NEWS

COMMERCIAL SURETY   

NEW LAW:  HB 222 – Title Service Providers (Motor Vehicles).  Would require title service providers acting on behalf of a motor vehicle dealer, in connection with the dealer's duties as an agent of the Department of Revenue, to post a $25,000 surety bond to secure the faithful performance of their duties.

Status:  5/23/19: signed by the Governor; Act No. 2019-238; effective 10/1/19   

NEW LAW:  HB 250 – Receivers or Custodians.  Provides that a receiver or custodian appointed for a corporation could be required to post a bond with or without sureties.  The court would determine the bond amount.

Status:  5/1/19: signed by the Governor; Act No. 2019-94; effective 1/1/20   

Related Bill:  SB 174 

NEW LAW:  HB 361 – Fantasy Sports Contests.  Would require fantasy sports contest operators to register and either segregate the fantasy sports contest players' funds from its operational funds or maintain a reserve equal to or in excess of the amount of player funds on deposit.  Surety bonds or other security would be accepted to meet the reserve requirement.

Status:  5/31/19: signed by the Governor; Act No. 2019-343; effective immediately   

NEW LAW:  HB 393 – Motor Vehicle Dealers.  Would change the required amount of the license bond for new motor vehicle dealers, used motor vehicle dealers, motor vehicle rebuilders, and motor vehicle wholesalers to $50,000 or another amount that the Department of Revenue requires.  Current law provides for a $25,000 bond.  The bill provides that the bond would secure the payment of the dealer's tax liability and any penalties imposed on the dealer.  The bill also would subject a wholesale motor vehicle auction dealer to the bond requirements.

Status:  5/23/19: signed by the Governor; Act No. 2019-244; effective 10/1/20

NEW LAW:  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:  Enacted; Chapter 489; effective 9/1/19    

NEW LAW:  SB 396 – Promoters.  Would require promoters of bare-knuckle boxing events to meet the existing law's licensing requirement for sporting event promoters, which requires promoters to post a performance bond in an amount to be determined by the Athletic Commission.

Status:  6/9/19: signed by the Governor; Chapter 491; effective 9/1/19    

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

HB 146 – Motor Vehicle Dealers.  Would increase the bond amount from $50,000 to $250,000. 

Status:  5/6/19: (H) sponsor substitute introduced; read first time, referred to Judiciary   

COMMERCIAL SURETY

COMMERCIAL SURETY 

NEW LAW:  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:  3/12/19: signed by the Governor; Act No. 426    

NEW LAW:  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.

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; effective 7/25/19

CONTRACT SURETY 

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY 

NEW LAW:  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:  3/28/19: signed by the Governor; Chapter 66; effective 8/2/19  

NEW LAW:  HB 1295 – Public Officials.  Would eliminate the $10,000 bond requirement for county treasurers who act as the public trustee in counties of the second class.

Status:  5/29/19: signed by the Governor; Chapter 338; effective 8/2/19   

NEW LAW:  SB 5 – Importation of Prescription Drugs from Canada.  As amended, this bill allows for the importation of prescription drugs from Canada under a program established by the bill.  Vendors providing services under the program under a contract with the State Department will be required to post a minimum $25,000 bond or other security.  The bond secures the payment of any administrative penalties for a failure to pay any penalty assessments under the program, compliance with any contractual and statutory obligations, and participation in any civil or criminal legal actions.  Direct actions against the bond are permitted.

Status:  5/16/19: signed by the Governor; Chapter 184; effective 8/2/19      

NEW LAW:  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:  5/14/19: signed by the Governor; Chapter 174; effective 8/2/19       

NEW LAW:  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:  3/28/19: signed by the Governor; Chapter 41; effective 8/2/19  

NEW LAW:  SB 249 – Business Disposal License (Sale of Used Motor Vehicles).  Would create a business disposal license for businesses selling their used motor vehicles, and subject the licensee to the existing requirement for motor vehicle dealers to post a $50,000 bond or other security.  A business would qualify for a license if the sale of the vehicles did not exceed 20% of the business's gross revenue and the vehicles meet the criteria set forth in the bill. 

Status:  5/28/19: signed by the Governor; Chapter 309; effective 8/2/19         

CONTRACT SURETY 

NEW LAW:  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:  4/16/19: signed by the Governor; Chapter 117; effective 8/2/19        

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY

NEW LAW:  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:  7/12/19: signed by the Governor; Public Act 19-137; effective 1/1/20

NEW LAW:  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.

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY

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 19 – Importation of Prescription Drugs from Canada.  Would allow Canadian suppliers that are a manufacturer, wholesale distributor, or pharmacy permitted under Canadian law to manufacture, distribute, or dispense prescription drugs to export them to Florida under the new Canadian Prescription Drug Importation Program.  The bill would require vendors that the Agency for Health Care Administration hires to manage services under this program to post a surety bond to mitigate the financial consequences of the potential acts of malfeasance or misfeasance or fraudulent or dishonest acts committed by the vendor, any of its employees, or its subcontractors.  The bill also would specify that an international prescription drug wholesale distributor is subject to the permit requirements for wholesale prescription drug distributors.  A surety bond or other security or evidence of a bond posted in any other state in the amount of $100,000 is required to obtain the permit.  If the distributor's annual gross receipts in the previous tax year are $10 million or less, the bond must be for $25,000.

Status:  6/11/19: signed by the Governor; Chapter 99; effective 7/1/19  

NEW LAW:  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:  6/7/19: signed by the Governor; Chapter 71; effective 1/1/20   

NEW LAW:  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:  6/7/19: signed by the Governor; Chapter 73; effective 1/1/20     

NEW LAW:  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:  6/7/19: signed by the Governor; Chapter 76; effective 7/1/23   

NEW LAW:  HB 1009 – Receivership.  Would require receivers and custodians appointed for a corporation to post a bond in an amount that the court would determine in connection with a shareholder action to place the corporation into receivership or have a custodian appointed.

Status:  6/7/19: signed by the Governor; Chapter 90; effective 1/1/20  

NEW LAW:  SB 1000 – Wireless Facilities.  Provides that counties and municipalities could require a communication services provider seeking a permit for using the right-of-way for a small wireless facility to provide a construction bond to secure restoration of the post-construction rights-of-way to their pre-construction condition.  The bill would eliminate the authority for counties and municipalities to adopt ordinances for furnishing performance bonds.  The construction bond could not be in place for more than one year after the construction is completed.  The bill provides that a letter of credit would be accepted in lieu of the bond.

