NEWS

COMMERCIAL SURETY   

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

Status:  Pre-filed 

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

COMMERCIAL SURETY 

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

Status:  1/16/19: (S) referred to Labor and Commerce; additionally referred to Finance

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

COMMERCIAL SURETY

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

Status:  2/11/19: (H) third read, passed House. Transmitted to Senate    

COMMERCIAL SURETY 

HB 1117 – Public Officials.  Would repeal the bond requirements for the director of the Arkansas Natural Resources Commission ($10,000), the state forester ($25,000), and the state forester's assistants.

Status:  1/14/19: (H) introduced and referred to State Agencies and Government Affairs

HB 1118 – Public Officials.  Would repeal the requirement for the director of Parks and Tourism to post a $10,000 bond conditioned on faithful performance of duties.

Status:  1/14/19: (H) introduced and referred to State Agencies and Government Affairs

HB 1371 – Fidelity Bonds.  Would repeal the fidelity bond requirement for employees of the bank commissioner.  The bond covers the liabilities for the employee's position.

Status:  2/4/19: (H) read first time, rules suspended, read second time and referred to State Agencies and Governmental Affairs 

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

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

Status:  2/11/19: (S) amended on Senate floor. Re-referred to Public Health, Welfare and Labor    

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

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

COMMERCIAL SURETY 

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

Status:  2/4/19: (S) introduced and assigned to Business, Labor & Technology  

HB 1117 – Professions and Occupations.  Would revise the Department of Regulatory Agencies' existing sunrise and sunset review process for regulations to require the use of the least restrictive form of an occupational regulation based on the ALEC model act.  Required bonding and insurance would be considered more restrictive and voluntary bonding and insurance would be considered less restrictive.  There would be a rebuttable presumption that market competition and private remedies would be sufficient to protect consumers.  The Department would have to find credible evidence of a present, significant, and substantiated harm to consumers that warrants the enactment of a government regulation to protect consumers.  If the risk includes the failure to complete a contract, the Department may recommend bonding requirements.

Status:  2/13/19: (H) from Business Affairs and Labor Committee: Postpone indefinitely  

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

Status:  2/7/19: (S) from Health and Human Services: refer amended to Finance

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

Status:  2/12/19: (H) introduced and assigned to Finance  

CONTRACT SURETY 

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

Status:  1/23/19: (S) introduced; referred to Transportation and Energy

Status:  2/12/19: (S) introduced; referred to Finance   

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

COMMERCIAL SURETY

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

Status:  2/8/19: referred to Joint Committee on Higher Education and Employment Advancement.  Public hearing scheduled for 2/14/19. 

CONTRACT SURETY

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

Status:  2/7/19: (H) in Transportation; reserved for subject matter public hearing

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

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

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

COMMERCIAL SURETY 

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

Status:  2/14/19: (H) referred to Commerce, Business & Professions Subcommittee; added to agenda    

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

Status:  1/30/19: (H) in Civil Justice Subcommittee

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

Status:  1/30/19: (H) referred to Civil Justice Subcommittee; referred to Transportation and Infrastructure Subcommittee; referred to Judiciary

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

Status:  1/30/19: (H) in Transportation & Infrastructure Subcommittee

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

Status:  2/8/19: (S) referred to Judiciary; Governmental Oversight and Accountability; Rules  

Related Bill:  HB 409

CONTRACT SURETY 

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

Status:  2/18/19: (H) in Commerce; Oversight, Transparency and Public Management Subcommittee  

Related Bill:  SB 246  

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

Status:  2/18/19: (H) reported out of Transportation & Infrastructure Subcommittee; laid on table under Rule 7.18(a). Committee substitute filed.

Related Bill:  SB 898   

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

Status:  2/11/19: (S) on committee agenda - Banking and Insurance, temporarily postponed  

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

Status:  2/15/19: (S) in Community Affairs  

Related Bill:  HB 101

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

GEORGIA – GA General Assembly | Session Dates:  1/14/19 – 3/29/19

COMMERCIAL SURETY

HB 257 – Magistrates.  Would increase the amount of the bond required for magistrates from $25,000 to $100,000.

COMMERCIAL SURETY 

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

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

Related Bill:  SB 250  

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

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

Related Bill:  SB 537

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

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

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

Related Bill:  SB 1212  

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

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

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

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

Related Bill:  HB 70

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

Status:  2/19/19: (S) Ways and Means to hold public decision making on 2/21/19 at 10:00 am   

Related Bill:  HB 79

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

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

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

Status:  2/15/19: (S) Commerce, Consumer Protection, and Health recommends that the measure be passed with amendments     

Related Bill:  HB 986 

CONTRACT SURETY     

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

Status:  2/15/19: (H) passed second reading as amended and referred to Finance  

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

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

Related Bill:  SB 882 

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

Status:  2/14/19: (H) from Judiciary with the recommendation that the measure be deferred  

Related Bill:  SB 1251  

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

Status:  2/13/19: (H) re-referred to Intrastate Commerce/Economic Development and Business, and Finance  

Related Bills:  HB 1156 and SB 553 

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

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

Related Bills:  HB 1062 and SB 553

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

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

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

Status:  2/15/19: (H) passed second reading as amended and referred to Finance  

Related Bill:  SB 1535

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

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

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

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

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

Status:  2/14/19: (S) report adopted; passed second reading as amended and referred to Ways and Means/ Commerce, Consumer Protection, and Health  

Related Bills:  HB 1062 and HB 1156

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

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

Related Bill:  HB 889

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

Status:  1/28/19: (S) referred to Water and Land; subsequent referral set for Ways and Means. 

