NEWS

COMMERCIAL SURETY

NEW LAW:  HB 221 – Vehicle Transporters.  Would amend existing law to add transporters of all manner of vehicles to the law regarding issuance of temporary license plates and registration and, as such, would require the transporters to be bond.  The bill does not specify a bond amount.

Status:  Enacted, Act 2021-426; effective 10/1/21.  

NEW LAW:  SB 27 – Auctioneers.  Would allow licensure of nonresident, out-of-state auctioneers.  An applicant must provide proof of financial responsibility in the form of an irrevocable letter of credit or a cash or surety bond in the amount of $10,000.  A surety bond shall be payable to the State Board of Auctioneers and conditioned on compliance with the law and the rules adopted by the Board.

Status:  Enacted, Act 2021-438; effective 8/1/21. 

NEW LAW:  SB 374 – Public Officials - Tax Collectors.  This bill would substantially revise the law governing tax collectors and the duties and power thereof.  Would provide that appointed deputies shall be responsible for any errors that they make, and the bond for each deputy shall be not less than 50% of the tax collecting official's bond.  The bill would also amend the commissions a tax collecting official could collect. 

Status:  Enacted, Act 2021-515; effective 10/1/21. 

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

COMMERCIAL SURETY

HB 36 – Motor Vehicle Dealers.  Would increase the amount of the bond of motor vehicle dealers from $50,000 to $100,000; the amount of the bond for a motorcycle dealer would remain at $25,000.  The bill also would require dealers to maintain public liability and property damage insurance on the dealer's operations in the state.

Status:  5/19/21: (H) Awaiting transmittal to the Governor.   

SB 9 – Alcoholic Beverages.  Would revamp the license structure and provide for endorsements to licenses.  This bill would not impact the tax bond requirements.

Status:  5/3/21: (S) In Finance. Hearing held.   

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

COMMERCIAL SURETY

NEW LAW:  HB 2029 – Barber and Cosmetology Schools.  Would combine the Board of Barbering and the Board of Cosmetology to be named the Barbering and Cosmetology Board.  As introduced, the bond section has a few minor revisions that do not affect the $25,000 bond requirement for schools. 

Status:  5/7/21: Signed by the Governor; Ch. 334; effective 1/1/22. 

SB 1010 – Election Recounts.  Would add section 16-661.01 to the election law, which provides that a person may file an action for a recount in any election that is not subject to an automatic recount if the person files a bond with the superior court in a form and in an amount as determined by the court to be sufficient to provide for full reimbursement of the costs of conducting the recount.  The person filing the action may request a recount by hand count or by use of voting equipment, and the amount of the bond shall reflect the type of recount requested.

Status:  3/29/21: (H) From Rules: Constitutional and in proper form. 

NEW LAW:  SB 1049 – Insurance - Electronic Communications.  This is the omnibus insurance bill.  This bill would amend AZ ST 20-239, electronic communications and records; subsection P would be amended to add several types of insurance products, including surety.  The bill also proposes amendments to the service contract sections, one of which is lowering the net worth requirement of at least one officer of the issuing corporation from $100,000,000 to $25,000,000.

Status:  2/9/21: Signed by the Governor; Ch. 5; effective 90 days after adjournment.

SB 1086 – Pharmacy Wholesale Distributors.  Would strike the requirement for a $100,000 permit bond from representatives of a full-service wholesale permittee with the Arizona State Board of Pharmacy.  It does insert new language stating the bond must comply with federal law.

Status:  1/20/21: (S) Introduced, first read; referrals to Health & Human Services; and Rules.

NEW LAW:  SB 1115 – Notaries Public.  Would repeal current law and enact RULONA under a new code section.  Would require applicants for an initial commission and renewal to take an education course and pass an exam.  The bond requirement would remain at $5,000 for a four-year commission term.

Status:  3/18/21: Signed by the Governor; Chapter 66; effective 6/30/22. 

NEW LAW:  SB 1218 – Occupational Licensing.  Would require agency review of occupational licensing requirements for nonhealth professions, which would minimize unnecessary occupational licensing and regulations through agency review of all occupational rules and regulations and occupational licenses within their jurisdictions.

Status:  4/5/21: Signed by the Governor; Chapter 176; effective 90 days from adjournment.   

NEW LAW:  SB 1463 – Consumer Loans.  Would make various changes to the Arizona Department of Insurance and Financial Institutions (DIFI), retroactive to July 1, 2020.  The bill would make technical changes needed due to the consolidation of the DFI and the ATA into the DOI; e.g., changes "superintendent" to "deputy director."  The bill also would modify the definition of "consumer loan" to mean the direct closed end loan of money, whether unsecured or secured by personal or real property, in an amount of $50,000 or less, rather than $10,000 or less, that is subject to a finance charge in which only the principal amount of the loan is considered, and not any finance charges or other fees allowed pursuant to section 6-635, for the purpose of determining whether the consumer loan is $50,000 or less.

Status:  5/10/21: Signed by the Governor; Ch. 356; effective 90 days from adjournment. 

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

COMMERCIAL SURETY

NEW LAW:  HB 1141 – Cemetery Act for Perpetually Maintained Cemeteries - Fidelity Bonds.  Would amend several sections of the Act.  The bill would make minor changes to the performance and payment bond sections and the fidelity bond requirements for the trustee of the maintenance fund.  If the trustee is a cemetery company, the designated disbursing trustee would be responsible for depositing with the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services (the "Board") a fidelity bond payable to the trust fund in a penal sum not less than 80% (existing amount is 100%) of the value of the trust fund principal at the beginning of each calendar year.  The bill would add a provision that an individual trustee would deposit with the Board a fidelity bond in a penal sum not less than 80% of the value of the trust fund principal at the beginning of each calendar year.  If a permanent maintenance fund of a cemetery contains less than $10,000, a bond is not required when a cemetery has designated trustees.

Status:  4/15/21: (H) Approved by the Governor; Act 731; effective 90 days from adjournment, around 8/1/21.

NEW LAW:  SB 150 – Money Transmitters.  Would amend the Uniform Money Services Act.  Would redefine "money transmission" to mean selling or issuing payment instruments, stored value, or prepaid access, or receiving money, virtual currency, or monetary value for transmission.  Would add a definition of virtual currency.  Would expand the liability under the bond.

Status:  4/1/21: (S) Approved by the Governor; Act 532; effective 90 days from adjournment, around 8/1/21.  

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

COMMERCIAL SURETY

NEW LAW:  HB 21-1019 – Factory-Built Structures.  Would make modifications to the regulations of factory-built structures, manufactured housing, and installers and sellers of manufactured housing.  The bill clarifies that the Division of Housing has enforcement powers over the installation and sale of manufactured homes; allows the Division to set the surety bond, insurance, and educational requirements for a registered installer of a manufactured home by rule-making; clarifies what costs the installer may be required to pay if a home was not completely installed; requires an insurer to pay the Division the amount of a claim against the surety bond if there has been a finding that the installer failed to perform as required by law (deletes final judgment requirement); allows the Division to set escrow requirements and the minimum amount of a financial instrument filed by a registered seller of a manufactured home through rule-making; and removes the restriction that any financial instrument filed with the Division is only revocable upon the written consent of the attorney general. 

Status:  5/10/21: Signed by the Governor; Ch. 122; effective 90 days from adjournment.

SB 21-057 – Private Education Lenders.  Would expand the existing Colorado Student Loan Servicers Act, which applies only to persons who service student loans, by adding a new part 2 covering private lenders, creditors, and collection agencies in connection with those student education loans that are not made, insured, or guaranteed under federal law and that are used for postsecondary education.  Part 2 is intended to complement, and should be construed in harmony with, Part 1 of Article 20 to provide seamless and consistent protection to borrowers whenever possible.

Status:  6/7/21: (H) Third reading passed, no amendments.

SB 21-169 – Restrict Insurers' Use of External Consumer Data.  Would prohibit an insurer from directly or indirectly using any external consumer data and information source, algorithm, or predictive model (external data source) that unfairly discriminates against an individual based on their race, color, national or ethnic origin, religion etc.  As introduced, this bill would impact surety.  On and after January 1, 2022, an insurer that uses one or more external data sources in any insurance practice shall submit certain disclosures to the Division of Insurance for examination.  If the Commissioner determines that use of an external data source bears no direct casual relationship to insurance losses or to the condition of a property or applicant to be potentially insured, and that the use of the source unfairly discriminates on the basis of a person's membership in a protected class, the Commissioner may promulgate rules restricting or prohibiting the use of the external data source.

Status:  6/7/21: (S) Considered House amendments; result was to concur-repass.