Status:  6/25/19: signed by the Governor; Chapter 2019-131; effective 7/1/19    

CONTRACT SURETY 

NEW LAW:  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:  7/3/19: signed by the Governor; Chapter 169; effective 7/1/19      

NEW LAW:  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:  6/7/19: signed by the Governor; Chapter 94; effective 10/1/19      

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY

COMMERCIAL SURETY 

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:  4/17/19: (H) received notice of Senate conferees       

NEW LAW:  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:  6/7/19: (S) signed by the Governor; Act 72; effective 1/1/20        

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:  3/21/19: (S) Committee report adopted; passed second reading, as amended, and referred to Ways and Means  

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:  4/24/19: (H) in Conference Committee     

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:  4/26/19: (S) in Conference Committee; received notice of change in conferees       

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:  4/23/19: (S) in Conference Committee; received notice of appointment of House conferees     

Related Bill:  SB 553 

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:  4/22/19: (H) in Conference Committee; received notice of Senate conferees     

HCR 42 – P3s.  Would direct the Honolulu Parks and Recreation Department to enter into a P3 with a nonprofit organization to develop a proposal for the design, financing, construction, and operation of a racetrack facility in Kalaeloa.

Status:  3/14/19: (H) referred to Water, Land and Hawaiian Affairs/Judiciary and Finance  

Related Bill:  SCR 108  

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:  3/22/19: (H) Committee report adopted; referred to Finance as amended   

Related Bill:  HB 1062

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 

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY 

NEW LAW:  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:  3/26/19: signed by the Governor; Chapter No. 226; effective 7/1/19  

NEW LAW:  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:  3/22/19: signed by the Governor; Chapter 188; effective 7/1/19

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY 

NEW LAW:  HB 1438 – Cannabis Dispensaries.  Would legalize cannabis for recreational use and would require cannabis dispensaries to be licensed and post a $50,000 surety bond or maintain $50,000 in an escrow account.  The bond would be conditioned on the timely and successful completion of the dispensary's construction, operating in a manner that provides an uninterrupted supply of cannabis, faithfully paying registration renewal fees, keeping accurate books and records, making regularly required reports, complying with State tax requirements, and conducting the dispensing organization in compliance with the applicable law and regulations. 

Status:  6/25/19: signed by the Governor; Public Act 101-0027; effective 6/25/19

NEW LAW:  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:  7/3/19: signed by the Governor; Public Act 101-0037; effective immediately     

NEW LAW:  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:  8/23/19: Signed by the Governor; Public Act 101-0505; effective 1/1/20

NEW LAW:  SB 651 – Alternative Retail Gas Suppliers.  Requires alternative retail gas suppliers to post a license bond for $150,000 if they will only serve nonresidential retail customers.  The new law also requires alternative retail electric suppliers to post a license bond for $30,000 if they will only serve nonresidential retail customers with maximum electrical demand of one megawatt or more; for $150,000 if serving nonresidential retail customers with annual electrical consumption greater than 15,000 kWh; or for $500,000 if serving all eligible customers.  A $500,000 bond is requires if these licensees will serve all customers or if they will market to residential customers with in-person solicitations.  The bond secures the faithful performance of duties by the supplier.  The bond must be in place for at least one year. 

Status:  8/27/19: signed by the Governor; effective 1/1/20

NEW LAW:  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:  8/9/19: signed by the Governor; Public Act 101-0366; effective 1/1/20  

CONTRACT SURETY 

NEW LAW:  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:  7/12/19: signed by the Governor; Public Act 101-0065; effective 1/1/20    

NEW LAW:  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:  8/20/19: signed by the Governor; Public Act 101-0432; effective 8/20/19   

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

NEW LAW:  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:  4/29/19: signed by the Governor; P.L. No. 123-2019; effective 7/1/19  

NEW LAW:  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:  5/1/19: signed by the Governor; P.L. No. 168-2019; effective 7/1/19

NEW LAW:  HB 1258 – Boiler and Pressure Vessel Inspection Agencies.  As amended, this bill would eliminate the licensing requirement for a boiler and pressure vessel inspection agency, along with the $100,000 bond requirement.

Status:  5/1/19: signed by the Governor; P.L. No. 171-2019; effective 7/1/19 

NEW LAW:  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:  5/1/19: signed by the Governor; P.L. No. 175-2019; effective 7/1/19

NEW LAW:  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:  5/1/19: signed by the Governor; P.L. No. 176-2019; effective 7/1/19  

NEW LAW:  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:  5/5/19: signed by the Governor; P.L. No. 221-2019; effective 7/1/19    

CONTRACT SURETY   

NEW LAW:  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:  4/18/19: signed by the Governor; effective 7/1/19  

NEW LAW:  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:  5/2/19: signed by the Governor; P.L. No. 208-2019; effective 7/1/19   

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

NEW LAW:  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:  5/1/19: signed by the Governor; effective 7/1/19   

NEW LAW:  HF 610 – 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:  5/1/19: signed by the Governor; effective 1/1/20   

NEW LAW:  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:  5/3/19: signed by the Governor; effective 1/1/20    

NEW LAW:  SF 617 – Sports Wagering.  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:  5/13/19: signed by the Governor; effective immediately  

NEW LAW:  SF 619 – Service Contract Providers.  Would revise the existing law for residential service contracts by subjecting motor vehicle service contracts to the law, and allowing a service company to provide other forms of security in lieu of the $100,000 bond or deposit.  A company would be allowed to obtain a reimbursement insurance policy, maintain a funded reserve account and provide a financial security deposit, or maintain a minimum net worth or stockholders' equity.  The deposit would have to be for no less than 5% of the gross consideration that the service company receives, less claims paid, for the sale of all motor vehicle service contracts and residential service contracts issued and in force in the state, but not less than $25,000. 

Status:  5/16/19: signed by the Governor; effective immediately  

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

COMMERCIAL SURETY 

NEW LAW:  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:  3/18/19: signed by the Governor; Act No. 021; effective 6/26/19  

NEW LAW:  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:  3/26/19: signed by the Governor; Act No. 120; effective 6/26/19  

NEW LAW:  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:  3/26/19: signed by the Governor; Act No. 147; effective 6/26/19

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; Act No. 4; effective 6/26/19  

NEW LAW:  SB 114 – Notaries Public.  This is an omnibus bill, consisting of new statutory language and creating new sections relating to notaries public and the recording of paper and electronic records regarding real property.  As "notarial officers," the provisions affect county clerks.  The notary bond requirement has not changed.

