NEWS

Legislative developments significant to the surety bonding industry will be posted as soon as they become available.  Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY 

HB 86 – Money Transmitters.  Would modernize the Alaska Uniform Money Services Act by adopting pertinent sections of the Uniform Money Transmission Modernization Act, and clarify the Division of Banking and Securities' authority to regulate virtual currencies.  The bill would clarify licensure requirements for companies conducting financial services activities in the state, particularly in the financial technology space such as online transmission of virtual currencies and payroll processing via stored value cards.  The bill also repeals the currency exchange license, because a person that is licensed to engage in virtual currency business activity is engaged in the business of money transmission and subject to the requirements of Chapter 06.55.  The bond amount would be determined by the department by regulation or order, and the amount would be proportional to the licensee's average daily money transmission liability in the state up to a maximum of $1 million. 

Status:  2/27/23: (H) Introduced, read first time and referred to Labor & Commerce. 

Related Bill:  SB 84 

SB 84 – Money Transmitters.  Would modernize the Alaska Uniform Money Services Act by adopting pertinent sections of the Uniform Money Transmission Modernization Act, and clarify the Division of Banking and Securities' authority to regulate virtual currencies.  The bill would clarify licensure requirements for companies conducting financial services activities in the state, particularly in the financial technology space such as online transmission of virtual currencies and payroll processing via stored value cards.  The bill also repeals the currency exchange license, because a person that is licensed to engage in virtual currency business activity is engaged in the business of money transmission and subject to the requirements of Chapter 06.55.  The bond amount would be determined by the department by regulation or order, and the amount would be proportional to the licensee's average daily money transmission liability in the state up to a maximum of $1 million. 

Status:  2/24/23: (S) Introduced, read first time and referred to Labor & Commerce. 

Related Bill:  HB 86 

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

COMMERCIAL SURETY

SB 1101 – Authorized Third Party Driver License Providers.  Would allow a third party driver license provider to perform administrative functions or testing functions, or both, for the issuance and renewal of commercial driver licenses.  The bond requirement would be retained without amendment.

Status:  1/30/23: (S) From Transportation and Technology: Do Pass.

SB 1210 – Funeral Services.  The proposed amendments would retain the bond requirement for funeral establishments that sell prearranged funeral agreements, and eliminate the language the requires the bond to be increased by $5,000 for each salesperson.  The bill also would eliminate the State Board of Funeral Directors and Embalmers and transfer the regulatory obligation to the Department of Health Services, and eliminate the registration requirements for assistant funeral director, an embalmer's assistant and salesperson.

Status:  1/31/23: (S) Read second time. 

SB 1715 – Contractors.  Would increase, from $1,000 to $2,500, the aggregate contract price, including labor and materials, for exclusion from licensure as a contractor with the Registrar of Contractors (ROC).  The bill also would require the ROC to increase the dollar amount of the exemption for inflation annually. 

Status:  2/27/23: (S) From Rules, proper for consideration. To Caucus. 

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

COMMERCIAL SURETY

NEW LAW:  HB 1090 – Public Officials - Hempstead County.  Would separate the offices of sheriff and tax collector in Hempstead County and require each person to give bond for the faithful performance of their respective duties.  The persons would be elected in the 2026 general election and take office on January 1, 2027.

Status:  1/27/23: Approved by the Governor; Act 12, effective 90 days after adjournment. 

HB – Towing Operators.  Would require towing operators to file a $50,000 surety bond. 

Status:  Draft 

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

COMMERCIAL SURETY

HB 23-1162 – Consumer Legal Funding Transactions.  Would establish the Colorado Consumer Legal Funding Act.  The bill provides that a consumer legal funding company must be registered with the attorney general (AG); a separate registration is required for each location.  A registration is valid for 2 years.  The AG may require each applicant to provide a bond in an amount not to exceed $50,000.  The bond term runs concurrently with the registration term.  The bond is conditioned that the registrant will faithfully comply with the article and all rules promulgated by the AG.

Status:  2/16/23: (H) From Business Affairs & Labor: Refer amended to Finance. 

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

COMMERCIAL SURETY

B 24-1148 – Credit Recovery Services.  Would amend the existing law to require transparency and accountability for credit recovery companies and organizations to protect consumer credit recovery services in the District, to be cited as the "Credit Recovery Services Transparency and Accountability Amendment Act of 2022."  The bill provides a list of prohibited actions for a consumer credit service organization.

Status:  12/9/22: In Committee of the Whole.  Notice of Intent to Act published in the DC Register.

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

COMMERCIAL SURETY 

HB 213 – Appraisal Management Companies.  Would act a section to the law relating to real estate appraisers and appraisal management companies.  The bill provides that an action to recover damages from an appraisal management company based on contract, tort or other legal theory for an act or omission in the performance of its services must be brought within 1 year after the date that the alleged act or omission is discovered, or should have been discovered, but in no case shall such action be brought more than 4 years after the date the services were performed, or should have been performed.  An action to recover damages against an appraisal management company for an act or omission in the performance of services that occurred prior to July 1, 2023 shall, in all events, be brought on or before July 1, 2024.  This new section would not apply to any administrative proceedings initiated by the board or department, or to any action in which it is alleged that an appraisal management company committed fraud. 

Status:  1/25/23: (H) Referred to Civil Justice Subcommittee; referred to Regulatory Reform & Economic Development Subcommittee; referred to Judiciary Committee.  Now in Civil Justice Subcommittee. 

Related Bill:  SB 398 

HB 321 – Movable Tiny Homes Dealers.  Would enact license and bond provisions for a person who deals in moveable tiny homes.  A licensed mobile home dealer may apply to the Department for authority to sell movable tiny homes; an additional bond would not be required for issuance of this endorsement to the mobile home dealer's license.  Before a license is issued or renewed, the applicant shall provide a good and sufficient surety bond conditioned on the dealer's complying with the conditions of any written contract made by that dealer in connection with the sale, exchange or improvement of any movable tiny home, and the dealer not violating any of the provisions of chapter 319 or this chapter in the conduct of the business.  The bond shall be to the Department and in favor of any retail customer who suffers any loss as a result of any violation of the bond conditions.  The bond shall be for the license period, and a new bond or a proper continuation certificate is required at the beginning of each license period; however, the aggregate liability of the surety in any one license year shall in no event exceed the sum of the bond.  The bond amount for a single dealer who buys, sells or deals in movable tiny homes and has 4 or fewer supplemental licenses shall file a $10,000 bond; a dealer that has more than 4 supplemental licenses shall file a $20,000 bond. 

Status:  2/1/23: (H) Referred to Transportation & Modals Subcommittee. Referred to Ways & Means Committee. Referred to Infrastructure & Tourism Appropriations Subcommittee. Referred to Commerce Committee.  Now in Transportation & Models Subcommittee. 

Related Bill:  HB 323 

SB 398 – Appraisal Management Companies.  Would act a section to the law relating to real estate appraisers and appraisal management companies.  The bill provides that an action to recover damages from an appraisal management company based on contract, tort or other legal theory for an act or omission in the performance of its services must be brought within 1 year after the date that the alleged act or omission is discovered, or should have been discovered, but in no case shall such action be brought more than 4 years after the date the services were performed, or should have been performed.  An action to recover damages against an appraisal management company for an act or omission in the performance of services that occurred prior to July 1, 2023 shall, in all events, be brought on or before July 1, 2024.  This new section would not apply to any administrative proceedings initiated by the board or department, or to any action in which it is alleged that an appraisal management company committed fraud. 

Status:  1/25/23: (S) Filed. 

Related Bill:  HB 213 

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

COMMERCIAL SURETY

HB 383 – Uniform Probate Code.  Would update articles I through IV of the Uniform Probate Code.  Would provide that any person having an interest in the estate worth in excess of $10,000 (currently $1,000), or any creditor having a claim in excess of $10,000 (currently $1,000), may make a written demand that a personal representative give bond.

Status:  2/3/23: (H) Passed second reading as amended in HD 1 and referred to Finance.

