NEWS
CNA Government Relations, with the help of surety industry and producer associations, takes an active role in surety and fidelity bond legislative issues at the federal, state and local level.
Use the drop-down menu below to review recent legislative developments specific to your state.
The mission of our Government Relations Department is to promote and defend our products and business practices at all levels of government.
CNA Government Relations works with lawmakers on legislation that improves the effectiveness of surety bonding and guards against adverse legislative developments. For example, every year 125,000 bills are introduced in state legislatures across the country. CNA's Government Relations Department has the responsibility of identifying those that affect the surety and fidelity industry. Our team of professionals reviews and analyzes legislation and directs lobbying efforts to ensure a positive outcome.
The Government Relations Department also works with local governments on Licence and Permit Bond issues. Many professions are required to post a bond at the local level. Government Relations works to ensure that local communities receive information and support to obtain the kind of public protection afforded by bonds.
Need more specific information? Please contact our Government Relations Department at 800-CNA-2000 (800-262-2000).
COMMERCIAL SURETY
HB 4 – Taxes. Would repeal various current state taxes, including the state income tax, and provide for a sales tax. Persons who are "large sellers," those collecting $50,000 or more of the taxes in the previous 12 months, would have to post a bond or other security in an amount equal to $100,000 or 1.5 times the seller's average monthly tax liability during the previous 6 months, whichever is greater. The bond would secure the remittance of the taxes owed.
Status: 2/4/20: (H) read first time and referred to Fiscal Responsibility
HB 106 – Motor Vehicle Transporters. Would allow a transporter of a motor vehicle, mobile home, trailer coach, travel trailer, house trailer, semi-trailer or trailer, including a utility trailer, or boat to apply to the Department for authority to issue temporary license plates and temporary registration certificates in connection with the transportation of vehicles, as is currently the case for manufacturers or dealers of such vehicles. A transporter would be required to post a bond payable to the State of Alabama in a sum as provided for in Section 40-12-398.
Status: 3/10/20: (S) read first time and referred to Government Affairs
HB 242 – Auctioneers. Would allow licensure of nonresident, out-of-state auctioneers. An applicant must provide proof of financial responsibility in the form of an irrevocable letter of credit or a cash or surety bond in the amount of $10,000. A surety bond shall be payable to the State Board of Auctioneers and conditioned on compliance with the law and the rules adopted by the Board.
Status: 2/27/20: (H) in Boards, Agencies and Commissions. Read second time and placed on the calendar.
Related Bill: SB 146
HB 336 – Sports Wagering. Would allow various types of sports wagering, and would require that a sports wagering licensee to "execute a surety bond in an amount and in the form approved by the commission, to be given to the state, to guarantee the licensee faithfully makes all payments in accordance with this act and rules adopted by the commission".
Status: 2/27/20: (H) introduced and referred to Economic Development and Tourism
SB 146 – Auctioneers. Would add a financial security requirement to the auctioneer license in the form of an irrevocable letter of credit or a cash bond or surety bond in the amount of $10,000. A surety bond shall be payable to the State Board of Auctioneers and conditioned on compliance with the law and the rules adopted by the Board.
Status: 3/3/20: (S) pending third reading on Day 10. Favorable from Governmental Affairs.
Related Bill: HB 242
SB 165 – Medical Marijuana. Would allow medical marijuana and establish the Alabama Medical Cannabis Commission. An applicant for an integrated facility license would be required to provide, among other things, a performance bond in the amount of $2,000,000.
Status: 5/4/20: (H) read first time and referred to Health. (S) Judiciary sixth amendment offered.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 146 – Motor Vehicle Dealers. Would increase the bond amount from $50,000 to $250,000.
Status: 3/27/20: (S) referred to Labor and Commerce
HB 216 – Professional Licenses. Would eliminate some bond requirements.
Status: 1/27/20: (H) referred to Labor and Commerce
HB 299 – Occupational Licensing. Would create the Right to Earn a Living Act, which would require that occupational regulations be limited to those demonstrably necessary and carefully tailored to fulfill legitimate public health, safety or welfare objectives.
Status: 2/24/20: (H) introduced and referred to Judiciary. Additionally referred to Labor and Commerce
SB 157 – Professional Licenses. Would eliminate some bond requirements.
Status: 1/22/20: (H) referred to Labor and Commerce
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
ARIZONA – AZ State Legislature | Session Dates: 1/13/20 – 5/26/20
COMMERCIAL SURETY
HB 2359 – Occupational Licensing. Would prohibit an agency from denying an occupational license to an otherwise qualified applicant who has been convicted of certain offenses.
Status: 3/16/20: (S) to Consent Calendar
HB 2823 – Ambulance Operations. Would create and require a certificate of operation for ambulance transfer operations. An applicant would be required to post a bond in an amount fixed by the director of the Department of Health Services, and the director may increase or decrease the bond amount subject to criteria adopted by rule.
Status: 3/5/20: (H) Committee of the Whole #2 retained on calendar
SB 1137 – Wholesale Drug Distributors. Would repeal the existing requirement that the Pharmacy Board shall require every full-service wholesale pharmaceutical permittee that is applying for an initial permit or the renewal of a permit to submit a bond of at least $100,000, or other equivalent means of security acceptable to the Board.
Status: 3/5/20: (H) read second time
SB 1142 – Occupational Regulation Reform. Would reform occupational regulation of non-health professions by enacting a rebuttal presumption that the public is sufficiently protected from unregulated practice by market competition and private remedies. A profession or occupation would be regulated by the state only if: (1) "there is credible empirical evidence of present, significant and substantiated harm that the unregulated practice threatens the public health, safety or welfare;" (2) public benefit exceeds costs to consumers; (3) the public benefits from regulation; and (4) the public cannot be effectively protected by "less restrictive regulation".
Status: 3/9/20: (H) from Regulatory Affairs: Do pass
SB 1162 – Contractors - Examinations. Would require the registrar of licensed contractors to waive the written trade and rules examinations for a qualifying applicant who is, or has been in the last five years, licensed in another state for a comparable license.
Status: 3/10/20: (H) from Commerce: Do pass
SB 1226 – Notaries Public. Would amend the Revised Uniform Law on Notarial Acts. The bill would transfer and renumber some sections. The bond requirement would not change. The law covers electronic notarizations and remote online notarizations.
Status: 3/10/20: (H) referred to Government
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 1441 – Oil and Gas Wells. Would repeal numerous provisions of the Public Resource Code, including those requiring an indemnity bond of either $25,000 or $40,000, depending on the depth of the well, for each well drilled, redrilled, deepened, or permanently altered or acquired. The bill would require the State Oil and Gas Supervisor to perform their administrative duties in a manner so as to help ensure the wise oversight of oil and gas development used to meet oil and gas needs.
Status: 1/28/20: (S) read first time and referred to Rules.
AB 1627 – Nonparticipating Tobacco Manufacturers. Would establish additional factors with regard to fee payments, reporting compliance, and sales practices for determining when a tobacco manufacturer poses an elevated risk and would be subject to a bond requirement under existing law to be listed on the State's directory of nonparticipating tobacco manufacturers.
Status: 1/28/20: (S) received in Senate. Read first time and referred to Rules for assignment.
AB 2185 – Licensing Reciprocity. Would expand cross-state licensing reciprocity if certain prerequisites are met, but contains no express reference to bonds.
Status: 5/14/20: (A) amended; re-referred to Business and Professions
SB 908 – Debt Collectors. Would create the Debt Collection Licensing Act to provide for the licensure, regulation and oversight of debt collectors by the Commissioner of Business Oversight. A licensee would be required to maintain a bond in a minimum amount of $25,000. The bond would be payable to the Commissioner and used for the recovery of expenses, fines and fees levied by the Commissioner and for losses or damages incurred by borrowers as a result of a licensee's noncompliance with the law.
Status: 5/26/20: (S) read second time and amended; re-referred to Appropriations
SB 1382 – Immigration Consultants. Would replace the title "immigration consultant" with "immigration form assistant" in provisions of existing law which prohibit such an individual from literally translating, with the intent to mislead, certain titles like "notary" or "lawyer" from English to another language to imply that the individual is an attorney. The existing requirement of a $100,000 surety bond for such an individual would remain intact.
Status: 5/21/20: (S) in Judiciary; first hearing cancelled at the request of the author
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COLORADO – CO General Assembly | Session Dates: 1/8/20 – 5/26/20
COMMERCIAL SURETY
HB 20-1213 – Commodity Handlers and Farm Products Dealers. Would combine the Commodity Handler Act and the Farm Products Act in one article, and would increase the maximum bond amount that farm products dealers must file from $200,000 to $1 million.
Status: 5/27/20: (H) in Rural Affairs and Agriculture; refer amended to Finance
HB 20-1218 – Hearing Aid Providers. Would combine the audiologist practice act with the hearing aid provider practice act, which would mean the statutes would be renumbered. The requirement for a hearing aid provider to post a surety bond, or an alternative as determined by the director, in the amount of $10,000 is retained. The director may file a claim on the bond or assist a consumer in filing a claim. The director, by rule, shall determine the requirements for the surety bond.
Status: 3/12/20: (H) from Finance: Refer unamended to Appropriations
NEW LAW: SB 20-011 – Commercial Vehicle Verification Services Providers. Would authorize the chief of the Colorado State Patrol to create a program that allows a transportation association or organization to verify commercial vehicle information and VINs. Permit applicants would be required to furnish evidence of a savings account, certificate of deposit, or a surety bond of at least $10,000.
Status: 3/5/20: signed by the Governor; Chapter 7; effective immediately
SB 20-140 – Powersports and Motor Vehicle Dealers and Salespersons. Would allow a person who suffers loss or damages resulting from fraud to bring a separate action against, and recover from the surety on the bond of, a licensee if: (a) the licensee has not reimbursed the person for the loss or damages; and (b) after either: (I) the board made a finding in a hearing of fraud by a licensee; or (II) a court entered judgment upon a claim of fraud by a licensee. This language applies to all powersports and motor vehicle dealers and salespersons bonds.
Status: 5/28/20: (H) second reading, laid over to 6/1 - no amendments
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 5258 – Receivers. Would obligate a court to require a receiver of receivership property to post with the court a bond that: (1) is conditioned on the faithful discharge of the receiver's duties; (2) has one or more sureties approved by the court; (3) is in an amount the court specifies; and (4) is effective as of the date of the receiver's appointment. Alternatively, the court may approve the posting by a receiver with the court of alternative security such as a letter of credit or deposit of funds, other than the receivership property, on which interest would accrue.
Status: 2/20/20: (H) referred to Joint Committee on Judiciary
HB 5428 – Release of Mechanic's Lien. Would amend existing law pertaining to a property owner's release of a mechanics lien by substituting a bond with sufficient surety as determined by a court. The bill would substitute certain existing language to provide that the bond must be sufficient "to pay to the lienor or his assigns such amount secured by such lien, plus interest, costs and attorney's fees." It would also provide that a "bond with a penal sum that is [125%] of the amount of the lien for which it is being substituted shall be deemed sufficient surety for the purposes of discharging such lien, except such amount shall not be a limit on the lienor's potential recovery following a hearing." The bill would require the bond to contain language identifying the premises and lienholder. It would also codify substantially the verbiage of the bond form.
Status: 3/10/20: (H) in Joint Committee on Banking. Public hearing held
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates
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Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
B23-0359 – Electric Scooter Companies. Would require regulations to be adopted for electric scooter companies that would require operators of these companies to obtain a permit and post a performance bond. The regulations would have to set the required bond amount.
Status: 11/4/19: Public hearing held in Committee on Transportation and the Environment
B23-0394 – Condominiums. Would eliminate provisions that allow the bond or other security to be reduced on a pro rata basis following the conveyance of condominium units.
Status: 1/28/20: in Committee of the Whole. Public hearing held.
B23-0583 – Confiscated Animals. Would require the owner of a seized animal to post a bond in an amount sufficient to cover the reasonable costs to care, feed, and treat the animal for 30 days.
Status: 12/20/19: in Judiciary and Public Safety. Notice of Intent to Act published in the DC Register.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates
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H.R.25 – Fair Tax Act of 2019 (Tax Bond). Would repeal the current income tax and other tax laws, abolish the Internal Revenue Service, and create a national sales tax. Persons who are "large sellers," which are those collecting $100,000 or more of the taxes in the previous 12 months, would have to post a bond or other security in an amount equal to $100,000 or 1.5 times the seller's average monthly tax liability during the previous 6 months, whichever is greater. The bond would secure the remittance of the owed taxes.
Status: 1/3/19: (H) introduced and referred to Ways and Means Committee
H.R.224 – Bond Threshold. Would eliminate the indexing requirements for the Miller Act bond threshold.
Status: 1/3/19: (H) introduced and referred to Oversight and Reform Committee
H.R.658 – National Infrastructure Development Bank Act of 2019 (Infrastructure). Would create a national infrastructure development bank to provide financial assistance for transportation, environmental, energy, and telecommunications infrastructure projects. The bill provides for the creation of an American Infrastructure Bond and the National Infrastructure Development Bank Trust Fund.
Status: 2/7/19: (H) referred to several subcommittees by Transportation and Infrastructure Committee
H.R.1120 – Marijuana Revenue and Regulation Act. Would require marijuana producers and export warehouse proprietors to obtain a permit and post a bond conditioned on compliance with the applicable laws and regulations. The Secretary would determine the amount of the bond. A new or additional bond may be required whenever the Secretary determines that it is necessary for the protection of the revenue generated from the taxes on marijuana that the bill would impose. The Secretary could reject or cancel bonds that are not sufficient to provide this protection. The bill also would subject marijuana products to customs bond requirements and procedures.
