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 100 – 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: 2/24/21: (H) Read second time, placed on calendar - 1 amendment. Pending third reading on Day 9; Favorable from Boards, Agencies and Commissions.
Related Bill: SB 27
HB 221 – Vehicle Transporters. Would amend existing law to add transporters of all manner of vehicles to the law regarding issuance of temporary license plates and registration and, as such, would require the transporters to be bond. The bill does not specify a bond amount.
Status: 3/11/21: (H) Read second time, placed on calendar. Pending third reading on Day 15; Favorable from State Government.
SB 27 – Auctioneers. Would allow licensure of nonresident, out-of-state auctioneers. An applicant must provide proof of financial responsibility in the form of an irrevocable letter of credit or a cash or surety bond in the amount of $10,000. A surety bond shall be payable to the State Board of Auctioneers and conditioned on compliance with the law and the rules adopted by the Board.
Status: 3/15/21: (H) Referred to Rules.
Related Bill: HB 100
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 36 – Motor Vehicle Dealers. Would increase the amount of the bond of motor vehicle dealers from $50,000 to $100,000; the amount of the bond for a motorcycle dealer would remain at $25,000. The bill also would require dealers to maintain public liability and property damage insurance on the dealer's operations in the state.
Status: 3/15/21: (H) Referred to Rules.
HB 46 – Lottery Retail Sales Agents. Would establish a state lottery and the Alaska State Lottery Board within the Department of Revenue. Article 2 of the bill provides for the director to contract with persons to sell lottery tickets. Each applicant for an agent contract would be required to file with the Board and maintain for the duration of the agent contract a bond running to the State in an amount to be determined by the Board. The bond would remain in effect until cancelled by action of the surety, the principal, or the Board. The State or another person may not bring an action on the bond if more than three years have elapsed since its cancellation. The director may contract with an agent for a term of not more than two years, but the contract may be renewed.
Status: 2/18/21: (H) Read first time; referred to State Affairs.
SB 9 – Alcoholic Beverages. Would revamp the license structure and provide for endorsements to licenses. This bill would not impact the tax bond requirements.
Status: 3/15/21: (S) Referred to Judiciary.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 2029 – Barber and Cosmetology Schools. Would combine the Board of Barbering and the Board of Cosmetology to be named the Barbering and Cosmetology Board. As introduced, the bond section has a few minor revisions that do not affect the $25,000 bond requirement for schools.
Status: 3/3/21: (S) From Commerce: Do Pass as Amended.
HB 2044 – Insurance - Electronic Communications. This is the omnibus insurance bill. This bill would amend AZ ST 20-239, electronic communications and records; subsection P would be amended to add several types of insurance products, including surety. The bill also proposes amendments to the service contract sections, one of which is lowering the net worth requirement of at least one officer of the issuing corporation from $100,000,000 to $25,000,000.
Status: 2/1/21: (H) SB 1049 was substituted for HB 2044.
Related Bill: SB 1049
SB 1010 – Election Recounts. Would add section 16-661.01 to the election law, which provides that a person may file an action for a recount in any election that is not subject to an automatic recount if the person files a bond with the superior court in a form and in an amount as determined by the court to be sufficient to provide for full reimbursement of the costs of conducting the recount. The person filing the action may request a recount by hand count or by use of voting equipment, and the amount of the bond shall reflect the type of recount requested.
Status: 3/9/21: (H) Read first time and referred to Government and Elections and Rules.
NEW LAW: SB 1049 – Insurance - Electronic Communications. This is the omnibus insurance bill. This bill would amend AZ ST 20-239, electronic communications and records; subsection P would be amended to add several types of insurance products, including surety. The bill also proposes amendments to the service contract sections, one of which is lowering the net worth requirement of at least one officer of the issuing corporation from $100,000,000 to $25,000,000.
Status: 2/9/21: signed by the Governor; Ch. 5; effective 90 days after adjournment.
SB 1086 – Pharmacy Wholesale Distributors. Would strike the requirement for a $100,000 permit bond from representatives of a full-service wholesale permittee with the Arizona State Board of Pharmacy. It does insert new language stating the bond must comply with federal law.
Status: 1/20/21: (S) Introduced, first read; referrals to Health & Human Services; and Rules.
SB 1115 – Notaries Public. Would repeal current law and enact RULONA under a new code section. Would require applicants for an initial commission and renewal to take an education course and pass an exam. The bond requirement would remain at $5,000 for a four-year commission term.
Status: 3/11/21: (H) Passed; transmitted to Senate.
SB 1218 – Occupational Licensing. Would require agency review of occupational licensing requirements for nonhealth professions, which would minimize unnecessary occupational licensing and regulations through agency review of all occupational rules and regulations and occupational licenses within their jurisdictions.
Status: 3/9/21: (H) From Commerce: Do Pass.
SB 1463 – Consumer Loans. Would make various changes to the Arizona Department of Insurance and Financial Institutions (DIFI), retroactive to July 1, 2020. The bill would make technical changes needed due to the consolidation of the DFI and the ATA into the DOI; e.g., changes "superintendent" to "deputy director." The bill also would modify the definition of "consumer loan" to mean the direct closed end loan of money, whether unsecured or secured by personal or real property, in an amount of $50,000 or less, rather than $10,000 or less, that is subject to a finance charge in which only the principal amount of the loan is considered, and not any finance charges or other fees allowed pursuant to section 6-635, for the purpose of determining whether the consumer loan is $50,000 or less.
Status: 3/9/21: (H) Read first time and referred to Government and Elections and Rules.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1037 – Sales and Use Tax. Would authorize the secretary of the Department of Finance and Administration to require a bond for a taxpayer that owes delinquent sales and use tax, and to disclose such delinquency information to bonding companies. The amount of the bond (cash deposit or security) required would be equal to the greater of $100,000 or 4 times the amount of the taxpayer's average monthly tax liability. The bond would have to remain in place until the taxpayer has demonstrated regular compliance with the chapter and the Arkansas Compensating Tax Act.
Status: 1/11/21: (H) Read first time, rules suspended; read second time and referred to Revenue and Taxation
HB 1141 – Cemetery Act for Perpetually Maintained Cemeteries - Fidelity Bonds. Would amend several sections of the Act. The bill would make minor changes to the performance and payment bond sections and the fidelity bond requirements for the trustee of the maintenance fund. If the trustee is a cemetery company, the designated disbursing trustee would be responsible for depositing with the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services (the "Board") a fidelity bond payable to the trust fund in a penal sum not less than 80% (existing amount is 100%) of the value of the trust fund principal at the beginning of each calendar year. The bill would add a provision that an individual trustee would deposit with the Board a fidelity bond in a penal sum not less than 80% of the value of the trust fund principal at the beginning of each calendar year. If a permanent maintenance fund of a cemetery contains less than $10,000, a bond is not required when a cemetery has designated trustees.
Status: 2/10/21: (S) Read first time, rules suspended, read second time and referred to Public Health, Welfare and Labor.
SB 150 – Money Transmitters. Would amend the Uniform Money Services Act. Would redefine "money transmission" to mean selling or issuing payment instruments, stored value, or prepaid access, or receiving money, virtual currency, or monetary value for transmission. Would add a definition of virtual currency. Would expand the liability under the bond.
Status: 3/3/21: (H) Read first time, rules suspended. Read second time and referred to Insurance and Commerce.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 62 – Garment Manufacturers, Brand Guarantors, or Contractors. Would establish the Garment Manufacturers Special Account; funds from the account would be disbursed by the commissioner only to persons determined by the commissioner to have been damaged by the failure to pay wages, damages, penalties, expenses, and other compensation and benefits by any garment manufacturer, brand guarantor, or contractor. Before receiving any payment from the account, an employee shall assign to the labor commissioner all of the employee's claims and judgments to be paid from the account; however, the assignment would not be required until the employee's claim is determined by the commissioner to be valid and payment is ready to be issued from the account. Any disbursed funds subsequently recovered by the commissioner, pursuant to an assignment of the claim, including recovery from a surety under a bond pursuant to Section 2675, would be returned to the account.
Status: 3/10/21: (S) In Labor, Public Employment and Retirement. Scheduled for committee hearing on 3/22.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 876 – Public Officials. Would allow board members and employees of the Connecticut State Housing Finance Authority to obtain alternate security to ensure faithful performance of their duties.
Status: 3/15/21: (LCO) Referred to Office of Legislative Research and Office of Fiscal Analysis; 3/22/21 @ 10 a.m.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates
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COMMERCIAL SURETY
SB 37 – Viatical Settlements. Would repeal the $250,000 bond requirement for viatical settlement brokers but leave in place the $250,000 bond requirement for viatical settlement providers (or other acceptable security).
Status: 3/9/21: (H) Reported out of Economic Development/Banking/Insurance and Commerce with 3 Favorable, 8 On Its Merits.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: B23-445 – Appraisal Management Companies. Would require real estate appraisal management companies to be registered and to post a surety bond in an amount not to exceed $25,000.
Status: 1/1/21: Enacted Act A23-0541 was published in the DC Register. Effective 2/1/21.
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
HB 15 – Sales and Use Tax. Various amendments; revises the definition of "retail sale".
Status: 3/15/21: (H) Reported out of Ways and Means; laid on table under Rule 7.18(a); committee substitute filed.
Related Bill: SB 50
HB 115 – Local Licensing. Would authorize individuals who hold valid, active local licenses to work within the scope of such licenses in any local government jurisdiction without needing to meet additional licensing requirements. Local governments would have disciplinary jurisdiction over licensees, and would be required to forward any disciplinary orders to the licensee's original licensing jurisdiction for further action. The bill also would require the DBPR to create and maintain a local licensing information system.
Status: 2/5/21: (H) Withdrawn prior to introduction.
HB 121 – Notaries Public - RONs and Services Providers. Would authorize the employer of a notary public to require use of a particular technology and provider in performing notarial acts with respect to electronic records, require RON service providers to file a self-certification with the Department of State, and prohibit RON service providers from using, selling, or offering to sell or transfer personal information obtained in the course of performing online notarizations.
Status: 3/15/21: (H) In Judiciary. Added to agenda.
Related Bill: SB 228 (identical)
HB 139 – MV Title Certificates and Registrations - County Tax Collectors. Would authorize tax collectors to accept applications for motor vehicle and vessel certificates of title by electronic or telephonic means, and contract with vendors to provide such transactions. Tax collectors are required to be bonded per Fla. Stat. 137.02 (Title XI).
Status: 3/5/21: (H) In Commerce; in Tourism, Infrastructure and Energy Subcommittee. Added to agenda.
HB 585 – Construction - Payment for Services. Would specify that a person, firm, or corporation failing to make certain payments relating to public projects commits a misapplication of construction funds and would be subject to criminal penalties; would expand the list of actions for which a licensee may be disciplined by the CILB.
Status: 3/5/21: (H) In Commerce; in Civil Justice and Property Rights Subcommittee.
Related Bill: SB 378
HB 735 – Local Occupational Licensing. Would preempt licensing of occupations to the State, prohibit local governments from imposing additional licensing requirements or modifying licensing unless specified conditions are met, specify that certain specialty contractors are not required to register with the CILB, prohibit local governments from requiring certain specialty contractors to obtain a license under specified circumstances, specify job scopes for which a local government may not require a license, and authorize counties and municipalities to issue certain journeyman licenses.
Status: 3/12/21: (H) In Commerce. Added to agenda.
Related Bill: SB 268
HB 1293 – Litigation Financiers. Would create the Litigation Financing Consumer Protection Act to govern the registration and conduct of litigation financiers, and require them to register with the Office of Financial Regulation and file a $250,000 surety bond.
Status: 3/2/21: (H) In Judiciary; in Civil Justice and Property Rights Subcommittee, first reading.
Related Bill: SB 1750
HB 1351 – Money Services Businesses. Would provide requirements for money transmitters that receive virtual currency. The bill revises the definition of money transmitter to include virtual currency provisions, and adds a definition of virtual currency. Existing law requires a minimum $50,000 bond.
Status: 3/15/21: (H) In Commerce; in Insurance and Banking Subcommittee. Added to agenda.
Related Bill: SB 1758.
SB 268 – Local Occupational Licensing. Would preempt licensing of occupations to the State, prohibit local governments from imposing additional licensing requirements or modifying licensing unless specified conditions are met, specify that certain specialty contractors are not required to register with the CILB, prohibit local governments from requiring certain specialty contractors to obtain a license under specified circumstances, specify job scopes for which a local government may not require a license, and authorize counties and municipalities to issue certain journeyman licenses.
Status: 3/11/21: (s) In Regulated Industries. On Committee agenda for 3/16.