Status:  3/25/19: signed by the Governor; Chapter No. 86; effective 1/1/20   

NEW LAW:  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:  3/25/19: signed by the Governor; Act No. 088; effective 8/1/19

CONTRACT SURETY 

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

NEW LAW:  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:  4/30/19: signed by the Governor; Chapter No. 284; effective 10/1/19    

NEW LAW:  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.

CONTRACT SURETY 

COMMERCIAL SURETY 

HB 4307 – Internet Gaming.  Would authorize internet gaming in the state and require gaming operators to be licensed.  The Division may determine whether to issue the license based on the applicant's financial ability to purchase and maintain adequate liability and casualty insurance and provide an adequate surety bond.

Status:  10/29/19: (H) from Ways and Means: Reported with recommendation with substitute (H-2); referred to second reading

Related Bills:  HB 4311, HB 4323, SB 186

HB 4311 – Internet Gaming.  Would authorize internet gaming in the state and require gaming operators to be licensed.  The Division may determine whether to issue the license based on the applicant's financial ability to purchase and maintain adequate liability and casualty insurance and provide an adequate surety bond.

Status:  11/5/19: (S) received in Senate; referred to Regulatory Reform 

Related Bills:  HB 4307, HB 4323, SB 186

HB 4323 – Internet Gaming.  Would authorize internet gaming in the state and require gaming operators to be licensed.  The Division may determine whether to issue the license based on the applicant's financial ability to purchase and maintain adequate liability and casualty insurance and provide an adequate surety bond.

Status:  11/5/19: (S) received in Senate; referred to Regulatory Reform 

Related Bills:  HB 4307, HB 4311, SB 186

HB 4715 – Public Officials.  Would eliminate the bond required under existing law for county officers.

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.

SB 320 – Alcoholic Beverages.  Would repeal the tax bond required for a manufacturer of beer, wine or mixed spirit drinks and for an out-of-state seller of beer, wine or mixed spirit drinks.  The bond must be for an amount equal to 1/12 of the total excise taxes paid in the last calendar year, or $1,000, whichever is greater.  The bill also would repeal the $1,000 bond required for a special license authorizing the sale of beer, mixed spirit drink, wine, or spirits for consumption on the premises for manufacturers.  The bill also would repeal the bond required in connection with using liquor for industrial manufacturing purposes.

Status:  11/12/19: (S) ordered enrolled

SB 431 – Reclamation.  Would specify that an applicant for a permit to mine natural resources would have to furnish a form of financial assurance to secure the performance or reclamation obligations.  Surety bonds or other security would be accepted to meet this requirement.

Status:  9/24/19: (S) discharge from committee approved; placed on order of general orders. Reassigned to Transportation and Infrastructure.

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY

NEW LAW:  HF 90 – Assisted Living Establishments.  Would require assisted living centers to post a bond or obtain insurance if they manage resident funds to secure the funds in an amount sufficient to cover losses of resident funds.

Status:  5/22/19: signed by the Governor; Chapter 60; effective   

Related Bill:  SF 8

HF 1603 – 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:  4/26/19: (H) in State Government Finance Division. Author added.

Related Bill:  SF 2424 

HF 2125 – 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:  5/1/19: Senate conferees appointed

Related Bill:  SF 2411 

HF 2414 – Medicaid.  Provides that the amounts of the surety bond and the fidelity bond required of a personal care assistance provider would be calculated per location.  Also, assisted living centers would be required to post a bond if they manage resident funds.  The bill also 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 bond would be required.  Evidence of a bond posted in another state would be accepted in lieu of posting a bond in Minnesota.  The bond would secure the payment of civil penalties.

Status:  5/1/19: Senate conferees appointed  

HF 2861 – Taxes.  Would eliminate the income tax and business taxes and replace the current sales tax law with a new sales and use tax on the final use or consumption of taxable property or taxable services in the state, which would be called the "fair tax."  With the proposed changes to the tax law, the bill would eliminate the bond requirements for out-of-state and foreign contractors to post a tax bond in connection with the sales and income taxes for a construction contract and the bond required in connection with purchasing tax stamps for cigarettes.

Status:  5/2/19: (H) in Committee on Taxes; author added

NEW LAW:  HF 5A – 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:  5/30/19: signed by the Governor; Chapter 6; effective 

Related Bill:  SF 11A     

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:  4/1/19: (S) Joint Rule 2.03, referred to Rules and Administration

SF 8 – Assisted Living Establishments.  Would require assisted living centers to post a bond or obtain insurance if they manage resident funds to secure the funds in an amount sufficient to cover losses of resident funds.

Status:  4/1/19: (S) Health and Human Services Finance and Policy report: To pass as amended and re-refer to Finance 

Related Bill:  HF 90

SF 92 – 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:  4/11/19: (S) from Human Services Reform Finance and Policy: Do pass as amended. Re-referred to Finance. Rule 12.10: report of votes in committee 

Related Bill:  HF 168 

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

SF 2226 – Grain Buyers.  Would exempt cash buyers of grain from the license bond requirements for grain buyers.  The bill also provides that only a letter of credit could be posted in lieu of the grain dealer's bond, eliminating the other forms of security that currently may be posted.  A public grain warehouse operator also would be allowed to post a letter of credit in lieu of the license bond.

Status:  5/20/19: (H) motion to refuse to concur, motion to lay on the table; motion prevailed  

SF 2227 – 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:  5/1/19: House conferees appointed

SF 2302 – Personal Care Assistants.  Provides that the surety bond and the fidelity bond required for personal care assistance providers would have to be for $20,000 per location.  Assisted living centers would be required to post a bond if they manage resident funds.

Status:  4/3/19: (S) from Human Services Reform Finance and Policy: To pass as amended and re-refer to Health and Human Services Finance and Policy   

SF 2411 – 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:  3/13/19: (S) introduction and first reading; referred to Taxes  

Related Bill:  HF 2125

NEW LAW:  SF 2415 – Postsecondary Educational Institutions.  Would revise the bond requirement for new postsecondary educational institutions with conditional approval to grant degrees to require them to post a bond in an amount equal to 10% of the net revenue from tuition and fees for the prior fiscal year, but not less than $10,000.  Existing law requires a bond or letter of credit in an amount ranging from $10,000 to $250,000 only when the institution fails to meet the minimum financial standards of the U.S. Department of Education.  The proposed bond requirement would be in addition to the existing requirement.

Status:  5/22/19: signed by the Governor; Chapter 64; effective  

SF 2685 – Assisted Living Establishments.  Would require assisted living centers to post a bond or obtain insurance if they manage resident funds to secure the funds in an amount sufficient to cover losses of resident funds.