Related Bill:  HB 1025 

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

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

Related Bill:  HB 1582  

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

IDAHO – ID Legislature | Session Dates:  1/7/19 – 3/22/19

COMMERCIAL SURETY 

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

Status:  2/13/19: (S) reported out of Commerce and Human Resources; to 14th Order for amendment  

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

Status:  2/4/19: (S) referred to Commerce and Human Resources   

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

COMMERCIAL SURETY 

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

Status:  2/15/19: (H) in Judiciary - Civil; to Commercial Law subcommittee

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

Status:  2/13/19: (H) first reading, referred to Rules   

CONTRACT SURETY 

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

Status:  2/14/19: (H) in Revenue and Finance; to Property Tax Subcommittee   

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

COMMERCIAL SURETY 

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

Status:  1/24/19: (H) referred to Senate

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

Status:  2/5/19: (H) passed House. Transmitted to Senate.   

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

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

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

Status:  2/5/19: (H) referred to Senate 

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

Status:  2/5/19: (H) referred to Senate

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

Status:  2/7/19: (S) Judiciary Committee Report: amend, do pass, adopted

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

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

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

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

Related Bill:  SB 211

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

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

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

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

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

Status:  2/11/19: (S) in Commerce and Technology; authors removed and added  

CONTRACT SURETY   

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

Status:  1/24/19: (H) Passed. Referred to Senate  

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

Status:  2/20/19: (H) passed House, referred to Senate

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

Status:  2/12/19: (S) in Appropriations; bill authors removed/added 

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

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

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

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

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

COMMERCIAL SURETY 

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

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

Related Bills:  HF 163, SF 142 

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

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

Related Bills:  HF 64, SF 142 

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

Status:  2/14/19: (H) introduced, placed on calendar  

Related Bill:  SF 268

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

Status:  2/6/19: (H) in Transportation; subcommittee recommends passage

HSB 15 – Home Improvement Contractors.  Would require any contractor, prior to entering into a home improvement contract in Iowa, to file with the Division of Labor Services of the Department of Workforce Development a $75,000 surety bond.  The bond would be for the benefit of any person damaged by the contractor's breach of contract or a violation of the law, regardless of whether the person has a direct cause of action.  Any person so damaged may bring suit directly on the bond without assignment, and may recover from bond proceeds actual damages, court costs, and reasonable attorney fees.  The attorney general may make a direct claim on the bond or bring an action in equity on behalf of the state to recover bond proceeds for persons suffering damage.  Priority for payment shall be based on the time of filing a notice with the Division, except that any claim or action by the attorney general shall take precedence over all other claims on the bond.

Status:  1/29/19: (H) in Commerce; subcommittee meeting: 1/30/19

HSB 22 – Guardianships and Conservatorships.  Would revise the cases in which a court could waive the bond requirement for a conservator by eliminating the option to waive the bond for conservatorships with assets of less than $25,000.  The bond could only be waived for financial institutions with Iowa trust powers or if the conservator provides an alternate form of protecting the assets that the court approves.  Existing law permits an individual's will to waive the bond requirement.

Status:  2/6/19: (H) in Judiciary; subcommittee recommends passage   

Related Bill:  SSB 1018

Related Bills:  HSB 101, SSB 1080, SSB 1100   

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

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

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

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

Related Bills:  HF 64, HF 163 

SF 268 (SSB 1072) – Travel Trailer Dealers.  Would increase the amount of the bond required for travel trailer dealers from $25,000 to $75,000.

Status:  2/14/19: (S) introduced, placed on calendar; Judiciary Committee Report, approving bill.  

Related Bill:  HF 391

SSB 1018 – Guardianships and Conservatorships.  Would revise the cases in which a court could waive the bond requirement for a conservator by eliminating the option to waive the bond for conservatorships with assets of less than $25,000.  The bond could only be waived for financial institutions with Iowa trust powers or if the conservator provides an alternate form of protecting the assets that the court approves.  Existing law permits an individual's will to waive the bond requirement.

Status:  2/14/19: (S) in Judiciary; subcommittee meeting: 2/20/19   

Related Bill:  HSB 22 

SSB 1020 – Public Officials.  Would create the Insurance Fraud Bureau Special Fund and require the state treasurer to post an additional bond to secure the faithful performance of his/her duties in connection with the fund.  The Governor would determine the amount of the bond required.

Status:  1/23/19: (S) in Commerce; subcommittee assignments: Chapman, Bolkcom and Brown  

SSB 1072 – Travel Trailer Dealers.  Would increase the amount of the bond required for travel trailer dealers from $25,000 to $75,000.

Status:  2/7/19: (S) in Judiciary; subcommittee recommends passage   

Related Bill:  HSB 13

CONTRACT SURETY   

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

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

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

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

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 12 – Sports Wagering.  Adds sports wagering to the existing licensing and bonding requirements.

