lien and/or completion bond, or a bond equivalent that the director of Consumer Affairs and Business Regulation approved covering a minimum of $2 million. Under current law, any deposit required under the contract to be paid in advance of the commencement of work is prohibited from exceeding the greater of one-third of the total contract price or the actual cost of any materials or equipment that are a special order or custom made and must be ordered prior to commencement of the work.
Status: 3/1/19: referred to Joint Committee on Consumer Protection and Professional Licensure
HB 2773 – Construction Managers; Payment and/or Performance Bonds. Would revise the existing law concerning construction managers at risk (CM at risk) to allow them to obtain a subcontractor default insurance policy (CDI) in lieu of the current requirement for trade contractors working for a CM at risk to provide a 100% payment and performance bond. The CM at risk still would have to provide 100% payment and performance bonds to the public owner as required under existing law.
Status: 3/4/19: (H) filed as House Docket 3258
HB 3099 – P3s; Payment and/or Performance Bonds. Would authorize the Department of Transportation to use P3s for transportation facility projects. The DOT would have to ensure that the procurement documents for the P3 include provisions for performance of the private entity and payment of subcontractors, which could include surety bonds letters of credit, parent company guarantees, and lender and equity partner guarantees. The DOT would have to balance the structure of the security package for the P3 that ensures performance and payment of subcontractors with the cost of the security to ensure the most efficient pricing.
Status: 3/4/19: (H) filed as House Docket 2562
SB 1913 – P3s; Payment and/or Performance Bonds. Would authorize municipalities, a redevelopment authority, or a fire, water, sewer, or water pollution abatement district to enter into P3s for the construction of buildings and facilities used for public water supply or treatment, storm water treatment and disposal, waste water treatment and disposal, or flood control. The comprehensive agreement contract would have to provide for the delivery of maintenance, performance and payment bonds or letters of credit, or other security for the selected offeror's obligations under the P3 agreement for the eligible project, in the forms and amounts satisfactory to the public agency. The bill would authorize the public agency may make or cause to be made any claims under the required bonds or letters of credit.
Status: 3/1/19: to Joint Committee on State Administration and Regulatory Oversight
SB 2181 – Payment and/or Performance Bonds. Would authorize the use of job order contracts for maintenance, repair, alteration and conversion projects for public agencies for contracts up to $150,000. The bill provides that the bid deposit amount would be $5,000 and the amounts of surety bonds required by the contract could be satisfied for each particular job order before the commencement of any work.
Status: 3/4/19: Introduced; recommended new text of HB 3506
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 40 – Occupational Regulations. Would establish procedures for determining whether an occupational regulation is the least restrictive form of regulation to protect consumers. The Michigan Law Review Commission would be charged with reviewing new legislation that proposes to create or amend an occupational regulation to determine whether it would meet this standard. Bonding or insurance would be considered among the more restrictive forms of regulation. There is a rebuttable presumption that market competition and private remedies are sufficient to protect consumers. The Commission would also have to review 20% of existing occupational regulations annually to create a 5-year review process to review all such regulations. The Commission would have to report annually with recommendations for legislation that either repeals an occupational regulation, converts it to a less restrictive form, or instructs the relevant licensing board or agency to revise the regulations to implement a less restrictive regulation. The bill is based on the ALEC model act.
Status: 1/22/19: (S) introduced; referred to Regulatory Reform
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HF 465 – Recreational Marijuana. Would authorize the sale and use of recreational marijuana. Cannabis establishments would be required to be licensed and to post a bond, cash, or U.S. Bonds in an amount of at least $10,000. The commissioner of the Bureau of Cannabis Oversight would determine the bond amount, based on the licensee's financial statement and any other factors the commissioner deems relevant to the public interest. The bond would be conditioned on compliance with applicable laws and the payment of all taxes, fees, penalties, and other charges when due. Cannabis testing facilities would be exempt from the bond requirement.
Status: 3/4/19: (H) in Health and Human Services Policy; author added - Olson
HF 983 – Election Recounts. Would require candidates defeated in an election using ranked choice voting who request a recount to post a bond or other security in an amount that would secure the payment of the costs of the recount.
Status: 2/25/19: (H) in Government Operations, Subcommittee on Elections; author added - Hunt
HF 1541 – Child Care Providers. Would require child care providers to post a minimum $100,000 surety bond if they receive child care assistance program funds from the state in an amount exceeding $250,000 during the previous calendar year. The bill would require the bond to allow for recovery of costs and fees when filing a claim against the bond.
Status: 3/14/19: (H) in Early Childhood Finance and Policy Division; author added - Robbins
Related Bill: SF 1846
HF 1718 – Wholesale Drug Distributors. Would require wholesale drug distributors that are not government owned and operated to post a $100,000 license bond, unless the distributor has $10 million or less in annual gross receipts, in which case a $25,000 would be required. The bill provides that evidence of a bond being posted in another state would be accepted in lieu of posting a bond. The bond would secure the payment of civil penalties.
Status: 3/11/19: (H) in Commerce. Motion to recall and re-refer, motion prevailed - Health and Human Services Policy
HF 1851 – Fuel Distributors. Would repeal the bond required under existing law for fuel distributors and special fuel dealers. Current law requires distributors and dealers to post a bond in an amount that the Commissioner of Revenue determines that is conditioned on the payment of all taxes, fees, penalties, and interest. Distributors and dealers that meet the financial requirements in the law can obtain an exemption from the bond requirement.
Status: 2/28/19: (H) introduction and first reading, referred to Taxes
Related Bill: SF 1896
SF 4 – Medicaid - DMEPOS and Child Care Providers. Would revise the claim provisions for the bond required for durable medical equipment providers and suppliers participating in Medicaid to require the bond to allow for recovery of the entire value of the bond for up to five years from the date of submission of a claim for a medical assistance payment, if the enrolled provider violates the law or regulations, regardless of the amount of the actual loss. The bill would also require child care providers to post a surety bond for an initial authorization to receive child care assistance program funds from the State. The amount of the bond is not specified. The bond would only be required at the renewal of the provider's authorization if it received more than $100,000 in payments from the program in the previous calendar year. The bill provides that the bond would allow for recovery of costs and fees when filing a claim against the bond.
Status: 3/14/19: (S) Committee report: To pass as amended and re-refer to Judiciary and Public Safety Finance and Policy
SF 1846 – Child Care Providers. Would require child care providers to post a minimum $100,000 surety bond if they receive child care assistance program funds from the state in an amount exceeding $250,000 during the previous calendar year. The bill would require the bond to allow for recovery of costs and fees when filing a claim against the bond.
Status: 3/11/19: (S) withdrawn from Family Care and Aging and re-referred to Human Services Reform Finance and Policy
Related Bill: HF 1541
SF 1896 – Fuel Distributors. Would repeal the bond required under existing law for fuel distributors and special fuel dealers. Current law requires distributors and dealers to post a bond in an amount that the Commissioner of Revenue determines that is conditioned on the payment of all taxes, fees, penalties, and interest. Distributors and dealers that meet the financial requirements in the law can obtain an exemption from the bond requirement.
Status: 2/28/19: (S) introduction and first reading; referred to Taxes
Related Bill: HF 1851
CONTRACT SURETY
HF 878 – Retainage. Provides that the maximum retainage percentage allowed for a building and construction contract would be the retainage percentage withheld by the public agency or owner from the prime contractor. Under existing law, retainage for a building and construction contract cannot exceed 5%. An owner or owner's agent may reduce the amount of retainage and may eliminate retainage on any monthly contract payment if the owner believes that the work is progressing satisfactorily. The bill would prohibit withholding retainage for warranties or warranty work. The bill would require retainage to be released within 30 days of the completed improvement date. Retainage also would have to be held in an interest-bearing escrow account or trust account at a banking institution whose principal place of business is Minnesota.
Status: 3/11/19: (H) in Jobs and Economic Development Finance Division; author added
Related Bill: SF 947
SF 947 – Retainage. Provides that the maximum retainage percentage allowed for a building and construction contract would be the retainage percentage withheld by the public agency or owner from the prime contractor. Under existing law, retainage for a building and construction contract cannot exceed 5%. An owner or owner's agent may reduce the amount of retainage and may eliminate retainage on any monthly contract payment if the owner believes that the work is progressing satisfactorily. The bill would prohibit withholding retainage for warranties or warranty work. The bill would require retainage to be released within 30 days of the completed improvement date. Retainage also would have to be held in an interest-bearing escrow account or trust account at a banking institution whose principal place of business is Minnesota.
Status: 2/14/19: (S) withdrawn from Judiciary and Public Safety Finance and Policy and re-referred to Jobs and Economic Growth Finance and Policy
Related Bill: HF 878
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 777 – Notaries Public. Would revise the existing notary bond requirement to allow a notary to post other security that is the functional equivalent of the $5,000 bond. The bill would specify that the bond is conditioned to cover acts the notary performs during his or her commission term and that the surety could cancel the bond with 30 days' notice.
Status: 3/14/19: (S) Died on calendar
HB 1285 – Guardianships and Conservatorships. Would revise the existing bond requirement for guardians and conservators to permit the use of an alternative asset-protection agreement in lieu of the bond. Also, the court would be allowed to accept a deposit of collateral in lieu of the bond, such as securities or a mortgage of real property. Under existing law, the bond requirement may be waived in a will or if the assets of the estate are deposited in a financial institution. The bill would grant the court additional discretion to waive the bond requirement. The bill would also require the bond to be in an amount equal to the aggregate capital value of the conservatorship estate, plus one year's estimated income, less the value of property deposited under an arrangement requiring a court order for its removal and real property the conservator lacks power to sell or convey without specific court authorization. Current law does not specify the bond amount. The bill would permit direct actions on the bond.
Status: 3/5/19: (S) Died in committee
Related Bill: SB 2828
SB 2737 – Postsecondary Educational Institutions. Provides that the bond required under existing law for proprietary schools would have to cover the costs to reimburse the Commission for any actual administrative costs associated with a school ceasing operations. Under existing law, the bond indemnifies any person suffering a loss as the result of any false certification, school closure, any fraud or misrepresentation used in behalf of the principal in procuring such person's enrollment in a course of instruction, including the repayment of tuition paid in advance by any student. The bill provides that the first priority for the use of surety bonds shall be given to students impacted by the proprietary school closing.
Status: 3/13/19: (H) returned for enrolling
SB 2828 – Guardianships and Conservatorships. Would revise the existing bond requirement for guardians and conservators to permit the use of an alternative asset-protection agreement in lieu of the bond. Also, the court would be allowed to accept a deposit of collateral in lieu of the bond, such as securities or a mortgage of real property. Under existing law, the bond requirement may be waived in a will or if the assets of the estate are deposited in a financial institution. The bill would grant the court additional discretion to waive the bond requirement. The bill would also require the bond to be in an amount equal to the aggregate capital value of the conservatorship estate, plus one year's estimated income, less the value of property deposited under an arrangement requiring a court order for its removal and real property the conservator lacks power to sell or convey without specific court authorization. Current law does not specify the bond amount. The bill would permit direct actions on the bond.
Status: 3/14/19: (H) returned for concurrence
Related Bill: HB 1285
CONTRACT SURETY
HB 869 – Performance and/or Payment Bonds. Provides that performance and payment bonds may be required for contracts for private construction work. The bill mirrors the Little Miller Act with regard to surety qualifications and bond claim procedures. It provides that a payment bond provided for private work would be a substitution for the liens provided for a subcontractor or a materialman. The bill also provides that a copy of the bond for public and private work would have to be provided to the person requesting it within 30 days of receipt of the request. Failure to meet this timeframe would result in a liability for reasonable attorney fees and costs in any subsequent claims.
Status: 3/13/19: (H) sent to the Governor; due from Governor on 3/19/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 34 – Scholarship Programs. Would establish the Missouri Empowerment Scholarship Accounts Program to provide scholarship funds. Educational assistance organizations would have to post a surety bond or file financial information demonstrating their ability to repay the funds if they receive more than $50,000 in scholarship funds. The amount of the bond would have to be equal to the aggregate amount of scholarship funds expected to be received during the school year. Scholarship account holders also would have to post bonds.
Status: 1/10/19: (H) read second time
Related Bills: HB 478, SB 47 and SB 160
HB 103 – Public Officials. Would require the Commissioner of Administration to obtain a blanket bond or crime insurance policy instead of individual bonds for state-compensated employees in the judiciary. The Commissioner could require officers, employees, or agents of the state to post an individual bond if they have responsibility for or access to any of the state's money or property and are not otherwise required to post a bond. The bill would allow the Commissioner to assume the risk in lieu of obtaining bonds.
Status: 1/10/19: (H) read second time
HB 204 – Confiscated Animals. Would revise the bond amount required for owners or custodians of a confiscated animal. Currently, the bond or other security must be sufficient to provide for the animal's care and keeping for at least 30 days. The bill would require the bond or other security to be in an amount that is sufficient for the animal's care and keeping and that is consistent with the fair market costs of boarding the animal in an appropriate retail facility.
Status: 3/11/19: (S) reported to the Senate and first read
Related Bill: SB 115
HB 215 – Property Assessed Clean Energy (PACE) Program. Would revise existing law for the PACE program, which finances energy efficiency improvements or renewable energy improvements. Contractors participating in this program would have to maintain any permits, licenses, or registrations required to do business in the jurisdiction where it operates, and maintain bonding and insurance coverage in the minimum amounts determined by the Clean Energy Development Board, or any higher amounts that are required in the jurisdiction where the contractor is licensed or registered.
Status: 2/28/19: (H) HCS voted Do Pass
Related Bill: SB 173
HB 326 – Mechanical Contractors. Would enact the Missouri Statewide Mechanical Contractor Licensing Act and create the Office of Mechanical Contractors within the Division of Professional Regulation. The bill would require applicants for this license to provide proof of liability insurance in the amount of $500,000 and post a bond with each political subdivision in which work will be performed, as required by that political subdivision. Political subdivisions would not be prohibited from establishing their own local mechanical contractor's license, but would recognize a statewide license in lieu of a local license for the purposes of performing contracting work or obtaining permits to perform work within such political subdivision. The license term would be biennial.
Status: 3/13/19: (H) HCS reported Do Pass; referred to Rules - Administrative Oversight
HB 472 – Occupational Regulations. Would prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation requiring a license solely, or in part, due to a prior conviction for a crime, unless the crime directly relates to the duties and responsibilities of the licensed occupation. The bill would require State licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify an applicant from obtaining a license. State license authorities would be prohibited from using terms such as "moral turpitude" and "good character." They also could not consider an applicant's arrests without a conviction. The bill would allow a person with a criminal record to petition a licensing authority to determine whether the criminal record would disqualify the person from obtaining the license.
Status: 3/13/19: (H) HCS adopted; perfected with amendments
Related Bills: HB 564, SB 251
HB 478 – Scholarship Programs. Would establish the Missouri Empowerment Scholarship Accounts Program to provide scholarship funds. Educational assistance organizations would have to post a surety bond or file financial information demonstrating their ability to repay the funds if they receive more than $50,000 in scholarship funds. The amount of the bond would have to be equal to the aggregate amount of scholarship funds expected to be received during the school year. Scholarship account holders also would have to post bonds.
Status: 2/25/19: (H) reported Do Pass
Related Bills: HB 34, SB 47 and SB 160
HB 495 – Notaries Public. Would revise the existing law's bond requirement for notaries public to require the surety to report all claims to the Secretary of State. The bill provides that the surety's liability only would be for damages that result from the notary's negligence, intentional violation of law, or official misconduct in relation to a notarization during the bond term. The surety's aggregate liability would be limited to the bond amount.
Status: 3/6/19: (H) to Rules - Administrative Oversight
Related Bill: SB 140
HB 519 – Litigation Financiers. Would require litigation financiers to register and post a $50,000 surety bond. Such businesses provide a non-recourse transaction in which financing is provided to a consumer in return for assigning a contingent right to the financier to receive an amount of the potential proceeds of the consumer's judgment, award, settlement, or verdict obtained with respect to the consumer's legal claim.
Status: 3/13/19: (H) HCS reported Do Pass; referred to Rules - Administrative Oversight
HB 550 – Consumer Legal Funding Companies. Would require consumer legal funding companies to register, and they could be required to post a $50,000 surety bond or letter of credit. Such businesses provide a non-recourse transaction in which financing is provided to a consumer in return for assigning a contingent right to receive an amount of the potential proceeds of the consumer's judgment, award, settlement, or verdict from the consumer's legal claim.
Status: 2/19/19: (H) in Judiciary; public hearing completed
HB 564 – Occupational Regulations. Would prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation requiring a license solely, or in part, due to a prior conviction for a crime, unless the crime directly relates to the duties and responsibilities of the licensed occupation. The bill would require State licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify an applicant from obtaining a license. State license authorities would be prohibited from using terms such as "moral turpitude" and "good character." They also could not consider an applicant's arrests without a conviction. The bill would allow a person with a criminal record to petition a licensing authority to determine whether the criminal record would disqualify the person from obtaining the license.
