NEWS
CNA Government Relations, with the help of surety industry and producer associations, takes an active role in surety and fidelity bond legislative issues at the federal, state and local level.
Use the drop-down menu below to review recent legislative developments specific to your state.
The mission of our Government Relations Department is to promote and defend our products and business practices at all levels of government.
CNA Government Relations works with lawmakers on legislation that improves the effectiveness of surety bonding and guards against adverse legislative developments. For example, every year 125,000 bills are introduced in state legislatures across the country. CNA's Government Relations Department has the responsibility of identifying those that affect the surety and fidelity industry. Our team of professionals reviews and analyzes legislation and directs lobbying efforts to ensure a positive outcome.
The Government Relations Department also works with local governments on Licence and Permit Bond issues. Many professions are required to post a bond at the local level. Government Relations works to ensure that local communities receive information and support to obtain the kind of public protection afforded by bonds.
Need more specific information? Please contact our Government Relations Department at 800-CNA-2000 (800-262-2000).
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.
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
AB 699 – Credit Services Organization. Would transfer the registration and regulation duties for credit services organizations from the Department of Justice (the attorney general) to the Department of Business Oversight. There is no change to the bond requirement.
Status: 7/14/20: (S) from Judiciary chair, with author's amendments: Amend and re-refer to committee. Read second time, amended and re-referred to Judiciary.
AB 1627 – Nonparticipating Tobacco Manufacturers. Would establish additional factors with regard to fee payments, reporting compliance, and sales practices for determining when a tobacco manufacturer poses an elevated risk and would be subject to a bond requirement under existing law to be listed on the State's directory of nonparticipating tobacco manufacturers.
Status: 6/23/20: (S) referred to Judiciary
AB 2185 – Licensing Reciprocity. Would expand cross-state licensing reciprocity if certain prerequisites are met, and applicants must comply with any surety bond or insurance requirements.
Status: 5/14/20: (A) amended; re-referred to Business and Professions
NEW LAW: SB 908 – Debt Collectors. Would create the Debt Collection Licensing Act to provide for the licensure, regulation and oversight of debt collectors by the Commissioner of Business Oversight. A licensee would be required to maintain a bond in a minimum amount of $25,000. The bond would be payable to the Commissioner and used for the recovery of expenses, fines and fees levied by the Commissioner and for losses or damages incurred by borrowers as a result of a licensee's noncompliance with the law.
Status: 9/25/20: approved by the Governor; Chapter 163; effective 1/1/21
SB 1382 – Immigration Consultants. Would replace the title "immigration consultant" with "immigration form assistant" in provisions of existing law which prohibit such an individual from literally translating, with the intent to mislead, certain titles like "notary" or "lawyer" from English to another language to imply that the individual is an attorney. The existing requirement of a $100,000 surety bond for such an individual would remain intact.
Status: 5/21/20: (S) in Judiciary; first hearing cancelled at the request of the author
SB 1399 – Garment Manufacturers or Contractors. Would prohibit the labor commissioner from permitting a person engaged in garment manufacturing or contracting from registering until the person has obtained a surety bond in an amount based upon the number of employees engaged in garment manufacturing, as specified, for the benefit of an employee damaged by their employer's failure to pay minimum wages, overtime pay, break premiums, liquidated damages, or other penalties. The bill also would require a brand guarantor to file a bond with the commissioner in order to do business in the state.
Status: 8/25/20: (A) read second time; ordered to third reading
NEW LAW: SB 1474 – Contractors. Would amend the existing law that allows contractors to deposit money or a cashier's check in lieu of posting a bond. The bill would prohibit the deposit from being released if the Board is notified of a civil action.
Status: 9/29/20: approved by the Governor; Chapter 312; effective 1/1/21
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 20-1213 – Commodity Handlers and Farm Products Dealers. Would combine the Commodity Handler Act and the Farm Products Act in one article, and would increase the maximum bond amount that farm products dealers must file from $200,000 to $1 million.
Status: 6/29/20: signed by the Governor; effective immediately
NEW LAW: HB 20-1218 – Hearing Aid Providers. Would combine the audiologist practice act with the hearing aid provider practice act, which would mean the statutes would be renumbered. The requirement for a hearing aid provider to post a surety bond, or an alternative as determined by the director, in the amount of $10,000 is retained. The director may file a claim on the bond or assist a consumer in filing a claim. The director, by rule, shall determine the requirements for the surety bond.
Status: 7/14/20: signed by the Governor; effective 9/1/2020
NEW LAW: HB 20-1374 – Waste Grease Program. Would repeal the waste grease program and its associated surety bond requirement.
Status: 6/29/20: signed by the Governor; effective 7/1/20
NEW LAW: SB 20-011 – Commercial Vehicle Verification Services Providers. Would authorize the chief of the Colorado State Patrol to create a program that allows a transportation association or organization to verify commercial vehicle information and VINs. Permit applicants would be required to furnish evidence of a savings account, certificate of deposit, or a surety bond of at least $10,000.
Status: 3/5/20: signed by the Governor; Chapter 7; effective immediately
NEW LAW: SB 20-096 – Remote Notarization. Authorizes a notary public to perform a notarial act on behalf of an individual who is not in the notary's physical presence, but only with respect to an electronic document.
Status: 6/26/20: signed by the Governor; effective 1/1/2021
NEW LAW: SB 20-140 – Powersports and Motor Vehicle Dealers and Salespersons. Would allow a person who suffers loss or damages resulting from fraud to bring a separate action against, and recover from the surety on the bond of, a licensee if: (a) the licensee has not reimbursed the person for the loss or damages; and (b) after either: (I) the board made a finding in a hearing of fraud by a licensee; or (II) a court entered judgment upon a claim of fraud by a licensee. This language applies to all powersports and motor vehicle dealers and salespersons bonds.
Status: 7/2/20: signed by the Governor; effective 90 days after final adjournment unless a referendum petition is filed
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
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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
B23-0359 – Electric Scooter Companies. Would require regulations to be adopted for electric scooter companies that would require operators of these companies to obtain a permit and post a performance bond. The regulations would have to set the required bond amount.
Status: 11/2/20: transmitted to Mayor for review; response due 11/17/20
B23-0394 – Condominiums. Would eliminate provisions that allow the bond or other security to be reduced on a pro rata basis following the conveyance of condominium units.
Status: 1/28/20: in Committee of the Whole. Public hearing held.
B23-0583 – Confiscated Animals. Would require the owner of a seized animal to post a bond in an amount sufficient to cover the reasonable costs to care, feed, and treat the animal for 30 days.
Status: 12/20/19: in Judiciary and Public Safety. Notice of Intent to Act published in the DC Register.
NEW LAW: B23-0807 – Appraisal Management Companies. Would require appraisal management companies to be registered and to post a surety bond in an amount of not more than $25,000.
Status: 8/7/20: Enacted, Act A23-0341; expires on 10/24/20
NEW LAW: B23-0808 – Appraisal Management Companies. Provides that upon registration, the Department may require an AMC to post a surety bond of not more than $25,000.
Status: 10/20/20: Enacted, L23-0140; expires 6/1/21
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates
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H.R.25 – Fair Tax Act of 2019 (Tax Bond). Would repeal the current income tax and other tax laws, abolish the Internal Revenue Service, and create a national sales tax. Persons who are "large sellers," which are those collecting $100,000 or more of the taxes in the previous 12 months, would have to post a bond or other security in an amount equal to $100,000 or 1.5 times the seller's average monthly tax liability during the previous 6 months, whichever is greater. The bond would secure the remittance of the owed taxes.
Status: 1/3/19: (H) introduced and referred to Ways and Means Committee
H.R.224 – Bond Threshold. Would eliminate the indexing requirements for the Miller Act bond threshold.
Status: 1/3/19: (H) introduced and referred to Oversight and Reform Committee
H.R.658 – National Infrastructure Development Bank Act of 2019 (Infrastructure). Would create a national infrastructure development bank to provide financial assistance for transportation, environmental, energy, and telecommunications infrastructure projects. The bill provides for the creation of an American Infrastructure Bond and the National Infrastructure Development Bank Trust Fund.
Status: 2/7/19: (H) referred to several subcommittees by Transportation and Infrastructure Committee
H.R.1120 – Marijuana Revenue and Regulation Act. Would require marijuana producers and export warehouse proprietors to obtain a permit and post a bond conditioned on compliance with the applicable laws and regulations. The Secretary would determine the amount of the bond. A new or additional bond may be required whenever the Secretary determines that it is necessary for the protection of the revenue generated from the taxes on marijuana that the bill would impose. The Secretary could reject or cancel bonds that are not sufficient to provide this protection. The bill also would subject marijuana products to customs bond requirements and procedures.
