NEWS

COMMERCIAL SURETY   

HB 22 – Notaries Public.  Appointment of residents of bordering states who carry on a business, profession, or are regularly employed in Alabama.

Status:  3/5/19: (H) read first time and referred to State Government  

HB 81 – Motor Fuels.  Would enact the Rebuild Alabama Act to levy an additional excise tax on gasoline and diesel fuel, and increase the cap on the bond for suppliers, permissive suppliers, or terminal operators from $2,000,000 to $3,000,000.

Status:  3/5/19: (H) read first time and referred to Transportation, Utilities and Infrastructure

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

Status:  4/3/19: (H) read second time and placed on the calendar; pending third reading on Day 7, Favorable from State Government

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

Status:  4/4/19: (S) received from House. Read first time and referred to Judiciary.

Related Bill:  SB 174 

HB 315 – Sports Wagering.  Would require sports wagering operators to be licensed and post a bond in an amount that the Commission would determine.  The bond would be conditioned on the licensee making all required payments in compliance with the applicable laws and regulations.

Status:  4/2/19: (H) read first time and referred to Economic Development and Tourism 

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

Status:  4/4/19: (H) read first time and referred to Economic Development and Tourism; re-referred to State Government 

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

Status:  4/9/19: (H) read first time and referred to State Government 

Related Bill:  SB 286  

SB 76 – Medicaid Estate Recovery Program.  Provides that a Medicaid agency may petition the court to open the probate estate of a Medicaid recipient by filing a petition to appoint a third party administrator.  The administrator would be required to procure a bond in accordance with Article 4, Chapter 2, of Title 43 of the Code of Alabama 1975.

Status:  4/16/19: (S) Motion to Read a Third Time and Pass adopted; engrossed  

SB 152 – Certificate of Title - Vessels.  Provides that persons seeking a new certificate of title for vessel without providing the existing title for a transfer of ownership could be required to post a bond for an amount not more than twice the value of the vessel.  The bond would indemnify any owner, purchaser, or other claimant for any expense, loss, delay, or damage, including reasonable attorney's fees and costs, but not including incidental or consequential damages, resulting from creation or amendment of the certificate.

Status:  4/3/19: (S) Motion to Carry Over to the Call of the Chair adopted. Further consideration.

SB 174 Receivers or Custodians.  Provides that a receiver or custodian appointed for a corporation could be required to post a bond with or without sureties.  The court would determine the bond amount.

Status:  4/2/19: (S) read first time and referred to Fiscal Responsibility and Economic Development 

Related Bill:  HB 250 

SB 264 – Wireless Facilities.  Would allow the State and local governments to issue permits for use of the right-of-way for installing small wireless facilities.  The State and local governments could impose reasonable and nondiscriminatory requirements for bonds or other security to secure the removal of abandoned or unused antenna facilities, or damage to the right-of-way or the authority's property caused by the permittee.

Status:  4/9/19: (S) read first time and referred to Transportation and Energy

SB 285 – Abandoned Motor Vehicles.  Would require a person purchasing an abandoned motor vehicle from an entity that has not posted a bond as an agent of the Department of Revenue to meet the existing law's bond requirement to obtain a certificate of title.

Status:  4/16/19: (S) read first time and referred to Fiscal Responsibility and Economic Development 

Related Bill:  HB 394

SB 286 – Motor Vehicle Dealers.  Would change the required amount of the license bond for new motor vehicle dealers, used motor vehicle dealers, motor vehicle rebuilders, and motor vehicle wholesalers to $50,000 or another amount that the Department of Revenue requires.  Current law provides for a $25,000 bond.  The bill provides that the bond would secure the payment of the dealer's tax liability and any penalties imposed on the dealer.  The bill also would subject a wholesale motor vehicle auction dealer to the bond requirements.

Status:  4/16/19: (S) read first time and referred to Fiscal Responsibility and Economic Development  

Related Bill:  HB 393 

CONTRACT SURETY   

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

COMMERCIAL SURETY 

SB 16 – Alcoholic Beverages.  Would revise existing law so that a brewer, distiller, bottler, jobber, wholesaler, or manufacturer would not be required to post the bond if they have filed monthly tax returns and paid the tax to the Department of Revenue in a timely manner over the most current three consecutive years.  Current law requires licensees to post a $25,000 bond to secure payment of the applicable tax. 

Status:  4/9/19: (H) read first time and referred to Labor and Commerce    

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

COMMERCIAL SURETY

HB 2151 – Court Bond.  Provides that a bond may be required in connection with proceedings to compel the satisfaction of a judgment.  The party filing the motion for satisfaction of the judgment would have to post the bond, and it would have to be equal to the amount of the judgment.

Status:  3/27/19: (S) from Senate Committee of the Whole; to third reading     

COMMERCIAL SURETY 

NEW LAW:  HB 1301 – Occupational Licensing.  Would create a new process for persons to obtain expedited temporary licenses if he or she holds an occupational license in good standing from another state or U.S. territory or district that is substantially similar.  Occupational licensing entities in Arkansas would have to implement the least restrictive requirements to grant a reciprocity license endorsement.  If the person's state does not require a license, the occupational licensing entity would have to adopt regulations that are the least restrictive to permit sufficiently competent individuals to obtain an Arkansas license.  The occupational licensing entity would be allowed to require the individual applying for occupational licensure to meet any bonding, financial statement, or insurance requirements that are applicable to all applicants.  The bill's provisions would not apply to reciprocity or licensing by endorsement provisions that already are in existing law for several professions.  Occupational licensing entities would be permitted to enter into agreements with occupational licensing entities in other states to assure that there are comparable nonresident licensing opportunities.

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

NEW LAW:  HB 1527 – Occupational Licensing.  Provides that is the legislature's intent to determine and implement the least restrictive form of occupational authorization to protect consumers from significant and substantiated harms to public health and safety.  The bill would establish a process for the Legislative Council to review occupational regulations on an annual basis to determine if the regulations are consistent with this intent.  The Legislative Counsel would have to analyze whether consumers are sufficiently protected by competition, public knowledge of the reputations of occupational practitioners, private ratings and reviews, private certification, voluntary bonding, and voluntary insurance.  If the Legislative Council finds substantiated evidence of significant harm arising from failure of an occupational licensee to complete a contract fully or comply with standards, the Legislative Council may recommend legislation requiring the occupational licensee to be bonded.  The Legislative Council would have to recommend to the legislature whether to repeal an occupational regulation, revise the regulation to be less restrictive, revise the qualifications for the occupation, or revise the scope of practice of an occupation or profession.  The bill would impose reporting requirements on occupational entities concerning their regulations.

NEW LAW:  SB 187 – Money Transmitters.  Would revise the license bond amount required for money transmitters to require a bond in an amount based on the dollar volume of money transmissions, payment instruments, and store value instruments, with a $10,000 minimum and $300,000 maximum.  The bill would authorize setting specific bond amounts by regulation. Under current law, the bond amount must be $50,000, plus $10,000 per location with a maximum amount of $300,000.

Status:  2/13/19: approved by the Governor; Act No. 111

CONTRACT SURETY 

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

COMMERCIAL SURETY 

NEW LAW:  HB 1043 – Life Care Facilities.  Would revise the existing law concerning the kinds of security that may be posted to meet the reserve requirements for life care facilities to allow surety bonds.  Existing law permits several forms of security to be posted.  The reserves must cover the obligations of the provider under the life care agreements.

Status:  3/28/19: signed by the Governor; effective 8/2/19, if adjournment sine die is on 5/3/19

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

Status:  3/29/19: (H) introduced and referred to Transportation and Local Government 

SB 65 – Peer Health Assistant Programs - Emergency Medical Service Providers.  Would require an administering entity for a peer health assistance program for emergency medical service providers to post a bond in an amount that the State Board of Health would determine to secure its performance under the law.

Status:  4/11/19: (S) considered House amendments, result was to concur and repass. Eligible for the Governor's desk.     

NEW LAW:  SB 105 – Trusts.  Would adopt the Uniform Directed Trust Act, which would require the trust director for a directed trust to comply with the existing bond requirement for trustees.  Existing law requires a bond under the Uniform Trust Code's model in which the trustee must post a bond only if the court required one or it is required by the terms of the trust and the court has not dispensed with the requirement. 

Status:  3/28/19: signed by the Governor; effective 8/2/19, if adjournment sine die is on 5/3/19     

CONTRACT SURETY 

SB 101 – P3s.  Would prohibit the Department of Transportation or any of its enterprises from constructing or designating a managed lane on a state highway or entering into a P3 for a managed lane, unless the DOT conducts a thorough evaluation of alternatives for increasing capacity and reducing traffic congestion on state highways, publishes a detailed report on why the alternatives are not feasible and makes it available online, conducts outreach efforts, and submits annual reports to the state legislature.

Status:  2/26/19: (S) from Transportation and Energy: Postpone indefinitely  

Status:  4/16/19: signed by the Governor; effective 8/2/19       

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

COMMERCIAL SURETY

HB 7104 – Uniform Trust Code.  Would adopt the Uniform Trust Code.  Under current law, the court must require a trustee to post a bond, unless it is otherwise specified in the will.  The court may require a trustee to post a bond if it is not required in the will upon application from an interested person.  The bill provides that the trustee only would have to post a bond if the court determines it is needed or if it is required in the terms of the trust and the court has not dispensed with the requirement.  The court would determine the bond amount, its liabilities and whether sureties are required.

Status:  4/10/19: (LCO) filed with the Legislative Commissioners' Office   

SB 815 – Public Officials.  Would permit the Connecticut Health and Educational Facilities Authority and the Connecticut Higher Education Supplemental Loan Authority to obtain an insurance policy in lieu of a surety bond to secure the faithful performance of the duties of authorized officers or employees.  The insurance policy would have to be for $100,000 per each occurrence.  These authorities would have to determine any applicable deductible or self-insured retention.  Under existing law, the bond for the Connecticut Health and Educational Facilities Authority must be for $50,000 for each board member and $100,000 for each officer.  A blanket bond is accepted to meet the requirement.  For the Connecticut Higher Education Supplemental Loan Authority, a $50,000 bond is required for each officer and board member authorized to handle funds.  A $50,000 blanket bond is accepted to meet the requirement.

CONTRACT SURETY

HB 5945 – P3s.  Would require the Commissioner of Transportation to be required to study best practices of established P3s, and to make recommendations to the relevant joint standing committee of the General Assembly that handles transportation issues on creating a framework for P3s to thrive in the state.

Status:  4/10/19: (H) referred to Appropriations    

HB 7280 – Infrastructure; P3s.  Would create the Connecticut Transportation Finance Authority for transportation infrastructure projects.  The bill would authorize the Authority to pursue P3s for the design, development, operation or maintenance of transportation systems, transit-oriented development and related infrastructure.  The bill does not specify procurement requirements for P3s.  The bill also would allow the Commissioner of Transportation to establish electronic tolling systems on state highways.  The bill would create a Connecticut Transportation Infrastructure Bank Fund.

Status:  4/8/19: Reported out of LCO: Favorable report, tabled for the House calendar. House Calendar Number 317. LCO File Number 490. 

SB 878 – P3s; Payment and/or Performance Bonds.  Would expand the existing P3 law to authorize the use of this project delivery method permanently for an unlimited number of projects, instead of operating as a pilot program for five projects.  Under existing law, performance and payment bonds or other security is required as a condition of the P3 agreement.  The bill also would revise the kinds of projects eligible to be conducted as a P3.  Currently, any public building or transportation project that generates revenue can be conducted as a P3.  The bill would allow P3s to be used for any kind of infrastructure project.

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

COMMERCIAL SURETY

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

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

COMMERCIAL SURETY 

HB 3 – Occupational Regulations - Preemption of Local Regulations.  Would preempt local governments from adopting regulations and licensing requirements for professions and occupations so that this exclusively would be the state's role.  The proposed law would supersede any local government regulation or licensing requirement of professions and occupations, except for those in place prior to July 1, 2019, and any such regulation that is expressly authorized by general law or ratified by the legislature before July 1, 2021.  All local professional and occupational regulations would expire on July 1, 2021, without such legislative approval.  After July 1, 2019, local governments only could adopt new regulations on businesses if the regulation is necessary to protect the public health, safety, or welfare from significant and discernible harm or damage and that the police power being exercised is only being exercised to the extent necessary for that purpose.  New local regulations could not unnecessarily restrict entry into the business or adversely impact the availability of the business' services.  The regulation would have to be the least restrictive and most cost effective regulatory scheme.  The bill does not define what the least restrictive regulations would be, but it does set forth several factors for evaluating the cost impact of a regulation.  The local government would have to issue a statement of the estimated costs using these standards and certify that the regulation either does not impose regulatory costs or that there is not a less costly alternative.  All local regulations would have to sunset after two years from when it was adopted.  Professional and occupational regulations would have to be adopted with a two-thirds majority vote of the local governing body.  The bill specifically would restrict local governments from requiring licenses for specialty contractors for the following trades: painting, flooring, cabinetry, interior remodeling, driveway or tennis court installation, and decorative stone, tile, marble, granite, or terrazzo installation, plastering, and stuccoing.

Status:  4/18/19: (S) in Messages   

Related Bill:  SB 1748

HB 27 – Occupational Licensing.  This bill is an occupational deregulation measure that would revise or repeal several license requirements.  The bill would repeal the license requirement for talent agencies but retain the existing $5,000 bond requirement.  The bond is conditioned on compliance with the applicable law.  The law also permits direct actions on the talent agency's bond.

Status:  4/8/19: (H) referred to House Calendar. First reading. Added to Second Reading Calendar.  

Related Bill:  SB 1640   

HB 409 – Electronic Notaries.  Would require online notaries providing electronic notarizations to post a minimum $25,000 surety bond, conditioned on the faithful performance of the notaries' official duties.  If a notary posts this bond, he or she would not be required to post a separate bond for the existing notary bond requirement. The bill would also require qualified custodians of electronic wills to post a minimum $250,000 surety bond or liability insurance to cover the acts or omissions of the custodian and each of its agents or employees.  The bond would be for the benefit of all persons who store electronic records with a qualified custodian and their estates, beneficiaries, successors, and heirs, and conditioned on the faithful performance of all duties and obligations.

Status:  4/18/19: (H) added to Special Order Calendar for 4/23/19   

HB 431 – Lien Release.  Would allow a person claiming a lien against a motor vehicle to obtain the release of the vehicle from a lien claimed by a motor vehicle repair shop by posting a surety bond or cash deposit as provided in existing law for vehicle owners seeking the vehicle's release from the shop.

Status:  4/17/19: (H) read second time, amendment adopted. Read third time, CS passed as amended.    

HB 475 – Certificate of Title - Vessels.  Would authorize the Department of Highway Safety to require a bond or other security in connection with an application for transfer of ownership or termination of security interest without a certificate of title for a vessel that is valued at more than $5,000.  The bond would have to be in an amount not more than twice the value of the vessel, and indemnify any owner, purchaser, or other claimant for any expense, loss, delay, or damage, including reasonable attorney fees and costs, but not including incidental or consequential damages resulting from creation or amendment of the certificate of title for the vessel.

Status:  4/18/19: (S) referred to Infrastructure and Security; Appropriations Subcommittee on Transportation, Tourism, and Economic Development; Appropriations  

Related Bill:  SB 676

HB 693 – Wireless Facilities.  Provides that counties and municipalities could require a communication services provider seeking a permit for using the right-of-way for a small wireless facility to provide a construction bond to secure restoration of the post-construction rights-of-way to their pre-construction condition.  The bill would eliminate the authority for counties and municipalities to adopt ordinances for furnishing performance bonds.  The construction bond could not be in place for more than one year after the construction is completed.  The bill provides that a letter of credit would be accepted in lieu of the bond.

Status:  4/19/19: (H) reported out of Commerce; laid on table under Rule 7.18(a); CS filed 

Related Bill:  SB 1000

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

Status:  4/19/19: (H) 3 amendments filed 

Related Bill:  SB 892

HB 1053 – Private Rebuilt Motor Vehicle Inspection Program.  Would create a private rebuilt motor vehicle inspection program that would be designed to prevent the use of stolen parts in the rebuilding process, identify and recover stolen motor vehicles, require the installation of non-recalled airbags in rebuilt motor vehicles, and assist law enforcement with the investigation of motor vehicle theft and related fraud.  To participate in this program a private rebuilt inspection provider would have to furnish a $100,000 surety bond or letter of credit to cover all activities in the program.

Status:  4/18/19: (H) from State Affairs: Favorable with CS  

HB 1267 – Moving Companies - Claims.  Would require the claims filed for a moving company's bond or deposit to be submitted in writing on an affidavit form.  The Department of Agriculture and Consumer Service would have to receive the claims within 120 days after an alleged injury has occurred or is discovered to have occurred or a judgment has been entered.

Status:  3/8/19: (H) referred to Agriculture and Natural Resources Appropriations Subcommittee.  Referred to Commerce.  Now in Business and Professions Subcommittee.  

Related Bill:  SB 1788

SB 334 – Occupational Regulation.  Would require several occupational licensing boards to use the process set forth in the bill for reviewing a license applicants criminal record to determine the applicant's eligibility, including licenses for contractors.  The bill would prohibit using the criminal history of an applicant for licensure for these licensing boards to be used as grounds for denial of the license if the date of conviction, plea, or adjudication, or the date of sentencing is more than three years before the date of application.

Status:  4/18/19: (S) on Appropriations Committee agenda, not considered     

SB 548 – Electronic Notaries and Custodians of Electronic Wills.  Would require online notaries providing electronic notarizations to post a minimum $25,000 surety bond, conditioned on the faithful performance of the notaries' official duties.  If a notary posts this bond, he or she would not be required to post a separate bond for the existing notary bond requirement.  The bill would also require qualified custodians of electronic wills to post a minimum $250,000 surety bond or liability insurance to cover the acts or omissions of the custodian and each of its agents or employees.  The bond would be for the benefit of all persons who store electronic records with a qualified custodian and their estates, beneficiaries, successors, and heirs, and conditioned on the faithful performance of all duties and obligations.

Status:  4/18/19: (S) placed on Calendar, on second reading    

Related Bill:  HB 409

SB 676 – Certificate of Title - Vessels.  Would authorize the Department of Highway Safety to require a bond or other security in connection with an application for transfer of ownership or termination of security interest without a certificate of title for a vessel that is valued at more than $5,000.  The bond would have to be in an amount not more than twice the value of the vessel, and indemnify any owner, purchaser, or other claimant for any expense, loss, delay, or damage, including reasonable attorney fees and costs, but not including incidental or consequential damages resulting from creation or amendment of the certificate of title for the vessel.

Status:  4/19/19: (S) in Appropriations. Pending reference review under Rule 4.7(2) - committee substitute    

Related Bill:  HB 475

SB 892 – Receivership.  Would require receivers and custodians appointed for a corporation to post a bond in an amount that the court would determine in connection with a shareholder action to place the corporation into receivership or have a custodian appointed.