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. 

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 121 – Notaries Public - RONs and Services Providers.  Would authorize the employer of a notary public to require use of a particular technology and provider in performing notarial acts with respect to electronic records, require RON service providers to file a self-certification with the Department of State, and prohibit RON service providers from using, selling, or offering to sell or transfer personal information obtained in the course of performing online notarizations.

Status:  4/8/21: (H) Ordered enrolled. 

Related Bill:  SB 228 (identical) 

HB 139 – MV Title Certificates and Registrations - County Tax Collectors.  Would authorize tax collectors to accept applications for motor vehicle and vessel certificates of title by electronic or telephonic means, and contract with vendors to provide such transactions.  Tax collectors are required to be bonded per Fla. Stat. 137.02 (Title XI).  

Status:  4/22/21: (H) Ordered enrolled.

HB 735 – Local Occupational Licensing.  Would preempt licensing of occupations to the State, prohibit local governments from imposing additional licensing requirements or modifying licensing unless specified conditions are met, specify that certain specialty contractors are not required to register with the CILB, prohibit local governments from requiring certain specialty contractors to obtain a license under specified circumstances, specify job scopes for which a local government may not require a license, and authorize counties and municipalities to issue certain journeyman licenses. 

Status:  4/27/21: (H) Ordered enrolled.  

HB 915 – Public Officials - Port of Palm Beach District.  Would eliminate the bonds required of members of the board of commissioners of the district and the secretary-treasurer.  The bill also would revise the term “port manager” to “port director.”  Existing law authorizes the port manager or a designated employee to disburse funds of the board and requires such person to be covered at all times by a fidelity bond in an amount at least equal to the maximum amount of funds that would be held in the account at any one time. 

Status:  4/29/21: (H) Ordered enrolled. 

NEW LAW:  SB 50 – Sales and Use Tax.  Various amendments; revises the definition of "retail sale."  

Status:  4/19/21: Approved by the Governor; Chapter 2; effective 7/1/21.

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

COMMERCIAL SURETY

HB 1192 – Small Loan Lenders - Small Dollar Installment Loans.  Would require licensure and bonding for small dollar lenders that offer small dollar installment loans to consumers.  The penal sum of the bond would be a minimum of $30,000 and a maximum of $250,000, based on the annual dollar amount of loans originated.  The bond would run to the State of Hawaii for the use and benefit of the State and any person who may have a cause of action against the licensee, and be conditioned on the licensee faithfully conforming to and abiding by the law and all rules adopted.  Annual licensing would be through NMLS.  Each branch office must be licensed.  The bill also would require check cashers to be registered and to offer customers the option to participate in a voluntary payment plan, structured to pay the existing debt, both the principal and the fee, in at least four equal payments that coincide with the customer's pay dates or the date the customer is scheduled to receive benefits, unless the customer requests different payment due dates.

Status:  4/28/21: (H) Transmitted to the Governor.  

SB 385 – Uniform Trust Code.  Would enact the Uniform Trust Code (2018 version) with appropriate amendments to reflect Hawaii law and practice where relevant.  Provides that the terms of a trust prevail over any provision of the chapter except, among other things, the power of the court to require, dispense with, or modify or terminate a bond.  Under a revocable trust, a trustee shall give bond to secure performance of his or her duties only if the court finds that a bond is needed to protect the interests of the beneficiaries, or is required by the terms of the trust and the court has not dispensed with the requirement.  The court may specify the amount of a bond, its liabilities, and whether sureties are necessary, and may modify or terminate a bond at any time. 

Status:  4/29/21: (S) Enrolled to Governor.  

SB 974 – Small Loan Lenders - Small Dollar Installment Loans.  Would require licensure and bonding for small dollar lenders that offer small dollar installment loans to consumers.  The penal sum of the bond would be a minimum of $30,000 and a maximum of $250,000, based on the annual dollar amount of loans originated.  The bond would run to the State of Hawaii for the use and benefit of the State and any person who may have a cause of action against the licensee, and be conditioned on the licensee faithfully conforming to and abiding by the law and all rules adopted.  Annual licensing would be through NMLS.  Each branch office must be licensed.  The bill also would require check cashers to be registered and to offer customers the option to participate in a voluntary payment plan, structured to pay the existing debt, both the principal and the fee, in at least four equal payments that coincide with the customer's pay dates or the date the customer is scheduled to receive benefits, unless the customer requests different payment due dates.

Status:  3/25/21: (H) Passed second reading as amended in HD 1 and referred to Finance. 

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

COMMERCIAL SURETY

NEW LAW:  HB 78 – Insurance - Surety Bond Requirements.  Provides that the director of the Department of Administration shall determine the nature and extent of needs for surety bonds and insurance coverages of all kinds, other than life and disability insurances, as to risks and property of all offices, departments, divisions, boards, commissions, institutions, agencies, officers, agents, employees, and operations of the government of the state of Idaho, the premiums on which are payable in whole or in part from funds of the state.

Status:  3/12/21: Signed by the Governor; Chapter 42; effective 1/1/22

NEW LAW:  SB 1026 – Occupational Licensing.  Would amend existing law to provide that various occupational licensing boards shall be integrated into the Division of Occupational and Professional Licensing.

Status:  4/14/21: Signed by the Governor; Chapter 222; effective 7/1/21. 

NEW LAW:  SB 1056 – Occupational Licensing.  Would continue the reorganization of the Division of Occupational and Professional Licenses (DOPL) consistent with Executive Order No. 2020-10.  The proposal would merge the Division of Building Safety (DBS) into the DOPL and assign duties of the DBS administrator to the DOPL administrator.  The passage of this bill may require us to make some minor revisions to our files.

Status:  4/14/21: Signed by the Governor; Chapter 224; effective 4/14/21.  

NEW LAW:  SB 1084 – Occupational Licensing - Review of Licensing/Regulation Requirements.  Would require the Occupational and Professional Licensure Review Committee to conduct a sunset review of each licensing authority on a rotating basis, to include review of the existing laws and regulations.  Licensing authorities would be divided into six groups and the committee would review at least one group each year.  Each licensing authority would be reviewed at least every five years.  Upon completion of the review process, the committee would issue a report that would include its findings as to whether: (i) the existing licensing or other regulation is necessary to protect against present, recognizable, and sufficient harm to the health, safety, or welfare of the public to warrant the regulation; (ii) the existing licensing or other regulation is the least restrictive regulation necessary; (iii) the public can be effectively protected by other means; (iv) the overall cost-effectiveness and economic impact of the existing licensing or other regulation of the profession or occupation, including the direct and indirect costs to consumers, is outweighed by the benefits of the licensing or other regulation; (v) the existing licensing or other regulation has had an unreasonably negative effect on job creation, job retention, or wages in the state or has placed unreasonable restrictions on the ability of individuals who seek to practice or who are practicing a given profession or occupation to continue to practice or to find employment; and (vi) other relevant information should be considered.  The committee's report would include a recommendation as to whether the existing licensing/regulation should be repealed or amended to reduce barriers to licensure.

Status:  4/13/21: Signed by the Governor; Chapter 177; effective 7/1/21. 

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

COMMERCIAL SURETY

HB 14 – Professional Licensing - Fresh Start.  Provides that if the Department of Financial and Professional Regulation refuses to issue a license or certificate or grant registration to an applicant based upon a criminal conviction, the Department shall include in its notification to the applicant an explanation of how the conviction directly relates to and would prevent the person from effectively engaging in the position for which a license, registration, or certificate is sought.

Status:  5/29/21: (H) Passed both Houses. 

SB 97 – Notaries Public.  Would amend the Illinois Notary Public Act to provide requirements concerning electronic notarization and electronic notaries.  An electronic notary who performs electronic notarial acts by means of audio-video communication would be required to obtain and maintain a $25,000 surety bond, which would be exclusively conditioned on the faithful performance of electronic notarial acts by the electronic notary.  The bond amount for a regular notary remains at $5,000.  A notary public also would be required to maintain an errors and omissions insurance policy in a minimum amount of $25,000.  All bonds would be filed with the Secretary of State.

Status:  4/16/21: (S) Rule 3-9(a) - rereferred to Assignments.