Status: 3/14/19: (S) reported to the Senate and first read
Related Bill: SB 251
HB 626 – Leasing and Rental Companies. Would require a leasing or rental company for motor vehicles, trailers, boats, or outboard motors to post a $100,000 bond or letter of credit. The bond would be conditioned on compliance with the applicable laws, and it would have to indemnify persons for any loss sustained due to the licensee's acts when these acts constitute grounds for the suspension or revocation of the license. The surety's aggregate liability would be limited to the bond amount.
Status: 3/12/19: (H) reported Do Pass
SB 115 – Confiscated Animals. Would revise the bond amount required for owners or custodians of a confiscated animal. Currently, the bond or other security must be sufficient to provide for the animal's care and keeping for at least 30 days. The bill would require the bond or other security to be in an amount that is sufficient for the animal's care and keeping and that is consistent with the fair market costs of boarding the animal in an appropriate retail facility.
Status: 2/25/19: (S) voted Do Pass by Agriculture, Food Production and Outdoor Resources
Related Bill: HB 204
SB 140 – Notaries Public. Would revise the existing law's bond requirement for notaries public to require the surety to report all claims to the Secretary of State. The bill provides that the surety's liability only would be for damages that result from the notary's negligence, intentional violation of law, or official misconduct in relation to a notarization during the bond term. The surety's aggregate liability would be limited to the bond amount.
Status: 2/19/19: (S) hearing conducted in General Laws
Related Bill: HB 495
SB 160 – Scholarship Programs. Would establish the Missouri Empowerment Scholarship Accounts Program to provide scholarship funds. Educational assistance organizations would have to post a surety bond or file financial information demonstrating their ability to repay the funds if they receive more than $50,000 in scholarship funds. The amount of the bond would have to be equal to the aggregate amount of scholarship funds expected to be received during the school year. Scholarship account holders also would have to post bonds.
Status: 3/20/19: (S) Informal Calendar - Senate Bills for Perfection
Related Bills: HB 34, HB 478 and SB 47
SB 173 – Property Assessed Clean Energy (PACE) Program. Would revise existing law for the PACE program, which finances energy efficiency improvements or renewable energy improvements. Contractors participating in this program would have to maintain any permits, licenses, or registrations required to do business in the jurisdiction where it operates, and maintain bonding and insurance coverage in the minimum amounts determined by the Clean Energy Development Board, or any higher amounts that are required in the jurisdiction where the contractor is licensed or registered.
Status: 3/13/19: (S) in Local Government and Elections; hearing conducted
Related Bill: HB 215
SB 251 – Occupational Regulations. Would prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation requiring a license solely, or in part, due to a prior conviction for a crime, unless the crime directly relates to the duties and responsibilities of the licensed occupation. The bill would require State licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify an applicant from obtaining a license. State license authorities would be prohibited from using terms such as "moral turpitude" and "good character." They also could not consider an applicant's arrests without a conviction. The bill would allow a person with a criminal record to petition a licensing authority to determine whether the criminal record would disqualify the person from obtaining the license.
Status: 2/25/19: (S) hearing conducted in Professional Registration
Related Bill: HB 564
SB 258 – Occupational Regulations. Would require state and political subdivision licensing authorities to revise their existing licensing requirements to explicitly list the specific criminal offenses, civil penalties or judgments, or disciplinary actions taken by other licensing authorities that may disqualify an applicant from obtaining a license. The bill provides that certain violent offenses could be considered if the applicant has been convicted of them. The bill also provides that the requirements concerning criminal convictions only would apply to the professions specified in the bill. The bill also would revise several licensing and registration requirements to eliminate references to moral character and moral turpitude.
Status: 2/25/19: (S) hearing conducted in Professional Registration
SB 315 – Occupational Regulations. Would prohibit political subdivisions from imposing any occupational fees or licensing regulations on a profession if the political subdivision does not already impose them on that profession as of August 28, 2019. Political subdivisions could continue to regulate any profession or occupation that is subject to their regulations on or before that date if the occupational fees do not exceed $25 per year. All local licensing fees would be capped at not more than $25. However, if a state licensing authority imposes any new licensing requirements on any profession that the State did not previously regulate, political subdivisions would have to terminate any occupational fees or licensing requirements that they have in place when the State's regulations take effect. For a profession that is subject to existing state licensing requirements, a political subdivision could not impose regulations that would add licensing requirements to the existing state licensing requirements.
Status: 2/25/19: (S) hearing conducted in Professional Registration
SB 376 – Mechanical Contractors. Would enact the Missouri Statewide Mechanical Contractor Licensing Act and create the Office of Mechanical Contractors within the Division of Professional Regulation. The bill would require applicants for this license to provide proof of liability insurance in the amount of $500,000 and post a bond with each political subdivision in which work will be performed, as required by that political subdivision. Political subdivisions would not be prohibited from establishing their own local mechanical contractor's license, but would recognize a statewide license in lieu of a local license for the purposes of performing contracting work or obtaining permits to perform work within such political subdivision. The license term would be biennial.
Status: 3/11/19: (S) in Professional Registration; hearing conducted
Related Bill: HB 326
CONTRACT SURETY
HB 91 – Retainage; Performance and/or Payment Bonds. Provides that a subcontractor's payment under the required pay periods and reduction of retainage would be subject to the subcontractor's providing assurances of continued performance and financial responsibility to complete the required work, which could include a payment and performance bond. Retainage would be determined in the terms of the contract.
Status: 1/10/19: (H) read second time
HB 93 – Bonding Assistance Program. Would create the Missouri Minority Business Loan Program, which would include a bond guarantee component. The Department of Economic Development would have to develop a program that assists minority business enterprises through guarantees for bid, payment, and performance bonds for federal, state, and local contracts. The Department could secure letters of credit to guarantee the bonds. The bill would provide for up to $5 million in funding for the program.
Status: 1/31/19: (H) referred to Economic Development
HB 102 – Bonding Assistance Program. Would create the Missouri Minority Business Loan Program, which would include a bond guarantee component. The Department of Economic Development would have to develop a program that assists minority business enterprises through guarantees for bid, payment, and performance bonds for federal, state, and local contracts. The Department could secure letters of credit to guarantee the bonds. The bill would provide for up to $5 million in funding for the program.
Status: 1/10/19: (H) read second time
HB 104 – Individual Sureties. Would create the Bonding Review Board to determine if individual sureties have sufficient financial assets and to rate providers of individual sureties. Individual sureties would be required to register with the Board. The Board would establish procedures for creating and assigning credit ratings for any individual, partnership, or corporation that markets or provides individual sureties to satisfy bonding requirements.
Status: 1/10/19: (H) read second time
HB 490 – Payment and Performance Bonds. Would address a Missouri Supreme Court case, which held that the bonding requirements of the Little Miller Act are not applicable when a public owner hires a consultant or other third party to develop public property on its behalf. Under such arrangements the consultant or other third party, the public owner does not directly hire a general contractor. The court found that the consultant did not "provide" construction services, but merely "arranged" for them. The bill clarifies that when a public contracting entity uses such private entities for assistance with its duties, the resulting project still is a public works project that must be bonded.
Status: 1/23/19: (H) referred to Insurance Policy
Related Bill: SB 167
HB 791 – Payment and/or Performance Bonds. Legislation from the American Subcontractors Association (ASA) that would address a Missouri Supreme Court case, which held that the bonding requirements of the Little Miller Act are not applicable when a public owner hires a consultant or other third party to develop public property on its behalf. Under such arrangements the consultant or other third party, the public owner does not directly hire a general contractor. The court found that the consultant did not "provide" construction services, but merely "arranged" for them. The bill is similar to SB 167/HB 490, which clarifies that when a public contracting entity uses such private entities for assistance with its duties, the resulting project still is a public works project that must be bonded. HB 791 contains additional language that the ASA believes will address any case where a private entity arranges or provides construction services for the public owner to deliver a public project.
Status: 3/6/19: (H) to Workforce Development
SB 167 – Payment and Performance Bonds. Would address a Missouri Supreme Court case, which held that the bonding requirements of the Little Miller Act are not applicable when a public owner hires a consultant or other third party to develop public property on its behalf. Under such arrangements the consultant or other third party, the public owner does not directly hire a general contractor. The court found that the consultant did not "provide" construction services, but merely "arranged" for them. The bill clarifies that when a public contracting entity uses such private entities for assistance with its duties, the resulting project still is a public works project that must be bonded.
Status: 3/11/19: (H) second reading
Related Bill: HB 490
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 105 – Occupational Licensing. Would revise an existing state license reciprocity process for out of state license applicants to provide that an occupational licensing board would be required to issue the license to qualified persons who have a substantially similar license from another state. Current law provides that the occupational licensing board has discretion to grant the license to the out of state applicant.
Status: 3/13/19: (H) transmitted to the Governor
HB 107 – Mortgage Servicers. Would revise the bond requirement for mortgage servicers so that the amount of the bond would be calculated on the mortgage servicer's total unpaid principal balance of residential mortgage loans as of December 31, as follows: (i) $75,000 for an unpaid balance that does not exceed $25 million a year; (ii) $150,000 for an unpaid balance of more than $25 million but not exceeding $100 million a year; (iii) $250,000 for an unpaid balance of more than $100 million but not exceeding $500 million a year; or (iv) $350,000 for an unpaid balance of more than $500 million. Current law requires mortgage servicers to have a $100,000 bond.
Status: 3/13/19: (H) transmitted to the Governor
NEW LAW: HB 119 – Hazard Reduction Agreement Program. Would revise the amount of the bond required under a fire hazard reduction agreement. Currently, either the person conducting the work or the purchaser is required to post a bond in an amount not to exceed $6 for each 1,000 board feet. The bill provides that the bond amount may not exceed $12 for each 1,000 board feet, up to 100,000 board feet, or $6 for each additional 1,000 board feet over 100,000 board feet (log scale) or the equivalent if forest products other than logs are cut.
Status: 2/26/19: signed by the Governor; effective upon passage
HB 370 – Notaries Public. Would increase the amount of the notary bond from $10,000 to $25,000.
Status: 3/18/19: (S) scheduled for third reading
SB 73 – Commodity Dealers. Would expand the definition of commodity dealer to include brokering and online transactions, and add bonding and liability requirements for commodity dealers acting as brokers. The bill also would allow a publicly traded company to post a bond for a subsidiary company. If the company posts the maximum amount of bond, the company or subsidiary may request the Department waive the requirement to file a complete financial statement for a licensing year. The bill also provides that a commodity dealer acting as a broker and contracting or otherwise conducting business with a commodity dealer licensed in Montana would have to post the minimum amount of bond ($20,000). A commodity dealer acting as a broker and contracting or otherwise conducting business with a buyer not licensed as a commodity dealer in Montana would be required to post the maximum amount of bond and would be held jointly liable with the buyer for failure to comply with terms of a written contract or failure to pay for a commodity purchase under an oral agreement.
Status: 3/14/19: (H) in Agriculture; hearing held
SB 93 – Solar Energy Infrastructure - Decommissioning. Would subject solar energy facilities to the existing remediation law for wind energy facilities, which requires a bond in an amount determined by the Department of Environmental Quality to secure the decommissioning of a facility.
Status: 3/13/19: (H) in Energy, Technology and Federal Relations; hearing cancelled, rescheduled for 3/18/19
SB 126 – Workers' Compensation. Would exempt public entities that cannot be insolvent from the security requirements for self-insurers for workers' compensation plans. Surety bonds or other security are accepted to meet the security requirements.
Status: 3/15/19: (H) in Business and Labor; hearing held
CONTRACT SURETY
SB 108 – Threshold; Payment and Performance Bonds. Would increase the state bond threshold from $50,000 to $150,000, and increase the threshold for bid security on these contracts from $25,000 to $150,000. The bill also would increase other procurement related thresholds to $150,000.
Status: 3/18/19: (H) scheduled for second reading
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: LB 194 – Public Officials. Would specify that the bond requirements for city council members, the city treasurer, and municipal depositories apply to cities of the first class only. Existing law requires city council members to post a bond or obtain equivalent insurance in the amount of $1,000. City treasurers must post a bond or insurance of at least $25,000, or the treasurer may be required to give bond for double the sum of money that the city council estimates at any time to be in the treasurer's hands. The depository bond must be equal to the amount of the deposits in the depository institution, less the amount of insurance from the FDIC.
Status: 3/7/19: approved by the Governor; effective 3 months after adjournment
LB 265 – Consumer Loans. Would require lenders offering unsecured consumer loans to be licensed and to post a $50,000 bond to secure the licensee's faithful performance of its duties related to the business, and to ensure prompt payment of any judgment recovered against the licensee. The director would be authorized to require an additional bond if the original bond is exhausted or is inadequate for any reason, including the financial condition of the licensee, or for violations of the applicable law and/or regulations. The amount of any new or additional bond could not exceed $100,000.
Status: 1/28/19: in Banking, Commerce and Insurance; notice of hearing for 3/12/19
LB 373 – Wind Energy Facilities - Decommissioning. Would require county zoning regulations for a wind energy facility project to include requirements for a performance bond for each wind turbine in connection with the submission of a decommissioning plan.
Status: 3/5/19: Brewer AM428 filed
LB 397 – Nonparticipating Tobacco Manufacturers. Would revise the bond requirement for nonparticipating tobacco manufacturers who do not participate in the Master Settlement Agreement to require a bond or cash deposit of $100,000, the greatest escrow amount due in the preceding 20 calendar quarters, or the greatest required annual total of quarterly escrow amounts due if the manufacturer is deemed to pose an elevated risk, whichever of these amounts is greater. Existing law requires a $25,000 bond if the manufacturer has been listed on the state's directory of nonparticipating tobacco manufacturers, or $50,000 if the manufacturer has not been listed in the directory for at least three years. If the manufacturer has failed to make the required escrow deposits, it must post a $50,000 bond or the greatest amount of escrow deposits owed in any calendar year in Nebraska in the preceding five calendar years under existing law.
Status: 2/21/19: in General Affairs; notice of hearing for 3/4/19
NEW LAW: LB 536 – Trusts. Would adopt the Uniform Directed Trust Act and require trust directors for such a trust to meet the bond requirements for trustees under existing law. The Act follows the Uniform Trust Code model, and provides that a bond is only required if the court requires a bond or the terms of the trust require a bond and the court has not dispensed with it.
Status: 3/12/19: approved by the Governor; effective 3 months after adjournment
CONTRACT SURETY
LB 208 – P3s. Would authorize state and local governments to use P3s for public infrastructure projects to provide broadband services, Internet services, telecommunications services, or video services. The bill does not specify any procurement requirements.
Status: 1/25/19: in Transportation and Telecommunications; notice of hearing for 2/4/19
LB 543 – Payment and/or Performance Bonds. Would revise the existing law concerning payment bonds for public works contracts to prohibit any material or rental equipment from being purchased or contracted for and any work beginning pursuant to any contract until the payment bond or bonds are filed and approved instead of prohibiting the state from entering into the contract before the bond is filed an approved.
Status: 2/26/19: in Government, Military and Veterans Affairs; notice of hearing for 3/7/19
LB 616 – Construction Manager; Design-Build; Infrastructure. Would authorize the Department of Transportation to use the build‑finance project delivery method. Under this method, a design‑builder, a construction manager, or a contractor working under any project structure allowed by law would pay for the project labor, materials, and vendors as the work is performed, and payments due from the Department are made over a period not to exceed 10 years after the date of the project's substantial completion. The existing law for construction managers and design‑builders requires the request for proposals to include any bonding and insurance that is required by law or any additional bonding that the Department requires.
Status: 2/22/19: placed on general file with AM442; Transportation and Telecommunications' AM442 filed
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
NEVADA – NV Legislature | Session Dates: 2/4/19 – 6/3/19
COMMERCIAL SURETY
SB 29 – Promoters. Would revise the existing security requirement for promoters conducting, holding or giving contests or exhibitions of unarmed combat to eliminate the other forms of security; only a bond would be acceptable. Current law requires a $10,000 bond.
Status: 3/5/19: (S) read second time. Taken from General File; re-referred to Finance. Exemption effective.
SB 30 – Employment of Offenders. Would revise an existing law concerning a program for the employment of offenders who are committed to the Department of Corrections' custody, which includes contracting with private employers for the employment of offenders. Under current law, the private employer must provide a surety bond, personal guarantee, or a security agreement for not less than 100% of the prorated annual amount of the contract. The bill would require the bond or other security to be in an amount not less than 33% of the prorated annual amount of the contract, but not more than 100% of the contract amount.
Status: 2/4/19: (S) read first time and referred to Judiciary
SB 56 – Timber Cutting. Would revise the existing requirements to post a performance bond in connection with obtaining a timberland conversion certificate to eliminate a provision that specifies that the bond amount is based on the amount of the contract price or the value of the timber that will be cut. Under existing law, the state forester fire warden determines the bond amount. The bill also would change the kinds of security that are accepted so that only a surety bond, CD, or treasury note would be accepted, eliminating the use of an individual surety, a cashier's check, money order, or negotiable securities.