Status:  4/1/19: (S) Joint Rule 2.03, referred to Rules and Administration  

Related Bill:  SF 2686

SF 2686 – Assisted Living Establishments.  Would require assisted living centers to post a bond or obtain insurance if they manage resident funds to secure the funds in an amount sufficient to cover losses of resident funds.

Status:  4/1/19: (S) Joint Rule 2.03, referred to Rules and Administration 

Related Bill:  SF 2685  

SF 2850 – Occupational Licensing.  Would prohibit a person from being disqualified from pursuing a lawful occupation based solely on the person's criminal record.  Each person would have to be given individual consideration based on the guidelines set forth in the bill.  State license authorities also would be prohibited from using ambiguous terms such as "moral turpitude" and "good moral character."  The bill would prohibit state licensing authorities from considering certain crimes on a person's criminal record.  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 state recognition to practice the occupation.

Status:  4/25/19: (S) introduction and first reading; referred to State Government Finance and Policy and Elections  

Related Bill:  HF 2394

NEW LAW:  SF 1A – Grain Buyers.  Would exempt cash buyers of grain from the license bond requirements for grain buyers.  The bill also provides that only a letter of credit could be posted in lieu of the grain dealer's bond, eliminating the other forms of security that currently may be posted.  A public grain warehouse operator also would be allowed to post a letter of credit in lieu of the license bond.

Status:  5/30/19: signed by the Governor; Chapter 1; effective   

Related Bill:  HF 7A  

CONTRACT SURETY

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

COMMERCIAL SURETY 

NEW LAW:  SB 89 – 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:  7/10/19: signed by the Governor; effective 8/28/19  

Related Bills:  SB 147, SB 368 

SB 147 – 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:  7/12/19: vetoed by the Governor; however, SB 89 was enacted   

Related Bills:  SB 89, SB 368

NEW LAW:  SB 368 – 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:  7/9/19: signed by the Governor; effective 8/28/19   

Related Bills:  SB 89, SB 147 

CONTRACT SURETY 

NEW LAW:  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:  7/11/19: signed by the Governor; effective 8/28/19  

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

NEW LAW:  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:  3/20/19: signed by the Governor; Chapter 83; effective immediately   

Status:  3/19/19: signed by the Governor; Chapter 65; effective 10/1/19

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   

NEW LAW:  HB 370 – Notaries Public.  Would increase the amount of the notary bond from $10,000 to $25,000.

Status:  4/3/19: signed by the Governor; Chapter 123; effective 10/1/19      

NEW LAW:  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:  5/7/19: signed by the Governor; Chapter 302; effective 5/7/19      

NEW LAW:  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:  5/7/19: signed by the Governor; Chapter 304; effective 5/7/19  

SB 330 – Sportsbook Operators.  Would require a sportsbook operator to be licensed and post a surety bond or reserve account in an amount that the Department would determine to guarantee the sportsbook operator faithfully makes all payments required under the applicable laws and regulations.  Sportsbook operators are sports betting businesses that operate on the premises of a licensed gambling activity or through an interactive sports betting platform located on the premises. 

Status:  6/11/19: Veto override failed.     

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:  5/30/19: Attorney General Opinion 19-008 to Brewer  

NEW LAW:  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:  5/30/19: signed by the Governor; effective 3 months after adjournment    

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

NEW LAW:  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:  5/8/19: approved by the Governor; effective 3 months after adjournment        

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY 

NEW LAW:  AB 252 – Community-Based Living Arrangement Service Providers.  Would authorize the State Board of Health to adopt regulations that would require an applicant for a certificate to be a community-based living arrangement services provider to post a surety bond equal to the operating expenses of the applicant for two months or deposit this amount in an escrow account.  The bond would secure that recipients of services would continue to receive them for two months at the expense of the provider in the event that the provider becomes insolvent.

Status:  6/3/19: signed by the Governor; Chapter 348; effective 1/1/20   

NEW LAW:  AB 280 – Document Preparation Service Providers.  Would revise the bond requirement for persons who provide document preparation services.  The bill would reduce the bond amount required for individuals under existing law from $50,000 to $25,000.  The bill also would establish registration requirements for business entities with employees who provide document preparation services.  The bill would permit the business entity to furnish a bond on behalf of its employees instead of the employees posting individual bonds.  The bond amount would range from $25,000 to $200,000 based on the number of employees that the bond covers.  The conditions and other bond requirements for the business entity would mirror the requirements for individuals.  Cash is accepted in lieu of a surety bond.

Status:  5/25/19: signed by the Governor; Chapter 156; effective 5/25/19   

NEW LAW:  AB 288 – Third Party Vehicle Registration and Titling Service Providers.  Would require a person acting as a third party for the Department of Motor Vehicles to provide motor vehicle registration and titling services to be licensed and post a $50,000 bond or deposit conditioned on the licensee conducting his or her business without fraud or fraudulent representation and in compliance with the applicable law.  The bond amount may be reduced for licensees that have been in business for five years or more, but the bond cannot be for less than $10,000.

NEW LAW:  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.

NEW LAW:  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:  5/25/19: signed by the Governor; Chapter 149; effective 5/25/19    

NEW LAW:  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:  5/25/19: approved by the Governor; Chapter 135; effective 5/25/19  

NEW LAW:  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:  6/1/19: signed by the Governor; Chapter 275; effective   

NEW LAW:  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:  6/1/19: signed by the Governor; Chapter 295; effective 10/1/19

NEW LAW:  SB 400 – Public Livestock Auction.  Would revise the amount of the bond or deposit required in connection with the license for an operator of a public livestock auction.  Current law requires a bond of at least $200,000, but not more than $1,000,000.  The bill would require the amount of the bond to be $200,000 or the amount of bond coverage calculated for a market agency required under existing federal regulations, whichever is greater. 

Status:  5/29/19: signed by the Governor; Chapter 239; effective 7/1/19   

NEW LAW:  SB 417 – Annual Livestock Sales.  Would authorize the Department of Agriculture to issue a limited license for an annual livestock sale.  The licensee would have to comply with the existing bond or other security requirements for public livestock auctions.  The bill would give the Department the authority to limit the term of the bond to the time during which the sale is conducted; the Department could also accept a bond for a lower amount than what is currently required. 

Status:  6/5/19: signed by the Governor; Chapter 417; effective 7/1/19

NEW LAW:  SB 432 – Consumer Litigation Funding Companies.  As amended, this bill would require consumer litigation funding companies to be licensed and post a surety bond in an amount not to exceed $50,000, conditioned on the licensee's compliance with the applicable law and regulations, and payment of all amounts that may be owed to any person and/or to the State. 