Related Bill: HB 735
SB 378 – Construction - Payment for Service. Would specify that a person, firm, or corporation failing to make certain payments relating to public projects commits a misapplication of construction funds and would be subject to criminal penalties; would expand the list of actions for which a licensee may be disciplined by the CILB.
Status: 3/15/21: (S) Committee substitute by Governmental Oversight and Accountability read first time. On the agenda for 3/18.
SB 392 – Sports Wagering. Would require persons desiring to operate a sports pool to obtain a license from the Department of Lottery. No bond requirement is mentioned but the bill should be monitored.
Status: 3/2/21: (S) Introduced.
SB 1750 – Litigation Financiers. Would create the Litigation Financing Consumer Protection Act to govern the registration and conduct of litigation financiers, and require them to register with the Office of Financial Regulation and file a $250,000 surety bond.
Status: 3/10/21: (S) Introduced
Related Bill: HB 1293
SB 1758 – Money Services Businesses. Would provide requirements for money transmitters that receive virtual currency. The bill revises the definition of money transmitter to include virtual currency provisions, and adds a definition of virtual currency. Existing law requires a minimum $50,000 bond.
Status: 3/11/21: (S) In Banking and Insurance. On agenda for 3/16.
Related Bill: HB 1351
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 86 – Sports Wagering. Would enact the Georgia Lottery Mobile Sports Wagering Integrity Act. The amount and type of security will be prescribed by rules and regulations.
Status: 3/8/21: (H) Withdrawn, recommitted.
HB 254 – Public Adjusters. Would add sections to the law regarding the regulation of public adjusters that would increase the Insurance Commissioner's enforcement authority. A new section 33-23-43.4 would require that, as a continuing condition of license, a public adjuster file proof of financial responsibility with respect to transactions with insureds in an amount determined by the Commissioner by rule. The financial responsibility shall include the ability to pay sums that the public adjuster is obligated to pay under any judgment against such adjuster by an insured, based on an error, omission, fraud, negligent act, or unfair practice of such adjuster or any person for whose acts such adjuster is legally liable in the transaction of the adjuster's business. In determining the amount of financial responsibility, the Commissioner would consider the nature of the obligation, other financial security requirements under this code section, and financial security requirements adopted for public adjusters in other states. The Commissioner may consider a surety bond or a professional liability policy or similar policy or contract of professional liability coverage acceptable to the Commissioner. This requirement would be in addition to the existing surety bond requirement.
Status: 2/17/21: (S) Read and referred to Insurance and Labor.
HB 334 – Remote Notarizations. Would enact a $2,000 bond requirement for a remote online notary public.
Status: 3/5/21: (S) Read and referred to Judiciary.
HB 443 – Structured Settlement Purchase Companies. Would require an applicant for a license to conduct business as a structured settlement purchaser to secure a bond or letter of credit, or post a cash bond, in the amount of $50,000, payable to the State and to protect payees who do business with a licensee.
Status: 3/3/21: (S) Read and referred to Judiciary.
HB 620 – Guardians and Wards. Would revise certain bond requirements.
Status: 3/15/21: (S) Read second time.
HB 674 – Earned Wage Access Service Providers. Would establish requirements for operating as an earned wage access service provider, which would include a $50,000 bond or letter of credit.
Status: 3/3/21: (H) In Industry and Labor. Second readers.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 29 – Small Loan Lenders. Would add a new chapter to the statutes to regulate small dollar installment loans. An applicant for a lender license would be required to file and maintain a surety bond in an amount not less than $30,000 or more than $250,000, based on the annual dollar amount of loans originated. The bond would run to the State for the use and benefit of the State and any person who may have a cause of action against the licensee, and be conditioned that the licensee faithfully conform to and abide by the law and rules and pay to the State and any person all moneys that may become due and owing. The licensing would be through NMLS.
Status: 1/27/21: (H) Referred to Consumer Protection & Commerce; and Finance.
HB 186 – Uniform Trust Code. Would enact the Uniform Trust Code (2018 version) with appropriate amendments to reflect Hawaii law and practice where relevant. Provides that the terms of a trust prevail over any provision of the chapter except, among other things, the power of the court to require, dispense with, or modify or terminate a bond. Under a revocable trust, a trustee shall give bond to secure performance of his or her duties only if the court finds that a bond is needed to protect the interests of the beneficiaries, or is required by the terms of the trust and the court has not dispensed with the requirement. The court may specify the amount of a bond, its liabilities, and whether sureties are necessary, and may modify or terminate a bond at any time.
Status: 2/8/21: (H) Passed second reading as amended in HD 1 and referred to Finance.
Related Bill: SB 385
HB 1192 – Small Loan Lenders - Small Dollar Installment Loans. Would require licensure and bonding for small dollar lenders that offer small dollar installment loans to consumers. The penal sum of the bond would be a minimum of $30,000 and a maximum of $250,000, based on the annual dollar amount of loans originated. The bond would run to the State of Hawaii for the use and benefit of the State and any person who may have a cause of action against the licensee, and be conditioned on the licensee faithfully conforming to and abiding by the law and all rules adopted. Annual licensing would be through NMLS. Each branch office must be licensed. The bill also would require check cashers to be registered and to offer customers the option to participate in a voluntary payment plan, structured to pay the existing debt, both the principal and the fee, in at least four equal payments that coincide with the customer's pay dates or the date the customer is scheduled to receive benefits, unless the customer requests different payment due dates.
Status: 3/16/21: (S) In Commerce and Consumer Protection. Deferred until 3/18.
Related Bill: SB 1355
SB 385 – Uniform Trust Code. Would enact the Uniform Trust Code (2018 version) with appropriate amendments to reflect Hawaii law and practice where relevant. Provides that the terms of a trust prevail over any provision of the chapter except, among other things, the power of the court to require, dispense with, or modify or terminate a bond. Under a revocable trust, a trustee shall give bond to secure performance of his or her duties only if the court finds that a bond is needed to protect the interests of the beneficiaries, or is required by the terms of the trust and the court has not dispensed with the requirement. The court may specify the amount of a bond, its liabilities, and whether sureties are necessary, and may modify or terminate a bond at any time.
Status: 3/16/21: (H) Judiciary and Hawaiian Affairs recommends that the measure be passed, with amendments.
Related Bill: SB 186
SB 498 – Common Interest and Common Purpose Entities - Coops. Would authorize common interest and common purpose entities to organize as general cooperatives and require, at the discretion of the coop board, any officer, employee or agent who handles funds or negotiable instruments or property of or for the coop to be bonded for the faithful performance of their duties and obligations.
Status: 2/12/21: (S) In Commerce & Consumer Protection; public hearing held. Committee deferred the measure.
SB 816 – Lottery Retail Sales Agents. Would enact a state lottery and establish a lottery commission. The commission would have the authority to license any persons as agents to sell or distribute tickets who, in the director's opinion, will best serve the public convenience and promote the sale of tickets. The director may require a bond from any licensed agent in any amount provided in the rules of the commission.
Status: 2/19/21: (S) Education Committee Report adopted; passed second reading, as amended, and referred to Judiciary and Ways and Means.
SB 974 – Small Loan Lenders - Small Dollar Installment Loans. Would require licensure and bonding for small dollar lenders that offer small dollar installment loans to consumers. The penal sum of the bond would be a minimum of $30,000 and a maximum of $250,000, based on the annual dollar amount of loans originated. The bond would run to the State of Hawaii for the use and benefit of the State and any person who may have a cause of action against the licensee, and be conditioned on the licensee faithfully conforming to and abiding by the law and all rules adopted. Annual licensing would be through NMLS. Each branch office must be licensed. The bill also would require check cashers to be registered and to offer customers the option to participate in a voluntary payment plan, structured to pay the existing debt, both the principal and the fee, in at least four equal payments that coincide with the customer's pay dates or the date the customer is scheduled to receive benefits, unless the customer requests different payment due dates.
Status: 3/11/21: (H) Passed first reading. Referrals to Consumer Protection and Commerce and Finance.
SB 1355 – Small Loan Lenders - Small Dollar Installment Loans. Would require licensure and bonding for small dollar lenders that offer small dollar installment loans to consumers. The penal sum of the bond would be a minimum of $30,000 and a maximum of $250,000, based on the annual dollar amount of loans originated. The bond would run to the State of Hawaii for the use and benefit of the State and any person who may have a cause of action against the licensee, and be conditioned on the licensee faithfully conforming to and abiding by the law and all rules adopted. Annual licensing would be through NMLS. Each branch office must be licensed. The bill also would require check cashers to be registered and to offer customers the option to participate in a voluntary payment plan, structured to pay the existing debt, both the principal and the fee, in at least four equal payments that coincide with the customer's pay dates or the date the customer is scheduled to receive benefits, unless the customer requests different payment due dates.
Status: 2/1/21: (S) Referred to Commerce and Consumer Protection and Ways and Means.
Related Bill: HB 1192
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 78 – Insurance - Surety Bond Requirements. Provides that the director of the Department of Administration shall determine the nature and extent of needs for surety bonds and insurance coverages of all kinds, other than life and disability insurances, as to risks and property of all offices, departments, divisions, boards, commissions, institutions, agencies, officers, agents, employees, and operations of the government of the state of Idaho, the premiums on which are payable in whole or in part from funds of the state.
Status: 3/12/21: signed by the Governor; Chapter 42; effective 1/1/22
SB 1026 – Occupational Licensing. Would amend existing law to provide that various occupational licensing boards shall be integrated into the Division of Occupational and Professional Licensing.
Status: 3/16/21: U.C. to hold place on third reading calendar one legislative day.
SB 1056 – Occupational Licensing. Would continue the reorganization of the Division of Occupational and Professional Licenses (DOPL) consistent with Executive Order No. 2020-10. The proposal would merge the Division of Building Safety (DBS) into the DOPL and assign duties of the DBS administrator to the DOPL administrator. The passage of this bill may require us to make some minor revisions to our files.
Status: 3/16/21: U.C. to hold place on third reading calendar one legislative day.
SB 1084 – Occupational Licensing - Review of Licensing/Regulation Requirements. Would require the Occupational and Professional Licensure Review Committee to conduct a sunset review of each licensing authority on a rotating basis, to include review of the existing laws and regulations. Licensing authorities would be divided into six groups and the committee would review at least one group each year. Each licensing authority would be reviewed at least every five years. Upon completion of the review process, the committee would issue a report that would include its findings as to whether: (i) the existing licensing or other regulation is necessary to protect against present, recognizable, and sufficient harm to the health, safety, or welfare of the public to warrant the regulation; (ii) the existing licensing or other regulation is the least restrictive regulation necessary; (iii) the public can be effectively protected by other means; (iv) the overall cost-effectiveness and economic impact of the existing licensing or other regulation of the profession or occupation, including the direct and indirect costs to consumers, is outweighed by the benefits of the licensing or other regulation; (v) the existing licensing or other regulation has had an unreasonably negative effect on job creation, job retention, or wages in the state or has placed unreasonable restrictions on the ability of individuals who seek to practice or who are practicing a given profession or occupation to continue to practice or to find employment; and (vi) other relevant information should be considered. The committee's report would include a recommendation as to whether the existing licensing/regulation should be repealed or amended to reduce barriers to licensure.
Status: 2/23/21: (H) Read first time and referred to Business.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 14 – Professional Licensing - Fresh Start. Provides that if the Department of Financial and Professional Regulation refuses to issue a license or certificate or grant registration to an applicant based upon a criminal conviction, the Department shall include in its notification to the applicant an explanation of how the conviction directly relates to and would prevent the person from effectively engaging in the position for which a license, registration, or certificate is sought.
Status: 3/9/21: (H) Assigned to Labor and Commerce.
SB 97 – Notaries Public. Would amend the Illinois Notary Public Act to provide requirements concerning electronic notarization and electronic notaries. An electronic notary who performs electronic notarial acts by means of audio-video communication would be required to obtain and maintain a $25,000 surety bond, which would be exclusively conditioned on the faithful performance of electronic notarial acts by the electronic notary. The bond amount for a regular notary remains at $5,000. A notary public also would be required to maintain an errors and omissions insurance policy in a minimum amount of $25,000. All bonds would be filed with the Secretary of State.
Status: 2/9/21: (S) Assigned to Judiciary.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1154 – Public Officials. Would create the Cannabis Regulatory Agency and require each of the four commissioners of the Agency's executive committee to be bonded with the Secretary of State in the amount of $10,000 for the faithful discharge of their duties.
Status: 1/7/21: (H) First reading; referred to Courts and Criminal Code.