Status: 2/4/19: (S) read first time and referred to Natural Resources
SB 71 – Special Fuel Licenses. Would require special fuel users to post a surety bond or other security in an amount not less than $25,000 in connection with entering into an agreement with the Department of Motor Vehicles for issuing and renewing special fuel user licenses. The bill would require service providers to post a minimum $50,000 bond or other security.
Status: 2/4/19: (S) read first time and referred to Growth and Infrastructure
SB 86 – Countersignature. Would eliminate any remaining countersignature requirements for insurance agents for insurance policies and bonds in existing law. The requirements were generally repealed in 2009. This bill would remove requirements pertaining to bonds issued in an emergency situation and the related exceptions to this requirement.
Status: 2/4/19: (S) read first time and referred to Commerce and Labor
SB 195 – Virtual Currency Businesses. Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Department of Business and Industry would determine based on the nature and the extent of the risks of the licensee's virtual currency business model. The Department could require additional security for good cause. A surety bond only could be required if it is generally available in the state for a commercially reasonable cost. The Department could specify a tail period for the bond by regulations. Only the Department would be permitted to make claims on the bond.
Status: 3/14/19: (S) in Judiciary. Notice of eligibility for exemption.
CONTRACT SURETY
SB 180 – Performance Bonds. Would revise the existing law for state and local purchasing contracts to provide that a performance bond would be required on state and local contracts for the procurement of an information system, information service or information technology when the contract amount exceeds $10 million. The bill would require the bond to be for at least 50% of the contract price. The surety would have to be issued by one or more surety companies authorized to do business in the state. Under current law, bonding may be required for a purchasing contract and a required amount is not specified.
Status: 2/18/19: (S) introduced and referred to Government Affairs
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 115 – Private Investigative Agencies. Would specify that the license bond required for private investigative agencies, bail recovery agents, and security services would have to be for no less than $50,000. Currently, the bond must be equal to $50,000.
Status: 3/12/19: (S) introduced (on 3/7) and referred to Executive Departments and Administration
HB 253 – Criminal Records Checks. Would prohibit an employer from including a question on any application for employment about whether the applicant has ever been arrested, charged with, or convicted of any crime or violation, or adjudicated as a juvenile delinquent. This would not apply in certain cases, including when a position would require a standard fidelity bond or equivalent bond and the applicant's conviction of a crime would disqualify the applicant from obtaining the bond.
Status: 3/12/19: (S) introduced (on 3/7) and referred to Commerce
HB 474 – Fidelity Bond - Financial Institution. Would revise the fidelity bond requirement or state banks and credit unions to specify that the bond would have to be provided by an insurer licensed under the laws of the state; a foreign surplus lines insurer authorized to sell insurance in the state and licensed by any state, district or territory; or a person if the issuer unconditionally assents to the resolution of any claim or dispute involving the policy by a court located in the state and the personal jurisdiction of the courts located in the state in connection with any matter involving the policy.
Status: 3/12/19: (H) Committee Report: Ought to pass with Amendment #2019-0360h for 3/19/19
HB 662 – Occupational Licensing. Would create a commission to study possibilities for reforming New Hampshire's occupational licensing requirements and procedures to reduce barriers to licensure. The commission would have to study reforms for reducing the barriers to occupational licenses for impacted communities, including veterans and military spouses, and individuals with criminal records; increasing the portability of state occupational licenses across state lines; increasing New Hampshire's reciprocity of occupational licenses obtained from out of state; and possible occupations that should be newly licensed or de-licensed. The commission would report its findings and any recommendations for proposed legislation to the state legislature and the Governor.
Status: 3/7/19: (H) Committee report: Inexpedient to legislate for 3/19/19
SB 54 – Fuel Distributors. Would exempt fuel distributors from the bond requirement if they have complied with the law for the previous three consecutive years. The distributor would have to provide financial statements for the previous three years and been licensed in the state as a distributor for the previous five consecutive years to qualify for an exemption. If the distributor obtains an exemption and fails to comply with the law, the bond requirement could be re-imposed.
Status: 2/14/19: (S) Ought to pass with amendment 2019-0194s, MA, VV
SB 77 – Animal Cruelty. Provides that an arresting officer could draw funds from the bond or security posted during an appeal to secure the costs of caring for an animal that has been confiscated from a person convicted of animal cruelty as soon as the bond or security is posted.
Status: 3/7/19: (S) Ought to pass with amendment
CONTRACT SURETY
HB 654 – Performance Bond. Would grant discretion to the Housing Finance Authority to require a mortgagor to furnish bonds or other security to secure the performance on contracts awarded in connection with a construction loan from the Authority for housing projects. Current law provides that bonds or other security are required.
Status: 3/14/19: (H) Minority Committee Report: Inexpedient to Legislate
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 4832 – Temporary Help Services. Would increase the amount of the bond required for temporary help service providers from $1,000 to $10,000. The bill would also eliminate the waiver for the bond requirement currently available to firms that have a net worth of $100,000 or more.
Status: 1/15/19: (A) introduced and referred to Labor
AB 4860 – Electronic Notaries. Would authorize the use of remote online notaries public to provide electronic notarizations. The bill provides that the state treasurer could require the notary to post a bond.
Status: 1/15/19: (A) introduced and referred to Regulated Professions
Related Bill: SB 3147
AB 4959 – Contractors. Would authorize the director of the Division of Consumer Affairs to require home restoration contractors to post a performance bond in favor of an owner, lessee, tenant, or other party to a home improvement contract for home restoration. The director would establish the bond amount through regulation. Ten days' notice would be required for cancellation or nonrenewal of the bond. The bond would be in addition to the insurance requirement under existing law.
Status: 3/7/19: (A) reported and referred to Appropriations
Related Bill: SB 1868
AB 4997 – Mortgage Servicers. Would require mortgage servicers and persons exempt from licensure as a mortgage servicer to post a surety bond for $100,000 per office location. The surety bond would be conditioned on performing any and all written agreements or commitments with or for the benefit of mortgagors and mortgagees, accounting for all funds received from a mortgagor or mortgagee and conducting the mortgage business in compliance with the applicable law. The bill would permit direct actions on the bond, but the surety's aggregate liability would be limited to the bond amount. Mortgage servicers and exempt persons also would have to post a fidelity bond in an amount determined by a formula set forth in the bill based on the amount of residential mortgage loans serviced. The minimum fidelity bond amount would be $300,000. The fidelity bond could have a deductible, which could not exceed $100,000 or 5% of the bond amount, whichever is greater. The fidelity bond would cover losses arising from dishonest and fraudulent acts, embezzlement, misplacement, forgery and similar events committed by the servicer's employees.
Status: 3/7/19: (A) reported and referred to Appropriations
Related Bill: SB 3417
SB 1868 – Contractors. Would authorize the director of the Division of Consumer Affairs to require home restoration contractors to post a performance bond in favor of an owner, lessee, tenant, or other party to a home improvement contract for home restoration. The director would establish the bond amount through regulation. Ten days' notice would be required for cancellation or nonrenewal of the bond. The bond would be in addition to the insurance requirement under existing law.
Status: 12/3/18: (S) referred to Budget and Appropriations
Related Bill: AB 4959
NEW LAW: SB 2969 – Fantasy Sports Contests. Would revise existing law for fantasy sports operators who currently must segregate participants' funds from operational funds and also must maintain a reserve account, a bond, an irrevocable letter of credit, or a combination thereof in the amount of the deposits in participants' accounts. The bill provides that the operator could either maintain the segregated account or instead maintain the reserve account, bond, or letter of credit.
Status: 1/31/19: approved by the Governor; P.L. 2019, c.11
SB 3147 – Electronic Notaries. Would authorize the use of remote online notaries public to provide electronic notarizations. The bill provides that the state treasurer could require the notary to post a bond.
Status: 10/22/18: (S) introduced; referred to Commerce
Related Bill: AB 4860
SB 3417 – Mortgage Servicers. Would require mortgage servicers and persons exempt from licensure as a mortgage servicer to post a surety bond for $100,000 per office location. The surety bond would be conditioned on performing any and all written agreements or commitments with or for the benefit of mortgagors and mortgagees, accounting for all funds received from a mortgagor or mortgagee and conducting the mortgage business in compliance with the applicable law. The bill would permit direct actions on the bond, but the surety's aggregate liability would be limited to the bond amount. Mortgage servicers and exempt persons also would have to post a fidelity bond in an amount determined by a formula set forth in the bill based on the amount of residential mortgage loans serviced. The minimum fidelity bond amount would be $300,000. The fidelity bond could have a deductible, which could not exceed $100,000 or 5% of the bond amount, whichever is greater. The fidelity bond would cover losses arising from dishonest and fraudulent acts, embezzlement, misplacement, forgery and similar events committed by the servicer's employees.
Status: 3/4/19: (S) reported from Budget and Appropriations with amendments; second reading
Related Bill: AB 4997
SB 3499 – Debt Adjusters. Would require for-profit debt adjusters to post a license bond or other security in an amount not less than $50,000 for the first office and $25,000 for each additional office for the first 250 customers and for the first $250,000 in customer funds that the licensee holds. The bond amount also could be increased based on the number of people for whom the debt adjuster provides services by $25,000 for each 250 additional customers and $25,000 for each additional $250,000 in customer funds that the licensee holds. The bond would be conditioned on compliance with the law. The bill would permit directions on the bond. The bond would have to be in place for two years after the licensee ceases to provide services in the state.
Status: 3/4/19: (S) from Commerce with amendments; second reading
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 41 – Medicaid Services, Fraud and Due Process. Would permit a Medicaid provider or subcontractor to obtain the release of a payment that was suspended because the provider or subcontractor is the subject of a referral based on a determination of a credible allegation of fraud for services previously rendered if the provider or subcontractor posts a surety bond for the amount of the suspended payment.
Status: 3/11/19: (H) passed House
SB 105 – Contractors. Would eliminate a provision allowing trade bureaus to adopt regulations that would require a bond in an amount ranging from $500 to $1,500 in connection with obtaining a permit for any construction, installation, alteration, repair, or addition for a building or structure.
Status: 1/16/19: (S) referred to Corporations and Transportation. Referred to Judiciary; referred to Finance
SB 238 – Real Estate Brokers. Would authorize the New Mexico Real Estate Commission to adopt regulations that would require a real estate broker providing residential property management services to post a surety bond of at least $100,000, conditioned to pay the actual damages suffered by property owners and tenants as a result of financial harm caused by the mismanagement, misappropriation, deceit, or embezzlement of an owner or tenant's funds deposited in a property management trust account.
Status: 3/14/19: (H) Committee report: Do Pass recommendation
SB 271 – Prescription Drugs. Would require prescription drug manufacturers, outsourcing facilities, repackagers, and third-party logistics providers to comply with the bond requirements in existing law for nonresident pharmacies and wholesale drug distributors. The law requires a surety bond or other security to secure payment of any administrative or judicial penalties that may be imposed, and any penalties or costs required by regulations or disciplinary action. The bond may be waived under existing law.
Status: 3/14/19: (H) Committee report: Do Pass recommendation
CONTRACT SURETY
HB 9 – P3s. This is an enabling act that would authorize the state and local governments to use P3s for broadband infrastructure projects.
Status: 2/14/19: (H) introduced and referred to Labor, Veterans and Military Affairs; additionally referred to Appropriations and Finance
HB 286 – P3s. Would authorize the state, local governments, and state institutions to use P3s for capital projects that cost more than $20 million, or that have a P3 term that is longer than five years. The P3 agreement would have to include a requirement for the private partner to provide directly, or through the principal contractor, performance and payment bonds in accordance with the requirements of the Little Miller Act for the construction portion of the project. Alternative forms of security for the non-construction components of the project could be required.
Status: 1/21/19: (H) referred to Labor, Veterans' and Military Affairs/ Judiciary
HB 534 – P3s; Payment and/or Performance Bonds. Would authorize the state, local governments, and state institutions to use P3s for transportation projects and broadband telecommunication network facility projects. The P3 agreement would have to include a requirement for the private partner to provide directly, or through the principal contractor in charge of the project, performance and payment bonds in accordance with the requirements of the Little Miller Act for the construction portion of the project. The bonding provision reflect the work SFAA and APCIA did in previous sessions in addressing this issue. Alternative forms of security for the non-construction components of the project also could be required. The bill would create the Public-Private Partnership Board (Board). Any project that exceeds $10 million would be subject to the Board's approval. The Board also would be in charge of reviewing the funding mechanisms for the project and establishing rules for the application process and criteria for approving P3 agreements. The bill also would create the P3 Project Fund to provide grants and loans for financing these projects.
Status: 3/15/19: (S) failed to pass in the Senate - DEAD
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 439 – Municipal Depositories. Would allow savings banks, savings and loan associations, and credit unions to act as depositories for public funds. Under existing law, depositories for public funds must post a surety bond or other security in an amount the comptroller determines is sufficient to secure the public funds.
Status: 1/9/19: (A) introduced and referred to Banks
Related Bill: SB 1586
AB 1617 – Marijuana Retailers. Would authorize the use of recreational marijuana and require retailers to post a surety bond in an amount equal to two months of a cultivation facility's anticipated retail marijuana excise tax that the bill would impose.
Status: 1/16/19: (A) introduced and referred to Codes
Related Bill: SB 1527
AB 1668 – Election Recounts. Would require candidates and voters requesting a recount to post a bond or other security in an amount that the jurisdiction where the recount is occurring would determine to secure the costs of the recount.
Status: 1/16/19: (A) introduced and referred to Election Law
AB 2185 – Towing Companies. Would increase the bond amount from $5,000 to $25,000. The bill provides that the bond amount could be increased up to $250,000 following a hearing to determine whether the bond should be increased. An additional bond could be required for violations of the law.
Status: 1/22/19: (A) introduced and referred to Cities
AB 2884 – Fidelity Bond. Would prohibit commercial crime insurance policies from excluding coverage for losses that an employee caused if he or she had been convicted of a criminal offense, and the employer knew about the conviction prior to the loss and the employer had considered the factors set forth in the existing Corrections Law for determining whether to hire the person. Violating this provision would be deemed an unfair method of competition or an unfair or deceptive act and practice.
Status: 1/28/19: (A) introduced and referred to Insurance
SB 1527 – Marijuana Retailers. Would authorize the use of recreational marijuana and require retailers to post a surety bond in an amount equal to two months of a cultivation facility's anticipated retail marijuana excise tax that the bill would impose.
Status: 1/15/19: (S) introduced and referred to Finance
Related Bill: AB 1617
SB 1586 – Municipal Depositories. Would allow savings banks, savings and loan associations, and credit unions to act as depositories for public funds. Under existing law, depositories for public funds must post a surety bond or other security in an amount the comptroller determines is sufficient to secure the public funds.
Status: 1/15/19: (S) introduced and referred to Local Government
Related Bill: AB 439
SB 2022 – Public Vessels Carrying Passengers. Would require public vessels to obtain a liability insurance policy or a surety bond in connection with a certificate to operate and carry passengers. The amount of the bond or insurance policy would have to be equal to at least $1 million per occurrence for injury to or death of any person arising out of the negligent operation of the vessel.
Status: 1/18/19: (S) introduced and referred to Cultural Affairs, Tourism, Parks and Recreation
SB 2343 – Debt Collection Agencies. Would require debt collection agencies to be licensed and post a surety bond or other security in an amount that would be based on the number of persons the licensee employs, ranging from $10,000 to $75,000. The bond would secure the licensee's compliance with the applicable law and the payment of all costs and penalties.
Status: 1/24/19: (S) introduced and referred to Consumer Protection
SB 3231 – Massage Therapy Businesses. Would require massage therapy businesses to be licensed and provide evidence of obtaining a bond or liability insurance. The bill does not specify any further bonding requirements.
Status: 2/4/19: (S) introduced and referred to Consumer Protection
SB 3604 – Energy Services Companies. Would permit municipalities to participate in community choice energy aggregation programs to procure electric and/or gas supply services from an energy services company. The energy services company could be required to post a performance bond as a condition of its contract with the municipalities.
Status: 2/11/19: (S) introduced and referred to Energy and Telecommunications
SB 3625 – Rate and Form Filings. Would exempt commercial specialty lines of insurance from the existing law's rate and form filing requirements. The exemption would apply to surety and fidelity.
Status: 2/11/19: (S) introduced and referred to Insurance
SB 3643 – Theft Protection Warranty Providers. Would regulate theft protection program warranties for motor vehicles, requiring providers of such warranties to meet financial security requirements. The provider would have to obtain a reimbursement insurance policy, or maintain a funded reserve account and post a bond or other security in an amount not less than 5% of the gross consideration received, less claims paid, on the sales for all theft protection program warranties issued and inforce. The minimum bond or other security amount would be $25,000.
Status: 2/11/19: (S) introduced and referred to Insurance
CONTRACT SURETY
AB 488 – Retainage. Would revise existing law for private construction contracts to require that retainage be placed in an escrow account.