Status:  4/19/19: (S) placed on Calendar, on second reading  

Related Bill:  HB 1009

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

Status:  4/18/19: (S) CS/CS/CS by Appropriations - favorable   

SB 1322 – Marijuana Treatment Centers.  Would require medical marijuana treatment centers to register and post a $1 million "performance and compliance bond" instead of the $5 million bond or letter of credit required under existing law.  The bond would be forfeited if the treatment center fails to comply with the requirements established in the bill.

Status:  3/5/19: (S) introduced

SB 1522 – Private Postsecondary Educational Institutions.  Would require non-public postsecondary educational institutions to post a surety bond or other security for a license if they are not financially stable or depend on foreign financial resources in an amount not to exceed 50% of the institution's projected revenue for its first year.  The bond would be for the benefit of students damaged by an institution ceasing operation before its first license renewal.

Status:  3/13/19: (S) introduced  

SB 1528 – Wholesale Drug Distributors.  Would allow Canadian suppliers that are a manufacturer, wholesale distributor, or pharmacy a licensed or permitted under Canadian law to manufacture, distribute, or dispense prescription drugs to export them to Florida under the Canadian Prescription Drug Importation Program that the bill would create.  The bill would require Canadian suppliers, American importers, and vendors that the Agency for Health Care Administration hires to provide services under the program to each post a surety bond or other security for at least $1 million.  The bond amount would be based on the supplier or importer's volume of business under the program.  The bond would secure payment of any administrative penalties for a failure to pay any penalty assessments under the program, compliance with any contractual and statutory obligations, and participation in any civil or criminal legal actions.  The bill would permit direct actions on the bond.

Status:  4/19/19: (S) pending reference review under Rule 4.7(2), committee substitute   

SB 1640 – Occupational Licensing.  This bill is an occupational deregulation measure that would revise or repeal several license requirements.  The bill would repeal the license requirement for talent agencies but retain the existing $5,000 bond requirement.  The bond is conditioned on compliance with the applicable law.  The law also permits direct actions on the talent agency's bond. 

Status:  4/19/19: (S) pending reference review under Rule 4.7(2), committee substitute    

SB 1748 – Occupational Regulations - Preemption of Local Regulations.  Would preempt local governments from adopting regulations and licensing requirements for professions and occupations so that this exclusively would be the state's role.  The proposed law would supersede any local government regulation or licensing requirement of professions and occupations, except for those in place prior to July 1, 2019, and any such regulation that is expressly authorized by general law or ratified by the legislature before July 1, 2021.  All local professional and occupational regulations would expire on July 1, 2021, without such legislative approval.  After July 1, 2019, local governments only could adopt new regulations on businesses if the regulation is necessary to protect the public health, safety, or welfare from significant and discernible harm or damage and that the police power being exercised is only being exercised to the extent necessary for that purpose.  New local regulations could not unnecessarily restrict entry into the business or adversely impact the availability of the business' services.  The regulation would have to be the least restrictive and most cost effective regulatory scheme.  The bill does not define what the least restrictive regulations would be, but it does set forth several factors for evaluating the cost impact of a regulation.  The local government would have to issue a statement of the estimated costs using these standards and certify that the regulation either does not impose regulatory costs or that there is not a less costly alternative.  All local regulations would have to sunset after two years from when it was adopted.  Professional and occupational regulations would have to be adopted with a two-thirds majority vote of the local governing body.  The bill specifically would restrict local governments from requiring licenses for specialty contractors for the following trades:  painting, flooring, cabinetry, interior remodeling, driveway or tennis court installation, and decorative stone, tile, marble, granite, or terrazzo installation, plastering, and stuccoing.

Status:  3/13/19: (S) introduced

Related Bill:  HB 3

SB 1788 – Moving Companies - Claims.  Would require the claims filed for a moving company's bond or deposit to be submitted in writing on an affidavit form.  The Department of Agriculture and Consumer Service would have to receive the claims within 120 days after an alleged injury has occurred or is discovered to have occurred or a judgment has been entered.

Status:  3/25/19: (S) on Committee agenda - Commerce and Tourism.  Temporarily postponed. 

Related Bill:  HB 1267 

SB 7064 – Oil and Gas Wells.  Would revise the amount of the permit bond required under existing law for surface exploratory and extraction operations to be for at least $500,000 per well for individual bonds, and for at least $5,000,000 for a blanket bond for all wells if the wells are located in the Everglades Protection Area.

Status:  3/26/19: (S) from Innovation, Industry, and Technology Committee: Reported favorably. Referred to Environment and Natural Resources

SPB 7090 – Rebuilt Motor Vehicle Inspection Program.  Would expand the existing pilot rebuilt motor vehicle inspection program for Miami-Dade County to become a permanent, state-wide program.  Existing law requires a $100,000 surety bond or letter of credit.  The bill provides that the bond would have to be in place for one year for the private rebuilt inspection provider.

Status:  4/18/19: (S) now in Appropriations  

CONTRACT SURETY 

HB 101 – Retainage.  Would reduce the amount of retainage that could be withheld from a progress payment from an amount not exceeding 10% to an amount not exceeding 5% until the project reaches 50% completion for any contracts for public construction services.  The bill would reduce the amount of retainage that is withheld after these projects reach 50% completion from 5% to 2.5%; it would also reduce the amount that can be withheld on public building contracts that are below $200,000 from up to 10% to up to 5% of each progress payment.

Status:  4/18/19: (S) referred to Governmental Oversight and Accountability; Community Affairs; Appropriations      

Related Bill:  SB 246  

HB 385 – P3s.  Would authorize the Tampa-Hillsborough County Expressway Authority and the Central Florida Expressway Authority to enter into P3s for transportation facilities.  The bill does not provide any procurement requirements for these P3s.  The bill provides that each P3 transportation facility constructed under the bill's provisions would have to comply with all of the requirements of federal, state, and local laws; state, regional, and local comprehensive plans; the rules, policies, procedures, and standards for transportation facilities for these authorities; and any other conditions that these authorities determine to be in the public's best interest.

Status:  4/17/19: (H) read third time; CS passed as amended     

Related Bill:  SB 898

HB 693 – Performance Bond.  Provides that counties and municipalities could require a communication services provider seeking a permit for using the right-of-way for a small wireless facility to provide a construction bond to secure restoration of the post-construction rights-of-way to its pre-construction condition.  The bill would eliminate the authority for counties and municipalities to adopt ordinances for furnishing performance bonds.  The construction bond could not be in place for more than one year after the construction is completed.  The bill provides that a letter of credit would be accepted in lieu of the bond.

Status:  4/18/19: (H) from Commerce: Favorable with CS  

HB 1247 – Payment Bonds.  Provides that the law concerning the payment of attorneys' fees in suit against a surety on a performance or payment bond would apply to a contractor's suit.  Current law provides that the attorneys' fees requirements apply to suits against sureties that are brought by owners, subcontractors, laborers, and materialmen.  The bill would revise the existing law concerning conditional payment bonds furnished for private work to allow a contractor to record a notice identifying a project bond as a conditional payment bond before the project commences in order to make the duty of a surety to pay lienors coextensive with the contractor's duty to pay.  A failure to list or record a bond as a conditional payment bond would not convert the bond into a common law bond or a payment bond furnished under the existing law for private work.  The bill also would revise the notice requirements for payment bond claimants on public works projects to set forth the required contents of a notice of nonpayment.  The bill also would establish penalties for fraudulent notices of nonpayment.

Status:  4/18/19: (H) added to Special Order Calendar for 4/24/19     

Related Bill:  SB 1200

HB 7113 – P3s.  Would create the Multi-use Corridors of Regional Economic Significance Program for the Department of Transportation for the construction of regional corridors to accommodate multiple modes of transportation and multiple types of infrastructure.  The bill provides that P3s could be used for these projects.  Under the existing P3 law for the DOT, surety bonds or other security are required.  The DOT determines the forms and amounts of security required for P3s.  Projects included in this program are the Southwest-Central Florida Connector, the Suncoast Connector, and the Northern Turnpike Connector.

Status:  4/3/19: (H) placed on second reading calendar

Related Bill:  SB 7068

SB 122 – Award of Attorney Fees.  Would revise the existing law concerning the award of attorney fees in judgments against insurers to specify that an insured or beneficiary entitled to attorney fees under an insurance policy or contract would have to be a named insured or named beneficiary.  The bill also provides that the right to attorney fees also could not be assigned or extended by contract or other agreement to any person other than another named insured, named beneficiary, or omnibus insured.

Status:  4/18/19: (S) placed on Special Order Calendar for 4/23/19     

SB 246 – Retainage.  Would reduce the amount of retainage that could be withheld from a progress payment from an amount not exceeding 10% to an amount not exceeding 5% until the project reaches 50% completion for any contracts for public construction services.  The bill would reduce the amount of retainage that is withheld after these projects reach 50% completion from 5% to 2.5%; it would also reduce the amount that can be withheld on public building contracts that are below $200,000 from up to 10% to up to 5% of each progress payment.

Status:  3/7/19: (S) in Appropriations; CS/CS by Community Affairs read first time    

Related Bill:  HB 101

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

COMMERCIAL SURETY

COMMERCIAL SURETY 

HB 70 – Virtual Currency Businesses.  Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Division of Financial Institutions would determined, based on the nature and the extent of the applicant's virtual currency business model.  A surety bond would only be required if it is generally available in the state for a commercially reasonable cost.

Status:  2/1/19: (H) re-referred to Intrastate Commerce, Consumer Protection & Commerce/Judiciary, and Finance

Related Bill:  SB 250  

HB 79 – Small Loan Lenders.  Would require small loan lenders to be licensed and post a surety bond in an amount ranging from $30,000 to $250,000, based on the lender's loan origination volume.  The bond would secure the lender's compliance with applicable laws and regulations, and the payment of any amount due to the state and persons having a cause of action against the lender.  The surety's aggregate liability would be limited to the bond amount.

Status:  1/22/19: (H) referred to Consumer Protection & Commerce and Finance  

Related Bill:  SB 537

HB 638 – Planned Community Association Managing Agent.  Would require the managing agent for a planned community association to obtain a fidelity bond in an amount equal to $500 multiplied by the aggregate number of units in the association that the agent manages.  The minimum bond amount would be $20,000 and the maximum amount would be $500,000.  The bill provides that the fidelity bond would protect the managing agent against the loss of any association's moneys, securities, or other properties caused by the fraudulent or dishonest acts of employees of the managing agent.  The bill also would require a planned community association with more than five dwelling units to obtain a fidelity bond that covers persons, including the managing agent and its employees who control or disburse funds of the association, in an amount equal to $500 multiplied by the number of units in the association.  The minimum bond amount would be $20,000 and the maximum bond amount would be $200,000.  The bill would permit associations to seek an exemption from the bond requirement or provide an alternative form of security.
Status:  2/1/19: (H) hearing held in Consumer Protection and Commerce; committee recommended that the measure be deferred

HB 986 – Third Party Administrators.  Would require a third party administrator for insurance plans to be licensed and to post a surety bond of at least $300,000.  The insurance commissioner would determine the bond amount.  The bill provides for a two-year tail on the bond, but the bond could be cancelled earlier with the insurance commissioner's permission.

Status:  2/14/19: (H) passed second reading as amended and referred to Finance    

Related Bill:  SB 1212  

HB 1058 – Payday Lenders.  Would require payday lenders to be licensed and post a surety bond in an amount ranging from $30,000 to $250,000, based on the annual dollar amount of deferred deposit agreements conducted.  The bond would secure the lender's compliance with applicable laws and regulations, and payment of any amount due to the state and persons having a cause of action against the lender. The aggregate liability of the surety would be limited to the bond amount.

Status:  1/28/19: (H) to Intrastate Commerce. Subsequent referral set for Consumer Protection and Commerce, and Finance

SB 250 – Virtual Currency Businesses.  Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Division of Financial Institutions would determined, based on the nature and the extent of the applicant's virtual currency business model.  A surety bond would only be required if it is generally available in the state for a commercially reasonable cost.

Status:  1/24/19: (S) re-referred to Commerce, Consumer Protection, and Health and Ways and Means

Related Bill:  HB 70

SB 537 – Small Loan Lenders.  Would require small loan lenders to be licensed and post a surety bond in an amount ranging from $30,000 to $250,000, based on the lender's loan origination volume.  The bond would secure the lender's compliance with applicable laws and regulations, and the payment of any amount due to the state and persons having a cause of action against the lender.  The surety's aggregate liability would be limited to the bond amount.

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

Related Bill:  HB 79

SB 686 – Cannabis Dispensaries.  Would legalize marijuana for recreational use.  Under current law, marijuana only is allowed for medical uses.  The bill would revise the existing law for medical cannabis distribution systems to reflect this change, including the requirement for a cannabis dispensary to provide documentation that demonstrates control of not less than $1 million in the form of a surety bond or other security. 

Status:  2/13/19: (S) to Commerce, Consumer Protection, and Health; additionally referred to Ways and Means 

SB 1212 – Third Party Administrators.  Would require a third party administrator for insurance plans to be licensed and to post a surety bond of at least $300,000.  The insurance commissioner would determine the bond amount.  The bill provides for a two-year tail on the bond, but the bond could be cancelled earlier with the insurance commissioner's permission.

Status:  4/18/19: (H) received notice of Senate conferees        

Related Bill:  HB 986 

CONTRACT SURETY     

HB 821 – P3s; Infrastructure.  Would authorize the Department of Business, Economic Development, and Tourism to enter into a P3 to plan, build, and manage key strategic broadband infrastructure that benefits the state, including a cable landing station. The bill would exempt these projects from the state procurement law, which includes the Little Miller Act.  The P3 partners would have to develop internal policies and procedures for the procurement of goods, services, and construction that are consistent with the goals of public accountability and public procurement.  The bill also would exempt these projects from state and county permitting requirements.

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

HB 889 – P3s.  Would authorize the state and county governments to enter into P3s for infrastructure facilities.  In addition to the current bid security requirements, the bill would require one or more forms of security to assure the timely, faithful, and uninterrupted provision of operations or maintenance services as elements of the P3.  Acceptable forms of security would include operations period surety bonds to secure the contractor's operations and maintenance obligations, a letter of credit to cover the cost of preventing infrastructure service interruptions for a period of up to 12 months, and parent company guarantees to secure the recovery of re-procurement costs to the purchasing agency in the event of the contractor's default in performance.  The bill would establish the Office of Public-Private Partnerships to assist state and county agencies with these projects and develop best practices for P3s.

Status:  4/18/19: (H) received notice of Senate conferees     

Related Bill:  SB 882 

HB 1025 – Performance Bonds.  Would require the lessee, or lessee and developer, for a lease with the Board of Land and Natural Resources for public lands for commercial, hotel, resort, or industrial use to furnish a sufficient performance bond to secure the terms and conditions of the development agreement.

Status:  4/18/19: (H) received notice of Senate conferees       

Related Bill:  SB 1251  

HB 1062 – Infrastructure; Performance Bonds.  Would establish a broadband infrastructure grant program.  The bill provides that the regulations adopted to implement the program could not include third-party audit requirements, letter of credit, security fund, or performance bond obligations, or any other financial commitment to secure performance other than those expressly specified in the law.  The law does not currently include such specifications.

Status:  4/18/19: (H) received notice of Senate conferees     

Related Bills:  HB 1156 and SB 553 

HB 1156 – Infrastructure; Performance Bonds.  Would establish a broadband infrastructure grant program.  The bill provides that the regulations adopted to implement the program could not include third-party audit requirements, letter of credit, security fund, or performance bond obligations, or any other financial commitment to secure performance other than those expressly specified in the law.  The law does not currently include such specifications.

Status:  2/8/19: (H) passed second reading as amended and referred to Consumer Protection and Commerce

Related Bills:  HB 1062 and SB 553

HB 1212 – P3s.  Would authorize the Hawaii Community Development Authority to enter into P3s by establishing a lease-back arrangement between the Authority and private investors.  Under these agreements, the private investor would renovate, improve, or construct public infrastructure for the Authority under a ground lease or easement, and may maintain the facility.  The private investor would lease back the public infrastructure to the Authority.  The Authority would have the option to purchase the public infrastructure at any time during the lease.

Status:  1/28/19: (H) to Housing. Additionally referred to Transportation. Subsequent referrals set for: Water and Land and Finance   

HB 1582 – Bid Bonds.  Would allow proposals to be submitted for concessions on public property.  Existing law only allows for bids.  Such proposals would be subject to the existing law's bid bond requirements for concessions contracts.

Status:  4/15/19: (S) received notice of House conferees     

Related Bill:  SB 1535

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

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

Related Bill:  SCR 108  

SB 218 – P3s.  Would require the Hawaii Technology Development Corporation shall seek to establish a public-private partnership with a private organization to plan, build, and manage broadband infrastructure projects.  Pursuant to existing law, these projects would be exempt from state and county permitting requirements and utility pole replacement requirements.  The bill does not specify any procurement requirements for these projects otherwise.

Status:  2/15/19: (S) report adopted; passed second reading as amended and referred to Ways and Means  

SB 515 – Financing; P3s.  Would create the Hawaii State Infrastructure Bank to provide financial assistance for public and private affordable housing projects.  The bill provides that a P3 would be eligible to receive funds through this program.

Status:  1/24/19: (S) To Housing. Additionally referred to Commerce, Consumer Protection, and Health. Subsequent referral set for Ways and Means. 

SB 553 – Infrastructure; Performance Bonds.  Would establish a broadband infrastructure grant program.  The bill provides that the regulations adopted to implement the program could not include third-party audit requirements, letter of credit, security fund, or performance bond obligations, or any other financial commitment to secure performance other than those expressly specified in the law.  The law does not currently include such specifications.

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

Related Bills:  HB 1062 and HB 1156

SB 882 – P3s.  Would authorize the state and county governments to enter into P3s for infrastructure facilities.  In addition to the current bid security requirements, the bill would require one or more forms of security to assure the timely, faithful, and uninterrupted provision of operations or maintenance services as elements of the P3.  Acceptable forms of security would include operations period surety bonds to secure the contractor's operations and maintenance obligations, a letter of credit to cover the cost of preventing infrastructure service interruptions for a period of up to 12 months, and parent company guarantees to secure the recovery of re-procurement costs to the purchasing agency in the event of the contractor's default in performance. The bill would establish the Office of Public-Private Partnerships to assist state and county agencies with these projects and develop best practices for P3s.

Status:  1/24/19: (S) referred to Government Operations; Energy, Economic Development, & Tourism; and Ways and Means 

Related Bill:  HB 889

SB 1251 – Performance Bonds.  Would require the lessee, or lessee and developer, for a lease with the Board of Land and Natural Resources for public lands for commercial, hotel, resort, or industrial use to furnish a sufficient performance bond to secure the terms and conditions of the development agreement.

Status:  3/7/19: (H) passed first reading; referred to Water, Land, and Hawaiian Affairs; Judiciary; Finance  

Related Bill:  HB 1025 

SB 1535 – Bid Bonds.  Would allow proposals to be submitted for concessions on public property.  Existing law only allows for bids.  Such proposals would be subject to the existing law's bid bond requirements for concessions contracts.

Status:  1/28/19: (S) referred to Government Operations; Ways and Means

Related Bill:  HB 1582  

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

COMMERCIAL SURETY 

NEW LAW:  HB 141 – Reclamation.  Would revise the financial assurance requirements for mining operations to permit other forms of security to be furnished in lieu of a surety bond as financial assurance.  The bill also would eliminate the requirement for the financial assurance to include an additional 10% of the costs of reclamation and closing the facility.