Related Bill: SB 87
SB 87 – Public Officials. Would create the Cannabis Regulatory Agency and require each of the four commissioners of the Agency's executive committee to be bonded with the Secretary of State in the amount of $10,000 for the faithful discharge of their duties.
Status: 1/7/21: (S) First reading; referred to Commerce and Technology.
Related Bill: HB 1154
SB 186 – Public Officials. Would eliminate the requirement for prosecuting attorneys to provide a surety bond for the faithful execution of their duties.
Status: 3/4/21: (H) First reading; referred to Courts and Criminal Code.
SB 212 – Charter Schools. Would require a charter school to post a surety bond or other form of financial guarantee with the State Board of Education. The bond would have to filed by October 1, 2021 for any school actively operating in the state on July 1, 2021. The bond must be an amount that equals the estimated tuition support that the school will receive in its first year of operation multiplied by 10%, and be adjusted every three years.
Status: 1/25/21: (S) In Education and Career Development. Sen. Ford added as co-author.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HF 10 – Guardians and Conservators. This bill relates to a court's ability to waive the requirement of conservators to post a bond, and provides the court discretion as to whether a bond is required for a conservator. Under current law, courts do not have the discretion to waive bond for a conservator, other than a financial institution with Iowa trust powers, unless the court finds an alternative to a bond that would protect the protected person's assets.
Status: 1/12/21: (H) Introduced and referred to Judiciary
HF 178 – Occupational Licensing. Would prohibit employers from inquiring about an applicant's criminal history during the employment screening. An exception would be made for positions that require an employee to have or be covered by a fidelity bond and an applicant's conviction would disqualify him or her from obtaining the bond.
Status: 1/22/21: (H) Introduced and referred to Labor.
HF 375 – Postsecondary Educational Institutions. Would require every person, firm, association, or corporation maintaining or conducting in Iowa any educational course by classroom instruction or by correspondence or by other delivery method, or soliciting in Iowa the sale of such course, to file with the College Student Aid Commission a continuous corporate surety bond to the State of Iowa in the sum of $50,000 or 10 percent of the total annual tuition determined in accordance with subsection 2, whichever is less. A school that files with the Commission a bond in a sum less than $50,000 shall provide to the Commission, in the format prescribed, a notarized statement attesting to the total amount of tuition the school charged to students in the immediately preceding fiscal year. The Commission will determine the sufficiency of the statement and the amount of the bond. The Commission may accept a letter of credit issued by a state or federally chartered bank or credit union in lieu of the bond. The bill also strikes provisions relating to the Commission's ability to reduce a school's bond and limiting the aggregate liability of the surety for breaches of the conditions of the bond.
Status: 3/9/21: (H) Withdrawn; renumbered as HF 644.
HF 560 – Waste Tire Haulers. Would increase the amount of the bond required of waste tire haulers from $10,000 to $150,000.
Status: 3/11/21: (H) Passed Senate, received message from Senate.
Related Bill: SSB 1161
HF 644 – Postsecondary Educational Institutions. Would require every person, firm, association, or corporation maintaining or conducting in Iowa any educational course by classroom instruction or by correspondence or by other delivery method, or soliciting in Iowa the sale of such course, to file with the College Student Aid Commission a continuous corporate surety bond to the State of Iowa in the sum of $50,000 or 10 percent of the total annual tuition determined in accordance with subsection 2, whichever is less. A school that files with the Commission a bond in a sum less than $50,000 shall provide to the Commission, in the format prescribed, a notarized statement attesting to the total amount of tuition the school charged to students in the immediately preceding fiscal year. The Commission will determine the sufficiency of the statement and the amount of the bond. The Commission may accept a letter of credit issued by a state or federally chartered bank or credit union in lieu of the bond. The bill also strikes provisions relating to the Commission's ability to reduce a school's bond and limiting the aggregate liability of the surety for breaches of the conditions of the bond.
Status: 3/10/21: (S) Read first time and referred to Education. Referred to subcommittee.
SF 341 – Mechanics' Liens. Would specify that a perfected mechanic's lien shall be limited to the county or counties in which the building, land, or improvement to be charged with the lien is situated. The bill also provides that, in addition to an action to enforce a mechanic's lien, attorney fees may be awarded to a prevailing plaintiff in an action brought upon any bond given in lieu of a mechanic's lien.
Status: 3/1/21: (S) Amendments filed. Attached to companion HF 561.
SSB 1161 – Waste Tire Haulers. Would increase the amount of the bond required of waste tire haulers from $10,000 to $150,000.
Status: 2/24/21: (S) Renumbered as SF 459, and then substituted by HF 560.
Related Bill: HF 560
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COMMERCIAL SURETY
HB 2066 – Occupational Licensing. Would expand the military spouse and service members expedited licensure law to all applicants who have established or intend to establish residency in state. The bill also provides that any applicant who does not meet the State's requirements for licensure may "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: 3/17/21: (S) Emergency final action - substitute passed as amended.
HB 2074 – Producer Licensing. Would update and modernize the producer licensing statutes.
Status: 2/12/21: (S) Referred to Financial Institutions and Insurance.
Related Bill: SB 37
SB 10 – Occupational Licensing. Would create the Right to Earn a Living Act, which would minimize unnecessary occupational licensing and regulations through agency review of all occupational rules and regulations and licenses within their jurisdiction.
Status: 1/27/21: (S) In Commerce. Hearing held.
SB 37 – Producer Licensing. Would update and modernize the producer licensing statutes.
Status: 3/5/21: (S) Withdrawn from Federal and State Affairs and rereferred to Committee of the Whole.
Related Bill: HB 2074
SB 106 – Notaries Public. Would repeal the existing uniform law on notarial acts and enact the Revised Uniform Law on Notarial Acts. A qualified individual may apply to the secretary of state for a commission as a notary public, which would include a surety bond or its functional equivalent in the amount of $12,000 (currently $7,500). The bond shall cover acts performed during the term of the notary's commission. Suit must be brought against the notary or the surety within 3 years after the cause of action accrues; direct third-party liability. The surety must notify the state not later than 30 days after making a payment to a claimant or the denial of a claim.
Status: 3/10/21: (H) Received and introduced; referred to Judiciary.
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COMMERCIAL SURETY
HB 47 – Waste Disposal. Would require any permittee seeking to expand a construction or demolition waste disposal site to post an additional $10,000 bond for the expansion area.
Status: 3/11/21: (S) Second reading; returned to Natural Resources and Energy.
HB 162 – Election Recounts. Would expand existing law regarding election recounts to allow for a bond covering the cost of the recount to be filed by the state political party, political organization, or political group, if any, to which the candidate is affiliated.
Status: 2/26/21: (H) Second reading, to Rules. Posted for passage in the Regular Orders of the Day for 3/1.
HB 197 – Notaries Public. Would amend existing law regarding notarization to define in-person electronic notarization and remote electronic notarization. The bond requirement is not affected.
Status: 1/7/21: (H) Introduced
SB 105 – Conservatorships of Abandoned and Blighted Buildings. Would amend existing law regarding conservators appointed by a court to take possession of and undertake the rehab of an abandoned and blighted building. An appointed conservator may be required to post a bond in an amount determined by the court, not to exceed the assessed value of the building at the time of the appointment, prior to proceeding as conservator. If the owner is allowed to proceed with abatement, the court may require the owner to post a bond in the amount of the repair costs estimated in the petition as a condition of retaining possession of the building.
Status: 3/11/21: (H) Enrolled, signed by Speaker of the House, and delivered to the Governor.
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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
LD 195 (SP 83) – General Contractors. Would direct the Department of Professional and Financial Regulation, in conjunction with the Department of Labor, to study the development of a voluntary licensing system for general contractors for home improvement and construction. The study must address costs of the voluntary system, state agency resources, system implementation and the potential impact on the construction industry. The Department would have to submit its report to the Joint Standing Commission on Innovation, Development, Economic Advancement and Business by 12/1/21, and the Committee would be authorized to submit a bill based on the report to the Second Regular Session of the 130th Legislature (2022).
Status: 1/25/21: (S) Received by the Secretary of State and referred to Innovation, Development, Economic Advancement and Business pursuant to Joint Rule 308.2.
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COMMERCIAL SURETY
HB 239 – Property Managers. Would require property managers to provide a surety bond in the amount of at least $100,000 if it rents fewer than 20 properties, or $200,000 for 20 properties or more.
Status: 2/16/21: (S) Received from House. Referred to Education, Health, and Environmental Affairs.
Related Bill: SB 73
HB 367 – Common Ownership Communities - Community Managers. Would require a licensed community manager, or a person under the direction of a licensed community manager, that contracts to provide management services for a common ownership community to provide a fidelity bond or an insurance policy. The bond shall provide coverage in an amount equal to the lesser of $2,000,000, or the highest aggregate amount of the operating and reserve balances of all common ownership communities under contract with the contracting party in the prior three months.
Status: 3/4/21: (S) In Judicial Proceedings. Scheduled for hearing on 3/17.
HB 664 – Sales-Based Financing Transactions. Would require an applicant for an initial license to engage in the business of making or soliciting a sales-based financing transaction to, amongst other things, file a surety bond that shall run to the commissioner for the benefit of the State and any person who has a cause of action against the licensee. The bond would be in the amount of $250,000 and conditioned that the licensee comply with the law and pay to the State or to any person any money that may be owed. It would be a continuous bond with aggregate liability, and may not require an administrative enforcement action by the commissioner as a prerequisite to liability, and shall remain in force for at least three years after the later of the date the bond is canceled or the date the licensee, for any reason, ceases to be licensed. A bond may be canceled by the surety by giving written notice to the commissioner sent by certified mail, return receipt requested. Cancellation would be effective 90 days after the commissioner receives the notice. A claim may be filed with the surety by a claimant or the commissioner on behalf of a claimant or the State. If the amount of claims exceeds the bond amount, the surety shall pay the amount of the bond to the commissioner for pro rata distribution to claimants and is then relieved of liability under the bond. Penalties imposed against the licensee would be recoverable from the bond. "Sales-based financing transaction" means a financing transaction that is repaid over time as a percentage of sales or revenue where the payment amount may increase or decrease depending on the volume of sales made or revenue received by the recipient; includes a true-up mechanism where the financing is repaid as a fixed payment but provides for a reconciliation process that adjusts the payment to an amount that is a percentage of sales or revenue.
Status: 2/17/21: (H) In Economic Matters. Hearing held.
Related Bill: SB 532
SB 73 – Property Managers. Would require property managers to provide a surety bond in the amount of at least $100,000 if it rents fewer than 20 properties, or $200,000 for 20 properties or more.
Status: 2/9/21: (S) In Education, Health, and Environmental Affairs. Hearing held.
Related Bill: HB 239
SB 135 – Security System Installers. Would subject installers of certain battery-charged fence security systems to the provisions of Title 18, Business Occupations and Professions, which requires security system installers to post a bond.
Status: 3/3/21: (H) Referred to Economic Matters.
SB 219 – Money Transmitters. Would establish licensing requirements for certain money transmission locations (self-service financial kiosks). Bond requirement remains intact.
Status: 3/16/21: (H) In Economic Matters. Scheduled for hearing on 3/24.
SB 251 – Non-depository Institutions. Would provide for the elimination of certain paper licenses for collection agencies, credit services, lenders, installment lenders, mortgage lenders, mortgage loan originators, sales finance companies, check cashing services, money transmission businesses, and debt management services; essentially transitioning to NMLS.
Status: 3/16/21: (H) In Economic Matters. Scheduled for hearing on 3/24. .
SB 372 – Bad Faith. Would authorize the recovery of actual damages, expenses, litigation costs, and interest in obligee claims against sureties under certain circumstances; apply certain provisions of law on unfair claim settlement practices to surety; and require an obligee to comply with certain procedures before bringing a certain claim against a surety.
Status: 2/3/21: (S) In Finance. Hearing held.
SB 532 – Sales-Based Financing Transactions. Would require an applicant for an initial license to engage in the business of making or soliciting a sales-based financing transaction to, amongst other things, file a surety bond that shall run to the commissioner for the benefit of the State and any person who has a cause of action against the licensee. The bond would be in the amount of $250,000 and conditioned that the licensee comply with the law and pay to the State or to any person any money that may be owed. It would be a continuous bond with aggregate liability, and may not require an administrative enforcement action by the commissioner as a prerequisite to liability, and shall remain in force for at least three years after the later of the date the bond is canceled or the date the licensee, for any reason, ceases to be licensed. A bond may be canceled by the surety by giving written notice to the commissioner sent by certified mail, return receipt requested. Cancellation would be effective 90 days after the commissioner receives the notice. A claim may be filed with the surety by a claimant or the commissioner on behalf of a claimant or the State. If the amount of claims exceeds the bond amount, the surety shall pay the amount of the bond to the commissioner for pro rata distribution to claimants and is then relieved of liability under the bond. Penalties imposed against the licensee would be recoverable from the bond. "Sales-based financing transaction" means a financing transaction that is repaid over time as a percentage of sales or revenue where the payment amount may increase or decrease depending on the volume of sales made or revenue received by the recipient; includes a true-up mechanism where the financing is repaid as a fixed payment but provides for a reconciliation process that adjusts the payment to an amount that is a percentage of sales or revenue.