Status: 3/22/19: (H) referred to Crime, Terrorism, and Homeland Security Subcommittee by Judiciary Committee
Senate Companion: S.420
H.R.1595 – Marijuana - Secure and Fair Enforcement Banking Act of 2019. Would create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses.
Status: 9/26/19: (S) received in the Senate and read twice; referred to Banking, Housing, and Urban Affairs Committee
Senate Companion: S.1200
H.R.2260 – E-Bonding for Immigration Integrity Act of 2019. Would require aliens seeking admission to the U.S. as a nonimmigrant for certain visas, or if an alien has a visa overstay rate that is more than 1.5%, to post a bond. The bond amount would have to be for not less than $2,500 and not more than $10,000. The bond amount would be set by regulation by visa category and by the level of risk for a visa overstay for that category. The bond would be submitted electronically to the Department of Homeland Security. The bond would be returned if the alien complies with the terms of the visa or changes their immigrant status so that a bond would no longer be required. The bond would be forfeited to the E-Bond Enforcement Fund that the bill would create, if the alien overstays the visa or does not return to their country of origin if the visa is terminated.
Status: 5/15/19: (H) referred to Immigration and Citizenship Subcommittee by Judiciary Committee
H.R.4101 – Build Local, Hire Local Act (Bond Guarantee Program). Would increase the maximum contract amount for which the U.S. Small Business Administration issues a guarantee for a surety bond from $6.5 million to $10 million. Under current law, the SBA can offer guarantees on contracts up to $10 million if a federal agency's contracting officer certifies that the guarantee is necessary. The provision is contained within a broader workforce and infrastructure policy bill.
Status: 8/21/19: (H) referred to Transportation and Maritime Security Subcommittee by Homeland Security Committee
Senate Companion: S.2404
H.R.4485 – Public Building Partnership Program (P3). Would establish a P3 pilot program for public buildings. The administrator of the General Services Administration would have to select not less than 5 and not more than 10 projects for acquiring space for the purposes of public buildings. The administrator would have to submit a prospectus and a management plan for each of these projects to the House Transportation and Infrastructure Committee and the Senate Environment and Public Works Committee for review. The projects would be conducted according to the availability of appropriations. Each project would be subject to a study by the Government Accountability Office.
Status: 9/26/19: (H) referred to Economic Development, Public Buildings, and Emergency Management Subcommittee by Transportation and Infrastructure Committee
H.R.4916 – Farm Workforce Modernization Act of 2019 (Payment Bond; Prevailing Wage). Would amend the Immigration and Nationality Act to provide terms and conditions for nonimmigrant workers performing agricultural labor or services. An employer that is a farm labor contractor who seeks to employ H-2A workers would post or maintain a surety bond payable to the Secretary of Labor or pursuant to the resolution of a civil or criminal proceeding, for the payment of wages and benefits, including any assessment of interest, owed to an H-2A worker.
Status: 11/15/19: (H) referred to Immigration and Citizenship Subcommittee by Judiciary Committee
Related Bills: H.R.3620; H.R.503
H.R.5038 – Farm Workforce Modernization Act of 2019 (Prevailing Wage). Would amend the Immigration and Nationality Act to provide terms and conditions for nonimmigrant workers performing agricultural labor or services, and require affected employers to pay at least the highest of the agreed-upon collective bargaining wage; the adverse effect wage rate; the prevailing wage (hourly wage or piece rate); or the federal or state minimum wage.
Status: 12/12/19: (S) received in the Senate and read twice; referred to Judiciary Committee
Related Bills: H.R.1310; H.R.3620; H.R.4916; H.Res.758
H.R.5174 – State-Sponsored Visa Pilot Program Act of 2019. Would amend the Immigration and Naturalization Act to require a mandatory bond if certain conditions are met. Following a determination by the comptroller general or the inspector general of the Department of Homeland Security that more than 3% of the State-sponsored nonimmigrants violated the terms and conditions of State-sponsored nonimmigrant status in the most recently completed fiscal year, the State shall require each State-sponsored nonimmigrant in the state, as a condition of participation in the program, to post a bond equal to not less than $4,000. The bond would be raised by $1,000 during each fiscal year following a subsequent determination of violation.
Status: 12/19/19: (H) referred to Immigration and Citizenship Subcommittee by Judiciary Committee
S.420 – Marijuana Revenue and Regulation Act. Would require marijuana producers and export warehouse proprietors to obtain a permit and post a bond conditioned on compliance with the applicable laws and regulations. The Secretary would determine the amount of the bond. A new or additional bond may be required whenever the Secretary determines that it is necessary for the protection of the revenue generated from the taxes on marijuana that the bill would impose. The Secretary could reject or cancel bonds that are not sufficient to provide this protection. The bill also would subject marijuana products to customs bond requirements and procedures.
Status: 2/7/19: (S) read twice and referred to Finance Committee
House Companion: H.R.1120
S.1200 – Marijuana - Secure and Fair Enforcement Banking Act of 2019. Would create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses.
Status: 4/11/19: (S) read twice and referred to Banking, Housing, and Urban Affairs Committee
House Companion: H.R.1595
S.1535 – Reinventing Economic Partnerships and Infrastructure Redevelopment Act (Infrastructure; P3). Would establish the Infrastructure Financing Authority (IFA) to provide investments and financing of infrastructure projects. Projects eligible for funding would include transportation infrastructure, water infrastructure, and energy infrastructure. The IFA would provide direct loans and loan guarantees to facilitate eligible infrastructure projects that are economically viable, in the public interest, and of regional or national significance. The bill would set forth additional requirements for projects to receive funding through the IFA, including special qualifications for funding for P3s. The bill would outline the terms of receiving and repaying loans from the IFA, as well as the methods for funding the IFA.
Status: 5/16/19: (S) read twice and referred to Finance Committee
S.2302 – America's Transportation Infrastructure Act of 2019 (P3; Payment Bond; Performance Bond). The highway reauthorization bill. SFAA is seeking amendments for projects receiving funding through TIFIA to clarify that bonds should be required.
Status: 8/1/19: (S) placed on Senate Legislative Calendar under General Orders; Calendar No. 170
S.2404 – Build Local, Hire Local Act (Bond Guarantee Program). Would increase the maximum contract amount for which the U.S. Small Business Administration issues a guarantee for a surety bond from $6.5 million to $10 million. Under current law, the SBA can offer guarantees on contracts up to $1 0 million if a federal agency's contracting officer certifies that the guarantee is necessary. The provision is contained within a broader workforce and infrastructure policy bill.
Status: 7/31/19: (S) read twice and referred to Environment and Public Works Committee
House Companion: H.R.4101
S.2799 – Nexus of Energy and Water for Sustainability Act of 2019 (P3). Would require the Secretary of Energy and the Secretary of the Interior to establish a joint nexus of energy and water sustainability office that would be tasked with, among other things, identifying opportunities for domestic and international P3s.
Status: 12/17/19: (S) placed on Senate Legislative Calendar under General Orders; Calendar No. 362
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 731 – Health Care Clinics. Would eliminate the option for certain licensed mobile health care clinics to provide proof of financial ability to operate or alternatively provide a $500,000 surety bond.
Status: 6/30/20: approved by the Governor; effective 7/1/20
NEW LAW: HB 783 – Receivers. Would create the Uniform Commercial Real Estate Receivership Act, under which a court may appoint a receiver to protect receivership property. The court also may require or dispense with a bond, with or without surety, upon certain conditions with due regard for the public interest.
Status: 6/27/20: approved by the Governor; Chapter 106; effective 7/1/20
NEW LAW: HB 1193 – Occupational Licensing. Would repeal licensure requirements for talent agencies and boxing match timekeepers and announcers; would eliminate the requirement for yacht and ship brokers to license each branch office. The bond requirements would not be eliminated.
Status: 6/30/20: approved by the Governor; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 840 – Private Postsecondary Educational Institutions. Would amend existing law relating to private postsecondary educational institutions. The bill adds a provision that if a bond is in force at the time of an institutional closure, the surety shall be required to remit the full face value of the bond. Current law requires a bond in an amount based on gross tuition received during the previous year or on the estimated gross tuition for the current year, whichever is larger. The amounts range from $20,000 to $450,000 (another tier was added).