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

HB 253 – Education Savings Accounts.  Would establish an education savings account program as part of a school choice measure.  The state treasurer would have to contract with a private, nonprofit contractor to administer the program.  The contractor would be authorized to require surety bonds from education service providers that receive more than $100,000 in funds from these accounts.

Status:  3/12/19: (H) reported printed and referred to Education 

SB 1007 – Collection Agencies.  Would repeal the existing requirement for collection agencies to post a $15,000 surety bond or certificate of deposit in connection with licensure, and establish the Collection Agency Recovery Fund.

Status:  3/26/19: (H) read third time in full, U.C. to be returned to Business Committee    

NEW LAW:  SB 1048 – Fidelity Bond; Financial Institution.  Would revise the fidelity bond requirement for credit unions to eliminate a requirement that the fidelity bond cover burglary, robbery, larceny, theft, forgery or alterations of instruments, misplacement or mysterious disappearance, and for faithful performance of duty.  The bond only would have to cover fraud and dishonesty as required under existing law.

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

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

COMMERCIAL SURETY 

HB 1471 – Trusts.  Would repeal the current trust code and replace it with the Uniform Trust Code.  The bill provides that a trustee would be required to post a bond only if it is required by the terms of the trust and the court has not dispensed with the requirement.  The liability of the trustee or any surety for acts or omissions of the trustee would not be discharged or affected by the trustee's resignation.  Corporate fiduciaries would be exempt from the bond requirement.  Current law does not require a trustee to be bonded. 

Status:  3/20/19: (S) received from House; first reading, referred to Assignments   

HB 2577 – Liquor Manufacturers and Importing Distributors.  Would exempt liquor manufacturers and importing distributors from the existing tax bond requirement if their tax liability is less than $50,000 in the preceding year. 

Status:  4/9/19: (S) first reading, referred to Assignments  

HB 3269 – Motor Vehicle Dealers.  Would require "Buy Here, Pay Here" used vehicle dealers to be licensed and post a surety bond for $50,000 per location.  The bond would be conditioned upon the proper transmittal of all title and registration fees and taxes that the licensee accepts.  A "Buy Here, Pay Here" dealer is an entity that engages in the business of selling or leasing of vehicles and finances the sale or purchase price of the vehicle to a customer without the customer using a third-party lender. 

Status:  4/3/19: (S) referred to Assignments

SB 1296 – PACE Program.  Would require contractors participating in the Property Assessed Clean Energy (PACE) program for residential property to maintain a permit, license, or registration in the jurisdiction where it operates, and maintain the required bond and insurance coverage. 

Status:  4/12/19: (S) Rule 3-9(a), re-referred to Assignments 

SB 2037 – Notary Public Remittance Agents.  Would require notary public remittance agents to post a $20,000 surety bond.  Such agents remit notary public applications to the Secretary of State on behalf of applicants for appointment and commission as a notary public. 

Status:  4/11/19: (H) first reading, referred to Assignments 

CONTRACT SURETY 

HB 873 – Performance Bonds.  Would create the Metro East Development Authority. Contractors performing work on the Authority's construction contracts for demolishing buildings and for paving and improving streets would have to provide a performance bond. 

Status:  3/29/19: (H) Rule 19(a), re-referred to Rules  

HB 2722 – Payment Bonds.  Would amend the Little Miller Act to require the bond to cover the payment of apparatus, fixtures, and machinery used in the completion of a contract.  Existing law requires the bond to cover the payment of materials and labor.  The bill would allow persons furnishing an apparatus, fixtures, and machinery to file claims against the bond for payment as provided under existing law for persons furnishing materials and labor.  The bill would define "material", "labor", "apparatus", "fixtures", and "machinery" to include rented items that are on the construction site and rented tools used or consumed on the construction site in the performance of the contract for which the bond is given. 

Status:  4/4/19: (S) first reading; referred to Assignments    

HB 2865 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds.  Would authorize the use of the design-build and construction manager/general contractor project delivery methods for transportation facility projects.  The bill provides that the projects would be subject to the requirements of the Little Miller Act.  The request for proposals for these projects could set out the bid, payment, and performance security requirements. 

Status:  3/29/19: (H) Rule 19(a), re-referred to Rules; House Committee Amendment No. 1 - Rule 19(c), re-referred to Rules  

Related Bills:  HB 3063, HB 3443 and SB 1995

HB 2916 – Retainage.  Would cap retainage on private construction contracts at not more than 10% of the progress payments until the project reaches 50% completion, at which time retainage would be reduced to 5%. 

Status:  3/29/19: (H) Rule 19(a), re-referred to Rules  

Related Bill:  SB 1636 

HB 3063 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds.  Would authorize the use of the design-build and construction manager/general contractor project delivery methods for transportation facility projects.  The bill provides that the projects would be subject to the requirements of the Little Miller Act.  The request for proposals for these projects could set out the bid, payment, and performance security requirements. 

Status:  3/29/19: (H) Rule 19(a), re-referred to Rules   

Related Bills:  HB 2865, HB 3443 and SB 1995

HB 3398 – Energy Savings; Performance Bonds.  Would increase the required guarantee period for an energy savings contract entered into with public universities from 20 to 30 years.  The guarantee must insure that either the energy or operational cost savings, or both, will meet or exceed within 20 years the costs of the energy conservation measure under existing law.  The law requires providers to furnish a bond for the installation and the faithful performance of all the measures included in the contract. 

Status:  4/12/19: (H) Rule 19(a), re-referred to Rules   

HB 3443 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds.  Would authorize the use of the design-build and construction manager/general contractor project delivery methods for transportation facility projects.  The bill provides that the projects would be subject to the requirements of the Little Miller Act.  The request for proposals for these projects could set out the bid, payment, and performance security requirements. 

Status:  3/29/19: (H) Rule 19(a), re-referred to Rules    

Related Bills:  HB 2865, HB 3063 and SB 1995

SB 1636 – Retainage.  Would cap retainage on private construction contracts at not more than 10% of the progress payments until the project reaches 50% completion, at which time retainage would be reduced to 5%. 

Status:  4/9/19: (H) assigned to Executive Committee  

Related Bill:  HB 2916

SB 1846 – Minority Business; Payment and/or Performance Bonds; Veteran-Owned Business; Woman-Owned Business.  Would include veterans in existing contracting programs for minorities, women, and persons with disabilities, including a provision concerning surety bond premiums.  The law prohibits the premium bond rate of a surety company for a bond required for a business owned by a minority, woman, or person with a disability who is bidding for a state contract from being higher than the lowest rate charged by the surety company for a similar bond in the same classification of work that would be written for a business not owned by a minority, woman, or person with a disability. 

Status:  3/22/19: (S) Rule 3-9(a), re-referred to Assignments  

SB 1995 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds.  Would authorize the use of the design-build and construction manager/general contractor project delivery methods for transportation facility projects.  The bill provides that the projects would be subject to the requirements of the Little Miller Act.  The request for proposals for these projects could set out the bid, payment, and performance security requirements. 

Status:  4/11/19: (H) referred to Rules    

Related Bills:  HB 2865, HB 3063, HB 3443  

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

COMMERCIAL SURETY 

HB 1086 – Local Licensing and Permitting.  Would establish standards for license bonds that a political subdivision may require.  If a person is required to post a license or permit bond in a political subdivision, the bond would have to be: (i) written by a surety authorized to transact business in the state; (ii) in an amount that is at least equal to the amount that the political subdivision requires; and (iii) must specify the appropriate political subdivision(s) as the obligee(s), as set forth in the bill.  The bond condition would have to otherwise comply with the requirements of the ordinance imposing the bond requirement.  The licensee would have to file a copy of the bond with the political subdivision or the appropriate agency.  The political subdivision would be prohibited from requiring the license bond to be recorded.

Status:  4/16/19: (H) signed by the Speaker  

HB 1196 – Horse Racing Events.  Would revise the existing permit bond requirements for horse racing events to allow alternative forms of security to be furnished in lieu of the bond required under existing law, which must be in an amount not to exceed $1 million.

Status:  4/8/19: (S) Senate advisors appointed

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

Status:  4/15/19: (S) Senate conferees and advisors appointed 

HB 1271 – Occupational Licensing.  Would permit employers and consumers to hire a person if he or she does not have a license for certain professions or occupations listed in the bill if the person performing the work provides a disclosure notice to the consumer that complies with the requirements of the law.  An individual who engages in an occupation without a license is required to comply with all health, safety, security, confidentiality, reporting, and consumer protection requirements that are imposed on an individual with an occupational license, including insurance, and bonding, among other requirements.

Status:  1/10/19: (H) first reading; referred to Employment, Labor and Pensions 

HB 1395 – Right-of-Way Permits.  Would revise the existing bond requirements for permits from the Department of Transportation for the excavation or obstruction of a street, highway, or right-of-way to cap the bond amount at not more than $10,000 for each area designated in the permit.  The bill provides that a blanket bond could be furnished to meet the bond requirement.

Status:  1/16/19: (H) in Utilities, Energy and Telecommunications; Rep. Lehman added as coauthor  

HB 1440 – Residential Loan Brokers.  Would rewrite the current law on residential loan brokers, who must post a surety bond in an amount ranging from $50,000 to $75,000, based on the volume of the loan origination business.  The bill would require the broker to post a $60,000 bond in electronic form.  The bond would cover all of the broker's loan originators and principal managers.

Status:  3/28/19: (S) signed by the President Pro Tempore

HB 1444 – e-Cigarette Distributors.  Would require distributors of e-cigarette vapor products and consumable materials to post a $1,000 bond conditioned on compliance with the applicable law.

Status:  4/17/19: (H) House dissented from Senate amendments  

HB 1447 – Civil Proceeding Advance Payment Transaction Providers.  Would revise the bond requirement for civil proceeding advance payment transaction providers to require the surety issuing the bond to have at least an A- rating, the bond to have a 2-year tail, and require 30 days' notice to cancel the bond.  Current law requires a bond in an amount not to exceed $50,000.  The bill would require notices in connection with license bonds for mortgage businesses to be sent through the NMLSR rather than by mail.  Providers would also have to send notices via the NMLSR. 

Status:  4/16/19: (H) signed by the Speaker  

HB 1675 – Education Savings Accounts.  Would establish an education savings account program as part of a school choice measure.  The bill would require participating entities receiving $50,000 or more in funds from such accounts to post a bond in an amount equal to the funds expected to be received during the school year or provide financial information demonstrating their ability to repay that amount. 

Status:  1/24/19: (H) first reading; referred to Education

SB 265 – Trustees.  Would adopt the Uniform Directed Trust Law.  Trust directors would have to comply with the existing bond requirements for trustees.  The law requires the trustee to post a bond only if the terms of the trust or the court requires a bond to be posted.  Unless otherwise directed, the court determines the amount, surety, and term of the bond.  The court also has discretion to excuse a bond requirement. 

Status:  4/16/19: (H) signed by the Speaker   

SB 345 – Postsecondary Educational Institutions.  Would require for-profit postsecondary educational institutions to post a surety bond or other form of financial guarantee, conditioned on the institution faithfully performing all agreements and contracts with students.  The Commission for Higher Education would determine the bond amount.  The bill would also require institutions to pay an annual fee for the For-Profit Postsecondary Educational Student Reimbursement Fund.  If the total claims filed against the bond or guarantee exceed the penal sum, the surety or guarantor would pay the amount of the bond or guarantee to the Commission for distribution to claimants.  The Commission would only pay claimants who applied for reimbursement from the recovery fund if the claimant filed a claim against the bond and the bond has been exhausted.

Status:  1/10/19: (S) introduced and referred to Education and Career Development 

SB 357 – Public Officials.  Would regulate the use of cannabis in the state.  Commissioners of the Cannabis Compliance Commission would be required to post a $10,000 bond to secure their performance of duties.

Status:  1/31/19: (S) in Health and Provider Services; Sen. Stoops added as coauthor

Related Bill:  SB 211

SB 384 – Occupational Licensing.  Would require the least restrictive regulation to be adopted if it is determined that an occupational regulation is needed to protect consumers.  The bill provides that there is a presumption that market competition and private remedies are sufficient to protect consumers.  The bill follows the ALEC model act for determining what the least restrictive regulation is; required bonding and insurance would be considered more restrictive and voluntary bonding and insurance would be considered less restrictive.  All proposed regulations would be subject to review by the Small Business Ombudsman using these standards.  An occupational regulation would only be adopted if there is credible empirical evidence of a systematic problem that justifies the adoption of an occupational regulation to protect consumers.  The bill would incorporate these standards for occupational regulations into the existing law's requirements to review all regulations for their costs and economic impact, regulatory flexibility, impacts on small businesses, and for readopting regulations that are set to expire.  The bill would permit the attorney general to disapprove an occupational regulation if it violated federal antitrust laws.

Status:  1/14/19: (S) introduced and referred to Commerce and Technology.  Senators Holdman and Spartz added as coauthors. 

SB 576 – Public Officials.  Would repeal the existing bond requirements for the executive directors of the Health Professions Licensing Agency and the Workforce Licensing Agency.  The bonds secure faithful performance of duties and faithful accounting of all money and property that the executive director handles in his/her official capacity. 

Status:  1/14/19: (S) introduced and referred to Commerce and Technology

SB 613 – Installment Lenders.  Would require installment small loan lenders to meet the license and bond requirements in existing law for small loan lenders ($50,000 per location).  The director of the Department of Financial Institutions determines the maximum amount of the bond required.  The bond is conditioned on compliance with the applicable law and regulations, and must remain in force for two years after expiration.  The surety must have at least an A- rating. 

Status:  4/11/19: (H) Amendment #1 motion withdrawn    

CONTRACT SURETY   

NEW LAW:  HB 1019 – Bond Threshold.  Would increase the threshold at which certain bidding requirements must be met for construction contracts with county drainage boards from $75,000 to $150,000, including bonding requirements.  For contracts under this threshold, the boards have the authority to waive the bid bond and performance bond requirements under existing law.  The state bond threshold is $200,000.

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

HB 1052 – P3s; Payment and/or Performance Bonds.  As amended, this bill would allow political subdivisions to enter into P3s for regional jail facilities under the existing law for using P3s for public facilities.  The P3 agreement may require a performance bond and provide for the payment of contractors and subcontractors under the applicable law.

Status:  3/7/19: (S) first reading; referred to Tax and Fiscal Policy 

HB 1055 – Payment Bonds.  Would allow the discharge of a mechanic's lien claim by either the posting of a new indemnification bond or the filing of copies of a payment bond furnished by a contractor or subcontractor.  The indemnification bond or the payment bond would have to be equal to at least 150% of the lien claim and the surety issuing the indemnification bond or payment bond would have to be rated at least "A-" by at least one nationally recognized investment rating service.  A bond filed or deposited discharges the liability of a person served by a lien claimant.  The bill also provides for the formation of a study committee to study judgment liens and establishing an online system for submitting information, sending notices concerning judgments, and providing a searchable database for these cases.

Status:  3/7/19: (S) first reading; referred to Judiciary    

HB 1374 – P3s; Payment and/or Performance Bonds.  Would establish a requirement for payment and performance bonds in all three of the existing P3 laws.  For projects under $25 million, performance and payment bonds may be required and the public entity may set the bond amount.  For projects that exceed $25 million but are less than $250 million, performance and payment bonds that are equal to the design and construction costs for the project would be required.  For projects exceeding $250 million, performance and payment bonds would be required in an amount of not less than 50% of the design and construction costs.  The requirements would apply to P3 agreements entered into after June 30, 2019.

Status:  4/11/19: (S) signed by the President Pro Tempore  

SB 66 – P3s.  As amended, this bill would create the Gary Trans-Modal Compact between the various transportation entities in the Gary area to oversee, direct, support, coordinate, and plan for the development, enhancement, and operation of infrastructure serving the trans-modal compact area.  The bill would allow the compact to enter into P3s under the existing law allowing the use of P3s for transportation facilities.  Under this P3 law, the P3 agreement must provide for the delivery of performance and payment bonds or other performance security in the forms and amounts set forth in the P3 agreement or as the DOT determines to be satisfactory to protect the DOT and payment bond beneficiaries.

Status:  3/11/19: (H) in Public Policy; cosponsors added  

SB 290 – Prevailing Wage.  Would establish a prevailing wage requirement for public construction contracts exceeding $150,000.  The public owner could terminate the contract if the contractor or a subcontractor failed to pay the prevailing wage rate.  The original contractor or subcontractor and their sureties would be liable to the public owner for any excess costs resulting from the contractor's or subcontractor's failure to pay the required prevailing wage.  The Commissioner of Labor could bring an action against the contractor's or subcontractor's surety to pay wages to workers claiming that they were paid less than the prevailing wage.  If the Commissioner prevails, the contractor, subcontractor, and their sureties would be liable for the costs of the suit and reasonable attorney fees according to the court's determination.  The previous prevailing wage law was repealed in 2015, which did not include liability provisions for sureties.

Status:  1/7/19: (S) first reading; referred to Pensions and Labor 

SB 574 – Bonding Assistance Program.  Would add businesses owned by Hoosiers with a disability as small businesses.  The bill would require these businesses to be included in an annual offering of instruction on surety bond requirements and how to obtain bonds from the Department of Administration that is available under existing law for small, women, and minority-owned businesses.  The bill would also include these businesses in contract preferences in existing law for public works and purchasing contracts that currently apply to small, women, and minority-owned businesses.

Status:  1/14/19: (S) first reading; referred to Pensions and Labor 

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

COMMERCIAL SURETY 

HF 64 – Fidelity Bonds; Background Checks.  Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made.  The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.

Status:  1/28/19: (H) in Labor; subcommittee assignments: Grassley, Dolecheck and Hunter  

Related Bills:  HF 163, SF 142 

HF 163 – Fidelity Bonds; Background Checks.  Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made.  The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.

Status:  2/4/19: (H) in Labor; subcommittee assignments: Grassley, Dolecheck and Hunter  

Related Bills:  HF 64, SF 142 

HF 391 (HSB 13) – Travel Trailer Dealers.  Would increase the amount of the bond required for travel trailer dealers from $25,000 to $75,000.

Status:  4/11/19: (S) passed; immediate message. (H) received message from Senate.  

Related Bill:  SF 268

HF 398 – Reclamation.  Would require owners of a confined feeding operation for animals to post a $10 million surety bond in connection with obtaining approval for a manure management plan.  The bond would secure the payment of the related costs if there is a violation of the law that results in a discharge from a manure storage structure.  The surety's liability would be limited to the bond amount.

Status:  2/18/19: (H) introduced, referred to Agriculture 

HF 472 – Fidelity Bonds; Background Checks.  Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made.  The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.

Status:  2/21/19: (H) introduced, referred to Labor  

Related Bills:  HF 64, HF 163, SF 142, SF 390

HF 521 – Reclamation.  Would require owners of a confined feeding operation for animals to post a $10 million surety bond in connection with obtaining approval for a manure management plan.  The bond would secure the payment of the related costs if there is a violation of the law that results in a discharge from a manure storage structure.  The surety's liability would be limited to the bond amount.