Status: 1/9/19: (A) introduced and referred to Economic Development
AB 574 – Retainage. Would prohibit withholding any amounts for a public construction project that are due for materials that have been delivered, accepted and are covered by a manufacturer's warranty, and/or are graded to meet industry standards. The public owner and the contractor would have had to pay for these materials in full. Contractors could withhold retainage if the materialmen also have the installation contract. Private construction contracts would be subject to these requirements as well.
Status: 1/9/19: (A) introduced and referred to Governmental Operations
AB 1487 – Small Businesses; Bonding Assistance Programs. Would establish small business mentoring programs for construction contracting for the Dormitory Authority, Office of General Services, Department of Health, Department of Transportation, and the Empire State Development Corporation. Small businesses would be partnered with a mentor construction firm to perform on set-aside contracts for public works projects. The public owner would be permitted to provide assistance to participants to obtain bonding. Participation in the program would be limited to a maximum of two, four-year terms.
Status: 1/15/19: (A) introduced and referred to Governmental Operations
AB 1975 – Bond Threshold. Would increase the bond threshold for public construction contracts from $100,000 to $150,000 for contracts that are subject to the law's multiple prime requirements. For contracts not subject to this requirement, the threshold would be increased from $200,000 to $300,000. The bond threshold amounts would be adjusted annually for inflation.
Status: 1/18/19: (A) introduced and referred to Governmental Operations
Related Bill: SB 766
AB 2008 – P3s; Payment and/or Performance Bonds; Design-Build. Would permit the Department of Environmental Conservation to enter into P3s with private entities for the maintenance of educational and recreational facilities. The bill does not specify any procurement requirements for these P3s. The bill also would expand the design-build law to allow use of the construction manager at-risk project delivery method and the construction manager build method. Currently, state entities authorized to use design-build projects may set the performance and payment bond requirements; however, the bill provides that these entities could make a determination, notwithstanding the requirements of the Little Miller Act, to use other forms of security at their discretion. The bill would expand the law to allow public buildings to be built using these project delivery methods and it would expand the number of agencies authorized to use these methods. The bill would reduce the threshold for using them from $5 million to $1.2 million.
Status: 3/11/19: (A) amended and recommitted to Ways and Means; Print Number 2008B
Related Bill: SB 1508
AB 2212 – Retainage. Would repeal the existing retainage law for public works contracts under which contractors may withhold not more than 5% of the progress payment to a subcontractor, unless the subcontractor does not provide a bond, in which case the retainage may be not more than 10%. The bill also would mandate that contractors pay their subcontractors upon completion of their work regardless of whether the public owner has paid the contractor.
Status: 1/22/19: (A) introduced and referred to Governmental Operations
AB 2568 – Infrastructure. Provides for the creation of infrastructure financing districts to finance public facility projects that have a community‑wide significance.
Status: 1/23/19: (A) introduced and referred to Ways and Means
AB 3250 – Payment and/or Performance Bonds; Retainage. Would revise the retainage requirements for state and municipal public works projects so that the public owner would withhold the retainage from the subcontractor instead of the contractor. The bill provides that the public owner would pay the subcontractors directly instead of the contractors paying the subcontractors.
Status: 1/29/19: (A) introduced and referred to Governmental Operations
AB 3558 – Retainage. Would cap the amount of retainage that may be withheld on private construction projects at an amount not more than 5% of the contract amount. Currently, the owner and the parties to the contract may agree to a reasonable amount of retainage. The bill also provides that the contractor may obtain his or her final payment of the project when it reaches substantial completion instead of the existing requirement to release the final payment when all obligations under the contract are complete.
Status: 1/29/19: (A) introduced and referred to Economic Development, Job Creation, Commerce and Industry
Related Bill: SB 981
AB 4174 – Payment and/or Performance Bonds. Would create a public library revolving loan program for the University of the State of New York. As a condition of the loan agreement between the library or library system and the Commissioner of Education, any person or entity contracting to perform work on an approved project would be required to furnish an undertaking or a surety bond to guarantee the faithful performance of the project. A labor and/or material bond also could be required.
Status: 2/1/19: (A) introduced and referred to Libraries and Education Technology
AB 4490 – Bond Guarantee Program; Minority Business; Veteran-Owned Business; Women-Owned Business. Would revise the existing law for contracting programs for minority- and women-owned businesses to include businesses owned by honorably discharged veterans. The existing law for these programs includes bond guarantee and bonding technical assistance programs.
Status: 2/4/19: (A) introduced and referred to Veterans Affairs
AB 4722 – Bond Threshold; Payment and/or Performance Bonds. Would establish a $250,000 threshold at which performance and payment bonds would be required for contracts for the State University of New York at Stony Brook. The letting agency would have to require deposits, bonds and security with the submission of bids or request for proposals, the award of contracts and the performance of work as it determines to be in the public interest and for the protection of the State, the State University, the State University Construction Fund and the letting agency.
Status: 2/5/19: (A) introduced and referred to Higher Education
AB 4826 – Infrastructure; P3s. Would create the New York State Infrastructure Development Bank to provide financial assistance to energy, environmental, telecommunications, or transportation infrastructure projects. Eligible entities for receiving assistance would include individuals, corporations, partnerships (including P3s), joint ventures, trusts, the state or other governmental entity, including a political subdivision or any other instrumentality of the state or a revolving fund.
Status: 2/5/19: (A) introduced and referred to Banks
Related Bill: SB 2324
AB 5139 – Contract Bundling. Would require each state contract to avoid unnecessary and unjustified bundling of contract requirements that precludes small and certified women- and minority-owned business participation in procurements as prime contractors.
Status: 2/7/19: (A) introduced and referred to Governmental Operations
AB 5429 – Retainage. Provides that the retainage that a public owner or contractor withholds that is for a subcontractor's work on state and municipal construction contracts would have to be released within 60 days from the completion and the public owner's acceptance of the subcontractor's work. A portion of the retainage to be released could be withheld to settle claims and unfinished punch list items.
Status: 2/15/19: (A) in Government Operations; enacting clause stricken
AB 5658 – P3s. Would prohibit state agencies from entering into a P3 agreement unless the state agency has adopted regulations to establish standards for these P3s. This requirement would apply to a P3 in which private funding exceeding $500,000 is made available for a public capital project, a public program or to underwrite the cost of public personnel. The standards would have to include a cost benefit analysis of the P3 proposal, a review of the P3's impact on the state agency's existing policies and priorities, procedures on the advertisement and solicitation of bids for competitive bidding, a minimum of 45 days' notice before entering into a P3, an opportunity for public comment, and public disclosure of the private partner's recent campaign contributions to state elected offices.
Status: 2/14/19: (A) introduced and referred to Ways and Means
SB 766 – Bond Threshold. Would increase the bond threshold for public construction contracts from $100,000 to $150,000 for contracts that are subject to the law's multiple prime requirements. For contracts not subject to this requirement, the threshold would be increased from $200,000 to $300,000. The bond threshold amounts would be adjusted annually for inflation.
Status: 1/9/19: (S) introduced and referred to Finance
Related Bill: AB 1975
SB 981 – Retainage. Would cap the amount of retainage that may be withheld on private construction projects at an amount not more than 5% of the contract amount. Currently, the owner and the parties to the contract may agree to a reasonable amount of retainage. The bill also provides that the contractor may obtain his or her final payment of the project when it reaches substantial completion instead of the existing requirement to release the final payment when all obligations under the contract are complete.
Status: 1/9/19: (S) introduced and referred to Consumer Protection
Related Bill: AB 3558
SB 1469 – Performance Bond. Would establish a NYC Department of Housing Preservation and Development Homeowners Improvement Trust Fund for aggrieved homeowners who are victims of substandard housing built by a sponsor on a Housing Preservation and Development project. The project sponsor would have to participate in the fund, provide a bond, or otherwise meet the required warranties. The Commissioner of the NYS Community Homes & Renewal could adopt regulations that require bonding, minimum capital, or other security for project sponsors to secure their compliance with the law and have the financial resources to meet their warranty, contractual, and other obligations. The Commissioner also could require surety bonds to ensure the satisfactory completion of the project.
Status: 1/15/19: (S) introduced and referred to Housing, Construction and Community Development
SB 1508 – P3s; Payment and/or Performance Bonds; Design-Build. Would permit the Department of Environmental Conservation to enter into P3s with private entities for the maintenance of educational and recreational facilities. The bill does not specify any procurement requirements for these P3s. The bill also would expand the design-build law to allow use of the construction manager at-risk project delivery method and the construction manager build method. Currently, state entities authorized to use design-build projects may set the performance and payment bond requirements; however, the bill provides that these entities could make a determination, notwithstanding the requirements of the Little Miller Act, to use other forms of security at their discretion. The bill would expand the law to allow public buildings to be built using these project delivery methods and it would expand the number of agencies authorized to use these methods. The bill would reduce the threshold for using them from $5 million to $1.2 million.
Status: 3/12/19: (S) amended and recommitted to Finance; Print Number 1508B
Related Bill: AB 2008
SB 2233 – Bond Waiver; Minority Businesses; Small Businesses. Would allow the bond requirements in the Little Miller Act to be waived for small businesses and minority‑ or women‑owned businesses when the contract is less than $500,000. The bond threshold under current law is $100,000 for contracts subject to the multiple award requirements of the Wicks Act, and $200,000 for contracts that are not subject to the multiple award requirements.
Status: 1/23/19: (S) introduced and referred to Finance
SB 2324 – Infrastructure; P3s. Would create the New York State Infrastructure Development Bank to provide financial assistance to energy, environmental, telecommunications, or transportation infrastructure projects. Eligible entities for receiving assistance would include individuals, corporations, partnerships (including P3s), joint ventures, trusts, the state or other governmental entity, including a political subdivision or any other instrumentality of the State or a revolving fund.
Status: 1/24/19: (S) introduced and referred to Finance
SB 3589 – P3s. Would authorize the creation of P3s for the deployment of broadband. The P3 would be comprised of state and local entities partnering with telecommunications providers, technology companies, telecommunication unions, community-based organizations and relevant private sector entities. The P3 would have to develop a plan for the deployment of broadband services and identify P3 projects to meet the deployment goals.
Status: 2/11/19: (S) introduced and referred to Internet and Technology
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
NORTH CAROLINA – NC General Assembly | Session Dates: 1/16/19 – 6/30/19
CONTRACT SURETY
HB 158 – Payment and/or Performance Bonds. Would eliminate the requirement for the Department of Transportation, the University of North Carolina, and the Department of Administration to issue an annual report to the legislature on projects that these agencies let without a performance or payment bond to determine the number of defaults, the cost to complete the projects, and each contract price. These agencies only would have to continue to monitor these issues as provided under existing law.
Status: 3/14/19: (S) referred to Rules and Operations of the State
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1219 – Public Adjusters. Would require public adjusters to be licensed and to obtain a bond or insurance for a minimum of $20,000. The bond would be for the use and benefit of the insurance commissioner for insureds that have remitted fees, retainers, compensation, deposits, or other things of value to the public adjuster in the course of his or her business. The bill would require 60 days' notice to cancel the bond.
Status: 3/12/19: (S) in Appropriations; hearing held
HB 1291 – Fleet Trailer Registrations. Would eliminate the process for issuing plates to an owner of a fleet of trailers that are operated, offered for lease, or rented to the public. With the elimination of this process, the required bond would also be eliminated. Current law provides that a bond may be posted in lieu of paying the registration fees for the full six years for the registration term for the plates.
Status: 3/14/19: (H) passed Senate; returned to House
HB 1443 – Pari-mutuel Wagering. Would require licensed service providers operating pari-mutuel wagering for a historic horse race to post a $500,000 bond.
Status: 3/1/19: (S) in Government and Veterans Affairs; hearing held
NEW LAW: SB 2093 – Money Brokers and Collection Agencies. Would increase the amount of the bonds required of money brokers and collection agencies to $50,000. Existing law requires money brokers to maintain a $25,000 bond and collection agencies to maintain a $20,000 bond.
Status: 3/14/19: signed by the Governor; effective 8/1/19
SB 2102 – Discount Medical Plan Organizations. Would require discount medical plan organizations to register and post a bond of at least $35,000. The bond would be for the insurance commissioner's discretionary use to protect the financial interests of plan members. The bond would not be subject to a levy from any judgment creditor or other claimant of the organization.
Status: 3/14/19: (H) amendment adopted; placed on calendar
SB 2353 – Occupational Licensing. As amended, this bill would require the legislative management to study the state's system for regulating occupations and professions, including occupational licensing requirements; the membership, structure, and duties of occupational and professional boards; and various aspects of managing occupational and professional boards. The legislative management would have to report its findings and recommendations, including any legislation required to implement the recommendations, to the legislature. As introduced, the bill included occupational license reforms such as requiring occupational and professional licensing boards to adopt the least restrictive regulations, but these were eliminated in an amendment.
Status: 3/15/19: (H) in Government and Veterans Affairs; hearing held
CONTRACT SURETY
HB 1356 – Bond Threshold. Would increase the state bond threshold from $150,000 to $250,000. The bill also would increase other procurement thresholds related to public bidding and obtaining plans from private architects and engineers from $150,000 to $250,000.
Status: 3/14/19: (S) in Political Subdivisions; hearing scheduled
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 1 – Occupational Regulations. Would revise the existing law for reviewing all state regulations to establish additional procedures for eliminating regulatory restrictions. Under existing law, regulations have to be evaluated for whether a license bond is required, but there is not a requirement to determine its restrictiveness in this review process for state agencies. State agencies would have to amend or rescind any rules that are identified to have regulatory restrictions to achieve a 30% reduction according to the schedule set forth in the bill. Agencies failing to meet this requirement would not be permitted to adopt any new regulatory restrictions unless it simultaneously removes two or more existing regulatory restrictions until a 30% reduction is achieved. Agencies would be prohibited from merging regulations to achieve this requirement. The state would be limited in the number of regulatory restrictions that may be effective at any one time to 70% of the aggregate total of regulatory restrictions identified by all state agencies. No agency could adopt a regulation if it would cause the state to exceed this limit. Agencies would have to determine whether a regulation includes a restriction. The bill provides that if the regulation includes such words as "shall," "must," "require," "shall not," "may not," and "prohibit," it likely would be a restriction. A rule of law, phrased in "indicative mood," also may constitute a regulatory restriction.
Status: 2/19/19: (S) referred to Government Oversight and Reform
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1235 – Wind Energy Facilities - Decommissioning. Would eliminate the other forms of security that could be filed in lieu of a surety bond for wind energy facilities to secure decommissioning of the site. The bill would require the Oklahoma Corporation Commission to establish financial solvency requirements for surety bond providers.
Status: 2/5/19: (H) second reading, referred to Utilities
HB 1954 – Virtual Currency Businesses. Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Banking Department would determine, based on the nature and the extent of the applicant's virtual currency business model. The Department could require additional security for good cause. A bond only could be required if it is generally available in the state for a commercially reasonable cost. Only the Department would be authorized to make claims on the bond.
Status: 2/5/19: (H) second reading, referred to Banking, Financial Services and Pensions
HB 1972 – Motor Vehicles. Would transfer certain duties from the Corporation Commission to the Department of Public Safety. This shift of responsibilities would impact the regulation of motor carriers and appears to eliminate the bond required of enforcement officers. If enacted, we would need to update our records to reflect the obligee change.
Status: 3/14/19: (S) received in Senate; first reading
Related Bill: SB 687
SB 592 – Organized Protests. Would require any organization or group of 100 or more persons that engages in an organized protest at the state capitol building to post a $50,000 bond with the Oklahoma Capitol Improvement Authority in order to offset the cost of additional security, clean up and repairs.
Status: 2/5/19: (S) second reading, referred to Rules
SB 599 – Private Occupational Schools. Provides that the Oklahoma Board of Private Occupational Schools may adopt regulations for increasing the required amount of the surety bond or certificate of deposit that the school is required to post under existing law. The bond or certificate of deposit also could be increased when the school fails to adhere to a corrective action plan. The bill also provides for new procedures for student record retention. The school could meet the requirement by posting an additional surety bond that would secure the retrieval, recovery, and digitization of school records after a school closes.
Status: 2/12/19: (S) to Appropriations
SB 651 – Occupational Licensing. Would create the Right to Earn a Living Act, limiting occupational license regulations to fulfill certain objectives. The bill provides that all occupational regulations would be limited to those demonstrably necessary and carefully tailored to fulfill legitimate public health, safety or welfare objectives. Voluntary bonding or insurance would be considered least restrictive, and mandatory bonding would be considered more restrictive. Within one year of enactment, every agency would be required to conduct a comprehensive review of all occupational regulations and licenses within their jurisdictions. To the extent an agency finds any regulation that does not satisfy the set standards, it would repeal or modify the regulation to conform, or recommend to the legislature actions necessary to repeal or modify the occupational license or regulation to conform to the standards, if such action as it relates to an occupational regulation is not within an agency's authority. Each agency would have 15 months following enactment to submit its report to the legislature on all actions taken to conform with the Act.