Status: 3/9/20: (H) from Higher Education: Favorably reported by substitute
NEW LAW: HB 865 – Estates. Would modify existing law governing wills, trusts, and the administration of estates. As amended, the provision would read: "The provisions of law governing the situation in which the surety on a guardian's or conservator's bond dies, becomes insolvent, removes beyond the limits of this state, from other cause becomes insufficient, or desires to be relieved as surety shall be applicable to sureties on personal representatives' bonds."
Status: 7/29/20: (H) signed by the Governor; Act 508; effective 1/1/21
HB 1229 – Tobacco Tax. Would add alternative nicotine and vapor products to the existing provisions concerning cigarettes and the like, which require a tax bond.
Status: 6/20/20: (H) second readers
SB 329 – Motor Vehicle Title Lenders. Would create the Motor Vehicle Title Loan Act which would authorize the Department of Banking and Finance to license and regulate motor vehicle title lenders. An applicant would be required to post a bond in the amount of $25,000 for the primary location plus $5,000 for each additional location. The bond would run to the State of Georgia for the benefit of the Department or any claimant or creditor against a licensee arising out of the licensee's business of making title loans, and be conditioned on compliance with the law and any rules, regulations or orders issued by the Department, and payment of any and all moneys that may become due and owing.
Status: 3/4/20: (S) read second time
SB 338 – Pet Dealers or Dealerships. Would amend existing license requirements to require pet dealers or animal shelters to post a surety bond of not less than $7,500 nor more than $500,000, based on the number of animals, level of risk, compliance history, and any other factor deemed relevant by the commissioner in establishing rules and regulations. "Surety" is defined as a letter of credit, certificate of deposit, bond, or other written instrument. The purpose of the bond would be to protect, ensure, and provide for the health and welfare of animals when: (A) the licensee is unable or unwilling to timely provide for the same; (B) the licensee has ceased operations by order of the commissioner; (C) the licensee has ceased operations voluntarily and there are pending or outstanding violations; (D) the animals have been impounded from the licensee's facility; or (E) the licensee is convicted of a criminal offense involving cruelty to animals or dog fighting. "Pet dealer" or "pet dealership" means any person who sells, offers to sell, exchanges or offers for adoption dogs, cats, birds, reptiles, or other animals customarily obtained as pets in the state. Fish would be newly excluded from all such license requirements. Surety would not be required for any animal shelter operated by the state, a county, a municipal corporation, or any other political subdivision of the state.
Status: 3/13/20: (H) in Agriculture and Consumer Affairs; second readers
NEW LAW: SB 462 – Installment Loan Lenders. Would require a license and bond for any person other than certain financial institutions, pawn brokers or universities to engage in the business of making installment loans. The bond shall: (1) be in a form satisfactory to the department; (2) be in the aggregate amount of $25,000 for the primary location to be operated by a licensee plus $5,000 for each additional location to be operated by such licensee, provided that no licensee shall be required to have a bond that exceeds a total amount of $100,000; (3) run to the State of Georgia for the benefit of the department or any claimant against a licensee arising out of the licensee's business of making installment loans; (4) require a licensee to pay any and all money for the benefit of any person damaged by noncompliance of the licensee with this chapter, with rules, regulations, or orders issued by the department pursuant to this chapter, or with any condition of the bond; and (5) require a licensee to pay any and all money that may become due and owing to any creditor of or claimant against the licensee arising out of the licensee's business of making installment loans.
Status: 6/30/20: signed by the Governor; Act 409; effective 7/1/2020
NEW LAW: SB 144-2020 – Electronic Signatures (COVID-19 Emergency Executive Order). Authorizes electronic signatures on construction and commercial surety bonds.
Status: Ordered and effective 6/11/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SB 2275 – Notaries Public. Would update the laws regarding notaries public to conform to the Revised Uniform Law on Notarial Acts (2018), the Hawaii Uniform Electronic Transactions Act, other state notary laws, and current notary practices. (Would take effect on 7/1/2021.) The bill would allow a bond to be renewed with a continuation certificate.
Status: 9/15/20: signed by the Governor; Act 054; Gov. Msg. No. 1159; effective 7/1/21
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 343 – Bonded Wine Warehouses. Would require licensing to store and handle wine as a bonded wine warehouse. A licensed applicant must hold a federal permit and may be required to post a continuing wine tax bond of such an amount and in such a form as may be required prior to the issuance of a bonded wine warehouse license.
Status: 2/11/20: signed by the Governor. Chapter 10; effective 7/1/20
NEW LAW: SB 1299 – Manufactured Home Resale Brokers. Would amend existing law to remove the licensing requirement for resale brokers of manufactured homes, along with the $30,000 performance bond.
Status: 3/15/20: signed by the Governor. Chapter 129; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 1049 – Continuing Care Contracts. Would amend law governing continuing care contracts under Indiana franchise law to specify that if such a provider posts a letter of credit, negotiable securities, or a bond as an alternative to establishing an escrow account for the deposit of entrance fees, the amount posted must be at least equal to the maximum amount of entrance fees reasonably anticipated by the provider or otherwise be subject to the escrow requirements.
Status: 3/21/20: signed by the Governor; effective 7/1/20
NEW LAW: HB 1353 – Mortgage Lending. Would amend multiple provisions of the First Lien Mortgage Lending Act to allow discretionary shortening or termination of surety bonds protecting individuals who receive certain financial services. The amendment would permit the director, upon written request from a creditor, lender, CPAP provider or certain other individuals, discretion to waive or shorten the two-year period or, in some case five-year period, during which a required surety bond must remain in effect following (i) surrender or termination of the creditor, lender or provider license, or (ii) cessation of a license-exempt individual's association with a licensed loan originator or offer of financial services in the state, as applicable. The language permitting waiver or shortening of the bond term would be added to several provisions throughout the existing statute, thereby affecting a multitude of existing bond obligations applicable to a variety of service providers for varying lengths of time.
Status: 3/18/20: signed by the Governor; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SF 2250 – Timber Buyers. Increases the minimum and maximum bond amounts for timber buyers to $25,000/$50,000. Under current law, the minimum is $3,000 and the maximum is $15,000.
Status: 3/12/20: signed by the Governor; effective 7/1/20
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
NEW LAW: HB 357 – Fantasy Sports. Would authorize and license fantasy sports contest operators and would require certain reserve funds backed by financial assurance as follows: "Reserve funds may take the form of cash, cash equivalents, payment process reserves, payment processor receivables, an irrevocable letter of credit, a bond, or a combination thereof, in the amount that must exceed the total balances of the fantasy sports contest players' accounts."
Status: 6/9/20: signed by the Governor; Act No. 141; effective 6/9/20
NEW LAW: HB 701 – Virtual Currency Businesses. Would require applicants for a virtual currency license to deposit with the department funds or investment property, a letter of credit, a surety bond, or other security that secures the applicant's faithful performance of its duties pursuant to the provisions of the chapter, and is in an amount the department specifies based on the nature and extent of risks in the applicant's virtual currency business model. The department shall not require a surety bond unless a surety bond is generally available in the state at a commercially reasonable cost Only the department may recover against the surety, and retain the recovery for no longer than five years and may process claims and distribute recoveries to claimants in accordance with rules adopted by the department.
Status: 6/13/20: signed by the Governor; Act No. 341; effective 8/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HP 1405 (LD 1961) – Fidelity Bond. Would create a trust fund for the purpose of receiving all settlement funds and other funds, and redistributing those funds to state agencies or designated agents of Maine, to fund tobacco use prevention and control. All officers, directors, employees and other agents of the trust entrusted with the custody of funds of the trust or authorized to disburse the funds must be bonded either by a blanket bond or by individual bonds with a minimum of $100,000 coverage for each person, or equivalent fiduciary liability insurance, conditioned upon the faithful performance of their duties.
Status: 11/16/20: Died upon adjournment
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SB 446 – Postsecondary Educational Institutions. Would add provisions to existing law requiring certain postsecondary educational institutions to refund all tuition and fees to certain students in the event of a "disorderly closure".
Status: 5/8/20: Enacted; Chapter 554; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 924 – Money Transmitters. Would revise the law for money transmitters handling foreign deposits to require a bond or other security from all money transmitters for $50,000 plus $10,000 per location. The bond would be capped at not more than $450,000. Under current law, the bond amount is based on the money transmitters volume of business to transmit money to foreign countries and it cannot be less than $50,000. The surety's aggregate liability could not exceed the principal sum of the bond. The bill would add a five-year tail to the bond requirement.