Status: 3/22/19: (H) referred to Crime, Terrorism, and Homeland Security Subcommittee by Judiciary Committee
Senate Companion: S.420
H.R.1595 – Marijuana - Secure and Fair Enforcement Banking Act of 2019. Would create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses.
Status: 9/26/19: (S) received in the Senate and read twice; referred to Banking, Housing, and Urban Affairs Committee
Senate Companion: S.1200
H.R.2260 – E-Bonding for Immigration Integrity Act of 2019. Would require aliens seeking admission to the U.S. as a nonimmigrant for certain visas, or if an alien has a visa overstay rate that is more than 1.5%, to post a bond. The bond amount would have to be for not less than $2,500 and not more than $10,000. The bond amount would be set by regulation by visa category and by the level of risk for a visa overstay for that category. The bond would be submitted electronically to the Department of Homeland Security. The bond would be returned if the alien complies with the terms of the visa or changes their immigrant status so that a bond would no longer be required. The bond would be forfeited to the E-Bond Enforcement Fund that the bill would create, if the alien overstays the visa or does not return to their country of origin if the visa is terminated.
Status: 5/15/19: (H) referred to Immigration and Citizenship Subcommittee by Judiciary Committee
H.R.4101 – Build Local, Hire Local Act (Bond Guarantee Program). Would increase the maximum contract amount for which the U.S. Small Business Administration issues a guarantee for a surety bond from $6.5 million to $10 million. Under current law, the SBA can offer guarantees on contracts up to $10 million if a federal agency's contracting officer certifies that the guarantee is necessary. The provision is contained within a broader workforce and infrastructure policy bill.
Status: 8/21/19: (H) referred to Transportation and Maritime Security Subcommittee by Homeland Security Committee
Senate Companion: S.2404
H.R.4485 – Public Building Partnership Program (P3). Would establish a P3 pilot program for public buildings. The administrator of the General Services Administration would have to select not less than 5 and not more than 10 projects for acquiring space for the purposes of public buildings. The administrator would have to submit a prospectus and a management plan for each of these projects to the House Transportation and Infrastructure Committee and the Senate Environment and Public Works Committee for review. The projects would be conducted according to the availability of appropriations. Each project would be subject to a study by the Government Accountability Office.
Status: 9/26/19: (H) referred to Economic Development, Public Buildings, and Emergency Management Subcommittee by Transportation and Infrastructure Committee
H.R.4916 – Farm Workforce Modernization Act of 2019 (Payment Bond; Prevailing Wage). Would amend the Immigration and Nationality Act to provide terms and conditions for nonimmigrant workers performing agricultural labor or services. An employer that is a farm labor contractor who seeks to employ H-2A workers would post or maintain a surety bond payable to the Secretary of Labor or pursuant to the resolution of a civil or criminal proceeding, for the payment of wages and benefits, including any assessment of interest, owed to an H-2A worker.
Status: 11/15/19: (H) referred to Immigration and Citizenship Subcommittee by Judiciary Committee
Related Bills: H.R.3620; H.R.503
H.R.5038 – Farm Workforce Modernization Act of 2019 (Prevailing Wage). Would amend the Immigration and Nationality Act to provide terms and conditions for nonimmigrant workers performing agricultural labor or services, and require affected employers to pay at least the highest of the agreed-upon collective bargaining wage; the adverse effect wage rate; the prevailing wage (hourly wage or piece rate); or the federal or state minimum wage.
Status: 12/12/19: (S) received in the Senate and read twice; referred to Judiciary Committee
Related Bills: H.R.1310; H.R.3620; H.R.4916; H.Res.758
H.R.5174 – State-Sponsored Visa Pilot Program Act of 2019. Would amend the Immigration and Naturalization Act to require a mandatory bond if certain conditions are met. Following a determination by the comptroller general or the inspector general of the Department of Homeland Security that more than 3% of the State-sponsored nonimmigrants violated the terms and conditions of State-sponsored nonimmigrant status in the most recently completed fiscal year, the State shall require each State-sponsored nonimmigrant in the state, as a condition of participation in the program, to post a bond equal to not less than $4,000. The bond would be raised by $1,000 during each fiscal year following a subsequent determination of violation.
Status: 12/19/19: (H) referred to Immigration and Citizenship Subcommittee by Judiciary Committee
S.420 – Marijuana Revenue and Regulation Act. Would require marijuana producers and export warehouse proprietors to obtain a permit and post a bond conditioned on compliance with the applicable laws and regulations. The Secretary would determine the amount of the bond. A new or additional bond may be required whenever the Secretary determines that it is necessary for the protection of the revenue generated from the taxes on marijuana that the bill would impose. The Secretary could reject or cancel bonds that are not sufficient to provide this protection. The bill also would subject marijuana products to customs bond requirements and procedures.
Status: 2/7/19: (S) read twice and referred to Finance Committee
House Companion: H.R.1120
S.1200 – Marijuana - Secure and Fair Enforcement Banking Act of 2019. Would create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses.
Status: 4/11/19: (S) read twice and referred to Banking, Housing, and Urban Affairs Committee
House Companion: H.R.1595
S.1535 – Reinventing Economic Partnerships and Infrastructure Redevelopment Act (Infrastructure; P3). Would establish the Infrastructure Financing Authority (IFA) to provide investments and financing of infrastructure projects. Projects eligible for funding would include transportation infrastructure, water infrastructure, and energy infrastructure. The IFA would provide direct loans and loan guarantees to facilitate eligible infrastructure projects that are economically viable, in the public interest, and of regional or national significance. The bill would set forth additional requirements for projects to receive funding through the IFA, including special qualifications for funding for P3s. The bill would outline the terms of receiving and repaying loans from the IFA, as well as the methods for funding the IFA.
Status: 5/16/19: (S) read twice and referred to Finance Committee
S.2302 – America's Transportation Infrastructure Act of 2019 (P3; Payment Bond; Performance Bond). The highway reauthorization bill. SFAA is seeking amendments for projects receiving funding through TIFIA to clarify that bonds should be required.
Status: 8/1/19: (S) placed on Senate Legislative Calendar under General Orders; Calendar No. 170
S.2404 – Build Local, Hire Local Act (Bond Guarantee Program). Would increase the maximum contract amount for which the U.S. Small Business Administration issues a guarantee for a surety bond from $6.5 million to $10 million. Under current law, the SBA can offer guarantees on contracts up to $1 0 million if a federal agency's contracting officer certifies that the guarantee is necessary. The provision is contained within a broader workforce and infrastructure policy bill.
Status: 7/31/19: (S) read twice and referred to Environment and Public Works Committee
House Companion: H.R.4101
S.2799 – Nexus of Energy and Water for Sustainability Act of 2019 (P3). Would require the Secretary of Energy and the Secretary of the Interior to establish a joint nexus of energy and water sustainability office that would be tasked with, among other things, identifying opportunities for domestic and international P3s.
Status: 12/17/19: (S) placed on Senate Legislative Calendar under General Orders; Calendar No. 362
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 731 – Health Care Clinics. Would eliminate the option for certain licensed mobile health care clinics to provide proof of financial ability to operate or alternatively provide a $500,000 surety bond.
Status: 3/12/20: (H) ordered engrossed, then enrolled; message sent to Senate.
HB 783 – Receivers. Would create the Uniform Commercial Real Estate Receivership Act, under which a court may appoint a receiver to protect receivership property. The court also may require or dispense with a bond, with or without surety, upon certain conditions with due regard for the public interest.
Status: 3/11/20: (H) ordered enrolled
HB 1193 – Occupational Licensing. Would repeal licensure requirements for talent agencies and boxing match timekeepers and announcers; would eliminate the requirement for yacht and ship brokers to license each branch office. The bond requirements would not be eliminated.
Status: 3/12/20: (H) ordered engrossed, then enrolled; message sent to Senate
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
GEORGIA – GA General Assembly | Session Dates: 1/13/20 – 4/3/20; Scheduled to reconvene on 6/11/20
COMMERCIAL SURETY
HB 840 – Private Postsecondary Educational Institutions. Would amend existing law relating to private postsecondary educational institutions. The bill adds a provision that if a bond is in force at the time of an institutional closure, the surety shall be required to remit the full face value of the bond. Current law requires a bond in an amount based on gross tuition received during the previous year or on the estimated gross tuition for the current year, whichever is larger. The amounts range from $20,000 to $450,000 (another tier was added).
Status: 3/9/20: (H) from Higher Education: Favorably reported by substitute
HB 865 – Estates. Would modify existing law governing wills, trusts, and the administration of estates. As amended, the provision would read: "The provisions of law governing the situation in which the surety on a guardian's or conservator's bond dies, becomes insolvent, removes beyond the limits of this state, from other cause becomes insufficient, or desires to be relieved as surety shall be applicable to sureties on personal representatives' bonds."
Status: 3/13/20: (S) read first time and referred to Assignments
SB 329 – Motor Vehicle Title Lenders. Would create the Motor Vehicle Title Loan Act which would authorize the Department of Banking and Finance to license and regulate motor vehicle title lenders. An applicant would be required to post a bond in the amount of $25,000 for the primary location plus $5,000 for each additional location. The bond would run to the State of Georgia for the benefit of the Department or any claimant or creditor against a licensee arising out of the licensee's business of making title loans, and be conditioned on compliance with the law and any rules, regulations or orders issued by the Department, and payment of any and all moneys that may become due and owing.
Status: 3/4/20: (S) read second time
SB 338 – Pet Dealers or Dealerships. Would amend existing license requirements to require pet dealers or animal shelters to post a surety bond of not less than $7,500 nor more than $500,000, based on the number of animals, level of risk, compliance history, and any other factor deemed relevant by the commissioner in establishing rules and regulations. "Surety" is defined as a letter of credit, certificate of deposit, bond, or other written instrument. The purpose of the bond would be to protect, ensure, and provide for the health and welfare of animals when: (A) the licensee is unable or unwilling to timely provide for the same; (B) the licensee has ceased operations by order of the commissioner; (C) the licensee has ceased operations voluntarily and there are pending or outstanding violations; (D) the animals have been impounded from the licensee's facility; or (E) the licensee is convicted of a criminal offense involving cruelty to animals or dog fighting. "Pet dealer" or "pet dealership" means any person who sells, offers to sell, exchanges or offers for adoption dogs, cats, birds, reptiles, or other animals customarily obtained as pets in the state. Fish would be newly excluded from all such license requirements. Surety would not be required for any animal shelter operated by the state, a county, a municipal corporation, or any other political subdivision of the state.
Status: 3/13/20: (H) in Agriculture and Consumer Affairs; second readers
SB 462 – Installment Loan Lenders. Would require a license and bond for any person other than certain financial institutions, pawn brokers or universities to engage in the business of making installment loans. The bond shall: (1) be in a form satisfactory to the department; (2) be in the aggregate amount of $25,000 for the primary location to be operated by a licensee plus $5,000 for each additional location to be operated by such licensee, provided that no licensee shall be required to have a bond that exceeds a total amount of $100,000; (3) run to the State of Georgia for the benefit of the department or any claimant against a licensee arising out of the licensee's business of making installment loans; (4) require a licensee to pay any and all money for the benefit of any person damaged by noncompliance of the licensee with this chapter, with rules, regulations, or orders issued by the department pursuant to this chapter, or with any condition of the bond; and (5) require a licensee to pay any and all money that may become due and owing to any creditor of or claimant against the licensee arising out of the licensee's business of making installment loans.
Status: 3/12/20: (H) second readers; to Banks & Banking
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1883 – 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: 1/23/20: (H) referred to Intrastate Commerce. Subsequent referrals set for Consumer Protection and Commerce and Finance
Related Bill: HB 79
HB 2294 – Notaries Public. Would update the laws regarding notaries public to conform to the Revised Uniform Law on Notarial Acts (2018), the Hawaii Uniform Electronic Transactions Act, other state notary laws, and current notary practices. (Takes effect on 7/1/2050.) The bill would allow a bond to be renewed with a continuation certificate.
Status: 3/16/20: (S) reported from Judiciary; report adopted, passed second reading, as amended. 48 hrs. notice
Related Bill: SB 2850
HB 2513 – Specialty Contractors. Would increase the minimum amount of the bond required for specialty contractors to not less than $25,000 (currently not less than $5,000).
Status: 1/27/20: (H) referred to Labor and Public Employment. Subsequent referrals set for Consumer Protection and Commerce and then Finance.
SB 2444 – Canadian Prescription Drugs. Would establish a Canadian Prescription Drug Importation Program to be implemented and administered by the Department of Health to provide Hawaii consumers access to less expensive prescription drugs. Each vendor would be required to submit evidence of a surety bond in an amount of at least $25,000. In lieu of the bond, a vendor could provide a comparable security agreement such as an irrevocable letter of credit or a deposit into a trust account or a financial institution.
Status: 1/30/20: (S) re-referred to Commerce, Consumer Protection, and Health; subsequent referrals to Ways and Means and Judiciary
SB 2850 – Notaries Public. Would update the laws regarding notaries public to conform to the Revised Uniform Law on Notarial Acts (2018), the Hawaii Uniform Electronic Transactions Act, other state notary laws, and current notary practices. (Takes effect on 7/1/2050.) The bill would allow a bond to be renewed with a continuation certificate.
Status: 1/27/20: (S) referred to Judiciary
Related Bill: HB 2294
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 343 – Bonded Wine Warehouses. Would require licensing to store and handle wine as a bonded wine warehouse. A licensed applicant must hold a federal permit and may be required to post a continuing wine tax bond of such an amount and in such a form as may be required prior to the issuance of a bonded wine warehouse license.