Status:  6/5/19: signed by the Governor; Chapter 378; effective 10/1/19   

NEW LAW:  SB 460 – Public Administrators.  Would authorize the board of county commissioners in a county with a population of less than 100,000 to abolish the office of public administrator, and instead adopt an ordinance that would allow the county to employ or contract with a person to perform the duties and functions of a public administrator.  The ordinance must include a requirement for the person to post a bond or other security. 

Status:  6/1/19: signed by the Governor; Chapter 270; effective 7/1/19 

NEW LAW:  SB 491 – Certificates of Title - Salvage Vehicles.  Would reduce the amount of the bond that the Department of Motor Vehicles may require from an applicant for a certificate of title when an applicant is unable to submit documents confirming that the applicant is entitled to a salvage title.  Current law requires the bond amount to be equal to 1 1/2 times the value of the vehicle.  The bill would require the bond amount to be for 25% of the value of the vehicle. 

Status:  5/29/19: signed by the Governor; Chapter 253; effective 7/1/19

CONTRACT SURETY 

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY 

NEW LAW:  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:  8/21/19: signed by the Governor; Chapter 324; effective 7/1/19   

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:  4/18/19: (S) re-referred to Commerce  

NEW LAW:  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:  7/15/19: signed by the Governor; Chapter 169; effective 7/10/19      

NEW LAW:  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:  7/10/19: signed by the Governor; Chapter 188; effective 7/10/19   

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:  5/8/19: (H) removed from Consent Calendar; laid on table  

CONTRACT SURETY

NEW LAW:  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:  6/21/19: signed by the Governor; Chapter 116; effective 8/20/19          

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

AB 2904 – Home Improvement Contractors.  Would require home improvement contractors to post a $50,000 surety bond or other security in connection with registration.  The bond would be for the use or benefit of any consumer who has entered into a home improvement contract and incurs damages or suffers any loss arising out of the contractor's violation of 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.

Related Bill:  SB 1326

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.

AB 4860 – Remote Online 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:  5/13/19: (A) reported and referred to Appropriations 

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

NEW LAW:  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:  4/29/19: approved by the Governor; Chapter 65; effective 90 days from enactment (7/29/19)   

AB 5141 – Private Career Schools - Recovery Fund.  Would require private career schools to register with the Commissioner of Labor and Workforce Development and furnish a performance bond in an amount that the Commissioner would determine.  The bill would establish a recovery fund for students attending these private career schools.  The bill would establish a recovery fund for students attending private career schools.  The Department of Labor and Workforce Development (Department) would have to pay claims from the performance bond "whenever possible."  The bill provides that when the bond is insufficient to pay all approved claims, the Department would pay claims from the recovery fund.

Status:  3/7/19: (A) reported out of Higher Education; second reading

AB 5269 – 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:  5/13/19: (A) introduced and referred to Regulated Professions 

Related Bill:  SB 3499

SB 1326 – Home Improvement Contractors.  Would require home improvement contractors to post a $50,000 surety bond or other security in connection with registration.  The bond would be for the use or benefit of any consumer who has entered into a home improvement contract and incurs damages or suffers any loss arising out of the contractor's violation of 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.

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; Chapter 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:  6/17/19: (S) reported from Commerce; second reading; referred to Budget and Appropriations
Related Bill:  AB 4860 

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

SB 3656 – Used Motor Vehicle Dealers.  Would require used motor vehicle dealers to be licensed and post a $50,000 bond, conditioned on compliance with the law and that the dealer shall not practice fraud or make fraudulent representations in the sale or lease of a motor vehicle.  Direct actions against the bond would be permitted.  The bill also would establish a recovery fund, which would kick in after the bond is exhausted.  The recovery fund would pay a maximum of $25,000 to any single claimant and a maximum of $75,000 in total claims against a dealer.  If a dealer does not have any claims against its bond or the recovery fund for 3 consecutive years, the dealer could either: (1) only pay into the recovery fund and be exempt from posting the bond; or (2) post a $100,000 surety bond in lieu of participating in the recovery fund, in which case the surety's liability would be limited to $20,000 for any single claimant and the surety's aggregate liability would be limited to $100,000.  Existing law requires all dealers to post a $10,000 bond to secure compliance with the trade practices law, which still would have to be posted as well.

Status:  5/13/19: (S) introduced and referred to Commerce

Related Bill:  AB 5523

SB 3709 – Used Motor Vehicle Dealers.  Would enact the Used Motor Vehicle Dealer Licensing Act and establish the State Board of Used Motor Vehicle Dealers.  There is no actual mention of a bond or recovery fund in this particular bill as introduced.

Status:  5/16/19: (S) introduced and referred to Commerce

SB 3825 – Private Career Schools - Recovery Fund.  Would require private career schools to register with the Commissioner of Labor and Workforce Development and furnish a performance bond in an amount that the Commissioner would determine.  The bill would establish a recovery fund for students attending these private career schools.  The bill would establish a recovery fund for students attending private career schools.  The Department of Labor and Workforce Development (Department) would have to pay claims from the performance bond "whenever possible."  The bill provides that when the bond is insufficient to pay all approved claims, the Department would pay claims from the recovery fund.

Status:  6/17/19: (S) reported from Higher Education; second reading 

Related Bill:  AB 5141   

CONTRACT SURETY 

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY 

NEW LAW:  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:  4/4/19: signed by the Governor; Chapter 215; effective 1/1/20  

NEW LAW:  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:  3/28/19: signed by the Governor; Chapter 98; effective 6/14/19    

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:  6/12/19: (A) in Codes; amended and recommitted to Codes; Print Number AB 1617B     
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:  2/22/19: (A) in Election Law; amended, Print Number 1668A 

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

AB 6655 – Automobile Brokers.  Would revise the existing law for automobile brokers to specify that brokers for new vehicles would be subject to the law, including the licensing and bonding requirements.  Current law requires a $100,000 bond conditioned on the payment of all valid bank drafts, including checks, drawn for the purchase of motor vehicles and safekeeping of all customer deposits related to the sale of a motor vehicle between the time of receipt and the transfer of a good title to the customer. 