SB 2664 – Notaries Public.  Would amend/update the notary public law to include the provisions for electronic and remote notarization.  The Secretary of State would have the authority to adopt administrative rules mandating a course of study and examination and establishing the course of study content, length of the course of study to be required, and to approve any course of study providers.  Under existing law, a notary public must post a $5,000 surety bond.  The bill would require applicants applying for an electronic notary commission to be commissioned as a notary public and to provide satisfactory proof of completion of any required course on electronic notarization and passed a qualifying exam.  A notary public that performs notarizations either remotely or electronically and by means of audio-video communication would be required to obtain and maintain a $25,000 surety bond, conditioned on the faithful performance of remote notarial acts or electronic notarial acts by means of audio-video communication.  When a notary is required to hold both the $5,000 bond and the $25,000 bond, one bond totaling $30,000 shall be satisfactory.  In addition to the bond, a notary public would have to maintain an errors and omissions insurance policy in the minimum amount of $25,000 and on such terms as are specified by the Secretary by rule and that are reasonably necessary to protect the public.  Any revocation, resignation, expiration, or suspension of the commission of a notary public terminates or suspends any commission to notarize electronically.

Status:  5/30/21: (S) Passed both Houses.

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

COMMERCIAL SURETY

SB 186 – Public Officials.  Would eliminate the requirement for prosecuting attorneys to provide a surety bond for the faithful execution of their duties. 

Status:  3/25/21: (H) Courts and Criminal Code Committee Report: Amend, do pass, adopted. 

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

COMMERCIAL SURETY

NEW LAW:  HF 560 – Waste Tire Haulers.  Would increase the amount of the bond required of waste tire haulers from $10,000 to $150,000.
Status:  3/22/21: Signed by the Governor; effective 7/1/21. 

NEW LAW:  HF 644 – Postsecondary Educational Institutions.  Would require every person, firm, association, or corporation maintaining or conducting in Iowa any educational course by classroom instruction or by correspondence or by other delivery method, or soliciting in Iowa the sale of such course, to file with the College Student Aid Commission a continuous corporate surety bond to the State of Iowa in the sum of $50,000 or 10 percent of the total annual tuition determined in accordance with subsection 2, whichever is less.  A school that files with the Commission a bond in a sum less than $50,000 shall provide to the Commission, in the format prescribed, a notarized statement attesting to the total amount of tuition the school charged to students in the immediately preceding fiscal year.  The Commission will determine the sufficiency of the statement and the amount of the bond.  The Commission may accept a letter of credit issued by a state or federally chartered bank or credit union in lieu of the bond.  The bill also strikes provisions relating to the Commission's ability to reduce a school's bond and limiting the aggregate liability of the surety for breaches of the conditions of the bond.

Status:  6/8/21: Signed by the Governor; effective 7/1/21.  

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

COMMERCIAL SURETY

NEW LAW:  SB 105 – Conservatorships of Abandoned and Blighted Buildings.  Would amend existing law regarding conservators appointed by a court to take possession of and undertake the rehab of an abandoned and blighted building.  An appointed conservator may be required to post a bond in an amount determined by the court, not to exceed the assessed value of the building at the time of the appointment, prior to proceeding as conservator.  If the owner is allowed to proceed with abatement, the court may require the owner to post a bond in the amount of the repair costs estimated in the petition as a condition of retaining possession of the building.

Status:  3/29/21: Governor's veto overridden. Delivered to Secretary of State; Chapter 166; effective 1/1/22.   

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

HF 89 – Election Recounts.  Would require a candidate for office requesting a recount to file a bond, cash or other surety with the filing officer, in an amount set by the filing officer for the payment of the recount expenses. 

Status:  3/10/21: (H) In State Government Finance and Elections. Referred by Chair to Local Government Division.

Related Bill:  SF 218  

SF 218 – Election Recounts.  Would require a candidate for office requesting a recount to file a bond, cash or other surety with the filing officer, in an amount set by the filing officer for the payment of the recount expenses. 

Status:  2/11/21: (S) In State Government Finance and Policy and Elections. Four authors have been added. 

Related Bill:  HF 89

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

COMMERCIAL SURETY

HB 349 – Empowerment Scholarship Accounts Program.  Would require any educational assistance program that receives contributions of $50,000 or more during the school year to post a bond in an amount equal to the aggregate amount of contributions expected to be received during the school year.

Status:  5/25/21: (H) Delivered to the Governor.   

HB 471 – Roofing Contractors.  Would establish provisions requiring registration certificates for roofing contractors and would authorize the Division of Professional Registration to adopt rules and regulations necessary to implement the provisions, including rules concerning, among other things, the "acquisition of insurance, indemnity coverage, or surety bonds in amounts determined by the Division." 

Status:  4/1/21: (H) Referred to Special Committee on Small Business. 

HB 500 – Mechanical Contractors.  Would create the Office of Mechanical Contractors within the Division of Professional Registration, which would regulate mechanical contractors.  A company that wants to engage in mechanical contracting is required to employ at least one statewide license holder, who may represent only one company at a time.  Political subdivisions may establish their own local mechanical contractor license, but shall recognize a statewide license in lieu of a local license.  Mechanical contractor licenses would be biennial.  An applicant for a statewide license would have to provide proof of liability insurance in the amount of $1,000,000, and post bond with each political subdivision in which he or she will perform work as required by that political subdivision.  This legislation appears to follow the electrical contractor law enacted in 2018. 

Status:  4/26/21: (S) In Professional Registration; public hearing held.  

Related Bill:  SB 11

HB 509 – Public Officials.  Would require candidates for county recorder to provide the election authority with a copy of an affidavit of bondability, and would increase the bond amount from $1,000 to $5,000. 

Status:  2/22/21: (H) In Rules - Administrative Oversight. Executive Session completed: Reported Do Pass. 

HB 539 – Retail Electric Suppliers - Energy Generation Unit Installation.  Would add a new section relating to the net metering and easy connection act, which provides that if a professional electrician or engineer is not licensed, the retail electric supplier may require a bond or other form of surety to insure the safe installation and operation of the qualified electric energy generation unit.

Status:  2/24/21: (H) In Utilities; public hearing completed.     

HB 740 – Private Security Professionals.  Would establish requirements for licensing private security professionals, which would include providing proof of a bond or other acceptable surety in an amount to be determined by the Division for all claims of injury, loss, or damage arising from the practice of the private security professional.

Status:  5/14/21: (H) Referred to Professional Registration and Licensing.

HB 865 – Public Officials.  Would authorize the creation of county early childhood education boards and require the treasurer of each board to furnish a surety bond, in an amount to be determined by the board, for the faithful performance of the treasurer's duties and faithful accounting of all moneys that may come into his or her hands.  The cost of the bond would be paid by the board.

Status:  2/25/21: (H) Committee Substitute reported Do Pass. Referred to Rules - Legislative Oversight.  

SB 11 – Mechanical Contractors.  Would create the Office of Mechanical Contractors within the Division of Professional Registration, which would regulate mechanical contractors.  A company that wants to engage in mechanical contracting is required to employ at least one statewide license holder, who may represent only one company at a time.  Political subdivisions may establish their own local mechanical contractor license, but shall recognize a statewide license in lieu of a local license.  Mechanical contractor licenses would be biennial.  An applicant for a statewide license would have to provide proof of liability insurance in the amount of $1,000,000, and post bond with each political subdivision in which he or she will perform work as required by that political subdivision.

Status:  5/13/21: (S) On Informal Calendar S Bills for Perfection.  

Related Bill:  HB 500

SB 62 – Public Officials.  Would require candidates for county recorder to provide the election authority with a copy of an affidavit of bondability, and would increase the bond amount from $1,000 to $5,000.

Status:  5/13/21: (S) On Informal Calendar S Bills for Perfection with SCS.  

Related Bill:  HB 509 

SB 178 – Retail Electric Suppliers - Energy Generation Unit Installation.  Would add a new section relating to the net metering and easy connection act, which provides that if a professional electrician or engineer is not licensed, the retail electric supplier may require a bond or other form of surety to insure the safe installation and operation of the qualified electric energy generation unit.

Status:  4/21/21: (S) Commerce, Consumer Protection, Energy and the Environment: SCS voted Do Pass.   

SB 296 – Education Savings Accounts - Elementary and Secondary Students.  Would require schools receiving more than $50,000 in funds from education savings accounts during the school year to provide a surety bond payable to the State in an amount equal to the aggregate amount of the funds from such accounts expected to be paid during the school year, or financial information that demonstrates the school's ability to pay an aggregate amount equal to the amount of the funds from education savings accounts expected to be paid during the school year to students admitted to the participating school.

Status:  3/2/21: (S) In Education. Committee Substitute voted Do Pass.    

SB 308 – Professional Licensing - Fresh Start.  Under current law, certain professional licensing authorities are exempt from a requirement in the Fresh Start Act of 2020 that authorizes individuals with a criminal record to petition the authority for a determination of eligibility for licensure despite the criminal record.  This act would remove such exemption for those certain entities.