Status: 2/11/20: signed by the Governor. Chapter 10; effective 7/1/20
NEW LAW: SB 1299 – Manufactured Home Resale Brokers. Would amend existing law to remove the licensing requirement for resale brokers of manufactured homes, along with the $30,000 performance bond.
Status: 3/15/20: signed by the Governor. Chapter 129; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
ILLINOIS – IL General Assembly | Session Dates: 1/8/20 – 5/23/20; Veto session scheduled for 11/17/20 – 12/3/20
COMMERCIAL SURETY
HB 4089 – Education Savings Accounts. Would create the Education Savings Account Act and a state board to approve private financial management firms to manage Education Savings Accounts. Participating schools may opt to file a surety bond to demonstrate their financial viability. More specifically, participating schools must demonstrate their financial viability by showing they can repay any funds that might be provided from Education Savings Accounts, if they are to receive $50,000 or more during the school year, by (1) filing with the state board, prior to the start of the school year, a surety bond payable to the state in an amount equal to the aggregate amount of the funds from Education Savings Accounts expected to be paid during the school year from students admitted at the participating school; or (B) filing with the state board, prior to the start of the school year, financial information that demonstrates the school has the ability to pay an aggregate amount equal to the amount of the funds from Education Savings Accounts expected to be paid during the school year to students admitted to the participating school.
Status: 1/16/20: (H) introduced and referred to Rules
HB 5034 – Horse Racing. Would raise the bond amount for an organization license limited to standardbred horse racing in certain townships from $200,000 to $500,000.
Status: 3/12/20: (H) assigned to Executive Committee
HB 5561 – Inter-Track Wagering. Would strike various provisions relating to inter-track wagering licenses and taxes, including an existing requirement that such a licensee shall post a bond in the sum of $500,000.
Status: 2/18/20: (H) introduced and referred to Rules
SB 3438 – Livestock Dealers. Would amend the Illinois Livestock Dealer Licensing Act to provide that the form and amount of the surety bond shall be prescribed by the Packers and Stockyards Administration of the U.S. Department of Agriculture, instead of the $6,000 to $50,000 amount required under current law.
Status: 4/12/20: (S) pursuant to Senate Rule 3-9(b), referred to Assignments
SB 3698 – Notaries Public. Would amend to Notary Public Act to add provisions requiring an electronic notary to obtain and maintain a $25,000 surety bond and errors and omissions policy.
Status: 4/12/20: (S) pursuant to Senate Rule 3-9(b), referred to Assignments
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COMMERCIAL SURETY
HB 1005 – Canadian Prescription Drugs. Would create an Importation of Prescription Drugs Program to obtain pharmaceuticals from Canada. The state department shall require from a vendor it contracts with to manage specified functions of the program a bond to mitigate the financial consequences of potential acts of malfeasance or misfeasance, potential fraudulent acts, or potential dishonest acts committed by the vendor, an employee, or a contractor or subcontractor of the vendor.
Status: 1/29/20: (H) second reading: amended on House floor; ordered engrossed.
NEW LAW: HB 1049 – Continuing Care Contracts. Would amend law governing continuing care contracts under Indiana franchise law to specify that if such a provider posts a letter of credit, negotiable securities, or a bond as an alternative to establishing an escrow account for the deposit of entrance fees, the amount posted must be at least equal to the maximum amount of entrance fees reasonably anticipated by the provider or otherwise be subject to the escrow requirements.
Status: 3/21/20: signed by the Governor; effective 7/1/20
NEW LAW: HB 1353 – Mortgage Lending. Would amend multiple provisions of the First Lien Mortgage Lending Act to allow discretionary shortening or termination of surety bonds protecting individuals who receive certain financial services. The amendment would permit the director, upon written request from a creditor, lender, CPAP provider or certain other individuals, discretion to waive or shorten the two-year period or, in some case five-year period, during which a required surety bond must remain in effect following (i) surrender or termination of the creditor, lender or provider license, or (ii) cessation of a license-exempt individual's association with a licensed loan originator or offer of financial services in the state, as applicable. The language permitting waiver or shortening of the bond term would be added to several provisions throughout the existing statute, thereby affecting a multitude of existing bond obligations applicable to a variety of service providers for varying lengths of time.
Status: 3/18/20: signed by the Governor; effective 7/1/20
SB 224 – Virtual Charter Schools. Would require each organizer and authorizer of a virtual charter school to submit to the State Board of Education a surety bond or other form of financial guarantee in an amount equal to 10% of the amount of state tuition support that the school received for the immediately preceding school year.
Status: 1/16/20: (S) in Education and Career Development. Sen. Stoops added as coauthor
SB 364 – Occupational Regulation Reform. Would expand obligations of the Legislative Services Agency to include a determination of whether a bill may impose a regulatory requirement on businesses and individuals, and, if so, include a statement in the fiscal analysis that the bill may impose a regulatory requirement on businesses and individuals. It would also direct the small business ombudsman, in coordination with the office of management and budget and the department of workforce development, to submit, not later than November 1, 2020, to the legislative council and the interim committee on commerce and economic development an executive summary listing each state agency that may issue a license, and each of the specific license types that may be issued by each state agency.
Status: 2/11/20: (H) first reading; referred to Rules and Legislative Procedures
SB 431 – Charter Schools. Would require each organizer and authorizer of a charter school to submit to the State Board of Education a surety bond or other form of financial guarantee in an amount equal to 10% of the amount of state tuition support that the school received for the immediately preceding school year (or 10% of the estimated tuition support that the charter school will receive in its first year of operation), and conditioned upon the charter school faithfully providing accurate average daily enrollment information. The amount may be adjusted after three years.
Status: 1/15/20: (S) first reading; referred to Education and Career Development
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COMMERCIAL SURETY
HSB 243 – Small Loan Lenders. Would require small dollar installment loan lenders to be licensed and post a $25,000 surety bond. The bond would be conditioned upon the licensee's compliance with the applicable law, the faithful performance by the licensee of the duties and obligations for its business, and the prompt payment of any judgment recovered against the licensee.
Status: 1/22/20: (H) in Ways and Means: subcommittee reassignments - Maxwell, Hagenow and Wolfe
Related Bill: SSB 1105
HF 663 – Scholarship Programs. Would establish a scholarship program to provide assistance to students attending nonpublic 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: 2/13/20: (H) in Education: Subcommittee recommends amendment and passage
Related Bills: SF 28, SF 372
NEW LAW: SF 2250 – Timber Buyers. Increases the minimum and maximum bond amounts for timber buyers to $25,000/$50,000. Under current law, the minimum is $3,000 and the maximum is $15,000.
Status: 3/12/20: signed by the Governor; effective 7/1/20
SF 2392 – Occupational Licensing. Would, among other things, create a process for the sunset of all boards that license, register or certify a profession in the state, and would govern the regulation of professions. The principles imposed by the bill include a policy of enacting the least restrictive regulation necessary to protect the public, encouraging economic opportunities and competition, providing guidance for determining what style of regulation is appropriate, and enforcing an occupational regulation against an individual only to the extent that it is explicitly provided for by a statute. "The bill does not prohibit a licensing board from requiring licensees to obtain credentials from private organizations".
Status: 3/11/20: (H) read first time and referred to State Government. Subcommittee assignments.
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COMMERCIAL SURETY
HB 2451 – Livestock Market Operators. Would change the license expiration date from June 30 to September 30. There would be no change to the bond requirement.
Status: 5/21/20: (S) died on Senate General Orders
HB 2463 – Pesticide Businesses. Would amend the requirements for a pesticide business license to eliminate the option of submitting a $6,000 bond, making liability insurance the only acceptable proof of financial responsibility. Existing license approvals based on a surety bond would remain valid until 1/1/21, but thereafter licensees and applicants must have insurance.
Status: 5/21/20: (S) died in Agriculture and Natural Resources.
HB 2465 – Scholarship Programs. Would amend existing law to add a new requirement that a scholarship-granting organization participating in a certain tax credit for low income students scholarship program shall, upon receipt of contributions in an aggregate amount or value in excess of $50,000 during a school year, file with the state board either a surety bond in an amount equal to the aggregate amount of contributions expected to be received during the school year, or financial information demonstrating the scholarship granting organization's ability to pay such an amount.
Status: 3/5/20: (H) K-12 Education Budget Committee Report recommending bill be further amended and be passed as amended
HB 2506 – Occupational Regulations. Would expand cross-state licensing reciprocity for any applicant, not just military spouses, and would add a requirement that an applicant provide "proof of solvency, financial standing, bonding or insurance if required by the licensing body of this state, but only to the same extent as required of any applicant with similar credentials or experience."
Status: 5/21/20: (S) died on Senate General Orders
HB 2629 – Supplemental Nursing Services. Would require a person who operates a supplemental nursing services agency to register annually with the Secretary for Aging and Disability Services. As a condition of registration, an agency would be required to maintain a fidelity bond or fidelity insurance in the amount of at least $10,000.
Status: 2/20/20: (H) in Children and Seniors. Hearing held.
HB 2658 – Prescription Drug Importation from Canada. Would create the Affordable Prescription Drug Importation Program to obtain pharmaceuticals from Canada. Each vendor who contracts with the Department of Health and Environment would be required to submit evidence of a surety bond with any bid or initial contract negotiation documents, and maintain documentation of evidence of the bond with the Department throughout the contract term. The bond shall be in an amount of at least $25,000. Alternate security in the form of an irrevocable letter of credit or cash deposit would be accepted in lieu of the bond.
Status: 2/13/20: (H) referred to Health and Human Services
HB 2713 – Notaries Public. Would enact the Revised Uniform Law on Notarial Acts, which includes the remote and electronic notarization provisions. The bill also would increase the bond "or its functional equivalent" from $7,500 to $12,000, and increase the notice of cancellation requirement from 14 days to 30 days.
Status: 5/21/20: (S) died on Senate General Orders
SB 305 – Motor Vehicle Dealers. Would increase the bond amount required for a vehicle dealer license from $30,000 to $50,000.
Status: 5/21/20: (H) stricken from calendar by Rule 1507.
SB 354 – Postsecondary Educational Institutions. Would amend the Private and Out-of-State Postsecondary Educational Institution Act by eliminating the available option to alternatively provide any similar certificate of evidence of indebtedness or insurance as may be acceptable to the State Board in lieu of a corporate surety bond. The bond amount would remain at $20,000.
Status: 5/21/20: (H) stricken from calendar by Rule 1507.
SB 374 – Salvage Vehicle Pools. Would allow employees of salvage vehicle pools that sell at least 2,000 vehicles combined per year from the salvage vehicle pool's licensed locations in Kansas to perform vehicle identification number inspections. Such salvage vehicle pool must furnish and maintain a bond in the amount of $50,000 executed in the name of the state of Kansas.
Status: 5/21/20: (H) died in Transportation
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COMMERCIAL SURETY
HB 53 (formerly BR 72) – PEOs and PEO Groups. Would require professional employer organizations (PEOs) or PEO groups to maintain a positive working capital or provide a surety bond or other security in an amount sufficient to make up the deficiency plus $100,000. The bond is to secure the payment of all taxes, wages, benefits and other entitlements due to or with respect to covered employees.
Status: 2/4/20: (H) recommitted to Small Business & Information Technology
HB 136 (formerly BR 366) – Medical Marijuana Retailers. Would allow the possession and use of medicinal marijuana by registered patients having a qualified medical illness, and the operation of cannabis businesses. Various medical practitioners may apply to their state licensing boards for authorization to prescribe cannabis. KRS 62.160.49 would be amended to permit the Governor to increase, for statewide elected officeholders, "the penal sum of any bond or require a renewal of the bond with other or additional surety."
Status: 3/2/20: (S) referred to Judiciary
HB 137 (formerly BR 364) – Online Poker. Would add online poker to statutory provisions currently governing the state lottery. The president of the Kentucky Lottery Corporation may require a bond from corporate employees with access to funds in such an amount as provided in the administrative regulations of the board. The president may also require bond from other employees as deemed necessary.
Status: 3/17/20: (H) recommitted to Licensing, Occupations, and Administrative Regulation
SB 24 – Sports Wagering. Would add various forms of sports wagering to the existing statutory provisions concerning the state lottery, and subject persons who accept sports wagers to the requirements affecting those who sell lottery tickets, including the requirement for a bond or bank letter of credit in an amount provided by administrative regulations issued by the board.
Status: 1/8/20: (S) referred to Licensing, Occupations and Administrative Regulations
SB 283 – Notaries Public. Would exempt employees of a state agency from obtaining a bond.
Status: 3/6/20: (S) referred to Judiciary
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 701 – Virtual Currency Businesses. Would require applicants for a virtual currency license to deposit with the department funds or investment property, a letter of credit, a surety bond, or other security that secures the applicant's faithful performance of its duties pursuant to the provisions of the chapter, and is in an amount the department specifies based on the nature and extent of risks in the applicant's virtual currency business model. The department shall not require a surety bond unless a surety bond is generally available in the state at a commercially reasonable cost Only the department may recover against the surety, and retain the recovery for no longer than five years and may process claims and distribute recoveries to claimants in accordance with rules adopted by the department.
Status: 5/31/20: (H) read by title, roll called; Senate amendments concurred in.
SB 331 – Fantasy Sports. Would authorize and license fantasy sports contest operators and would require certain reserve funds backed by financial assurance as follows: "Reserve funds may take the form of cash, cash equivalents, payment process reserves, payment processor receivables, an irrevocable letter of credit, a bond, or a combination thereof, in the amount that must exceed the total balances of the fantasy sports contest players' accounts."