Status:  1/10/19: (H) to Appropriations & Revenue

HB 90 – Ban the Box - Barriers to Employment for Persons with Past Criminal Records.  Would prohibit employers from considering or requiring disclosure of prior criminal history as part of the initial job application; title the act "Ban the Box - The Criminal Record Employment Discrimination Act".

Status:  1/10/19: (H) to Economic Development & Workforce Investment 

SB 23 – Sports Wagering.  Adds sports wagering to the existing licensing and bonding requirements.

Status:  1/9/19: (S) to Appropriations & Revenue 

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

Status:  2/19/19: (H) to Natural Resources and Energy; posted in committee   

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

COMMERCIAL SURETY 

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

MICHIGAN – MI Legislature | Session Dates:  1/9/19 – 12/31/19

COMMERCIAL SURETY 

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

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

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

COMMERCIAL SURETY

HF 465 – Recreational Marijuana.  Would authorize the sale and use of recreational marijuana.  Cannabis establishments would be required to be licensed and to post a bond, cash, or U.S. Bonds in an amount of at least $10,000.  The commissioner of the Bureau of Cannabis Oversight would determine the bond amount, based on the licensee's financial statement and any other factors the commissioner deems relevant to the public interest.  The bond would be conditioned on compliance with applicable laws and the payment of all taxes, fees, penalties, and other charges when due.  Cannabis testing facilities would be exempt from the bond requirement.

Status:  1/31/19: (H) in Health and Human Services; author added - Lee

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

Status:  1/22/19: (S) in Family Care and Aging; authors added: Hoffman and Nelson

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

MISSISSIPPI – MS Legislature | Session Dates:  1/8/19 – 4/7/19

COMMERCIAL SURETY 

HB 396 – Cemetery Owners and Sellers of Pre-need Contracts.  Would require an owner of a cemetery subject to the state cemetery laws to post a surety bond in an amount not to exceed $500,000.  The bond would be for the benefit of any owner or purchaser, or their family, legal representative or next of kin of any lot, plot, grave, crypt, niche or burial space within the cemetery if the cemetery is insolvent or will be insolvent, no perpetual care trust fund has been established for the cemetery, or the trust fund does not have the required funds.  Also, the bill would require sellers of pre-need contracts that are funded by a trust to post a bond in an amount not to exceed $500,000.  The bond would be for the benefit of the insured contract or the beneficiaries or estate of the insured contract for a financial loss or other damages resulting from the provider's misfeasance, fraud, default, failure or insolvency, or the fraud, deceit, misrepresentation or misappropriation of trust funds or the insolvency of the trust.  Direct actions against the bond would be permitted; provided, however, the surety's liability would be limited to the bond amount.

MISSOURI – MO General Assembly | Session Dates:  1/9/19 – 5/17/19

COMMERCIAL SURETY 

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

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

Related Bills:  HB 478, SB 47 and SB 160

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

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

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

Status:  2/7/19: (H) reported, do pass; referred to Rules - Administrative Oversight   

Related Bill:  SB 115

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

Status:  2/7/19: (H) referred to Financial Institutions  

Related Bill:  SB 173  

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

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

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

Status:  1/23/19: (H) referred to Elementary and Secondary Education 

Related Bills:  HB 34, SB 47 and SB 160

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

Status:  1/9/19: (H) introduced 

Related Bill:  SB 140  

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

Status:  1/23/19: (H) referred to Judiciary

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

Status:  1/31/19: (H) referred to Judiciary

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

Status:  2/6/19: (H) in Special Committee on Career Readiness; public hearing completed  

Related Bill:  SB 251   

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

Status:  1/23/19: (H) read second time  

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

Status:  2/11/19: (S) hearing conducted - Agriculture, Food Production and Outdoor Resources 

Related Bill:  HB 204

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

Status:  1/24/19: (S) second read and referred to General Laws  

Related Bill:  HB 495

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

Status:  2/12/19: (S) Formal Calendar, Senate Bills for Perfection with SCS  

Related Bills:  HB 34, HB 478 and SB 47

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

Status:  1/31/19: (S) second read and referred to Local Government and Elections  

Related Bill:  HB 215

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

Status:  2/7/19: (S) second read and referred to Professional Registration    

Related Bill:  HB 564

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

Status:  2/7/19: (S) second read and referred to Professional Registration  

CONTRACT SURETY 

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

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

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

Status:  1/31/19: (H) referred to Economic Development

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

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

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

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

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

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

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

Status:  2/6/19: (S) hearing conducted in Insurance and Banking  
Related Bill:  HB 490  

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

MONTANA – MT Legislature | Session Dates:  1/7/19 – 5/1/19

COMMERCIAL SURETY 

HB 107 – Mortgage Servicers.  Would revise the bond requirement for mortgage servicers so that the amount of the bond would be calculated on the mortgage servicer's total unpaid principal balance of residential mortgage loans as of December 31, as follows: (i) $75,000 for an unpaid balance that does not exceed $25 million a year; (ii) $150,000 for an unpaid balance of more than $25 million but not exceeding $100 million a year; (iii) $250,000 for an unpaid balance of more than $100 million but not exceeding $500 million a year; or (iv) $350,000 for an unpaid balance of more than $500 million.  Current law requires mortgage servicers to have a $100,000 bond.