Related Bill:  SB 483

HB 631 – Occupational Licensing.  Would create a task force to investigate the current occupational licensing requirements in the state, which would include identification of licenses that can be replaced with bonding or insurance requirements, inspections or private certifications.  The task force would submit a final report of its findings and recommendations, including any proposed legislation, to the legislature no later than 20 days prior to the convening of the regular session of 2025.

Status:  1/27/23: (H) Referred to Consumer Protection & Commerce.

HB 1027 – Money Transmitters.  This bill continues the alignment of the State's money transmitters law with the provisions of the Model Money Transmitters Modernization Act, enabling the State to work within a network of states to license, supervise and examine transglobal money transmission companies as a multi-state system.  The bill would amend the net worth and bond requirement provisions.  The bill would require each applicant to provide a surety bond (irrevocable letter of credit or other similar security) in the amount of $100,000 for the first year of licensure (currently $10,000); thereafter, the amount would be determined by the licensee's outstanding money transmission obligations, up to a maximum of $500,000.

Status:  2/28/23: (H) Consumer Protection & Commerce recommended that the measure be passed, with amendments.

Related Bill:  SB 1325

SB 483 – Uniform Probate Code.  Would update articles I through IV of the Uniform Probate Code.  Would provide that any person having an interest in the estate worth in excess of $10,000 (currently $1,000), or any creditor having a claim in excess of $10,000 (currently $1,000), may make a written demand that a personal representative give bond.

Status:  3/2/23: (S) Reported from Judiciary with recommendation of passage on second reading, as amended (SD 1) and placement on calendar for third reading.

Related Bill:  HB 383

SB 1027 – Combat Sports Promoters.  Would establish the State Combat Sports Commission.  The bill provides that promoters must be licensed to conduct, hold or give combat sports contests, and prior to each contest a promoter shall provide a bond in an amount determined by the Commission to adequately cover the promoter's obligations for the event.  If the promoter fails to pay any obligations covered by the bond, any aggrieved person may file an action against the bond to recover the amount owed in the circuit court in the jurisdiction where the event was held.  The aggregate liability of the surety shall not exceed the amount of the bond, and any action must be commenced within 90 days after event was held.

Status:  2/17/23: (S) Reported from Commerce and Consumer Protection. Report adopted; passed second reading, as amended (SD 1) and referred to Ways and Means.

SB 1325 – Money Transmitters.  This bill continues the alignment of the State's money transmitters law with the provisions of the Model Money Transmitters Modernization Act, enabling the State to work within a network of states to license, supervise and examine transglobal money transmission companies as a multi-state system.  The bill would amend the net worth and bond requirement provisions.  The bill would require each applicant to provide a surety bond (irrevocable letter of credit or other similar security) in the amount of $100,000 for the first year of licensure (currently $10,000); thereafter, the amount would be determined by the licensee's outstanding money transmission obligations, up to a maximum of $500,000.

Status:  2/21/23: (S) Commerce and Consumer Protection recommends that the measure be passed, with amendments.

Related Bill:  HB 1027

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

COMMERCIAL SURETY 

HB 74 – Occupational Licensing.  Would prohibit additional methods of demonstrating competency to qualify for universal licensure, provide for conditional licensure under certain conditions, and provide for universal work recognition. 

Status:  2/2/23: (H) Introduced, read first time, and referred to JRA for printing. 

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

COMMERCIAL SURETY

HB 1198 – Electricians.  Would create the Program to License Electricians Act; provides that the Department of Financial and Professional Regulation shall create a program to license electricians in the state.  Once the program is in effect, all electricians in the state must be licensed to practice in the state.  Provides that the Department has the authority to adopt rules to create the program.

Status:  1/17/23: (H) Filed with the clerk. 

HB 1519 – Income Share Agreement Providers.  Would enact the Consumer Income Share Agreement (ISA) Act which would require ISA providers to be licensed, provide proof of a positive net worth in a minimum of $30,000, and maintain a surety bond in a minimum of $25,000.  The bond runs to the Director and is for the benefit of any consumer who incurs damages as a result of a violation of the Act or rules by a licensee.  If the Director at any time finds that a bond is of insufficient size, insecure, exhausted or otherwise doubtful, an additional bond in such amount as determined by the Director shall be filed by the licensee within 30 days after written demand by the Director.  ISA is defined as an agreement between a consumer and an ISA provider under which: (1) the ISA provider credits or advances a sum of money to the consumer or to a third party on the consumer's behalf or, if the ISA provider is a seller of goods or services to the consumer, the ISA provider credits or advances toward the purchase of such goods or services; (2) the consumer is obligated to make periodic payments, if any become due, to the ISA provider calculated, based upon or determined by the consumer's income; (3) the consumer only incurs an obligation in each payment period if their income is above an income threshold specified in the ISA; (4) there is an ISA duration after which the obligation is complete regardless of how much has been paid, as long as the consumer has paid any prior amounts due; and (5) each of these elements is available at the time of contracting of the ISA.  An ISA shall be treated as "credit" (within the meaning of that term under 15 USC 1602(f)) and as a "private education loan" (within the meaning of that term under 15 USC 1650(a)(8)) to the extent the proceeds of the ISA are used for postsecondary educational expenses in a manner consistent with the definition of that term. 

Status:  1/31/23: (H) First reading; referred to Rules Committee. 

SB 1495 – Public Adjusters.  Would increase the bond amount for public adjusters from $20,000 to $50,000. 

Status:  2/7/23: (S) First reading; referred to Assignments. 

SB 1560 – Timber Buyers.  Would replace the performance bond of timber buyers with a certificate of liability insurance in the amount of $1 million. 

Status:  2/8/23: (S) First reading; referred to Assignments. 

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

COMMERCIAL SURETY

HB 1343 – Occupational Regulations - Review.  Would require each public agency to conduct a review of all occupational regulations within its jurisdiction not later than 1/1/24.  All occupational regulations must be limited to those demonstrably necessary and carefully tailored to fulfill legitimate public health, safety or welfare objectives. 

Status:  1/17/23: (H) First reading; referred to Employment, Labor and Pensions. 

HB 1647 – Onsite Sewage System Technicians.  Would require applicants for an onsite sewage system technician license to submit proof of insurance or a surety bond in an amount determined by the Onsite Sewage System Technician Licensing Board, and containing terms and conditions satisfying the requirements established by the Board under this new article.  The Board also may adopt rules providing that an individual who has successfully completed the installer and inspector certificate programs of the Indiana Onsite Wastewater Professional Association is entitled to licensing under this chapter without satisfying certain requirements.  However, the rules may require an individual to submit proof of insurance or a surety bond.  The license would not be required until July 1, 2025. 

Status:  1/19/23: (H) First reading, referred to Environmental Affairs. 

SB 244 – Home Improvement Contractors.  Would add a new section to the law related to real property improvement contracts that would require a real property improvement supplier (contractor) to be covered by a surety bond by July 1, 2023.  The contractor would be required to post a surety bond in the amount of $50,000, payable to the State, to secure payment of restitution to a person aggrieved by a violation by the contractor after judgment has been rendered in favor of the State, and to secure payment of penalties, costs and fees included in the judgment.

Status:  1/11/23: (S) First reading, referred to Commerce and Technology. 

SB 452 – Mortgage Loan Originators.  Would make conforming revisions to the law as it relates to mortgage loan originators and exempt entities.  Directs the Department to amend its rule concerning mortgage lenders and originators in order to conform the rule to the bill's provisions concerning the sponsorship of licensed mortgage loan originators (MLOs) to engage solely as a third party loan processor or underwriter, and establish a rule to allow certain persons to sponsor one or more MLOs, who are not employees of the sponsoring person, to perform MLO activities exclusively for the sponsoring person under certain prescribed conditions.  The bill does not impact the bond requirements. 

Status:  2/10/23: (S) Referred to House. 

SB 458 – Money Transmitters.  Would repeal the Code chapter governing the licensing and regulation of money transmitters by the Department of Financial Institutions, and add a new chapter codifying the Money Transmission Modernization Act, to take effect on 1/1/24, and to be administered by the Division of Consumer Credit within the Department.  The licensee must maintain a surety bond in an amount which is the greater of $300,000 or an amount equal to the licensee's average daily money transmission liability in Indiana calculated for the most recently completed calendar quarter, up to a maximum of $500,000.  A licensee also must maintain a policy of insurance that insures the licensee against loss by a criminal act or an act of dishonesty.  The amount of the policy must be at least equal to the amount of the surety bond. 