Status: 3/9/20: (S) read and referred to Judiciary B
SB 413 – Motor Carriers - Overweight Violations. Would transfer the operation and maintenance of stationary weight enforcement scale locations from the Department of Public Safety and Corrections to the Department of Transportation and Development. The bill also would amend existing law to require that a nonresident of the state ticketed for a weights and measures violation must pay at the time the violation ticket is issued or must post a bond equal to the amount of the penalty, which bond shall be forfeited if, within thirty days of issuance of the violation ticket, the penalty has not been paid or an agency review has not been requested.
Status: 3/9/20: (S) read and referred to Transportation, Highways and Public Works
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HP 1405 (LD 1961) – Fidelity Bond. Would create a trust fund for the purpose of receiving all settlement funds and other funds, and redistributing those funds to state agencies or designated agents of Maine, to fund tobacco use prevention and control. All officers, directors, employees and other agents of the trust entrusted with the custody of funds of the trust or authorized to disburse the funds must be bonded either by a blanket bond or by individual bonds with a minimum of $100,000 coverage for each person, or equivalent fiduciary liability insurance, conditioned upon the faithful performance of their duties.
Status: 3/17/20: (H) carried over, in the same posture, to any special session pursuant to Joint Order SP 788. Senate concurred.
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COMMERCIAL SURETY
HB 469 – Postsecondary Educational Institutions. Would add provisions to existing law requiring certain postsecondary educational institutions to refund all tuition and fees to certain students in the event of a "disorderly closure".
Status: 2/18/20: (H) in Appropriations. Hearing held. FAILED - ADJOURNMENT
Related Bill: SB 446
HB 592 – Common Ownership Community Managers - Fidelity Bond. Would create the State Board of Common Ownership Community Managers in the Department of Labor, and require an individual to be licensed by the Board before providing management services for a common ownership community, such as a condominium association, cooperative housing corporation, or homeowners association. A licensee would be required to file a fidelity bond or theft insurance, or other comparable insurance, that covers any person that provides management services under a contract in an amount equal to the lesser of $2,000,000 or the highest aggregate amount of the operating and reserve balances of all community ownership communities under contract in the prior 3 months.
Status: 3/16/20: (S) referred to Judicial Proceedings. FAILED - ADJOURNMENT
HB 855 – Money Transmitters. Would modify various existing provisions concerning licensed money transmitters. The bill retains the existing bond (or deposit) requirement; however, one of the factors for determining the bond amount would be revised from "the potential loss of buyers and holders of payment instruments or persons for whom or to whom money is transmitted if the applicant or licensee becomes financially impaired, but require..." to "potential loss of money transmissions by persons for whom or to whom money is transmitted if the applicant or licensee becomes financially impaired."
Status: 3/17/20: (H) from Economic Matters: Favorable report adopted; second reading passed. FAILED - ADJOURNMENT
HB 929 – Property Managers. Would require registration of property managers, who would have to be covered by a surety bond in the amount of at least $100,000 if he rents fewer than 20 properties, or $200,000 if he rents 20 properties or more.
Status: 3/14/20: (S) referred to Judiciary Proceedings. FAILED - ADJOURNMENT
SB 418 – Education Savings Accounts. Would establish an Education Savings Account program with accounts managed by qualifying private financial management firms or similar entities. To participate, a school must qualify, and if the school receives at least $50,000 from such accounts during the school year, it must demonstrate financial viability by filing a bond in an amount equal to the total amount of funds the school expects to receive from an account for the school year, or filing financial information demonstrating that the school has the ability to pay that amount.
Status: 2/12/20: (S) in Education, Health, and Environmental Affairs. Hearing cancelled. FAILED - ADJOURNMENT
NEW LAW: SB 446 – Postsecondary Educational Institutions. Would add provisions to existing law requiring certain postsecondary educational institutions to refund all tuition and fees to certain students in the event of a "disorderly closure".
Status: 5/8/20: Enacted; Chapter 554; effective 7/1/20
Related Bill: HB 469
SB 754 – Money Transmitters. Would establish licensing requirements for certain money transmission locations and require a surety bond (or deposit) in an amount determined by the Commissioner of Financial Regulation, based on (i) the financial condition of the applicant or licensee; (ii) for a licensee, the average monthly outstanding money transmission liability for the previous 12 months; (iii) for an applicant, the projected monthly money transmission volume in the state, business experience, and any other factor deemed appropriate; and (iv) the potential loss of money transmissions by persons for whom or to whom money is transmitted if the licensee or applicant becomes financially impaired.
Status: 3/13/20: (H) referred to Economic Matters. FAILED - ADJOURNMENT
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 924 – Money Transmitters. Would revise the law for money transmitters handling foreign deposits to require a bond or other security from all money transmitters for $50,000 plus $10,000 per location. The bond would be capped at not more than $450,000. Under current law, the bond amount is based on the money transmitters volume of business to transmit money to foreign countries and it cannot be less than $50,000. The surety's aggregate liability could not exceed the principal sum of the bond. The bill would add a five-year tail to the bond requirement.
Status: 3/2/20: From Joint Committee on Financial Services: Ought to pass. Referred to House Ways and Means.
HB 937 – Life Insurance Settlement Providers. Would require life insurance settlement providers entering into a life settlement contract in connection with a Medicaid long-term benefits program to post security in the form of a surety bond, policy of errors and omissions insurance, deposit, securities, or any combination thereof in the amount of $500,000.
Status: 11/5/19: in Joint Committee on Financial Services; hearing held; eligible for executive session
HB 1073 – Debt Management Services Providers. Would require debt management services providers to be licensed and post a surety bond in an amount that the Commissioner of Banks will determine.
Status: 5/4/20: (H) reporting date extended to 6/15/20. 5/21/20: (S) Senate concurred.
HB 2396 – Tourism Marketing. Would require the management entity for a tourism marketing district to post a surety bond conditioned on the faithful performance of its duties. Such entities receive the funds for the district and implement the district's purpose.
Status: 12/30/19: from Joint Committee on Tourism, Arts and Cultural Development: Ought to pass. Referred to Ways and Means.
Related Bill: SB 232
SB 164 – Student Tuition Recovery Fund. Would establish a student tuition recovery fund for students from for-profit schools if they collect prepaid tuition to pay claims in the event that the school ceases operations. The recovery fund would be in addition to the license bond required for these schools. The bill provides that Ii funds become available from the surety bond or other security, any unencumbered funds from that bond or other security would have to be used to reimburse the fund for payments previously made to persons injured by the school's ceasing operations.
Status: 2/13/20: From Joint Committee on Consumer Protection and Professional Licensure: Accompanied Study Order S 2534.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 5445 – Vehicle Charging Stations. Would create the Electric Vehicle Charging Services Registration Act, and require registration and other obligations of a non-private assembly "designed specifically to charge batteries within an electric vehicle." The Department of Agriculture and Rural Development would require an applicant for registration to post a bond or provide a letter of credit or other financial guarantee in a reasonable amount established by the Department of not less than $40,000, if the Department finds after an investigation and review that the requirement of a bond would be in the public interest.
Status: 2/19/20: (H) referred to Ways and Means, with substitute (H-2)
HB 5454 – License and Permit Bonds - State Natural Resources and Environmental Protection Act. Would amend the Act to require a bond for any permit or license issued under Article II or under Chapter 1 or 3 of Article III that is not expressly exempt from a bond requirement. "Bond" means a performance bond from a surety company, a certificate of deposit, a cash bond, or an irrevocable letter of credit in favor of the department in an amount determined to be sufficient for the purposes for which the bond may be used. The department could utilize the bond for the costs of any of the following incurred in response to activities regulated by the department under the permit: (a) cleanup; (b) remediation; or (c) bringing a site into compliance with the requirements of the law under which the permit was issued.
Status: 2/4/20: (H) introduced and referred to Natural Resources and Outdoor Recreation
NEW LAW: SB 434 – Cosmetology. Would allow and require licensure for "mobile salons," including a requirement for a $10,000 bond.
Status: 1/27/20: approved by the Governor; Public Act No. 20; immediate effect
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HF 3365 – Vote Recount. Would require a candidate requesting a vote recount to file a bond, cash or surety in an amount set by the filing officer for the payment of the recount expenses.
Status: 2/17/20: (H) introduced and referred to Government Operations
Related Bill: SF 3380
HF 3391 – Guardianships and Conservatorships. Would modify and modernize certain provisions governing guardianship and conservatorship.
Status: 5/15/20: (H) postponed indefinitely; author added - Johnson
Related Bill: SF 3258
NEW LAW: SF 3258 – Guardianships and Conservatorships. Would modify and modernize certain provisions governing guardianship and conservatorship.
Status: 5/27/20: signed by the Governor; Chapter 110; effective 8/1/20
Related Bill: HF 3391
SF 3380 – Vote Recount. Would require a candidate requesting a vote recount to file a bond, cash or surety in an amount set by the filing officer for the payment of the recount expenses.
Status: 2/20/20: (S) introduced and referred to State Government Finance and Policy and Elections
Related Bill: HF 3365
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
MISSISSIPPI – MS Legislature | Session Dates: 1/7/20 – 7/12/20
COMMERCIAL SURETY
HB 865 – Sales Tax. Would amend existing law to allow the Commissioner of Revenue to deny an application for a sales tax permit or revoke a sales tax permit if the applicant or taxpayer is an entity and any partner, member, principal officer or director of such entity has failed to satisfy all of the finally determined tax liabilities owed. In lieu of denying or revoking an entity's permit, the Commissioner may accept an increased or additional bond from the entity to cover the additional risk involved.
Status: 5/11/20: (S) referred to Finance
Related Bill: SB 2470
HB 866 – Fuel Tax. Would remove the maximum bond limit for distributors of gasoline, special fuel, lubricating oil and compressed gas, and all references to class A and class B lubricating oil distributors.
Status: 5/11/20: (S) referred to Finance
Related Bill: SB 2600
HB 917 – Alcoholic Beverages - Light Spirit Products. Would legalize the manufacture and sale of light spirit products with an alcoholic content of not more than 4% by weight to be regulated in the same manner as beer and light wine. Before any person could engage in manufacturing, wholesaling or distributing light spirit products, he would be required to file a bond payable to the State of Mississippi, in a sum of not less than $5,000 nor more than $200,000, as determined by the Department of Revenue. The bond of a wholesaler, distributor or brew pub would not exceed the amount of excise tax estimated to be owed for any 60-day period. If a manufacturer is distributing light spirit products for sale, the manufacturer, in addition to any other required bond, would post a bond not to exceed the amount of excise tax estimated to be owed for any 60-day period.
Status: 5/28/20: (S) in Tourism. Title sufficient, do pass.
Related Bill: SB 2428
HB 1096 – Alcoholic Beverages - Wine Distributor. Would remove the Department of Revenue as the wholesale distributor of wine within the state, and create a wine distributor permit with requirements to comply with laws, pay taxes and obtain a bond of $100,000.
Status: 5/11/20: (S) referred to Finance
HB 1104 – Occupational Licensing. Would authorize an occupational licensing review commission to "review the substance of any existing occupational regulation that was promulgated on or after July 1, 2012, by any occupational licensing board and determine whether such occupational regulations comply with state policy."
Status: 5/11/20: (S) referred to Accountability, Efficiency, Transparency
HB 1208 – Hemp Processors. Would create the Mississippi Hemp Cultivation Act to govern hemp processors, requiring them to post a bond or other financial assurance (CD or irrevocable letter of credit). Rules and regulations required for certificates of deposit and irrevocable letters of credit shall be promulgated by the commissioner.
Status: 5/12/20: (S) referred to Agriculture; Environment Protection, Conservation and Water Resources
HB 1378 – Mortgage Loan Originators. Would reenact the existing State S.A.F.E. Mortgage Act, including various existing provisions requiring surety bonds of mortgage loan originators.
Status: 5/12/20: (S) referred to Business and Financial Institutions
Related Bill: SB 2427
HB 2394 – Notaries Public. Would repeal and reenact the Revised Mississippi Law on Notarial Acts, incorporating provisions for electronic notarizations. The bond requirement remains the same.
Status: 3/25/20: (H) referred to Judiciary A
SB 2427 – Mortgage Loan Originators. Would reenact the existing State S.A.F.E. Mortgage Act, including various existing provisions requiring surety bonds of mortgage loan originators.
Status: 5/27/20: (H) in Banking and Financial Services; title sufficient, do pass.
Related Bill: HB 1378
SB 2470 – Sales Tax. Would amend existing law to allow the Commissioner of Revenue to deny an application for a sales tax permit or revoke a sales tax permit if the applicant or taxpayer is an entity and any partner, member, principal officer or director of such entity has failed to satisfy all of the finally determined tax liabilities owed. In lieu of denying or revoking an entity's permit, the Commissioner may accept an increased or additional bond from the entity to cover the additional risk involved.
Status: 3/13/20: (H) referred to Ways and Means
Related Bill: HB 865
SB 2600 – Fuel Tax. Would remove the maximum bond limit for distributors of gasoline, special fuel, lubricating oil and compressed gas, and all references to class A and class B lubricating oil distributors.
Status: 3/25/20: (H) referred to Ways and Means
Related Bill: HB 866
SB 2725 – Hemp Processors. Would create the Mississippi Hemp Cultivation Act to govern hemp processors, requiring them to post a bond or other financial assurance (CD or irrevocable letter of credit). Rules and regulations required for certificates of deposit and irrevocable letters of credit shall be promulgated by the commissioner.
Status: 3/17/20: (H) referred to Agriculture
SB 2790 – Occupational Regulation Reform. Would authorize the Occupational Licensing Review Commission to exercise active supervision over existing occupational regulations promulgated by occupational licensing boards.