Status:  2/6/19: (S) in Business, Labor, and Economic Affairs; hearing completed   

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

Status:  2/12/19: (S) in Natural Resources; scheduled for second reading  

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

Status:  2/14/19: (H) in Business and Labor; hearing scheduled   

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

Status:  2/12/19: (S) scheduled for third reading

SB 126 – Workers' Compensation.  Would exempt public entities that cannot be insolvent from the security requirements for self-insurers for workers' compensation plans.  Surety bonds or other security are accepted to meet the security requirements.  
Status:  2/5/19: (H) referred to Business and Labor; first reading

CONTRACT SURETY

SB 108 – Threshold; Payment and Performance Bonds.  Would increase the state bond threshold from $50,000 to $150,000, and increase the threshold for bid security on these contracts from $25,000 to $150,000.  The bill also would increase other procurement related thresholds to $150,000.  
Status:  1/23/19: (S) in State Administration; public hearing held   

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

NEBRASKA – NE Legislature | Session Dates:  1/9/19 – 5/24/19

COMMERCIAL SURETY

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

Status:  2/11/19: advanced to enrollment and review for engrossment  

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

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

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

Status:  1/24/19: Notice of hearing for 1/31/19

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

Status:  1/22/19: referred to General Affairs

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

Status:  2/8/19: advanced to enrollment and review initial 

CONTRACT SURETY

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

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

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

Status:  1/24/19: referred to Government, Military and Veterans Affairs   

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

Status:  1/30/19: in Transportation and Telecommunications; notice of hearing for 2/11/19    

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

COMMERCIAL SURETY 

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

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

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

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

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

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

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

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

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

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

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

NEW HAMPSHIRE – NH General Court | Session Dates:  1/2/19 – 6/30/19

COMMERCIAL SURETY 

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

Status:  2/6/19: (H) from Executive Departments and Administration: Ought to pass for 2/14/19  

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

Status:  2/4/19: (S) Transportation Committee Report: Ought to pass with amendment

CONTRACT SURETY

HB 654 – Performance Bond.  Would grant discretion to the Housing Finance Authority to require a mortgagor to furnish bonds or other security to secure the performance on contracts awarded in connection with a construction loan from the Authority for housing projects.  Current law provides that bonds or other security are required.
Status:  2/6/19: (H) in Commerce and Consumer Affairs; public hearing scheduled for 2/12/19   

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

NEW JERSEY – NJ Legislature | Session Dates:  1/2/19 – 1/14/20

COMMERCIAL SURETY 

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

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

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

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

Related Bill:  SB 3147   

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

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

Related Bill:  SB 1868

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

Status:  2/7/19: (A) introduced and referred to Financial Institutions and Insurance  

Related Bill:  SB 3417   

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

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

Related Bill:  AB 4959   

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

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

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

SB 3417 – Mortgage Servicers.  Would require mortgage servicers and persons exempt from licensure as a mortgage servicer to post a surety bond for $100,000 per office location.  The surety bond would be conditioned on performing any and all written agreements or commitments with or for the benefit of mortgagors and mortgagees, accounting for all funds received from a mortgagor or mortgagee and conducting the mortgage business in compliance with the applicable law.  The bill would permit direct actions on the bond, but the surety's aggregate liability would be limited to the bond amount.  Mortgage servicers and exempt persons also would have to post a fidelity bond in an amount determined by a formula set forth in the bill based on the amount of residential mortgage loans serviced.  The minimum fidelity bond amount would be $300,000.  The fidelity bond could have a deductible, which could not exceed $100,000 or 5% of the bond amount, whichever is greater.  The fidelity bond would cover losses arising from dishonest and fraudulent acts, embezzlement, misplacement, forgery and similar events committed by the servicer's employees.

Status:  2/7/19: (S) reported from committee, second reading; referred to Budget and Appropriations   

Related Bill:  AB 4997   

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

NEW MEXICO – NM Legislature | Session Dates:  1/15/19 – 3/16/19

COMMERCIAL SURETY 

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

Status:  1/22/19: (S) reported by committee with a Do Pass recommendation  

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

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

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

Status:  1/17/19: (S) referred to Corporations and Transportation and Judiciary

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

Status:  2/11/19: (S) reported by Public Affairs with Do Pass recommendation with amendment(s)

CONTRACT SURETY

HB 286 – P3s.  Would authorize the state, local governments, and state institutions to use P3s for capital projects that cost more than $20 million, or that have a P3 term that is longer than five years.  The P3 agreement would have to include a requirement for the private partner to provide directly, or through the principal contractor, performance and payment bonds in accordance with the requirements of the Little Miller Act for the construction portion of the project.  Alternative forms of security for the non-construction components of the project could be required. 

Status:  1/21/19: (H) referred to Labor, Veterans' and Military Affairs/ Judiciary 

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

NEW YORK – NY State Assembly | Session Dates:  1/9/19 – 6/19/19

COMMERCIAL SURETY 

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

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

Related Bill:  SB 1586

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

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

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

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

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

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

Related Bill:  AB 439

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

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

CONTRACT SURETY

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

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

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

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

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

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

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

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

Related Bill:  SB 766

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

Status:  1/18/19: (A) introduced and referred to Ways and Means  

Related Bill:  SB 1508

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

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

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

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

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

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

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

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

Related Bill:  SB 981

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

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

Related Bill:  AB 1975

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

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

Related Bill:  AB 3558

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

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

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

Status:  1/18/19: (S) introduced and referred to Finance   

Related Bill:  AB 2008

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

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

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

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

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. 