Status:  2/26/19: (H) introduced, referred to Environmental Protection

Related Bill:  HF 398 

HF 551 – Occupational Licensing.  Would create a sunset advisory committee in the General Assembly.  The bill would establish a sunset review process for state agencies that the committee would administer in which agencies would be reviewed on a 12-year schedule.  The bill does not follow the ALEC model for reviewing agencies and regulations.  The bill establishes criteria for the committee to consider in such reviews to determine whether a public need exists for an agency or its functions.  The criteria would include the efficiency and effectiveness with which the agency operates, identification of the agency's objectives, and the problems or needs that the agency was intended to address, identification of agency's activities in addition to those required or authorized by statute, an assessment of the agency's specific authority to impose any fees or penalties it imposes and to conduct any inspections that it conducts.  The bill would require the committee to report on its findings and track the implementation of its findings.

Status:  2/27/19: (H) introduced, referred to State Government

HF 610 – Guardianships and Conservatorships.  Would revise the cases in which a court could waive the bond requirement for a conservator by eliminating the option to waive the bond for conservatorships with assets of less than $25,000.  The bond could only be waived for financial institutions with Iowa trust powers or if the conservator provides an alternate form of protecting the assets that the court approves.  Existing law permits an individual's will to waive the bond requirement.

Status:  4/16/19: (S) received message from House   

Related Bill:  SF 424   

HF 663 – Scholarship Programs.  Would establish a scholarship program to provide assistance to students attending non-public schools.  The director of the Department of Management would be authorized to procure insurance against any loss in connection with the assets of the scholarship fund or require a surety bond. 

Status:  3/8/19: (H) introduced and referred to Education

Related Bill:  SF 28

HF 665 – Service Contract Providers.  Would revise the existing law for residential service contracts by subjecting motor vehicle service contracts to the law, and allowing a service company to provide other forms of security in lieu of the $100,000 bond or deposit.  A company would be allowed to obtain a reimbursement insurance policy, maintain a funded reserve account and provide a financial security deposit, or maintain a minimum net worth or stockholders' equity.  The deposit would have to be for no less than 5% of the gross consideration that the service company receives, less claims paid, for the sale of all motor vehicle service contracts and residential service contracts issued and in force in the state, but not less than $25,000. 

Status:  3/19/19: (H) Ways and Means Committee Report, recommends amendment and passage 

Related Bill:  SF 595 

HF 738 – Dog Breeders.  Would require commercial dog breeders to provide a surety bond or other security to secure the costs of care for dogs that are seized and impounded by the Department for failure to take proper care of the animals.  The financial responsibility would have to be in an amount based on the number of dogs that the breeder has, ranging from $5,000 to $50,000. 

Status:  3/19/19: (H) in Ways and Means; subcommittee assignments

HF 747 – Service Contract Providers.  Would revise the existing law for residential service contracts by subjecting motor vehicle service contracts to the law, and allowing a service company to provide other forms of security in lieu of the $100,000 bond or deposit.  A company would be allowed to obtain a reimbursement insurance policy, maintain a funded reserve account and provide a financial security deposit, or maintain a minimum net worth or stockholders' equity.  The deposit would have to be for no less than 5% of the gross consideration that the service company receives, less claims paid, for the sale of all motor vehicle service contracts and residential service contracts issued and in force in the state, but not less than $25,000. 

Status:  4/16/19: (H) Fiscal Note  

Related Bills:  HF 665, SF 595 

HF 748 – Sports Betting.  Would authorize gambling companies to conduct sports betting in the state.  The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations.

Status:  3/25/19: (H) introduced, placed on Ways and Means calendar  

Related Bill:  SF 366  

SF 28 – Scholarship Programs.  Would establish a scholarship program to provide assistance to students attending non-public schools.  The director of the Department of Management would be authorized to procure insurance against any loss in connection with the assets of the scholarship fund or require a surety bond. 

Status:  1/17/19: (S) in Education; subcommittee assignments: Cournoyer, Quirmbach and Zaun

SF 142 – Fidelity Bonds; Background Checks.  Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made.  The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.

Status:  2/5/19: (S) in Labor and Business Relations; subcommittee assignments: Schultz, Bisignano and Koelker  

Related Bills:  HF 64, HF 163 

SF 268 – Travel Trailer Dealers.  Would increase the amount of the bond required for travel trailer dealers from $25,000 to $75,000.

Status:  4/11/19: (S) HF 391 substituted. Withdrawn.   

Related Bill:  HF 391

SF 361 – Wind Energy Facilities - Decommissioning.  Would establish requirements for siting and operating wind energy conversion facilities.  The owner of the proposed facility would have to file a decommissioning plan with the county and any applicable cities where the proposed facility will be located, along with a bond or irrevocable letter of credit in an amount sufficient to cover the costs of removal of the facility.  Public utilities would be exempt from this requirement.

Status:  2/27/19: (S) in Commerce: Passed subcommittee with amendment. 

SF 366 – Sports Betting.  Would authorize gambling companies to conduct sports betting in the state.  The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations.

Status:  4/4/19: (S) in Ways and Means. Subcommittee recommends amendment and passage   

Related Bill:  HF 648

SF 390 – Fidelity Bonds; Background Checks.  Would prohibit an employer or employment agency from inquiring about an applicant's criminal record until he or she is interviewed, or a conditional job offer has been made.  The bill would make an exception to this if the position requires the applicant to obtain a fidelity bond or an equivalent bond and a criminal conviction would disqualify the applicant from obtaining the bond.

Status:  3/5/19: (S) subcommittee recommends amendment and passage 

Related Bills:  HF 64, HF 163, HF 472, SF 142

SF 424 – Guardianships and Conservatorships.  Would revise the cases in which a court could waive the bond requirement for a conservator by eliminating the option to waive the bond for conservatorships with assets of less than $25,000.  The bond could only be waived for financial institutions with Iowa trust powers or if the conservator provides an alternate form of protecting the assets that the court approves.  Existing law permits an individual's will to waive the bond requirement.

Status:  4/10/19: (S) substituted HF 610; withdrawn from further consideration  

Related Bill:  HSB 22 

SF 435 – Travel Trailer Dealers.  Would eliminate an exemption for motor vehicle manufacturers, distributors, wholesalers, and dealers from the existing law's requirement for travel trailer dealers to post a $25,000 bond.  The bill would also expand the existing law's licensing and bond requirements for travel trailer dealers to apply to all towable recreational vehicle dealers.

Status:  4/11/19: (H) placed on calendar under unfinished business    

SF 456 – Home Improvement Contractors.  Would require any contractor, prior to entering into a home improvement contract in Iowa, to file with the Division of Labor Services of the Department of Workforce Development a $75,000 surety bond.  The bond would be for the benefit of any person damaged by the contractor's breach of contract or a violation of the law, regardless of whether the person has a direct cause of action.  Any person so damaged may bring suit directly on the bond without assignment, and may recover from bond proceeds actual damages, court costs, and reasonable attorney fees.  The attorney general may make a direct claim on the bond or bring an action in equity on behalf of the state to recover bond proceeds for persons suffering damage.  Priority for payment shall be based on the time of filing a notice with the Division, except that any claim or action by the attorney general shall take precedence over all other claims on the bond.

Status:  3/4/19: (S) introduced, referred to Judiciary; subcommittee assignments 

SF 547 – Scholarship Programs.  Would establish a scholarship program to provide assistance to students attending non-public schools.  The director of the Department of Management would be authorized to procure insurance against any loss in connection with the assets of the scholarship fund or require a surety bond. 

Status:  3/21/19: (S) in Appropriations; fiscal note  

Related Bill:  SF 28

SF 595 – Service Contract Providers.  Would revise the existing law for residential service contracts by subjecting motor vehicle service contracts to the law, and allowing a service company to provide other forms of security in lieu of the $100,000 bond or deposit.  A company would be allowed to obtain a reimbursement insurance policy, maintain a funded reserve account and provide a financial security deposit, or maintain a minimum net worth or stockholders' equity.  The deposit would have to be for no less than 5% of the gross consideration that the service company receives, less claims paid, for the sale of all motor vehicle service contracts and residential service contracts issued and in force in the state, but not less than $25,000. 

Status:  4/15/19: (S) reported out of Ways and Means Committee as SF 619   

Related Bill:  HF 665

SF 617 – Sports Wagering.  Would authorize gambling companies to conduct sports betting in the state.  The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations. 

Status:  4/17/19: (S) Fiscal Note; revised Fiscal Note. Amendments S-3176 and 3182 filed and adopted. Passed Senate. Immediate message.

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

Status:  4/16/19: (S) in Ways and Means. Fiscal Note. Amendment S-3165 filed.

Related Bill:  HF 6655

SSB 1242 – Guardians and Conservators.  Would permit conservators to furnish an alternative asset protection plan in lieu of furnishing a bond.  The bill provides that guardians only would be required to post a bond if the court requires it for good cause. 

Status:  3/7/19: (S) introduced and referred to Judiciary. Subcommittee assignments.  

CONTRACT SURETY   

HSB 2 – Construction Manager; Design-Build.  Would allow state and local governments, other than the Department of Transportation, to use the design‑build or construction manager at‑risk procurement methods for public buildings, infrastructure, and facility projects.  For design‑build contracts, the request for proposals would have to contain requirements for performance and payment bonds and insurance, as well as any available ratings for them.  Bid security would be required to be furnished with the design‑build proposal.

Status:  2/11/19: (H) subcommittee meeting held  

HF 28 – Prevailing Wage.  Would require the payment of prevailing wages on public improvement projects exceeding $25,000.  The bill would impose penalties for any extra project costs on sureties resulting from the contractor's or subcontractor's failure to comply with the wage requirements.  The performance bond would have to secure payment of the wages.  The bill also provides for contract termination, debarment, and financial penalties on contractors and subcontractors for violations of the prevailing wage requirements.  Workers would be given a private right of action against the contractor or subcontractor.

Status:  1/22/19: (H) in Labor. Subcommittee assigned: Grassley, Dolecheck and Hunter

SSB 1213 – Bid Bonds; Construction Manager; Design-Build; Payment Bonds.  Would allow state and local governments, other than the Department of Transportation, to use the design-build or construction manager at-risk procurement methods for public buildings, infrastructure, and facility projects.  For design-build contracts, the request for proposals would have to contain requirements for performance and payment bonds and insurance, as well as any available ratings for them.  Bid security would be required to be furnished with the design-build proposal.

Status:  2/27/19: (S) in State Government; Subcommittee meeting 

Related Bill:  HSB 2   

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

COMMERCIAL SURETY 

COMMERCIAL SURETY 

NEW LAW:  HB 199 – Oil and Gas Wells.  Would change the required bonding amounts for oil and gas wells.  The bill would eliminate the current amounts required for individual shallow wells to secure plugging them, which is based on depth and ranges from $500 to $8,000.  For new permits, the bill provides that the bond would have to be for $2 per foot of true vertical well depth.  The bill also would eliminate the different blanket bond amounts for qualified and nonqualified shallow well operators.  Currently, the blanket bond for qualified shallow well operators must be in amount ranging from $10,000 to $100,000 based on the number of wells that are covered.  For nonqualified well operators, the bond amount ranges from $50,000 to $100,000 based on the number of wells covered.  For all shallow wells, the blanket bond would have to be in amount ranging from $20,000 to $100,000 based on the number of wells covered.  The bill would establish procedures for well operators to adjust their bonds to meet the requirements set forth in the bill.

Status:  3/18/19: signed by the Governor; effective 90 days after adjournment

NEW LAW:  HB 285 – Consumer Loan Companies.  Would require consumer loan companies to post a license bond or other security for $100,000 if the licensee is privately held and for $250,000 if the license is publicly traded.  The bond would secure the recovery of expenses, fines, and fees levied or imposed against the licensee, and for losses or damages that the Commissioner determines are incurred by any customer as a result of the licensee's failure to comply with the requirements of the law.  The bill would limit the surety's aggregate liability to the bond amount.

Status:  3/26/19: signed by the Governor; Act No. 120  

NEW LAW:  HB 386 – Insurance Innovation.  Would create an application process for admitting companies to the regulatory sandbox to permit the company to beta test an insurance innovation under a limited no-action letter.  The bill would require companies seeking entry into a sandbox to provide a statement that the company has at least $25,000 available to guarantee its financial stability.  The company could meet this requirement by posting a surety bond or other security.

Status:  3/26/19: signed by the Governor; Act No. 147

NEW LAW:  SB 32 – Water Well Drillers.  Would establish certification requirements for water well driller assistants.  An assistant would be allowed to work under the surety bond of the supervising certified water well driller, or must provide proof that the assistant has obtained their own bond and insurance.  Current law requires water well drillers to post a $5,000 bond and maintain a liability insurance policy. 

Status:  3/11/19: signed by the Governor; Act No. 4; effective 90 days after adjournment  

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

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

NEW LAW:  SB 153 – Grain Dealers and Grain Warehouses.  Would revise the amount of the bond required for grain dealers and grain warehouse operators.  Current law requires warehouse operators to post a bond for 25-cents per bushel of the total maximum bushel capacity of the warehouse, or $25,000, whichever is greater.  The maximum bond amount is $1 million.  The bill would require the bond for grain warehouse operators to be equal to 10% of the aggregate dollar value of the grain deposited in the grain warehouse operator's most recently completed fiscal year; or the amount of grain estimated to be deposited in the operator's warehouse during the current fiscal year if no records of the previous year are available.  The minimum bond amount would be $50,000 and the maximum bond amount would be $1 million.  The bill would increase the minimum bond amount for grain dealers from $25,000 to $50,000.

Status:  3/25/19: signed by the Governor; effective 8/1/19

CONTRACT SURETY 

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

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

COMMERCIAL SURETY 

HB 746 – Credit Repair Businesses.  Would require credit repair businesses to be licensed and to meet the surety bond requirements in the existing financial institutions law.  The bill would require the bond to be in an amount equal to 100 times the standard fee that the business charges; $50,000 minimum, $75,000 maximum.  Direct actions against the bond would be permitted, but the surety's liability would be limited to the bond amount.

Status:  3/6/19: (H) in Economic Matters; hearing held 

Related Bill:  SB 873  

HB 765 – Right-of-Way Permits.  Would require a project owner for a transportation project for railroad using a magnetic levitation propulsion system to provide to each governing body of an affected county a bond in connection with obtaining access to the state-owned right of way and state-owned property.  The affected counties would determine the bond amount.  The bond would be conditioned on the project owner covering any future liability for damage to land or infrastructure and damages related to the project's failure.

Status:  2/28/19: (H) in Environment and Transportation; hearing held 

Related Bill:  SB 914

HB 1065 – Receivership.  Would adopt the Uniform Commercial Receivership Act, which provides that the court would be authorized to require a receiver to post a bond or other security.  The court also could authorize a receiver to act without posting a bond or other security or to act prior to posting it.  The bond or other security would be conditioned on the faithful performance of the receiver's duties.  The court would determine the amount required.

Status:  4/4/19: (H) returned from Senate, passed   

Related Bill:  SB 695

SB 22 – Third Party Administrators.  Would subject third party administrators (TPAs) for life insurance plans to the existing law for TPAs for all insurance benefit plans.  Current law requires a bond in an amount equal to 10% of the average amount of money that the TPA handles at any one time for all plans administered; $5,000 minimum, $500,000 maximum.

COMMERCIAL SURETY 

SB 40 – Occupational Regulations.  Would establish procedures for determining whether an occupational regulation is the least restrictive form of regulation to protect consumers.  The Michigan Law Review Commission would be charged with reviewing new legislation that proposes to create or amend an occupational regulation to determine whether it would meet this standard.  Bonding or insurance would be considered among the more restrictive forms of regulation.  There is a rebuttable presumption that market competition and private remedies are sufficient to protect consumers.  The Commission would also have to review 20% of existing occupational regulations annually to create a 5-year review process to review all such regulations.  The Commission would have to report annually with recommendations for legislation that either repeals an occupational regulation, converts it to a less restrictive form, or instructs the relevant licensing board or agency to revise the regulations to implement a less restrictive regulation.  The bill is based on the ALEC model act.

Status:  1/22/19: (S) introduced; referred to Regulatory Reform

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

COMMERCIAL SURETY

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

Status:  4/3/19: (H) in Ways and Means; authors added

Related Bill:  SF 8

HF 983 – Election Recounts.  Would require candidates defeated in an election using ranked choice voting who request a recount to post a bond or other security in an amount that would secure the payment of the costs of the recount.
Status:  2/25/19: (H) in Government Operations, Subcommittee on Elections; author added - Hunt

HF 1541 – Child Care Providers.  Would require child care providers to post a minimum $100,000 surety bond if they receive child care assistance program funds from the state in an amount exceeding $250,000 during the previous calendar year.  The bill would require the bond to allow for recovery of costs and fees when filing a claim against the bond.

Status:  3/14/19: (H) in Early Childhood Finance and Policy Division; author added - Robbins

Related Bill:  SF 1846

HF 1603 – Election Recounts.  Would require candidates defeated in an election using ranked choice voting who request a recount to post a bond or other security in an amount that would secure the payment of the costs of the recount.

Status:  3/28/19: (H) referred by Chair to State Government Finance Division

Related Bills:  HF 983, SF 2424 

HF 1718 – Wholesale Drug Distributors.  Would require wholesale drug distributors that are not government owned and operated to post a $100,000 license bond, unless the distributor has $10 million or less in annual gross receipts, in which case a $25,000 would be required.  The bill provides that evidence of a bond being posted in another state would be accepted in lieu of posting a bond.  The bond would secure the payment of civil penalties.

Status:  3/18/19: (H) referred to Health and Human Services Finance Division 

HF 1851 – Fuel Distributors.  Would repeal the bond required under existing law for fuel distributors and special fuel dealers.  Current law requires distributors and dealers to post a bond in an amount that the Commissioner of Revenue determines that is conditioned on the payment of all taxes, fees, penalties, and interest.  Distributors and dealers that meet the financial requirements in the law can obtain an exemption from the bond requirement.

Status:  2/28/19: (H) introduction and first reading, referred to Taxes

Related Bill:  SF 1896

HF 2054 – Postsecondary Educational Institutions.  Would revise bond requirement for new postsecondary education institutions with conditional approval to grant degrees to require them to post a bond equal to 10% of the net revenue from tuition and fees in the registered institution's prior fiscal year.  The minimum bond amount would be $10,000.  Under current law, a bond or irrevocable letter of credit in an amount ranging from $10,000 to $250,000 only is required when the institution fails to meet minimum financial standards from the U.S. Department of Education.  The proposed bond requirement would be in addition to the existing requirement for schools that do not meet the financial standards.

Status:  3/14/19: (H) second reading

Related Bill:  SF 2023 

HF 2184 – Personal Care Assistants.  Provides that the surety bond and the fidelity bond required for personal care assistance providers would have to be for $20,000 per location.  Assisted living centers would be required to post a bond if they manage resident funds.