Status:  3/1/21: (S) In Professional Registration. Committee Substitute voted Do Pass.   

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

LB 133 – Consumption Tax.  Would impose a tax on use or consumption of taxable property or services, and allow the State Tax Commissioner to designate persons to serve as tax collectors.  Tax collectors would be required to file a surety bond for faithful performance of their duties.  Also, any seller that has collected more than $100,000 of consumption taxes in the previous 12 months would be required to provide security in an amount equal to the greater of $100,000 or one and one-half times the seller's average monthly tax liability during the previous 6 calendar months.  Security may be in the form of a cash bond, surety bond from a surety company approved by the Tax Commissioner, CD, or a state or U.S. Treasury bond.  The bond would be a continuing instrument for each calendar year or portion thereof that the bond is in effect, and must remain in effect until the surety is released and discharged.

Status:  1/27/21: In Revenue Committee. Notice of hearing for 2/3.

LB 545 – Games of Skill.  Would require a person offering an opportunity for participants to engage in a game of skill who collects an entry fee from each participant, administers the game of skill, and awards prizes to segregate participant funds from operational funds or maintain a reserve that exceeds the amount of participant funds on deposit.  The reserve may be in the form of cash or cash equivalents, payment-processor reserves or receivables, an irrevocable letter of credit, a bond, or any combination thereof, in an amount that must exceed the total balances of the accounts of all participants.

Status:  1/25/21: In General Affairs Committee. Notice of hearing for 2/1.  

NEW LAW:  LB 649 – Digital Asset Depository Institutions.  Would require a digital asset depository institution (DADI) to furnish a surety bond to the director of Banking and Finance in an amount the director would deem sufficient to cover the costs of a liquidation or conservatorship.  In lieu of a bond, a DADI could irrevocably pledge specified capital equivalent to a bond.  The bond would name the State of Nebraska as obligee.  The director may promulgate and adopt rules and regulations regarding the surety bond.

Status:  5/25/21: Approved by the Governor; effective 7/1/22. 

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

COMMERCIAL SURETY

NEW LAW:  AB 45 – Bonds Required by DOI.  Would revise provisions relating to bonds filed by various persons regulated by the Commissioner of Insurance.  Existing law requires a bond to be filed under certain circumstances by various persons regulated by the Commissioner.  Section 3 of the bill sets forth requirements for, and procedures relating to, such bonds.  The section includes sample bond forms.

Status:  6/4/21: Approved by the Governor; Chapter 478; effective 10/1/21.

NEW LAW:  SB 29 – Salvage Titles.  Would require agents of the DMV who provide salvage titles to post a $50,000 bond or cash deposit with the state treasurer.

Status:  3/29/21: Approved by the Governor; Chapter 4; effective 10/1/21.    

NEW LAW:  SB 55 – Employee Leasing Companies.  Would transfer the duties for the licensing and certain regulation of employee leasing companies from the Administrator of the Division of Industrial Relations of the Department of Business and Industry to the Commissioner of Insurance.

Status:  6/3/21: Approved by the Governor; Chapter 322; effective 7/1/21. 

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

COMMERCIAL SURETY

NEW LAW:  HB 208 – Lightning Rod Dealers.  Would repeal the statute on lightning rod dealers and salesmen, which would eliminate the $5,000 bond requirement.

Status:  4/26/21: Signed by the Governor; Chapter 8; effective 1/1/22.   

HB 218 – Itinerant Vendors.  Would repeal the statute on itinerant vendors, which would eliminate the $5,000 bond requirement. 

Status:  5/27/21: (S) Rereferred to Executive Departments and Administration.

SB 22 – Charitable Gaming.  Would set a limit for the Lucky 7 deal size that the commission may authorize at 14,000 tickets. 

Status:  6/3/21: (H) From Ways and Means: Ought to pass with amendment.  

SB 27 – Charitable Gaming.  Would change the term of a charitable gaming license from 12 months from issue to annually expiring on December 31.  This would include games of chance and Lucky 7 tickets.

Status:  6/4/21: (H) From Ways and Means: Ought to pass with amendment.  

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

COMMERCIAL SURETY

AB 384 – Home Improvement Contractors.  Would, with respect to home improvement contractors, expand registration requirements, add a registration exemption, require certain disclosures, impose a bond requirement, and add various provisions affecting bond liability and cancellation.  It would enact registration and insurance requirements, and a bonding exemption, on certain low-value home improvement contractors.  Contractors not otherwise exempt under law who enter into a home improvement contract or contracts with any consumer in a registration period that obligates the consumer to pay, in the aggregate, an amount less than $500 in a registration period, or such other amount as the director may determine by regulation, shall be subject to registration requirements, but shall not be subject to bonding requirements.  Such contractors shall be required to maintain a minimum amount of commercial general liability insurance that shall be set by the director by regulation and may be less than $500,000 per occurrence.

Status:  1/14/20: (A) introduced and referred to Regulated Professions  

AB 606 – Adjoining Property Entry.  Would permit an owner attempting to make improvements or repairs to his property to enter an adjoining property without being deemed guilty of criminal trespass or incurring liability for civil trespass by satisfying certain prerequisites and posting a $1,000 bond with the chief law enforcement officer of the municipality in which the adjoining property is located to protect the adjoining owner from potential actual property damage caused by the entry.

Status:  1/14/20: (A) introduced and to Housing  

AB 993 – e-Cigarettes - Vapor Licenses and Taxes.  Would create two types of vapor business licenses: basic vapor licenses for entities seeking to sell electronic smoking devices and liquid nicotine containers, and plenary vapor business licenses for entities seeking to sell non-cartridge vaping liquid.  Existing provisions concerning tax bonds remain intact.

Status:  1/14/2020: (A) introduced and referred to Health  

AB 1150 – Home Restoration Contractors.  Would allow the Director of the Division of Consumer Affairs in the Department of Law and Public Safety to impose a bond requirement on home restoration contractors.  The director may require a home restoration contractor engaged in performing home restorations, in addition to the insurance required, to post a performance bond in favor of the owner, lessee, tenant, or other party to a home improvement contract for home restoration, in an amount as the director may establish by regulation.  Every required bond shall provide that the issuer of that bond shall give the director written notice of cancellation or non-renewal of the bond within 10 days of the cancellation or non-renewal.

Status:  1/14/20: (A) introduced and referred to Regulated Professions

AB 1393 – Occupational Licensing - Persons with Criminal History Records.  Would require professional and occupational boards in the Division of Consumer Affairs, when determining whether a person is disqualified from certification, registration or licensure because of a prior conviction of a crime, to consider whether the crime directly relates to the profession or occupation regulated by the board.  The bill also would supplement current law to provide that no person will be disqualified from obtaining or holding any certificate, registration or license issued by a board solely because of a prior conviction of a crime, unless the crime directly relates to the profession or occupation regulated by the board.

Status:  1/14/20: (A) introduced and referred to Regulated Professions 

AB 1418 – Used Motor Vehicle Dealers.  Would establish the Consumer Used Car Dealer Protection Fund which would be used to satisfy unpaid judgments of consumers of used motor vehicle dealers.  A used motor vehicle dealer who has not been subject to a claim against his dealer's bond or against the fund for three consecutive years would not be required to hold the $50,000 bond.  Such dealer may elect to maintain continuous bonding.  Before the chief administrator issues a used motor vehicle license, an applicant must file a $50,000 bond, which would be in addition to the bond required under C.56:8-77.  The bond would be conditioned that the applicant will not practice fraud or make any fraudulent representation in connection with the sale or lease of a used motor vehicle, or violate any provision of Chapter 10 of Title 39 in the conduct of the applicant's business.  A consumer shall have a claim against the bond, and may recover damages awarded by a court of competent jurisdiction if the consumer suffers certain damages.  The surety's liability would be limited to actual damages and shall not include punitive damages or attorney's fees assessed.  In cases in which a used motor vehicle dealer's surety is liable pursuant to this section, the surety shall be liable only for the first $50,000 in claims against the dealer.  Thereafter, the fund would be liable for the next $75,000 in those cases in which the fund itself may be liable.  There would be aggregate liability and a 30-day cancellation clause.

Status:  1/14/20: (A) introduced and referred to Transportation and Independent Authorities  

AB 2637 – Used Motor Vehicle Dealers.  Would enact the Used Motor Vehicle Dealer Licensing Act and establish the State Board of Used Motor Vehicle Dealers in the Division of Consumer Affairs in the Department of Law and Public Safety.