Status: 1/31/21: (S) In Finance. Hearing scheduled for 2/23.
Related Bill: HB 664
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SD 468 – 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 if 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. PREVIOUS SESSION BILL NO. SB 164.
Status: Draft not yet filed.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HF 89 – Election Recounts. Would require a candidate for office requesting a recount to file a bond, cash or other surety with the filing officer, in an amount set by the filing officer for the payment of the recount expenses.
Status: 3/10/21: (H) In State Government Finance and Elections. Referred by Chair to Local Government Division.
Related Bill: SF 218
SF 218 – Election Recounts. Would require a candidate for office requesting a recount to file a bond, cash or other surety with the filing officer, in an amount set by the filing officer for the payment of the recount expenses.
Status: 2/11/21: (S) In State Government Finance and Policy and Elections. Four authors have been added.
Related Bill: HF 89
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COMMERCIAL SURETY
HB 136 – Public Officers or Employees Handling or Having Custody of Public Funds. Would require any public officer or employee handling or having the custody of public funds, by virtue of his or her office or employment, to give an individual bond in the amount of $25,000, unless a specific amount is otherwise required by law. All individual bonds required by this section shall follow the form and content as provided in Section 25-1-15.
Status: 3/17/21: (H) Declined to concur, invite conference committee.
HB 285 – Certificates of Title. Would amend existing law concerning certificate of title bonds. The bill provides that the department shall not require an applicant or dealer to file a bond or deposit of cash as a condition of issuing a certificate of title if the vehicle is an abandoned vehicle and is unclaimed. An abandoned vehicle is unclaimed if the owner or lienholder of record has not claimed ownership or title within 10 years from the date the notice was sent to the owner or lienholder of record, or if no owner or lienholder of record could be determined, ownership or title has not been claimed within 10 years.
Status: 2/2/21: (H) Died in Ways and Means Committee.
HB 331 – Professional Employer Organizations. Would require PEOs and PEO groups to register with the Department of Insurance within 180 days of enactment of this legislation. Unless otherwise provided, each PEO or PEO group shall maintain either: (a) positive working capital as reflected in the financial statements submitted with the initial registration and each annual renewal, or (b) a PEO or PEO group that does not have positive working captial may provide a bond, irrevocable letter of credit, or securities equaling the deficiency plus $100,000 to the Insurance Department. The bond would secure payment by the PEO of all taxes, wages, benefits or other entitlement due to or with respect to covered employees, if the PEO does not make such payments when due.
Status: 3/2/21: (S) Died in Insurance Committee.
HB 357 – Public Officials. Would increase the amount of the bond required for county purchase clerks from $75,000 to $100,000.
Status: 3/12/21: Enrolled; sent to the Governor. Due back on 3/18.
HB 358 – Public Officials. Would increase the amount of the bond required for a purchasing agent of any school board from $50,000 to $100,000.
Status: 3/2/21: (S) Died in Education Committee.
HB 1008 – Medicaid - DMEPOS. Would bring forward sections for purposes of amendment.
Status: 3/12/21: (S) Died on calendar
SB 1263 – Occupational Licensing. Would require occupational licensing boards to issue a license to an applicant who establishes residence in this state if the applicant holds a current license in good standing from another state, has been licensed by the other state for at least one year and satisfies certain other conditions.
Status: 3/16/21: (H) Concurred in amendments from Senate.
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COMMERCIAL SURETY
HB 349 – Empowerment Scholarship Accounts Program. Would require any educational assistance program that receives contributions of $50,000 or more during the school year to post a bond in an amount equal to the aggregate amount of contributions expected to be received during the school year.
Status: 3/11/21: (S) Read second time and referred to Education.
HB 471 – Roofing Contractors. Would establish provisions requiring registration certificates for roofing contractors and would authorize the Division of Professional Registration to adopt rules and regulations necessary to implement the provisions, including rules concerning, among other things, the "acquisition of insurance, indemnity coverage, or surety bonds in amounts determined by the Division."
Status: 1/7/21: (H) Read second time.
HB 500 – Mechanical Contractors. Would create the Office of Mechanical Contractors within the Division of Professional Registration, which would regulate mechanical contractors. A company that wants to engage in mechanical contracting is required to employ at least one statewide license holder, who may represent only one company at a time. Political subdivisions may establish their own local mechanical contractor license, but shall recognize a statewide license in lieu of a local license. Mechanical contractor licenses would be biennial. An applicant for a statewide license would have to provide proof of liability insurance in the amount of $1,000,000, and post bond with each political subdivision in which he or she will perform work as required by that political subdivision. This legislation appears to follow the electrical contractor law enacted in 2018.
Status: 3/10/21: (H) Placed on the Informal Perfection Calendar.
Related Bill: SB 11
HB 509 – Public Officials. Would require candidates for county recorder to provide the election authority with a copy of an affidavit of bondability, and would increase the bond amount from $1,000 to $5,000.
Status: 2/22/21: (H) In Rules - Administrative Oversight. Executive Session completed: Reported Do Pass.
HB 539 – Retail Electric Suppliers - Energy Generation Unit Installation. Would add a new section relating to the net metering and easy connection act, which provides that if a professional electrician or engineer is not licensed, the retail electric supplier may require a bond or other form of surety to insure the safe installation and operation of the qualified electric energy generation unit.
Status: 2/24/21: (H) In Utilities; public hearing completed.
HB 740 – Private Security Professionals. Would establish requirements for licensing private security professionals, which would include providing proof of a bond or other acceptable surety in an amount to be determined by the Division for all claims of injury, loss, or damage arising from the practice of the private security professional.
Status: 1/8/21: (H) Read second time.
HB 865 – Public Officials. Would authorize the creation of county early childhood education boards and require the treasurer of each board to furnish a surety bond, in an amount to be determined by the board, for the faithful performance of the treasurer's duties and faithful accounting of all moneys that may come into his or her hands. The cost of the bond would be paid by the board.
Status: 2/25/21: (H) Committee Substitute reported Do Pass. Referred to Rules - Legislative Oversight.
SB 11 – Mechanical Contractors. Would create the Office of Mechanical Contractors within the Division of Professional Registration, which would regulate mechanical contractors. A company that wants to engage in mechanical contracting is required to employ at least one statewide license holder, who may represent only one company at a time. Political subdivisions may establish their own local mechanical contractor license, but shall recognize a statewide license in lieu of a local license. Mechanical contractor licenses would be biennial. An applicant for a statewide license would have to provide proof of liability insurance in the amount of $1,000,000, and post bond with each political subdivision in which he or she will perform work as required by that political subdivision.
Status: 3/18/21: (S) On Informal Calendar S Bills for Perfection.
Related Bill: HB 500
SB 178 – Retail Electric Suppliers - Energy Generation Unit Installation. Would add a new section relating to the net metering and easy connection act, which provides that if a professional electrician or engineer is not licensed, the retail electric supplier may require a bond or other form of surety to insure the safe installation and operation of the qualified electric energy generation unit.
Status: 1/28/21: (S) Read second time and referred to Commerce, Consumer Protection, Energy and the Environment.
SB 296 – Education Savings Accounts - Elementary and Secondary Students. Would require schools receiving more than $50,000 in funds from education savings accounts during the school year to provide a surety bond payable to the State in an amount equal to the aggregate amount of the funds from such accounts expected to be paid during the school year, or financial information that demonstrates the school's ability to pay an aggregate amount equal to the amount of the funds from education savings accounts expected to be paid during the school year to students admitted to the participating school.
Status: 3/2/21: (S) In Education. Committee Substitute voted Do Pass.
SB 308 – Professional Licensing - Fresh Start. Under current law, certain professional licensing authorities are exempt from a requirement in the Fresh Start Act of 2020 that authorizes individuals with a criminal record to petition the authority for a determination of eligibility for licensure despite the criminal record. This act would remove such exemption for those certain entities.
Status: 3/1/21: (S) In Professional Registration. Committee Substitute voted Do Pass.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
LB 133 – Consumption Tax. Would impose a tax on use or consumption of taxable property or services, and allow the State Tax Commissioner to designate persons to serve as tax collectors. Tax collectors would be required to file a surety bond for faithful performance of their duties. Also, any seller that has collected more than $100,000 of consumption taxes in the previous 12 months would be required to provide security in an amount equal to the greater of $100,000 or one and one-half times the seller's average monthly tax liability during the previous 6 calendar months. Security may be in the form of a cash bond, surety bond from a surety company approved by the Tax Commissioner, CD, or a state or U.S. Treasury bond. The bond would be a continuing instrument for each calendar year or portion thereof that the bond is in effect, and must remain in effect until the surety is released and discharged.
Status: 1/27/21: In Revenue Committee. Notice of hearing for 2/3.
LB 545 – Games of Skill. Would require a person offering an opportunity for participants to engage in a game of skill who collects an entry fee from each participant, administers the game of skill, and awards prizes to segregate participant funds from operational funds or maintain a reserve that exceeds the amount of participant funds on deposit. The reserve may be in the form of cash or cash equivalents, payment-processor reserves or receivables, an irrevocable letter of credit, a bond, or any combination thereof, in an amount that must exceed the total balances of the accounts of all participants.
Status: 1/25/21: In General Affairs Committee. Notice of hearing for 2/1.
LB 649 – Digital Asset Depository Institutions. Would require a digital asset depository institution (DADI) to furnish a surety bond to the director of Banking and Finance in an amount the director would deem sufficient to cover the costs of a liquidation or conservatorship. In lieu of a bond, a DADI could irrevocably pledge specified capital equivalent to a bond. The bond would name the State of Nebraska as obligee. The director may promulgate and adopt rules and regulations regarding the surety bond.
Status: 3/9/21: In Banking, Commerce and Insurance. Flood priority bill.
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COMMERCIAL SURETY
AB 45 – Bonds Required by DOI. Would revise provisions relating to bonds filed by various persons regulated by the Commissioner of Insurance. Existing law requires a bond to be filed under certain circumstances by various persons regulated by the Commissioner. Section 3 of the bill sets forth requirements for, and procedures relating to, such bonds. The section includes sample bond forms.
Status: 2/4/21: (A) To Commerce and Labor.
SB 29 – Salvage Titles. Would require agents of the DMV who provide salvage titles to post a $50,000 bond or cash deposit with the state treasurer.
Status: 2/23/21: (A) Read first time and referred to Growth and Infrastructure.
SB 55 – Employee Leasing Companies. Would transfer the duties for the licensing and certain regulation of employee leasing companies from the Administrator of the Division of Industrial Relations of the Department of Business and Industry to the Commissioner of Insurance.
Status: 2/18/21: (S) In Commerce and Labor. Notice of eligibility for exemption.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 208 – Lightning Rod Dealers. Would repeal the statute on lightning rod dealers and salesmen, which would eliminate the $5,000 bond requirement.
Status: 3/10/21: (S) In Executive Departments and Administration. Remote hearing held on 3/17.
HB 217 – Hawkers and Peddlers. Would repeal the statute on hawkers and peddlers, which would eliminate the bond requirement.
Status: 3/5/21: (H) From Executive Departments and Administration: Inexpedient to Legislate. DEAD
HB 218 – Itinerant Vendors. Would repeal the statute on itinerant vendors, which would eliminate the $5,000 bond requirement.
Status: 1/27/21: (H) In Executive Departments and Administration. Scheduled for hearing on 2/4.
HB 287 – Remote Notarizations. Would add a chapter to the notary statutes containing the provisions for remote notarizations.
Status: 3/9/21: (H) In Judiciary. Executive Session held. Retained in committee.
SB 22 – Charitable Gaming. Would set a limit for the Lucky 7 deal size that the commission may authorize at 14,000 tickets.
Status: 3/16/21: (H) In Ways and Means. Public hearing held.
SB 27 – Charitable Gaming. Would change the term of a charitable gaming license from 12 months from issue to annually expiring on December 31. This would include games of chance and Lucky 7 tickets.