Status:  6/15/19: (A) amended and recommitted to Consumer Affairs and Protection; Print Number AB 6655D  

Related Bill:  SB 4364  

AB 7191 – 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:  4/11/19: (A) introduced and referred to Consumer Affairs and Protection

Related Bill:  SB 2343

AB 8449 – Voting Machine Vendors.  Would revise the existing requirement for vendor contracts for voting machines by increasing the minimum number of years from five years to ten years during which the contract must guarantee that a contractor will keep the machines and systems maintained in good working order without additional cost and to perform satisfactorily its training and service obligations under the contract.  A bond is required to secure that the vendor will meet this obligation. 

Status:  7/8/19: (A) referred to Election Law

Related Bill:  SB 6734 

AB 8559 – Process Servers.  Would require process servers to be licensed and post a surety bond, contract of indemnity, or letter of credit in an amount ranging from $10,000 to $75,000, based on the number of process servers employed by the licensee.  The bond would be conditioned on compliance with the applicable laws and regulations and on the licensee's payment obligations.  The surety's aggregate liability would be limited to the bond amount.  The surety could cancel the bond with 30 days' written notice. 

Status:  8/23/19: (A) introduced and referred to Economic Development, Job Creation, Commerce and Industry   

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:  6/12/19: (S) amended and recommitted to Finance; Print Number SB 1527B      
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:  5/30/19: (S) reported and committed to Finance

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 

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:  6/17/19: (A) reported out of Rules; ordered to third reading, Rules Calendar 318

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 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 

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

NEW LAW:  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:  4/12/19: signed by the Governor; Chapter 58; effective immediately   

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

SB 5498 – 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:  5/3/19: (S) introduced and referred to Finance

Related Bill:  AB 574

NEW LAW:  SB 6418 – Payment and/or Performance Bonds; Small Business.  Would create a small business mentoring program for construction contracting for the New York City Department of Design and Construction.  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 term of nine years initially, and then an additional four years if the small business successfully completed the program. 

Status:  7/15/19: signed by the Governor; Chapter 98; effective immediately  

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.  

COMMERCIAL SURETY

NEW LAW:  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:  4/8/19: signed by the Governor; Chapter 239; effective 8/1/19   

NEW LAW:  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:  3/22/19: signed by the Governor; Chapter 309; effective 8/1/19      

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; Chapter 123; effective 8/1/19    

NEW LAW:  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:  4/23/19: signed by the Governor; Chapter 249; effective 8/1/19     

CONTRACT SURETY 

NEW LAW:  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:  4/24/19: signed by the Governor; filed with Secretary of State; effective 8/1/19        

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY

HB 115 – Occupational Regulations.  In the following three years, 2020 to 2022, the state agencies must reduce regulatory restrictions by 30%, which is at the rate of 10% per year.  If the required reductions have not been achieved according to the schedule, the state agency may not adopt any new regulatory restrictions unless it simultaneously removes two other regulatory restrictions.

Status:  3/12/19: (H) read second time; referred to State and Local Government

HB 194 – Sports Wagering.  Would require sports gaming agents to be licensed and post a surety bond in an amount determined by the State Lottery Commission.  The bond would guarantee that the licensee makes all required payments under the law and regulations.

Status:  4/10/19: (H) read second time; referred to Finance

HB 263 – Occupational Regulations.  IWould 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 revise existing licensing laws concerning criminal convictions to require compliance with this process and to eliminate references to moral turpitude and good character requirements.

Status:  6/4/19: (H) referred to Commerce and Labor

HB 340 – Construction of Drainage Improvement - Petition.  Would increase the amount of the bond required in connection with filing a petition for the construction of a drainage improvement, which is currently $500 plus $2 for each parcel of land in excess of 200 that will benefit from the improvement.  The bill would increase the bond to $1,500 plus $5 for each parcel of land in excess of 200 that will benefit from the improvement.  The bill also would eliminate the specifications for the form of the bond, which currently must be a surety bond from a corporate surety authorized to do business in the State, two freeholders of the county, or cash.

Status:  9/24/19: (H) read second time; referred to State and Local Government  

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.

COMMERCIAL SURETY 

HB 1642 – Alcoholic Beverages.  Would require wine and spirits wholesalers and beer distributors that are responsible for collecting and remitting alcohol excise taxes on behalf of the manufacturer, importer or broker to meet the existing law's tax bond requirements.  The law requires a bond in an amount that the Tax Commission will determine based on the licensee's tax liability.  The minimum bond amount is $1,000.  The bill also would require wineries that are maintaining a winemaker self-distribution license and a winery maintaining a direct wine shipper's permit under existing law to post this tax bond as well.

Status:  4/11/19: (S) Business, Commerce and Tourism Report: Do pass. Committee Report filed 

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:  4/9/19: (S) from Transportation: Do pass as substituted. Title stricken. Emergency clause stricken.

Related Bill:  SB 687 

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:  4/11/19: (H) Rules Committee Report: Do pass, as amended. Enacting clause stricken.  

NEW LAW:  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:  4/22/19: approved by the Governor; effective 11/1/19, operative 8/1/20  

NEW LAW:  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:  5/9/19: approved by the Governor; effective 1/1/20  

NEW LAW:  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:  5/2/19: approved by the Governor; Chapter 294; effective 11/1/19    

CONTRACT SURETY

NEW LAW:  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:  5/28/19: signed by the Governor; Chapter 456; effective 11/1/19   

Related Bill:  SB 762

NEW LAW:  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:  5/16/19: signed by the Governor; Chapter 407; effective 11/1/19  

NEW LAW:  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:  5/6/19: signed by the Governor; Chapter 299; effective    

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:  5/2/19: (S) Conference granted, Senate conferees named   

Related Bill:  HB 1114

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

NEW LAW:  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:  5/3/19: signed by the Governor; Chapter 056; effective upon passage; however, Section 2 is effective 7/1/20.

NEW LAW:  HB 3193 – Wage Claims on Contractor Bonds.  As amended, the bill would allow a wage claimant to recover unpaid wages from the contractor's license bond, or by obtaining a final order issued by the Bureau of Labor and Industries.  It also would revise the penalty provisions for residential contractors to permit a non-owner claimant to recover more than the current $3,000 limit paid for a non-owner's claim if the contractor is required to post a larger bond as provided in existing law to pay claims.  The increase of the limit would be in proportion to the increased bond amount. 

Status:  6/20/19: signed by the Governor; effective 1/1/20  

NEW LAW:  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:  7/15/19: signed by the Governor; Chapter 543; effective 1/1/20     

NEW LAW:  SB 792 – Motor Vehicle Dismantlers.  Would increase the amount of the bond or letter of credit for motor vehicle dismantlers from $10,000 to $100,000.