Status:  2/13/20: (A) introduced and referred to Consumer Affairs

AB 3242 – Developers - Completion of Common Elements of a Planned Community.  Would require a developer to post a bond with the Department of Community Affairs to secure the completion of the common elements of a planned community, and maintain adequate reserve accounts for maintenance and replacement of the common elements.

Status:  2/25/20: (A) introduced and referred to Housing   

AB 3456 – Private Career Schools.  Would require a private career school to obtain a performance bond payable to the Commissioner of Labor and Workforce Development in an amount to be determined by the Commissioner.  The proceeds of the bond would be used to pay approved refunds or to reimburse the Private Career School Student Tuition Protection Fund.  The Department would pay approved claims from the bond whenever possible.  If the bond is insufficient to pay all approved claims, the Department will direct the State Treasurer to issue a refund check.

Status:  2/25/20: (A) introduced and referred to Higher Education

Related Bill:  SB 1807  

AB 3734 – Fidelity Bond.  Would establish financial reporting, public notice and records requirements for certain nonprofit youth-serving athletic organizations, such as little leagues, Babe Ruth leagues, Pop Warner leagues, Police Athletic leagues and others.  Such organizations would be required to obtain insurance or a surety bond for the purpose of satisfying any claim against a signatory or any person authorized to handle the organizations's finances.

Status:  3/16/20: (A) introduced and referred to Women and Children Committee

AB 4327 – Motor Vehicle Dealers.  Would require the Motor Vehicle Commission to permit a licensed motor vehicle dealer to facilitate the issuance of a certificate of ownership and certificate of registration for a used motor vehicle that is purchased by private sale, provided the vehicle is to be registered in New Jersey and complies with all requirements for issuance of a certificate of ownership and certificate of registration. 

Status:  6/29/20: (A) introduced, referred to Transportation and Independent Authorities 

Identical Bill:  SB 2756 

AB 4395 – Private Education Lenders.  Would require registration of private education lenders, and include a provision that would prevent a creditor from collecting or attempting to collect a private education loan debt unless the creditor possesses "any payments, settlement, or financial remuneration of any kind paid to the creditor by a guarantor, co-signor, or surety, and the amount of payment received." 

Status:  3/8/21: (A) Reported out of Higher Education with amendments; referred to Appropriations. 

Related Bill:  SB 2358 

AB 4474 – Public Officials.  Would require the secretary of the board of directors for educational service agencies for procuring custodial and food services in schools to be bonded for faithful performance of duties in an amount determined by the board.

Status:  7/30/20: (A) introduced and referred to Education 

Related Bill:  SB 2705 

AB 4512 – Public Officials.  Would establish a body politic and corporate to be known as the Clean Energy Technology Center, which would promote and advance the State's public interests through partnerships with various state and local government boards and require any officers and employees of the Center having access to its cash or negotiable securities to give bond in such amounts and with such surety as the board may prescribe.

Status:  8/10/20: (A) introduced and referred to Telecommunications and Utilities

Related Bill:  SB 302

AB 5033 – Motor Vehicle Dealers.  Would authorize motor vehicle dealers to sell motor vehicles online and obtain electronic signatures for motor vehicle transactions.

Status:  5/6/21: (S) Reported from Transportation with amendments; 2nd reading.

Identical Bill:  SB 3279 

SB 302 – Public Officials.  Would establish a body politic and corporate to be known as the Clean Energy Technology Center, which would promote and advance the State's public interests through partnerships with various state and local government boards and require any officers and employees of the Center having access to its cash or negotiable securities to give bond in such amounts and with such surety as the board may prescribe.

Status:  1/14/20: (S) introduced and referred to Environment and Energy 

Related Bill:  AB 4512  

SB 731 – Parental Rights and Property Tax Reduction Act - Tuition.  Under the Act, a student enrolled in grades K-12 would be eligible to receive a public tuition allowance to enroll in a participating school.  To be eligible to participate in the program, the nonpublic school must demonstrate its financial accountability.  In the event that the nonpublic school receives $50,000 or more in public tuition allowance funds during the school year, the nonpublic school shall demonstrate its financial viability by: (1) filing with the department, prior to the beginning of the school year, a surety bond payable to the state in an amount equal to the aggregate amount of public tuition allowance funds expected to be paid during the school year to the parents or guardians of eligible students enrolled in the participating nonpublic school under the program; or (2) filing with the department, prior to the beginning of the school year, financial information that demonstrates the school has the ability to pay an aggregate amount equal to the amount of the public tuition allowance funds expected to be paid during the school year to the parents or guardians of eligible students enrolled in the participating nonpublic school under the program.

Status:  1/14/20: (S) introduced and referred to Education

SB 825 – Health Clubs.  Would prohibit health club services contracts from limiting the liability of the health club to a buyer for injuries caused by or resulting from the negligence of the owner or operator, or an agent or employee of the owner or operator, of the health club.  The bond requirement remains intact.

Status:  2/13/20: (S) reported from Commerce with amendments; 2nd reading

NEW LAW:  SB 942 – Occupational Licensing - Persons with Criminal History Records.  Would require professional and occupational boards in the Division of Consumer Affairs, when determining whether a person is disqualified from certification, registration or licensure because of a prior conviction of a crime, to consider whether the crime directly relates to the profession or occupation regulated by the board.  The bill also would supplement current law to provide that no person will be disqualified from obtaining or holding any certificate, registration or license issued by a board solely because of a prior conviction of a crime, unless the crime directly relates to the profession or occupation regulated by the board.

Status:  5/11/21: Approved P.L. 2021, c. 81; effective 90 days following enactment. 

SB 1005 – Alcoholic Beverages.  Would create a new taxable category of alcoholic beverages called flavored malt beverages distinct from beer and retain the existing provisions requiring licensees to post a tax bond.

Status:  1/30/20: (S) introduced and referred to Law and Public Safety 

SB 1165 – Money Transmitters.  Would add a provision to existing law that if a licensee has insufficient assets to make a purchaser or holder whole, the purchaser or holder will be entitled to reimbursement under the surety bond.

Status:  2/3/20: (S) introduced and referred to Commerce

NEW LAW: SB 1271 – Private Education Lenders.  Would require registration of private education lenders, and include a provision that would prevent a creditor from collecting or attempting to collect a private education loan debt unless the creditor possesses "any payments, settlement, or financial remuneration of any kind paid to the creditor by a guarantor, co-signor, or surety, and the amount of payment received." 

Status:  3/1/21: Approved P.L. 2021, c. 27; effective 9/1/21 ) 

SB 1544 – Home Improvement Contractors.  Would amend the Contractors' Registration Act to add a requirement that every registered contractor who is engaged in home improvement maintain a $50,000 bond or its equivalent, executed to the State for the use and benefit of any consumer who incurs damages or suffers any loss arising out of a violation of the Act by the contractor.  The bond would cover restitution and penalties.  Any aggrieved person may maintain an action against the contractor and/or the surety.  The director may make a claim against the bond on behalf of a consumer.  The aggregate liability of the surety to all persons for all breaches of the conditions of the bond shall not exceed the amount of the bond.

Status:  2/13/02: (S) introduced and referred to Commerce 

SB 1807 – Private Career Schools.  Would require a private career school to obtain a performance bond payable to the Commissioner of Labor and Workforce Development in an amount to be determined by the Commissioner.  The proceeds of the bond would be used to pay approved refunds or to reimburse the Private Career School Student Tuition Protection Fund.  The Department would pay approved claims from the bond whenever possible.  If the bond is insufficient to pay all approved claims, the Department will direct the State Treasurer to issue a refund check.

Status:  2/24/20: (S) introduced and referred to Higher Education

Related Bill:  AB 3456 

SB 2092 – Used Motor Vehicle Dealers.  Clarifies the requirements for an established place of business of a licensed used motor vehicle dealer, and establishes provisions for audits of dealers.

Status:  3/16/20: (S) introduced and referred to Commerce

SB 2358 – Private Education Lenders.  Would require registration of private education lenders, and include a provision that would prevent a creditor from collecting or attempting to collect a private education loan debt unless the creditor possesses "any payments, settlement, or financial remuneration of any kind paid to the creditor by a guarantor, co-signor, or surety, and the amount of payment received."

Status:  3/8/21: (A) Reported out of Higher Education with amendments; referred to Appropriations.   

Related Bill:  AB 4395  

SB 2615 – Packaged Ice Plant Operator and Packaged Ice Dealer.  Would create the Packaged Ice Plant Operator and Packaged Ice Dealer Licensing Act.  Violators of the act could be subject to civil fines between $5,000 and $25,000 and the potential imposition of a performance bond requirement.  The Department of Health would be authorized to compromise and settle any claim for a penalty... in an amount that is appropriate and equitable under the circumstances, including the posting of a performance bond by the violator. 