Status: 3/2/20: From Joint Committee on Financial Services: Ought to pass. Referred to House Ways and Means.
HB 937 – Life Insurance Settlement Providers. Would require life insurance settlement providers entering into a life settlement contract in connection with a Medicaid long-term benefits program to post security in the form of a surety bond, policy of errors and omissions insurance, deposit, securities, or any combination thereof in the amount of $500,000.
Status: 11/5/19: in Joint Committee on Financial Services; hearing held; eligible for executive session
HB 1073 – Debt Management Services Providers. Would require debt management services providers to be licensed and post a surety bond in an amount that the Commissioner of Banks will determine.
Status: 6/18/20: (H) reporting date extended to 12/29/20, pending concurrence
HB 2396 – Tourism Marketing. Would require the management entity for a tourism marketing district to post a surety bond conditioned on the faithful performance of its duties. Such entities receive the funds for the district and implement the district's purpose.
Status: 12/30/19: from Joint Committee on Tourism, Arts and Cultural Development: Ought to pass. Referred to Ways and Means.
Related Bill: SB 232
HB 4887 – Student Loan Servicers. Would add Chapter 93L - Student Loan Servicers to the General Laws. An applicant for a student loan servicer license would be required to post a surety bond in an amount and form determined by the Commissioner of Banks. The Commissioner would promulgate rules to enact this chapter, which hopefully would contain more information about the bond requirement.
Status: 7/30/20: Conference Committee to be appointed
SB 164 – Student Tuition Recovery Fund. Would establish a student tuition recovery fund for students from for-profit schools if they collect prepaid tuition to pay claims in the event that the school ceases operations. The recovery fund would be in addition to the license bond required for these schools. The bill provides that Ii funds become available from the surety bond or other security, any unencumbered funds from that bond or other security would have to be used to reimburse the fund for payments previously made to persons injured by the school's ceasing operations.
Status: 2/13/20: From Joint Committee on Consumer Protection and Professional Licensure: Accompanied Study Order SB 2534. 2/18/20: (S) SB 2534 was discharged to Senate Rules
SB 2595 – Student Loan Servicers. Would add Chapter 93L - Student Loan Servicers to the General Laws. An applicant for a student loan servicer license would be required to post a surety bond in an amount and form determined by the Commissioner of Banks. The Commissioner would promulgate rules to enact this chapter, which hopefully would contain more information about the bond requirement.
Status: 3/12/20: (S) reported from Ways and Means, recommended new draft for SB 160.
SB 2842 – Student Loan Servicers. Section 22 includes the provisions mentioned in SB 2595.
Status: 7/29/20: (S) several amendments were considered and either rejected or adopted. Reprinted as amended, see HB 4887.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 5445 – Vehicle Charging Stations. Would create the Electric Vehicle Charging Services Registration Act, and require registration and other obligations of a non-private assembly "designed specifically to charge batteries within an electric vehicle." The Department of Agriculture and Rural Development would require an applicant for registration to post a bond or provide a letter of credit or other financial guarantee in a reasonable amount established by the Department of not less than $40,000, if the Department finds after an investigation and review that the requirement of a bond would be in the public interest.
Status: 2/19/20: (H) referred to Ways and Means, with substitute (H-2)
HB 5454 – License and Permit Bonds - State Natural Resources and Environmental Protection Act. Would amend the Act to require a bond for any permit or license issued under Article II or under Chapter 1 or 3 of Article III that is not expressly exempt from a bond requirement. "Bond" means a performance bond from a surety company, a certificate of deposit, a cash bond, or an irrevocable letter of credit in favor of the department in an amount determined to be sufficient for the purposes for which the bond may be used. The department could utilize the bond for the costs of any of the following incurred in response to activities regulated by the department under the permit: (a) cleanup; (b) remediation; or (c) bringing a site into compliance with the requirements of the law under which the permit was issued.
Status: 2/4/20: (H) introduced and referred to Natural Resources and Outdoor Recreation
HB 5908 – Elevator Contractors. Would add a new article to the Skilled Trades Regulation Act relating to the licensing of elevator contractors.
Status: 6/24/20: (H) introduced, read first time and referred to Regulatory Reform
HB 5968 – Fireworks Displays. Would repeal the Fireworks Safety Act and require that a permit bond or insurance be furnished in an amount, character and form considered necessary by the local governing authority for any damages that may arise from the fireworks display.
Status: 7/22/20: (H) introduced, read first time and referred to Regulatory Reform
HB 6105 – Medicaid - DMEPOS. Would, as part of the application for authorization and subsequent renewals, require evidence of a surety bond, secured trust fund, or other suitable secured instrument or mechanism that is approved by the department and that ensures proper patient mammography record and film handling and transfer in the event of facility closure. The facility shall attest that the method of coverage chosen will completely cover all costs involved and will be adjusted as needed.
Status: 8/17/20: (H) introduced, read first time and referred to Health Policy
HB 6230 – Ignition Interlock Devices. Would require a bond or letter of credit to be provided for a manufacturer of vehicle ignition locking devices to be placed on the DMV's approved manufacturer list.
Status: 9/16/20: (H) introduced, read first time and referred to Transportation
NEW LAW: SB 434 – Cosmetology. Would allow and require licensure for "mobile salons," including a requirement for a $10,000 bond.
Status: 1/27/20: approved by the Governor; Public Act No. 20; immediate effect
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SF 3258 – Guardianships and Conservatorships. Would modify and modernize certain provisions governing guardianship and conservatorship.
Status: 5/27/20: signed by the Governor; Chapter 110; effective 8/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 865 – Sales Tax. Would amend existing law to allow the Commissioner of Revenue to deny an application for a sales tax permit or revoke a sales tax permit if the applicant or taxpayer is an entity and any partner, member, principal officer or director of such entity has failed to satisfy all of the finally determined tax liabilities owed. In lieu of denying or revoking an entity's permit, the Commissioner may accept an increased or additional bond from the entity to cover the additional risk involved.
Status: 7/7/20: approved by the Governor; effective 7/1/20
NEW LAW: HB 866 – Fuel Tax. Would remove the maximum bond limit for distributors of gasoline, special fuel, lubricating oil and compressed gas, and all references to class A and class B lubricating oil distributors.
Status: 6/22/20: approved by the Governor; effective 7/1/20
NEW LAW: HB 917 – Alcoholic Beverages - Light Spirit Products. Would legalize the manufacture and sale of light spirit products with an alcoholic content of not more than 4% by weight to be regulated in the same manner as beer and light wine. Before any person could engage in manufacturing, wholesaling or distributing light spirit products, he would be required to file a bond payable to the State of Mississippi, in a sum of not less than $5,000 nor more than $200,000, as determined by the Department of Revenue. The bond of a wholesaler, distributor or brew pub would not exceed the amount of excise tax estimated to be owed for any 60-day period. If a manufacturer is distributing light spirit products for sale, the manufacturer, in addition to any other required bond, would post a bond not to exceed the amount of excise tax estimated to be owed for any 60-day period.
Status: 6/18/20: approved by the Governor; effective upon passage
NEW LAW: HB 1104 – Occupational Licensing. Would authorize an occupational licensing review commission to "review the substance of any existing occupational regulation that was promulgated on or after July 1, 2012, by any occupational licensing board and determine whether such occupational regulations comply with state policy."
Status: 6/29/20: approved by the Governor; effective 7/1/20
NEW LAW: HB 1156 – Notaries Public.
Status: 6/25/20: Enacted; effective 7/1/21
NEW LAW: HB 2307 – Barber Schools. Reenacts existing law requiring barber schools to maintain a $25,000 bond.
Status: 6/29/20: Enacted; effective 7/1/20
NEW LAW: SB 2427 – Mortgage Loan Originators. Would reenact the existing State S.A.F.E. Mortgage Act, including various existing provisions requiring surety bonds of mortgage loan originators.
Status: 6/11/20: approved by the Governor; effective 7/1/20
NEW LAW: SB 2725 – Hemp Processors. Would create the Mississippi Hemp Cultivation Act to govern hemp processors, requiring them to post a bond or other financial assurance (CD or irrevocable letter of credit). Rules and regulations required for certificates of deposit and irrevocable letters of credit shall be promulgated by the commissioner.