Status:  2/2/23: (S) Insurance and Financial Institutions Committee Report: amend do pass, adopted. 

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

COMMERCIAL SURETY

SSB 1102 – Money Transmitters.  Would amend the Uniform Money Services Act to the Uniform Money Transmission Modernization Act and eliminate references to currency exchange.  The bill also would increase the net worth and increase the minimum bond amount to $100,000 or an amount equal to 100% of the licensee's average daily money transmission liability in the state calculated for the most recently completed 3-month period, up to a maximum of $500,000.

Status:  1/30/23: (S) Introduced and referred to Commerce. 

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

COMMERCIAL SURETY

HB 2105 – Earned Wage Access Services.  Would enact the Kansas Earned Wage Access Services Act, which would require providers to register and file a bond with the Office of the State Bank Commissioner.  The bond would secure the registrant's faithful performance of all duties and obligations; be payable to the Office of the State Bank Commissioner; be cancelable with 30 days' written notice; remain in effect for 2 years after the date of surrender, revocation or expiration of the registration, whichever comes first; be available for recovery of expenses, fines and fees levied by the Commissioner and payment of losses or damages incurred by any consumer due to a violation by the registrant; and be in the amount of $25,000.

Status:  1/30/23: (H) In Financial Institutions and Pensions. Hearing held.

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

COMMERCIAL SURETY

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. 

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. 

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

SB 187 – Commercial Financial Broker.  Would require registration with the Division of Finance prior to engaging in business as a commercial financial broker, and obtain a $10,000 surety bond in favor of the State.  A registration renewal would be required every year, not later than January 31.  Any person damaged by a broker's breach of contract or of any obligation arising therefrom, or by any violation of the law, may bring an action against the bond to recover damages suffered.  The aggregate liability of the surety shall be only for actual damages and in no event shall exceed the amount of the bond.  "Broker" is defined as any person who, for compensation or the expectation of compensation, obtains a commercial financing product or an offer for a commercial financing product from a third party that would, if executed, be binding upon that third party and communicates that offer to a business located in the state.  "Commercial financing product" means any commercial loan, accounts receivable purchase transaction, commercial open-end credit plan or each to the extent the transaction is a business purpose transaction.

Status:  2/27/23: (H) Second read. 

SB 296 – Home Improvement Contractors.  Would establish the Missouri Board of Home Improvement Contractors which would be empowered to administer the licensure of home improvement contractors and salespersons, and to investigate violations of the act and other laws relating to the home improvement business.  The bill also would establish the Home Improvement Contractor Fund.  A contractor would have to pay an additional fee (assessment) of $200 or file a surety bond.  After the effective date of the act, no political subdivision may enact a local law inconsistent with the provisions of this act.  The bond amount would be $25,000 and for the benefit of persons contracting with the principal for all claims of property damage arising from the principal's performance under a home improvement contract.  A separate license would be required for each place of business.  The bill also contains specific provisions for roofing contractors.

Status:  2/23/23: (S) Second read; referred to Governmental Accountability. 

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

COMMERCIAL SURETY

HB 73 – License Agent.  Would repeal the surety bond requirement for hunting and fishing license agents.  This bill was introduced at the request of the Department of Fish, Wildlife, and Parks.

Status:  2/23/23: (H) Transmitted to Governor.

HB 152 – Professional and Occupational Licensing.  Would revise the laws related to professional and occupational licensing by the Department of Labor and Industry.  The bill would reorganize and clarify generally applicable provisions under an administrative chapter, remove redundant provisions, and incorporate Department licensing programs into the chapter, creating a uniform licensing application process.  This is a 234-page bill that will take some time to read through in order to determine if there will be any significant impact on any licensing and bonding provisions, other than new statutory citations.

Status:  2/7/23: (H) In Business and Labor. Amendments available. 

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

COMMERCIAL SURETY

LB 264 – Grain Dealers.  Would increase the maximum amount of the bond required for grain dealers from $300,000 to $1,000,000.  It reads "The security shall be in an amount set by the commission of not less than thirty-five thousand dollars and not more than one million dollars."  The bill also would increase the maximum bond amount for grain warehouse operators (warehousemen) from $500,000 to $1,000,000.

Status:  3/2/23: Placed on General File. 

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

COMMERCIAL SURETY

AB 21 – Money Transmission.  Would amend the surety bond requirements for money transmitters; the bond would be payable to the State of Nevada for the use and benefit of any purchaser or holder of any outstanding money transmission obligation and for value in the principal sum of the greater of: $100,000 or an amount equal to 100% of the average daily money transmission liability in this state calculated for the most recently completed quarter, to a maximum of $500,000.  A licensee may maintain a bond in a principal sum that exceeds $500,000 and would not be required to calculate the average daily money transmission liability.  The bill secures the faithful performance of the obligations of the licensee respecting the provision of money transmission.  The bill also amends and adds provisions to the grounds for suspension, revocation or denial of renewal of a license section.  If enacted, the bill would be effective 7/1/2023.

Status:  2/6/23: (A) Read first time; referred to Commerce and Labor.

AB 39 – Residential Contractor.  Would amend the provisions relating to the contract requirements, specifically the schedule of payments.  The bill provides that with respect to a contract executed prior to October 1, 2023, if any schedule of payments in the contract does not comply with the chapter or any regulations, the obligation of the owner to make payments in accordance with the payment schedule is voidable, and the lender, if any, may not initiate proceedings to enforce the payment of any applicable loan unless and until the contract is reformed or otherwise amended to comply with the law.  These provisions would not apply if the residential contractor has furnished a bond for payment and performance covering full performance and completion of the contract and the cost of the bond is included in the price of the project.  Also, an owner has the right to request a bond for payment and performance if it is not otherwise required pursuant to NRS 624.270.

Status:  2/6/23: (A) Read first time; referred to Commerce and Labor.

SB 40 – Manufactured Housing - Certificates of Ownership.  Would, among other things, change the name of the document issued by the Housing Division of the Department of Business and Industry indicating the ownership of a manufactured home, mobile home, manufactured building or commercial coach or factory-built housing from a "certificate of ownership" to a "certificate of title."

Status:  2/6/23: (S) Read first time; referred to Growth and Infrastructure.

SB 57 – Managing General Agent.  Sec. 7 of the bill provides that before the issuance of a license as a managing general agent the applicant shall file with the Commissioner, and thereafter maintain in force while so licensed, a surety bond which complies with NRS 679B.175 in the sum of $50,000.

Status:  2/6/23: (S) Read first time; referred to Commerce and Labor. 

SB 59 – Certificates of Title - Vessels.  Would require an applicant who is seeking a certificate of ownership to a power-driven vessel that is unable to satisfy the Department that the applicant is entitled to a certificate of ownership to file a bond.  The bond requirement is basically the same as the one for motor vehicles. 

Status:  2/6/23: (S) Read first time; referred to Growth and Infrastructure. 

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

COMMERCIAL SURETY

HB 155 – Private Postsecondary Career Schools.  Would amend the bond provision to provide that a school shall secure a bond in an amount equal to at least 10% of the annual gross tuition for the current academic year.  The minimum bond amount of $10,000 would not change.

Status:  2/3/23: (H) In Education. Executive session held. Retained in committee; due out on 3/16.

Related Bill:  HB 168 

HB 168 – Private Postsecondary Career Schools.  Would amend the bond provision to provide that a school shall secure a bond in an amount equal to at least 10% of the annual gross tuition for the current academic year.  The minimum bond amount of $10,000 would not change.

Status:  2/3/23: (H) In Education. Executive session scheduled for 3/6.