NORTH DAKOTA – ND Legislative Branch | Session Dates:  1/3/19 – 4/26/19

COMMERCIAL SURETY

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

Status:  1/28/19: (H) in Industry, Business and Labor, amendment adopted; re-referred to Appropriations  

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

Status:  1/23/19: (S) received from House  

HB 1443 – Pari-mutuel Wagering.  Would require licensed service providers operating pari-mutuel wagering for a historic horse race to post a $500,000 bond.

Status:  2/4/19: (S) received from House     

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

Status:  1/10/19: (H) received from Senate 

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

Status:  1/15/19: (H) received from Senate

CONTRACT SURETY 

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

Status:  1/17/19: (H) in Political Subdivisions; hearing held   

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. 

OKLAHOMA – OK State Legislature | Session Dates:  2/4/19 – 5/31/19

COMMERCIAL SURETY 

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

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

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

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

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

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

Status:  2/5/19: (S) second reading, referred to Business, Commerce and Tourism then to Appropriations  

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

Status:  2/5/19: (S) second reading, referred to Transportation then to Appropriations  

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

Status:  2/7/19: (S) second reading, referred to Judiciary

SB 1010 – Insurance Professionals and Viatical Settlement Providers and Brokers.  Would amend the producer appointment language to eliminate the phrase "or the first insurance application is submitted," so that to appoint a producer as its agent, the insurer shall file a notice of appointment within 15 days from the date the agency contract is executed.  The bill would also require producers, administrators, adjusters, etc. to report to the Insurance Commissioner any administrative or criminal action taken against them within 30 days.  Failure to comply would result in immediate suspension of a license.  The bill also would clarify that viatical settlement providers and brokers are required to post a $50,000 bond or other security; currently, the law says "in an amount not to exceed" $50,000.
Status:  2/11/19: (S) second reading, referred to Retirement and Insurance  

CONTRACT SURETY

HB 1114 – Retainage.  Would prohibit retainage from being withheld from contractors on public buildings and public works projects if performance and payment bonds are in place.  Under current law, the state bond threshold is $50,000 so that no retainage would be withheld on public contracts exceeding the threshold.  Under existing law, the Department of Transportation and the Oklahoma Turnpike Authority are prohibited from requiring retainage on their contracts.
Status:  2/6/19: (H) Government Efficiency Committee Report: Do pass

Related Bill:  SB 762

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

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

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

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

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

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

Related Bill:  HB 1114

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

OREGON – OR State Legislature | Session Dates:  1/14/19 – 6/30/19

COMMERCIAL SURETY 

HB 2588 – Student Loan Servicers.  Would require student loan servicers to be licensed and post a surety bond or irrevocable letter of credit in an amount that will be determined through regulations.

Status:  1/15/19: (H) in Business and Labor; public hearing and possible work session scheduled for 2/25/19  

Related Bill:  SB 279

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

Status:  1/15/19: (S) referred to Environment and Natural Resources  

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

Status:  1/15/19: (S) referred to Judiciary  

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

Status:  1/17/19: (S) referred to Judiciary

Related Bill:  HB 2588

CONTRACT SURETY

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

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

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

Status:  1/15/19: (H) referred to Business and Labor

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

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

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

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

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

Status:  2/7/19: (S) in Business and General Government; public hearing and possible work session scheduled  

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

PENNSYLVANIA – PA General Assembly | Session Dates:  1/1/19 – 12/31/19

CONTRACT SURETY

HB 163 – Construction Manager; Design-Build; Infrastructure.  Would expand the existing law concerning the use of alternative project delivery methods under the state procurement code to allow the State to use construction managers at-risk, design-bid-build with multiple prime contractors, and design-bid-build with a single prime contractor for public buildings with a project cost exceeding $4,000.  Existing law already permits the use of the design-build method.  

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

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

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

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

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

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

COMMERCIAL SURETY

SB 16 – Wind Energy Facilities - Decommissioning.  Would require a form of financial security for wind turbines to secure the decommissioning of the site.  Surety bonds would be accepted to fulfill this requirement.

Status:  1/23/19: (H) first read and referred to Commerce and Energy 

CONTRACT SURETY

HB 1021 – Bid Bonds.  Provides that bid bonds furnished for public improvement contracts would be destroyed rather than being returned to unsuccessful bidders.

Status:  1/25/19: (S) first read, referred to Commerce and Energy

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

TEXAS – TX Legislature | Session Dates:  1/8/19 – 5/27/19

COMMERCIAL SURETY 

HB 321 – Health Clubs.  Would change health spa to health club and increase the maximum amount of the security required from $50,000 to $75,000.  Under current law, the secretary of state prescribes the amount of security required for an applicant in the amount determined sufficient by the secretary to protect the health club's total membership; $20,000 minimum, $50,000 maximum.