Status:  7/23/19: signed by the Governor; Chapter 630; effective 5/1/20   

CONTRACT SURETY

NEW LAW:  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:  6/25/19: signed by the Governor; Chapter 486; effective 1/1/20  

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.  

COMMERCIAL SURETY

HB 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:  9/18/19: (H) introduced and referred to Finance

Related Bills:  HB 1231, SB 76

HB 357 – Charter Schools.  Would require a charter school to obtain adequate and appropriate insurance, bond or other security.  The insurance, bond or other security would have to provide coverage for educational services and fees and costs incurred by a charter school and prevailing parties under the existing laws concerning individuals with disabilities, employment and retirement, employee medical and health insurance benefits, workers' compensation, unemployment compensation and taxes and other liabilities to federal, state and local tax agencies, school district overpayments, and other liabilities reasonably connected to the charter school's operations.  The bond, insurance, or other security would have to provide coverage during the time the charter school is in operation and for sufficient time following the charter school's closure to make payment on all claims known or which could have been known to exist at the time of the school's closure. 

Status:  6/14/19: (S) introduced and referred to Education  

HB 811 – Occupational Licensing.  Provides that a person has a fundamental right to pursue a lawful occupation, including a person who has been convicted of a crime.  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 would require occupational licensing and certifying bodies to determine whether the person's criminal record would disqualify them for the license based on the standards set forth in the bill concerning the kinds of crimes for which the person was convicted.  The license applicant could appeal any adverse decision.  The bill also would eliminate the requirement to pay license fees for persons whose household income is less than 200% of the federal poverty line. 

Status:  4/9/19: (H) introduced and referred to Professional Licensure 

HB 1039 – Scholarship Programs.  Would establish the Pennsylvania Empowerment Scholarship Accounts Program to provide scholarship funds for qualified students.  The Department of Education would be authorized to adopt regulations for the accounts that include requirements for individual empowerment scholarship account holders to post a bond or obtain insurance. 

Status:  4/2/19: (H) introduced and referred to Education

NEW LAW:  HB 1172 – Occupational Licensing.  Requires a licensing board to issue a Pennsylvania license to an out-of-state applicant to practice their occupation in the Commonwealth if the applicant is licensed and in good standing in their home state under the conditions set forth in the new law.  The applicant also may obtain a provisional license endorsement from Pennsylvania to temporarily practice their occupation while they are working to comply with the license requirements. 

Status:  7/1/19: signed by the Governor; Act No. 41 

HB 1231 – 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:  4/17/19: (H) introduced and referred to Finance

Related Bill:  SB 76

HB 1296 – Scholarship Programs.  Would create a military education scholarship account program as a school choice measure for students whose parents are active duty members of the military.  Participating schools receiving funds from these scholarship accounts would have to provide evidence of their financial viability to repay $50,000 or more in scholarship funds by posting a surety bond in an amount equal to the amount funds expected to be received during the school year or by filing financial information that the school is able to repay this amount. 

Status:  4/25/19: (H) introduced and referred to Education

HB 1635 – Oil and Gas Wells.  Would rewrite the law for conventional oil and gas wells.  Under current law, a surety bond or other security is required in connection obtaining a permit for the wells.  The existing law sets forth a formula to determine the bond amount, which is calculated based on the depth of the well and the number of wells that are in operation.  A blanket bond in the amount required under this existing formula is accepted to cover all wells.  The bill provides that the bond amount would have to be for $2,500 per well for at least two years, at which point the Environmental Quality Board will adjust the bond amount every five years based on the projected well plugging costs.  A blanket bond would be accepted for an amount equal to $25,000 for at least five years, at which point the Board could adjust the bond to account for well plugging costs every two years.  The maximum increase would be $10,000 for the blanket bond. 

Status:  6/14/19: (H) introduced and referred to Environmental Resources and Energy

Related Bill:  SB 790 

HB 1976 – Payroll Processors.  Would require payroll processors that issue payroll checks to provide proof of security in an amount equal to two times the highest weekly payroll that it processed in the preceding year or $5 million.  The security would have to be in the form of a fidelity bond, an employee dishonesty bond, a third-party fidelity coverage, or liability insurance that includes crime coverage.  The payroll processor also would have to post a surety bond in an amount equal to the total of all federal, state, and local tax payments and unemployment insurance premiums that it processed on behalf of employers in the Commonwealth in the three-consecutive-month period of highest volume during the previous calendar year or $50,000, whichever is greater; $500,000 maximum. 

Status:  10/22/19: (H) introduced and referred to Finance  

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

SB 174 – Abandoned Properties.  Would require a purchaser of an abandoned property to enter into a redevelopment agreement and post a bond to ensure compliance with the agreement. 

Status:  10/21/19: (S) laid on the table; removed from table  

SB 353 – Scholarship Programs.  Would establish a scholarship program as part of a school choice measure.  The bill would require schools that receive $50,000 or more in funds through this program to post a surety bond in an amount equal to the funds received in a school year or provide financial information demonstrating the school's ability to repay these funds. 

Status:  3/4/19: (S) introduced and referred to Education

SB 497 – Charter Schools.  Would require charter schools to post an indemnity bond, escrow account, or other security.  The bond would have to cover the costs that a school district incurs to educate students from the charter school if the charter school defaults and closes.  The local school boards would determine the amount required.  The bond would be payable to each school district with resident students enrolled in the charter school in proportion to the number of resident students enrolled in the charter school.  The maximum duration of the bond would be five years. 

Status:  3/29/19: (S) introduced and referred to Education

SB 790 – Oil and Gas Wells.  Would rewrite the law for conventional oil and gas wells.  Under current law, a surety bond or other security is required in connection obtaining a permit for the wells.  The existing law sets forth a formula to determine the bond amount, which is calculated based on the depth of the well and the number of wells that are in operation.  A blanket bond in the amount required under this existing formula is accepted to cover all wells.  The bill provides that the bond amount would have to be for $2,500 per well for at least two years, at which point the Environmental Quality Board will adjust the bond amount every five years based on the projected well plugging costs.  A blanket bond would be accepted for an amount equal to $25,000 for at least five years, at which point the Board could adjust the bond to account for well plugging costs every two years.  The maximum increase would be $10,000 for the blanket bond. 