Related Bill:  HB 155 

HB 607 – Game of Chance Operator Employers.  Would require a bond for each location where the game operator employer is conducting games of chance, conditioned on the licensees running games of chance in conformity with the law and rules and regulations prescribed by the Lottery Commission, in the amount of up to $1 million (currently $500,000) but not less than $25,000.  The amount of the bond in excess of $25,000 established for each licensee shall be based on that licensee's normal outstanding obligations of charity payments and state taxes, including any amounts due from historic racing revenue.  Licenses expire 3 years from the date of issuance. 

Status:  2/15/23: (H) In Ways and Means; public hearing held.  Scheduled for full committee work session on 3/7 and executive session on 3/8. 

Related Bill:  SB 120  

HB 655 – Office of Professional Licensure and Certification.  This bill redefines the roles and responsibilities of the Office of Professional Licensure and Certification (OPLC) for the boards and commissions.  OPLC issues licenses, sets fees, provides legal and investigatory services and presents administrative rules as advised by the boards and commissions.  The bill consolidates administrative authority for OPLC in a new chapter and repeals redundant provisions of law. 

Status:  2/28/23: (H) In Executive Departments and Administration; full committee work session held. Scheduled for executive session on 3/8. 

SB 120 – Game of Chance Operator Employers.  Would require a bond for each location where the game operator employer is conducting games of chance, conditioned on the licensees running games of chance in conformity with the law and rules and regulations prescribed by the Lottery Commission, in the amount of up to $1 million (currently $500,000) but not less than $50,000 (currently $25,000).  The amount of the bond in excess of $50,000 established for each licensee shall be based on that licensee's normal outstanding obligations of charity payments and state taxes, including any amounts due from historic racing revenue.  Licenses expire 3 years from the date of issuance. 

Status:  2/9/23: (S) Finance Committee Report: Ought to pass on 3/9, Floor date. 

Related Bill:  HB 607  

SB 190 – Advanced Deposit Wagering Providers.  Would add a new section to RSA 284 related to advanced deposit wagering, which would be authorized for pari-mutuel betting on horse racing if conducted in compliance with this section and the Interstate Horseracing Act of 1978, USC Title 15, section 3001 et seq.  A person or entity must have a license in order to accept advance deposit wagers, and file a bond (or irrevocable letter of credit or other form of financial guarantee) with the Lottery Commission.  The bond would be in favor of the State and specifically authorize recovery by the Commission for the payment of all revenues required by the law, as well as payments due to state resident account holders.  Additional bond provisions may be included in the regulations that should be available later this year. 

Status:  2/22/23: (S) Finance Committee Report: Ought to pass. Third reading.  

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

COMMERCIAL SURETY

AB 389 – Insurers and Insurance Producers - Cannabis-Related Businesses.  Would create certain protections for insurers and insurance producers engaging in the business of insurance in connection with cannabis-related businesses.  The bill provides that, notwithstanding any law to the contrary, no state or local government agency may: (1) prohibit, penalize or otherwise discourage an insurer or producer from engaging in the business of insurance in connection with a cannabis-related business; (2) terminate, cancel or otherwise limit the policies of an insurer solely because the insurer or producer has engaged in such business; (3) recommend, incentivize or encourage an insurer or producer not to engage in the business of insurance in connection with a policyholder, or downgrade or cancel the insurance and insurance services offered to a policyholder solely because the policyholder is or becomes the owner, operator or employee of a cannabis-related business; or (4) take any adverse or corrective supervisory action on an insurance policy against a cannabis-related business or a person that does business with or is employed by a cannabis-related business, solely because the business or person owns or operates or does business with or is employed by a cannabis-related business, as applicable. Insurers and producers, and the officers, directors and employees of insurers and producers, that engage in this business or who otherwise engage with a person in a transaction permissible under state law related to cannabis, may not be held liable pursuant to any state law or regulation solely for engaging in the business, or for further investing any income derived from that business.

Status:  9/15/22: (A) Reported out of Financial Institutions and Insurance and referred to Oversight, Reform and Federal Relations.

Related Bill:  SB 3239

AB 957 – Third-Party Disbursement Service Organizations.  Would require all third-party disbursement service organizations that contract with local government units and boards of education to make payments and execute financial transactions for those purposes to post a bond, in an amount and with sureties approved by the Local Finance Board, with the local government unit or board of education.  The bond would be forfeited in the event that the third-party disbursement service organization fails to make payments or execute financial transactions, including federal or state tax deposits, on behalf of the local government unit or board of education.

Status:  1/11/22: (A) Introduced and referred to State and Local Government.

AB 1548 – Used Motor Vehicle Dealers.  Would provide for the licensure of used motor vehicle dealers and establish an 8-member State Board of Used Motor Vehicle Dealers in the Division of Consumer Affairs in the Department of Law and Public Safety to oversee their licensure.  The bill provides for three types of licensure:  retail used motor vehicle dealer, wholesale used motor vehicle dealer, and retail-wholesale used motor vehicle dealer.  The bill also makes changes to several statutes relating to the licensure of motor vehicle dealers by the Motor Vehicle Commission.  In amending these statutes, the bill clarifies that the MVC will no longer license used motor vehicle dealers on or after the bill's date of enactment.

Status:  1/11/22: (A) Introduced and referred to Consumer Affairs.

AB 1551 – Home Improvement Contractors.  Would require all home improvement contractors to register with the Division of Consumer Affairs every two years and, as of December 31, 2018, maintain in effect during the entire period of registration a bond, irrevocable letter of credit, or securities, moneys or other security acceptable to the director.  The principal sum of the bond would be a minimum of $50,000, payable to the State of New Jersey for the use and benefit of any consumer who, after entering into a home improvement contract, incurs damages or suffers any loss arising out of a violation of the act.  The bond would cover restitution and penalties.  Any person making a claim against the bond may maintain an action at law against the contractor and the surety, or the director may make a claim against the bond on behalf of a consumer.  Aggregate liability.  The bond must provide that any consumer who may be claiming against the bond shall notify the director and the surety of the amount and nature of the claim prior to initiating any action against the contractor.  The surety may not pay a claim without prior authorization from the director.  There is a 10-day cancel or non-renew notice requirement.

Status:  1/11/22: (A) Introduced and referred to Regulated Professions.

Companion Bill:  SB 2101

Similar Bills:  AB 2138 and SB 1890 

AB 2138 – Home Improvement and Home Elevation Contractors.  Would create the New Jersey State Board of Home Improvement and Home Elevation Contractors within the Division of Consumer Affairs.  Every registered business that is engaged in home improvement or home elevation services shall maintain in effect during the entire period of registration a compliance bond (or an irrevocable letter of credit or securities, moneys or other security).  The principal sum of the bond shall be a minimum of: (1) $50,000 for the performance of services pursuant to a contract valued at more than $120,000 or for the performance of services, in the previous 12 months, for contracts valued at a minimum of $750,000; (2) $25,000 for the performance of services pursuant to a contract valued between $10,000 and $120,000 or for the performance of services, in the previous 12 months, for contracts valued between $150,000 and $750,000; and (3) $10,000 for the performance of services pursuant to a contract valued at less than $10,000 or for the performance of services, in the previous 12 months, for contracts valued less than $150,000.  The bond would cover penalties assessed by the Board. Any individual seeking to claim against the bond may maintain an action with the Board.  The bond shall not be payable for treble damage claims pursuant to the Consumer Fraud Act.  The aggregate liability of the surety to all individuals for all breaches of the conditions of the bond shall not exceed the amount of the bond.  Cancellation or nonrenewal shall not be effective unless and until at least 10 days' notice of intention to cancel or nonrenew has been received in writing by the registered business from the surety.  A business may reduce, by half, the amount of the required bond upon demonstration by a member of senior management of the business of completion of, prior to the next registration renewal period, a course in financial responsibility and stability developed or designated by the Board.

Status:  2/28/23: (S) Received in Senate; referred to Budget and Appropriations.