Status:  11/13/18: (H) Filed 

HB 924 – Concrete Batch Plants.  Provides that a commissioners court by order may require the owner of a concrete batch plant operating in the county to file a surety bond in an amount determined by the commissioners court, and conditioned that the owner will pay to the county an amount to repair any damage to a highway caused by the operation of vehicles used in the operation of the plant. 

Status:  1/18/19: (H) Filed

CONTRACT SURETY

HB 589 – Retainage; Release of Liens.  Would repeal the requirement to retain 10% and instead provides that the amount of retainage would be determined by contract and could not exceed 10% of the payment request for private work.  The bill also would increase the total amount of liens used for determining the amount required for release of lien bonds from $40,000 to $60,000.  Currently, the bond must be for double the lien claim, unless the total exceeds $50,000, in which case the bond must be for one and one-half times the lien claim.  The bill would establish an electronic system for filing claims for private construction projects, and revise existing lien claim procedures to incorporate the use of this electronic system.  The bill also would set forth new procedures for filing a notice of commencement, notice of demand, and a notice of furnishing in connection with the establishment of this website.
Status:  1/8/19: (H) introduced  

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

COMMERCIAL SURETY 

HB 52 – Electronic Notaries.  Would allow a notarization to be performed remotely.  Notaries performing remote notarizations would have to post a $5,000 bond in addition to the bond required for all notaries.  The bond would have to be in place for the date that the remote notarization date is performed until the end of the remote notary's commission.  The bond would be conditioned on payment to any person upon the remote notary's misconduct while acting in the scope of their commission.

Status:  2/11/19: (H) received from Senate; signed by Speaker and sent for enrolling   

SB 53 – Guardianships and Conservatorships.  Would revise the existing bond requirement for guardians and conservators to permit the use of an alternative asset-protection agreement in lieu of the bond.  Existing law allows the court to accept a deposit of collateral in lieu of the bond, such as securities or a mortgage of real property.  The law requires the bond to be in an amount equal to the aggregate capital value of the conservatorship estate, plus one year's estimated income, less the value of property deposited under an arrangement requiring a court order for its removal and real property the conservator lacks power to sell or convey without specific court authorization.  

Status:  2/4/19: (S) in Judiciary, Law Enforcement, and Criminal Justice; not considered 

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 2028 – Occupational Regulations.  Would establish a sunrise process for occupational regulations.  Any bill that requires the Department of Professional and Occupational Regulation to establish new regulations or that increases the existing level of regulation for an occupation would be subject to an evaluation.  The Board for Professional and Occupational Regulation would have to prepare an evaluation of the legislation using the criteria set forth in the existing law to determine whether certification, registration, or licensing should be required. 

Status:  1/28/19: (S) received in Senate: constitutional reading dispensed; referred to Rules   

HB 2038 – Service Contract Providers.  Would eliminate the option in existing law for extended service contract providers to post a bond or letter of credit as proof of financial stability.  The bond or letter of credit must be in an amount ranging from $10,000 to $90,000, based on the dollar amount of the provider's unexpired extended service contracts.  The bond or letter of credit is required in addition to the minimum net worth that providers must meet of at least $100 million or obtaining a liability insurance policy.

Status:  2/11/19: (S) reported from Commerce and Labor, do pass  

Related Bill:  SB 1188   

HB 2547 – Electric Utilities.  Would require regulations adopted to implement the provisions in the bill concerning eligible customers who generate electricity to participate in a net metering program to include requirements for minimal capitalization or a bond or other security that is adequate for consumer protection.

Status:  2/11/19: (S) reported from Commerce and Labor, do pass with amendment    

Related Bill:  SB 1769

SB 1091 – Solar Energy Infrastructure - Decommissioning.  As amended, this bill would require an owner or developer of real property that has certified solar energy equipment, facilities, or devices on the site to enter into a written agreement to decommission equipment, facilities, or devices.  A form of financial assurance would be required in an amount not to exceed the total of the projected cost of decommissioning, which includes the net salvage value of such equipment, facilities, or devices, plus a reasonable allowance for estimated administrative costs related to a default of the owner or developer, and an annual inflation factor.  Surety bonds or other security would be accepted to meet this requirement.  As introduced, the bond would have had to be for $10,000 per acre of land for the facility and would have had to secure against damages from the release of materials directly related to solar energy production or transmission facilities and costs for reclamation, decommissioning, and environmental liabilities. 

Status:  2/11/19: (H) passed House with amendment; block vote passage   

SB 1112 – Student Loan Servicers.  Would require education loan servicers to be licensed and to post a surety bond in an amount that the Commissioner of Financial Institutions would determine; $50,000 minimum, $500,000 maximum.  The bond would be conditioned on the licensee performing all written agreements with borrowers or prospective borrowers correctly and accurately accounting for all funds received, and compliance with all applicable laws.  Direct actions against the bond would be permitted, but the surety's aggregate liability would be limited to the bond amount. 

Status:  2/8/19: (H) read first time and referred to Commerce and Labor   

SB 1126 – Casino Gaming Operations.  Would require persons operating a casino gaming operation to obtain a license and provide a surety bond.  The Virginia Lottery Board would determine the bond amount, which would have to be sufficient to cover any indebtedness that the licensee may incur to the state.