Status: 2/14/19: (S) reported Do Pass by Business and Commerce; referred to Appropriations
SB 687 – Motor Vehicles. Would transfer certain duties from the Corporation Commission to the Department of Public Safety. This shift of responsibilities would impact the regulation of motor carriers and appears to eliminate the bond required of enforcement officers. If enacted, we would need to update our records to reflect the obligee change.
Status: 3/14/19: (S) measure passed; referred for engrossment
SB 720 – Small Loan Lenders. As amended, this bill would require small loan lenders to be licensed and post a surety bond or irrevocable letter of credit for $25,000 for each location. The maximum bond amount would be $200,000. The bond would be payable to the Department of Consumer Credit for the benefit of any person who is injured pursuant to a small loan by the licensee's fraud, misrepresentation, breach of contract, financial failure or violation of the applicable law. The bill would permit direct actions on the bond. The bill also would require the bond to be in place for at least three years after the license is surrendered, revoked, or it expires.
Status: 2/25/19: (H) first reading
SB 915 – Electronic Notarizations. Relates to remote online notarial acts; requires the Secretary of State to promulgate standards regulating remote online notarizations, and provides for registration requirements.
Status: 2/26/19: (H) first reading
SB 1010 – Insurance Professionals and Viatical Settlement Providers and Brokers. Would amend the producer appointment language to eliminate the phrase "or the first insurance application is submitted," so that to appoint a producer as its agent, the insurer shall file a notice of appointment within 15 days from the date the agency contract is executed. The bill would also require producers, administrators, adjusters, etc. to report to the Insurance Commissioner any administrative or criminal action taken against them within 30 days. Failure to comply would result in immediate suspension of a license. The bill also would clarify that viatical settlement providers and brokers are required to post a $50,000 bond or other security; currently, the law says "in an amount not to exceed" $50,000.
Status: 3/14/19: (S) measure passed; referred for engrossment
CONTRACT SURETY
HB 1114 – Retainage. Would prohibit retainage from being withheld from contractors on public buildings and public works projects if performance and payment bonds are in place. Under current law, the state bond threshold is $50,000 so that no retainage would be withheld on public contracts exceeding the threshold. Under existing law, the Department of Transportation and the Oklahoma Turnpike Authority are prohibited from requiring retainage on their contracts.
Status: 3/14/19: (S) first reading
Related Bill: SB 762
HB 1115 – Payment and/or Performance Bonds. Would create the Oklahoma Construction Registry (Registry) and allow an owner or general contractor to register a project under the Registry within 10 days of signing a contract. If the owner or general contractor has elected not to register or fails to register a project within the time allowed, the project would default to the current state lien and bond law. Registering would preserve the lien rights of a project provider.
Status: 2/6/19: (H) second reading, referred to Rules
HB 2305 – Payment and/or Performance Bonds. As amended, this bill would revise the Little Miller Act to provide that a person who is owed any sum for labor, material or repair to machinery or equipment, furnished on a public works project could file a claim in lieu of bringing an action on the bond. Existing law provides that no action can be brought on the bond after one year from the day on which the last of the labor was performed or material or parts furnished for which the claim is made. The bill provides an exception to this limit if a prior claim has been filed within one year from the day on which the labor was performed or material or parts furnished.
Status: 3/5/19: (S) first reading
HB 2666 – Construction Manager; Payment and/or Performance Bonds; Retainage. Would revise the requirements for political subdivisions to use construction managers to specify that the political subdivision would have the option, if it is included in the guaranteed maximum price, to require the construction manager to provide performance, payment and maintenance bonds or only a payment bond in an amount equal to 100% of the value of the work, excluding the construction manager's fee, general conditions, reimbursements and insurances. The bill also provides that the construction manager would be authorized to require bonds from the subcontractors or suppliers in an amount equal to 100% of the value of their bid packages for subcontractors or suppliers that are not subject to the bonding requirements under the Little Miller Act. The bonding requirements would have to be specified in the bidding documents. Political subdivisions would be allowed to withhold retainage from the construction manager's progress payments as provided under the existing retainage law.
Status: 3/12/19: (S) first reading
SB 647 – Payment and/or Performance Bonds. Would revise the requirements for the bond required for public projects to protect the public agency that awarded the contract against defective workmanship and materials. Under current law, the bond must cover such defects for one year after the acceptance of a public project for all agencies, except for the Department of Transportation and the Oklahoma Turnpike Authority. The bond's coverage for these two agencies ends one year after project completion. The bill would require the bond to secure against failures as a result of expected usage, weather conditions, defective or inadequate workmanship and materials for a period of up to five years as determined by the awarding public agency after acceptance of the project. The bill would not change the time period for when the bond's coverage ends for the Department and the Authority.
Status: 2/5/19: (S) second reading, referred to General Government
SB 762 – Retainage. Would prohibit retainage from being withheld from contractors on public buildings and public works projects if performance and payment bonds are in place. Under current law, the state bond threshold is $50,000 so that no retainage would be withheld on public contracts exceeding the threshold. Under existing law, the Department of Transportation and the Oklahoma Turnpike Authority are prohibited from requiring retainage on their contracts.
Status: 3/18/19: (S) engrossed to House
Related Bill: HB 1114
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 2454 – Occupational Licensing. Would allow a professional licensing board to issue a license to an out-of-state applicant if he or she is licensed or otherwise authorized in another state to engage in the same occupation or profession, pay the license fee, and certify that he or she is seeking to engage in the occupation or profession within the Eastern Oregon Border Economic Development Region. Applicants granted licenses or other authorization under this process would have to meet all Oregon standards not later than two years following the date of initial granting of the license or other authorization.
Status: 3/4/19: (H) in Economic Development; public hearing held
HB 2588 – Student Loan Servicers. Would require student loan servicers to be licensed and post a surety bond or irrevocable letter of credit in an amount that will be determined through regulations.
Status: 2/25/19: (H) in Business and Labor; public hearing held
Related Bill: SB 279
HB 2913 – Possessory Liens on Motor Vehicles. Would remove the requirement for a person to have a surety bond in effect before making, altering, repairing, transporting, storing, providing services for, supplying materials for or performing labor in connection with a motor vehicle. The repeal would be effective only from the effective date of the bill, if enacted, until July 1, 2020, at which time the bond requirement would be reinstated.
Status: 2/27/19: (S) referred to Judiciary
SB 103 – Industrial Dairy Operations. Would require permit applicants for an industrial dairy operation to post a bond with the Department of Agriculture; the Department would determine the bond amount through regulations. The bond would secure reimbursement to the Department or other entities for any environmental, health, or animal welfare costs resulting from events such as manure spills, improper disposal of animals, excessive applications of manure threatening the water quality or public health, the cleaning of abandoned facilities, and the relocation of animals due to facility closure or permit suspension or revocation.
Status: 1/15/19: (S) referred to Environment and Natural Resources
SB 113 – Motor Vehicle Dealers. Would authorize the court to award reasonable attorney's fees to a retail customer who prevails in an action brought against a vehicle dealer and their surety. The court could award these fees if a written demand was made on the dealer not less than 30 days before commencement of the action requesting compliance or other remedy and the dealer also failed to comply or provide the remedy, including paying the retail customer reasonable attorney's fees and costs that he or she incurred, within 30 days from the date of a written demand.
Status: 3/7/19: (S) in Judiciary; public hearing held
SB 279 – Student Loan Servicers. Would require student loan servicers to be licensed and post a surety bond or irrevocable letter of credit in an amount that will be determined through regulations.
Status: 2/25/19: (S) in Judiciary; public hearing and work session scheduled for 3/19/18
Related Bill: HB 2588
SB 668 – Education Savings Accounts. Would create an education savings account program as part of a school choice measure. The State Treasurer would have to adopt policies that require either a surety bond for education service providers receiving more than $100,000 in program funds or insurance for account holders. Education service providers would have to post a surety bond in an amount equal to the amount of funds received from an education savings account during the school year or provide financial information demonstrating the ability to repay this amount.
Status: 1/24/19: (S) referred to Education, then Student Success, then Ways and Means
SB 848 – Motor Vehicle Dealers. Provides that the current $10,000 limit on the amount that can be recovered from a motor vehicle dealer's license bond or letter of credit would not apply if a person is an assignee of a retail installment contract from a vehicle dealer and payment is made to that person for the benefit of a retail customer.
Status: 2/27/19: (S) referred to Judiciary
CONTRACT SURETY
HB 2410 – Prevailing Wages. Would revise the existing prevailing wage law to require contractors and subcontractors that employ workers on a public works project to directly incur costs of providing fringe benefits or contribute to a trustee or third person under a plan, fund, or program that provides fringe benefits. The bill would revise the existing requirements for a contractor and subcontractor, or their surety, to submit certified statements to a public agency about prevailing wages to include information on the specific amounts a contractor or subcontractor incurred as costs of providing fringe benefits or contributions the contractor or subcontractor made to a trustee or a third person that provided the fringe benefits.
Status: 1/18/19: (H) referred to Business and Labor
HB 2415 – Retainage. Would prohibit a contracting agency from withholding retainage or retaining performance security for any portion of a progress payment that relates to the cost of materials or to equipment stored at the job site for public and private work. Contracting agencies also would no longer have discretion to require retainage or performance security equal to the amount of the retainage. The agency would be prohibited from withholding retainage if security is furnished. Contractors could not withhold retainage from a subcontractor after the project reaches 50% completion if the work is progressing satisfactorily. The bill would establish prompt pay requirements for the release of retainage. It would also require retainage to be held in an interest-bearing escrow account if the project cost exceeds $250,000.
Status: 3/20/18: (H) in Business and Labor; work session scheduled
HB 2711 – Infrastructure. Would require a contractor's liability insurance policy to provide coverage, at a minimum, for all of the tort liability of the contractor or the contractor's business to public or private parties for personal injury or property damage other than personal injury that is subject to the worker's compensation laws. Any policy exclusion resulting in the policy providing less than the required minimum coverage would be contrary to public policy and is void. This would be in addition to the existing requirements to obtain coverage for public liability, personal injury and property damage insurance covering the contractor's work, including coverage for the liability for products and completed operations. A written description of the coverage would be required as evidence that the policy meets these requirements. If the policy does not include all of the coverage in the written description, the court could reform the insurance policy to provide the coverage.
Status: 1/30/19: (H) in Business and Labor, public hearing held
HB 2808 – Infrastructure; P3s. Would establish a clean technology sector development grant program through the Oregon Business Development Department in which grants would be given to qualified lenders to develop and administer loan programs to fund clean technology sector development projects. The program is designed to leverage public and private funds to facilitate P3s for these projects.
Status: 2/4/19: (H) referred to Economic Development with subsequent referral to Ways and Means
HB 3155 – Retainage. Would establish a retainage requirement for school district contracts for services that are required by state or federal law. The bill provides that the retainage would be a minimum percentage of the contract price, but the bill does not specify the actual amount that would be withheld. The retainage would be held until the contract is completed and the school district accepts the contractor's performance.
Status: 3/6/19: (H) referred to Education
SB 413 – P3s. Would allow cities or counties to form a joint district for the purpose of financing the acquisition, design, construction, reconstruction, installation, operation, maintenance and repair of limited-access public highway projects within the proposed district. Tolling would be authorized for these highways. The bill would permit these districts to enter into P3s, design-build contracts, lease agreements, lease-purchase agreements and installment sale arrangements for these projects. The bill would exempt these projects from the existing law's requirements for state tollways and does not specify any procurement requirements.
Status: 1/16/19: (S) referred to Transportation
SB 505 – P3s. Would require the Oregon Broadband Advisory Council to study the expansion of broadband capacity and access. The Council would have to establish a statewide broadband plan, including the use of P3s, and submit a report to the interim committees related to economic development on or before September 15, 2020. The Council would be authorized to propose legislation for the 2021 regular session based on its findings of the study of P3s.
Status: 2/7/19: (S) in Business and General Government; public hearing held
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 178 – Natural Gas Tax. Would impose a tax on the extraction of natural gas in Pennsylvania. The bill would authorize the Department of Revenue (Department) to require a surety bond from nonresident natural persons, or from any foreign entities, not authorized to do business or not having an established place of business in the Commonwealth. The bond would secure the payment of the tax and any penalties that may become due, and the Department would determine the amount required. The Department also could require a bond from any person petitioning for reassessment of any tax assessment over $500 or where the Department believes the ultimate collection of the tax is in jeopardy. The Department also could require a bond from any person who filed a return or made payment more than 30 days late on three or more occasions within a 12-month period. Cash or securities would be accepted in lieu of surety bonds in any of these bond requirements.
Status: 1/28/19: (H) introduced and referred to Environmental Resources and Energy
SB 76 – Various Tax Bonds. Would require transient vendors to register in connection with this tax assessment and post a $500 bond to secure its compliance with a proposed sales and use tax on residential property. The bill also would authorize the Department of Revenue to require a bond from nonresident persons or entities, a building contractor, or a supplier delivering building materials that is not authorized to do business in or does not have a place of business in the Commonwealth and is subject to the proposed sales and use tax. The Department would determine the bond amount. The Department could require a bond from person petitioning for reassessment if the assessment is over $500 or the Department determines the collection of the tax is in jeopardy. Persons who have filed a return or made payment to the department more than 30 days late three or more times in a 12-month period could be required to post a bond.
Status: 2/22/19: (S) introduced and referred to Finance
CONTRACT SURETY
HB 163 – Construction Manager; Design-Build; Infrastructure. Would expand the existing law concerning the use of alternative project delivery methods under the state procurement code to allow the State to use construction managers at-risk, design-bid-build with multiple prime contractors, and design-bid-build with a single prime contractor for public buildings with a project cost exceeding $4,000. Existing law already permits the use of the design-build method.
Status: 1/28/19: (H) introduced; referred to State Government
HB 176 – P3s; Payment and/or Performance Bonds. Would authorize the state and its political subdivisions to enter into P3s for virtually any public project, excluding transportation projects which are authorized under a separate P3 law. The bill would set forth optional provisions for the P3 agreement that could be included if they are consistent with best practices in the P3 industry, including provisions that the development entity may be required to provide performance and payment bonds, parent company guarantees, letters of credit or other acceptable forms of security. The public entity would determine the form of security and the amount required. The public entity also could consider bonding among the criteria for evaluating a P3 proposal. The bill would create the P3 Infrastructure Board to approve P3 projects and develop best practices for P3s in coordination with the Department of Transportation and the Public-Private Transportation Partnership Board for developing the guidelines for procuring and approving P3s. These P3 projects also would be subject to approval in the legislature.
Status: 1/28/19: (H) introduced; referred to State Government
SB 204 – Performance Bonds. Would revise the existing municipal finance laws in Pennsylvania. The bill provides that in order for a local government unit to obtain preliminary approval for the issuance of debt, the unit would have to provide a description of the type and amount of payment or performance bond, letter or credit or other financial security proposed to insure the completion of the project.
Status: 2/5/19: (S) introduced; referred to Local Government
SB 207 – Bond Threshold; Payment and/or Performance Bonds. Would revise the Little Miller Act for local governments to repeal the broad discretion granted to local public contracting entities to accept "any financial security" to secure performance and payment obligations, and to set forth specific acceptable forms of security, including performance and payment bonds. The bill would limit the kinds of security that may be furnished to performance bonds and payment bonds, letters of credit, or escrow accounts equal to 100% of the contract amount. The bill also would increase the threshold for requiring bonds, letters of credit, or an escrow account from $10,000 to $500,000.
Status: 2/5/19: (S) introduced; referred to Local Government
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 5680 – Cosmetology Schools. Would rewrite the law concerning barbers, hairdressers, cosmeticians, manicurists and estheticians, requiring them to be licensed as an appearance enhancement business. The bill would require a licensee to post a surety bond or obtain liability insurance. The bill does not specify an amount or condition for the bond.
Status: 3/15/19: (H) in Corporations; scheduled for hearing and/or consideration on 3/19/19
SB 344 – Uniform Directed Trust Act. Would adopt the Uniform Directed Trust Act. Under the Act, unless the terms of the trust provide otherwise, the rules for a trustee apply to a trust director, including the bond requirement.
Status: 2/13/19: (S) introduced and referred to Judiciary
CONTRACT SURETY
HB 5637 – Bond Threshold; Payment and/or Performance Bonds. Would increase the bond threshold from $50,000 to $150,000 for contracts with the Department of Transportation for road and bridge projects. The law requires a bond in an amount not less than 50% and not more than 100% of the contract price.
Status: 2/27/19: (H) introduced and referred to Finance
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 3263 – Occupational Licensing - Exemptions for Military Personnel and Federal Employees. Would exempt persons from obtaining any license for a profession or occupation required under the State's Consumer Protection Code or the Professions and Occupations Code for persons serving in the U.S. armed forces and virtually every federal employee if the work for the profession is part of their federal employment and they have a valid license from any other recognized jurisdiction. Spouses of U.S. armed forces members also would be exempt from these licensing law requirements while the person serving is stationed in the state if the spouse holds a valid, current license in good standing from the any other recognized jurisdiction. Federal employees, military members, and military spouses would be exempt from obtaining licenses to be insurance adjusters, public adjusters, motor vehicle physical damage appraisers, a surety bondsman, a professional bondsman, and a bail runner if they meet these qualifications. U.S. armed services members and their spouses would be exempt from the licensing fees for nonresident insurance producer and broker licenses. Spouses of U.S. armed services members would be exempt from license requirements under the Education Code if they have a valid, current educator license in good standing from another recognized jurisdiction.