Status:  7/22/20: (S) reported from Commerce; 2nd reading; referred to Budget and Appropriations 

SB 2705 – Public Officials.  Would require the secretary of the board of directors for educational service agencies for procuring custodial and food services in schools to be bonded for faithful performance of duties in an amount determined by the board.

Status:  7/22/20: (S) introduced and referred to Education

SB 2756 – Motor Vehicle Dealers.  Would require the Motor Vehicle Commission to permit a licensed motor vehicle dealer to facilitate the issuance of a certificate of ownership and certificate of registration for a used motor vehicle that is purchased by private sale, provided the vehicle is to be registered in New Jersey and complies with all requirements for issuance of a certificate of ownership and certificate of registration. 

Status:  7/30/20: (S) introduced and referred to Transportation 

Identical Bill:  AB 4327 

SB 3279 – Motor Vehicle Dealers.  Would authorize motor vehicle dealers to sell motor vehicles online and obtain electronic signatures for motor vehicle transactions.

Status:  5/6/21: (S) Reported from Transportation with amendments; 2nd reading.

Identical Bill:  AB 5033

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

COMMERCIAL SURETY

NEW LAW:  SB 12 – Notaries Public.  Would repeal the existing notary law and enact the Revised Uniform Law on Notarial Acts (RULONA), which contains provisions for remote notarization and education.  The bond provisions would remain unchanged.

Status:  4/5/21: Signed by the Governor; Chapter 21; effective 1/1/22. 

NEW LAW:  SB 106 – Driver Education Schools.  Would increase the amount of the bond required for driver education schools from $5,000 to $15,000. 

Status:  4/5/21: Signed by the Governor; Chapter 41; effective 6/29/21.  

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

COMMERCIAL SURETY

AB 1270 – Consumer Litigation Funding Companies.  Would require companies entering into consumer litigation funding transactions to be registered and to post a bond satisfactory to the Department of State in an amount not to exceed $50,000.  The bond would be conditioned that the registrant will faithfully conform to and abide by the provisions of the article and all rules adopted by the administrator, and pay to any person(s) any and all moneys that may become due or owing to the State or such person.

Status:  1/8/21: (A) Introduced and referred to Consumer Affairs and Protection.

Related Bill:  SB 705 

AB 1508 – Reverse Coop Apartment Unit Loans.  Would amend existing law relating to authorizing reverse coop apartment unit loans for persons 62 years of age or older and provide for additional consumer protections, including requiring every authorized lender and assignee to post a surety bond in the amount of $100,000, for the benefit of claims against the lender or assignee for failure to perform their obligations to the borrower with the State Financial Services Superintendent.

Status:  5/4/21: (A) Reported referred to Ways and Means.

Related Bill:  SB 760  

AB 1932 – Automobile Brokers.  Would increase the amount of the bond required of automobile brokers from $100,000 to $250,000. 

Status:  6/3/21: (A) Amend and recommit to Consumer Affairs and Protection. Print number 1932B. Reference changed to Codes. 

AB 2307 – Appearance Enhancement Businesses - Nail Salons.  Would impose additional rules and requirements for the licensing of nail salons, including the addition of a training program.  The bond requirement is unchanged. 

Status:  1/14/21: (A) Introduced and referred to Economic Development.

AB 3041 – Debt Collection Agencies.  Would provide for the licensure of debt collection agencies and require them to have a surety bond, contract of indemnity, or an irrevocable letter of credit as security.  The bond amount would be tiered based on the number of employees, ranging from $25,000 for agencies with 1 to 4 employees to $75,000 for agencies with 20 or more employees. 

Status:  4/28/21: (A) Amend and recommit to Consumer Affairs and Protection. Print number 3041A.

AB 3315 – Consumer Litigation Funding Companies.  Would require companies entering into consumer litigation funding transactions to be registered and to post a bond satisfactory to the Department of State in an amount not to exceed $50,000. The bond would be conditioned that the registrant will faithfully conform to and abide by the provisions of the article and all rules adopted by the administrator, and pay to any person(s) any and all moneys that may become due or owing to the State or such person. 

Status:  1/22/21: (A) Introduced and referred to Consumer Affairs and Protection

AB 3380 – Towing Services.  Would increase the amount of the bond required of towing licensees from $5,000 to $25,000.  The maximum amount of a bond that the commissioner may require would increase from $25,000 to $250,000.  Existing law allows an applicant to, in lieu of a bond or cash equivalent, make contributions to a fund to satisfy the security requirement.  The bill would add language providing that any licensee who prior to the effective date of this paragraph was authorized by the commissioner to make a contribution to the fund and who has been found guilty of a violation of sections 19-169.1 and 20-515 of the code twice within a 12-month period shall be required to furnish a surety bond in an amount determined by the commissioner.

Status:  1/26/21: (A) Introduced and referred to Cities.

Related Bill:  SB 1610 

AB 3525 – Debt Settlement Services Providers.  Would amend the Banking Law by adding a new article XII-CC - Debt Settlement Companies.  As a condition for the issuance and retention of a license, applicants would have to file with the superintendent a surety bond (or other alternatives listed in the bill) in the amount of $250,000.  The superintendent may (i) require a larger bond if he or she determines, in his or her sole discretion, 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 (ii) 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 proceeds of the bond shall constitute a trust fund to be used exclusively: (i) to reimburse fees that have been improperly charged to or collected from debtors; (ii) to reimburse amounts that have not been properly distributed to creditors or properly returned to debtors; and (iii) to pay outstanding banking department examination costs and assessments. 

Status:  1/27/21: (A) Introduced and referred to Consumer Affairs and Protection.

AB 3994 – Insurance Adjusters.  Would eliminate the bond requirement for independent adjusters only. 

Status:  5/25/21: Passed Senate. Returned to Assembly. 

AB 4473 – Process Servers.  Would require each process server applicant who is applying for a license to obtain and continue in full force and effect a bond, contract of indemnity, or irrevocable letter of credit in an amount based on the number of employees, ranging from $10,000 for 1 to 4 individuals to $75,000 for 20 or more individuals.  The bond would be conditioned that the applicant will comply with the applicable laws 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.  The total liability of the surety for all breaches of the bond condition is limited to the bond amount, and is limited to the amount of the penalty or investigatory costs; aggregate liability; 30-day cancellation clause; direct third-party liability. 

Status:  2/4/21: (A) Introduced and referred to Economic Development.

AB 4606 – Occupational Licensing.  Would amend the definition of "natural hair styling" to eliminate the services of twisting, wrapping, weaving, extending, locking or braiding; would add definitions of "natural hair braiding" and "threading" and exempt them from the provisions of the article, including the bond or insurance requirement.

Status:  2/4/21: (A) Introduced and referred to Economic Development. 

SB 331 – 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:  1/6/21: (S) Introduced and referred to Elections.

SB 705 – Consumer Litigation Funding Companies.  Would require companies entering into consumer litigation funding transactions to be registered and to post a bond satisfactory to the Department of State in an amount not to exceed $50,000.  The bond would be conditioned that the registrant will faithfully conform to and abide by the provisions of the article and all rules adopted by the administrator, and pay to any person(s) any and all moneys that may become due or owing to the State or such person.

Status:  1/6/21: (S) Introduced and referred to Consumer Protection.

Related Bill:  AB 1270 

SB 760 – Reverse Coop Apartment Unit Loans.  Would amend existing law relating to authorizing reverse coop apartment unit loans for persons 62 years of age or older and provide for additional consumer protections, including requiring every authorized lender and assignee to post a surety bond in the amount of $100,000, for the benefit of claims against the lender or assignee for failure to perform their obligations to the borrower with the State Financial Services Superintendent.

Status:  6/8/21: Passed Senate; delivered to Assembly. Referred to Assembly Ways and Means.  

SB 1058 – Public Officials.  Would establish communication union districts and grant the board of each district the authority to require the officers of each district to be bonded for faithful performance of duties.

Status:   1/6/21: (S) Introduced and referred to Energy and Telecommunications

SB 1610 – Towing Services.  Would increase the amount of the bond required of towing licensees from $5,000 to $25,000.  The maximum amount of a bond that the commissioner may require would increase from $25,000 to $250,000.  Existing law allows an applicant to, in lieu of a bond or cash equivalent, make contributions to a fund to satisfy the security requirement.  The bill would add language providing that any licensee who prior to the effective date of this paragraph was authorized by the commissioner to make a contribution to the fund and who has been found guilty of a violation of sections 19-169.1 and 20-515 of the code twice within a 12-month period shall be required to furnish a surety bond in an amount determined by the commissioner.