Companion Bill:  SB 1890

Similar Bills:  AB 1551 and SB 2101

AB 4263 – Financial Institutions and Insurers - Cannabis-Related Businesses.  Would protect financial institutions and insurers doing business with the cannabis industry from being penalized by state regulators.  A financial institution or insurer may provide services to or for the benefit of a legitimate cannabis-related business and its associates subject to: (1) the laws and regulations applicable to the provision of financial or insurance services to other customers; (2) any applicable consumer protection laws of the state; (3) any additional requirements established for the provision of services to a legitimate cannabis-related business or its associates by a federal regulatory agency or the department; and (4) to the extent the financial institution or insurer is providing services to a legitimate cannabis-related business in another jurisdiction, any additional requirements applicable to the financial institution or insurer established for the provision of the services by a regulatory agency of that jurisdiction.

Status:  12/5/22: (A) Reported out of Financial Institutions and Insurance and referred to Oversight, Reform and Federal Relations.

Related Bill:  SB 2819

AB 4680 – Cosmetology Schools.  Would clarify that the provisions of current law concerning requirements for the closure of private career schools that operate in the state also apply to certain schools licensed by the New Jersey State Board of Cosmetology and Hairstyling.  These schools would be required to file teach-out plans that address potential school closures with the Commissioner of Labor and Workforce Development.

Status:  11/3/22: (S) Received and referred to Commerce. 

Related Bill:  SB 3163 

AB 4961 – Consumer Contracts - Claims.  Provides that a consumer contract shall not limit the number of claims made against the contract that are allowed to proceed at the same time in an adjudication if: (a) the claims are similar; and (b) the claimants are represented by the same legal counsel or different legal counsel coordinating the adjudication of the claims.  "Adjudication" means a legal proceeding including, but not limited to, litigation and alternative dispute resolution, including arbitration and mediation, to resolve a legal dispute.  This bill would apply to service contracts.

Status:  1/12/23: (A) Reported out of Consumer Affairs and referred to Judiciary

AB 4976 – Consumer Legal Funding.  Would create the Consumer Legal Funding Act.  Every applicant would be required to file with the Commissioner of Banking, if the Commissioner so requires, a bond in an amount not to exceed $50,000.  A letter of credit may be filed in lieu of the bond.  The bond would run concurrent with the registration period, and provide that the applicant will faithfully conform to and abide by the provisions of the act and all rules lawfully made, and to any person any and all amounts of money that may become due or owing to the State or to any person under and by virtue of the act during the period for which the bond is given.

Status:  2/13/23: (A) Reported out of Financial Institutions and Insurance Committee with amendments, and referred to Judiciary. 

SB 1890 – Home Improvement and Home Elevation Contractors.  Would create the New Jersey State Board of Home Improvement and Home Elevation Contractors within the Division of Consumer Affairs.  Every registered business that is engaged in home improvement or home elevation services shall maintain in effect during the entire period of registration a compliance bond (or an irrevocable letter of credit or securities, moneys or other security).  The principal sum of the bond shall be a minimum of: (1) $50,000 for the performance of services pursuant to a contract valued at more than $120,000 or for the performance of services, in the previous 12 months, for contracts valued at a minimum of $750,000; (2) $25,000 for the performance of services pursuant to a contract valued between $10,000 and $120,000 or for the performance of services, in the previous 12 months, for contracts valued between $150,000 and $750,000; and (3) $10,000 for the performance of services pursuant to a contract valued at less than $10,000 or for the performance of services, in the previous 12 months, for contracts valued less than $150,000.  The bond would cover penalties assessed by the Board. Any individual seeking to claim against the bond may maintain an action with the Board.  The bond shall not be payable for treble damage claims pursuant to the Consumer Fraud Act.  The aggregate liability of the surety to all individuals for all breaches of the conditions of the bond shall not exceed the amount of the bond.  Cancellation or nonrenewal shall not be effective unless and until at least 10 days' notice of intention to cancel or nonrenew has been received in writing by the registered business from the surety.  A business may reduce, by half, the amount of the required bond upon demonstration by a member of senior management of the business of completion of, prior to the next registration renewal period, a course in financial responsibility and stability developed or designated by the Board.

Status:  12/19/22: (S) Referred to Budget and Appropriations.

Companion Bill:  AB 2138

Similar Bills:  AB 1551 and SB 2101

SB 2101 – Home Improvement Contractors.  Would require all home improvement contractors to register with the Division of Consumer Affairs every two years and, as of December 31, 2018, maintain in effect during the entire period of registration a bond, irrevocable letter of credit, or securities, moneys or other security acceptable to the director.  The principal sum of the bond would be a minimum of $50,000, payable to the State of New Jersey for the use and benefit of any consumer who, after entering into a home improvement contract, incurs damages or suffers any loss arising out of a violation of the act.  The bond would cover restitution and penalties.  Any person making a claim against the bond may maintain an action at law against the contractor and the surety, or the director may make a claim against the bond on behalf of a consumer.  Aggregate liability.  The bond must provide that any consumer who may be claiming against the bond shall notify the director and the surety of the amount and nature of the claim prior to initiating any action against the contractor.  The surety may not pay a claim without prior authorization from the director.  There is a 10-day cancel or non-renew notice requirement.

Status:  3/3/22: (S) Introduced and referred to Commerce.

Companion Bill:  AB 1551

Similar Bills:  AB 2138 and SB 1890 

SB 2819 – Financial Institutions and Insurers - Cannabis-Related Businesses.  Would protect financial institutions and insurers doing business with the cannabis industry from being penalized by state regulators.  A financial institution or insurer may provide services to or for the benefit of a legitimate cannabis-related business and its associates subject to: (1) the laws and regulations applicable to the provision of financial or insurance services to other customers; (2) any applicable consumer protection laws of the state; (3) any additional requirements established for the provision of services to a legitimate cannabis-related business or its associates by a federal regulatory agency or the department; and (4) to the extent the financial institution or insurer is providing services to a legitimate cannabis-related business in another jurisdiction, any additional requirements applicable to the financial institution or insurer established for the provision of the services by a regulatory agency of that jurisdiction.

Status:  6/9/22: (S) Introduced and referred to Commerce. 

Related Bill:  AB 4263 

SB 3163 – Cosmetology Schools.  Would clarify that the provisions of current law concerning requirements for the closure of private career schools that operate in the state also apply to certain schools licensed by the New Jersey State Board of Cosmetology and Hairstyling.  These schools would be required to file teach-out plans that address potential school closures with the Commissioner of Labor and Workforce Development.

Status:  10/3/22: (S) Introduced and referred to Commerce. 

Related Bill:  AB 4680

SB 3239 – Insurers and Insurance Producers - Cannabis-Related Businesses.  Would create certain protections for insurers and insurance producers engaging in the business of insurance in connection with cannabis-related businesses.  The bill provides that, notwithstanding any law to the contrary, no state or local government agency may: (1) prohibit, penalize or otherwise discourage an insurer or producer from engaging in the business of insurance in connection with a cannabis-related business; (2) terminate, cancel or otherwise limit the policies of an insurer solely because the insurer or producer has engaged in such business; (3) recommend, incentivize or encourage an insurer or producer not to engage in the business of insurance in connection with a policyholder, or downgrade or cancel the insurance and insurance services offered to a policyholder solely because the policyholder is or becomes the owner, operator or employee of a cannabis-related business; or (4) take any adverse or corrective supervisory action on an insurance policy against a cannabis-related business or a person that does business with or is employed by a cannabis-related business, solely because the business or person owns or operates or does business with or is employed by a cannabis-related business, as applicable. Insurers and producers, and the officers, directors and employees of insurers and producers, that engage in this business or who otherwise engage with a person in a transaction permissible under state law related to cannabis, may not be held liable pursuant to any state law or regulation solely for engaging in the business, or for further investing any income derived from that business.

Status:  10/27/22: (S) Introduced and referred to Commerce.

Related Bill:  AB 389

SB 3476 – Security Officer Companies.  Would amend the law to provide that the superintendent [of State Police] shall not require both the owner and the operator to have law enforcement experience or experience working for a licensed security officer company.  The existing bond requirement remains unchanged.

Status:  1/30/23: (S) Reported from Law and Public Safety Committee, 2nd reading. 