Status: 3/25/20: (H) referred to Judiciary A; Accountability, Efficiency, Transparency
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
MISSOURI – MO General Assembly | Session Dates: 1/8/20 – 5/15/20
COMMERCIAL SURETY
HB 1307 – Occupational Regulation Reform. Would eliminate professional licenses, certificates, registrations or other such authorizations from suspension for nonpayment of child support.
Status: 5/15/20: (H) referred to Children and Families
HB 1452 – Occupational Regulation Reform. Would allow professional license reciprocity for nonresident military spouses without waiving any requirement for such applicant to pay any fees, post any bonds or surety bonds, or submit proof of insurance associated with the license being sought by the applicant.
Status: 1/15/20: (H) from Professional Registration and Licensing: Reported do pass as substituted
NEW LAW: HB 1511 – Occupational Regulation Reform. Would allow professional license reciprocity for nonresident military spouses without waiving any requirement for such applicant to pay any fees, post any bonds or surety bonds, or submit proof of insurance associated with the license being sought by the applicant.
Status: 4/21/20: Signed by the Governor; effective 8/28/20
HB 1555 – Modifications to the PACE Act. 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: 2/13/20: (H) to Financial Institutions
Related Bill: SB 577
HB 1598 – Motor Vehicle Rental and Lease Companies - Sales Tax. Would require vehicle rental and lease companies to remit any local or state taxes covered by financing to remit such taxes directly to the appropriate taxing authority. Existing provisions relating to the bond are not impacted.
Status: 5/15/20: (H) referred to Ways and Means
HB 1733 – Empowerment Scholarship Accounts Program. Would create the Missouri Empowerment Scholarship Accounts Program, and require any tax-exempt charitable organization registered in the state which allocates all of its annual revenue (with certain exceptions) for educational assistance to demonstrate its financial viability.
Status: 5/1/20: (H) placed on Informal Calendar
HB 1830 – Occupational Regulation Reform; Individual Sureties. Would create a bonding review board under the Missouri Department of Commerce and Insurance. The board would be charged with: (1) establishing criteria and procedures to create credit ratings for any entity that markets or provides individual sureties for the satisfaction of bonding requirements, and assigning such credit ratings; (2) establishing procedures by which to register with the board as a provider of individual sureties and to accept such registrations; (3) conducting, at the request of a petitioner, investigations into an individual surety provider's financial solvency and satisfy sureties offered and issued; and (4) submitting a report of pertinent details to the Governor and the General Assembly before January 2nd of each year.
Status: 5/15/20: (H) referred to General Laws
HB 1874 – Notaries Public. Would make sweeping revisions to the notary law (repeal and reenact). The bill would add a provision that places joint liability for a notary's actions -- whether negligent or otherwise -- on the notary, their employer, and their surety, providing that the surety shall be liable to any person for damages proximately caused by the notary's negligence, intentional violation of law, or official misconduct in relation to a notarization during the bond term; however, the liability shall not exceed the bond amount or of any remaining bond funds that have not been disbursed to other claimants. The bill adds provisions for electronic notarization.
Status: 4/27/20: (H) reported Do Pass
Related Bill: SB 593
HB 1891 – 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 $1,000,000 and post a bond with each political subdivision in which work will be performed, as required by that political subdivision.
Status: 5/1/20: (H) placed on Informal Calendar
Related Bill: SB 559
HB 2046 – Occupational Regulations. Would amend provisions allowing professional license reciprocity to require at least one year of licensure in another jurisdiction. The amendments would not affect the existing requirement for an applicant to pay any fees, post any bonds or surety bonds, or submit proof of insurance associated with the license being sought.
Status: 5/27/20: delivered to Governor
HB 2299 – Home Inspectors. Would establish certification procedures for home inspectors and would require, among other things, proof that the applicant maintains an appropriate errors and omissions policy for the protection of any client or other person, firm, association, or corporation that may be affected by the activities of the applicant. A bond requirement is not among the certification requirements.
Status: 5/15/20: (H) referred to Professional Registration and Licensing
HB 2327 – Roofing Contractors. Would require roofing contractors to obtain a license, and would authorize the Division of Professional Regulation to adopt rules and regulations necessary to implement the requirements for licensure including, among other things, rules concerning the acquisition of insurance, indemnity coverage, or surety bonds in amounts to be determined by the Division.
Status: 5/15/20: (H) referred to Professional Registration and Licensing
HB 2576 – Roofing Contractors. Would establish provisions requiring registration certificates for roofing contractors and would authorize the division of professional registration to adopt rules and regulations necessary to implement the provisions, including rules concerning, among other things, the "acquisition of insurance, indemnity coverage, or surety bonds in amounts determined by the division."
Status: 5/15/20: (H) referred to Professional Registration and Licensing
HB 2742 – Motor Vehicle Dealers. Would amend existing law to provide that certain motor vehicle dealers may not transfer title unless such dealer has provided to the director of revenue a surety bond or irrevocable letter of credit in an amount of no less than $100,000. "Such surety bond or irrevocable letter of credit shall be in lieu of the $50,000 bond otherwise required for licensure as a motor vehicle dealer." The bond or other assurance would be paid to any buyer or interested lienholder "when a dealer has failed to fulfill the dealer's obligations under an agreement to assign and deliver title to the buyer within thirty days under a contract" or in certain circumstances, minus deductions for wear and tear, when the dealer does not repurchase a returned vehicle.
Status: 3/10/20: (H) referred to Transportation
SB 534 – Charter Schools. Modifies provisions concerning charter schools but retains the obligation to have a surety bond or an insurance policy.
Status: 1/9/20: (S) second read, referred to Education
SB 559 – 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 $1,000,000 and post a bond with each political subdivision in which work will be performed, as required by that political subdivision.
Status: 5/15/20: (S) Informal Calendar, Senate Bills for Perfection
Related Bill: HB 1891
SB 577 – Modifications to the PACE Act. 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: 1/9/20: (S) referred to Insurance and Banking
Related Bill: HB 1555
SB 593 – Notaries Public. Would make sweeping revisions to the notary law (repeal and reenact). The bill would add a provision that places joint liability for a notary's actions -- whether negligent or otherwise -- on the notary, their employer, and their surety, providing that the surety shall be liable to any person for damages proximately caused by the notary's negligence, intentional violation of law, or official misconduct in relation to a notarization during the bond term; however, the liability shall not exceed the bond amount or of any remaining bond funds that have not been disbursed to other claimants. The bill adds provisions for electronic notarization.
Status: 2/27/20: (S) from Local Government and Elections: Reported do pass
Related Bill: HB 1874
SB 673 – Occupational Regulation Reform. Would allow professional license reciprocity for nonresident military spouses without waiving any requirement for such applicant to pay any fees, post any bonds or surety bonds, or submit proof of insurance associated with the license being sought by the applicant.
Status: 5/6/20: (H) in Fiscal Review. Executive session completed, voted do pass. Committee Report: Do pass.
Related Bills: HB 1452, HB 1511
SB 707 – Empowerment Scholarship Accounts Program. Would create the Missouri Empowerment Scholarship Accounts Program, and require any tax-exempt charitable organization registered in the state which allocates all of its annual revenue (with certain exceptions) for educational assistance to demonstrate its financial viability.
Status: 2/18/20: (S) in Education. Hearing conducted.
SB 756 – Roofing Contractors. Would amend existing law to allow, but not obligate, roofing contractors to register with the state through its division of professional registration.
Status: 5/15/20: (S) Informal Calendar, Senate Bills for Perfection
SB 877 – Occupational Licensing. Would create the Expanded Workforce Access Act, and would require each state licensing authority to grant a license to any applicant who: (1) successfully completed the eighth grade; (2) completed an apprenticeship approved by the division of professional registration or the United States Department of Labor, or otherwise permitted under state or federal law; and (3) passed an examination, if deemed necessary.
Status: 3/10/20: (S) from Professional Registration, voted Do Pass
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
LB 857 – Occupational Regulation Reform. Would require each state agency to review its promulgated rules and regulations 10 years after their adoption, report on the statutory authorization for them, and assess whether they are accomplishing the statutory purposes.
Status: 1/22/20: in Government, Military and Veterans Affairs. Hearing scheduled for 1/31/20
LB 908 – Mortgage Licensing. Would amend the Delayed Deposit Services Licensing Act to add NMLS licensing and registration provisions for mortgage loan originators, mortgage bankers, installment loan companies, and other state-regulated financial services entities and industries. On and after January 1, 2021, licensees under the Act would be required to be licensed or registered through NMLS. The application is to include a surety bond in the base amount of $50,000 which, on or after January 1, 2021, shall be increased by $50,000 for each branch office established.
Status: 2/6/20: from Banking, Commerce and Insurance: Placed on General File
LB 909 – Delayed Deposit Services Providers. Would revise the bond requirement for delayed deposit services providers so that effective January 1, 2021, the bond amount shall be increased by $50,000 for each branch office. Current law requires a single $50,000 bond. This bill also provides that effective January 1, 2021, providers will be required to be licensed through NMLS.
Status: 3/11/20: placed on Final Reading with ST49
LB 1187 – Occupational Licensing. Provides for interstate reciprocity among many occupational licenses.
Status: 2/3/20: in Government, Military and Veterans Affairs. Hearing scheduled for 2/13/20.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 384 – Home Improvement Contractors. Would, with respect to home improvement contractors, expand registration requirements, add a registration exemption, require certain disclosures, impose a bond requirement, and add various provisions affecting bond liability and cancellation. It would enact registration and insurance requirements, and a bonding exemption, on certain low-value home improvement contractors. Contractors not otherwise exempt under law who enter into a home improvement contract or contracts with any consumer in a registration period that obligates the consumer to pay, in the aggregate, an amount less than $500 in a registration period, or such other amount as the director may determine by regulation, shall be subject to registration requirements, but shall not be subject to bonding requirements. Such contractors shall be required to maintain a minimum amount of commercial general liability insurance that shall be set by the director by regulation and may be less than $500,000 per occurrence.
Status: 1/14/20: (A) introduced and referred to Regulated Professions
AB 606 – Adjoining Property Entry. Would permit an owner attempting to make improvements or repairs to his property to enter an adjoining property without being deemed guilty of criminal trespass or incurring liability for civil trespass by satisfying certain prerequisites and posting a $1,000 bond with the chief law enforcement officer of the municipality in which the adjoining property is located to protect the adjoining owner from potential actual property damage caused by the entry.
Status: 1/14/20: (A) introduced and to Housing
AB 993 – e-Cigarettes - Vapor Licenses and Taxes. Would create two types of vapor business licenses: basic vapor licenses for entities seeking to sell electronic smoking devices and liquid nicotine containers, and plenary vapor business licenses for entities seeking to sell non-cartridge vaping liquid. Existing provisions concerning tax bonds remain intact.
Status: 1/14/2020: (A) introduced and referred to Health
AB 1150 – Home Restoration Contractors. Would allow the Director of the Division of Consumer Affairs in the Department of Law and Public Safety to impose a bond requirement on home restoration contractors. The director may require a home restoration contractor engaged in performing home restorations, in addition to the insurance required, to post a performance bond in favor of the owner, lessee, tenant, or other party to a home improvement contract for home restoration, in an amount as the director may establish by regulation. Every required bond shall provide that the issuer of that bond shall give the director written notice of cancellation or non-renewal of the bond within 10 days of the cancellation or non-renewal.
Status: 1/14/20: (A) introduced and referred to Regulated Professions
AB 1418 – Used Motor Vehicle Dealers. Would establish the Consumer Used Car Dealer Protection Fund which would be used to satisfy unpaid judgments of consumers of used motor vehicle dealers. A used motor vehicle dealer who has not been subject to a claim against his dealer's bond or against the fund for three consecutive years would not be required to hold the $50,000 bond. Such dealer may elect to maintain continuous bonding. Before the chief administrator issues a used motor vehicle license, an applicant must file a $50,000 bond, which would be in addition to the bond required under C.56:8-77). The bond would be conditioned that the applicant will not practice fraud or make any fraudulent representation in connection with the sale or lease of a used motor vehicle, or violate any provision of Chapter 10 of Title 39 in the conduct of the applicant's business. A consumer shall have a claim against the bond, and may recover damages awarded by a court of competent jurisdiction if the consumer suffers certain damages. The surety's liability would be limited to actual damages and shall not include punitive damages or attorney's fees assessed. In cases in which a used motor vehicle dealer's surety is liable pursuant to this section, the surety shall be liable only for the first $50,000 in claims against the dealer. Thereafter, the fund would be liable for the next $75,000 in those cases in which the fund itself may be liable. There would be aggregate liability and a 30-day cancellation clause.
Status: 1/14/20: (A) introduced and referred to Transportation and Independent Authorities
AB 3456 – Private Career Schools. Would require a private career school to obtain a performance bond payable to the Commissioner of Labor and Workforce Development in an amount to be determined by the Commissioner. The proceeds of the bond would be used to pay approved refunds or to reimburse the Private Career School Student Tuition Protection Fund. The Department would pay approved claims from the bond whenever possible. If the bond is insufficient to pay all approved claims, the Department will direct the State Treasurer to issue a refund check.
Status: 2/25/20: (A) introduced and referred to Higher Education
Related Bill: SB 1807
SB 731 – Parental Rights and Property Tax Reduction Act - Tuition. Under the Act, a student enrolled in grades K-12 would be eligible to receive a public tuition allowance to enroll in a participating school. To be eligible to participate in the program, the nonpublic school must demonstrate its financial accountability. In the event that the nonpublic school receives $50,000 or more in public tuition allowance funds during the school year, the nonpublic school shall demonstrate its financial viability by: (1) filing with the department, prior to the beginning of the school year, a surety bond payable to the state in an amount equal to the aggregate amount of public tuition allowance funds expected to be paid during the school year to the parents or guardians of eligible students enrolled in the participating nonpublic school under the program; or (2) filing with the department, prior to the beginning of the school year, financial information that demonstrates the school has the ability to pay an aggregate amount equal to the amount of the public tuition allowance funds expected to be paid during the school year to the parents or guardians of eligible students enrolled in the participating nonpublic school under the program.