Status: 3/16/21: (H) In Ways and Means. Public hearing held.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 384 – Home Improvement Contractors. Would, with respect to home improvement contractors, expand registration requirements, add a registration exemption, require certain disclosures, impose a bond requirement, and add various provisions affecting bond liability and cancellation. It would enact registration and insurance requirements, and a bonding exemption, on certain low-value home improvement contractors. Contractors not otherwise exempt under law who enter into a home improvement contract or contracts with any consumer in a registration period that obligates the consumer to pay, in the aggregate, an amount less than $500 in a registration period, or such other amount as the director may determine by regulation, shall be subject to registration requirements, but shall not be subject to bonding requirements. Such contractors shall be required to maintain a minimum amount of commercial general liability insurance that shall be set by the director by regulation and may be less than $500,000 per occurrence.
Status: 1/14/20: (A) introduced and referred to Regulated Professions
AB 606 – Adjoining Property Entry. Would permit an owner attempting to make improvements or repairs to his property to enter an adjoining property without being deemed guilty of criminal trespass or incurring liability for civil trespass by satisfying certain prerequisites and posting a $1,000 bond with the chief law enforcement officer of the municipality in which the adjoining property is located to protect the adjoining owner from potential actual property damage caused by the entry.
Status: 1/14/20: (A) introduced and to Housing
AB 993 – e-Cigarettes - Vapor Licenses and Taxes. Would create two types of vapor business licenses: basic vapor licenses for entities seeking to sell electronic smoking devices and liquid nicotine containers, and plenary vapor business licenses for entities seeking to sell non-cartridge vaping liquid. Existing provisions concerning tax bonds remain intact.
Status: 1/14/2020: (A) introduced and referred to Health
AB 1150 – Home Restoration Contractors. Would allow the Director of the Division of Consumer Affairs in the Department of Law and Public Safety to impose a bond requirement on home restoration contractors. The director may require a home restoration contractor engaged in performing home restorations, in addition to the insurance required, to post a performance bond in favor of the owner, lessee, tenant, or other party to a home improvement contract for home restoration, in an amount as the director may establish by regulation. Every required bond shall provide that the issuer of that bond shall give the director written notice of cancellation or non-renewal of the bond within 10 days of the cancellation or non-renewal.
Status: 1/14/20: (A) introduced and referred to Regulated Professions
AB 1393 – Occupational Licensing - Persons with Criminal History Records. Would require professional and occupational boards in the Division of Consumer Affairs, when determining whether a person is disqualified from certification, registration or licensure because of a prior conviction of a crime, to consider whether the crime directly relates to the profession or occupation regulated by the board. The bill also would supplement current law to provide that no person will be disqualified from obtaining or holding any certificate, registration or license issued by a board solely because of a prior conviction of a crime, unless the crime directly relates to the profession or occupation regulated by the board.
Status: 1/14/20: (A) introduced and referred to Regulated Professions
AB 1418 – Used Motor Vehicle Dealers. Would establish the Consumer Used Car Dealer Protection Fund which would be used to satisfy unpaid judgments of consumers of used motor vehicle dealers. A used motor vehicle dealer who has not been subject to a claim against his dealer's bond or against the fund for three consecutive years would not be required to hold the $50,000 bond. Such dealer may elect to maintain continuous bonding. Before the chief administrator issues a used motor vehicle license, an applicant must file a $50,000 bond, which would be in addition to the bond required under C.56:8-77. The bond would be conditioned that the applicant will not practice fraud or make any fraudulent representation in connection with the sale or lease of a used motor vehicle, or violate any provision of Chapter 10 of Title 39 in the conduct of the applicant's business. A consumer shall have a claim against the bond, and may recover damages awarded by a court of competent jurisdiction if the consumer suffers certain damages. The surety's liability would be limited to actual damages and shall not include punitive damages or attorney's fees assessed. In cases in which a used motor vehicle dealer's surety is liable pursuant to this section, the surety shall be liable only for the first $50,000 in claims against the dealer. Thereafter, the fund would be liable for the next $75,000 in those cases in which the fund itself may be liable. There would be aggregate liability and a 30-day cancellation clause.
Status: 1/14/20: (A) introduced and referred to Transportation and Independent Authorities
AB 2637 – Used Motor Vehicle Dealers. Would enact the Used Motor Vehicle Dealer Licensing Act and establish the State Board of Used Motor Vehicle Dealers in the Division of Consumer Affairs in the Department of Law and Public Safety.
Status: 2/13/20: (A) introduced and referred to Consumer Affairs
AB 2890 – Occupational Licensing - Persons with Criminal History Records. Would require professional and occupational boards in the Division of Consumer Affairs, when determining whether a person is disqualified from certification, registration or licensure because of a prior conviction of a crime, to consider whether the crime directly relates to the profession or occupation regulated by the board. The bill also would supplement current law to provide that no person will be disqualified from obtaining or holding any certificate, registration or license issued by a board solely because of a prior conviction of a crime, unless the crime directly relates to the profession or occupation regulated by the board.
Status: 3/1/21: (A) Reported out of Appropriations with amendments; second reading. Substituted by SB 942.
Identical Bill: SB 942
AB 3242 – Developers - Completion of Common Elements of a Planned Community. Would require a developer to post a bond with the Department of Community Affairs to secure the completion of the common elements of a planned community, and maintain adequate reserve accounts for maintenance and replacement of the common elements.
Status: 2/25/20: (A) introduced and referred to Housing
AB 3456 – Private Career Schools. Would require a private career school to obtain a performance bond payable to the Commissioner of Labor and Workforce Development in an amount to be determined by the Commissioner. The proceeds of the bond would be used to pay approved refunds or to reimburse the Private Career School Student Tuition Protection Fund. The Department would pay approved claims from the bond whenever possible. If the bond is insufficient to pay all approved claims, the Department will direct the State Treasurer to issue a refund check.
Status: 2/25/20: (A) introduced and referred to Higher Education
Related Bill: SB 1807
AB 3734 – Fidelity Bond. Would establish financial reporting, public notice and records requirements for certain nonprofit youth-serving athletic organizations, such as little leagues, Babe Ruth leagues, Pop Warner leagues, Police Athletic leagues and others. Such organizations would be required to obtain insurance or a surety bond for the purpose of satisfying any claim against a signatory or any person authorized to handle the organizations's finances.
Status: 3/16/20: (A) introduced and referred to Women and Children Committee
AB 4327 – Motor Vehicle Dealers. Would require the Motor Vehicle Commission to permit a licensed motor vehicle dealer to facilitate the issuance of a certificate of ownership and certificate of registration for a used motor vehicle that is purchased by private sale, provided the vehicle is to be registered in New Jersey and complies with all requirements for issuance of a certificate of ownership and certificate of registration.
Status: 6/29/20: (A) introduced, referred to Transportation and Independent Authorities
Identical Bill: SB 2756
AB 4395 – Private Education Lenders. Would require registration of private education lenders, and include a provision that would prevent a creditor from collecting or attempting to collect a private education loan debt unless the creditor possesses "any payments, settlement, or financial remuneration of any kind paid to the creditor by a guarantor, co-signor, or surety, and the amount of payment received."
Status: 3/8/21: (A) Reported out of Higher Education with amendments; referred to Appropriations.
Related Bill: SB 2358
AB 4474 – Public Officials. Would require the secretary of the board of directors for educational service agencies for procuring custodial and food services in schools to be bonded for faithful performance of duties in an amount determined by the board.
Status: 7/30/20: (A) introduced and referred to Education
Related Bill: SB 2705
AB 4512 – Public Officials. Would establish a body politic and corporate to be known as the Clean Energy Technology Center, which would promote and advance the State's public interests through partnerships with various state and local government boards and require any officers and employees of the Center having access to its cash or negotiable securities to give bond in such amounts and with such surety as the board may prescribe.
Status: 8/10/20: (A) introduced and referred to Telecommunications and Utilities
Related Bill: SB 302
AB 5033 – Motor Vehicle Dealers. Would authorize motor vehicle dealers to sell motor vehicles online and obtain electronic signatures for motor vehicle transactions.
Status: 1/12/21: (S) Received in Senate. Referred to Transportation.
Identical Bill: SB 3279
SB 302 – Public Officials. Would establish a body politic and corporate to be known as the Clean Energy Technology Center, which would promote and advance the State's public interests through partnerships with various state and local government boards and require any officers and employees of the Center having access to its cash or negotiable securities to give bond in such amounts and with such surety as the board may prescribe.
Status: 1/14/20: (S) introduced and referred to Environment and Energy
Related Bill: AB 4512
SB 731 – Parental Rights and Property Tax Reduction Act - Tuition. Under the Act, a student enrolled in grades K-12 would be eligible to receive a public tuition allowance to enroll in a participating school. To be eligible to participate in the program, the nonpublic school must demonstrate its financial accountability. In the event that the nonpublic school receives $50,000 or more in public tuition allowance funds during the school year, the nonpublic school shall demonstrate its financial viability by: (1) filing with the department, prior to the beginning of the school year, a surety bond payable to the state in an amount equal to the aggregate amount of public tuition allowance funds expected to be paid during the school year to the parents or guardians of eligible students enrolled in the participating nonpublic school under the program; or (2) filing with the department, prior to the beginning of the school year, financial information that demonstrates the school has the ability to pay an aggregate amount equal to the amount of the public tuition allowance funds expected to be paid during the school year to the parents or guardians of eligible students enrolled in the participating nonpublic school under the program.
Status: 1/14/20: (S) introduced and referred to Education
SB 825 – Health Clubs. Would prohibit health club services contracts from limiting the liability of the health club to a buyer for injuries caused by or resulting from the negligence of the owner or operator, or an agent or employee of the owner or operator, of the health club. The bond requirement remains intact.
Status: 2/13/20: (S) reported from Commerce with amendments; 2nd reading
SB 942 – Occupational Licensing - Persons with Criminal History Records. Would require professional and occupational boards in the Division of Consumer Affairs, when determining whether a person is disqualified from certification, registration or licensure because of a prior conviction of a crime, to consider whether the crime directly relates to the profession or occupation regulated by the board. The bill also would supplement current law to provide that no person will be disqualified from obtaining or holding any certificate, registration or license issued by a board solely because of a prior conviction of a crime, unless the crime directly relates to the profession or occupation regulated by the board.
Status: 3/4/21: (S) Received from Assembly, passed. Second reading on concurrence.
Identical Bill: AB 2890
SB 1005 – Alcoholic Beverages. Would create a new taxable category of alcoholic beverages called flavored malt beverages distinct from beer and retain the existing provisions requiring licensees to post a tax bond.
Status: 1/30/20: (S) introduced and referred to Law and Public Safety
SB 1165 – Money Transmitters. Would add a provision to existing law that if a licensee has insufficient assets to make a purchaser or holder whole, the purchaser or holder will be entitled to reimbursement under the surety bond.
Status: 2/3/20: (S) introduced and referred to Commerce
NEW LAW: SB 1271 – Private Education Lenders. Would require registration of private education lenders, and include a provision that would prevent a creditor from collecting or attempting to collect a private education loan debt unless the creditor possesses "any payments, settlement, or financial remuneration of any kind paid to the creditor by a guarantor, co-signor, or surety, and the amount of payment received."
Status: 3/1/21: Approved P.L. 2021, c. 27; effective 9/1/21 )
SB 1544 – Home Improvement Contractors. Would amend the Contractors' Registration Act to add a requirement that every registered contractor who is engaged in home improvement maintain a $50,000 bond or its equivalent, executed to the State for the use and benefit of any consumer who incurs damages or suffers any loss arising out of a violation of the Act by the contractor. The bond would cover restitution and penalties. Any aggrieved person may maintain an action against the contractor and/or the surety. The director may make a claim against the bond on behalf of a consumer. The aggregate liability of the surety to all persons for all breaches of the conditions of the bond shall not exceed the amount of the bond.
Status: 2/13/02: (S) introduced and referred to Commerce
SB 1807 – Private Career Schools. Would require a private career school to obtain a performance bond payable to the Commissioner of Labor and Workforce Development in an amount to be determined by the Commissioner. The proceeds of the bond would be used to pay approved refunds or to reimburse the Private Career School Student Tuition Protection Fund. The Department would pay approved claims from the bond whenever possible. If the bond is insufficient to pay all approved claims, the Department will direct the State Treasurer to issue a refund check.
Status: 2/24/20: (S) introduced and referred to Higher Education
Related Bill: AB 3456
SB 2092 – Used Motor Vehicle Dealers. Clarifies the requirements for an established place of business of a licensed used motor vehicle dealer, and establishes provisions for audits of dealers.
Status: 3/16/20: (S) introduced and referred to Commerce
SB 2358 – Private Education Lenders. Would require registration of private education lenders, and include a provision that would prevent a creditor from collecting or attempting to collect a private education loan debt unless the creditor possesses "any payments, settlement, or financial remuneration of any kind paid to the creditor by a guarantor, co-signor, or surety, and the amount of payment received."