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

COMMERCIAL SURETY

HB 62 – Sale of Motor Vehicles.  Would limit the locations where a motor vehicle may be sold or offered for sale and prohibit the sale of a motor vehicle by a nonowner who is not a motor vehicle dealer.  The bill would limit the number of sales for a non-dealer to 4 and require such person to legally possess the title to the used motor vehicle that was not obtained as a result of fraud or duress, and the vehicle must be registered in the person's name.  It also provides that except as otherwise stated, a licensed dealer shall not sell or offer for sale a motor vehicle at a location other than the licensee's established place of business; provided, a vehicle shall not be deemed offered for sale at a location other than the licensee's established place of business if the vehicle is in use for a purpose other than to sell or offer the vehicle for sale.

Status:  2/15/23: (S) Referred to Tax, Business and Transportation.

HB 82 – Student Loan Servicers.  Would enact the Student Loan Bill of Rights Act.  The bill does not include a bond requirement for student loan servicers; however, Section 22 requires them to comply with all applicable federal laws and regulations relating to student loan servicing.  Section 23 provides that the director may promulgate rules and make reasonable orders necessary to implement this Act.  The bill allows for licensing through NMLS.

Status:  2/2/23: (H) Reported by Education Committee with Do Pass recommendation with amendments.

HB 229 – Public Adjusters.  Would exclude certain adjusters from bonding requirements.  Public adjusters would be required to post the $10,000 bond.  The bill also eliminates the option to file a cash bond in lieu of the surety bond.

Status:  2/25/23: (S) Referred to Tax, Business and Transportation.

HB 259 – Private Investigators and Patrol Officers.  Would eliminate the bond requirements and only require liability insurance.

Status:  2/15/23: (H) From Government, Elections and Indian Affairs Committee with Do Pass recommendation with amendments. Referred to Judiciary. 

SB 246 – Notaries Public.  Would make amendments to the Revised Uniform Law on Notarial Act.  The bill introduces the "automatic notarial officer," which means a person who has registered an official stamp with the Secretary of State, such as a judicial officer, county or deputy clerk, or an attorney.  There is no change to the $10,000 bond requirement.

Status:  3/2/23: (H) Referred to Judiciary. 

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

COMMERCIAL SURETY

AB 115 – Consumer Litigation Funding.  Would require consumer litigation funding companies to register with the Department of State and post a bond in an amount not to exceed $50,000, or an irrevocable letter of credit.  The bond would run concurrent with the term of the registration, and provide that the registrant will faithfully conform to and abide by the provisions of the law and regulations, and pay to any person(s) any and all moneys that may become due or owing to the state or such person(s).

Status:  1/4/23: (A) Referred to Consumer Affairs and Protection.

AB 264 – Nail Salons.  Would impose additional rules and requirements for the licensing of nail salons.

Status:  1/4/23: (A) Referred to Economic Development.

AB 1730 – Debt Settlement Companies.  Would enact a new law requiring debt settlement services providers to be licensed and bonded.  As a condition for the issuance and retention of a license, applicants would be required to file a bond with the superintendent, in favor of the superintendent, in the amount of $250,000.  The superintendent may require a larger bond or deposit if it is determined that a licensee has engaged in a pattern of conduct resulting in bona fide debtor complaints of misconduct and that such increased bond is necessary for the protection of debtors; or increase or decrease the amount of the bond based on the applicant's or licensee's financial condition, business plan, business experience or any other factor the superintendent considers appropriate.  The bond proceeds would constitute a trust fund to be used exclusively to reimburse fees that have improperly charged to or collected from debtors, to reimburse amounts not properly distributed to creditors or properly returned to debtors, and to pay outstanding banking department exam costs and assessments.

Status:  1/20/23: (A) Referred to Consumer Affairs and Protection.

AB 2238 – Master Electricians.  Would enact a new law that would allow master electricians to apply to the Secretary of State for a state license as a master electrician.  The license would not be required for the purpose of engaging in the profession of being a master electrician; however, it would be indicative that the holder has met the standards for training, knowledge and experience necessary to be a master electrician, and also authorize the holder to engage in the profession in any other state which grants reciprocity to electricians.  It would also authorize a holder to practice throughout the state, notwithstanding the provisions of the general city law and county law.  A license would be valid for 2 years and may be renewed for additional 2-year periods.  The bill also would create a board of examiners that would promulgate rules and regulations establishing the scope of the profession of being a master electrician, qualifications for the license, an exam and the fees.  There is no bond requirement in the bill.

Status:  1/25/23: (A) Referred to Economic Development.

AB 2702 – Consumer Litigation Funding.  Would require consumer litigation funding companies to register with the Department of State and post a bond in an amount not to exceed $50,000, or an irrevocable letter of credit.  The bond would run concurrent with the term of the registration, and provide that the registrant will faithfully conform to and abide by the provisions of the law and regulations, and pay to any person(s) any and all moneys that may become due or owing to the state or such person(s).

Status:  1/26/23: (A) Referred to Consumer Affairs and Protection.

Related Bill:  SB 2594

Companion Bill:  AB 115

AB 3499 – Automobile Brokers.  Would increase the bond required of automobile broker businesses from $100,000 to $250,000.  The bill also adds a deceptive trade practice to the existing provisions and several fraudulent business practices.

Status:  2/3/23: (A) Referred to Consumer Affairs and Protection.

AB 3602 – Process Servers.  Would enact a licensing requirement for process servers and require them to post a bond, contract of indemnity or irrevocable letter of credit with the Secretary of State in an amount based on the number of process servers employed, as follows: (a) for 1 to 4 process servers, $10,000; (b) 5 to 9 process servers, $25,000; (c) 10 to 20 process servers, $50,000; and (d) 20 or more process servers, $75,000.  The bond is conditioned on compliance with the new article, Article 29-H and Article 29-HH, and pay all civil penalties, fines or other obligations imposed by the Secretary or a court of law, investigatory costs required to be paid, or any final judgment entered against the licensee.  The surety's liability for all breaches of the bond condition is limited to the face amount of the bond, and limited to the amount of the penalty or investigatory costs.  In no event will the surety be liable for total claims in excess of the bond amount, regardless of the number or nature of claims made against the bond or the number of years the bond is in force; 30 days' notice for cancellation.  Any person injured may bring an action in his/her own name to enjoin an unlawful act or practice, an action to recover actual damages or $1,000, whichever is greater, or both such actions.  The court, in its discretion, may increase the award of damages to an amount not to exceed 3 times the actual damages up to $10,000 if the court finds the defendant willfully violated the law.  In the case of any successful action to enforce liability, the court may award the costs of the action together with reasonable attorney's fees.  A political subdivision may impose other requirements that are in addition to the minimum standards set forth in this article.

Status:  2/3/23: (A) Referred to Economic Development.

SB 666 – Consumer Debt Collectors.  Would amend the Banking Law by adding a new article for the licensing of consumer debt collectors.  The bill would establish a biennial license and require applicants to file and maintain a surety bond (through NMLS) for the benefit of creditors who obtain a judgment from a court of competent jurisdiction based on the failure of the licensee to remit money collected on account and owed to the creditor.  The bond would also be for the benefit of consumer debtors or the attorney general seeking restitution for consumer debtors when such debtor or the attorney general obtains judgment based on a violation by the licensee of the federal Fair Debt Collection Practice Act or any other New York law or federal law applicable to consumer debt collectors.  The amount of the bond would be based on the gross profit reported to the IRS for the previous year by the licensee as follows: (i) $10,000 for reported gross profit of less than $250,000; (ii) $25,000 for reported gross profit of $250,000 or more; (iii) $50,000 for reported gross profit of $500,000 or more; (iv) $75,000 for reported gross profit of $750,000 or more; or (v) $100,000 for reported gross profit of $1,000,000 or more.  The bond would be continuous and run concurrently with the license period.  The surety may cancel the bond by providing 60 days' written notice to the Department and the principal.

Status:  1/5/23: (S) Referred to Banks.