Status: 1/14/20: (S) introduced and referred to Education
SB 1005 – Alcoholic Beverages. Would create a new taxable category of alcoholic beverages called flavored malt beverages distinct from beer and retain the existing provisions requiring licensees to post a tax bond.
Status: 1/30/20: (S) introduced and referred to Law and Public Safety
SB 1165 – Money Transmitters. Would add a provision to existing law that if a licensee has insufficient assets to make a purchaser or holder whole, the purchaser or holder will be entitled to reimbursement under the surety bond.
Status: 2/3/20: (S) introduced and referred to Commerce
SB 1544 – Home Improvement Contractors. Would amend the Contractors' Registration Act to add a requirement that every registered contractor who is engaged in home improvement maintain a $50,000 bond or its equivalent, executed to the State for the use and benefit of any consumer who incurs damages or suffers any loss arising out of a violation of the Act by the contractor. The bond would cover restitution and penalties. Any aggrieved person may maintain an action against the contractor and/or the surety. The director may make a claim against the bond on behalf of a consumer. The aggregate liability of the surety to all persons for all breaches of the conditions of the bond shall not exceed the amount of the bond.
Status: 2/13/20: (S) introduced and referred to Commerce
SB 1807 – Private Career Schools. Would require a private career school to obtain a performance bond payable to the Commissioner of Labor and Workforce Development in an amount to be determined by the Commissioner. The proceeds of the bond would be used to pay approved refunds or to reimburse the Private Career School Student Tuition Protection Fund. The Department would pay approved claims from the bond whenever possible. If the bond is insufficient to pay all approved claims, the Department will direct the State Treasurer to issue a refund check.
Status: 2/24/20: (S) introduced and referred to Higher Education
Related Bill: AB 3456
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 6655 – Automobile Brokers. Would revise the existing law for automobile brokers to specify that brokers for new vehicles would be subject to the law, including the licensing and bonding requirements. Current law requires a $100,000 bond conditioned on the payment of all valid bank drafts, including checks, drawn for the purchase of motor vehicles and safekeeping of all customer deposits related to the sale of a motor vehicle between the time of receipt and the transfer of a good title to the customer.
Status: 2/24/20: (A) amend and recommit to Consumer Affairs and Protection; Print Number 6655E
Related Bill: SB 4364
AB 7191 – Debt Collection Agencies. Would require debt collection agencies to be licensed and post a surety bond or other security. The bond amount would be based on the number of persons the licensee employs in an amount ranging from $10,000 to $75,000. The bond would secure the licensee's compliance with the applicable law and the payment of all costs and penalties.
Status: 3/12/20: (A) amend and recommit to Consumer Affairs and Protection; Print Number 7191A
AB 9095 – Mortgage Lenders. Would authorize and govern certain reverse mortgages termed "reverse cooperative apartment unit loans" made to persons 62 years of age or older. Every authorized lender and assignee must obtain a surety bond in the amount of $100,000 for coverage of claims against the lender/assignee for failure to perform their obligations to the borrower.
Status: 1/17/20: (A) introduced and referred to Banks
Related Bill: SB 7580
AB 9508 – Telemarketers, Debt Collectors, and Wireless Facilities. This is a budget bill that would impose or allow several new bond requirements on telemarketers, debt collectors and wireless facilities. The bill also would impose a prevailing wage requirement on projects exceeding $5,000,000 which have 30% or more in public funding. The bonds for telemarketers and debt collectors would have to be in the amount of $25,000.
Status: 4/2/20: (A) Substituted by SB 7508B
Related Bill: SB 7508
SB 3231 – Massage Therapy Businesses. Would require massage therapy businesses to be licensed and provide evidence of obtaining a bond or liability insurance. The bill does not specify any further bonding requirements.
Status: 1/8/20: (S) referred to Consumer Protection
SB 4364 – Automobile Brokers. Would revise the existing law for automobile brokers to specify that brokers for new vehicles would be subject to the law, including the licensing and bonding requirements. Current law requires a $100,000 bond conditioned on the payment of all valid bank drafts, including checks, drawn for the purchase of motor vehicles and safekeeping of all customer deposits related to the sale of a motor vehicle between the time of receipt and the transfer of a good title to the customer.
Status: 1/8/20: (S) referred to Transportation
Related Bill: AB 6655
SB 6728 – Third-Party Payroll Service Providers. Would direct the Superintendent of Financial Services and the Commissioner of Taxation and Finance to review the adequacy of employee protections and small business employer protections in the payroll services industry. The bill sets forth the minimum required components of this review, which would have to include examining whether to require payroll service providers to post bonds, obtain insurance, or utilize other risk management tools to address any cases in which payroll monies owed to employees on behalf of businesses are stolen, misappropriated, or otherwise become unavailable after being transmitted from an employer to a payroll service provider or an affiliated entity. The review also would have to address the feasibility and advisability of the Department of Financial Services having regulatory oversight over third-party payroll service providers.
Status: 1/28/20: (A) received in Assembly; referred to Insurance
SB 6734 – Voting Machine Vendors. Would revise the existing requirement for vendor contracts for voting machines by increasing the minimum number of years from five years to ten years during which the contract must guarantee that a contractor will keep the machines and systems maintained in good working order without additional cost and to perform satisfactorily its training and service obligations under the contract. A bond is required to secure that the vendor will meet this obligation.
Status: 1/8/20: (S) referred to Elections
Related Bill: AB 8449
NEW LAW: SB 6947 – Trampoline Parks. Would amend existing law to remove requirements that trampoline parks obtain a business permit along with the associated requirements for submitting an application, passing inspections and satisfying requirements for liability insurance or a surety bond.
Status: 4/17/20: signed by the Governor; Chapter 49; effective
SB 7018 – Towing Companies. Would increase the bond required as a condition of the issuance of a license to engage in towing from $5,000 to $25,000. Discretionary increases would also have a new threshold, with a maximum of $250,000.
Status: 1/8/20: (S) introduced and referred to Cities
NEW LAW: SB 7506 – Transportation Management Brokers. As amended, the bill allows the Commissioner of Health to contract with a transportation provider for Medicaid patient services and to set the amount of the required bond. The transportation management broker selected through a competitive bidding process will enter into a contract with the Commissioner and file a bond in an amount and form to be determined by the Commissioner. The purpose of the bond is to provide the sole source of recourse to providers of Medicaid transportation services, other than the broker, that cannot receive payment for services properly provided if the broker becomes insolvent. To the extent permitted by law, the surety bond shall provide that any funds that remain after such provider liabilities are satisfied shall be paid to that state.
Status: 4/3/20: signed by the Governor; Chapter 56; see bill for effective dates
NEW LAW: SB 7508 – Telemarketers, Debt Collectors, and Wireless Facilities. This is a budget bill that would impose or allow several new bond requirements on telemarketers, debt collectors and wireless facilities. The bill also would impose a prevailing wage requirement on projects exceeding $5,000,000 which have 30% or more in public funding. The bonds for telemarketers and debt collectors would have to be in the amount of $25,000.
Status: 4/3/20: signed by the Governor; Chapter 58; effective
Related Bill: AB 9508
SB 7580 – Mortgage Lenders. Would authorize and govern certain reverse mortgages termed "reverse cooperative apartment unit loans" made to persons 62 years of age or older. Every authorized lender and assignee must obtain a surety bond in the amount of $100,000 for coverage of claims against the lender/assignee for failure to perform their obligations to the borrower.
Status: 1/28/20: (S) introduced and referred to Banks
Related Bill: AB 9095
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 966 – Fidelity. Would allow the State Board of Community Colleges and the board of trustees for any community college to obtain an insurance policy in lieu of the bond required under existing law for state employees and the employees of a community college that handle funds or property.
Status: 1/21/20: First session adjourned, carried over to second session; Vetoed by the Governor. Veto overridden on 9/11/19 by vote of 55-15.
Related Bills: HB 668, SB 436
SB 364 – Receivers. Would revise the existing requirements for receivers to post a bond to eliminate a requirement that two sufficient sureties must provide the bond. The bill would require the bond to be issued by a corporate surety. Cash bonds also would be accepted.
Status: 1/22/20: First session adjourned, carried over to second session.
Related Bill: HB 919
SB 473 – Barber Schools. Would require barber schools to post a bond in an amount at least equal to the maximum amount of prepaid tuition held at any time by the school during the last fiscal year, but in no case shall the bond be less than $10,000.
Status: 4/3/19: (S) introduced and referred to Rules and Operations of the Senate.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
D 32 – Grain Buyers, Brokers, Processors, and Warehousemen. Would apply existing license requirements for public warehousemen to any grain processor, defined as an entity that purchases grain to process into end products that are of a substantially different makeup or nature than the original grain. The agriculture commissioner shall require a bond in an amount based on the dollar value of the grain purchased; calculated using the value of the amount of grain intended to be purchased by a new licensee during the first year of operation, or the three-year rolling annual average of the value of grain purchased at the time of license renewal; and set at 15% of the value of the intended or actual purchase amount of grain, rounded to the nearest $10,000.
Status: 12/9/19: Filed. Dated 12/12/2019.
Note: North Dakota does not have a regular legislative session in 2020; this is an Interim Committee bill draft.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 263 – Occupational Regulations. Would prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation for which a license is required solely or in part because of a prior conviction of a crime, unless the crime directly relates to the duties and responsibilities for the licensed occupation. The bill would require state licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify a license applicant to meet this standard. State license authorities would be prohibited from using terms such as "moral turpitude" and "good character." State licensing authorities also could not consider a license applicant's arrests without a conviction. The bill would revise existing licensing laws concerning criminal convictions to require compliance with this process and to eliminate references to moral turpitude and good character requirements.
Status: 2/6/20: (H) from Commerce and Labor: Recommended as substituted
HB 399 – Cosmetology Schools. Would modify the bond amount required for cosmetology schools from $10,000 to 10% of the school's gross income from tuition, fees, and other required institutional charges during the preceding calendar year; $10,000 minimum, $250,000 maximum. A private career school may obtain a bond in a greater amount. Barber schools would be subject to certain requirements imposed on cosmetology schools.
Status: 11/12/19: (H) referred to State and Local Government
HB 432 – Occupational Licensing. Would require an Ohio occupational licensing authority to issue a license or government certification to an applicant who holds a license, government certification, or private certification or has satisfactory work experience in another state under certain circumstances.
Status: 12/10/19: (H) read second time; referred to State and Local Government
HB 452 – Occupational Regulations Reform. Simply states that the General Assembly intends to enact legislation revising and streamlining the State's occupational regulations to better accommodate Ohio's workforce. This bill might be intended as a placeholder for future amendment affecting occupational regulations.
Status: 1/28/20: (H) referred to State and Local Government
SB 1 – Occupational Regulations Reform. Would provide for the review the regulatory requirements for occupational licensing. All state agencies would be required to compile an inventory of regulatory restrictions.
Status: 5/20/20: (H) Insists on amendments; asks for committee of conference
SB 245 – Cosmetology Schools. Would modify the bond amount required for cosmetology schools from $10,000 to 10% of the school's gross income from tuition, fees, and other required institutional charges during the preceding calendar year; $10,000 minimum, $250,000 maximum. A private career school may obtain a bond in a greater amount. Barber schools would be subject to certain requirements imposed on cosmetology schools.
Status: 12/11/19: (S) referred to Transportation, Commerce and Workforce
SB 246 – Occupational Regulations Reform. Would expand reciprocity in occupational licensing for out-of-state licensees. Existing provisions affecting bonds and surety remain without revision.
Status: 12/4/19: (S) read second time; referred to General Government and Agency Review
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 3532 – Tobacco Products. Would modify various provisions affecting tobacco product taxes and make wholesalers liable for tax obligations. It would eliminate distributing agent licenses but retain wholesale and retail licenses. It would also remove jobbers, retailers and consumers, but not wholesalers, from the existing $25,000 surety bond, collateral or cash requirement for those who purchase or come into possession of untaxed merchandise.
Status: 3/16/20: (S) second reading, referred to Finance
HB 4112 – Coops, Condominiums and Planned Communities. Would create the Uniform Common Interest Ownership Act to govern cooperatives, condominiums and planned communities. Among other things, it would require an association to maintain, to the extent reasonably available and subject to reasonable deductibles, property insurance, commercial general liability insurance and fidelity insurance. In addition, in the case of a sale of a unit where delivery of a public offering statement is required under the act, a seller shall provide a surety bond or substitute collateral for or insurance against the lien as provided for liens on real estate.
Status: 2/4/20: (H) referred to Rules
SB 1169 – Private Schools. Would expand the authority of the Oklahoma Board of Private Vocational Schools to fix minimum standards through promulgation and adoption of rules and regulations for the operation of private schools, which would now include authority to increase the required amount of the surety bond or certificate of deposit.
Status: 5/6/20: (H) second reading, direct to calendar
SB 1182 – Private Schools. Would require private vocational schools to retain certain academic records, transcripts and completion certificates in the form of: (1) physical copies; (2) documented electronic means to maintain records off-premises; or (3) establishing a special purpose surety bond in an amount of not less than $20,000 in favor of the Oklahoma Board of Private Vocational Schools to be used by the Board after the school closes to have student academic records and transcripts retrieved, recovered and digitized by a commercial third-party vendor to maintain the records.