Status: 3/8/21: (A) Reported out of Higher Education with amendments; referred to Appropriations.
Related Bill: AB 4395
SB 2588 – Postsecondary Educational Institutions. Would require private career schools and institutions of postsecondary education to furnish a performance bond or irrevocable letter of credit in an amount equal to the school gross tuition and fees for the prior academic year.
Status: 8/25/20: (S) combined with SB 1271 and 2660 (SCS)
SB 2615 – Packaged Ice Plant Operator and Packaged Ice Dealer. Would create the Packaged Ice Plant Operator and Packaged Ice Dealer Licensing Act. Violators of the act could be subject to civil fines between $5,000 and $25,000 and the potential imposition of a performance bond requirement. The Department of Health would be authorized to compromise and settle any claim for a penalty... in an amount that is appropriate and equitable under the circumstances, including the posting of a performance bond by the violator.
Status: 7/22/20: (S) reported from Commerce; 2nd reading; referred to Budget and Appropriations
SB 2705 – Public Officials. Would require the secretary of the board of directors for educational service agencies for procuring custodial and food services in schools to be bonded for faithful performance of duties in an amount determined by the board.
Status: 7/22/20: (S) introduced and referred to Education
SB 2756 – Motor Vehicle Dealers. Would require the Motor Vehicle Commission to permit a licensed motor vehicle dealer to facilitate the issuance of a certificate of ownership and certificate of registration for a used motor vehicle that is purchased by private sale, provided the vehicle is to be registered in New Jersey and complies with all requirements for issuance of a certificate of ownership and certificate of registration.
Status: 7/30/20: (S) introduced and referred to Transportation
Identical Bill: AB 4327
SB 3279 – Motor Vehicle Dealers. Would authorize motor vehicle dealers to sell motor vehicles online and obtain electronic signatures for motor vehicle transactions.
Status: 12/14/20: (S) introduced and referred to Transportation
Identical Bill: AB 5033
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 12 – Notaries Public. Would repeal the existing notary law and enact the Revised Uniform Law on Notarial Acts (RULONA), which contains provisions for remote notarization and education. The bond provisions would remain unchanged.
Status: 3/15/21: (H) Passed the House.
SB 106 – Driver Education Schools. Would increase the amount of the bond required for driver education schools from $5,000 to $15,000.
Status: 3/15/21: (H) Passed the House.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 1270 – Consumer Litigation Funding Companies. Would require companies entering into consumer litigation funding transactions to be registered and to post a bond satisfactory to the Department of State in an amount not to exceed $50,000. The bond would be conditioned that the registrant will faithfully conform to and abide by the provisions of the article and all rules adopted by the administrator, and pay to any person(s) any and all moneys that may become due or owing to the State or such person.
Status: 1/8/21: (A) Introduced and referred to Consumer Affairs and Protection.
Related Bill: SB 705
AB 1508 – Reverse Coop Apartment Unit Loans. Would amend existing law relating to authorizing reverse coop apartment unit loans for persons 62 years of age or older and provide for additional consumer protections, including requiring every authorized lender and assignee to post a surety bond in the amount of $100,000, for the benefit of claims against the lender or assignee for failure to perform their obligations to the borrower with the State Financial Services Superintendent.
Status: 1/11/21: (A) Introduced and referred to Banks.
Related Bill: SB 760
AB 1932 – Automobile Brokers. Would increase the amount of the bond required of automobile brokers from $100,000 to $250,000.
Status: 1/13/21: (A) Introduced and referred to Consumer Affairs and Protection.
AB 2307 – Appearance Enhancement Businesses - Nail Salons. Would impose additional rules and requirements for the licensing of nail salons, including the addition of a training program. The bond requirement is unchanged.
Status: 1/14/21: (A) Introduced and referred to Economic Development.
AB 3041 – Debt Collection Agencies. Would provide for the licensure of debt collection agencies and require them to have a surety bond, contract of indemnity, or an irrevocable letter of credit as security. The bond amount would be tiered based on the number of employees, ranging from $25,000 for agencies with 1 to 4 employees to $75,000 for agencies with 20 or more employees.
Status: 1/22/21: (A) Introduced and referred to Consumer Affairs and Protection
AB 3315 – Consumer Litigation Funding Companies. Would require companies entering into consumer litigation funding transactions to be registered and to post a bond satisfactory to the Department of State in an amount not to exceed $50,000. The bond would be conditioned that the registrant will faithfully conform to and abide by the provisions of the article and all rules adopted by the administrator, and pay to any person(s) any and all moneys that may become due or owing to the State or such person.
Status: 1/22/21: (A) Introduced and referred to Consumer Affairs and Protection
AB 3380 – Towing Services. Would increase the amount of the bond required of towing licensees from $5,000 to $25,000. The maximum amount of a bond that the commissioner may require would increase from $25,000 to $250,000. Existing law allows an applicant to, in lieu of a bond or cash equivalent, make contributions to a fund to satisfy the security requirement. The bill would add language providing that any licensee who prior to the effective date of this paragraph was authorized by the commissioner to make a contribution to the fund and who has been found guilty of a violation of sections 19-169.1 and 20-515 of the code twice within a 12-month period shall be required to furnish a surety bond in an amount determined by the commissioner.
Status: 1/26/21: (A) Introduced and referred to Cities.
Related Bill: SB 1610
AB 3525 – Debt Settlement Services Providers. Would amend the Banking Law by adding a new article XII-CC - Debt Settlement Companies. As a condition for the issuance and retention of a license, applicants would have to file with the superintendent a surety bond (or other alternatives listed in the bill) in the amount of $250,000. The superintendent may (i) require a larger bond if he or she determines, in his or her sole discretion, that a licensee has engaged in a pattern of conduct resulting in bona fide debtor complaints of misconduct, and that such increased bond is necessary for the protection of debtors; or (ii) increase or decrease the amount of the bond based on the applicant's or licensee's financial condition, business plan, business experience, or any other factor the superintendent considers appropriate. The proceeds of the bond shall constitute a trust fund to be used exclusively: (i) to reimburse fees that have been improperly charged to or collected from debtors; (ii) to reimburse amounts that have not been properly distributed to creditors or properly returned to debtors; and (iii) to pay outstanding banking department examination costs and assessments.
Status: 1/27/21: (A) Introduced and referred to Consumer Affairs and Protection.
AB 3994 – Insurance Adjusters. Would eliminate the bond requirement for independent adjusters only.
Status: 2/1/21: (A) Introduced and referred to Insurance.
AB 4473 – Process Servers. Would require each process server applicant who is applying for a license to obtain and continue in full force and effect a bond, contract of indemnity, or irrevocable letter of credit in an amount based on the number of employees, ranging from $10,000 for 1 to 4 individuals to $75,000 for 20 or more individuals. The bond would be conditioned that the applicant will comply with the applicable laws and pay all civil penalties, fines, or other obligations imposed by the secretary or a court of law, investigatory costs required to be paid, or any final judgment. The total liability of the surety for all breaches of the bond condition is limited to the bond amount, and is limited to the amount of the penalty or investigatory costs; aggregate liability; 30-day cancellation clause; direct third-party liability.
Status: 2/4/21: (A) Introduced and referred to Economic Development.
AB 4606 – Occupational Licensing. Would amend the definition of "natural hair styling" to eliminate the services of twisting, wrapping, weaving, extending, locking or braiding; would add definitions of "natural hair braiding" and "threading" and exempt them from the provisions of the article, including the bond or insurance requirement.
Status: 2/4/21: (A) Introduced and referred to Economic Development.
SB 331 – Voting Machine Vendors. Would revise the existing requirement for vendor contracts for voting machines by increasing the minimum number of years from five years to ten years during which the contract must guarantee that a contractor will keep the machines and systems maintained in good working order without additional cost and to perform satisfactorily its training and service obligations under the contract. A bond is required to secure that the vendor will meet this obligation.
Status: 1/6/21: (S) Introduced and referred to Elections.
SB 705 – Consumer Litigation Funding Companies. Would require companies entering into consumer litigation funding transactions to be registered and to post a bond satisfactory to the Department of State in an amount not to exceed $50,000. The bond would be conditioned that the registrant will faithfully conform to and abide by the provisions of the article and all rules adopted by the administrator, and pay to any person(s) any and all moneys that may become due or owing to the State or such person.
Status: 1/6/21: (S) Introduced and referred to Consumer Protection.
Related Bill: AB 1270
SB 760 – Reverse Coop Apartment Unit Loans. Would amend existing law relating to authorizing reverse coop apartment unit loans for persons 62 years of age or older and provide for additional consumer protections, including requiring every authorized lender and assignee to post a surety bond in the amount of $100,000, for the benefit of claims against the lender or assignee for failure to perform their obligations to the borrower with the State Financial Services Superintendent.
Status: 1/6/21: (S) Introduced and referred to Banks.
SB 1058 – Public Officials. Would establish communication union districts and grant the board of each district the authority to require the officers of each district to be bonded for faithful performance of duties.
Status: 1/6/21: (S) Introduced and referred to Energy and Telecommunications
SB 1610 – Towing Services. Would increase the amount of the bond required of towing licensees from $5,000 to $25,000. The maximum amount of a bond that the commissioner may require would increase from $25,000 to $250,000. Existing law allows an applicant to, in lieu of a bond or cash equivalent, make contributions to a fund to satisfy the security requirement. The bill would add language providing that any licensee who prior to the effective date of this paragraph was authorized by the commissioner to make a contribution to the fund and who has been found guilty of a violation of sections 19-169.1 and 20-515 of the code twice within a 12-month period shall be required to furnish a surety bond in an amount determined by the commissioner.
Status: 2/8/21: (S) Advanced to third reading.
Related Bill: AB 3380
SB 3121 – Debt Collection Agencies. Would provide for the licensure of debt collection agencies and require them to have a surety bond, contract of indemnity, or an irrevocable letter of credit as security. The bond amount would be tiered based on the number of employees, ranging from $25,000 for agencies with 1 to 4 employees to $75,000 for agencies with 20 or more employees.
Status: 1/27/21: (S) Introduced and referred to Banks.
SB 4668 – Immigrant Assistance Services Providers. Would provide for the regulation of the licensure and practice of immigration providers by the Department of State in order to protect immigrants from exploitation. Would add a new section to section 460-l to Article 28-C providing that the Department shall issue licenses to immigration providers and, upon application, to issue renewal licenses every two years. The secretary of state would enforce the law governing the filing and maintenance of surety bonds and the application for licensure and/or renewal. Essentially, the bill would provide more specifics related to the application for license. The bill also would add language stating that a person claiming to be aggrieved by any violation by a licensee may bring a civil action for injunctive relief, damages, or both. The court shall grant a prevailing plaintiff reasonable attorney fees and costs; minimal recovery for the plaintiff shall be $5,000.
Status: 2/8/21: (S) Introduced and referred to Consumer Protection
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 40 – Fireworks Retailers. Would add a provision that the secretary may require a fireworks retailer to furnish a bond in an amount that adequately protects the state from loss if the retailer fails to pay taxes due. The bond would be conditioned on compliance with the law, and the amount would be twice the retailer's average expected monthly tax liability; $1,000 minimum, $50,000 maximum. A retailer may substitute an irrevocable letter of credit for the bond.
Status: 2/2/21: (S) Passed first reading 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
NEW LAW: HB 1026 – Grain Buyers, Brokers, Processors, and Warehousemen. Would apply existing license requirements for public warehousemen to any grain processor, defined as an entity that purchases grain to process into end products that are of a substantially different makeup or nature than the original grain. The agriculture commissioner shall require a bond in an amount based on the dollar value of the grain purchased; calculated using the value of the amount of grain intended to be purchased by a new licensee during the first year of operation, or the three-year rolling annual average of the value of grain purchased at the time of license renewal; and set at 15% of the value of the intended or actual purchase amount of grain, rounded to the nearest $10,000.
Status: 3/9/21: Signed by the Governor on 3/9. Filed with the Secretary of State. Effective 8/1/21
SB 2189 – Electronic Smoking Devices. Would add electronic smoking devices to the items sold by distributors and dealers.