Status:  3/27/19: (H) in Health and Human Services Finance Division; author added  

Related Bill:  SF 2302  

HF 2302 – White-Tailed Deer Owners.  Would require owners of white-tailed deer to obtain a form of financial responsibility in connection with registering for possessing them.  The permit applicant could obtain a bond or insurance in an amount that the Board of Animal Health would determine or demonstrate a net worth of at least $50,000.

Status:  4/1/19: (H) motion to recall and re-refer prevailed; re-referred to Agriculture and Food Finance and Policy Division  

HF 2394 – Occupational Licensing.  Would prohibit a person from being disqualified from pursuing a lawful occupation only because of the person's criminal record.  Each person would have to be given individual consideration based on the guidelines set forth in the bill.  State license authorities also would be prohibited from using ambiguous terms such as "moral turpitude" and "good moral character."  The bill would prohibit state licensing authorities from considering certain crimes on a person's criminal record.  The bill would allow a person with a criminal record to petition a licensing authority to determine whether the criminal record would disqualify the person from obtaining state recognition to practice the occupation.

Status:  3/11/19: (H) introduced and referred to Health and Human Services Policy 

HF 2591 – Barber Schools.  Would repeal the existing state law for barbers, cosmetologists, and barber schools, and instead would authorize municipalities to regulate these entities.  As part of this change, the $25,000 barber school bond would be eliminated.

Status:  3/18/19: (H) introduced and referred to Government Operations  

Related Bill:  SF 2623

HF 2694 – Child Care Providers.  Would require child care providers to post a minimum $100,000 surety bond if they receive child care assistance program funds from the state in an amount exceeding $250,000 during the previous calendar year.  The bill would require the bond to allow for recovery of costs and fees when filing a claim against the bond.

Status:  3/25/19: (H) referred to Judiciary Finance and Civil Law Division 

Related Bills:  HF 2732, SF 2738  

HF 2732 – Child Care Providers.  Would require child care providers to post a minimum $100,000 surety bond if they receive child care assistance program funds from the state in an amount exceeding $250,000 during the previous calendar year.  The bill would require the bond to allow for recovery of costs and fees when filing a claim against the bond.

Status:  4/3/19: (H) in Health and Human Services Finance Division; author added 

Related Bills:  HF 2694, SF 2738 

SF 4 – Medicaid - DMEPOS and Child Care Providers.  Would revise the claim provisions for the bond required for durable medical equipment providers and suppliers participating in Medicaid to require the bond to allow for recovery of the entire value of the bond for up to five years from the date of submission of a claim for a medical assistance payment, if the enrolled provider violates the law or regulations, regardless of the amount of the actual loss.  The bill would also require child care providers to post a surety bond for an initial authorization to receive child care assistance program funds from the State.  The amount of the bond is not specified.  The bond would only be required at the renewal of the provider's authorization if it received more than $100,000 in payments from the program in the previous calendar year.  The bill provides that the bond would allow for recovery of costs and fees when filing a claim against the bond.

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

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

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

Related Bill:  HF 90 

SF 1846 – Child Care Providers.  Would require child care providers to post a minimum $100,000 surety bond if they receive child care assistance program funds from the state in an amount exceeding $250,000 during the previous calendar year.  The bill would require the bond to allow for recovery of costs and fees when filing a claim against the bond.

Status:  3/11/19: (S) withdrawn from Family Care and Aging and re-referred to Human Services Reform Finance and Policy 

Related Bill:  HF 1541 

SF 1896 – Fuel Distributors.  Would repeal the bond required under existing law for fuel distributors and special fuel dealers.  Current law requires distributors and dealers to post a bond in an amount that the Commissioner of Revenue determines that is conditioned on the payment of all taxes, fees, penalties, and interest.  Distributors and dealers that meet the financial requirements in the law can obtain an exemption from the bond requirement.

Status:  2/28/19: (S) introduction and first reading; referred to Taxes 

Related Bill:  HF 1851

SF 2023 – Postsecondary Educational Institutions.  Would revise bond requirement for new postsecondary education institutions with conditional approval to grant degrees to require them to post a bond equal to 10% of the net revenue from tuition and fees in the registered institution's prior fiscal year.  The minimum bond amount would be $10,000.  Under current law, a bond or irrevocable letter of credit in an amount ranging from $10,000 to $250,000 only is required when the institution fails to meet minimum financial standards from the U.S. Department of Education.  The proposed bond requirement would be in addition to the existing requirement for schools that do not meet the financial standards.

Status:  3/4/19: (S) introduction and first reading; referred to Higher Education Finance and Policy 

Related Bill:  HF 2054 

SF 2169 – Wholesale Drug Distributors.  Would require wholesale drug distributors that are not government owned and operated to post a $100,000 license bond, unless the distributor has $10 million or less in annual gross receipts, in which case a $25,000 would be required.  The bill provides that evidence of a bond being posted in another state would be accepted in lieu of posting a bond.  The bond would secure the payment of civil penalties.

Status:  3/7/19: (S) introduction and first reading; referred to Health and Human Services Finance and Policy  

Related Bill:  HF 1718 

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

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

Related Bill:  HF 2184  

SF 2424 – Election Recounts.  Would require candidates defeated in an election using ranked choice voting who request a recount to post a bond or other security in an amount that would secure the payment of the costs of the recount.

Status:  3/13/19: (S) introduction and first reading; referred to State Government Finance and Policy and Elections 

Related Bill:  HF 983  

SF 2623 – Barber Schools.  Would repeal the existing state law for barbers, cosmetologists, and barber schools, and instead would authorize municipalities to regulate these entities.  As part of this change, the $25,000 barber school bond would be eliminated.

Status:  3/21/19: (S) introduction and first reading; referred to State Government Finance and Policy and Elections  

Related Bill:  HF 2591

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

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

Related Bill:  SF 2686

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

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

Related Bill:  SF 2685  

SF 2738 – Child Care Providers.  Would require child care providers to post a minimum $100,000 surety bond if they receive child care assistance program funds from the state in an amount exceeding $250,000 during the previous calendar year.  The bill would require the bond to allow for recovery of costs and fees when filing a claim against the bond.

Status:  3/28/19: (S) introduction and first reading; referred to Human Services Reform Finance and Policy 

Related Bills:  HF 2694, HF 2732  

CONTRACT SURETY

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

COMMERCIAL SURETY 

COMMERCIAL SURETY 

HB 34 – Scholarship Programs.  Would establish the Missouri Empowerment Scholarship Accounts Program to provide scholarship funds.  Educational assistance organizations would have to post a surety bond or file financial information demonstrating their ability to repay the funds if they receive more than $50,000 in scholarship funds.  The amount of the bond would have to be equal to the aggregate amount of scholarship funds expected to be received during the school year.  Scholarship account holders also would have to post bonds.

Status:  1/10/19: (H) read second time

Related Bills:  HB 478, SB 47 and SB 160

HB 103 – Public Officials.  Would require the Commissioner of Administration to obtain a blanket bond or crime insurance policy instead of individual bonds for state-compensated employees in the judiciary.  The Commissioner could require officers, employees, or agents of the state to post an individual bond if they have responsibility for or access to any of the state's money or property and are not otherwise required to post a bond.  The bill would allow the Commissioner to assume the risk in lieu of obtaining bonds.

Status:  1/10/19: (H) read second time

HB 204 – Confiscated Animals.  Would revise the bond amount required for owners or custodians of a confiscated animal.  Currently, the bond or other security must be sufficient to provide for the animal's care and keeping for at least 30 days.  The bill would require the bond or other security to be in an amount that is sufficient for the animal's care and keeping and that is consistent with the fair market costs of boarding the animal in an appropriate retail facility.

Status:  3/26/19: (S) second read and referred to Agriculture, Food Production and Outdoor Resources     

Related Bill:  SB 115

HB 215 – Property Assessed Clean Energy (PACE) Program.  Would revise existing law for the PACE program, which finances energy efficiency improvements or renewable energy improvements.  Contractors participating in this program would have to maintain any permits, licenses, or registrations required to do business in the jurisdiction where it operates, and maintain bonding and insurance coverage in the minimum amounts determined by the Clean Energy Development Board, or any higher amounts that are required in the jurisdiction where the contractor is licensed or registered. 

Status:  4/4/19: (H) from Rules - Legislative Oversight: reported Do pass    

Related Bill:  SB 173  

HB 326 – Mechanical Contractors.  Would enact the Missouri Statewide Mechanical Contractor Licensing Act and create the Office of Mechanical Contractors within the Division of Professional Regulation.  The bill would require applicants for this license to provide proof of liability insurance in the amount of $500,000 and post a bond with each political subdivision in which work will be performed, as required by that political subdivision.  Political subdivisions would not be prohibited from establishing their own local mechanical contractor's license, but would recognize a statewide license in lieu of a local license for the purposes of performing contracting work or obtaining permits to perform work within such political subdivision.  The license term would be biennial. 

Status:  3/28/19: (H) from Rules - Administrative Oversight: Do pass  

HB 472 – Occupational Regulations.  Would prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation requiring a license solely, or in part, due to a prior conviction for a crime, unless the crime directly relates to the duties and responsibilities of the licensed occupation.  The bill would require State licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify an applicant from obtaining a license.  State license authorities would be prohibited from using terms such as "moral turpitude" and "good character."  They also could not consider an applicant's arrests without a conviction.  The bill would allow a person with a criminal record to petition a licensing authority to determine whether the criminal record would disqualify the person from obtaining the license. 

Status:  4/4/19: (S) read second time and referred to Professional Registrations  

Related Bills:  HB 564, SB 251   

HB 478 – Scholarship Programs.  Would establish the Missouri Empowerment Scholarship Accounts Program to provide scholarship funds.  Educational assistance organizations would have to post a surety bond or file financial information demonstrating their ability to repay the funds if they receive more than $50,000 in scholarship funds.  The amount of the bond would have to be equal to the aggregate amount of scholarship funds expected to be received during the school year.  Scholarship account holders also would have to post bonds.

Status:  2/25/19: (H) reported Do Pass   

Related Bills:  HB 34, SB 47 and SB 160

HB 495 – Notaries Public.  Would revise the existing law's bond requirement for notaries public to require the surety to report all claims to the Secretary of State.  The bill provides that the surety's liability only would be for damages that result from the notary's negligence, intentional violation of law, or official misconduct in relation to a notarization during the bond term.  The surety's aggregate liability would be limited to the bond amount.

Status:  3/6/19: (H) to Rules - Administrative Oversight    

Related Bill:  SB 140  

HB 519 – Litigation Financiers.  Would require litigation financiers to register and post a $50,000 surety bond.  Such businesses provide a non-recourse transaction in which financing is provided to a consumer in return for assigning a contingent right to the financier to receive an amount of the potential proceeds of the consumer's judgment, award, settlement, or verdict obtained with respect to the consumer's legal claim.

Status:  3/28/19: (H) from Rules - Administrative Oversight: Do pass    

HB 550 – Consumer Legal Funding Companies.  Would require consumer legal funding companies to register, and they could be required to post a $50,000 surety bond or letter of credit.  Such businesses provide a non-recourse transaction in which financing is provided to a consumer in return for assigning a contingent right to receive an amount of the potential proceeds of the consumer's judgment, award, settlement, or verdict from the consumer's legal claim. 

Status:  2/19/19: (H) in Judiciary; public hearing completed  

HB 564 – Occupational Regulations.  Would prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation requiring a license solely, or in part, due to a prior conviction for a crime, unless the crime directly relates to the duties and responsibilities of the licensed occupation.  The bill would require State licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify an applicant from obtaining a license. State license authorities would be prohibited from using terms such as "moral turpitude" and "good character."  They also could not consider an applicant's arrests without a conviction.  The bill would allow a person with a criminal record to petition a licensing authority to determine whether the criminal record would disqualify the person from obtaining the license.  

Status:  4/2/19: (S) in Government Reform; public hearing held       

Related Bill:  SB 251   

HB 626 – Leasing and Rental Companies.  Would require a leasing or rental company for motor vehicles, trailers, boats, or outboard motors to post a $100,000 bond or letter of credit.  The bond would be conditioned on compliance with the applicable laws, and it would have to indemnify persons for any loss sustained due to the licensee's acts when these acts constitute grounds for the suspension or revocation of the license.  The surety's aggregate liability would be limited to the bond amount. 

Status:  4/4/19: (H) read third time; passed

HB 1111 – Cemetery Operators.  Would eliminate the state law for licensing cemetery operators so cemeteries would be regulated by political subdivisions.  This would eliminate the requirement for cemetery operators to establish a trust fund or post a surety bond.  Cemetery operators would be required to meet the trust fund requirements for political subdivisions as provided under existing law. 

Status:  2/28/19: (H) read second time  

SB 115 – Confiscated Animals.  Would revise the bond amount required for owners or custodians of a confiscated animal.  Currently, the bond or other security must be sufficient to provide for the animal's care and keeping for at least 30 days.  The bill would require the bond or other security to be in an amount that is sufficient for the animal's care and keeping and that is consistent with the fair market costs of boarding the animal in an appropriate retail facility.

Status:  2/25/19: (S) voted Do Pass by Agriculture, Food Production and Outdoor Resources  

Related Bill:  HB 204

SB 140 – Notaries Public.  Would revise the existing law's bond requirement for notaries public to require the surety to report all claims to the Secretary of State.  The bill provides that the surety's liability only would be for damages that result from the notary's negligence, intentional violation of law, or official misconduct in relation to a notarization during the bond term.  The surety's aggregate liability would be limited to the bond amount.

Status:  3/26/19: (S) Committee Substitute voted Do Pass by General Laws   

Related Bill:  HB 495

SB 160 – Scholarship Programs.  Would establish the Missouri Empowerment Scholarship Accounts Program to provide scholarship funds.  Educational assistance organizations would have to post a surety bond or file financial information demonstrating their ability to repay the funds if they receive more than $50,000 in scholarship funds.  The amount of the bond would have to be equal to the aggregate amount of scholarship funds expected to be received during the school year.  Scholarship account holders also would have to post bonds.

Status:  4/8/19: (S) on Informal Calendar, Senate Bills for Perfection      

Related Bills:  HB 34, HB 478 and SB 47

SB 173 – Property Assessed Clean Energy (PACE) Program.  Would revise existing law for the PACE program, which finances energy efficiency improvements or renewable energy improvements.  Contractors participating in this program would have to maintain any permits, licenses, or registrations required to do business in the jurisdiction where it operates, and maintain bonding and insurance coverage in the minimum amounts determined by the Clean Energy Development Board, or any higher amounts that are required in the jurisdiction where the contractor is licensed or registered. 

Status:  3/13/19: (S) in Local Government and Elections; hearing conducted   

Related Bill:  HB 215

SB 251 – Occupational Regulations.  Would prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation requiring a license solely, or in part, due to a prior conviction for a crime, unless the crime directly relates to the duties and responsibilities of the licensed occupation.  The bill would require State licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify an applicant from obtaining a license.  State license authorities would be prohibited from using terms such as "moral turpitude" and "good character."  They also could not consider an applicant's arrests without a conviction.  The bill would allow a person with a criminal record to petition a licensing authority to determine whether the criminal record would disqualify the person from obtaining the license. 

Status:  2/25/19: (S) hearing conducted in Professional Registration     

Related Bill:  HB 564

SB 258 – Occupational Regulations.  Would require state and political subdivision licensing authorities to revise their existing licensing requirements to explicitly list the specific criminal offenses, civil penalties or judgments, or disciplinary actions taken by other licensing authorities that may disqualify an applicant from obtaining a license.  The bill provides that certain violent offenses could be considered if the applicant has been convicted of them.  The bill also provides that the requirements concerning criminal convictions only would apply to the professions specified in the bill.  The bill also would revise several licensing and registration requirements to eliminate references to moral character and moral turpitude. 

Status:  2/25/19: (S) hearing conducted in Professional Registration

SB 315 – Occupational Regulations.  Would prohibit political subdivisions from imposing any occupational fees or licensing regulations on a profession if the political subdivision does not already impose them on that profession as of August 28, 2019.  Political subdivisions could continue to regulate any profession or occupation that is subject to their regulations on or before that date if the occupational fees do not exceed $25 per year.  All local licensing fees would be capped at not more than $25.  However, if a state licensing authority imposes any new licensing requirements on any profession that the State did not previously regulate, political subdivisions would have to terminate any occupational fees or licensing requirements that they have in place when the State's regulations take effect.  For a profession that is subject to existing state licensing requirements, a political subdivision could not impose regulations that would add licensing requirements to the existing state licensing requirements. 

Status:  2/25/19: (S) hearing conducted in Professional Registration   

SB 376 – Mechanical Contractors.  Would enact the Missouri Statewide Mechanical Contractor Licensing Act and create the Office of Mechanical Contractors within the Division of Professional Regulation.  The bill would require applicants for this license to provide proof of liability insurance in the amount of $500,000 and post a bond with each political subdivision in which work will be performed, as required by that political subdivision.  Political subdivisions would not be prohibited from establishing their own local mechanical contractor's license, but would recognize a statewide license in lieu of a local license for the purposes of performing contracting work or obtaining permits to perform work within such political subdivision.  The license term would be biennial. 

Status:  4/8/19: (S) on Formal Calendar, Senate Bills for Perfection    

Related Bill:  HB 326

SB 484 – Litigation Financiers.  Would require litigation financiers to register and post a $50,000 surety bond.  Such businesses provide a non-recourse transaction in which financing is provided to a consumer in return for assigning a contingent right to the financier to receive an amount of the potential proceeds of the consumer's judgment, award, settlement, or verdict obtained with respect to the consumer's legal claim.

Status:  3/14/19: (S) to Small Business and Industry 

Related Bill:  HB 519  

SB 504 – Consumer Legal Funding Companies.  Would require consumer legal funding companies to register, and they could be required to post a $50,000 surety bond or letter of credit.  Such businesses provide a non-recourse transaction in which financing is provided to a consumer in return for assigning a contingent right to receive an amount of the potential proceeds of the consumer's judgment, award, settlement, or verdict from the consumer's legal claim. 

Status:  3/14/19: (S) referred to Insurance and Banking  

Related Bill:  HB 550   

CONTRACT SURETY 

HB 91 – Retainage; Performance and/or Payment Bonds.  Provides that a subcontractor's payment under the required pay periods and reduction of retainage would be subject to the subcontractor's providing assurances of continued performance and financial responsibility to complete the required work, which could include a payment and performance bond.  Retainage would be determined in the terms of the contract. 

Status:  1/10/19: (H) read second time

HB 93 – Bonding Assistance Program.  Would create the Missouri Minority Business Loan Program, which would include a bond guarantee component.  The Department of Economic Development would have to develop a program that assists minority business enterprises through guarantees for bid, payment, and performance bonds for federal, state, and local contracts.  The Department could secure letters of credit to guarantee the bonds.  The bill would provide for up to $5 million in funding for the program. 

Status:  3/25/19: (H) in Economic Development; public hearing completed

HB 102 – Bonding Assistance Program.  Would create the Missouri Minority Business Loan Program, which would include a bond guarantee component.  The Department of Economic Development would have to develop a program that assists minority business enterprises through guarantees for bid, payment, and performance bonds for federal, state, and local contracts.  The Department could secure letters of credit to guarantee the bonds.  The bill would provide for up to $5 million in funding for the program. 