Status:   2/8/21: (S) Advanced to third reading. 

Related Bill:  AB 3380 

SB 3121 – Debt Collection Agencies.  Would provide for the licensure of debt collection agencies and require them to have a surety bond, contract of indemnity, or an irrevocable letter of credit as security.  The bond amount would be tiered based on the number of employees, ranging from $25,000 for agencies with 1 to 4 employees to $75,000 for agencies with 20 or more employees. 

Status:   6/3/21: (S) Amended on third reading - 3121C. 

SB 4668 – Immigrant Assistance Services Providers.  Would provide for the regulation of the licensure and practice of immigration providers by the Department of State in order to protect immigrants from exploitation.  Would add a new section to section 460-l to Article 28-C providing that the Department shall issue licenses to immigration providers and, upon application, to issue renewal licenses every two years.  The secretary of state would enforce the law governing the filing and maintenance of surety bonds and the application for licensure and/or renewal.  Essentially, the bill would provide more specifics related to the application for license.  The bill also would add language stating that a person claiming to be aggrieved by any violation by a licensee may bring a civil action for injunctive relief, damages, or both.  The court shall grant a prevailing plaintiff reasonable attorney fees and costs; minimal recovery for the plaintiff shall be $5,000. 

Status:   2/8/21: (S) Introduced and referred to Consumer Protection.

SB 5735 – Consumer Litigation Funding Companies.  Would require companies entering into consumer litigation funding transactions to be registered and to post a bond satisfactory to the Department of State in an amount not to exceed $50,000.  The bond would be conditioned that the registrant will faithfully conform to and abide by the provisions of the article and all rules adopted by the administrator, and pay to any person(s) any and all moneys that may become due or owing to the State or such person. 

Status:   3/17/21: (S) Referred to Consumer Protection 

Related Bill:  AB 3315 

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

COMMERCIAL SURETY

NEW LAW:  HB 1026 – Grain Buyers, Brokers, Processors, and Warehousemen.  Would apply existing license requirements for public warehousemen to any grain processor, defined as an entity that purchases grain to process into end products that are of a substantially different makeup or nature than the original grain.  The agriculture commissioner shall require a bond in an amount based on the dollar value of the grain purchased; calculated using the value of the amount of grain intended to be purchased by a new licensee during the first year of operation, or the three-year rolling annual average of the value of grain purchased at the time of license renewal; and set at 15% of the value of the intended or actual purchase amount of grain, rounded to the nearest $10,000.

Status:  3/9/21: Signed by the Governor on 3/9. Filed with the Secretary of State. Effective 8/1/21 

NEW LAW:  SB 2189 – Electronic Smoking Devices.  Would add electronic smoking devices to the items sold by distributors and dealers.

Status:  4/16/21: Signed by the Governor; filed with Secretary of State; effective 8/1/21. 

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

COMMERCIAL SURETY

HB 65 – Bingo Supply Distributors and Manufacturers.  Would require an applicant for a bingo supply distributor license to file with the attorney general a bond in the sum of $50,000.  The bond must be maintained in effect as long as the license is valid; however, the liability of the surety shall not exceed an all-time aggregate liability of $50,000.  The bond, which may be in the form of a rider to a larger blanket liability bond, shall run to the state and to any person who may have a cause of action against the principal for any liability arising out of a violation of the law or any rules adopted.  Further, no distributor shall knowingly sell, offer to sell, or otherwise provide or offer to provide an electronic instant bingo system to any person for use in the state, or maintain, update, or repair an electronic instant bingo system, without first obtaining an electronic instant bingo distributor endorsement to the person's distributor license.  An applicant for a distributor license  may apply simultaneously for an electronic instant bingo distributor endorsement to that license, which would be valid for the period of the underlying distributor license.  The bill also includes a $50,000 bond requirement for bingo supply manufacturers and an endorsement for electronic instant bingo systems.

Status:  2/4/21: (H) Referred to Finance.

HB 88 – Roofing Contractors.  Would amend the definition of "specialty contractor" to include roofing contractors, and add a roofing section to the Ohio Construction Industry Licensing Board. 

Status:  2/10/21: (H) Referred to Commerce and Labor. 

SB 49 – Release of Lien Bond.  Would create payment assurance program for design professionals.  The bill provides that any person with an interest in commercial real estate on which a lien has been perfected, or named in the affidavit, may apply to the common pleas court of the county in which the commercial real estate is located to substitute financial security for the lien.  The security would have to be in an amount equal to the landscape architect's (or professional engineer's or professional surveyor's) claim, and in a form such as an escrow account or surety bond held by the clerk of courts or other party as determined adequate by the court.

Status:  5/11/21: (H) Referred to Commerce and Labor. 

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

COMMERCIAL SURETY

NEW LAW:  HB 1086 – Guardian and Ward.  Would add a new section of law that provides that if a ward is the owner of any real or personal property that is or may be deemed an available resource by the U.S. SSA or by the applicable Medicaid rules, the guardian may petition the court for permission to transfer or convey such property to a protective arrangement.  The guardian would file a verified petition setting forth what specific property is or may be deemed a resource by the federal or state authority, including an affirmative statement that such resource will or may affect the ward's receipt of public benefits unless such resource is transferred to a protective arrangement (defined in the bill).  If the petition is approved by the court, such transfer or conveyance shall not be considered a sale of the property.  If a bond was previously required by the court, the court may continue the bond to include assets transferred or conveyed to a protective arrangement, require a new bond in a lesser amount due to the transfer of some or all of the ward's resources or waive the requirement of a bond on the value of the transferred assets.  The primary purpose of this new section would be to authorize a guardian to pursue on behalf of the ward those same steps that any legally competent person could pursue to apply for or retain Medicaid or Social Security benefits.

Status:  4/19/21: Approved by the Governor; effective 11/1/21. 

NEW LAW:  HB 1149 – Used Motor Vehicle Dealer Salespersons.  Would add a subsection that provides that a certificate of registration would permit the registered person to engage in the activities of a used motor vehicle salesperson.  Further, the bill provides that a person may sell used motor vehicles without obtaining a separate used motor vehicle salesperson's certificate of registration if the person has a certificate of registration from the Oklahoma Motor Vehicle Commission to sell new or unused motor vehicles at a new motor vehicle dealer's licensed franchise location which also sells used vehicles; provided, such a person would only be authorized to sell used motor vehicles for the dealer at the new motor vehicle dealer's licensed franchise location and to represent the new motor vehicle dealer at used motor vehicle auctions.  Certificates of registration for salespersons renew biennially. 

Status:  5/10/21: Approved by the Governor; effective 11/1/21. 

NEW LAW:  HB 1153 – Manufactured Home Dealers.  Would amend the definition of "restricted manufactured home park dealer" to include any person who is engaged wholly or in part in the business of selling or leasing manufactured homes which are personal property with an option to purchase or own in any form at any time after the beginning of the lease term any new and unused, or used, or both new and used manufactured homes.  Would require that each manufactured home manufacturing facility selling directly to a licensed manufactured home dealer or restricted manufactured home park dealer to post a $30,000 bond. 

Status:  5/3/21: Approved by the Governor; effective 11/1/21. 

HB 1939 – Roofing Contractors.  Would require roofing subcontractors to post a $5,000 surety bond conditioned on compliance with the law, rules and regulations, and performance of work.  The bond would be continuous with a 30-day cancellation notice.

Status:  2/2/21: (H) Second reading; referred to Rules.

SB 221 – Scholarship Programs.  Would create the Wellness Scholarship Program to provide a scholarship to an eligible private school of choice for students who have health-related concerns.  Participating schools would have to demonstrate fiscal soundness by having been in operation for one school year or providing the State Department of Education with a written statement prepared by a CPA, confirming that the school is insured and the owner(s) has sufficient capital or credit to operate the school for the upcoming year by serving the number of students anticipated with expected revenues from tuition and other sources that may be reasonably expected.  In lieu of the statement, a surety bond or letter of credit for the amount equal to the scholarship funds for any quarter may be filed with the Department.

Status:  2/2/21: (S) Second reading; referred to Education, then to Appropriations.

SB 222 – Scholarship Programs.  Would create the Hope Scholarship Program to provide a scholarship to an eligible private school of choice for students who have experienced bullying incidents.  Participating schools would have to demonstrate fiscal soundness by having been in operation for one school year or providing the State Department of Education with a written statement prepared by a CPA, confirming that the school is insured and the owner(s) has sufficient capital or credit to operate the school for the upcoming year by serving the number of students anticipated with expected revenues from tuition and other sources that may be reasonably expected. In lieu of the statement, a surety bond or letter of credit for the amount equal to the scholarship funds for any quarter may be filed with the Department. 