Status: 3/12/21: (S) Passed House and returned to Senate.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 65 – Bingo Supply Distributors and Manufacturers. Would require an applicant for a bingo supply distributor license to file with the attorney general a bond in the sum of $50,000. The bond must be maintained in effect as long as the license is valid; however, the liability of the surety shall not exceed an all-time aggregate liability of $50,000. The bond, which may be in the form of a rider to a larger blanket liability bond, shall run to the state and to any person who may have a cause of action against the principal for any liability arising out of a violation of the law or any rules adopted. Further, no distributor shall knowingly sell, offer to sell, or otherwise provide or offer to provide an electronic instant bingo system to any person for use in the state, or maintain, update, or repair an electronic instant bingo system, without first obtaining an electronic instant bingo distributor endorsement to the person's distributor license. An applicant for a distributor license may apply simultaneously for an electronic instant bingo distributor endorsement to that license, which would be valid for the period of the underlying distributor license. The bill also includes a $50,000 bond requirement for bingo supply manufacturers and an endorsement for electronic instant bingo systems.
Status: 2/4/21: (H) Referred to Finance.
HB 88 – Roofing Contractors. Would amend the definition of "specialty contractor" to include roofing contractors, and add a roofing section to the Ohio Construction Industry Licensing Board.
Status: 2/10/21: (H) Referred to Commerce and Labor.
SB 49 – Release of Lien Bond. Would create payment assurance program for design professionals. The bill provides that any person with an interest in commercial real estate on which a lien has been perfected, or named in the affidavit, may apply to the common pleas court of the county in which the commercial real estate is located to substitute financial security for the lien. The security would have to be in an amount equal to the landscape architect's (or professional engineer's or professional surveyor's) claim, and in a form such as an escrow account or surety bond held by the clerk of courts or other party as determined adequate by the court.
Status: 2/10/21: (S) Referred to Judiciary.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1086 – Guardian and Ward. Would add a new section of law that provides that if a ward is the owner of any real or personal property that is or may be deemed an available resource by the U.S. SSA or by the applicable Medicaid rules, the guardian may petition the court for permission to transfer or convey such property to a protective arrangement. The guardian would file a verified petition setting forth what specific property is or may be deemed a resource by the federal or state authority, including an affirmative statement that such resource will or may affect the ward's receipt of public benefits unless such resource is transferred to a protective arrangement (defined in the bill). If the petition is approved by the court, such transfer or conveyance shall not be considered a sale of the property. If a bond was previously required by the court, the court may continue the bond to include assets transferred or conveyed to a protective arrangement, require a new bond in a lesser amount due to the transfer of some or all of the ward's resources or waive the requirement of a bond on the value of the transferred assets. The primary purpose of this new section would be to authorize a guardian to pursue on behalf of the ward those same steps that any legally competent person could pursue to apply for or retain Medicaid or Social Security benefits.
Status: 3/15/21: (S) Second reading, referred to Judiciary.
HB 1149 – Used Motor Vehicle Dealer Salespersons. Would add a subsection that provides that a certificate of registration would permit the registered person to engage in the activities of a used motor vehicle salesperson. Further, the bill provides that a person may sell used motor vehicles without obtaining a separate used motor vehicle salesperson's certificate of registration if the person has a certificate of registration from the Oklahoma Motor Vehicle Commission to sell new or unused motor vehicles at a new motor vehicle dealer's licensed franchise location which also sells used vehicles; provided, such a person would only be authorized to sell used motor vehicles for the dealer at the new motor vehicle dealer's licensed franchise location and to represent the new motor vehicle dealer at used motor vehicle auctions. Certificates of registration for salespersons renew biennially.
Status: 3/17/21: (S) Second reading, referred to Business, Commerce and Tourism.
HB 1153 – Manufactured Home Dealers. Would amend the definition of "restricted manufactured home park dealer" to include any person who is engaged wholly or in part in the business of selling or leasing manufactured homes which are personal property with an option to purchase or own in any form at any time after the beginning of the lease term any new and unused, or used, or both new and used manufactured homes. Would require that each manufactured home manufacturing facility selling directly to a licensed manufactured home dealer or restricted manufactured home park dealer to post a $30,000 bond.
Status: 3/15/21: (S) Second reading, referred to Business, Commerce and Tourism.
HB 1939 – Roofing Contractors. Would require roofing subcontractors to post a $5,000 surety bond conditioned on compliance with the law, rules and regulations, and performance of work. The bond would be continuous with a 30-day cancellation notice.
Status: 2/2/21: (H) Second reading; referred to Rules.
SB 221 – Scholarship Programs. Would create the Wellness Scholarship Program to provide a scholarship to an eligible private school of choice for students who have health-related concerns. Participating schools would have to demonstrate fiscal soundness by having been in operation for one school year or providing the State Department of Education with a written statement prepared by a CPA, confirming that the school is insured and the owner(s) has sufficient capital or credit to operate the school for the upcoming year by serving the number of students anticipated with expected revenues from tuition and other sources that may be reasonably expected. In lieu of the statement, a surety bond or letter of credit for the amount equal to the scholarship funds for any quarter may be filed with the Department.
Status: 2/2/21: (S) Second reading; referred to Education, then to Appropriations.
SB 222 – Scholarship Programs. Would create the Hope Scholarship Program to provide a scholarship to an eligible private school of choice for students who have experienced bullying incidents. Participating schools would have to demonstrate fiscal soundness by having been in operation for one school year or providing the State Department of Education with a written statement prepared by a CPA, confirming that the school is insured and the owner(s) has sufficient capital or credit to operate the school for the upcoming year by serving the number of students anticipated with expected revenues from tuition and other sources that may be reasonably expected. In lieu of the statement, a surety bond or letter of credit for the amount equal to the scholarship funds for any quarter may be filed with the Department.
Status: 3/15/21: (H) First reading.
SB 314 – Construction Contracts - Residential. Would require a contract for new construction of a residence to have a provision that upon the written request of the purchaser, the contractor shall meet in person with the purchaser within a reasonable time to discuss observable construction defects or change orders. Failure of a contract to have an in-person meeting provision would require the contractor to meet with the purchaser not later than 72 hours after receiving notice. Failure to comply would be deemed an intentional breach of contract by the contractor. Observable construction defects would have to be remedied within 30 days after the meeting.
Status: 2/2/21: (S) Second reading; referred to Business, Commerce and Tourism.
SB 418 – Construction Contracts - Residential. Notice of Opportunity to Repair Act; modifying consequence of inclusion of certain provisions in construction contracts.
Status: 3/3/21: (H) First reading.
SB 916 – Notaries Public - RONs and Services Providers. Notarial acts; authorizing certification or attestation of documents through electronic means.
Status: 2/2/21: (S) Second reading; referred to Judiciary.
SB 995 – Motor Carrier Enforcement Officers. Would eliminate the oath of office and bond requirement. Current law requires an enforcement officer to execute a $25,000 bond for faithful performance of duties.
Status: 2/2/21: (S) Second reading; referred to Transportation, then to Appropriations.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 2175 – Student Loan Servicers. Would require a person applying for a license to engage in the business of servicing student loans to file a corporate surety bond or an irrevocable letter of credit, naming the State of Oregon as the obligee and in an amount that would be specified by rule.
Status: 1/19/21: (H) Referred to Business and Labor.
Related Bill: SB 485
HB 2311 – Motor Vehicle Repair Liens. Would amend existing law affecting any person that creates, attaches, asserts or claims lien in connection with making, altering, repairing, transporting, storing, performing services, supplying materials or performing labor in connection with a motor vehicle by allowing an irrevocable letter of credit as an option to the existing $20,000 surety bond requirement. The bill would add additional language to the bond requirement, specifying that the surety bond or irrevocable letter of credit must be executed to the State of Oregon, approved by the AG, and filed with the Motor Vehicles Department.
Status: 3/17/21: (S) First reading; referred to President's desk.
HB 2637 – Litigation Funding. Would require an applicant for a consumer litigation funding license to file a corporate surety bond or an irrevocable letter of credit in an amount, not less than $50,000, that the director specifies by rule. The bond would run to the State and be designated exclusively to pay all obligations due to recipients who prevail in an action against the bond. A licensee shall renew or replace the bond in the amount the director specifies if claims against the bond result in a withdrawal of or a reduction in the amount of the bond.
Status: 1/19/21: (H) Referred to Business and Labor.
SB 485 – Student Loan Servicers. Would require a person applying for a license to engage in the business of servicing student loans to file a corporate surety bond or an irrevocable letter of credit, naming the State of Oregon as the obligee and in an amount that would be specified by rule.
Status: 2/24/21: (S) Referred to Ways and Means by order of the President.
Related Bill: HB 2175
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 378 – Occupational Licensing - Unlawful Employment Practices. Would enact the Ex-Offender Increased Access to Employment Act, which would prohibit an employer or employment agency from inquiring about or into, or consider or require disclosure of, the criminal record or criminal history of an applicant until after a conditional offer of employment is made. This requirement would not apply to positions where a standard fidelity bond or an equivalent is required and an applicant's conviction of one or more specified criminal offenses would disqualify the applicant from obtaining the bond, in which case an employer may include a question or otherwise inquire whether the applicant has ever been convicted of any of the specified criminal offenses.
Status: 2/3/21: (H) Introduced and referred to Labor and Industry.
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COMMERCIAL SURETY
HB 5425 – Financial Technology Sandbox. Would establish an economic growth blockchain act, regulate virtual and digital assets and establish depository banks for such purposes. Would require a person authorized to enter into the financial technology sandbox to post a consumer protection bond with the commissioner or secretary as security for potential losses suffered by consumers. The bond amount would be determined by the commissioner or secretary in an amount not less than $10,000, and shall be commensurate with the risk profile of the innovative financial product or service. Unless the bond is enforced, the commissioner or secretary shall cancel or allow the bond to expire two years after the date of the conclusion of the sandbox period. The bill also would require a special purpose depository institution to furnish a surety bond to the commissioner to cover costs likely to be incurred by the commissioner in a liquidation or conservatorship of the institution. The amount of the bond would be determined by the commissioner in an amount sufficient to defray such costs. In lieu of a bond, an institution may irrevocably pledge specified capital equivalent to a bond. A special purpose depository institution also would have to maintain appropriate insurance or a bond covering the operational risks of the institution, which shall include coverage for directors' and officers' liability, errors and omissions liability, and information technology infrastructure and activities liability.
Status: 2/21/21: (H) In Corporations. Hearing postponed at request of sponsor.
HB 5428 – Occupational Licensing. Would amend the Business and Professions Code by adding a new chapter 90 entitled the Occupational Licensing Review Act, the purpose of which would be to establish a policy for the regulation of occupations, specifying criteria for government regulation to increase opportunities, promote competition, encourage innovation, protect consumers, establish canons of statutory interpretation, and create a process to review the criminal history of business owners to reduce offenders' disqualifications.
Status: 3/10/21: (H) Withdrawn at sponsor's request.
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COMMERCIAL SURETY
HB 3055 – Public Officials. Would eliminate the requirement for the board that governs the Department of Natural Resources to require certain designated officers, agents and employees to give bond for the faithful performance of their duties.
Status: 2/9/21: (H) Recommitted to Agriculture, Natural Resources and Environmental Affairs.
HB 3255 – Appraisal Management Companies. Would amend the statute to reflect the $25,000 bond amount adopted by rule, and would eliminate the detailed statement of current financial condition option in lieu of a bond. Claims may be filed by the claimant in accordance with the terms of the bond on a bond claim form approved by the board, provided claims are limited to actual damages and do not include attorney's fees or punitive damages, and all liability on a bond is applicable to the bond in effect as of the date of occurrence which gave rise to the liability.
Status: 3/3/21: (S) Introduced and read first time. Referred to Labor, Commerce and Industry.
HB 3431 – Magistrates Court. Would increase the civil jurisdiction of the magistrate court from $7,500 to $15,000.
Status: 1/12/21: (H) Introduced, read first time and referred to Judiciary.
Related Bills: SB 65 (SB 117 and SB 199 would increase it to $10,000).
HB 3686 – Student Loan Servicers. Would require a person acting as a student loan servicer to obtain a license and file a surety bond in an amount determined by the administrator, based on the total dollar amount of loans subject to regulation in a calendar year, ranging from $50,000 to $150,000. The bond would be for the use of the State for the recovery of expenses, fines, and fees levied and for consumers who have losses or damages as a result of noncompliance with the law by the servicer.
Status: 1/14/21: (H) Introduced, read first time and referred to Education and Public Works.
SB 65 – Magistrates Court. Would increase the civil jurisdiction of the magistrate court from $7,500 to $15,000.
Status: 1/12/21: (S) Introduced, read first time and referred to Judiciary.
Related Bills: HB 3431 (SB 117 and SB 199 would increase it to $10,000).