Status:  1/10/19: (H) read second time

HB 104 – Individual Sureties.  Would create the Bonding Review Board to determine if individual sureties have sufficient financial assets and to rate providers of individual sureties.  Individual sureties would be required to register with the Board.  The Board would establish procedures for creating and assigning credit ratings for any individual, partnership, or corporation that markets or provides individual sureties to satisfy bonding requirements. 

Status:  1/10/19: (H) read second time

HB 490 – Payment and Performance Bonds.  Would address a Missouri Supreme Court case, which held that the bonding requirements of the Little Miller Act are not applicable when a public owner hires a consultant or other third party to develop public property on its behalf.  Under such arrangements the consultant or other third party, the public owner does not directly hire a general contractor.  The court found that the consultant did not "provide" construction services, but merely "arranged" for them.  The bill clarifies that when a public contracting entity uses such private entities for assistance with its duties, the resulting project still is a public works project that must be bonded. 

Status:  1/23/19: (H) referred to Insurance Policy
Related Bill:  SB 167

HB 791 – Payment and/or Performance Bonds.  Legislation from the American Subcontractors Association (ASA) that would address a Missouri Supreme Court case, which held that the bonding requirements of the Little Miller Act are not applicable when a public owner hires a consultant or other third party to develop public property on its behalf.  Under such arrangements the consultant or other third party, the public owner does not directly hire a general contractor.  The court found that the consultant did not "provide" construction services, but merely "arranged" for them.  The bill is similar to SB 167/HB 490, which clarifies that when a public contracting entity uses such private entities for assistance with its duties, the resulting project still is a public works project that must be bonded.  HB 791 contains additional language that the ASA believes will address any case where a private entity arranges or provides construction services for the public owner to deliver a public project. 

Status:  4/3/19: (H) referred to Rules - Legislative Oversight   

SB 167 – Payment and Performance Bonds.  Would address a Missouri Supreme Court case, which held that the bonding requirements of the Little Miller Act are not applicable when a public owner hires a consultant or other third party to develop public property on its behalf.  Under such arrangements the consultant or other third party, the public owner does not directly hire a general contractor.  The court found that the consultant did not "provide" construction services, but merely "arranged" for them.  The bill clarifies that when a public contracting entity uses such private entities for assistance with its duties, the resulting project still is a public works project that must be bonded. 

Status:  4/3/19: (H) hearing conducted in Insurance Policy      
Related Bill:  HB 490  

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

COMMERCIAL SURETY 

NEW LAW:  HB 105 – Occupational Licensing.  Would revise an existing state license reciprocity process for out of state license applicants to provide that an occupational licensing board would be required to issue the license to qualified persons who have a substantially similar license from another state.  Current law provides that the occupational licensing board has discretion to grant the license to the out of state applicant. 

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

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

NEW LAW:  HB 119 – Hazard Reduction Agreement Program.  Would revise the amount of the bond required under a fire hazard reduction agreement.  Currently, either the person conducting the work or the purchaser is required to post a bond in an amount not to exceed $6 for each 1,000 board feet.  The bill provides that the bond amount may not exceed $12 for each 1,000 board feet, up to 100,000 board feet, or $6 for each additional 1,000 board feet over 100,000 board feet (log scale) or the equivalent if forest products other than logs are cut. 

Status:  2/26/19: signed by the Governor; effective upon passage   

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

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

SB 73 – Commodity Dealers.  Would expand the definition of commodity dealer to include brokering and online transactions, and add bonding and liability requirements for commodity dealers acting as brokers.  The bill also would allow a publicly traded company to post a bond for a subsidiary company.  If the company posts the maximum amount of bond, the company or subsidiary may request the Department waive the requirement to file a complete financial statement for a licensing year.  The bill also provides that a commodity dealer acting as a broker and contracting or otherwise conducting business with a commodity dealer licensed in Montana would have to post the minimum amount of bond ($20,000).  A commodity dealer acting as a broker and contracting or otherwise conducting business with a buyer not licensed as a commodity dealer in Montana would be required to post the maximum amount of bond and would be held jointly liable with the buyer for failure to comply with terms of a written contract or failure to pay for a commodity purchase under an oral agreement. 

Status:  4/2/19: (H) returned to Senate with amendments   

SB 93 – Solar Energy Infrastructure - Decommissioning.  Would subject solar energy facilities to the existing remediation law for wind energy facilities, which requires a bond in an amount determined by the Department of Environmental Quality to secure the decommissioning of a facility. 

Status:  4/5/19: (H) scheduled for third reading 

SB 126 – Workers' Compensation.  Would exempt public entities that cannot be insolvent from the security requirements for self-insurers for workers' compensation plans.  Surety bonds or other security are accepted to meet the security requirements.  
Status:  4/3/19: (H) second reading not concurred  

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

Status:  4/5/19: (H) in Business and Labor; scheduled for hearing   

CONTRACT SURETY

SB 108 – Threshold; Payment and Performance Bonds.  Would increase the state bond threshold from $50,000 to $150,000, and increase the threshold for bid security on these contracts from $25,000 to $150,000.  The bill also would increase other procurement related thresholds to $150,000.  
Status:  3/19/19: (H) third reading - failed      

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

COMMERCIAL SURETY

NEW LAW:  LB 194 – Public Officials.  Would specify that the bond requirements for city council members, the city treasurer, and municipal depositories apply to cities of the first class only.  Existing law requires city council members to post a bond or obtain equivalent insurance in the amount of $1,000.  City treasurers must post a bond or insurance of at least $25,000, or the treasurer may be required to give bond for double the sum of money that the city council estimates at any time to be in the treasurer's hands.  The depository bond must be equal to the amount of the deposits in the depository institution, less the amount of insurance from the FDIC.

Status:  3/7/19: approved by the Governor; effective 3 months after adjournment    

LB 265 – Consumer Loans.  Would require lenders offering unsecured consumer loans to be licensed and to post a $50,000 bond to secure the licensee's faithful performance of its duties related to the business, and to ensure prompt payment of any judgment recovered against the licensee.  The director would be authorized to require an additional bond if the original bond is exhausted or is inadequate for any reason, including the financial condition of the licensee, or for violations of the applicable law and/or regulations.  The amount of any new or additional bond could not exceed $100,000. 

Status:  1/28/19: in Banking, Commerce and Insurance; notice of hearing for 3/12/19

LB 373 – Wind Energy Facilities - Decommissioning.  Would require county zoning regulations for a wind energy facility project to include requirements for a performance bond for each wind turbine in connection with the submission of a decommissioning plan. 

Status:  3/5/19: Brewer AM428 filed  

LB 397 – Nonparticipating Tobacco Manufacturers.  Would revise the bond requirement for nonparticipating tobacco manufacturers who do not participate in the Master Settlement Agreement to require a bond or cash deposit of $100,000, the greatest escrow amount due in the preceding 20 calendar quarters, or the greatest required annual total of quarterly escrow amounts due if the manufacturer is deemed to pose an elevated risk, whichever of these amounts is greater.  Existing law requires a $25,000 bond if the manufacturer has been listed on the state's directory of nonparticipating tobacco manufacturers, or $50,000 if the manufacturer has not been listed in the directory for at least three years. If the manufacturer has failed to make the required escrow deposits, it must post a $50,000 bond or the greatest amount of escrow deposits owed in any calendar year in Nebraska in the preceding five calendar years under existing law. 

Status:  3/25/19: placed on General File  

NEW LAW:  LB 536 – Trusts.  Would adopt the Uniform Directed Trust Act and require trust directors for such a trust to meet the bond requirements for trustees under existing law.  The Act follows the Uniform Trust Code model, and provides that a bond is only required if the court requires a bond or the terms of the trust require a bond and the court has not dispensed with it. 

Status:  3/12/19: approved by the Governor; effective 3 months after adjournment   

CONTRACT SURETY

LB 208 – P3s.  Would authorize state and local governments to use P3s for public infrastructure projects to provide broadband services, Internet services, telecommunications services, or video services.  The bill does not specify any procurement requirements. 

Status:  1/25/19: in Transportation and Telecommunications; notice of hearing for 2/4/19    

LB 543 – Payment and/or Performance Bonds.  Would revise the existing law concerning payment bonds for public works contracts to prohibit any material or rental equipment from being purchased or contracted for and any work beginning pursuant to any contract until the payment bond or bonds are filed and approved instead of prohibiting the state from entering into the contract before the bond is filed an approved. 

Status:  2/26/19: in Government, Military and Veterans Affairs; notice of hearing for 3/7/19    

LB 616 – Construction Manager; Design-Build; Infrastructure.  Would authorize the Department of Transportation to use the build‑finance project delivery method. Under this method, a design‑builder, a construction manager, or a contractor working under any project structure allowed by law would pay for the project labor, materials, and vendors as the work is performed, and payments due from the Department are made over a period not to exceed 10 years after the date of the project's substantial completion.  The existing law for construction managers and design‑builders requires the request for proposals to include any bonding and insurance that is required by law or any additional bonding that the Department requires. 

Status:  3/19/19: Hilgers priority bill       

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

COMMERCIAL SURETY 

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

Status:  3/14/19: (A) from printer; to Health and Human Services

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

Status:  3/18/19: (A) introduced and referred to Government Affairs  

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

SB 29 – Promoters.  Would revise the existing security requirement for promoters conducting, holding or giving contests or exhibitions of unarmed combat to eliminate the other forms of security; only a bond would be acceptable.  Current law requires a $10,000 bond.

SB 30 – Employment of Offenders.  Would revise an existing law concerning a program for the employment of offenders who are committed to the Department of Corrections' custody, which includes contracting with private employers for the employment of offenders.  Under current law, the private employer must provide a surety bond, personal guarantee, or a security agreement for not less than 100% of the prorated annual amount of the contract.  The bill would require the bond or other security to be in an amount not less than 33% of the prorated annual amount of the contract, but not more than 100% of the contract amount.

Status:  2/4/19: (S) read first time and referred to Judiciary   

SB 56 – Timber Cutting.  Would revise the existing requirements to post a performance bond in connection with obtaining a timberland conversion certificate to eliminate a provision that specifies that the bond amount is based on the amount of the contract price or the value of the timber that will be cut.  Under existing law, the state forester fire warden determines the bond amount.  The bill also would change the kinds of security that are accepted so that only a surety bond, CD, or treasury note would be accepted, eliminating the use of an individual surety, a cashier's check, money order, or negotiable securities. 

Status:  2/4/19: (S) read first time and referred to Natural Resources  

SB 71 – Special Fuel Licenses.  Would require special fuel users to post a surety bond or other security in an amount not less than $25,000 in connection with entering into an agreement with the Department of Motor Vehicles for issuing and renewing special fuel user licenses.  The bill would require service providers to post a minimum $50,000 bond or other security. 

Status:  2/4/19: (S) read first time and referred to Growth and Infrastructure  

SB 86 – Countersignature.  Would eliminate any remaining countersignature requirements for insurance agents for insurance policies and bonds in existing law.  The requirements were generally repealed in 2009.  This bill would remove requirements pertaining to bonds issued in an emergency situation and the related exceptions to this requirement. 

Status:  2/4/19: (S) read first time and referred to Commerce and Labor

SB 195 – Virtual Currency Businesses.  Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Department of Business and Industry would determine based on the nature and the extent of the risks of the licensee's virtual currency business model.  The Department could require additional security for good cause.  A surety bond only could be required if it is generally available in the state for a commercially reasonable cost.  The Department could specify a tail period for the bond by regulations.  Only the Department would be permitted to make claims on the bond. 

Status:  3/14/19: (S) in Judiciary. Notice of eligibility for exemption.

SB 349 – Education Savings Accounts.  Would establish an education savings account program as part of a school choice measure.  Schools receiving $50,000 or more in funds from these accounts would have to post a surety bond in an amount equal to the funds expected to be received during the school year, or provide financial information that proves it can repay such amount. 

Status:  3/18/19: (S) referred to Education   

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

Status:  3/20/19: (S) introduced and referred to Natural Resources

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

Status:  3/21/19: (S) introduced and referred to Natural Resources 

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

Status:  3/25/19: (S) introduced and referred to Government Operations 

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

Status:  3/27/19: (S) introduced and referred to Growth and Infrastructure

CONTRACT SURETY 

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

COMMERCIAL SURETY 

HB 115 – Private Investigative Agencies.  Would specify that the license bond required for private investigative agencies, bail recovery agents, and security services would have to be for no less than $50,000.  Currently, the bond must be equal to $50,000.

Status:  3/12/19: (S) introduced (on 3/7) and referred to Executive Departments and Administration  

HB 253 – Criminal Records Checks.  Would prohibit an employer from including a question on any application for employment about whether the applicant has ever been arrested, charged with, or convicted of any crime or violation, or adjudicated as a juvenile delinquent.  This would not apply in certain cases, including when a position would require a standard fidelity bond or equivalent bond and the applicant's conviction of a crime would disqualify the applicant from obtaining the bond.

Status:  3/12/19: (S) introduced (on 3/7) and referred to Commerce  

HB 474 – Fidelity Bond - Financial Institution.  Would revise the fidelity bond requirement or state banks and credit unions to specify that the bond would have to be provided by an insurer licensed under the laws of the state; a foreign surplus lines insurer authorized to sell insurance in the state and licensed by any state, district or territory; or a person if the issuer unconditionally assents to the resolution of any claim or dispute involving the policy by a court located in the state and the personal jurisdiction of the courts located in the state in connection with any matter involving the policy.

Status:  4/1/19: (S) introduced 3/28/19 and referred to Commerce    

SB 54 – Fuel Distributors.  Would exempt fuel distributors from the bond requirement if they have complied with the law for the previous three consecutive years.  The distributor would have to provide financial statements for the previous three years and been licensed in the state as a distributor for the previous five consecutive years to qualify for an exemption.  If the distributor obtains an exemption and fails to comply with the law, the bond requirement could be re-imposed. 

Status:  3/21/19: (H) introduced on 3/20 and referred to Transportation

SB 77 – Animal Cruelty.  Provides that an arresting officer could draw funds from the bond or security posted during an appeal to secure the costs of caring for an animal that has been confiscated from a person convicted of animal cruelty as soon as the bond or security is posted. 

Status:  4/2/19: (H) in Environment and Agriculture. Public hearing: 4/17/19. Subcommittee work session: 4/23/19

SB 310 – Gaming, Video Lottery, Sports Wagering.  Would require video lottery and table gaming facilities to be licensed and provide a payment bond or other security to demonstrate the licensee's ability to pay the required license fee.  The bill also would require sports wagering operators to be licensed and post a bond in amount not less than $25,000 and not more than $500,000, based on the operator's charity payment and tax obligations.  The bond would be conditioned on compliance with the applicable sports wagering laws and regulations.  The bill also would require the director of Gaming Enforcement and his or her employees to be bonded in compliance with the existing law's requirements for public official bonds. 

Status:  4/3/19: (H) introduced and referred to Ways and Means 

CONTRACT SURETY

HB 654 – Performance Bond.  Would grant discretion to the Housing Finance Authority to require a mortgagor to furnish bonds or other security to secure the performance on contracts awarded in connection with a construction loan from the Authority for housing projects.  Current law provides that bonds or other security are required.
Status:  4/1/19: (S) introduced on 3/28/19 and referred to Commerce        

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

COMMERCIAL SURETY 

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

Status:  3/7/19: (A) reported out of Regulated Professions; referred to Appropriations 

Related Bill:  SB 1326  

AB 4832 – Temporary Help Services.  Would increase the amount of the bond required for temporary help service providers from $1,000 to $10,000.  The bill would also eliminate the waiver for the bond requirement currently available to firms that have a net worth of $100,000 or more.

AB 4860 – Electronic Notaries.  Would authorize the use of remote online notaries public to provide electronic notarizations.  The bill provides that the state treasurer could require the notary to post a bond.

Status:  1/15/19: (A) introduced and referred to Regulated Professions 

Related Bill:  SB 3147   

AB 4959 – Contractors.  Would authorize the director of the Division of Consumer Affairs to require home restoration contractors to post a performance bond in favor of an owner, lessee, tenant, or other party to a home improvement contract for home restoration.  The director would establish the bond amount through regulation.  Ten days' notice would be required for cancellation or nonrenewal of the bond.  The bond would be in addition to the insurance requirement under existing law.

Status:  3/7/19: (A) reported and referred to Appropriations  

Related Bill:  SB 1868

AB 4997 – Mortgage Servicers.  Would require mortgage servicers and persons exempt from licensure as a mortgage servicer to post a surety bond for $100,000 per office location.  The surety bond would be conditioned on performing any and all written agreements or commitments with or for the benefit of mortgagors and mortgagees, accounting for all funds received from a mortgagor or mortgagee and conducting the mortgage business in compliance with the applicable law.  The bill would permit direct actions on the bond, but the surety's aggregate liability would be limited to the bond amount.  Mortgage servicers and exempt persons also would have to post a fidelity bond in an amount determined by a formula set forth in the bill based on the amount of residential mortgage loans serviced.  The minimum fidelity bond amount would be $300,000.  The fidelity bond could have a deductible, which could not exceed $100,000 or 5% of the bond amount, whichever is greater.  The fidelity bond would cover losses arising from dishonest and fraudulent acts, embezzlement, misplacement, forgery and similar events committed by the servicer's employees.

Status:  3/25/19: (S) substituted for SB 3417; passed Senate. Passed both Houses   

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

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

SB 1868 – Contractors.  Would authorize the director of the Division of Consumer Affairs to require home restoration contractors to post a performance bond in favor of an owner, lessee, tenant, or other party to a home improvement contract for home restoration.  The director would establish the bond amount through regulation.  Ten days' notice would be required for cancellation or nonrenewal of the bond.  The bond would be in addition to the insurance requirement under existing law.

Status:  12/3/18: (S) referred to Budget and Appropriations

Related Bill:  AB 4959   

NEW LAW:  SB 2969 – Fantasy Sports Contests.  Would revise existing law for fantasy sports operators who currently must segregate participants' funds from operational funds and also must maintain a reserve account, a bond, an irrevocable letter of credit, or a combination thereof in the amount of the deposits in participants' accounts.  The bill provides that the operator could either maintain the segregated account or instead maintain the reserve account, bond, or letter of credit. 

Status:  1/31/19: approved by the Governor; P.L. 2019, c.11

SB 3147 – Electronic Notaries.  Would authorize the use of remote online notaries public to provide electronic notarizations.  The bill provides that the state treasurer could require the notary to post a bond.
Status:  10/22/18: (S) introduced; referred to Commerce
Related Bill:  AB 4860 

SB 3499 – Debt Adjusters.  Would require for-profit debt adjusters to post a license bond or other security in an amount not less than $50,000 for the first office and $25,000 for each additional office for the first 250 customers and for the first $250,000 in customer funds that the licensee holds.  The bond amount also could be increased based on the number of people for whom the debt adjuster provides services by $25,000 for each 250 additional customers and $25,000 for each additional $250,000 in customer funds that the licensee holds.  The bond would be conditioned on compliance with the law.  The bill would permit directions on the bond.  The bond would have to be in place for two years after the licensee ceases to provide services in the state.