Status: 5/6/20: (H) second reading, direct to calendar
SB 1439 – Oil and Gas Wells. Would double the financial assurance requirements for any person who drills or operates any well or unit for the exploration, development or production of oil or brine, or as an injection or disposal well. As amended, the amount of such letter of credit, cash, cashier's check, certificate, bond, receipt or other negotiable instrument shall be in the amount of $50,000 per well. If an operator operates more than four wells subject to this requirement, the operator may file appropriate evidence of financial ability in a blanket amount of $200,000.
Status: 4/6/20: (H) withdrawn from Energy and Natural Resources
SB 1595 – Vendor Permits. Would shorten from three years to one year the term for vendor permits, but would retain the existing provision that the Tax Commission may require an applicant for a Group Three vendor permit to furnish a surety bond or other security as the Commissioner may deem necessary to secure payment of taxes.
Status: 5/21/20: Vetoed by the Governor
SB 1678 – Occupational Regulations Reform. Would establish the state policy for the regulation of occupations, establish certain rebuttable presumptions, require certain reporting, set dates for certain review of occupational licenses and call for sunset reports, among other things. Where the state finds it is necessary to displace competition, it would use the least restrictive regulation to protect consumers from present, significant, and substantiated harms that threaten public health and safety.
Status: 2/6/20: (S) referred to Business, Commerce and Tourism
SB 1679 – Occupational Licensing. Would create the Interstate Mobility and Universal Recognition Occupational Licensing Act, and enable cross-state reciprocity for occupational licenses and government certification.
Status: 2/6/20: (S) referred to Business, Commerce and Tourism
SB 1708 – Occupational Licensing. Would establish a process to review criminal records to reduce an offender's disqualification from state occupational recognition.
Status: 2/6/20: (S) referred to Business, Commerce and Tourism
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 2140 – Home Improvement Contractors. Would create the Contractor Bonding for Adjoining Properties Act. Under the Act, a contractor performing a home improvement project (with certain exceptions) or a new home construction project on adjoining property to provide a surety bond in the amount of $500,000 for each property that adjoins the property on which the contractor's project is being performed. The bond would only be used to cover damages to any adjoining property caused by the contractor.
Status: 12/17/19: (H) introduced and referred to Commerce
SB 23 – Estates Laws. Would revise the laws pertaining to guardians of incapacitated persons. The bill provides that except as otherwise provided, every guardian shall file a bond in an amount the court considers necessary, having regard to the value of the personal estate which will come into the control of the guardian.
Status: 4/3/20: (S) referred to Judiciary
SB 790 – Oil and Gas Wells. Would rewrite the law for conventional oil and gas wells. Under current law, a surety bond or other security is required in connection obtaining a permit for the wells. The existing law sets forth a formula to determine the bond amount, which is calculated based on the depth of the well and the number of wells that are in operation. A blanket bond in the amount required under this existing formula is accepted to cover all wells. The bill provides that the bond amount would have to be for $2,500 per well for at least two years, at which point the Environmental Quality Board will adjust the bond amount every five years based on the projected well plugging costs. A blanket bond would be accepted for an amount equal to $25,000 for at least five years, at which point the Board could adjust the bond to account for well plugging costs every two years. The maximum increase would be $10,000 for the blanket bond.
Status: 5/28/20: (S) referred to Rules and Executive Nominations
Related Bill: HB 1635
NEW LAW: SB 841 – Vendors. Would authorize the proposed Health Care Cost Containment Council to enter into contracts with vendors for the purchase of services and for the purchase or lease of supplies and equipment. The Council could require the vendor to furnish a performance bond in an amount determined by the Council.
Status: 4/20/20: signed by the Governor; Act No. 15; effective immediately
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 3197 – Student Loan Servicers. Would create the Student Loan Bill of Rights Act and require licensure and bonding for any student loan servicer. Such licensees must file a surety bond in an amount determined by the administrator, based on the total dollar amount of loans subject to regulation by the administrator in a calendar year in this State pursuant to the following: (a) dollar volume of student education loans up to $49,999,999 - $50,000 bond; (b) dollar volume of student education loans from $50,000,000 to $249,999,999 - $100,000 bond; (c) dollar volume of student education loans greater than $250,000,000 - $150,000 bond. In no case shall the surety bond less than $50,000.
Status: 2/20/20: (S) introduced, read first time and referred to Education
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SB 25 – Tobacco Product Manufacturers. Would require tobacco product manufacturers to post a surety bond at least 10 days before the beginning of each calendar quarter in order to sell their products in the state. The amount of the bond would be the greater of the largest required deposit into a qualified escrow fund by the manufacturer or its predecessor for any of the 12 preceding calendar quarters, or $25,000.
Status: 3/18/20: signed by the Governor; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1305 – Public Officials. Would require each county government to report to the comptroller of the treasury on or before 12/31 whether the county government has elected to obtain blanket surety bond coverage or an insurance policy for its employees.
Status: 5/27/20: (H) placed on subcommittee calendar - Finance, Ways and Means Subcommittee for 6/3/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 203 – Beer Delivery License. Would create the Beer Delivery License Act under which licensees would be required to post a cash or surety bond, payable to the department, in the penal sum of $5,000.
Status: 3/12/20: (H) strike enacting clause; to House file for bills not passed
NEW LAW: HB 312 – Litigation Financiers. Would require a litigation funding provider to be registered and obtain a bond in an amount of at least $50,000.
Status: 3/24/20: signed by the Governor; effective 5/12/20
HB 332 – Scholarship Programs. Would create the Special Needs Opportunity Scholarship Program and related income tax credits. The bill would require a qualifying school that receives scholarship money equal to or more than $100,000 to file with a scholarship granting organization a surety bond in an amount equal to the aggregate amount of scholarship money expected to be received during the school year, or financial information that demonstrates the financial viability of the school.
Status: 4/1/20: Vetoed by the Governor
NEW LAW: HB 4003b – Scholarship Programs. Would create the Special Needs Opportunity Scholarship Program and related income tax credits. The bill would require a qualifying school that receives scholarship money equal to or more than $100,000 to file with a scholarship granting organization a surety bond in an amount equal to the aggregate amount of scholarship money expected to be received during the school year, or financial information that demonstrates the financial viability of the school.
Status: 4/28/20: signed by the Governor; effective 1/1/21
NEW LAW: SB 37 – Electronic Cigarettes. Would expand taxes to new nicotine products, and "require a manufacturer, jobber, distributor, wholesaler, or retailer that is responsible ... for the collection of tax on an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device to post a bond" between $500 and $1500 depending on whether the bond is posted in combination with other required bonds.
Status: 3/30/20: signed by the Governor; effective 7/1/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 550 – Asset Locators. Requires all asset locators seeking to interact with the Vermont Secretary of Administrator on behalf of apparent owners must first register with the Administrator. In order to obtain and maintain registered status, all asset locators must post a performance bond of not less than $10,000 to insure the Administrator against any fraudulent or mistaken claims that may arise as a result of an asset locator's representation of an apparent owner.
Status: 4/28/20: signed by the Governor; effective 1/1/21
HB 603 – National Guard. Would repeal bond requirements currently imposed on certain members of the state militia known as the National Guard, including its quartermaster general and all officers who are responsible for public military property or funds.
Status: 1/7/20: (H) introduced and referred to General, Housing and Military Affairs
HB 650 – Horse Racing. Would repeal numerous statutory provisions concerning horse racing, including provisions requiring certain events to obtain a license and provide a $75,000 bond.
Status: 3/13/20: (S) read first time and referred to Government Operations
SB 209 – Milk Handlers. Seeks a report on the bonding requirements for milk handlers.
Status: 1/7/20: (S) read first time and referred to Agriculture
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 4 – Casino Gaming Operations. Would allow casino gaming in certain qualifying cities. Licensed operators would be subject to the requirements of the Virginia Lottery, including posting a bond as determined by the director.
Status: 4/22/20: House and Senate accepted Governor's recommended amendments. Reenrolled. Chapter 1197.
Related Bill: SB 36
NEW LAW: HB 10 – Student Loan Servicers. Would require licensure of qualified education loan servicers, whether or not they have an office or any other physical presence in Virginia, and applicants would be required to post a bond in an amount determined by the commissioner; $50,000 minimum, $500,000 maximum. The bond would be conditioned on the applicant or licensee performing all written agreements pertaining to qualified education loans, correctly and accurately accounting for all funds received, and conducting its business in conformity with the law. Any person damaged by the principal may proceed on the bond to recover damages. The aggregate liability under the bond shall not exceed the penal sum.
Status: 4/22/20: House and Senate accepted Governor's recommended amendments. Reenrolled. Chapter 1198.
NEW LAW: HB 390 – Alcoholic Beverage Control Licenses. Would reorganize alcoholic beverage control licenses into a three-tiered structure with various associated fees. Existing provisions concerning surety and tax bonds remain.
Status: 4/10/20: approved by the Governor; Chapter 1113; effective 7/1/20
NEW LAW: HB 466 – Business License Waivers. Would raise the permissible threshold for business license waivers granted by the governing body of any county, city or town with a population greater than 500,000. Currently, such governing bodies may waive business or professional license requirements for any person within its jurisdiction having gross receipts of less than $100,000. The new threshold for a possible license waiver would be gross receipts of $200,000 or less.
Status: 3/10/20: approved by the Governor; Chapter 242; effective 7/1/20
NEW LAW: HB 789 – Consumer Finance Companies. Would amend existing and add new provisions governing consumer finance companies and access partners, including internet lenders dealing with Virginians, which limit certain fees, rates and terms. A license would be required along with a bond in the amount of $50,000 per location, or such greater sum as the Commissioner may require, but not to exceed a total of $500,000. The bond would be conditioned upon the applicant/licensee performing all written agreements with borrowers or prospective borrowers, correctly and accurately accounting for all funds received, and conducting its licensed business in conformity with all applicable laws. Direct third-party liability.
Status: 4/22/20: House and Senate accepted Governor's recommended amendments. Reenrolled. Chapter 1215.
NEW LAW: HB 896 – Sports Wagering. Would amend the state lottery statutes to allow for the issuance of permits for sports betting. An applicant could apply to the director of the Virginia Lottery, and the director may require bond or other surety in an amount to be determined by rules and regulations adopted by the Virginia Lottery Board.
Status: 4/22/20: House and Senate accepted Governor's recommended amendments. Reenrolled. Chapter 1218.
NEW LAW: HB 967 – Occupational Licensing. Would permit expedition of professional licenses and certifications obtained through reciprocity with other jurisdictions for spouses of military service members by allowing a board to waive any requirement relating to experience if the board determines that the documentation provided by the applicant supports such a waiver.
Status: 3/2/20: approved by the Governor; Chapter 28; effective 7/1/20
NEW LAW: HB 1553 – Debt Settlement Services Providers. Would impose a license and bond requirement on debt settlement services providers who engage in "any action or negotiation initiated or taken on behalf of any consumer with any creditor of the consumer for the purpose of obtaining debt forgiveness of all or a portion of the credit extended by the creditor to the consumer or a reduction of payments, charges, or fees payable by the consumer." An application for a license shall be accompanied by a bond filed with the Commissioner with corporate surety authorized to execute the bond in the Commonwealth, in the principal amount as determined by the Commission. The amount of the bond shall be not less than $25,000 nor more than $350,000. The form of the bond shall be approved by the Commission. The bond shall be continuously maintained thereafter in full force, and the Commission may require the principal amount to be adjusted as it deems necessary.
Status: 4/7/20: approved by the Governor; Chapter 785; effective 7/1/21
HB 1677 – Electric Utilities. Would create the Virginia Energy Reform Act requiring each incumbent electric utility to segregate its business activities into separate units for generation, transmission and retail service. Among numerous requirements is a requirement that the Commission shall promulgate regulations to govern third-party power providers acting as retail sellers, and in so doing, the Commission shall "require minimum capitalization or other bond or surety that, in the judgment of the Commission, is necessary for adequate consumer protection and in the public interest."
Status: 2/4/20: (H) in Labor and Commerce: Continued to 2021
NEW LAW: SB 36 – Casino Gaming Operations. Would allow casino gaming in certain qualifying cities. Licensed operators would be subject to the requirements of the Virginia Lottery, including posting a bond as determined by the director.
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1248.
Related Bill: HB 4
NEW LAW: SB 77 – Student Loan Servicers. Would require licensure of qualified education loan servicers, whether or not they have an office or any other physical presence in Virginia, and applicants would be required to post a bond in an amount determined by the commissioner; $50,000 minimum, $500,000 maximum. The bond would be conditioned on the applicant or licensee performing all written agreements pertaining to qualified education loans, correctly and accurately accounting for all funds received, and conducting its business in conformity with the law. Any person damaged by the principal may proceed on the bond to recover damages. The aggregate liability under the bond shall not exceed the penal sum.
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1250.
NEW LAW: SB 384 – Sports Wagering. Would amend laws governing the state lottery to include and regulate sports betting. The Director of the Virginia Lottery would issue permits and may require "bond or other surety satisfactory to the Director from permit holders in such amount as provided in the rules and regulations" adopted by the Virginia Lottery Board. Each "permit holder shall either (i) be bonded by a surety company entitled to do business in the Commonwealth in such amount and penalty as may be prescribed by the regulations of the Board or (ii) provide other surety as may be satisfactory to the Director, payable to the Department, and conditioned on performance of its duties under this article. Such surety shall be prescribed by Board regulations and shall not exceed a reasonable amount." As amended, clause (ii) above would be amended to also allow a "letter of credit, or reserve" not just "other surety."
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1256.
NEW LAW: SB 389 – Alcoholic Beverage Control Licenses. Would reorganize alcoholic beverage control licenses into a three-tiered structure with various associated fees. Existing provisions concerning surety and tax bonds remain.