SB 532 – Earned Income Access Service Providers. Would amend the Consumer Protection Code by adding a chapter to provide for earned income access. An "earned income access service provider" is defined as any entity engaged in the business of delivering earned but unpaid wages or income to a consumer in the state. The new law would require providers to register with the Department of Consumer Affairs and file a bond or letter of credit in the amount of $50,000. A provider must file renewal paperwork, to include a sworn affirmation as to continuation of the bond, with the Department no later than March first of each year. The amount of the bond may only be increased by regulation.
Status: 2/9/21: (S) Introduced, read first time and referred to Banking and Insurance.
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 1097 – Public Officials. Would allow counties to self-insure their risk of loss in lieu of obtaining bonds or insurance to cover their liability for county officers and employees.
Status: 3/18/21: (H) Placed on Regular Calendar for 3/22.
Related Bill: SB 1261
SB 1261 – Public Officials. Would allow counties to self-insure their risk of loss in lieu of obtaining bonds or insurance to cover their liability for county officers and employees.
Status: 3/16/21: (S) Placed on Senate State and Local Government Committee calendar for 3/23. 1/12 - 4/30; bills may carryover to 2022
Related Bill: HB 1097
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1121 – Sports Betting. Would amend the Occupations Code by adding Chapter 2005 - Sports Betting. The executive director of the Department of Licensing and Regulation may require bond or other surety satisfactory to the executive director from sports betting operation permit holders in the amount provided by rules adopted under this chapter. The executive director may not issue permits for more than five sports betting operations to operate at any time. A permit is valid for three years from the date of issuance.
Status: 3/4/21: (H) Read first time and referred to State Affairs.
HB 1357 – Special Constables. Relates to the appointment, powers, duties, rights, and privileges of special Texas constables. Would require a special Texas constable to post a $5,000 bond that would indemnify all persons against damages resulting from an unlawful act of the constable. The Department [of Safety] may establish by rule standards governing the conduct and duties of this constable. An appointment would expire on January 15 of the fifth calendar year after the year in which the appointment was made.
Status: 3/18/21: (H) In Homeland Security and Public Safety. Public hearing held.
HB 1460 – Air Ambulance Subscription Providers. Would amend the Insurance Code by adding Chapter 1654 - Air Ambulance Subscriptions. "Air ambulance subscription provider" means a person who, directly or indirectly, including through an affiliated entity or agreement with a third party, solicits membership subscriptions, accepts applications, or charges membership fees for a subscription program that: (A) indemnifies a person against the cost of emergency transportation in an air ambulance; and (B) is required to secure a surety bond under Section 773.011, Heath and Safety Code.
Status: 3/5/21: (H) Read first time and referred to Insurance.
HB 2178 – Guardians and Guardianships. This bill relates to guardianships, management trusts, and certain other procedures and proceedings for persons who are incapacitated. Provides that a guardian may make and file a declaration in lieu of an oath as part of the qualification process. The bond requirement remains intact.
Status: 3/15/21: (H) Read first time and referred to Judiciary and Civil Jurisprudence.
Related Bill: SB 626
SB 615 – Judges. Sections 24 - 26 of the bill add subsections relating to visiting judges or associate judges and bond coverage. The bill provides that a bond executed by the judge elected or appointed to a statutory county court or an insurance policy obtained shall provide the same coverage to a visiting judge assigned to the court or to an associate judge appointed by the court as the bond or insurance policy provides to the judge elected or appointed to the court.
Status: 3/11/21: (S) Read first time and referred to Jurisprudence.
SB 626 – Guardians and Guardianships. This bill relates to guardianships, management trusts, and certain other procedures and proceedings for persons who are incapacitated. Provides that a guardian may make and file a declaration in lieu of an oath as part of the qualification process. The bond requirement remains intact.
Status: 3/18/21: (S) In Jurisprudence. Public hearing held.
Related Bill: HB 2178
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SB 36 – Taxes. Would allow the State Tax Commissioner to waive the bond requirement for a person whose tax license was revoked for a delinquency, provided the person is in compliance with a payment agreement approved by the Commissioner.
Status: 2/25/21: signed by the Governor; effective 4/27/21
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
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 1120 – Tobacco Tax. Would amend the definition of "tobacco products" to include electronic smoking devices for purposes of expanding tax liability. The bond provisions remain without revision.
Status: 12/4/20: (H) Left in Finance.
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: 12/4/20: (H) Left in Labor and Commerce.
HB 2223 – Public Officials. Eliminates language that directs certain officers and board members to procure individual surety bonds mandated by current law when such officers and board members are already covered under bonding provided by the Division of Risk Management. The bill directs such officers and board members to be bonded pursuant to the blanket surety bond plan for state and local employees.
Status: 2/25/21: (H) Enrolled bill sent to the Governor; action deadline is 3/31.
SB 1324 – Appraisal Management Companies - Statute of Limitations. Would add language relating to actions against appraisal management companies. The bill provides that no action for damages or other relief alleging that an appraisal management company committed malpractice or negligence or an error, mistake, omission, or breach in an appraisal or appraisal report, whether based on contract or tort, shall be brought unless it is filed within one year from the date that the alleged transgression is discovered or should have been discovered, and in no case more than five years from the date of the transgression. Provided, such provisions shall not apply to any action in which it is alleged that an appraisal management company committed fraud with respect to an appraisal or appraisal report or any proceedings initiated by the Board. Any action for damages or other relief alleging that an appraisal management company committed malpractice or negligence or an error, mistake, omission, or breach in an appraisal or appraisal report on or before July 1, 2021, shall be filed in a court of competent jurisdiction and proper venue on or before July 1, 2022, regardless of the date of discovery of the alleged malpractice, negligence, error, mistake, omission, or breach.
Status: 3/1/21: (H) Left in Courts of Justice.
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 2006 – Contractor Licensing. Would repeal the West Virginia Contractor Licensing Act and reenact it as Article 42 of Chapter 30 - Professions and Occupations. The provision for a contractor who has violated the law or rules to provide financial assurance as a condition of licensure remains. The bill would restrict municipalities, local governments, and counties from requiring a license at their jurisdictional level to perform contracting work.
Status: 3/17/21: (H) House concurred in Senate amendment and passed bill. Communicated to Senate. Completed legislative action.
HB 2007 – Occupational Licensing - Reciprocity. Would require that applicants seeking licensure in the state of West Virginia not have ever had a license revoked or suspended in another state, not have any pending investigations or disciplinary proceedings in another state, and that the boards in every state where a person is licensed hold an applicant in good standing. The applicant would be required to meet all state bonding requirements for licensure.
Status: 2/19/21: (S) Introduced and referred to Government Organization. Subsequent referral to Judiciary.
HB 2008 – Trades Licensing. Would amend requirements for licensure relating to elevator mechanics, crane operators, HVAC, electricians, and plumbers, providing for state code precedence over local ordinances.
Status: 3/17/21: (S) Passed Senate with amended title. Requests House to concur.
HB 2180 – Trades Licensing. Would prohibit the enactment or application of local laws for the registration, certification, or licensing of any trade, occupation, or profession. The bill provides that unless specifically authorized under chapter 7 (and 8), a county commission (or municipality or governing body) shall not enact, and shall not enforce, any law, ordinance, regulation, or rule requiring the licensing, certification, or registration of any person or business in order to practice or conduct a trade, occupation, or profession within the jurisdiction of the county (municipality or governing body). The bill adds a new section 30-1-27 to Chapter 30 - Professions and Occupations, which states that the power to regulate occupations for the protection of the public is exclusively a function of the Legislature. A public body or political subdivision may only propose and administer the regulation of a trade, occupation, or profession - including, but not limited to, the issuance of a license, requirement of registration, or recognition of a certification - to the extent expressly authorized to do so under this code.
Status: 2/10/21: (H) Introduced and referred to Government Organization
Related Bill: HB 2319
HB 2251 – Trades Licensing. Would reorganize various boards and authorities for the licensing and oversight of trades, occupations, and professions. The purpose of the bill is to reorganize the articles in the current Chapter 30, regarding licensing of professions and occupations, into three separate chapters arranged by duties and educational requirements, both prior to and following licensing. The bill is recommended by the Joint Standing Committee on Government Organization.
Status: 2/10/21: (H) Introduced and referred to Government Organization.
HB 2296 – Contractor Licensing. Would repeal the West Virginia Contractor Licensing Act and reenact it as Article 42 of Chapter 30 - Professions and Occupations. The provision for a contractor who has violated the law or rules to provide financial assurance as a condition of licensure remains. The bill would restrict municipalities, local governments, and counties from requiring a license at their jurisdictional level to perform contracting work.
Status: 2/11/21: (H) Introduced and referred to Government Organization.
HB 2319 – Trades Licensing. Would prohibit the enactment or application of local laws for the registration, certification, or licensing of any trade, occupation, or profession. The bill provides that unless specifically authorized under chapter 7 (and 8), a county commission (or municipality or governing body) shall not enact, and shall not enforce, any law, ordinance, regulation, or rule requiring the licensing, certification, or registration of any person or business in order to practice or conduct a trade, occupation, or profession within the jurisdiction of the county (municipality or governing body). The bill adds a new section 30-1-27 to Chapter 30 - Professions and Occupations, which states that the power to regulate occupations for the protection of the public is exclusively a function of the Legislature. A public body or political subdivision may only propose and administer the regulation of a trade, occupation, or profession - including, but not limited to, the issuance of a license, requirement of registration, or recognition of a certification - to the extent expressly authorized to do so under this code.
Status: 2/12/21: (H) Introduced and referred to Government Organization.
Related Bill: HB 2180
SB 269 – Occupational Licensing - Reciprocity. Would require that applicants seeking licensure in the state of West Virginia not have ever had a license revoked or suspended in another state, not have any pending investigations or disciplinary proceedings in another state, and that the boards in every state where a person is licensed hold an applicant in good standing. The applicant would be required to meet all state bonding requirements for licensure.
Status: 2/12/21: (S) Introduced and referred to Government Organization.
Related Bill: HB 2007
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 100 – Guardians. Would establish initial training requirements for guardians. Every proposed guardian of the person must complete training on all of the following topics: (1) the duties and required responsibilities of a guardian under the law and limits of a guardian's decision-making authority; (2) alternatives to guardianship, including supported decision-making and powers of attorney; (3) rights retained by a ward; (4) best practices for a guardian to solicit and understand the wishes and preferences of a ward, involving a ward in decision making, and taking a ward's wishes and preferences into account in decisions made by the guardian; (5) restoration of a ward's rights and the process for removal of guardianship; (6) future planning and identification of a potential standby or successor guardian; and (7) resources and technical support for guardians. The bill also requires that every proposed guardian of the estate complete training on the duties and responsibilities of a guardian under the law and limits of a guardian's decision-making authority and inventory and accounting requirements. There would be limited exemptions to the training requirements for certain corporate guardians, volunteer guardians, and guardians of minors.
Status: 2/18/21: (A) Introduced, read first time and referred to Family Law.
SB 92 – Guardians. Would establish initial training requirements for guardians. Every proposed guardian of the person must complete training on all of the following topics: (1) the duties and required responsibilities of a guardian under the law and limits of a guardian's decision-making authority; (2) alternatives to guardianship, including supported decision-making and powers of attorney; (3) rights retained by a ward; (4) best practices for a guardian to solicit and understand the wishes and preferences of a ward, involving a ward in decision making, and taking a ward's wishes and preferences into account in decisions made by the guardian; (5) restoration of a ward's rights and the process for removal of guardianship; (6) future planning and identification of a potential standby or successor guardian; and (7) resources and technical support for guardians. The bill also requires that every proposed guardian of the estate complete training on the duties and responsibilities of a guardian under the law and limits of a guardian's decision-making authority and inventory and accounting requirements. There would be limited exemptions to the training requirements for certain corporate guardians, volunteer guardians, and guardians of minors.
Status: 3/17/21: (A) Received from Senate.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 74 – Public Officials. Would establish a removal mechanism for any elected official in any form of municipal government, provide for a replacement procedure, and repeal an existing recall mechanism.
Status: 3/12/21: (H) From Corporations: Do Pass failed.
SB 40 – Money Transmitters. Would amend the Money Transfers Act by updating the bonding requirements. The bill would allow the bond or other security to be provided with the license application or upon approval of the application, as determined by the applicant. The bond shall be in the amount of $10,000 or two and one-half times the outstanding payment instruments, whichever is greater, not to exceed $500,000. The Commissioner may increase the required amount of the bond up to the maximum upon the basis of the impaired financial condition of a licensee as evidenced by a reduction in net worth, financial losses or other relevant criteria. The bond would run to the State for the benefit of any claimants, and would secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission and payment of money in connection with the sale and issuance of payment instruments or transmission of money. Aggregate liability and direct third-party liability.
Status: 3/17/21: (H) Introduced and referred to Minerals.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
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