Status: 6/29/20: approved by the Governor; effective upon passage
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1307 – Occupational Regulation Reform. Would eliminate professional licenses, certificates, registrations or other such authorizations from suspension for nonpayment of child support.
Status: 5/15/20: (H) referred to Children and Families
NEW LAW: HB 1511 – Occupational Regulation Reform. Would allow professional license reciprocity for nonresident military spouses without waiving any requirement for such applicant to pay any fees, post any bonds or surety bonds, or submit proof of insurance associated with the license being sought by the applicant.
Status: 4/21/20: signed by the Governor; effective 8/28/20
NEW LAW: HB 1963 – Motor Vehicle Dealers. Requires applicants applying to operate as a registered fleet owner to post a $100,000 surety bond. The bond shall be conditioned upon the registered fleet owner complying with the statutes, and be an indemnity for any loss sustained by reason of the acts of the person bonded when such acts constitute grounds for the suspension or revocation of the license. The bill also provides that a motor vehicle dealer authorized to enter and have outstanding certain written agreements in connection with a certificate of ownership must provide to the Director of Revenue a bond in an amount not less than $100,000 in a form that complies with section 301.560 and in lieu of the $50,000 bond otherwise required for licensure as a motor vehicle dealer. Further, the bill states that the proceeds of a bond shall be paid upon receipt by the Department of a final judgment from a Missouri court of competent jurisdiction. The proceeds of the bond shall be paid at the order of the Department and in the amount determined by the Department to any buyer or interested lienholder up to the greater of the amount required for the release of the purchase money lien or the sales price paid by the buyer where a dealer has failed to fulfill its obligations under an agreement to assign and deliver title to the buyer within 30 days.
Status: 7/14/20: signed by the Governor; effective 8/28/20
NEW LAW: HB 2046 – Occupational Regulations. Would amend provisions allowing professional license reciprocity to require at least one year of licensure in another jurisdiction. The amendments would not affect the existing requirement for an applicant to pay any fees, post any bonds or surety bonds, or submit proof of insurance associated with the license being sought.
Status: 7/6/20: signed by the Governor; delivered to Secretary of State; effective 8/28/2020
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 857 – Occupational Regulation Reform. Would require each state agency to review its promulgated rules and regulations 10 years after their adoption, report on the statutory authorization for them, and assess whether they are accomplishing the statutory purposes.
Status: 8/13/20: indefinitely postponed
LB 908 – Mortgage Licensing. Would amend the Delayed Deposit Services Licensing Act to add NMLS licensing and registration provisions for mortgage loan originators, mortgage bankers, installment loan companies, and other state-regulated financial services entities and industries. On and after January 1, 2021, licensees under the Act would be required to be licensed or registered through NMLS. The application is to include a surety bond in the base amount of $50,000 which, on or after January 1, 2021, shall be increased by $50,000 for each branch office established.
Status: 8/13/20: indefinitely postponed
NEW LAW: LB 909 – Delayed Deposit Services Providers. Would revise the bond requirement for delayed deposit services providers so that effective January 1, 2021, the bond amount shall be increased by $50,000 for each branch office. Current law requires a single $50,000 bond. This bill also provides that effective January 1, 2021, providers will be required to be licensed through NMLS.
Status: 7/27/20: approved by the Governor; effective 3 calendar months after adjournment
LB 1187 – Occupational Licensing. Provides for interstate reciprocity among many occupational licenses.
Status: 8/13/20: indefinitely postponed
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
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 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:
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 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: 7/16/20: (A) introduced, referred to Higher Education
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
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
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
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: 2/13/20: (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: 2/13/02: (S) introduced and referred to Commerce
Related Bill: AB 4395
SB 2588 – Postsecondary Educational Institutions. Would require private career schools and institutions of postsecondary education to furnish a performance bond or irrevocable letter of credit in an amount equal to the school gross tuition and fees for the prior academic year.
Status: 8/25/20: (S) combined with SB 1271 and 2660 (SCS)
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
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
AB 6655 – Automobile Brokers. Would revise the existing law for automobile brokers to specify that brokers for new vehicles would be subject to the law, including the licensing and bonding requirements. Current law requires a $100,000 bond conditioned on the payment of all valid bank drafts, including checks, drawn for the purchase of motor vehicles and safekeeping of all customer deposits related to the sale of a motor vehicle between the time of receipt and the transfer of a good title to the customer.
Status: 2/24/20: (A) amend and recommit to Consumer Affairs and Protection; Print Number 6655E
Related Bill: SB 4364
AB 7191 – Debt Collection Agencies. Would require debt collection agencies to be licensed and post a surety bond or other security. The bond amount would be based on the number of persons the licensee employs in an amount ranging from $10,000 to $75,000. The bond would secure the licensee's compliance with the applicable law and the payment of all costs and penalties.
Status: 7/24/20: (A) amend and recommit to Consumer Affairs and Protection
AB 9095 – Mortgage Lenders. Would authorize and govern certain reverse mortgages termed "reverse cooperative apartment unit loans" made to persons 62 years of age or older. Every authorized lender and assignee must obtain a surety bond in the amount of $100,000 for coverage of claims against the lender/assignee for failure to perform their obligations to the borrower.
Status: 1/17/20: (A) introduced and referred to Banks
Related Bill: SB 7580
AB 10633 – Licensing. Would provide all New Yorkers with access to professional, occupational, commercial, or business licenses, permits, certificates, or related registrations regardless of an applicant's citizenship or immigration status, or lack thereof. The existing bond requirement of license business operators remains intact.
Status: 6/10/20: (A) introduced and referred to Governmental Operations
Related Bill: SB 8481
SB 3231 – Massage Therapy Businesses. Would require massage therapy businesses to be licensed and provide evidence of obtaining a bond or liability insurance. The bill does not specify any further bonding requirements.
Status: 1/8/20: (S) referred to Consumer Protection
SB 4364 – Automobile Brokers. Would revise the existing law for automobile brokers to specify that brokers for new vehicles would be subject to the law, including the licensing and bonding requirements. Current law requires a $100,000 bond conditioned on the payment of all valid bank drafts, including checks, drawn for the purchase of motor vehicles and safekeeping of all customer deposits related to the sale of a motor vehicle between the time of receipt and the transfer of a good title to the customer.
Status: 1/8/20: (S) referred to Transportation
Related Bill: AB 6655
SB 6728 – Third-Party Payroll Service Providers. Would direct the Superintendent of Financial Services and the Commissioner of Taxation and Finance to review the adequacy of employee protections and small business employer protections in the payroll services industry. The bill sets forth the minimum required components of this review, which would have to include examining whether to require payroll service providers to post bonds, obtain insurance, or utilize other risk management tools to address any cases in which payroll monies owed to employees on behalf of businesses are stolen, misappropriated, or otherwise become unavailable after being transmitted from an employer to a payroll service provider or an affiliated entity. The review also would have to address the feasibility and advisability of the Department of Financial Services having regulatory oversight over third-party payroll service providers.
Status: 1/28/20: (A) received in Assembly; referred to Insurance
SB 6734 – 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: 1/8/20: (S) referred to Elections
Related Bill: AB 8449
NEW LAW: SB 6947 – Trampoline Parks. Would amend existing law to remove requirements that trampoline parks obtain a business permit along with the associated requirements for submitting an application, passing inspections and satisfying requirements for liability insurance or a surety bond.
Status: 4/17/20: signed by the Governor; Chapter 49; effective
SB 7018 – Towing Companies. Would increase the bond required as a condition of the issuance of a license to engage in towing from $5,000 to $25,000. Discretionary increases would also have a new threshold, with a maximum of $250,000.
Status: 1/8/20: (S) introduced and referred to Cities
NEW LAW: SB 7506 – Transportation Management Brokers. As amended, the bill allows the Commissioner of Health to contract with a transportation provider for Medicaid patient services and to set the amount of the required bond. The transportation management broker selected through a competitive bidding process will enter into a contract with the Commissioner and file a bond in an amount and form to be determined by the Commissioner. The purpose of the bond is to provide the sole source of recourse to providers of Medicaid transportation services, other than the broker, that cannot receive payment for services properly provided if the broker becomes insolvent. To the extent permitted by law, the surety bond shall provide that any funds that remain after such provider liabilities are satisfied shall be paid to that state.