Status: 4/10/20: approved by the Governor; Chapter 1114; effective 7/1/20
NEW LAW: SB 421 – Loan Access Partners and Internet Lenders. Would govern loan access partners and internet lenders, requiring a license and bond filed with the Commissioner with corporate surety authorized to execute such bond in the Commonwealth, in the sum of $50,000 per location, or such greater sum as the Commission may require, but not to exceed a total of $500,000. Amendments would also increase the discretionary bond requirements, if the Commissioner so requires, for licensed short-term lenders from a maximum of $50,000 to a new maximum of $500,000.
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1258.
NEW LAW: SB 444 – Election Recounts. Would reorganize provisions relating to election recounts, but retain the requirement to "post a bond with surety with the court in the amount of $10 per precinct in the area subject to recount." As before, if the petitioner wins the recount, the bond shall not be forfeited; if the petitioner loses the recount, the bond shall be forfeited only to the extent of the assessed costs; and if the assessed costs exceed the bond, he shall be liable for such excess.
Status: 4/8/20: approved by the Governor; Chapter 886; effective 7/1/20
NEW LAW: SB 971 – Electronic Gaming Devices. Would authorize the licensing of manufacturers, distributors, operators, and hosts of electronic gaming devices. The director the Virginia Lottery may require a bond or other surety from licensees in such amount as provided in the rules and regulations adopted by the Virginia Lottery Board.
Status: 4/22/20: Senate and House accepted Governor's recommended amendments. Reenrolled. Chapter 1277.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1124 – Degree-Granting Educational Institutions. Would revise existing law concerning the surety bond or other security, and the Student Achievement Council Tuition Recovery Trust Fund, required for degree-granting institutions to provide that students could make claims against the bond and the recovery fund for any damages suffered as a result of program closures and violations of the law governing for-profit degree-granting institutions and private career schools. The bill would also allow the Student Achievement Council to eliminate the bond requirement for any degree-granting institution if the recovery fund has been met and the Council determines that students would be adequately protected without a surety bond or other security in place.
Status: 1/13/20: (H) by Order of Resolution, reintroduced and retained in present status.
HB 1259 – Guardianships and Conservatorships. Would revise the existing law for guardians and conservators to allow the court to require an alternative asset protection arrangement to be furnished in lieu of the surety bond. The bill provides that the bond would have to be in the amount of the aggregate capital value of the estate, plus the estimated income for the accounting and report review interval, less the value of property deposited under an asset protection arrangement requiring a court order for its removal and real property the conservator lacks power to sell or convey without specific court authorization. Current law provides that the court determines the bond amount based on the value of the estate.
Status: 1/13/20: (H) by Order of Resolution, reintroduced and retained in present status.
Related Bill: SB 5604
HB 1770 – Occupational Regulations. Would require the least restrictive regulation to be adopted if it is determined that an occupational regulation is needed to protect consumers. The bill follows the ALEC model for determining what the least restrictive regulation is in that required bonding and insurance would be considered more restrictive. The standing committees in the legislature would be charged with reviewing the occupational regulations under their jurisdiction using these standards in a five-year cycle that the bill would create. The committees would have to report on their recommendations for the occupational regulations that they reviewed. Any changes to these regulations would have to be the least restrictive option. The bill provides that if the need for an occupational regulation is to protect consumers against potential damages from failure by providers to complete a contract fully or up to standards, the recommended course of action should be to require that providers be bonded. The bill also would establish a process for persons with a criminal record to file a preliminary license application with the occupational licensing board to determine whether their criminal record disqualifies them for an occupational license.
Status: 1/13/20: (H) by Order of Resolution, reintroduced and retained in present status.
HB 5235 – Plumbing Contractors. Would require plumbing contractors to post a $6,000 license bond or assigned savings account. The bond would be conditioned that the contractor will pay persons performing labor, including employee benefits, for the contractor, pay all taxes and contributions due to the State, and pay all persons furnishing material or renting or supplying equipment to the contractor, and pay all amounts that may be adjudged against the contractor by reason of breach of contract, including improper work. Direct actions against the bond would be permitted, but the surety's aggregate liability would not exceed the bond amount.
Status: 1/13/20: (S) by Order of Resolution, reintroduced and retained in present status
NEW LAW: HB 6029 – Uniform Directed Trust Act. Would, unless the terms of a trust express otherwise, extend the existing requirement that a trustee give a bond to secure performance to include a trust director. Trust director is defined as a person who is granted a power of direction by the terms of a trust to the extent the power is exercisable while the person is not serving as a trustee.
Status: 4/2/20: signed by the Governor; Chapter 303; effective 1/1/2021
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 2002 – Education Savings Accounts. Would authorize the state treasurer to adopt regulations and policies for an education savings account program, which would include requirements for education service providers to post a surety bond if they receive $100,000 or more in funds from education savings accounts.
Status: 1/8/20: (H) introduced and referred to Education
HB 2203 – Contractor Licensing Act. Would create the West Virginia Contractor Licensing Act, declaring "that all persons desiring to perform contracting work in this state be duly licensed to ensure capable and skilled craftsmanship utilized in construction projects in this state, both public and private." The West Virginia Contractor Licensing Board may impose disciplinary sanctions for non-compliance with the licensure obligations, including among other available sanctions, an order compelling the contractor to secure financial assurance as follows: "Order a contractor who has been found, after hearing, to have violated any provision of this article or the rules of the board to provide, as a condition of licensure, assurance of financial responsibility. The form of financial assurance may include, but is not limited to, a surety bond, a cash bond, a certificate of deposit, an irrevocable letter of credit or performance insurance: Provided, that the amount of financial assurance required under this subdivision may not exceed the total of the aggregate amount of the judgments or liens levied against the contractor or the aggregate value of any corrective work ordered by the board or both: Provided, however, that the board may remove this requirement for licensees against whom no complaints have been filed for a period of five continuous years."
Status: 1/8/20: (H) introduced and referred to Government Organization
HB 3071 – Cigarette Retailers. Would levy an excise tax on sales of "e-cigarette liquid" by adding it within existing provisions concerning cigarettes. Existing statutory provisions concerning bonds remain without revision and still provide that "the Tax Commissioner may require wholesalers, sub jobbers or retail dealers to file a continuous surety bond in an amount to be fixed by the Tax Commissioner but no less than $1,000."
Status: 1/8/20: (H) introduced and referred to Health and Human Resources
HB 4011 – Professional Licenses. Would enact rules governing licensure boards for numerous professions. It would also impose licensure requirements on private detectives, private investigators and security guards, requiring a bond in the sum of $2,500 conditioned upon the faithful and honest conduct of such business. Real estate appraisal management companies would be licensed, requiring a surety bond not the exceed $100,000. Real estate licenses would require a $2,000 bond. Other professional licenses would require bonds as specified elsewhere in statutes.
Status: 2/11/20: (S) from Government Organization: Reported do pass with amendment, but first to Judiciary. To Judiciary.
Related Bills: HB 4122, SB 313
HB 4012 – Contractor Licensing Act. Would create the West Virginia Contractor Licensing Act and a board to license and regulate contractors when the total cost of the contractor's construction contract on any project upon which the work is undertaken is $25,000 or more. Licensure would require compliance with the applicable wage bond requirements. The board may impose a variety of disciplinary action on a contractor who violates applicable rules, including, among others, ordering such contractor, as a condition of licensure, to provide assurance of financial responsibility. The form of financial assurance may include, but is not limited to, a surety bond, a cash bond, a certificate of deposit, an irrevocable letter of credit, or performance insurance.
Status: 1/9/20: (H) introduced and referred to Government Organization
NEW LAW: HB 4077 – Proprietary Schools. Would increase the bond required to be posted by each proprietary school having facilities in the state from $35,000 to an amount between $50,000 - $100,000, as determined by the council, and conditioned upon the school faithfully performing all requirements of the legislation.
Status: 3/25/20: approved by the Governor; effective 6/1/20
HB 4122 – Professional Licenses. Would enact rules governing licensure boards for numerous professions. It would also impose licensure requirements on private detectives, private investigators and security guards, requiring a bond in the sum of $2,500 conditioned upon the faithful and honest conduct of such business. Real estate appraisal management companies would be licensed, requiring a surety bond not the exceed $100,000. Real estate licenses would require a $2,000 bond. Other professional licenses would require bonds as specified elsewhere in statutes.
Status: 1/13/20: (H) introduced and referred to Government Organization
HB 4181 – Contractor Licensing Act. Would move and renumber existing provisions known as the West Virginia Contractor Licensing Act while "making no substantive changes to any of these sections." The renumbered provisions still allow the disciplinary to impose certain sanctions on contractors, including among other things, ordering "a contractor who has been found, after hearing, to have violated any provision of this article or the rules of the board to provide, as a condition of licensure, assurance of financial responsibility. The form of financial assurance may include, but is not limited to, a surety bond, a cash bond, a certificate of deposit, an irrevocable letter of credit, or performance insurance: provided, that the amount of financial assurance required under this subdivision may not exceed the total of the aggregate amount of the judgments or liens levied against the contractor or the aggregate value of any corrective work ordered by the board or both: provided, however, that the board may remove this requirement for licensees against whom no complaints have been filed for a period of five continuous years."
Status: 1/14/20: (H) introduced and referred to Government Organization
Related Bill: SB 489
NEW LAW: HB 4747 – Private Investigators and Security Guards. Would eliminate the existing requirement that all applicants for private detective or private investigator licenses, or for private investigation firm licenses, file a surety bond.
Status: 3/25/20: approved by the Governor; effective 6/5/20
NEW LAW: HB 4749 – Private Investigators and Security Guards. Would allow private investigators, security guards, and private investigator or security guard firms to obtain liability insurance in lieu of the bond. The bill also would increase the bond amount from $2,500 to $5,000.
Status: 3/25/20: approved by the Governor; effective 6/5/20
NEW LAW: SB 213 – Trust Administration. Would govern trust directors and provides that, unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding, among other things, giving of bond to secure performance under §44D-7-702 of the code.
Status: 3/25/20: (S) approved by the Governor; effective 7/1/20
SB 313 – Professional Licenses. Would enact rules governing licensure boards for numerous professions. It would also impose licensure requirements on private detectives, private investigators and security guards, requiring a bond in the sum of $2,500 conditioned upon the faithful and honest conduct of such business. Real estate appraisal management companies would be licensed, requiring a surety bond not the exceed $100,000. Real estate licenses would require a $2,000 bond. Other professional licenses would require bonds as specified elsewhere in statutes.
Status: 1/13/20: (S) introduced and referred to Government Organization
SB 489 – Contractor Licensing Act. Would move and renumber existing provisions known as the West Virginia Contractor Licensing Act while "making no substantive changes to any of these sections." The renumbered provisions still allow the disciplinary to impose certain sanctions on contractors, including among other things, ordering "a contractor who has been found, after hearing, to have violated any provision of this article or the rules of the board to provide, as a condition of licensure, assurance of financial responsibility. The form of financial assurance may include, but is not limited to, a surety bond, a cash bond, a certificate of deposit, an irrevocable letter of credit, or performance insurance: provided, that the amount of financial assurance required under this subdivision may not exceed the total of the aggregate amount of the judgments or liens levied against the contractor or the aggregate value of any corrective work ordered by the board or both: provided, however, that the board may remove this requirement for licensees against whom no complaints have been filed for a period of five continuous years."
Status: 2/26/20: (S) read 3rd time; rejected by Senate
SB 515 – Education Savings Accounts. Would create the Education Savings Account Act and establish savings accounts to which funds would be allocated by the state treasurer for the parent or parents a student in order to pay qualifying education expenses. The treasurer may adopt rules and policies necessary for administration of the program, including among other things, policies that require a surety bond for education service providers receiving more than $100,000 in education savings account funds.
Status: 1/16/20: (S) introduced and referred to Education
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: AB 357 – Public Adjusters. Would require applicants for a public adjuster license to post a bond that meets specifications established by the commissioner to guarantee faithful performance of duties and obligations as a public adjuster. A registration would remain in effect for two years from the date of issuance, unless it is revoked or suspended by the commissioner.
Status: 3/3/20: approved by the Governor; Act 129; effective on the first day of the 4th month beginning after publication. Published on 3/4/20.
AB 605 – Occupational Licensing. Would require the Department of Safety and Professional Services to prepare a report containing certain information on any bill that is introduced in the legislature that requires an individual to obtain a license in order to engage in a particular profession or occupation or that requires that a license be obtained in order for a particular type of business to be owned or operated. Bonding is identified among the list of least-to-most restrictive regulations.
Status: 4/1/20: (S) failed to pass
NEW LAW: SB 289 – Notice of Change in Terms or Premium Amount for Insurance Policy Renewal. Would reduce the notice time frame to insureds when an insurer offers to renew an insurance policy on less favorable terms or with a premium increase of at least 25% for personal lines property and casualty policies.
Status: 3/3/20: approved by the Governor; Act 155; effective on the first day of the 4th month beginning after publication. Published on 3/4/20.
SB 541 – Occupational Licensing. Would require the Department of Safety and Professional Services to prepare a report containing certain information on any bill that is introduced in the legislature that requires an individual to obtain a license in order to engage in a particular profession or occupation or that requires that a license be obtained in order for a particular type of business to be owned or operated. Bonding is identified among the list of least-to-most restrictive regulations (8 of 9).
Status: 4/1/20: (S) failed to pass
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 102 – Combat Sports. Renames the Board of Mixed Martial Arts as the Wyoming Combat Sports Commission.
Status: 3/17/20: signed by the Governor: Chapter 124; effective 3/17/20
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
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