SB 2594 – Consumer Litigation Funding.  Would require consumer litigation funding companies to register with the Department of State and post a bond in an amount not to exceed $50,000, or an irrevocable letter of credit.  The bond would run concurrent with the term of the registration, and provide that the registrant will faithfully conform to and abide by the provisions of the law and regulations, and pay to any person(s) any and all moneys that may become due or owing to the state or such person(s).
Status:  1/23/23: (S) Referred to Consumer Protection.
Related Bill:  AB 2702
Companion Bill:  AB 115

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

Legislative developments significant to the surety bonding industry will be posted as soon as they become available.  Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY

HB 1068 – Mortgage Loan Servicers.  Would require certain residential mortgage loan servicers to maintain a minimum tangible net worth ranging from $100,000 to $1,000,000, or maintain a $1,000,000 surety bond.

Status:  1/12/23: (H) Re-referred to Appropriations. 

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

COMMERCIAL SURETY

SB 19 – Nonrecourse Civil Litigation Advance Businesses.  Would amend the law relating to nonrecourse civil litigation advance business, requiring that each company obtain and maintain in effort at all times a corporate surety bond in favor of the superintendent and in the penal sum of at least $50,000. The bill also adds a section listing prohibited acts.

Status:  1/17/23: (S) Read second time; referred to Judiciary.

SB 46 – Notaries Public.  Would require a notary public whose duties include notarizing an electronic document that is a will, trust, power of attorney or other estate planning document identified in rule by the Secretary of State to be bonded.  The bond would be in the amount of at least $25,000, payable to any individual harmed by a breach of duty by the notary and conditioned on the notary faithfullly discharging the duties of office of notary public.  The notary would also be required to maintain an errors and omissions policy of at least $25,000.

Status:  2/8/23: (S) Referred to Judiciary.  

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

Legislative developments significant to the surety bonding industry will be posted as soon as they become available.  Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.

COMMERCIAL SURETY

HB 2922 – Construction Contractors.  Would increase the bond amounts that licensed contractors must maintain as follows: residential general contractor - $20,000 to $25,000; residential specialty contractor - $15,000 to $20,000; resident limited contractor - $10,000 to $15,000; residential developer - $20,000 to $25,000; residential locksmith services contractor - $10,000 to $15,000; home inspector services contractor - $10,000 to $15,000; home services contractor - $10,000 to $15,000; home energy performance score contractor - $10,000 to $15,000; and residential restoration contractor - $10,000 to $15,000.  The required bond amounts for the various commercial contractors will each be raised by $5,000.  The bill also would increase the total amount paid from any one bond to nonowner complaints from $3,000 to $5,000.  The bond amount for construction flagging contractors would go from $20,000 to $25,000.  If enacted, the changes would become operative on 1/1/2024.

Status:  1/16/23: (H) Referred to Business and Labor.

SB 228 – Construction Contractors.  Would specify additional circumstances under which the CCB may revoke, suspend, condition or refuse to issue or reissue a license for a construction contractor, or impose a civil penalty for violation of laws that regulate the work of construction contractors in the state.

Status:  1/26/23: (S) In Labor and Business. Public hearing held. Public hearing and possible work session scheduled for 2/2.

SB 304 – Occupational Licensing.  Would establish the Task Force on Occupational Licensing.  The task force would examine occupational Licensing regulatory models; study the value of an occupational licensing regulatory agency to oversee licensing boards; recommend whether to create such an agency; and make any other recommendations regarding the reduction of barriers to making changes across occupational license types and populations.

Status:  1/31/23: (S) In Labor and Business. Public hearing held. Subsequent referral to Ways and Means. 

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. 

Legislative developments significant to the surety bonding industry will be posted as soon as they become available.  Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates. 

COMMERCIAL SURETY

HB 3278 – Appraisal Management Companies.  Would amend the registration requirements for appraisal management companies by eliminating the need to provide a detailed statement of financial condition; decreasing the amount of the bond from $50,000 to $25,000; adding a provision that states claims may be filed by the claimant on a claim form approved by the board, provided claims are limited to actual damages and do not include attorney's fees or punitive damages incurred by the claimant; all liability on a surety bond is applicable to the surety bond in effect as of the date of occurrence which gave rise to the liability.

Status:  1/10/23: (H) Read first time and referred to Labor, Commerce and Industry.

HB 3361 – Police Officers and State Troopers.  Would amend the law by adding Chapter 2 to Title 23 so as to create the South Carolina Department of Law Enforcement and Public Safety.  If enacted, the only that may change in regard to the $2,000 bond requirement for police officers and state troopers is the obligee name, from Department of Public Safety to Division of Public Safety.

Status:  1/10/23: (H) Read first time and referred to Judiciary.

SB 85 – Tort Reform - Payments of Judgments Against Governmental Employees and Officials; Third Party Claimant Allowed to Bring Bad Faith Suit Against Insurer.  Would amend the law relating to the tort liability of the State, an agency, a political subdivision or a governmental entity, generally, to require that they are liable for their torts in the same manner and to the same extent as a private individual subject to the provision allowing for a third party bad faith claim against an insurer.  The bill also would amend the section relating to limitations on liability and the prohibition against recovery of punitive or exemplary damages or prejudgment interest, to allow for court costs and interest from the date of the offer of judgment over and above the liability limits as a consequence of nonacceptance when an offer of judgment has been filed in a case and to allow a third party claimant to bring a bad faith action against an insurer and recover up to $1 million.

Status:  1/10/23: (S) Read first time and referred to Judiciary.

SB 259 – Structured Settlement Purchase Companies.  Would require structured settlement purchase companies doing business in the state to register with the Secretary of State and post a $50,000 surety or cash bond.  Registrations would be valid for one year.  Liability is not affected by a breach of contract, breach of warranty or any other act or omission of the bonded structured settlement purchase company.  The surety may cancel the bond by providing 20 days' written notice to the Secretary.

Status:  1/12/23: (S) In Judiciary. Referred to subcommittee. 

SB 365 – Public Officials.  Would add the Department of Consumer Affairs to the departments within the Executive Branch of state government and dissolve the Commission on Consumer Affairs; transition all relating functions and duties to the Department; and provide that an Administrator is the head of the Department.  This change would eliminate the section requiring each member of the commission to give a $25,000 bond (section 37-6-504).  The administrator and any designated deputies still would be required to provide $50,000 bonds.

Status:  1/10/23: (S) Read first time and referred to Banking and Insurance. 

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

COMMERCIAL SURETY

HB 1019 – Hunting and Fishing License Agents.  Would repeal the bond requirement for agents who sell hunting and fishing licenses.  The bill was filed at the request of the Department of Game, Fish and Parks.

Status:  1/19/23: (S) Read first time and referred to Agriculture and Natural Resources.

SB 43 – Money Transmission.  Would amend the alternate security provisions for money transmitters and adds sections relating to letters of credit and permissible investments.  It also adds provisions for licensure through NMLS.

Status:  1/19/23: (H) Read first time and referred to Commerce and Energy. Scheduled for hearing on 1/23. 

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

COMMERCIAL SURETY

HB 297 – Credit Access Business.  Would add new sections concerning payment methods for consumers utilizing the services of a credit access business.

Status:  11/14/22: (H) Filed.

HB 366 – Private High-Speed Rail Operators.  Would add a new section to Subchapter B, Chapter 112, Transportation Code, which would require that before a private entity begins operation of a high-speed rail, including the extension of an existing service, the entity must file with the department a bond in an amount determined by the commission to be sufficient to restore real property used for the service to its original condition if the service ceases operation.

Status:  11/14/22: (H) Filed.

HB 857 – Public Works Contracts.  Would require a governmental entity that makes a public work contract with a prime contractor to require the contractor to post a payment bond if the contract is in excess of $100,000.  The current threshold is $25,000.

Status:  12/1/22: (H) Filed. 

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

COMMERCIAL SURETY

HB 20 – Collection Agencies.  Would repeal the law for collection agencies, eliminating the existing bond requirement.

Status:  2/2/23: (H) Signed by the Speaker, sent for enrolling.

HB 30 – Wildlife License Agents.  Would amend the requirements for license agents; the bond remains intact.

Status:  2/2/23: (S) Favorable report from Natural Resources, Agriculture, and Environment. 