Status:  3/4/19: (S) from Commerce with amendments; second reading

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

COMMERCIAL SURETY 

NEW LAW:  SB 41 – Medicaid Services, Fraud and Due Process.  Would permit a Medicaid provider or subcontractor to obtain the release of a payment that was suspended because the provider or subcontractor is the subject of a referral based on a determination of a credible allegation of fraud for services previously rendered if the provider or subcontractor posts a surety bond for the amount of the suspended payment.

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

SB 105 – Contractors.  Would eliminate a provision allowing trade bureaus to adopt regulations that would require a bond in an amount ranging from $500 to $1,500 in connection with obtaining a permit for any construction, installation, alteration, repair, or addition for a building or structure. 

Status:  1/16/19: (S) referred to Corporations and Transportation. Referred to Judiciary; referred to Finance  

SB 238 – Real Estate Brokers.  Would authorize the New Mexico Real Estate Commission to adopt regulations that would require a real estate broker providing residential property management services to post a surety bond of at least $100,000, conditioned to pay the actual damages suffered by property owners and tenants as a result of financial harm caused by the mismanagement, misappropriation, deceit, or embezzlement of an owner or tenant's funds deposited in a property management trust account. 

Status:  3/14/19: (H) from Commerce and Economic Development: Do pass recommendation   

SB 271 – Prescription Drugs.  Would require prescription drug manufacturers, outsourcing facilities, repackagers, and third-party logistics providers to comply with the bond requirements in existing law for nonresident pharmacies and wholesale drug distributors.  The law requires a surety bond or other security to secure payment of any administrative or judicial penalties that may be imposed, and any penalties or costs required by regulations or disciplinary action.  The bond may be waived under existing law. 

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

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

COMMERCIAL SURETY 

AB 439 – Municipal Depositories.  Would allow savings banks, savings and loan associations, and credit unions to act as depositories for public funds.  Under existing law, depositories for public funds must post a surety bond or other security in an amount the comptroller determines is sufficient to secure the public funds.

Status:  1/9/19: (A) introduced and referred to Banks  

Related Bill:  SB 1586

AB 1617 – Marijuana Retailers.  Would authorize the use of recreational marijuana and require retailers to post a surety bond in an amount equal to two months of a cultivation facility's anticipated retail marijuana excise tax that the bill would impose.
Status:  1/16/19: (A) introduced and referred to Codes     
Related Bill:  SB 1527

AB 1668 – Election Recounts.  Would require candidates and voters requesting a recount to post a bond or other security in an amount that the jurisdiction where the recount is occurring would determine to secure the costs of the recount.
Status:  1/16/19: (A) introduced and referred to Election Law 

AB 2185 – Towing Companies.  Would increase the bond amount from $5,000 to $25,000.  The bill provides that the bond amount could be increased up to $250,000 following a hearing to determine whether the bond should be increased.  An additional bond could be required for violations of the law. 

Status:  1/22/19: (A) introduced and referred to Cities

AB 2884 – Fidelity Bond.  Would prohibit commercial crime insurance policies from excluding coverage for losses that an employee caused if he or she had been convicted of a criminal offense, and the employer knew about the conviction prior to the loss and the employer had considered the factors set forth in the existing Corrections Law for determining whether to hire the person.  Violating this provision would be deemed an unfair method of competition or an unfair or deceptive act and practice. 

Status:  1/28/19: (A) introduced and referred to Insurance

SB 1527 – Marijuana Retailers.  Would authorize the use of recreational marijuana and require retailers to post a surety bond in an amount equal to two months of a cultivation facility's anticipated retail marijuana excise tax that the bill would impose.
Status:  1/15/19: (S) introduced and referred to Finance      
Related Bill:  AB 1617   

SB 1586 – Municipal Depositories.  Would allow savings banks, savings and loan associations, and credit unions to act as depositories for public funds.  Under existing law, depositories for public funds must post a surety bond or other security in an amount the comptroller determines is sufficient to secure the public funds.

Status:  1/15/19: (S) introduced and referred to Local Government  

Related Bill:  AB 439

SB 2022 – Public Vessels Carrying Passengers.  Would require public vessels to obtain a liability insurance policy or a surety bond in connection with a certificate to operate and carry passengers.  The amount of the bond or insurance policy would have to be equal to at least $1 million per occurrence for injury to or death of any person arising out of the negligent operation of the vessel.

Status:  1/18/19: (S) introduced and referred to Cultural Affairs, Tourism, Parks and Recreation

SB 2343 – Debt Collection Agencies.  Would require debt collection agencies to be licensed and post a surety bond or other security in an amount that would be based on the number of persons the licensee employs, ranging from $10,000 to $75,000.  The bond would secure the licensee's compliance with the applicable law and the payment of all costs and penalties.

Status:  1/24/19: (S) introduced and referred to Consumer Protection  

SB 3231 – Massage Therapy Businesses.  Would require massage therapy businesses to be licensed and provide evidence of obtaining a bond or liability insurance.  The bill does not specify any further bonding requirements.

Status:  2/4/19: (S) introduced and referred to Consumer Protection

SB 3604 – Energy Services Companies.  Would permit municipalities to participate in community choice energy aggregation programs to procure electric and/or gas supply services from an energy services company.  The energy services company could be required to post a performance bond as a condition of its contract with the municipalities.

Status:  2/11/19: (S) introduced and referred to Energy and Telecommunications 

CONTRACT SURETY

AB 488 – Retainage.  Would revise existing law for private construction contracts to require that retainage be placed in an escrow account.

Status:  1/9/19: (A) introduced and referred to Economic Development

AB 574 – Retainage.  Would prohibit withholding any amounts for a public construction project that are due for materials that have been delivered, accepted and are covered by a manufacturer's warranty, and/or are graded to meet industry standards.  The public owner and the contractor would have had to pay for these materials in full.  Contractors could withhold retainage if the materialmen also have the installation contract.  Private construction contracts would be subject to these requirements as well.  

Status:  1/9/19: (A) introduced and referred to Governmental Operations

AB 1487 – Small Businesses; Bonding Assistance Programs.  Would establish small business mentoring programs for construction contracting for the Dormitory Authority, Office of General Services, Department of Health, Department of Transportation, and the Empire State Development Corporation.  Small businesses would be partnered with a mentor construction firm to perform on set-aside contracts for public works projects.  The public owner would be permitted to provide assistance to participants to obtain bonding.  Participation in the program would be limited to a maximum of two, four-year terms. 

Status:  1/15/19: (A) introduced and referred to Governmental Operations

AB 1975 – Bond Threshold.  Would increase the bond threshold for public construction contracts from $100,000 to $150,000 for contracts that are subject to the law's multiple prime requirements.  For contracts not subject to this requirement, the threshold would be increased from $200,000 to $300,000.  The bond threshold amounts would be adjusted annually for inflation. 

Status:  1/18/19: (A) introduced and referred to Governmental Operations

Related Bill:  SB 766

AB 2008 – P3s; Payment and/or Performance Bonds; Design-Build.  Would permit the Department of Environmental Conservation to enter into P3s with private entities for the maintenance of educational and recreational facilities.  The bill does not specify any procurement requirements for these P3s.  The bill also would expand the design-build law to allow use of the construction manager at-risk project delivery method and the construction manager build method.  Currently, state entities authorized to use design-build projects may set the performance and payment bond requirements; however, the bill provides that these entities could make a determination, notwithstanding the requirements of the Little Miller Act, to use other forms of security at their discretion.  The bill would expand the law to allow public buildings to be built using these project delivery methods and it would expand the number of agencies authorized to use these methods.  The bill would reduce the threshold for using them from $5 million to $1.2 million. 

Status:  3/28/19: (A) amended and recommitted to Ways and Means; Print Number AB 2008C    

Related Bill:  SB 1508

AB 2212 – Retainage.  Would repeal the existing retainage law for public works contracts under which contractors may withhold not more than 5% of the progress payment to a subcontractor, unless the subcontractor does not provide a bond, in which case the retainage may be not more than 10%.  The bill also would mandate that contractors pay their subcontractors upon completion of their work regardless of whether the public owner has paid the contractor. 

Status:  1/22/19: (A) introduced and referred to Governmental Operations

AB 2568 – Infrastructure.  Provides for the creation of infrastructure financing districts to finance public facility projects that have a community‑wide significance. 

Status:  1/23/19: (A) introduced and referred to Ways and Means

AB 3250 – Payment and/or Performance Bonds; Retainage.  Would revise the retainage requirements for state and municipal public works projects so that the public owner would withhold the retainage from the subcontractor instead of the contractor.  The bill provides that the public owner would pay the subcontractors directly instead of the contractors paying the subcontractors. 

Status:  1/29/19: (A) introduced and referred to Governmental Operations

AB 3558 – Retainage.  Would cap the amount of retainage that may be withheld on private construction projects at an amount not more than 5% of the contract amount.  Currently, the owner and the parties to the contract may agree to a reasonable amount of retainage.  The bill also provides that the contractor may obtain his or her final payment of the project when it reaches substantial completion instead of the existing requirement to release the final payment when all obligations under the contract are complete. 

Status:  1/29/19: (A) introduced and referred to Economic Development, Job Creation, Commerce and Industry

Related Bill:  SB 981

AB 4174 – Payment and/or Performance Bonds.  Would create a public library revolving loan program for the University of the State of New York.  As a condition of the loan agreement between the library or library system and the Commissioner of Education, any person or entity contracting to perform work on an approved project would be required to furnish an undertaking or a surety bond to guarantee the faithful performance of the project.  A labor and/or material bond also could be required. 

Status:  2/1/19: (A) introduced and referred to Libraries and Education Technology

AB 4490 – Bond Guarantee Program; Minority Business; Veteran-Owned Business; Women-Owned Business.  Would revise the existing law for contracting programs for minority- and women-owned businesses to include businesses owned by honorably discharged veterans.  The existing law for these programs includes bond guarantee and bonding technical assistance programs. 

Status:  2/4/19: (A) introduced and referred to Veterans Affairs

AB 4722 – Bond Threshold; Payment and/or Performance Bonds.  Would establish a $250,000 threshold at which performance and payment bonds would be required for contracts for the State University of New York at Stony Brook.  The letting agency would have to require deposits, bonds and security with the submission of bids or request for proposals, the award of contracts and the performance of work as it determines to be in the public interest and for the protection of the State, the State University, the State University Construction Fund and the letting agency. 

Status:  2/5/19: (A) introduced and referred to Higher Education  

AB 4826 – Infrastructure; P3s.  Would create the New York State Infrastructure Development Bank to provide financial assistance to energy, environmental, telecommunications, or transportation infrastructure projects.  Eligible entities for receiving assistance would include individuals, corporations, partnerships (including P3s), joint ventures, trusts, the state or other governmental entity, including a political subdivision or any other instrumentality of the state or a revolving fund. 

Status:  2/5/19: (A) introduced and referred to Banks 

Related Bill:  SB 2324

AB 5139 – Contract Bundling.  Would require each state contract to avoid unnecessary and unjustified bundling of contract requirements that precludes small and certified women- and minority-owned business participation in procurements as prime contractors. 

Status:  2/7/19: (A) introduced and referred to Governmental Operations 

AB 5429 – Retainage.  Provides that the retainage that a public owner or contractor withholds that is for a subcontractor's work on state and municipal construction contracts would have to be released within 60 days from the completion and the public owner's acceptance of the subcontractor's work.  A portion of the retainage to be released could be withheld to settle claims and unfinished punch list items.  

SB 766 – Bond Threshold.  Would increase the bond threshold for public construction contracts from $100,000 to $150,000 for contracts that are subject to the law's multiple prime requirements.  For contracts not subject to this requirement, the threshold would be increased from $200,000 to $300,000.  The bond threshold amounts would be adjusted annually for inflation. 

Status: 1/9/19: (S) introduced and referred to Finance

Related Bill:  AB 1975

SB 981 – Retainage.  Would cap the amount of retainage that may be withheld on private construction projects at an amount not more than 5% of the contract amount.  Currently, the owner and the parties to the contract may agree to a reasonable amount of retainage.  The bill also provides that the contractor may obtain his or her final payment of the project when it reaches substantial completion instead of the existing requirement to release the final payment when all obligations under the contract are complete. 

Status:  1/9/19: (S) introduced and referred to Consumer Protection  

Related Bill:  AB 3558

SB 1469 – Performance Bond.  Would establish a NYC Department of Housing Preservation and Development Homeowners Improvement Trust Fund for aggrieved homeowners who are victims of substandard housing built by a sponsor on a Housing Preservation and Development project.  The project sponsor would have to participate in the fund, provide a bond, or otherwise meet the required warranties.  The Commissioner of the NYS Community Homes & Renewal could adopt regulations that require bonding, minimum capital, or other security for project sponsors to secure their compliance with the law and have the financial resources to meet their warranty, contractual, and other obligations.  The Commissioner also could require surety bonds to ensure the satisfactory completion of the project. 

Status:  1/15/19: (S) introduced and referred to Housing, Construction and Community Development

SB 1508 – P3s; Payment and/or Performance Bonds; Design-Build.  Would permit the Department of Environmental Conservation to enter into P3s with private entities for the maintenance of educational and recreational facilities.  The bill does not specify any procurement requirements for these P3s.  The bill also would expand the design-build law to allow use of the construction manager at-risk project delivery method and the construction manager build method.  Currently, state entities authorized to use design-build projects may set the performance and payment bond requirements; however, the bill provides that these entities could make a determination, notwithstanding the requirements of the Little Miller Act, to use other forms of security at their discretion.  The bill would expand the law to allow public buildings to be built using these project delivery methods and it would expand the number of agencies authorized to use these methods.  The bill would reduce the threshold for using them from $5 million to $1.2 million. 

Status:  3/28/19: (S) amended and recommitted to Finance; Print Number SB 1508C     

Related Bill:  AB 2008

SB 2233 – Bond Waiver; Minority Businesses; Small Businesses.  Would allow the bond requirements in the Little Miller Act to be waived for small businesses and minority‑ or women‑owned businesses when the contract is less than $500,000.  The bond threshold under current law is $100,000 for contracts subject to the multiple award requirements of the Wicks Act, and $200,000 for contracts that are not subject to the multiple award requirements. 

Status:  1/23/19: (S) introduced and referred to Finance

SB 2324 – Infrastructure; P3s.  Would create the New York State Infrastructure Development Bank to provide financial assistance to energy, environmental, telecommunications, or transportation infrastructure projects.  Eligible entities for receiving assistance would include individuals, corporations, partnerships (including P3s), joint ventures, trusts, the state or other governmental entity, including a political subdivision or any other instrumentality of the State or a revolving fund. 

Status:  1/24/19: (S) introduced and referred to Finance

SB 3589 – P3s.  Would authorize the creation of P3s for the deployment of broadband.  The P3 would be comprised of state and local entities partnering with telecommunications providers, technology companies, telecommunication unions, community-based organizations and relevant private sector entities.  The P3 would have to develop a plan for the deployment of broadband services and identify P3 projects to meet the deployment goals. 

Status:  2/11/19: (S) introduced and referred to Internet and Technology    

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

COMMERCIAL SURETY

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

COMMERCIAL SURETY

HB 1219 – Public Adjusters.  Would require public adjusters to be licensed and to obtain a bond or insurance for a minimum of $20,000.  The bond would be for the use and benefit of the insurance commissioner for insureds that have remitted fees, retainers, compensation, deposits, or other things of value to the public adjuster in the course of his or her business.  The bill would require 60 days' notice to cancel the bond.

Status:  4/3/19: (H) sent to the Governor 

NEW LAW:  HB 1291 – Fleet Trailer Registrations.  Would eliminate the process for issuing plates to an owner of a fleet of trailers that are operated, offered for lease, or rented to the public.  With the elimination of this process, the required bond would also be eliminated.  Current law provides that a bond may be posted in lieu of paying the registration fees for the full six years for the registration term for the plates. 

Status:  3/22/19: signed by the Governor; effective 8/1/19     

NEW LAW:  SB 2093 – Money Brokers and Collection Agencies.  Would increase the amount of the bonds required of money brokers and collection agencies to $50,000.  Existing law requires money brokers to maintain a $25,000 bond and collection agencies to maintain a $20,000 bond.

Status:  3/14/19: signed by the Governor; effective 8/1/19   

SB 2102 – Discount Medical Plan Organizations.  Would require discount medical plan organizations to register and post a bond of at least $35,000.  The bond would be for the insurance commissioner's discretionary use to protect the financial interests of plan members.  The bond would not be subject to a levy from any judgment creditor or other claimant of the organization.

Status:  4/4/19: Senate refused to concur in House amendment. Conference Committee appointments   

SB 2353 – Occupational Licensing.  As amended, this bill would require the legislative management to study the state's system for regulating occupations and professions, including occupational licensing requirements; the membership, structure, and duties of occupational and professional boards; and various aspects of managing occupational and professional boards.  The legislative management would have to report its findings and recommendations, including any legislation required to implement the recommendations, to the legislature.  As introduced, the bill included occupational license reforms such as requiring occupational and professional licensing boards to adopt the least restrictive regulations, but these were eliminated in an amendment.

Status:  4/4/19: (H) reported back, Do Not Pass, placed on calendar     

CONTRACT SURETY 

HB 1356 – Bond Threshold.  Would increase the state bond threshold from $150,000 to $250,000.  The bill also would increase other procurement thresholds related to public bidding and obtaining plans from private architects and engineers from $150,000 to $250,000.

Status:  4/3/19: (H) House refused to concur in Senate amendment; to Conference Committee      

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

COMMERCIAL SURETY

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

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

SB 1 – Occupational Regulations.  Would revise the existing law for reviewing all state regulations to establish additional procedures for eliminating regulatory restrictions.  Under existing law, regulations have to be evaluated for whether a license bond is required, but there is not a requirement to determine its restrictiveness in this review process for state agencies.  State agencies would have to amend or rescind any rules that are identified to have regulatory restrictions to achieve a 30% reduction according to the schedule set forth in the bill.  Agencies failing to meet this requirement would not be permitted to adopt any new regulatory restrictions unless it simultaneously removes two or more existing regulatory restrictions until a 30% reduction is achieved.  Agencies would be prohibited from merging regulations to achieve this requirement.  The state would be limited in the number of regulatory restrictions that may be effective at any one time to 70% of the aggregate total of regulatory restrictions identified by all state agencies.  No agency could adopt a regulation if it would cause the state to exceed this limit.  Agencies would have to determine whether a regulation includes a restriction.  The bill provides that if the regulation includes such words as "shall," "must," "require," "shall not," "may not," and "prohibit," it likely would be a restriction.  A rule of law, phrased in "indicative mood," also may constitute a regulatory restriction.

Status:  2/19/19: (S) referred to Government Oversight and Reform   

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

COMMERCIAL SURETY 

HB 1235 – Wind Energy Facilities - Decommissioning.  Would eliminate the other forms of security that could be filed in lieu of a surety bond for wind energy facilities to secure decommissioning of the site.  The bill would require the Oklahoma Corporation Commission to establish financial solvency requirements for surety bond providers.
Status:  2/5/19: (H) second reading, referred to Utilities

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

Status:  3/26/19: (S) second reading; referred to Business, Commerce and Tourism 

HB 1954 – Virtual Currency Businesses.  Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Banking Department would determine, based on the nature and the extent of the applicant's virtual currency business model.  The Department could require additional security for good cause.  A bond only could be required if it is generally available in the state for a commercially reasonable cost.  Only the Department would be authorized to make claims on the bond.