Status: 4/3/20: signed by the Governor; Chapter 56; see bill for effective dates
NEW LAW: SB 7508 – Telemarketers, Debt Collectors, and Wireless Facilities. This is a budget bill that would impose or allow several new bond requirements on telemarketers, debt collectors and wireless facilities. The bill also would impose a prevailing wage requirement on projects exceeding $5,000,000 which have 30% or more in public funding. The bonds for telemarketers and debt collectors would have to be in the amount of $25,000.
Status: 4/3/20: signed by the Governor; Chapter 58
Related Bill: AB 9508
SB 7580 – Mortgage Lenders. Would authorize and govern certain reverse mortgages termed "reverse cooperative apartment unit loans" made to persons 62 years of age or older. Every authorized lender and assignee must obtain a surety bond in the amount of $100,000 for coverage of claims against the lender/assignee for failure to perform their obligations to the borrower.
Status: 1/28/20: (S) introduced and referred to Banks
Related Bill: AB 9095
SB 8431 – Rental Security. Would give tenants an option to pay using rental security insurance any deposit or advance required to rent or use residential real property or a dwelling unit. Rental security insurance is defined as a surety bond or insurance policy that guarantees or indemnifies a tenant after default of a financial obligation under the rental agreement, that satisfies the following criteria: (i) the insurance provider is an approved carrier licensed by the DFS; (ii) the coverage is effective upon the payment of the first premium or fee and remains in effect for the entire lease term; and (iii) the coverage provided per claim is no less than the amount a landlord requires for security deposits.
Status: 6/26/20: (S) amend and recommit to Judiciary
SB 8481 – Licensing. Would provide all New Yorkers with access to professional, occupational, commercial, or business licenses, permits, certificates, or related registrations regardless of an applicant's citizenship or immigration status, or lack thereof. The existing bond requirement of license business operators remains intact.
Status: 6/4/20: (S) introduced and referred to Rules
Related Bill: AB 10633
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 966 – Fidelity. Would allow the State Board of Community Colleges and the board of trustees for any community college to obtain an insurance policy in lieu of the bond required under existing law for state employees and the employees of a community college that handle funds or property.
Status: 1/21/20: First session adjourned, carried over to second session; Vetoed by the Governor. Veto overridden on 9/11/19 by vote of 55-15.
NEW LAW: SB 315 – Hemp Handlers. Would require hemp handlers to be licensed and post a bond for at least $25,000, conditioned on meeting all financial obligations under the handler's contracts with hemp cultivators. The bill would allow hemp cultivators to make direct actions on the bond.
Status: 6/12/20: Enacted with various effective dates
NEW LAW: SB 364 – Receivers. Would revise the existing requirements for receivers to post a bond to eliminate a requirement that two sufficient sureties must provide the bond. The bill would require the bond to be issued by a corporate surety. Cash bonds also would be accepted.
Status: 7/1/20: signed by the Governor; Chapter 75; effective 1/1/21
SB 473 – Barber Schools. Would require barber schools to post a bond in an amount at least equal to the maximum amount of prepaid tuition held at any time by the school during the last fiscal year, but in no case shall the bond be less than $10,000.
Status: 4/3/19: (S) introduced and referred to Rules and Operations of the Senate.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
D 32 – 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: 12/9/19: Filed. Dated 12/12/2019.
Note: North Dakota does not have a regular legislative session in 2020; this is an Interim Committee bill draft.
D 52 – E-Liquid Taxation. Would tax nicotine "e-liquid" and add it to existing provisions concerning licenses for cigarette wholesale and distributor outlets, which require a surety bond approved by the attorney general.
Status:
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 263 – Occupational Regulations. Would prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation for which a license is required solely or in part because of a prior conviction of a crime, unless the crime directly relates to the duties and responsibilities for the licensed occupation. The bill would require state licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify a license applicant to meet this standard. State license authorities would be prohibited from using terms such as "moral turpitude" and "good character." State licensing authorities also could not consider a license applicant's arrests without a conviction. The bill would revise existing licensing laws concerning criminal convictions to require compliance with this process and to eliminate references to moral turpitude and good character requirements.
Status: 6/24/20: (S) referred to Transportation, Commerce and Workforce
NEW LAW: HB 339 – Public Adjusters. Allows a nonresident public adjuster in good standing in his/her own state to obtain a certificate of authority in Ohio. Nonresidents will be subject to the existing bond requirement.
Status: 10/1/20: Enacted; effective 1/1/21
HB 399 – Cosmetology Schools. Would modify the bond amount required for cosmetology schools from $10,000 to 10% of the school's gross income from tuition, fees, and other required institutional charges during the preceding calendar year; $10,000 minimum, $250,000 maximum. A private career school may obtain a bond in a greater amount. Barber schools would be subject to certain requirements imposed on cosmetology schools.
Status: 11/12/19: (H) referred to State and Local Government
HB 432 – Occupational Licensing. Would require an Ohio occupational licensing authority to issue a license or government certification to an applicant who holds a license, government certification, or private certification or has satisfactory work experience in another state under certain circumstances.
Status: 12/10/19: (H) read second time; referred to State and Local Government
HB 452 – Occupational Regulations Reform. Simply states that the General Assembly intends to enact legislation revising and streamlining the State's occupational regulations to better accommodate Ohio's workforce. This bill might be intended as a placeholder for future amendment affecting occupational regulations.
Status: 1/28/20: (H) referred to State and Local Government
SB 1 – Occupational Regulations Reform. Would provide for the review the regulatory requirements for occupational licensing. All state agencies would be required to compile an inventory of regulatory restrictions.
Status: 6/3/20: (S) Conference committee managers chosen
SB 245 – Cosmetology Schools. Would modify the bond amount required for cosmetology schools from $10,000 to 10% of the school's gross income from tuition, fees, and other required institutional charges during the preceding calendar year; $10,000 minimum, $250,000 maximum. A private career school may obtain a bond in a greater amount. Barber schools would be subject to certain requirements imposed on cosmetology schools.
Status: 12/11/19: (S) referred to Transportation, Commerce and Workforce
SB 246 – Occupational Regulations Reform. Would expand reciprocity in occupational licensing for out-of-state licensees. Existing provisions affecting bonds and surety remain without revision.
Status: 12/4/19: (S) read second time; referred to General Government and Agency Review
SB 289 – Fidelity Bond. Would amend existing law to add new provisions requiring that the Board of Condominiums and Planned Community Properties must secure blanket fidelity, crime, or dishonesty insurance coverage for any person who controls or disburses association funds.
Status: 3/4/20: (S) read first time; referred to General Government and Agency Review
SB 322 – Nonrecourse Civil Litigation Advance Businesses. Would require registration of any company engaged in the business of nonrecourse civil litigation advance in the state and a $50,000 bond or insurance policy.
Status: 6/10/20: (S) read first time; referred to Judiciary
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 1595 – Vendor Permits. Would shorten from three years to one year the term for vendor permits, but would retain the existing provision that the Tax Commission may require an applicant for a Group Three vendor permit to furnish a surety bond or other security as the Commissioner may deem necessary to secure payment of taxes.
Status: 5/21/20: Vetoed by the Governor
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 2073 – Public Officials. Would authorize townships, etc. to obtain insurance in lieu of public official bonds.
Status: 10/29/20: approved by the Governor; Act No. 96; effective 60 days from passage
HB 2140 – Home Improvement Contractors. Would create the Contractor Bonding for Adjoining Properties Act. Under the Act, a contractor performing a home improvement project (with certain exceptions) or a new home construction project on adjoining property to provide a surety bond in the amount of $500,000 for each property that adjoins the property on which the contractor's project is being performed. The bond would only be used to cover damages to any adjoining property caused by the contractor.
Status: 12/17/19: (H) introduced and referred to Commerce
HB 2735 – Fireworks Displays. Would require a bond from a person who holds a permit to use consumer fireworks or display fireworks in a sum not less than $500, conditioned for the payment of all damages which may be caused to a person or property by reason of the fireworks display and arising from any acts of the permittee or its agents, employees or subcontractors.
Status: 7/30/20: (H) introduced and referred to Agriculture and Rural Affairs
SB 23 – Estates Laws. Would revise the laws pertaining to guardians of incapacitated persons. The bill provides that except as otherwise provided, every guardian shall file a bond in an amount the court considers necessary, having regard to the value of the personal estate which will come into the control of the guardian.