Status:  5/11/21: Vetoed by the Governor.  

SB 314 – Construction Contracts - Residential.  Would require a contract for new construction of a residence to have a provision that upon the written request of the purchaser, the contractor shall meet in person with the purchaser within a reasonable time to discuss observable construction defects or change orders.  Failure of a contract to have an in-person meeting provision would require the contractor to meet with the purchaser not later than 72 hours after receiving notice.  Failure to comply would be deemed an intentional breach of contract by the contractor.  Observable construction defects would have to be remedied within 30 days after the meeting.

Status:  2/2/21: (S) Second reading; referred to Business, Commerce and Tourism.

SB 418 – Construction Contracts - Residential.  Notice of Opportunity to Repair Act; modifying consequence of inclusion of certain provisions in construction contracts. 

Status:  4/7/21: (H) From Judiciary-Civil: reported Do Pass, as amended. Title stricken. Enacting clause stricken. (All bills passed must contain an enacting clause.)  

SB 916 – Notaries Public - RONs and Services Providers.  Notarial acts; authorizing certification or attestation of documents through electronic means. 

Status:  2/2/21: (S) Second reading; referred to Judiciary.

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

COMMERCIAL SURETY

HB 2175 – Student Loan Servicers.  Would require a person applying for a license to engage in the business of servicing student loans to file a corporate surety bond or an irrevocable letter of credit, naming the State of Oregon as the obligee and in an amount that would be specified by rule.

Status:  1/19/21: (H) Referred to Business and Labor.

Related Bill:  SB 485 

HB 2311 – Motor Vehicle Repair Liens.  Would amend existing law affecting any person that creates, attaches, asserts or claims lien in connection with making, altering, repairing, transporting, storing, performing services, supplying materials or performing labor in connection with a motor vehicle by allowing an irrevocable letter of credit as an option to the existing $20,000 surety bond requirement.  The bill would add additional language to the bond requirement, specifying that the surety bond or irrevocable letter of credit must be executed to the State of Oregon, approved by the AG, and filed with the Motor Vehicles Department. 

Status:  6/7/21: (S) Signed by President of the Senate.  

HB 2637 – Litigation Funding.  Would require an applicant for a consumer litigation funding license to file a corporate surety bond or an irrevocable letter of credit in an amount, not less than $50,000, that the director specifies by rule.  The bond would run to the State and be designated exclusively to pay all obligations due to recipients who prevail in an action against the bond.  A licensee shall renew or replace the bond in the amount the director specifies if claims against the bond result in a withdrawal of or a reduction in the amount of the bond. 

Status:  1/19/21: (H) Referred to Business and Labor.

HB 3324 – Motor Vehicle Dealers.  Would establish the Oregon Vehicle Industry Board and transfer certain responsibilities currently under the purview of the Department of Transportation to the Board, one of which would be that the bonds would be filed with the Board.  This bill is intended to initiate discussions between the regulators and regulated regarding the potential for change in the way vehicle dealers are governed; essentially a study bill.  Any legislation to come out of the interim study wouldn't be introduced until the 2023 legislative session.  

Status:  4/22/21: (H) In Transportation, with subsequent referral to Ways and Means. Public hearing held.

SB 485 – Student Loan Servicers.  Would require a person applying for a license to engage in the business of servicing student loans to file a corporate surety bond or an irrevocable letter of credit, naming the State of Oregon as the obligee and in an amount that would be specified by rule. 

Status:  2/24/21: (S) Referred to Ways and Means by order of the President.  

Related Bill:  HB 2175 

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

COMMERCIAL SURETY

HB 378 – Occupational Licensing - Unlawful Employment Practices.  Would enact the Ex-Offender Increased Access to Employment Act, which would prohibit an employer or employment agency from inquiring about or into, or consider or require disclosure of, the criminal record or criminal history of an applicant until after a conditional offer of employment is made.  This requirement would not apply to positions where a standard fidelity bond or an equivalent is required and an applicant's conviction of one or more specified criminal offenses would disqualify the applicant from obtaining the bond, in which case an employer may include a question or otherwise inquire whether the applicant has ever been convicted of any of the specified criminal offenses.

Status:  2/3/21: (H) Introduced and referred to Labor and Industry.

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

COMMERCIAL SURETY

HB 5425 – Financial Technology Sandbox.  Would establish an economic growth blockchain act, regulate virtual and digital assets and establish depository banks for such purposes.  Would require a person authorized to enter into the financial technology sandbox to post a consumer protection bond with the commissioner or secretary as security for potential losses suffered by consumers.  The bond amount would be determined by the commissioner or secretary in an amount not less than $10,000, and shall be commensurate with the risk profile of the innovative financial product or service.  Unless the bond is enforced, the commissioner or secretary shall cancel or allow the bond to expire two years after the date of the conclusion of the sandbox period.  The bill also would require a special purpose depository institution to furnish a surety bond to the commissioner to cover costs likely to be incurred by the commissioner in a liquidation or conservatorship of the institution.  The amount of the bond would be determined by the commissioner in an amount sufficient to defray such costs.  In lieu of a bond, an institution may irrevocably pledge specified capital equivalent to a bond.  A special purpose depository institution also would have to maintain appropriate insurance or a bond covering the operational risks of the institution, which shall include coverage for directors' and officers' liability, errors and omissions liability, and information technology infrastructure and activities liability.

Status:  2/21/21: (H) In Corporations. Hearing postponed at request of sponsor. 

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

COMMERCIAL SURETY

HB 3055 – Public Officials.  Would eliminate the requirement for the board that governs the Department of Natural Resources to require certain designated officers, agents and employees to give bond for the faithful performance of their duties.

Status:  5/11/21: (H) Debate continued.

HB 3255 – Appraisal Management Companies.  Would amend the statute to reflect the $25,000 bond amount adopted by rule, and would eliminate the detailed statement of current financial condition option in lieu of a bond.  Claims may be filed by the claimant in accordance with the terms of the bond on a bond claim form approved by the board, provided claims are limited to actual damages and do not include attorney's fees or punitive damages, and all liability on a bond is applicable to the bond in effect as of the date of occurrence which gave rise to the liability. 

Status:  5/13/21: (S) Committee Report: Favorable from Labor, Commerce and Industry.  

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 626 – Guardians and Guardianships.  This bill relates to guardianships, management trusts, and certain other procedures and proceedings for persons who are incapacitated.  Provides that a guardian may make and file a declaration in lieu of an oath as part of the qualification process.  The bond requirement remains intact.

Status:  6/1/21: (S) Sent to the Governor. 

NEW LAW:  SB 1814 – Oversize and Overweight Vehicle Permits.  Would amend the bond requirement to remove Texas DOT as an obligee, which would make the $15,000 bond payable to the county.

Status:  6/7/21: Signed by the Governor; effective 9/1/21.  

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

COMMERCIAL SURETY

NEW LAW:  SB 36 – Taxes.  Would allow the State Tax Commissioner to waive the bond requirement for a person whose tax license was revoked for a delinquency, provided the person is in compliance with a payment agreement approved by the Commissioner.

Status:  2/25/21: Signed by the Governor; effective 4/27/21.  

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

COMMERCIAL SURETY

NEW LAW:  HB 2223 – Public Officials.  Eliminates language that directs certain officers and board members to procure individual surety bonds mandated by current law when such officers and board members are already covered under bonding provided by the Division of Risk Management.  The bill directs such officers and board members to be bonded pursuant to the blanket surety bond plan for state and local employees.

Status:  3/18/21: Approved by the Governor; Chapter 152; effective 7/1/21. 

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. 

WYOMING – WY Legislature | Session Dates:  1/12/21 – 2/26/21    

COMMERCIAL SURETY

NEW LAW:  SB 40 – Money Transmitters.  Would amend the Money Transfers Act by updating the bonding requirements.  The bill would allow the bond or other security to be provided with the license application or upon approval of the application, as determined by the applicant.  The bond shall be in the amount of $10,000 or two and one-half times the outstanding payment instruments, whichever is greater, not to exceed $500,000.  The Commissioner may increase the required amount of the bond up to the maximum upon the basis of the impaired financial condition of a licensee as evidenced by a reduction in net worth, financial losses or other relevant criteria.  The bond would run to the State for the benefit of any claimants, and would secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission and payment of money in connection with the sale and issuance of payment instruments or transmission of money.  Aggregate liability and direct third-party liability.

Status:  4/1/21: Signed by the Governor; Chapter 61; effective 7/1/21.   

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