Status:  2/5/19: (H) second reading, referred to Banking, Financial Services and Pensions

HB 1972 – Motor Vehicles.  Would transfer certain duties from the Corporation Commission to the Department of Public Safety.  This shift of responsibilities would impact the regulation of motor carriers and appears to eliminate the bond required of enforcement officers.  If enacted, we would need to update our records to reflect the obligee change.

Status:  3/26/19: (S) second reading, referred to Transportation

Related Bill:  SB 687 

SB 592 – Organized Protests.  Would require any organization or group of 100 or more persons that engages in an organized protest at the state capitol building to post a $50,000 bond with the Oklahoma Capitol Improvement Authority in order to offset the cost of additional security, clean up and repairs.

Status:  2/5/19: (S) second reading, referred to Rules

SB 599 – Private Occupational Schools.  Provides that the Oklahoma Board of Private Occupational Schools may adopt regulations for increasing the required amount of the surety bond or certificate of deposit that the school is required to post under existing law.  The bond or certificate of deposit also could be increased when the school fails to adhere to a corrective action plan.  The bill also provides for new procedures for student record retention.  The school could meet the requirement by posting an additional surety bond that would secure the retrieval, recovery, and digitization of school records after a school closes.

Status:  2/12/19: (S) to Appropriations 

SB 651 – Occupational Licensing.  Would create the Right to Earn a Living Act, limiting occupational license regulations to fulfill certain objectives.  The bill provides that all occupational regulations would be limited to those demonstrably necessary and carefully tailored to fulfill legitimate public health, safety or welfare objectives.  Voluntary bonding or insurance would be considered least restrictive, and mandatory bonding would be considered more restrictive.  Within one year of enactment, every agency would be required to conduct a comprehensive review of all occupational regulations and licenses within their jurisdictions.  To the extent an agency finds any regulation that does not satisfy the set standards, it would repeal or modify the regulation to conform, or recommend to the legislature actions necessary to repeal or modify the occupational license or regulation to conform to the standards, if such action as it relates to an occupational regulation is not within an agency's authority.  Each agency would have 15 months following enactment to submit its report to the legislature on all actions taken to conform with the Act. 

Status:  2/14/19: (S) reported Do Pass by Business and Commerce; referred to Appropriations   

SB 687 – Motor Vehicles.  Would transfer certain duties from the Corporation Commission to the Department of Public Safety.  This shift of responsibilities would impact the regulation of motor carriers and appears to eliminate the bond required of enforcement officers.  If enacted, we would need to update our records to reflect the obligee change.

Status:  3/25/19: (H) second reading, referred to Transportation  

SB 720 – Small Loan Lenders.  As amended, this bill would require small loan lenders to be licensed and post a surety bond or irrevocable letter of credit for $25,000 for each location.  The maximum bond amount would be $200,000.  The bond would be payable to the Department of Consumer Credit for the benefit of any person who is injured pursuant to a small loan by the licensee's fraud, misrepresentation, breach of contract, financial failure or violation of the applicable law.  The bill would permit direct actions on the bond.  The bill also would require the bond to be in place for at least three years after the license is surrendered, revoked, or it expires.

Status:  3/28/19: (H) from Banking, Financial Services and Pensions: Do pass 

SB 915 – Electronic Notarizations.  Relates to remote online notarial acts; requires the Secretary of State to promulgate standards regulating remote online notarizations, and provides for registration requirements.

Status:  4/4/19: (H) from Judiciary: Do pass as amended  

SB 1010 – Insurance Professionals and Viatical Settlement Providers and Brokers.  Would amend the producer appointment language to eliminate the phrase "or the first insurance application is submitted," so that to appoint a producer as its agent, the insurer shall file a notice of appointment within 15 days from the date the agency contract is executed.  The bill would also require producers, administrators, adjusters, etc. to report to the Insurance Commissioner any administrative or criminal action taken against them within 30 days.  Failure to comply would result in immediate suspension of a license.  The bill also would clarify that viatical settlement providers and brokers are required to post a $50,000 bond or other security; currently, the law says "in an amount not to exceed" $50,000.
Status:  3/25/19: (H) second reading, referred to Insurance    

CONTRACT SURETY

HB 1114 – Retainage.  Would prohibit retainage from being withheld from contractors on public buildings and public works projects if performance and payment bonds are in place.  Under current law, the state bond threshold is $50,000 so that no retainage would be withheld on public contracts exceeding the threshold.  Under existing law, the Department of Transportation and the Oklahoma Turnpike Authority are prohibited from requiring retainage on their contracts.
Status:  4/2/19: (S) second reading; referred to Business, Commerce and Tourism   

Related Bill:  SB 762

HB 1115 – Payment and/or Performance Bonds.  Would create the Oklahoma Construction Registry (Registry) and allow an owner or general contractor to register a project under the Registry within 10 days of signing a contract.  If the owner or general contractor has elected not to register or fails to register a project within the time allowed, the project would default to the current state lien and bond law. Registering would preserve the lien rights of a project provider.

Status:  2/6/19: (H) second reading, referred to Rules

HB 2305 – Payment and/or Performance Bonds.  As amended, this bill would revise the Little Miller Act to provide that a person who is owed any sum for labor, material or repair to machinery or equipment, furnished on a public works project could file a claim in lieu of bringing an action on the bond.  Existing law provides that no action can be brought on the bond after one year from the day on which the last of the labor was performed or material or parts furnished for which the claim is made.  The bill provides an exception to this limit if a prior claim has been filed within one year from the day on which the labor was performed or material or parts furnished.

Status:  3/28/19: (S) reported from General Government: Do Pass; Committee Report filed.

HB 2666 – Construction Manager; Payment and/or Performance Bonds; Retainage.  Would revise the requirements for political subdivisions to use construction managers to specify that the political subdivision would have the option, if it is included in the guaranteed maximum price, to require the construction manager to provide performance, payment and maintenance bonds or only a payment bond in an amount equal to 100% of the value of the work, excluding the construction manager's fee, general conditions, reimbursements and insurances.  The bill also provides that the construction manager would be authorized to require bonds from the subcontractors or suppliers in an amount equal to 100% of the value of their bid packages for subcontractors or suppliers that are not subject to the bonding requirements under the Little Miller Act.  The bonding requirements would have to be specified in the bidding documents.  Political subdivisions would be allowed to withhold retainage from the construction manager's progress payments as provided under the existing retainage law.

Status:  4/2/19: (S) second reading; referred to Business, Commerce and Tourism  

SB 647 – Payment and/or Performance Bonds.  Would revise the requirements for the bond required for public projects to protect the public agency that awarded the contract against defective workmanship and materials.  Under current law, the bond must cover such defects for one year after the acceptance of a public project for all agencies, except for the Department of Transportation and the Oklahoma Turnpike Authority. The bond's coverage for these two agencies ends one year after project completion. The bill would require the bond to secure against failures as a result of expected usage, weather conditions, defective or inadequate workmanship and materials for a period of up to five years as determined by the awarding public agency after acceptance of the project.  The bill would not change the time period for when the bond's coverage ends for the Department and the Authority.

Status:  2/5/19: (S) second reading, referred to General Government

SB 762 – Retainage.  Would prohibit retainage from being withheld from contractors on public buildings and public works projects if performance and payment bonds are in place.  Under current law, the state bond threshold is $50,000 so that no retainage would be withheld on public contracts exceeding the threshold.  Under existing law, the Department of Transportation and the Oklahoma Turnpike Authority are prohibited from requiring retainage on their contracts.

Status:  3/25/19: (H) second reading; referred to Business and Commerce   

Related Bill:  HB 1114

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

COMMERCIAL SURETY 

HB 2454 – Occupational Licensing. Would allow a professional licensing board to issue a license to an out-of-state applicant if he or she is licensed or otherwise authorized in another state to engage in the same occupation or profession, pay the license fee, and certify that he or she is seeking to engage in the occupation or profession within the Eastern Oregon Border Economic Development Region. Applicants granted licenses or other authorization under this process would have to meet all Oregon standards not later than two years following the date of initial granting of the license or other authorization.

HB 2913 – Possessory Liens on Motor Vehicles.  Would remove the requirement for a person to have a surety bond in effect before making, altering, repairing, transporting, storing, providing services for, supplying materials for or performing labor in connection with a motor vehicle.  The repeal would be effective only from the effective date of the bill, if enacted, until July 1, 2020, at which time the bond requirement would be reinstated.

Status:  4/3/19: (S) in Judicicary. Public hearing and work session held.  

SB 103 – Industrial Dairy Operations.  Would require permit applicants for an industrial dairy operation to post a bond with the Department of Agriculture; the Department would determine the bond amount through regulations.  The bond would secure reimbursement to the Department or other entities for any environmental, health, or animal welfare costs resulting from events such as manure spills, improper disposal of animals, excessive applications of manure threatening the water quality or public health, the cleaning of abandoned facilities, and the relocation of animals due to facility closure or permit suspension or revocation. 

Status:  3/21/19: (S) in Environment and Natural Resources; public hearing held  

SB 113 – Motor Vehicle Dealers.  Would authorize the court to award reasonable attorney's fees to a retail customer who prevails in an action brought against a vehicle dealer and their surety.  The court could award these fees if a written demand was made on the dealer not less than 30 days before commencement of the action requesting compliance or other remedy and the dealer also failed to comply or provide the remedy, including paying the retail customer reasonable attorney's fees and costs that he or she incurred, within 30 days from the date of a written demand.

Status:  4/3/19: (S) in Judiciary. Work session held.   

SB 279 – Student Loan Servicers.  Would require student loan servicers to be licensed and post a surety bond or irrevocable letter of credit in an amount that will be determined through regulations.

Status:  4/3/19: (S) in Judiciary. Work session held.      

Related Bill:  HB 2588

SB 668 – Education Savings Accounts.  Would create an education savings account program as part of a school choice measure.  The State Treasurer would have to adopt policies that require either a surety bond for education service providers receiving more than $100,000 in program funds or insurance for account holders.  Education service providers would have to post a surety bond in an amount equal to the amount of funds received from an education savings account during the school year or provide financial information demonstrating the ability to repay this amount.

Status:  1/24/19: (S) referred to Education, then Student Success, then Ways and Means

SB 848 – Motor Vehicle Dealers.  Provides that the current $10,000 limit on the amount that can be recovered from a motor vehicle dealer's license bond or letter of credit would not apply if a person is an assignee of a retail installment contract from a vehicle dealer and payment is made to that person for the benefit of a retail customer.

Status:  2/27/19: (S) referred to Judiciary

SB 866 – Seed Dealers.  Would revise the financial assurance requirement for seed dealers to specify that a surety bond or letter of credit would be required in an amount not less than 60 percent of the estimated value of the seed for which the seed dealer has contracted under a seed production contract for the year.  Under current law, the Department of Agriculture is charged with adopting financial assurance requirements by regulation, but no form of security is specified.  To date, the regulations have not been adopted.

Status:  2/27/19: (S) referred to Environment and Natural Resources

SB 876 – Animal Feeding Operations. Would establish permitting requirements for large confined animal feeding operations and large concentrated animal feeding operations.  The bill would authorize the Department of Environmental Quality and the State Department of Agriculture to adopt regulations that would require a form of financial assurance to be furnished as a condition of obtaining a permit.  Surety bonds would be accepted to meet the requirement.

Status:  4/8/19: (S) in Environment and Natural  Resources.  Work session scheduled

CONTRACT SURETY

HB 2410 – Prevailing Wages.  Would revise the existing prevailing wage law to require contractors and subcontractors that employ workers on a public works project to directly incur costs of providing fringe benefits or contribute to a trustee or third person under a plan, fund, or program that provides fringe benefits.  The bill would revise the existing requirements for a contractor and subcontractor, or their surety, to submit certified statements to a public agency about prevailing wages to include information on the specific amounts a contractor or subcontractor incurred as costs of providing fringe benefits or contributions the contractor or subcontractor made to a trustee or a third person that provided the fringe benefits.

Status:  1/18/19: (H) referred to Business and Labor

HB 2415 – Retainage.  Would prohibit a contracting agency from withholding retainage or retaining performance security for any portion of a progress payment that relates to the cost of materials or to equipment stored at the job site for public and private work.  Contracting agencies also would no longer have discretion to require retainage or performance security equal to the amount of the retainage.  The agency would be prohibited from withholding retainage if security is furnished.  Contractors could not withhold retainage from a subcontractor after the project reaches 50% completion if the work is progressing satisfactorily.  The bill would establish prompt pay requirements for the release of retainage.  It would also require retainage to be held in an interest-bearing escrow account if the project cost exceeds $250,000.

Status:  4/8/19: (H) in Business and Labor. Work session scheduled   

HB 2711 – Infrastructure.  Would require a contractor's liability insurance policy to provide coverage, at a minimum, for all of the tort liability of the contractor or the contractor's business to public or private parties for personal injury or property damage other than personal injury that is subject to the worker's compensation laws.  Any policy exclusion resulting in the policy providing less than the required minimum coverage would be contrary to public policy and is void.  This would be in addition to the existing requirements to obtain coverage for public liability, personal injury and property damage insurance covering the contractor's work, including coverage for the liability for products and completed operations.  A written description of the coverage would be required as evidence that the policy meets these requirements.  If the policy does not include all of the coverage in the written description, the court could reform the insurance policy to provide the coverage.

Status:  1/30/19: (H) in Business and Labor, public hearing held 

HB 2808 – Infrastructure; P3s.  Would establish a clean technology sector development grant program through the Oregon Business Development Department in which grants would be given to qualified lenders to develop and administer loan programs to fund clean technology sector development projects.  The program is designed to leverage public and private funds to facilitate P3s for these projects.

Status:  2/4/19: (H) referred to Economic Development with subsequent referral to Ways and Means

HB 3155 – Retainage.  Would establish a retainage requirement for school district contracts for services that are required by state or federal law.  The bill provides that the retainage would be a minimum percentage of the contract price, but the bill does not specify the actual amount that would be withheld.  The retainage would be held until the contract is completed and the school district accepts the contractor's performance.

Status:  3/6/19: (H) referred to Education

SB 413 – P3s.  Would allow cities or counties to form a joint district for the purpose of financing the acquisition, design, construction, reconstruction, installation, operation, maintenance and repair of limited-access public highway projects within the proposed district.  Tolling would be authorized for these highways.  The bill would permit these districts to enter into P3s, design-build contracts, lease agreements, lease-purchase agreements and installment sale arrangements for these projects.  The bill would exempt these projects from the existing law's requirements for state tollways and does not specify any procurement requirements.

Status:  1/16/19: (S) referred to Transportation

SB 505 – P3s.  Would require the Oregon Broadband Advisory Council to study the expansion of broadband capacity and access.  The Council would have to establish a statewide broadband plan, including the use of P3s, and submit a report to the interim committees related to economic development on or before September 15, 2020.  The Council would be authorized to propose legislation for the 2021 regular session based on its findings of the study of P3s.

Status:  2/7/19: (S) in Business and General Government; public hearing held   

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

COMMERCIAL SURETY

HB 178 – Natural Gas Tax.  Would impose a tax on the extraction of natural gas in Pennsylvania.  The bill would authorize the Department of Revenue (Department) to require a surety bond from nonresident natural persons, or from any foreign entities, not authorized to do business or not having an established place of business in the Commonwealth.  The bond would secure the payment of the tax and any penalties that may become due, and the Department would determine the amount required.  The Department also could require a bond from any person petitioning for reassessment of any tax assessment over $500 or where the Department believes the ultimate collection of the tax is in jeopardy.  The Department also could require a bond from any person who filed a return or made payment more than 30 days late on three or more occasions within a 12-month period.  Cash or securities would be accepted in lieu of surety bonds in any of these bond requirements. 

Status:  1/28/19: (H) introduced and referred to Environmental Resources and Energy

SB 76 – Various Tax Bonds.  Would require transient vendors to register in connection with this tax assessment and post a $500 bond to secure its compliance with a proposed sales and use tax on residential property.  The bill also would authorize the Department of Revenue to require a bond from nonresident persons or entities, a building contractor, or a supplier delivering building materials that is not authorized to do business in or does not have a place of business in the Commonwealth and is subject to the proposed sales and use tax.  The Department would determine the bond amount.  The Department could require a bond from person petitioning for reassessment if the assessment is over $500 or the Department determines the collection of the tax is in jeopardy.  Persons who have filed a return or made payment to the department more than 30 days late three or more times in a 12-month period could be required to post a bond. 

Status:  2/22/19: (S) introduced and referred to Finance

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

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

CONTRACT SURETY

HB 176 – P3s; Payment and/or Performance Bonds.  Would authorize the state and its political subdivisions to enter into P3s for virtually any public project, excluding transportation projects which are authorized under a separate P3 law.  The bill would set forth optional provisions for the P3 agreement that could be included if they are consistent with best practices in the P3 industry, including provisions that the development entity may be required to provide performance and payment bonds, parent company guarantees, letters of credit or other acceptable forms of security.  The public entity would determine the form of security and the amount required.  The public entity also could consider bonding among the criteria for evaluating a P3 proposal.  The bill would create the P3 Infrastructure Board to approve P3 projects and develop best practices for P3s in coordination with the Department of Transportation and the Public-Private Transportation Partnership Board for developing the guidelines for procuring and approving P3s.  These P3 projects also would be subject to approval in the legislature.  

Status:  1/28/19: (H) introduced; referred to State Government

HB 882 – Performance Bond.  Would revise the existing municipal finance laws in Pennsylvania.  The bill provides that in order for a local government unit to obtain preliminary approval for the issuance of debt, the unit would have to provide a description of the type and amount of payment or performance bond, letter or credit or other financial security proposed to insure the completion of the project. 

Status:  3/19/19: (H) introduced; referred to Local Government 

Related Bill:  SB 204

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

Status:  3/25/19: (H) introduced; referred to Local Government  

SB 204 – Performance Bonds.  Would revise the existing municipal finance laws in Pennsylvania.  The bill provides that in order for a local government unit to obtain preliminary approval for the issuance of debt, the unit would have to provide a description of the type and amount of payment or performance bond, letter or credit or other financial security proposed to insure the completion of the project. 

Status:  2/5/19: (S) introduced; referred to Local Government

SB 207 – Bond Threshold; Payment and/or Performance Bonds.  Would revise the Little Miller Act for local governments to repeal the broad discretion granted to local public contracting entities to accept "any financial security" to secure performance and payment obligations, and to set forth specific acceptable forms of security, including performance and payment bonds.  The bill would limit the kinds of security that may be furnished to performance bonds and payment bonds, letters of credit, or escrow accounts equal to 100% of the contract amount.  The bill also would increase the threshold for requiring bonds, letters of credit, or an escrow account from $10,000 to $500,000. 

Status:  2/5/19: (S) introduced; referred to Local Government  

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

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

COMMERCIAL SURETY