Status: 4/3/20: (S) referred to Judiciary
SB 790 – Oil and Gas Wells. Would rewrite the law for conventional oil and gas wells. Under current law, a surety bond or other security is required in connection obtaining a permit for the wells. The existing law sets forth a formula to determine the bond amount, which is calculated based on the depth of the well and the number of wells that are in operation. A blanket bond in the amount required under this existing formula is accepted to cover all wells. The bill provides that the bond amount would have to be for $2,500 per well for at least two years, at which point the Environmental Quality Board will adjust the bond amount every five years based on the projected well plugging costs. A blanket bond would be accepted for an amount equal to $25,000 for at least five years, at which point the Board could adjust the bond to account for well plugging costs every two years. The maximum increase would be $10,000 for the blanket bond.
Status: 11/17/20: (S) Senate concurred in House amendments; signed
Related Bill: HB 1635
NEW LAW: SB 841 – Vendors. Would authorize the proposed Health Care Cost Containment Council to enter into contracts with vendors for the purchase of services and for the purchase or lease of supplies and equipment. The Council could require the vendor to furnish a performance bond in an amount determined by the Council.
Status: 4/20/20: signed by the Governor; Act No. 15; effective immediately
SB 1039 – Public Officials. Would amend Title 16 of the statutes, known as The County Code, by consolidating and making a related repeal. The new chapter would allow counties to obtain crime insurance policies in lieu of surety bonds for its officers.
Status: 9/14/20: (H) referred to Local Government
SB 1227 – Fireworks Displays. Would repeal existing laws governing fireworks, including striking provisions stating municipalities shall require a bond deemed adequate from the permittee in a sum not less than $50,000, conditioned for the payment of all damages which may be caused to a person or property by reason of the display and arising from an act of the permittee or its agent, employee or subcontractor.
Status: 7/13/20: (S) introduced and referred to Agriculture and Rural Affairs
SB 1326 – Tax Credit Services. Would require any person registered to engage in the business of effecting transactions in tax credits for the account of others to provide the Department of Revenue with a $50,000 bond.
Status: 10/19/20: (S) second consideration; re-referred to Appropriations
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 3197 – Student Loan Servicers. Would create the Student Loan Bill of Rights Act and require licensure and bonding for any student loan servicer. Such licensees must file a surety bond in an amount determined by the administrator, based on the total dollar amount of loans subject to regulation by the administrator in a calendar year in this State pursuant to the following: (a) dollar volume of student education loans up to $49,999,999 - $50,000 bond; (b) dollar volume of student education loans from $50,000,000 to $249,999,999 - $100,000 bond; (c) dollar volume of student education loans greater than $250,000,000 - $150,000 bond. In no case shall the surety bond less than $50,000.
Status: 2/20/20: (S) introduced, read first time and referred to Education
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SB 25 – Tobacco Product Manufacturers. Would require tobacco product manufacturers to post a surety bond at least 10 days before the beginning of each calendar quarter in order to sell their products in the state. The amount of the bond would be the greater of the largest required deposit into a qualified escrow fund by the manufacturer or its predecessor for any of the 12 preceding calendar quarters, or $25,000.
Status: 3/18/20: signed by the Governor; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1305 – Public Officials. Would require each county government to report to the comptroller of the treasury on or before 12/31 whether the county government has elected to obtain blanket surety bond coverage or an insurance policy for its employees.
Status: 6/15/20: (H) reset on Final Calendar of Calendar & Rules Committee
HB 2497 – Human Resource Agencies. Would authorize human resource agencies to obtain insurance in lieu of surety bonds to ensure the lawful performance by agency officials and employees of their fiduciary duties and responsibilities.
Status: 3/12/20: (S) received from House, passed on first consideration
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 203 – Beer Delivery License. Would create the Beer Delivery License Act under which licensees would be required to post a cash or surety bond, payable to the department, in the penal sum of $5,000.
Status: 3/12/20: (H) strike enacting clause; to House file for bills not passed
NEW LAW: HB 312 – Litigation Financiers. Would require a litigation funding provider to be registered and obtain a bond in an amount of at least $50,000.
Status: 3/24/20: signed by the Governor; effective 5/12/20
HB 332 – Scholarship Programs. Would create the Special Needs Opportunity Scholarship Program and related income tax credits. The bill would require a qualifying school that receives scholarship money equal to or more than $100,000 to file with a scholarship granting organization a surety bond in an amount equal to the aggregate amount of scholarship money expected to be received during the school year, or financial information that demonstrates the financial viability of the school.
Status: 4/1/20: Vetoed by the Governor
NEW LAW: HB 4003b – Scholarship Programs. Would create the Special Needs Opportunity Scholarship Program and related income tax credits. The bill would require a qualifying school that receives scholarship money equal to or more than $100,000 to file with a scholarship granting organization a surety bond in an amount equal to the aggregate amount of scholarship money expected to be received during the school year, or financial information that demonstrates the financial viability of the school.
Status: 4/28/20: signed by the Governor; effective 1/1/21
NEW LAW: SB 37 – Electronic Cigarettes. Would expand taxes to new nicotine products, and "require a manufacturer, jobber, distributor, wholesaler, or retailer that is responsible ... for the collection of tax on an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device to post a bond" between $500 and $1500 depending on whether the bond is posted in combination with other required bonds.
Status: 3/30/20: signed by the Governor; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 550 – Asset Locators. Requires all asset locators seeking to interact with the Vermont Secretary of Administrator on behalf of apparent owners must first register with the Administrator. In order to obtain and maintain registered status, all asset locators must post a performance bond of not less than $10,000 to insure the Administrator against any fraudulent or mistaken claims that may arise as a result of an asset locator's representation of an apparent owner.
Status: 4/28/20: signed by the Governor; effective 1/1/21
HB 603 – National Guard. Would repeal bond requirements currently imposed on certain members of the state militia known as the National Guard, including its quartermaster general and all officers who are responsible for public military property or funds.
Status: 1/7/20: (H) introduced and referred to General, Housing and Military Affairs
NEW LAW: HB 650 – Horse Racing. Would repeal numerous statutory provisions concerning horse racing, including provisions requiring certain events to obtain a license and provide a $75,000 bond.
Status: 7/1/20: signed by the Governor; Act 128; effective 7/1/20
SB 209 – Milk Handlers. Seeks a report on the bonding requirements for milk handlers.
Status: 1/7/20: (S) read first time and referred to Agriculture
NEW LAW: SB 233 – Occupational Licensing. The bill applies to the professions and occupations regulated by the Office of Professional Regulation, the Department of Environmental Conservation (for well drillers), the Standards Board for Professional Educators, the Board of Medial Practice, the Electricians' Licensing Board, and the Plumbers' Examining Board. With several exceptions, the act creates uniform standards for these professional regulatory entities' licensure processes in regard to the following areas and in a manner that is tailored to each entity's professional regulatory structure: military credentials, fees; criminal backgrounds, second chance determination request; sunset review; endorsement from other states; and foreign credential verification.
Status: 9/23/20: signed by the Governor; Act 152; effective 4/1/21
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 4 – Casino Gaming Operations. Would allow casino gaming in certain qualifying cities. Licensed operators would be subject to the requirements of the Virginia Lottery, including posting a bond as determined by the director.
Status: 4/22/20: House and Senate accepted Governor's recommended amendments. Reenrolled. Chapter 1197.
Related Bill: SB 36
NEW LAW: HB 10 – Student Loan Servicers. Would require licensure of qualified education loan servicers, whether or not they have an office or any other physical presence in Virginia, and applicants would be required to post a bond in an amount determined by the commissioner; $50,000 minimum, $500,000 maximum. The bond would be conditioned on the applicant or licensee performing all written agreements pertaining to qualified education loans, correctly and accurately accounting for all funds received, and conducting its business in conformity with the law. Any person damaged by the principal may proceed on the bond to recover damages. The aggregate liability under the bond shall not exceed the penal sum.
Status: 4/22/20: House and Senate accepted Governor's recommended amendments. Reenrolled. Chapter 1198.
NEW LAW: HB 390 – Alcoholic Beverage Control Licenses. Would reorganize alcoholic beverage control licenses into a three-tiered structure with various associated fees. Existing provisions concerning surety and tax bonds remain.
Status: 4/10/20: approved by the Governor; Chapter 1113; effective 7/1/20
NEW LAW: HB 466 – Business License Waivers. Would raise the permissible threshold for business license waivers granted by the governing body of any county, city or town with a population greater than 500,000. Currently, such governing bodies may waive business or professional license requirements for any person within its jurisdiction having gross receipts of less than $100,000. The new threshold for a possible license waiver would be gross receipts of $200,000 or less.