Status:  10/22/19: (H) referred to Environmental Resources and Energy 

Related Bill:  HB 1635

CONTRACT SURETY

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

HB 882 – Performance Bond.  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:  6/10/19: (H) removed from table; laid on the table   

Related Bill:  SB 204

HB 885 – Bond Threshold.  Would eliminate the discretion that local governments have in the Little Miller Act to accept any financial security in lieu of performance and payment bonds.  The bill would allow only surety bonds, letters of credit, or escrow accounts as acceptable performance and payment security.  Existing law requires that the security required must be equal to 100% of the contract amount.  The existing Pennsylvania P3 law mirrors the Little Miller Act for bonding for local governments rather than the Little Miller Act for state projects, which requires 100% performance and payment bonds for the contract amount.  SB 207 is similar, except that it would increase the bond threshold from $10,000 to $500,000. 

Status:  6/10/19: (H) removed from table; laid on the table

HB 1761 – Bond Guarantee Program; DBE.  Would establish the Surety Bond Guarantee Fund Program for disadvantaged business enterprises (DBEs) to provide bond guarantees of up to $1 million.  The bill would establish a technical assistance program for DBEs to respond to bid requests, strengthen its financial condition and address "other concerns raised or likely to be raised by a bonding company."  The bill would create a monitoring system to track participating DBEs.  To qualify for a guarantee, the bond would have to: 1) be listed in the contract bonds section of "The Surety & Fidelity Association of America's 'Manual Of Rules, Procedures and Classifications'"; 2) be required by the contract, invitation for bid or request for proposal; 3) the surety company issuing the bond must be listed on Circular 570; and 4) the bond must meet any other requirements that the Department of Community and Economic Development establishes.  The bond must contain a provision allowing the bond to be cancelled with 30 days' notice. 

Status:  8/16/19: (H) introduced and 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

SB 841 – Performance Bond.  Would authorize the proposed Health Care Cost Containment Council to enter into contracts with vendors for the purchase of services, and for the purchase or lease of supplies and equipment.  The Council could require the vendor to furnish a performance bond in an amount that the Council would determine. 

Status:  10/30/19: (S) read third time, passed. To House.   

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY

NEW LAW:  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:  3/20/19: signed by the Governor; effective 7/1/19   

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; Chapter 48; effective 7/1/19  

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY 

NEW LAW:  HB 3496 – Pharmacies.  Would require pharmacies that are not operated by a publicly traded company to post a surety bond for not more than $25,000 in connection with licensure.  The bond would secure the payment of fines, fees, and penalties that the State Board of Pharmacy (Board) imposes, as well as any investigation costs if the pharmacy fails to pay these amounts.  The bill provides that the surety may cancel the bond, but the surety remains liable until the pharmacy obtains a new bond and the surety guarantees that on receipt of a written request for payment, the surety will reimburse the Board for the amount stated in the request that does not exceed the amount of the bond. 

Status:  6/10/19: signed by the Governor; Chapter 895; effective 1/1/20   

NEW LAW:  HB 3842 – Motor Vehicle Dealers.  Would allow the DMV to make claims against the bond for its fees in cases where the purchaser of a vehicle applies for the title because the dealer went out of business and did not apply and pay the fees for the title. 

Status:  6/14/19: signed by the Governor; Chaptor 1309; effective 9/1/19  

SB 667 – Public Guardians.  Would require a public guardian to post a bond in an amount that the Commissioners Court would determine.  The bond would conditioned on the faithful performance of the guardian's duties. 

Status:  6/15/19: vetoed by the Governor 

CONTRACT SURETY

NEW LAW:  HB 1999 – Infrastructure; Payment and/or Performance Bonds.  Would create a right to repair construction defects on public, commercial construction projects before a contractor, subcontractor, supplier, or design professional could be sued for damages arising out of a construction defect.  An independent, third-party professional engineer would have to inspect the defect and make a written report before the governmental entity could make a claim.  Each party subject to the lawsuit would have to be given at least 150 days from the time the report is made to inspect and correct any construction defect.  As amended, the bill provides that the governmental entity would not be required to allow a contractor to make a repair to the project in certain cases, including if the contractor cannot provide performance bonds and payment bonds to cover the corrective work, the contractor cannot provide liability or workers' compensation insurance, the contractor has been terminated previously for cause by the governmental entity, or the contractor has been convicted of a felony.  If the contractor was required to perform corrective work previously on the project and it was not properly corrected or if it created a new defect, the governmental entity would not be required to allow a contractor to make a repair. 

Status:  6/14/19: signed by the Governor; Chapter 1287; effective immediately

NEW LAW:  SB 2212 – P3s.  Would permit certain drainage districts to enter into a P3 to fund the local share of the operation and maintenance portions of projects that the districts would be authorized to conduct with the U.S. Army Corps of Engineers. 

Status:  6/10/19: signed by the Governor; Chapter 685; effective 9/1/19   

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

NEW LAW:  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:  3/25/19: signed by the Governor; Chapter 192; effective 11/1/19  

NEW LAW:  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:  3/25/19: signed by the Governor; Chapter 198; effective 5/13/19   

NEW LAW:  HB 278 – Court Reporters.  Would repeal the $2,500 court reporter bond requirement.

Status:  3/27/19: signed by the Governor; Chapter 379; effective 5/13/19   

NEW LAW:  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:  3/22/19: signed by the Governor; Chapter 153; effective 5/13/19   

NEW LAW:  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:  3/26/19: signed by the Governor; Chapter 318; effective 5/13/19  

NEW LAW:  HB 453 – Liquor Transporters.  Would require liquor transporters to be licensed and post a $10,000 surety bond or cash, conditioned on compliance with the applicable laws and regulations.  The bond could be forfeited if the license is revoked.

Status:  3/27/19: signed by the Governor; Chapter 403; effective 5/13/19   

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY  

NEW LAW:  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:  3/26/19: signed by the Governor; Chapter 812; effective 7/1/19      

NEW LAW:  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:  3/14/19: signed by the Governor; Chapter 396; effective 7/1/19     

Related Bill:  SB 1188   

NEW LAW:  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:  3/21/19: signed by the Governor; Chapter 742; effective 7/1/19       

Related Bill:  SB 1769

NEW LAW:  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:  3/21/19: signed by the Governor; Chapter 744; effective 7/1/19       

NEW LAW:  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:  3/21/19: signed by the Governor; Chapter 789; effective - see bill      

Related Bills:  SB 1503, and SB 1706 

NEW LAW:  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:  3/18/19: signed by the Governor; Chapter 558; effective 7/1/19     

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   

NEW LAW:  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:  3/21/19: signed by the Governor; Chapter 750; effective 7/1/19     

NEW LAW:  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:  3/18/19: signed by the Governor; Chapter 517; effective - see bill       

NEW LAW:  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:  3/21/19: signed by the Governor; Chapter 763; effective 7/1/19     

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 

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.

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.