Status: 3/7/19: (S) introduced and read first time; referred to Banking and Insurance
HB 3681 – Education Savings Accounts. Would create an education savings account program as part of a school choice measure. Participating schools receiving $50,000 or more in funds from these accounts would have to post a surety bond in an amount equal to the amount of funds received from an education savings account during the school year or provide financial information demonstrating the ability to repay this amount.
Status: 2/7/19: (H) in Ways and Means; sponsors added/removed
Related Bill: SB 523
HB 3965 – Sellers of Prepaid Entertainment Contracts. Would require sellers of prepaid entertainment contracts to post a bond or other security in an amount not to exceed $250,000 per location. The Administrator would determine the amount required. The bond would secure against losses or damages due to a facility's closing or the seller's bankruptcy. The bill would permit direct actions on the bond, but the surety's liability would not exceed the bond amount. The bond would have to remain in place for 60 days after all services are available to the buyer if the services are not available on the date that the contract is sold. Services provided under the contract include dance lessons or facilities; matching, dating, or social club services or facilities; martial arts training; and health or athletic club services or facilities.
Status: 2/13/19: (H) introduced; referred to Labor, Commerce and Industry
HB 4126 – Money Transmitters. Would revise the amount of the bond or other security required for money transmitters, which currently is $50,000 plus $10,000 per location; $250,000 maximum. The bill provides that the bond or other security would have to be for at least $150,000 to $300,000, based on the dollar volume of money transmissions in the state.
Status: 2/27/19: (H) introduced and referred to Judiciary
HB 4151 – Appraisal Management Companies. Would revise the bond requirement for real estate appraisal management companies to change the bond amount from an amount not more than $50,000 to an amount equal to $25,000 and to eliminate the option to post financial statements in lieu of the bond. The bill would permit direct actions on the bond, provided that they are limited to actual damages and do not include attorney fees and punitive damages.
Status: 2/28/19: (H) introduced and referred to Labor, Commerce and Industry
SB 330 – Occupational Licensing. Would require the Department of Labor, Licensing, and Regulation, the Senate Committee on Legislative Oversight, and the House of Representatives Committee on Legislative Oversight (Committees) to review the Department's current occupational regulations. The Department would have to provide a report to the Committees to identify those regulations that the Department intends to repeal, amend, or leave in place. The Committees would use the Department's report to identify whether present, significant, or substantiated harms would exist in the absence of the regulation that would warrant government intervention. If these harms exist, the Committees would have to consider alternative provisions that would be the least restrictive and impose the lowest burdens and costs while protecting consumers from harm.
Status: 1/8/19: (S) introduced and referred to Labor, Commerce and Industry
SB 523 – Education Savings Accounts. Would create an education savings account program as part of a school choice measure. Participating schools receiving $50,000 or more in funds from these accounts would have to post a surety bond in an amount equal to the amount of funds received from an education savings account during the school year or provide financial information demonstrating the ability to repay this amount.
Status: 2/14/19: (S) introduced and referred to Education
Related Bill: HB 3681
CONTRACT SURETY
SB 530 – Bond Threshold; Construction Manager; Design-Build; Payment and/or Performance Bonds. Would increase the state bond threshold from $50,000 to $100,000 for projects let through the design-bid-build method. The bill also provides that bonds or security may be required for one or more designated portions of a project for construction managers at-risk (CMs-at-risk), design-build, or design-build-finance-operate-maintain contracts for 100% of the value of the designated portion of the project. The bill would prohibit construction from commencing until the bonds or security are in place. Under existing law, CMs-at-risk may be exempted from providing bonds or security for the preconstruction and design phase if construction does not commence until the performance bond and payment bond requirements are met.
Status: 2/19/19: (S) introduced and referred to Finance
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 16 – Wind Energy Facilities - Decommissioning. Would require a form of financial security for wind turbines to secure the decommissioning of the site. Surety bonds would be accepted to fulfill this requirement.
Status: 3/11/19: (S) delivered to the Governor
SB 166 – Occupational Licensing. Would require the legislature to review and make a recommendation for the improvement of occupational licensing in the state.
Status: 2/11/19: (S) in State Affairs: Tabled, Passed
CONTRACT SURETY
NEW LAW: HB 1021 – Bid Bonds. Provides that bid bonds furnished for public improvement contracts would be destroyed rather than being returned to unsuccessful bidders.
Status: 3/1/19: signed by the Governor; effective July 1, 2019
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 666 – Sports Wagering. Would authorize the Tennessee Sports Wagering Commission to adopt regulations that require a person operating a sports wagering business to post a surety bond in connection with obtaining a permit.
Status: 2/11/19: (H) in State: referred to subcommittee Departments and Agencies
Related Bill: SB 1055
HB 1163 – Travel Promoters. Would require travel promoters to be licensed and post a $10,000 bond per business location or provide audited financial statements to demonstrate a net worth of at least $1 million. The bill would permit direct actions on the bond. The bond would have to be in place for two years after the promoter ceases to do business in the state. Travel promoters who have been in operation for seven consecutive years could apply for an exemption from the bond requirement.
Status: 3/13/19: (H) placed on subcommittee calendar, Consumer Subcommittee, for 3/20/19
Related Bill: SB 634
HB 1182 – Debt Resolution Services Providers. Would require debt resolution services providers to the licensed and post a surety bond in an amount not to exceed $50,000. The commissioner of the Department of Commerce and Insurance would determine the bond amount.
Status: 3/13/19: (H) placed on calendar, Commerce, for 3/19/19
Related Bill: SB 1013
HB 1294 – Horse Racing - Pari-mutuel Wagering. Would require persons conducting a horse race and pari-mutuel wagering to obtain a license. The Horse Racing Commission would be authorized to require the licensee to post a surety bond or other security conditioned on the payment of all taxes due to the State, as well as the payment of operating expenses, including purses and awards to owners of horses participating in races.
Status: 2/13/19: (H) in State: referred to subcommittee Departments and Agencies
Related Bill: SB 522
HB 1421 – Horse Racing Commission. Would require members of the Tennessee Horse Racing Commission to post a $50,000 surety bond to secure the faithful performance of their duties. The bill also provides that a cash bond may be required in connection with a license to conduct a race to secure the licensee's performance. The bond amount would be determined by regulation.
Status: 3/13/19: (H) placed on subcommittee calendar, Departments and Agencies Subcommittee, for 3/20/19
Related Bill: 817
SB 522 – Horse Racing - Pari-mutuel Wagering. Would require persons conducting a horse race and pari-mutuel wagering to obtain a license. The Horse Racing Commission would be authorized to require the licensee to post a surety bond or other security conditioned on the payment of all taxes due to the State, as well as the payment of operating expenses, including purses and awards to owners of horses participating in races.
Status: 2/7/19: (S) passed on second consideration, refer to Government Operations
Related Bill: HB 1294
SB 634 – Travel Promoters. Would require travel promoters to be licensed and post a $10,000 bond per business location or provide audited financial statements to demonstrate a net worth of at least $1 million. The bill would permit direct actions on the bond. The bond would have to be in place for two years after the promoter ceases to do business in the state. Travel promoters who have been in operation for seven consecutive years could apply for an exemption from the bond requirement.
Status: 3/14/19: (S) engrossed; ready for transmission to House
Related Bill: HB 1163
SB 817 – Horse Racing Commission. Would require members of the Tennessee Horse Racing Commission to post a $50,000 surety bond to secure the faithful performance of their duties. The bill also provides that a cash bond may be required in connection with a license to conduct a race to secure the licensee's performance. The bond amount would be determined by regulation.
Status: 2/11/19: (S) passed on second consideration, refer to Government Operations
Related Bill: HB 1421
SB 1013 – Debt Resolution Services Providers. Would require debt resolution services providers to the licensed and post a surety bond in an amount not to exceed $50,000. The commissioner of the Department of Commerce and Insurance would determine the bond amount.
Status: 3/15/19: (S) placed on Regular Calendar for 3/18/19
Related Bill: HB 1182
SB 1055 – Sports Wagering. Would authorize the Tennessee Sports Wagering Commission to adopt regulations that require a person operating a sports wagering business to post a surety bond in connection with obtaining a permit.
Status: 2/11/19: (S) passed on second consideration, refer to Government Operations
Related Bill: HB 666
CONTRACT SURETY
HB 923 – Construction Manager. Provides that the current pilot program authorizing the Department of Transportation to use the construction manager/general contractor method would become a permanent program. Under current law, the request for proposals must include a requirement that the proposer submit evidence that establishes the contractor has the capacity to obtain the required bonding and insurance for the project. The bill would revise the restrictions on the use of this project delivery method. Currently, the DOT may select up to three projects using the CM/GC method for the pilot program. The aggregate total construction costs of the pilot program projects shall not exceed $200 million. The first CM/GC project shall not exceed $70 million in construction costs, and no CM/GC project shall exceed $100 million in construction costs. The bill provides that the DOT would be able to use the CM/GC method for five projects during each fiscal year. Projects that exceed $70 million in construction costs would be subject to approval from the legislature. The pilot program will expire on July 1, 2019, under existing law.
Status: 3/13/19: (H) placed on subcommittee calendar, Infrastructure Subcommittee, for 3/19/19
Related Bill: SB 77
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SB 779 – Construction Manager. Provides that the current pilot program authorizing the Department of Transportation to use the construction manager/general contractor method would become a permanent program. Under current law, the request for proposals must include a requirement that the proposer submit evidence that establishes the contractor has the capacity to obtain the required bonding and insurance for the project. The bill would revise the restrictions on the use of this project delivery method. Currently, the DOT may select up to three projects using the CM/GC method for the pilot program. The aggregate total construction costs of the pilot program projects shall not exceed $200 million. The first CM/GC project shall not exceed $70 million in construction costs, and no CM/GC project shall exceed $100 million in construction costs. The bill provides that the DOT would be able to use the CM/GC method for five projects during each fiscal year. Projects that exceed $70 million in construction costs would be subject to approval from the legislature. The pilot program will expire on July 1, 2019, under existing law.
Status: 3/13/19: (S) placed on Transportation and Safety Committee calendar for 3/20/19
Related Bill: HB 923
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 321 – Health Clubs. Would change health spa to health club and increase the maximum amount of the security required from $50,000 to $75,000. Under current law, the secretary of state prescribes the amount of security required for an applicant in the amount determined sufficient by the secretary to protect the health club's total membership; $20,000 minimum, $50,000 maximum.
Status: 3/5/19: (H) left in Business and Industry Committee
HB 592 – Depositories. Would allow credit unions to act as a depository for school districts. Current law only allows banks to serve in this role. Credit unions would be subject to the bond requirement for depositories required in existing law, which must be equal to the estimated highest daily balance of all deposits that the school district will have in the depository during the term of the contract as determined by the board of trustees of the district, less any applicable insurance through the Federal Deposit Insurance Corporation. Credit unions would be able to deduct any applicable National Credit Union Share Insurance Fund insurance from their bond amount.
Status: 2/20/19: (H) referred to Public Education
Related Bill: SB 398
HB 924 – Concrete Batch Plants. Provides that a commissioners court by order may require the owner of a concrete batch plant operating in the county to file a surety bond in an amount determined by the commissioners court, and conditioned that the owner will pay to the county an amount to repair any damage to a highway caused by the operation of vehicles used in the operation of the plant.
Status: 2/25/19: (H) read first time and referred to County Affairs
HB 1275 – Sports Wagering. Would authorize sports betting in the state and would require persons operating a sports betting program to obtain a permit. The executive director for the Texas Commission of Licensing and Regulation would be authorized to require permit holders to post a bond or other security in an amount to be determined by regulations.
Status: 2/27/19: (H) referred to Licensing and Administrative Procedures
HB 2231 – Pharmacy Benefit Managers. Would establish standards for pharmacy benefit networks. Unless otherwise required by the State Board of Pharmacy and the Insurance Commissioner, a pharmacy benefit manager may not require, as a condition of participating in a pharmacy benefit network, that a pharmacist or pharmacy obtain a performance or surety bond or other financial guarantee that is in excess of the requirements imposed by the Texas State Board of Pharmacy or state or federal law.
Status: 3/6/19: (H) referred to Insurance
HB 2269 – Waste Disposal Facilities; Nuclear Waste. Would allow a compact waste disposal facility license holder to accept additional nuclear waste in certain cases. If the licensee does not have adequate capacity to accept the additional waste, the licensee could accept it if it posts a performance bond that is conditioned on the construction of additional capacity or provide an alternative solution for handling the waste. The bill also would eliminate the specification for the amount required for unplanned actions, which must be at least $20 million under current law. Surety bonds are accepted to meet the requirement.
Status: 3/6/19: (H) referred to Environmental Regulation
Related Bill: SB 1021
SB 398 – Depositories. Would allow credit unions to act as a depository for school districts. Current law only allows banks to serve in this role. Credit unions would be subject to the bond requirement for depositories required in existing law, which must be equal to the estimated highest daily balance of all deposits that the school district will have in the depository during the term of the contract as determined by the board of trustees of the district, less any applicable insurance through the Federal Deposit Insurance Corporation. Credit unions would be able to deduct any applicable National Credit Union Share Insurance Fund insurance from their bond amount.
Status: 2/14/19: (S) read first time and referred to Education
Related Bill: HB 592
SB 731 – Fantasy Sports Contests. Would require fantasy sports contest operators to adopt procedures for operating the contest that includes segregating the fantasy sports contest players' funds from its operational funds. The operator would have to maintain a reserve in the form of a bond or other security equal to or greater than the deposits in the fantasy contest players' accounts to secure the players' funds.
Status: 3/1/19: (S) referred to Business and Commerce
Related Bill: HB 1544
SB 889 – Social Gaming Operations. Would authorize social gaming operations in the state and require the operators to be licensed and post a $25,000 surety bond. The bond would be conditioned on the payment of judgments and penalties against the licensee and the settling of tax debts.
Status: 3/1/19: (S) referred to Business and Commerce
SB 987 – Hazardous Waste Landfill Facility. Would allow a permit to be issued for a hazardous waste landfill facility that would be located on the recharge zone of a major aquifer that is not a sole source aquifer only in certain cases, which would include providing a bond in an amount sufficient to ensure the operational, closure, and post-closure responsibilities of the facility. The bond could not be for less than $1 million. The bond would be required in addition to any other financial assurance for the facility.
Status: 3/1/19: (S) referred to Water and Rural Affairs
SB 1011 – Health Clubs. Would change health spa to health club and increase the maximum amount of the security required from $50,000 to $75,000. Under current law, the secretary of state prescribes the amount of security required for an applicant in the amount determined sufficient by the secretary to protect the health club's total membership; $20,000 minimum, $50,000 maximum.
Status: 3/7/19: (S) read first time and referred to Business and Commerce
Related Bill: HB 321
SB 1021 – Waste Disposal Facilities; Nuclear Waste. Would allow a compact waste disposal facility license holder to accept additional nuclear waste in certain cases. If the licensee does not have adequate capacity to accept the additional waste, the licensee could accept it if it posts a performance bond that is conditioned on the construction of additional capacity or provide an alternative solution for handling the waste. The bill also would eliminate the specification for the amount required for unplanned actions, which must be at least $20 million under current law. Surety bonds are accepted to meet the requirement.
Status: 3/7/19: (S) read first time and referred to Natural Resources and Economic Development
Related Bill: HB 2269
SB 1193 – Motor Vehicle Dealers. Would increase the amount of the license bond for motor vehicle dealers from $25,000 to $50,000. The bill also would eliminate the option to post other security in lieu of the bond. The bill also would allow the Department of Motor Vehicles to make claims against the bond for the amount of the fees waived for titles for purchasers of a vehicle who apply for the title because the dealer went out of business and has not applied for the vehicle title.
Status: 3/7/19: (S) read first time and referred to Transportation
CONTRACT SURETY
HB 589 – Retainage; Release of Liens. Would repeal the requirement to retain 10% and instead provides that the amount of retainage would be determined by contract and could not exceed 10% of the payment request for private work. The bill also would increase the total amount of liens used for determining the amount required for release of lien bonds from $40,000 to $60,000. Currently, the bond must be for double the lien claim, unless the total exceeds $50,000, in which case the bond must be for one and one-half times the lien claim. The bill would establish an electronic system for filing claims for private construction projects, and revise existing lien claim procedures to incorporate the use of this electronic system. The bill also would set forth new procedures for filing a notice of commencement, notice of demand, and a notice of furnishing in connection with the establishment of this website.