Status:  2/12/19: (H) reported from Rules with substitute   

Related Bills:  SB 1503, and SB 1706 

SB 1188 – Service Contract Providers.  Would eliminate the option in existing law for extended service contract providers to post a bond or letter of credit as proof of financial stability.  The bond or letter of credit must be in an amount ranging from $10,000 to $90,000, based on the dollar amount of the provider's unexpired extended service contracts.  The bond or letter of credit is required in addition to the minimum net worth that providers must meet of at least $100 million or obtaining a liability insurance policy.

Status:  1/22/19: (H) read first time and referred to Commerce and Labor 

Related Bill:  HB 2038  

SB 1271 – Blanket Bond - Oil and Gas Wells.  Would revise the amount of the blanket bond that may be furnished for oil and gas wells, which currently must be in an amount ranging from $25,000 to $100,000 based on the number of wells that the permittee operates.  The bill would require a bond ranging from $25,000 to $200,000 and would adjust the number of wells that may be covered by the blanket bond in connection with this increased amount.  For individual wells, the law requires a surety bond or a cash bond for at least $10,000 per well, plus $2,000 per acre of disturbed land. The bill would authorize requiring additional bonding if the well would be drilled in Tidewater Virginia. Status:  2/4/19: (H) read first time and referred to Agriculture, Chesapeake and Natural Resources

SB 1481 – Driver Training Schools.  Would permit the Department of Motor Vehicles to collect on the bond required of driver training schools if the school violates an applicable law or regulation.  Current law requires a $100,000 bond for Class A schools and a $5,000 bond for Class B schools.

Status:  1/25/19: (H) in Transportation; assigned to Transportation subcommittee: Subcommittee #3

SB 1751 – Receiver Court Bond.  Would authorize the court to require a receiver for a unit owners or property owners association to post a bond with or without surety.

Status:  2/6/19: (H) read first time and referred to General Laws   

SB 1769 – Electric Utilities.  Would require regulations adopted to implement the provisions in the bill concerning eligible customers who generate electricity to participate in a net metering program to include requirements for minimal capitalization or a bond or other security that is adequate for consumer protection.

Status:  2/6/19: (H) read first time and referred to Commerce and Labor 

Related Bill:  HB 2547

CONTRACT SURETY

HB 2290 – Bid Bonds; Payment and/or Performance Bonds; Retainage.  Would establish a management agreement for James Madison University (University), which would implement an existing law that permits any institution of public education in Virginia to be granted additional operating authority in information technology, procurement and capital projects.  Under the law, colleges must obtain payment and performance bonds for any construction project in excess of $1 million, and bonding may be required for contracts below this threshold.  Bid, payment, and performance bonds would be required for construction contracts exceeding $1 million and may be required for contracts under the threshold under this bill.  Bid bonds would have to be equal to 5% of the contract price.  The bill provides that performance bonds would have to be equal to the construction contract price, except for transportation related projects, in which case the University could decide the bond amount.  Payment bonds would have to be equal to the construction contract amount in all cases.  The construction contractor would be authorized to require subcontractors to furnish payment bonds equal to the amount of the subcontract.  The bill would allow a certified check or escrow account to be furnished in lieu of the bonds.  The University would have discretion whether to require bid, payment, and performance bonds for contracts for goods and services. The bill would establish a one-year statute of limitations for the University to file claims on the performance bond and would set forth procedures for payment bond claims.  The bill implements the law's requirement setting retainage at not more than 5%.  The bill sets forth procedures for prequalifying contractors.  If the contractor can obtain a bond from a surety that is on the U.S. Department of the Treasury's Circular 570 in an amount required for a contract, this would be sufficient evidence of the contractor's financial ability to perform on the contract.

Status:  2/6/19: (S) reported from Finance 

Related Bill:  SB 1386

SB 1369 – Bond Claims.  Would amend the statute of limitations for actions against the surety bond and create a statute of limitation for construction contracts.  Currently, there is a one-year limit for filing bond claims from either the completion of the contract, including all warranties and guarantees or discovery of the defect or breach of warranty that gave rise to the action, except for the Department of Transportation, which currently has a five-year statute of limitations.  The discovery period would be eliminated, and the statute of limitations would begin from the completion of the work on the project for actions on a bond.  The bill would eliminate the current provisions concerning claims based on the expiration of the warranty or guarantee from the law for bond claims.  For public bodies bringing an action on construction contracts and design-build contracts, excluding the Department of Transportation, the bill would create a five-year statute of limitations following completion.  For latent defects, the action would have to be brought within five years of discovery of a latent defect but, in any event, not more than 10 years from the completion of the work on the project.  The bill provides that there would be a one-year statute of limitations to bring an action on a contract's warranty or guarantee.  Warranty and guarantee claims could not be brought more than one year after the warranty or guaranty expires.