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

COMMERCIAL SURETY

HB 1464 – Marijuana Sales Tax.  The bill would allow the Virginia Cannabis Control Authority to, when deemed necessary and advisable to do so in order to secure the collection of taxes, require any person subject to the tax to file a surety bond to secure the payment of any tax, penalty or interest due or that may become due.  Securities approved by the Authority may be deposited in lieu of the bond.  The taxes imposed shall be assessed within 3 years from the date on which they became due and payable.  In the case of a false or fraudulent return with intent to defraud the Commonwealth, or a failure to file a return, the taxes may be assessed, or a proceeding in court for the collection of such taxes may be begun without assessment, at any time within 6 years from such date.

Status:  12/27/22: (H) Committee referral pending.

HB 1921 – Earned Wage Access Service Providers.  Would require any person providing earned wage access services to obtain a license from and post a bond with the State Corporation Commission.  "Earned wage access services" is defined as the business of delivering proceeds to consumers prior to the date on which an obligor is obligated to pay such consumer's salary, wages, compensation or other income to the consumer.  The amount of the bond is to be at least $10,000, or such greater sum as the Commission may require, but not to exceed a total of $100,000.  The bond is continuous and conditioned on the principal performing all written agreements with consumers relating to earned wage access services and conducting its licensed business in conformity with the law.  Any person damaged by a violation of the principal may proceed on the bond against the principal or surety, or both, to recover damages; aggregate liability.  If enacted, the act would become effective on 1/1/2025.

Status:  1/19/23: (H) In Commerce and Energy. Assigned to Subcommittee #1.

Related Bill:  SB 1217 

HB 1464 – Marijuana Sales Tax.  The bill would allow the Virginia Cannabis Control Authority to, when deemed necessary and advisable to do so in order to secure the collection of taxes, require any person subject to the tax to file a surety bond to secure the payment of any tax, penalty or interest due or that may become due.  Securities approved by the Authority may be deposited in lieu of the bond.  The taxes imposed shall be assessed within 3 years from the date on which they became due and payable.  In the case of a false or fraudulent return with intent to defraud the Commonwealth, or a failure to file a return, the taxes may be assessed, or a proceeding in court for the collection of such taxes may be begun without assessment, at any time within 6 years from such date.

Status:  12/27/22: (H) Committee referral pending.

HB 2247 – Driver Training Schools.  Would amend the license term requirements for Class A driver training schools from one year to two years and provide for a certification to sync with the license term.  No change to the bond requirements.

Status:  1/19/23: (H) Reported from Transportation, do pass.

SB 864 – Motor Vehicle Dealers.  Would amend the grounds for denying, suspending, or revoking licenses or certificates of dealer registration or qualification by adding to the list the failure to transfer the valid vehicle title of the sold motor vehicle to the buyer at the time of sale.

Status:  1/19/23: (S) In Transportation.  Passed by indefinitely.

SB 1063 – Driver Training Schools.  Would amend the license term requirements for Class A driver training schools from one year to two years and provide for a certification to sync with the license term.  No change to the bond requirements.

Status:  1/9/23: (S) Referred to Transportation.

SB 1093 – Notaries Public.  Would require every applicant for a notary or electronic notary commission to take, within 90 days preceding the application, a course of instruction and to complete a written examination.  The bill would also require any notary to keep a journal/electronic journal.

Status:  1/9/23: (S) Referred to Judiciary.

SB 1140 – Public Guardians.  Would require an appointed guardian and any staff employed by such guardian to perform guardianship duties, to complete the initial training developed by the Department of Aging and Rehabilitative Services within 4 months of the date of the initial court order of appointment, and guardians and staff appointed prior to July 1, 2024, to complete such training by January 1, 2026.

Status:  1/18/23: (S) Re-referred from Judiciary.  Re-referred to Rehabilitation and Social Services.

SB 1217 – Earned Wage Access Service Providers.  Would require any person providing earned wage access services to obtain a license from and post a bond with the State Corporation Commission.  "Earned wage access services" is defined as the business of delivering proceeds to consumers prior to the date on which an obligor is obligated to pay such consumer's salary, wages, compensation or other income to the consumer.  The amount of the bond is to be at least $10,000, or such greater sum as the Commission may require, but not to exceed a total of $100,000.  The bond is continuous and conditioned on the principal performing all written agreements with consumers relating to earned wage access services and conducting its licensed business in conformity with the law.  Any person damaged by a violation of the principal may proceed on the bond against the principal or surety, or both, to recover damages; aggregate liability.  If enacted, the act would become effective on 1/1/2025.

Status:  1/10/23: (S) Referred to Commerce and Labor.

Related Bill:  HB 1921 

SB 1480 – Auctioneers.  Would repeal the statutes relating to auctioneers.

Status:  1/18/23: (S) Referred to General Laws and Technology. 

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

COMMERCIAL SURETY

HB 1301 – Professional Licensing Review.  Would establish a sunset review process for all professional licensing requirements regulated by the Department of Licensing to ensure that the rights and well-being of current and future practitioners of the profession be given full protection from unnecessary regulatory burden and that regulations meant to safeguard public health and safety are still warranted.  Beginning in 2024, the Department would annually review and analyze approximately 20% of the professional licenses and prepare and submit an annual report to the members of the legislature by August 31.  The Department shall complete this process for all professional licenses within its jurisdiction within 5 years and every 5 years thereafter.  Each report shall include the Department's recommendations regarding whether the licenses should be terminated, continued or modified.

Status:  1/13/23: (H) Referred to Consumer Protection & Business.  Scheduled for public hearing on 1/25 and executive session on 1/27.

HB 1311 – Credit Services Organizations.  Would make amendments and add sections to the law, including technical changes, and require licensees to provide monthly statements to consumer clients.  The $10,000 bond requirement would not change.

Status:  1/13/23: (H) Referred to Consumer Protection & Business.  Public hearing held on 1/20.

HB 1358 – Professional Licensing Review.  The bill provides that no regulation shall, after January 1, 2024, be imposed upon a new professional license except for the exclusive purpose of protecting the public interest.  All bills introduced to regulate and implement a professional license for the first time should be regulated by the State only when: (a) unregulated practice can clearly harm or endanger the health, safety or welfare of the public, and the potential for the harm is easily recognizable and not remote or dependent upon tenuous argument; (b) the public needs can reasonably be expected to benefit from an assurance of initial and continuing professional ability; and (c) the public cannot be effectively protected by other means in a more cost-beneficial manner. 

Status:  1/16/23: (H) Referred to Consumer Protection & Business.  Scheduled for public hearing on 1/25, and executive session on 1/27. 

HB 1534 – Contractors.  Would increase the amount of the bond for a general contractor from $12,000 to $30,000 and for a specialty contractor from $6,000 to $15,000.  Any contractor registered as of June 30, 2024, who maintains that registration is in compliance until the next renewal of the contractor's certificate of registration.  The total amount paid from a bond to claimants other than residential homeowners must not exceed one-half of the bond.  The bill also would create the Homeowner Recovery Program which will be administered by the Department.  Beginning July 1, 2026, a person is eligible to recover from the Program provided that the following conditions are satisfied: (i) the person is a claimant with a final judgment against a registered contractor for a claim on his or her primary residence; (ii) the judgment specifies the actual damages suffered as a consequence of the claim; (iii) the claimant has proceeded against any existing bond; (iv) the judgment has not been satisfied in full; and (v) an application for recovery is made within 90 days after the conclusion of the civil action. 

Status:  2/24/23: (H) Executive action taken in Appropriations: 2nd substitute bill be substituted, do pass. Referred to Rules 2 Review.  

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

COMMERCIAL SURETY

HB 10 – County Officers.  Would increase the amount of the bond required of county officers to $100,000.  The officers include coroners, assessors, clerks, commissioners, sheriffs and surveyors.  The bill also eliminates the "with at least two (2) sureties" language, replacing it with "a sufficient surety." 

Status:  2/2/23: (S) Introduced and referred to S06 - Travel, Recreation, Wildlife & Cultural Resources.

HB 284 – Collection Agencies.  Would specify that debt buyers are collection agencies for purposes of regulation, thus they would be subject to the bond requirement.

Status:  2/3/23: (H) From Appropriations, recommend Do Pass. Placed on General File. 

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