Status: 2/20/19: (H) read first time, referred to Business and Industry
HB 2135 – Retainage. Would revise the existing law for public works projects to provide that for contracts exceeding $1 million, a governmental entity may not withhold retainage in an amount that exceeds 5% of the contract price, or the established rate of retainage for materials and equipment that are delivered on-site to be installed. If the contract is for a civil works project, retainage could not exceed 2% of the contract price, excluding interest earned on the retainage, after the governmental entity has beneficial use of the project. The bill would prohibit a governmental entity from withholding retainage after completion of the contract, including during the warranty period; or for requiring the prime contractor, after completion of the contract, to perform work on manufactured goods or systems that were specified by the designer of record and properly installed by the contractor. Currently, there is no limit on the amount of retainage a governmental entity can withhold, but any retainage in excess of 5% must be placed in an escrow account.
Status: 3/6/19: (H) referred to State Affairs; scheduled for public hearing on 3/20/19
HB 2579 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds. Would authorize the use of the construction manager at-risk project delivery method for state highway projects. The bill provides that if a fixed contract amount or a guaranteed maximum price has not been determined when the contract is awarded, the amount of the performance bond and the payment bond would have to be in an amount equal to the construction cost estimate as listed in the request for proposals. The construction manager also may furnish a bid bond to secure the delivery of the required performance and payment bonds when a guaranteed maximum price is established.
Status: 3/11/19: (H) read first time and referred to Transportation
HB 2585 – Payment and/or Performance Bonds; Prequalification. Would allow a governmental entity to implement a prequalification process to eliminate unqualified offerors from consideration for a civil works project under a competitive bidding method authorized under existing law. The bill would set forth the factors that the governmental entity could consider for prequalifying a contractor, including the potential offeror's ability and capacity to provide performance and payments bonds.
Status: 3/11/19: (H) read first time and referred to State Affairs
HB 2886 – Bond Threshold. Would increase the state bond threshold for furnishing a payment bond from $25,000 to $100,000. Current law provides that the state bond threshold for furnishing performance bonds is $100,000.
Status: 3/12/19: (H) read first time and referred to State Affairs
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 52 – Electronic Notaries. Would allow a notarization to be performed remotely. Notaries performing remote notarizations would have to post a $5,000 bond in addition to the bond required for all notaries. The bond would have to be in place for the date that the remote notarization date is performed until the end of the remote notary's commission. The bond would be conditioned on payment to any person upon the remote notary's misconduct while acting in the scope of their commission.
Status: 2/13/19: passed both Houses and sent to enrolling
HB 90 – Occupational Licensing. Would create a procedure for an individual with a criminal record may apply to the Division of Occupational and Professional Licensing for a determination of whether the individual's criminal record would disqualify the individual from obtaining a license in an occupation or profession regulated under existing law if the individual has completed or were to complete all other licensing requirements for the occupation or profession.
Status: 3/15/19: (H) passed both Houses and sent to enrolling
HB 314 – Trustees. Would adopt the Uniform Directed Trust Act, which would require the trust director for a directed trust to comply with the existing bond requirement for trustees. The existing law requires a bond under the Uniform Trust Code's model in which the trustee must post a bond only if the court requires one or it is required by the terms of the trust and the court has not dispensed with the requirement.
Status: 3/15/19: (H) passed both Houses and sent to enrolling
HB 425 – Public Officials. Would repeal the existing law requiring surety bonds for municipal officials and instead provides that municipalities would have to obtain a fidelity bond or crime insurance. The municipality would determine the amount. Under current law, for cities of the first and second class, the surety bond must be in the amount of at least $10,000 for city council members and at least $20,000 for the auditor.
Status: 3/15/19: (H) passed both Houses and sent to enrolling
SB 53 – Guardianships and Conservatorships. Would revise the existing bond requirement for guardians and conservators to permit the use of an alternative asset-protection agreement in lieu of the bond. Existing law allows the court to accept a deposit of collateral in lieu of the bond, such as securities or a mortgage of real property. The law requires the bond to be in an amount equal to the aggregate capital value of the conservatorship estate, plus one year's estimated income, less the value of property deposited under an arrangement requiring a court order for its removal and real property the conservator lacks power to sell or convey without specific court authorization.
Status: 3/14/19: (S) to Senate file for bills not passed
SB 177 – Scholarship Programs. Would establish a scholarship program for students with special needs as part of a school choice measure. The bill would require schools that participate in the program and receive $100,000 or more in scholarship funds to post a surety bond in an amount equal to the amount of funds expected to be received in the school year or provide financial information demonstrating its financial viability.
Status: 3/14/19: (S) to Senate file for bills not passed
SB 181 – Pari-mutuel Wagering. Would allow for pari-mutuel horse racing and wagering and would require permittees for wagering to post a minimum $5,000 surety bond or other security to secure the payment of all funds due to the Pari-Mutuel Horse Racing Commission and meet all obligations that the Commission imposes.
Status: 3/14/19: (S) to Senate file for bills not passed
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 2028 – Occupational Regulations. Would establish a sunrise process for occupational regulations. Any bill that requires the Department of Professional and Occupational Regulation to establish new regulations or that increases the existing level of regulation for an occupation would be subject to an evaluation. The Board for Professional and Occupational Regulation would have to prepare an evaluation of the legislation using the criteria set forth in the existing law to determine whether certification, registration, or licensing should be required.
Status: 3/4/19: (H) sent to the Governor; action deadline: 3/26/19
HB 2038 – Service Contract Providers. Would eliminate the option in existing law for extended service contract providers to post a bond or letter of credit as proof of financial stability. The bond or letter of credit must be in an amount ranging from $10,000 to $90,000, based on the dollar amount of the provider's unexpired extended service contracts. The bond or letter of credit is required in addition to the minimum net worth that providers must meet of at least $100 million or obtaining a liability insurance policy.
Status: 2/21/19: (H) sent to the Governor; action deadline: 3/26/19
Related Bill: SB 1188
HB 2547 – Electric Utilities. Would require regulations adopted to implement the provisions in the bill concerning eligible customers who generate electricity to participate in a net metering program to include requirements for minimal capitalization or a bond or other security that is adequate for consumer protection.
Status: 2/28/19: (H) sent to the Governor; action deadline: 3/26/19
Related Bill: SB 1769
SB 1091 – Solar Energy Infrastructure - Decommissioning. As amended, this bill would require an owner or developer of real property that has certified solar energy equipment, facilities, or devices on the site to enter into a written agreement to decommission equipment, facilities, or devices. A form of financial assurance would be required in an amount not to exceed the total of the projected cost of decommissioning, which includes the net salvage value of such equipment, facilities, or devices, plus a reasonable allowance for estimated administrative costs related to a default of the owner or developer, and an annual inflation factor. Surety bonds or other security would be accepted to meet this requirement. As introduced, the bond would have had to be for $10,000 per acre of land for the facility and would have had to secure against damages from the release of materials directly related to solar energy production or transmission facilities and costs for reclamation, decommissioning, and environmental liabilities.
Status: 2/20/19: (S) enrolled and sent to the Governor; action deadline: 3/26/19
SB 1126 – Casino Gaming Operations. Would require persons operating a casino gaming operation to obtain a license and provide a surety bond. The Virginia Lottery Board would determine the bond amount, which would have to be sufficient to cover any indebtedness that the licensee may incur to the state.
Status: 3/11/19: (S) sent to the Governor; action deadline: 3/26/19
Related Bills: SB 1503, and SB 1706
SB 1188 – Service Contract Providers. Would eliminate the option in existing law for extended service contract providers to post a bond or letter of credit as proof of financial stability. The bond or letter of credit must be in an amount ranging from $10,000 to $90,000, based on the dollar amount of the provider's unexpired extended service contracts. The bond or letter of credit is required in addition to the minimum net worth that providers must meet of at least $100 million or obtaining a liability insurance policy.
Status: 2/27/19: (S) sent to the Governor; action deadline: 3/26/19
Related Bill: HB 2038
NEW LAW: SB 1271 – Blanket Bond - Oil and Gas Wells. Would revise the amount of the blanket bond that may be furnished for oil and gas wells, which currently must be in an amount ranging from $25,000 to $100,000 based on the number of wells that the permittee operates. The bill would require a bond ranging from $25,000 to $200,000 and would adjust the number of wells that may be covered by the blanket bond in connection with this increased amount. For individual wells, the law requires a surety bond or a cash bond for at least $10,000 per well, plus $2,000 per acre of disturbed land. The bill would authorize requiring additional bonding if the well would be drilled in Tidewater Virginia.
Status: 3/12/19: approved by the Governor; Chapter 351; effective 7/1/19
SB 1481 – Driver Training Schools. Would permit the Department of Motor Vehicles to collect on the bond required of driver training schools if the school violates an applicable law or regulation. Current law requires a $100,000 bond for Class A schools and a $5,000 bond for Class B schools.
Status: 3/4/19: (S) sent to the Governor; action deadline: 3/26/19
SB 1751 – Receiver Court Bond. Would authorize the court to require a receiver for a unit owners or property owners association to post a bond with or without surety.
Status: 2/20/19: (S) enrolled and sent to the Governor; action deadline: 3/26/19
SB 1769 – Electric Utilities. Would require regulations adopted to implement the provisions in the bill concerning eligible customers who generate electricity to participate in a net metering program to include requirements for minimal capitalization or a bond or other security that is adequate for consumer protection.
Status: 2/20/19: (S) enrolled and sent to the Governor; action deadline: 3/26/19
Related Bill: HB 2547
CONTRACT SURETY
NEW LAW: HB 2290 – Bid Bonds; Payment and/or Performance Bonds; Retainage. Would establish a management agreement for James Madison University (University), which would implement an existing law that permits any institution of public education in Virginia to be granted additional operating authority in information technology, procurement and capital projects. Under the law, colleges must obtain payment and performance bonds for any construction project in excess of $1 million, and bonding may be required for contracts below this threshold. Bid, payment, and performance bonds would be required for construction contracts exceeding $1 million and may be required for contracts under the threshold under this bill. Bid bonds would have to be equal to 5% of the contract price. The bill provides that performance bonds would have to be equal to the construction contract price, except for transportation related projects, in which case the University could decide the bond amount. Payment bonds would have to be equal to the construction contract amount in all cases. The construction contractor would be authorized to require subcontractors to furnish payment bonds equal to the amount of the subcontract. The bill would allow a certified check or escrow account to be furnished in lieu of the bonds. The University would have discretion whether to require bid, payment, and performance bonds for contracts for goods and services. The bill would establish a one-year statute of limitations for the University to file claims on the performance bond and would set forth procedures for payment bond claims. The bill implements the law's requirement setting retainage at not more than 5%. The bill sets forth procedures for prequalifying contractors. If the contractor can obtain a bond from a surety that is on the U.S. Department of the Treasury's Circular 570 in an amount required for a contract, this would be sufficient evidence of the contractor's financial ability to perform on the contract.
Status: 2/21/19: approved by the Governor; Chapter 124; effective 7/1/19
Related Bill: SB 1386
NEW LAW: SB 1386 – Bid Bonds; Payment and/or Performance Bonds; Retainage. Would establish a management agreement for James Madison University (University), which would implement an existing law that permits any institution of public education in Virginia to be granted additional operating authority in information technology, procurement and capital projects. Under the law, colleges must obtain payment and performance bonds for any construction project in excess of $1 million, and bonding may be required for contracts below this threshold. Bid, payment, and performance bonds would be required for construction contracts exceeding $1 million and may be required for contracts under the threshold under this bill. Bid bonds would have to be equal to 5% of the contract price. The bill provides that performance bonds would have to be equal to the construction contract price, except for transportation related projects, in which case the University could decide the bond amount. Payment bonds would have to be equal to the construction contract amount in all cases. The construction contractor would be authorized to require subcontractors to furnish payment bonds equal to the amount of the subcontract. The bill would allow a certified check or escrow account to be furnished in lieu of the bonds. The University would have discretion whether to require bid, payment, and performance bonds for contracts for goods and services. The bill would establish a one-year statute of limitations for the University to file claims on the performance bond and would set forth procedures for payment bond claims. The bill implements the law's requirement setting retainage at not more than 5%. The bill sets forth procedures for prequalifying contractors. If the contractor can obtain a bond from a surety that is on the U.S. Department of the Treasury's Circular 570 in an amount required for a contract, this would be sufficient evidence of the contractor's financial ability to perform on the contract.
Status: 2/21/19: approved by the Governor; Chapter 125; effective 7/1/19
Related Bill: HB 2290
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1124 – Degree-Granting Educational Institutions. Would revise existing law concerning the surety bond or other security, and the Student Achievement Council Tuition Recovery Trust Fund, required for degree-granting institutions to provide that students could make claims against the bond and the recovery fund for any damages suffered as a result of program closures and violations of the law governing for-profit degree-granting institutions and private career schools. The bill would also allow the Student Achievement Council to eliminate the bond requirement for any degree-granting institution if the recovery fund has been met and the Council determines that students would be adequately protected without a surety bond or other security in place.
Status: 2/15/19: (H) referred to Appropriations
HB 1171 – Fidelity Bonds. Provides that the board of directors of a state trust company would have to require good and sufficient fidelity bonds and liability insurance that covers the state trust company and all of its active directors, officers, managers, and employees, except as otherwise permitted by the Director of the Department of Financial Institutions (Director) through specified terms and conditions. The fidelity bond would have to indemnify the company for losses that it sustains as a result of the dishonest, fraudulent, or criminal act or omission committed or omitted by directors, officers, managers, and employees. The board of directors would have to prescribe the bond amount required at least once per year. The Director would be authorized to adopt regulations for bond coverage to provide more specific requirements if the regulations are "necessary to conform to the market availability of certain bond and insurance coverages".
Status: 1/25/19: (H) referred to Rules 2 Review
Related Bill: SB 5107
HB 1259 – Guardianships and Conservatorships. Would revise the existing law for guardians and conservators to allow the court to require an alternative asset protection arrangement to be furnished in lieu of the surety bond. The bill provides that the bond would have to be in the amount of the aggregate capital value of the estate, plus the estimated income for the accounting and report review interval, less the value of property deposited under an asset protection arrangement requiring a court order for its removal and real property the conservator lacks power to sell or convey without specific court authorization. Current law provides that the court determines the bond amount based on the value of the estate.
Status: 1/30/19: (H) in Civil Rights & Judiciary; public hearing held
HB 1752 – Contractors. Would require a work group to be convened to consider additional safeguards for consumers who engage contractors. The work group would have to report on its recommendations for consumer protections from contractors, including whether the bond amounts required in existing law for a license bond are sufficient and appropriate to protect consumers, workers, and suppliers and to meet tax obligations. Existing law requires general contractors to post a $12,000 license bond and specialty contractors must post a $6,000 license bond. The bond is conditioned that the contractor will pay all persons performing labor, including employee benefits, pay all taxes and contributions due to the state, and pay all persons furnishing material or renting or supplying equipment to the contractor, and pay all judgments against the contractor due to breach of contract, including improper work in the conduct of the contracting business. The law permits direct actions on the bond and the surety's aggregate liability cannot exceed the face amount of the bond.
Status: 2/18/19: (H) referred to Rules 2 Review
HB 1770 – Occupational Regulations. Would require the least restrictive regulation to be adopted if it is determined that an occupational regulation is needed to protect consumers. The bill follows the ALEC model for determining what the least restrictive regulation is in that required bonding and insurance would be considered more restrictive. The standing committees in the legislature would be charged with reviewing the occupational regulations under their jurisdiction using these standards in a five-year cycle that the bill would create. The committees would have to report on their recommendations for the occupational regulations that they reviewed. Any changes to these regulations would have to be the least restrictive option. The bill provides that if the need for an occupational regulation is to protect consumers against potential damages from failure by providers to complete a contract fully or up to standards, the recommended course of action should be to require that providers be bonded. The bill also would establish a process for persons with a criminal record to file a preliminary license application with the occupational licensing board to determine whether their criminal record disqualifies them for an occupational license.
Status: 2/20/19: (H) in Consumer Protection and Business; public hearing held
SB 5107 – Fidelity Bonds. Provides that the board of directors of a state trust company would have to require good and sufficient fidelity bonds and liability insurance that covers the state trust company and all of its active directors, officers, managers, and employees, except as otherwise permitted by the Director of the Department of Financial Institutions (Director) through specified terms and conditions. The fidelity bond would have to indemnify the company for losses that it sustains as a result of the dishonest, fraudulent, or criminal act or omission committed or omitted by directors, officers, managers, and employees. The board of directors would have to prescribe the bond amount required at least once per year. The Director would be authorized to adopt regulations for bond coverage to provide more specific requirements if the regulations are "necessary to conform to the market availability of certain bond and insurance coverages".