Status:  2/5/19: (S) passed the Senate  

Related Bill:  HB 1667

SB 1386 – Bid Bonds; Payment and/or Performance Bonds; Retainage.  Would establish a management agreement for James Madison University (University), which would implement an existing law that permits any institution of public education in Virginia to be granted additional operating authority in information technology, procurement and capital projects.  Under the law, colleges must obtain payment and performance bonds for any construction project in excess of $1 million, and bonding may be required for contracts below this threshold.  Bid, payment, and performance bonds would be required for construction contracts exceeding $1 million and may be required for contracts under the threshold under this bill.  Bid bonds would have to be equal to 5% of the contract price.  The bill provides that performance bonds would have to be equal to the construction contract price, except for transportation related projects, in which case the University could decide the bond amount.  Payment bonds would have to be equal to the construction contract amount in all cases.  The construction contractor would be authorized to require subcontractors to furnish payment bonds equal to the amount of the subcontract.  The bill would allow a certified check or escrow account to be furnished in lieu of the bonds.  The University would have discretion whether to require bid, payment, and performance bonds for contracts for goods and services. The bill would establish a one-year statute of limitations for the University to file claims on the performance bond and would set forth procedures for payment bond claims.  The bill implements the law's requirement setting retainage at not more than 5%.  The bill sets forth procedures for prequalifying contractors.  If the contractor can obtain a bond from a surety that is on the U.S. Department of the Treasury's Circular 570 in an amount required for a contract, this would be sufficient evidence of the contractor's financial ability to perform on the contract.

Status:  2/6/19: (H) reported from Appropriations  

Related Bill:  HB 2290  

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

WASHINGTON – WA State Legislature | Session Dates:  1/14/19 – 4/28/19

COMMERCIAL SURETY 

HB 1124 – Degree-Granting Educational Institutions.  Would revise existing law concerning the surety bond or other security, and the Student Achievement Council Tuition Recovery Trust Fund, required for degree-granting institutions to provide that students could make claims against the bond and the recovery fund for any damages suffered as a result of program closures and violations of the law governing for-profit degree-granting institutions and private career schools.  The bill would also allow the Student Achievement Council to eliminate the bond requirement for any degree-granting institution if the recovery fund has been met and the Council determines that students would be adequately protected without a surety bond or other security in place.

COMMERCIAL SURETY

HB 2002 – Education Savings Accounts.  Would authorize the state treasurer to adopt regulations and policies for an education savings account program, which would include requirements for education service providers to post a surety bond if they receive $100,000 or more in funds from education savings accounts.

COMMERCIAL SURETY 

HB 30 – Trust Companies.  Would increase the minimum amount of the surety bond or other security required for trust companies from $100,000 to $1 million.  The bond indemnifies the state against any costs incurred if the trust company is put into receivership or liquidation.  In lieu of the bond, the trust company may provide an investment pledge under existing law.

Status:  2/12/19: (S) President signed HEA No. 0014  

HB 74 – Special Purpose Depository Banks.  Requires special purpose depository institutions to post a surety bond or pledge capital to cover the costs that the State Banking Commissioner (Commissioner) is likely to incur in a liquidation or conservatorship of the special purpose depository bank.  The Commissioner would determine the amount required.  The institution also would have to obtain insurance or a bond covering the bank's operational risks, including directors' and officers' liability, errors and omissions liability and information technology infrastructure and activities liability.  These institutions would handle deposits and provide related banking services for corporations using virtual currency and digital assets.

Status:  2/12/19: (S) from Minerals: recommend amend and do pass; placed on General File   

HB 180 – MMA Promoters.  Would revise the license bond requirement for holding a mixed martial arts match to require a bond in an amount not to exceed $10,000 or the total estimated expenses associated with the match, whichever is greater.  The law requires a bond in an amount not to exceed $10,000.  The State Mixed Martial Arts Board determines the bond amount under existing law.

Status:  2/7/19: (S) from Revenue: recommend do pass; placed on General File  

CONTRACT SURETY

HB 65 – Bond Threshold.  Would increase the threshold at which a bond or other security is required for a public works contract with the State or its political subdivisions from $7,500 to $50,000.  Under existing law, a bond is mandatory for such contracts that exceed $150,000.  The provisions are contained in a draft bill that would increase other procurement-related thresholds.

Status:  1/25/19: (S) received for introduction

HB 94 – Indemnity Agreements.  Provides that a provision in a construction contract would be void and unenforceable if it indemnifies an indemnitee from or against liability for damages arising from the negligence or intentional acts or omissions of the indemnitee.  Provisions in a contract that requires a party to provide liability coverage to another party for the other party's negligence or for intentional acts or omissions also would be void and unenforceable.  Nothing in the bill would be construed to restrict a surety's indemnification on a construction contract bond or to modify an insurer's obligation to its insureds.

Status:  1/31/19: (S) received for introduction

HB 108 – Bond Threshold; Payment and/or Performance Bonds.  Would clarify that the Little Miller Act includes the projects of the University of Wyoming, Wyoming community colleges, and public corporations.  Current law appeared to give these entities discretion on which procurement law they follow.  Although the bill appears that it would permit all tiers of subcontractors to bring claims on the general contractor's payment bond, the current law has been interpreted in the courts to allow this already because the law already has a broad application.  The bill does specify that claims for labor and material would have to be filed by the claimant as a claim against the prime contractor's surety bond and would eliminate procedures to withhold the disputed amounts from the contractor until the dispute is settled in court or an agreement is reached among the parties.  The bill also provides that a final payment to the prime contractor would have to be made without regard to any pending claims against the prime contractor's surety bond unless the payor has actual knowledge that the surety bond is deficient to settle known present claims, in which case the disputed amount may be withheld.

Status:  1/30/19: (S) received for introduction   

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