Status: 3/10/20: approved by the Governor; Chapter 242; effective 7/1/20
NEW LAW: HB 789 – Consumer Finance Companies. Would amend existing and add new provisions governing consumer finance companies and access partners, including internet lenders dealing with Virginians, which limit certain fees, rates and terms. A license would be required along with a bond in the amount of $50,000 per location, or such greater sum as the Commissioner may require, but not to exceed a total of $500,000. The bond would be conditioned upon the applicant/licensee performing all written agreements with borrowers or prospective borrowers, correctly and accurately accounting for all funds received, and conducting its licensed business in conformity with all applicable laws. Direct third-party liability.
Status: 4/22/20: House and Senate accepted Governor's recommended amendments. Reenrolled. Chapter 1215.
NEW LAW: HB 896 – Sports Wagering. Would amend the state lottery statutes to allow for the issuance of permits for sports betting. An applicant could apply to the director of the Virginia Lottery, and the director may require bond or other surety in an amount to be determined by rules and regulations adopted by the Virginia Lottery Board.
Status: 4/22/20: House and Senate accepted Governor's recommended amendments. Reenrolled. Chapter 1218.
NEW LAW: HB 967 – Occupational Licensing. Would permit expedition of professional licenses and certifications obtained through reciprocity with other jurisdictions for spouses of military service members by allowing a board to waive any requirement relating to experience if the board determines that the documentation provided by the applicant supports such a waiver.
Status: 3/2/20: approved by the Governor; Chapter 28; effective 7/1/20
NEW LAW: HB 1553 – Debt Settlement Services Providers. Would impose a license and bond requirement on debt settlement services providers who engage in "any action or negotiation initiated or taken on behalf of any consumer with any creditor of the consumer for the purpose of obtaining debt forgiveness of all or a portion of the credit extended by the creditor to the consumer or a reduction of payments, charges, or fees payable by the consumer." An application for a license shall be accompanied by a bond filed with the Commissioner with corporate surety authorized to execute the bond in the Commonwealth, in the principal amount as determined by the Commission. The amount of the bond shall be not less than $25,000 nor more than $350,000. The form of the bond shall be approved by the Commission. The bond shall be continuously maintained thereafter in full force, and the Commission may require the principal amount to be adjusted as it deems necessary.
Status: 4/7/20: approved by the Governor; Chapter 785; effective 7/1/21
HB 1677 – Electric Utilities. Would create the Virginia Energy Reform Act requiring each incumbent electric utility to segregate its business activities into separate units for generation, transmission and retail service. Among numerous requirements is a requirement that the Commission shall promulgate regulations to govern third-party power providers acting as retail sellers, and in so doing, the Commission shall "require minimum capitalization or other bond or surety that, in the judgment of the Commission, is necessary for adequate consumer protection and in the public interest."
Status: 2/4/20: (H) in Labor and Commerce: Continued to 2021
NEW LAW: SB 36 – Casino Gaming Operations. Would allow casino gaming in certain qualifying cities. Licensed operators would be subject to the requirements of the Virginia Lottery, including posting a bond as determined by the director.
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1248.
Related Bill: HB 4
NEW LAW: SB 77 – Student Loan Servicers. Would require licensure of qualified education loan servicers, whether or not they have an office or any other physical presence in Virginia, and applicants would be required to post a bond in an amount determined by the commissioner; $50,000 minimum, $500,000 maximum. The bond would be conditioned on the applicant or licensee performing all written agreements pertaining to qualified education loans, correctly and accurately accounting for all funds received, and conducting its business in conformity with the law. Any person damaged by the principal may proceed on the bond to recover damages. The aggregate liability under the bond shall not exceed the penal sum.
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1250.
NEW LAW: SB 384 – Sports Wagering. Would amend laws governing the state lottery to include and regulate sports betting. The Director of the Virginia Lottery would issue permits and may require "bond or other surety satisfactory to the Director from permit holders in such amount as provided in the rules and regulations" adopted by the Virginia Lottery Board. Each "permit holder shall either (i) be bonded by a surety company entitled to do business in the Commonwealth in such amount and penalty as may be prescribed by the regulations of the Board or (ii) provide other surety as may be satisfactory to the Director, payable to the Department, and conditioned on performance of its duties under this article. Such surety shall be prescribed by Board regulations and shall not exceed a reasonable amount." As amended, clause (ii) above would be amended to also allow a "letter of credit, or reserve" not just "other surety."
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1256.
NEW LAW: SB 389 – Alcoholic Beverage Control Licenses. Would reorganize alcoholic beverage control licenses into a three-tiered structure with various associated fees. Existing provisions concerning surety and tax bonds remain.
Status: 4/10/20: approved by the Governor; Chapter 1114; effective 7/1/20
NEW LAW: SB 421 – Loan Access Partners and Internet Lenders. Would govern loan access partners and internet lenders, requiring a license and bond filed with the Commissioner with corporate surety authorized to execute such bond in the Commonwealth, in the sum of $50,000 per location, or such greater sum as the Commission may require, but not to exceed a total of $500,000. Amendments would also increase the discretionary bond requirements, if the Commissioner so requires, for licensed short-term lenders from a maximum of $50,000 to a new maximum of $500,000.
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1258.
NEW LAW: SB 444 – Election Recounts. Would reorganize provisions relating to election recounts, but retain the requirement to "post a bond with surety with the court in the amount of $10 per precinct in the area subject to recount." As before, if the petitioner wins the recount, the bond shall not be forfeited; if the petitioner loses the recount, the bond shall be forfeited only to the extent of the assessed costs; and if the assessed costs exceed the bond, he shall be liable for such excess.
Status: 4/8/20: approved by the Governor; Chapter 886; effective 7/1/20
NEW LAW: SB 971 – Electronic Gaming Devices. Would authorize the licensing of manufacturers, distributors, operators, and hosts of electronic gaming devices. The director the Virginia Lottery may require a bond or other surety from licensees in such amount as provided in the rules and regulations adopted by the Virginia Lottery Board.
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1277.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 6029 – Uniform Directed Trust Act. Would, unless the terms of a trust express otherwise, extend the existing requirement that a trustee give a bond to secure performance to include a trust director. Trust director is defined as a person who is granted a power of direction by the terms of a trust to the extent the power is exercisable while the person is not serving as a trustee.
Status: 4/2/20: signed by the Governor; Chapter 303; effective 1/1/2021
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 4077 – Proprietary Schools. Would increase the bond required to be posted by each proprietary school having facilities in the state from $35,000 to an amount between $50,000 - $100,000, as determined by the council, and conditioned upon the school faithfully performing all requirements of the legislation.
Status: 3/25/20: approved by the Governor; effective 6/1/20
NEW LAW: HB 4747 – Private Investigators and Security Guards. Would eliminate the existing requirement that all applicants for private detective or private investigator licenses, or for private investigation firm licenses, file a surety bond.
Status: 3/25/20: approved by the Governor; effective 6/5/20
NEW LAW: HB 4749 – Private Investigators and Security Guards. Would allow private investigators, security guards, and private investigator or security guard firms to obtain liability insurance in lieu of the bond. The bill also would increase the bond amount from $2,500 to $5,000.
Status: 3/25/20: approved by the Governor; effective 6/5/20
NEW LAW: SB 213 – Trust Administration. Would govern trust directors and provides that, unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding, among other things, giving of bond to secure performance under §44D-7-702 of the code.
Status: 3/25/20: (S) approved by the Governor; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: AB 357 – Public Adjusters. Would require applicants for a public adjuster license to post a bond that meets specifications established by the commissioner to guarantee faithful performance of duties and obligations as a public adjuster. A registration would remain in effect for two years from the date of issuance, unless it is revoked or suspended by the commissioner.
Status: 3/3/20: approved by the Governor; Act 129; effective on the first day of the 4th month beginning after publication. Published on 3/4/20.
NEW LAW: SB 289 – Notice of Change in Terms or Premium Amount for Insurance Policy Renewal. Would reduce the notice time frame to insureds when an insurer offers to renew an insurance policy on less favorable terms or with a premium increase of at least 25% for personal lines property and casualty policies.
Status: 3/3/20: approved by the Governor; Act 155; effective on the first day of the 4th month beginning after publication. Published on 3/4/20.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 102 – Combat Sports. Renames the Board of Mixed Martial Arts as the Wyoming Combat Sports Commission.
Status: 3/17/20: signed by the Governor: Chapter 124; effective 3/17/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
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