Status: 3/11/19: (H) public hearing held in Consumer Protection and Business; scheduled for executive session on 3/19/19
Related Bill: HB 1171
SB 5235 – Plumbing Contractors. Would require plumbing contractors to post a $6,000 license bond or assigned savings account. The bond would be conditioned that the contractor will pay persons performing labor, including employee benefits, for the contractor, pay all taxes and contributions due to the state, and pay all persons furnishing material or renting or supplying equipment to the contractor, and pay all amounts that may be adjudged against the contractor by reason of breach of contract, including improper work. Direct actions against the bond would be permitted, but the surety's aggregate liability would not exceed the bond amount.
Status: 1/16/19: (S) introduced and referred to Labor & Commerce
SB 5604 – Guardianships and Conservatorships. Would revise the existing law for guardians and conservators to allow the court to require an alternative asset protection arrangement to be furnished in lieu of the surety bond. The bill provides that the bond would have to be in the amount of the aggregate capital value of the estate, plus the estimated income for the accounting and report review interval, less the value of property deposited under an asset protection arrangement requiring a court order for its removal and real property the conservator lacks power to sell or convey without specific court authorization. Current law provides that the court determines the bond amount based on the value of the estate.
Status: 3/8/19: (H) in Civil Rights and Judiciary; scheduled for public hearing on 3/22/19
Related Bill: HB 1259
SB 5795 – Contractors. Would require a work group to be convened to consider additional safeguards for consumers who engage contractors. The work group would have to report on its recommendations for consumer protections from contractors, including whether the bond amounts required in existing law for a license bond are sufficient and appropriate to protect consumers, workers, and suppliers and to meet tax obligations. Existing law requires general contractors to post a $12,000 license bond and specialty contractors must post a $6,000 license bond. The bond is conditioned that the contractor will pay all persons performing labor, including employee benefits, pay all taxes and contributions due to the state, and pay all persons furnishing material or renting or supplying equipment to the contractor, and pay all judgments against the contractor due to breach of contract, including improper work in the conduct of the contracting business. The law permits direct actions on the bond and the surety's aggregate liability cannot exceed the face amount of the bond.
Status: 3/6/19: (H) first reading, referred to Labor and Workplace Standards; scheduled for public hearing on 3/18/19 and for executive session on 3/21/19
Related Bill: HB 1752
CONTRACT SURETY
HB 1202 – Bond Waiver; Payment and/or Performance Bonds; Retainage; Small Businesses. Would permit performance and payment bonds and retainage to be waived for mini-businesses and micro-businesses on state and local contracts less than $150,000. Current law permits such waivers for contracts under $35,000 for small businesses. The existing law provides that if bonds and retainage are waived, the public owner assumes liability for the contractor's nonpayment of laborers, mechanics, subcontractors, material persons, suppliers, and taxes for the project. The bill also would increase the size of the public works contract that can be let to small contractors through a small works roster from $300,000 to $500,000. The bill would allow the public entity to waive retainage in these projects.
Status: 2/8/19: (H) referred to Appropriations
HB 1295 – Construction Manager; Design-Build. Would eliminate the restrictions on the number of projects delivered using the design-build and construction manager project delivery methods. The bill also would reduce the threshold for using design-build for any project from $10 million to $2 million and the bill would eliminate additional qualifications that must be met to use the design-build delivery method for projects between $2 million and $10 million.
Status: 3/9/19: (S) first reading, referred to State Government, Tribal Relations and Elections
Related Bill: SB 5656
HB 1359 – Payment and/or Performance Bonds; Retainage; Small Businesses. Would permit performance and payment bonds and retainage to be waived for small businesses on state and local contracts less than $50,000. Current law permits such waivers for contracts under $35,000 for small businesses. The existing law provides that if bonds and retainage are waived, the public owner assumes liability for the contractor's nonpayment of laborers, mechanics, subcontractors, material persons, suppliers, and taxes for the project. The bill also would increase the size of the public works contract that can be let to small contractors through a small works roster from $300,000 to $500,000.
Status: 3/4/19: (H) placed on second reading by Rules
Related Bill: SB 5418
HB 1498 – Infrastructure; P3s. Would create a competitive grant and loan program to award funding to eligible applicants for the expansion of access to broadband service in unserved and under-served areas of the State. Priority would be given in awarding these funds to P3s that are deploying broadband infrastructure from areas currently served with broadband service to areas currently lacking access to broadband services.
Status: 3/11/19: (S) in Environment, Energy and Tachnology; public hearing scheduled for 3/20/19
Related Bill: SB 5511
SB 5418 – Payment and/or Performance Bonds; Retainage; Small Businesses. Would permit performance and payment bonds and retainage to be waived for small businesses on state and local contracts less than $50,000. Current law permits such waivers for contracts under $35,000 for small businesses. The existing law provides that if bonds and retainage are waived, the public owner assumes liability for the contractor's nonpayment of laborers, mechanics, subcontractors, material persons, suppliers, and taxes for the project. The bill also would increase the size of the public works contract that can be let to small contractors through a small works roster from $300,000 to $500,000.
Status: 3/12/19: (H) first reading; referred to Local Government
Related Bill: HB 1359
SB 5511 – Infrastructure; P3s. Would create a competitive grant and loan program to award funding to eligible applicants for the expansion of access to broadband service in unserved and under-served areas of the State. Priority would be given in awarding these funds to P3s that are deploying broadband infrastructure from areas currently served with broadband service to areas currently lacking access to broadband services.
Status: 3/8/19: (H) in Innovation, Technology and Economic Development; public hearing scheduled for 3/19/19
Related Bill: HB 1498
SB 5618 – Bond Waiver; Payment and/or Performance Bonds; Retainage; Small Businesses. Would revise the existing law permitting performance and payment bonds and retainage to be waived for small businesses on state and local contracts less than $35,000 and to permit the threshold amount to be adjusted for inflation every five years. The existing law provides that if bonds and retainage are waived, the public owner assumes liability for the contractor's nonpayment of laborers, mechanics, subcontractors, material persons, suppliers, and taxes for the project. The bill also would increase the size of the public works contract that can be let to small contractors through a small works roster from $300,000 to $500,000 and provides that this amount would be adjusted for inflation every five years.
Status: 2/5/19: (S) in Local Government; public hearing held
SB 5656 – Construction Manager; Design-Build. Would eliminate the restrictions on the number of projects delivered using the design-build and construction manager project delivery methods. The bill also would reduce the threshold for using design-build for any project from $10 million to $2 million and the bill would eliminate additional qualifications that must be met to use the design-build delivery method for projects between $2 million and $10 million.
Status: 3/9/19: (S) placed on second reading by Rules
Related Bill: HB 1295
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 2002 – Education Savings Accounts. Would authorize the state treasurer to adopt regulations and policies for an education savings account program, which would include requirements for education service providers to post a surety bond if they receive $100,000 or more in funds from education savings accounts.
Status: 1/11/19: (H) introduced and referred to Education
HB 2005 – Small Wireless Facility Providers. Provides that local government authorities could enter into agreements with providers of small wireless facility providers for their design, engineering, construction, installation, or operation or adopt ordinances governing these issues. A local government authority could impose reasonable and non-discriminatory requirements for surety bonds or other security to ensure removal of abandoned or unused wireless facilities or damage to the right-of-way or authority property caused by the wireless provider or its agent.
Status: 1/29/19: (S) introduced and referred to Government Organization and then Finance; to Government Organization
Related Bill: SB 3
HB 2680 – Third Party Litigation Financiers. Would require third party litigation financiers to register and post a minimum $50,000 surety bond or letter of credit. The bond or letter of credit would be payable to the state for the use of the attorney general and any person who may have a cause of action against the obligor of the bond for any violation of the law.
Status: 1/25/19: (H) introduced and referred to Government Organization
HB 2697 – Occupational Licensing - Consumer Choice Act. Would permit employers and consumers to hire a person that doesn't have a license for the profession or occupation if the person performing the work provides a disclosure notice to the consumer that complies with the requirements of the law. Insurance and bonding companies would not be required to issue a policy or a bond to an unlicensed person. The bill would exclude certain medical professions from being able to work without a state license.
Status: 1/28/19: (H) introduced and referred to Industry and Labor
Related Bill: SB 492
HB 2819 – Contractors - Tax Bond. Would clarify that the business registration requirements apply to both nonresident contractors and nonresident subcontractors, and specifies that the bond requirement to secure the payment of taxes would apply to both. The bill also would require the bond to secure the payment of the municipal consumers sales and use tax and any special district excise tax.
Status: 3/9/19: (H) on second reading, House calendar
Related Bill: SB 455
HB 2934 – Gaming Facilities. Would require gaming facilities operating an interactive wagering facility to be licensed and post a surety bond in an amount to be determined by the State Lottery Commission to ensure that the licensee makes all payments required by law.
Status: 3/9/19: (H) House concurred in Senate amendment and passed bill; communicated to Senate. Completed legislative action.
HB 3100 – Alcoholic Beverages. Would eliminate the license bond requirement for a brewer, resident brewer, distributor, Class S license. Current law requires brewers to post a bond for not less than $5,000 and not more than $10,000. The law requires distributors to post a bond for not less than $2,000 and not more than $5,000. The bill also would eliminate an additional bond required for brewers shipping non-intoxicating beer into the state, which must be in an amount not less than $5,000 nor more than $25,000. The bonds secure the payment of the applicable taxes.
Status: 3/9/19: (H) on second reading, House calendar
SB 3 – Small Wireless Facility Providers. Provides that local government authorities could enter into agreements with providers of small wireless facility providers for their design, engineering, construction, installation, or operation or adopt ordinances governing these issues. A local government authority could impose reasonable and non-discriminatory requirements for surety bonds or other security to ensure removal of abandoned or unused wireless facilities or damage to the right-of-way or authority property caused by the wireless provider or its agent.
Status: 3/5/19: (H) House received Senate message
Related Bill: HB 2005
SB 360 – Litigation Financiers. Would require litigation financiers to register and post a surety bond or irrevocable letter of credit for not less than $50,000. The bond would be for the use of the Attorney General and any person who may have a cause of action against the obligor of the bond for any violation of the applicable law.
Status: 3/8/19: (S) House message received
SB 451 – Education Savings Accounts. Provides for the establishment of education savings accounts in connection with a school choice program. The treasurer would have to establish policies that require education service providers receiving more than $100,000 in funds from these accounts to post a surety bond.
Status: 2/19/19: (H) motion to postpone indefinitely was adopted
SB 455 – Contractors - Tax Bond. Would clarify that the business registration requirements apply to both nonresident contractors and nonresident subcontractors, and specifies that the bond requirement to secure the payment of taxes would apply to both. The bill also would require the bond to secure the payment of the municipal consumers sales and use tax and any special district excise tax.
Status: 1/29/19: (S) referred to Finance
Related Bill: HB 2819
SB 492 – Occupational Licensing - Consumer Choice Act. Would permit employers and consumers to hire a person that doesn't have a license for the profession or occupation if the person performing the work provides a disclosure notice to the consumer that complies with the requirements of the law. Insurance and bonding companies would not be required to issue a policy or a bond to an unlicensed person. The bill would exclude certain medical professions from being able to work without a state license.
Status: 1/31/19: (S) referred to Government Organization
Related Bill: HB 2697
SB 529 – Alcoholic Beverages. Would eliminate the license bond requirement for a brewer, resident brewer, distributor, Class S license. Current law requires brewers to post a bond for not less than $5,000 and not more than $10,000. The law requires distributors to post a bond for not less than $2,000 and not more than $5,000. The bill also would eliminate an additional bond required for brewers shipping non-intoxicating beer into the state, which must be in an amount not less than $5,000 nor more than $25,000. The bonds secure the payment of the applicable taxes.
Status: 3/8/19: (H) House received Senate message
Related Bill: HB 3100
CONTRACT SURETY
HB 2011 – Performance Bond. Would establish a road maintenance program to allow state districts to enter into contracts with private companies for road maintenance, including, but not limited to ditching, snow removal, and mowing. The districts would be authorized to require vendors for these contracts to post a performance bond for at least 50% of the contract price.
Status: 2/27/19: (S) to Transportation and Infrastructure
HB 2028 – Performance Bond. Provides that public service districts that are laying water or sewer lines on state rights-of-way would have to require payment and performance bonds to cover a reasonable length of time for defects to be discovered.
Status: 1/18/19: (S) referred to Government Organization
Related Bill: SB 3
HB 2420 – Performance Bond. Would create the Mountaineer Trail Network Recreation Authority (Authority). For goods and services contracts exceeding $25,000, the Authority would have to require the vendors to post a performance bond in an amount equal to at least 50% of the contract price.
Status: 3/7/19: (S) referred to Rules on 2nd reading
Related Bills: HB 2484, SB 15, SB 132
HB 2484 – Performance Bond. Would create the Mountaineer Trail Network Recreation Authority (Authority). For goods and services contracts exceeding $25,000, the Authority would have to require the vendors to post a performance bond in an amount equal to at least 50% of the contract price.
Status: 1/30/19: (H) from Political Subdivisions: Do pass, but first to Government Organization; to Government Organization
Related Bills: HB 2420, SB 15, SB 132
HB 2772 – Payment and/or Performance Bonds. Would revise the contracting procedures for the Division of Corrections and Rehabilitation (Division) to purchase goods, services, and commodities. The bill would revise the existing requirement to provide a bond for at least 50% of the contract so that the requirement would be at the Division's discretion. The bill also provides that the bond could be in the form of a bid bond, performance bond, payment bond, maintenance bond, labor and materials bond, or any other type of surety that the Division deems necessary. The bill would eliminate the specification for the amount of the bond.
Status: 1/30/19: (H) introduced; referred to Veterans' Affairs and Homeland Securityn
Related Bill: SB 352
SB 317 – Performance Bond. Would authorize counties to form a multi-county trail network authority (authority). For goods and services contracts exceeding $25,000, the authority would have to require the vendors to post a performance bond in an amount equal to at least 50% of the contract price.
Status: 3/9/19: (H) adopted Conference Report and passed bill; communicated to Senate. Completed legislative action
SB 352 – Payment and/or Performance Bonds. Would revise the contracting procedures for the Division of Corrections and Rehabilitation (Division) to purchase goods, services, and commodities. The bill would revise the existing requirement to provide a bond for at least 50% of the contract so that the requirement would be at the Division's discretion. The bill also provides that the bond could be in the form of a bid bond, performance bond, payment bond, maintenance bond, labor and materials bond, or any other type of surety that the Division deems necessary. The bill would eliminate the specification for the amount of the bond.
Status: 3/9/19: (H) communicated to Senate; completed legislative action; to be effective from passage
Related Bill: HB 2772
SB 426 – Performance Bond. Would establish a road maintenance program to allow state districts to enter into contracts with private companies for road maintenance, including, but not limited to ditching, snow removal, and mowing. The districts would be authorized to require vendors for these contracts to post a performance bond for at least 50% of the contract price.
Status: 1/25/19: (S) referred to Transportation and Infrastructure
Related Bill: HB 2011
SB 522 – Performance Bond. Would establish a road maintenance program to allow state districts to enter into contracts with private companies for road maintenance, including, but not limited to ditching, snow removal, and mowing. The districts would be authorized to require vendors for these contracts to post a performance bond for at least 50% of the contract price.
Status: 3/9/19: (H) communicated to Senate; completed legislative action; to be effective 7/1/19
Related Bill: HB 2011, SB 426
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 30 – Trust Companies. Would increase the minimum amount of the surety bond or other security required for trust companies from $100,000 to $1 million. The bond indemnifies the state against any costs incurred if the trust company is put into receivership or liquidation. In lieu of the bond, the trust company may provide an investment pledge under existing law.
Status: 2/14/19: Governor signed, HEA No. 0014; assigned Chapter No. 13; effective 7/1/19
NEW LAW: HB 74 – Special Purpose Depository Banks. Requires special purpose depository institutions to post a surety bond or pledge capital to cover the costs that the State Banking Commissioner (Commissioner) is likely to incur in a liquidation or conservatorship of the special purpose depository bank. The Commissioner would determine the amount required. The institution also would have to obtain insurance or a bond covering the bank's operational risks, including directors' and officers' liability, errors and omissions liability and information technology infrastructure and activities liability. These institutions would handle deposits and provide related banking services for corporations using virtual currency and digital assets.
Status: 2/26/19: signed by the Governor; Chapter No. 92; effective 10/1/19
NEW LAW: HB 180 – MMA Promoters. Would revise the license bond requirement for holding a mixed martial arts match to require a bond in an amount not to exceed $10,000 or the total estimated expenses associated with the match, whichever is greater. The law requires a bond in an amount not to exceed $10,000. The State Mixed Martial Arts Board determines the bond amount under existing law.
Status: 2/28/19: signed by the Governor; Chapter No. 157; effective
CONTRACT SURETY
NEW LAW: HB 65 – Bond Threshold. Would increase the threshold at which a bond or other security is required for a public works contract with the State or its political subdivisions from $7,500 to $50,000. Under existing law, a bond is mandatory for such contracts that exceed $150,000. The provisions are contained in a draft bill that would increase other procurement-related thresholds.
Status: 2/27/19: signed by the Governor; Chapter 134; effective immediately upon completion of all acts necessary for a bill to become law as provided by the Wyoming Constitution
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
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