NEWS
CNA Government Relations, with the help of surety industry and producer associations, takes an active role in surety and fidelity bond legislative issues at the federal, state and local level.
Use the drop-down menu below to review recent legislative developments specific to your state.
The mission of our Government Relations Department is to promote and defend our products and business practices at all levels of government.
CNA Government Relations works with lawmakers on legislation that improves the effectiveness of surety bonding and guards against adverse legislative developments. For example, every year 125,000 bills are introduced in state legislatures across the country. CNA's Government Relations Department has the responsibility of identifying those that affect the surety and fidelity industry. Our team of professionals reviews and analyzes legislation and directs lobbying efforts to ensure a positive outcome.
The Government Relations Department also works with local governments on Licence and Permit Bond issues. Many professions are required to post a bond at the local level. Government Relations works to ensure that local communities receive information and support to obtain the kind of public protection afforded by bonds.
Need more specific information? Please contact our Government Relations Department at 800-CNA-2000 (800-262-2000).
COMMERCIAL SURETY
NEW LAW: HB 222 – Title Service Providers (Motor Vehicles). Would require title service providers acting on behalf of a motor vehicle dealer, in connection with the dealer's duties as an agent of the Department of Revenue, to post a $25,000 surety bond to secure the faithful performance of their duties.
Status: 5/23/19: signed by the Governor; Act No. 2019-238; effective 10/1/19
NEW LAW: HB 250 – Receivers or Custodians. Provides that a receiver or custodian appointed for a corporation could be required to post a bond with or without sureties. The court would determine the bond amount.
Status: 5/1/19: signed by the Governor; Act No. 2019-94; effective 1/1/20
Related Bill: SB 174
NEW LAW: HB 361 – Fantasy Sports Contests. Would require fantasy sports contest operators to register and either segregate the fantasy sports contest players' funds from its operational funds or maintain a reserve equal to or in excess of the amount of player funds on deposit. Surety bonds or other security would be accepted to meet the reserve requirement.
Status: 6/5/19: signed by the Governor; Act No. 2019-343; effective immediately
NEW LAW: HB 393 – Motor Vehicle Dealers. Would change the required amount of the license bond for new motor vehicle dealers, used motor vehicle dealers, motor vehicle rebuilders, and motor vehicle wholesalers to $50,000 or another amount that the Department of Revenue requires. Current law provides for a $25,000 bond. The bill provides that the bond would secure the payment of the dealer's tax liability and any penalties imposed on the dealer. The bill also would subject a wholesale motor vehicle auction dealer to the bond requirements.
Status: 5/23/19: signed by the Governor; Act No. 2019-244; effective 10/1/20
NEW LAW: HB 394 – Abandoned Motor Vehicles. Would require a person purchasing an abandoned motor vehicle from an entity that has not posted a bond as an agent of the Department of Revenue to meet the existing law's bond requirement to obtain a certificate of title.
Status: 5/23/19: signed by the Governor; Act No. 2019-245; effective 1/1/20
HB 495 – Auctioneers. Would authorize the State Board of Auctioneers to grant a single auction license once per calendar year to any nonresident individual who is licensed in good standing as an auctioneer, or to an auction company in another state. The applicant would be required to post a $10,000 bond or other security, conditioned on compliance with the applicable laws and regulations.
Status: 5/29/19: (S) read second time and placed on calendar. Pending third reading on day 27 Favorable from Agriculture, Conservation and Forestry.
HB 617 – Promoters. Would require promoters of bare-knuckle boxing events to meet the existing law's licensing requirement for sporting event promoters, which requires promoters to post a performance bond in an amount to be determined by the Athletic Commission.
Status: 5/22/19: (H) read second time and placed on the calendar. Pending third reading on day 24 Favorable from Boards, Agencies and Commissions
Related Bill: SB 396
NEW LAW: SB 76 – Medicaid Estate Recovery Program. Provides that a Medicaid agency may petition the court to open the probate estate of a Medicaid recipient by filing a petition to appoint a third party administrator. The administrator would be required to procure a bond in accordance with Article 4, Chapter 2, of Title 43 of the Code of Alabama 1975.
Status: Enacted; Chapter 489; effective 10/1/19
SB 152 – Certificate of Title - Vessels. Provides that persons seeking a new certificate of title for vessel without providing the existing title for a transfer of ownership could be required to post a bond for an amount not more than twice the value of the vessel. The bond would indemnify any owner, purchaser, or other claimant for any expense, loss, delay, or damage, including reasonable attorney's fees and costs, but not including incidental or consequential damages, resulting from creation or amendment of the certificate.
Status: 4/3/19: (S) Motion to Carry Over to the Call of the Chair adopted. Further consideration.
SB 174 – Receivers or Custodians. Provides that a receiver or custodian appointed for a corporation could be required to post a bond with or without sureties. The court would determine the bond amount.
Status: 4/18/19: (S) from Fiscal Responsibility and Economic Development: Reported favorably.
Related Bill: HB 250
SB 264 – Wireless Facilities. Would allow the State and local governments to issue permits for use of the right-of-way for installing small wireless facilities. The State and local governments could impose reasonable and nondiscriminatory requirements for bonds or other security to secure the removal of abandoned or unused antenna facilities, or damage to the right-of-way or the authority's property caused by the permittee.
Status: 5/9/19: (S) read second time and placed on calendar with 1 substitute offered by Transportation and Energy
SB 389 – Auctioneers. Would authorize the State Board of Auctioneers to grant a single auction license once per calendar year to any nonresident individual who is licensed in good standing as an auctioneer, or to an auction company in another state. The applicant would be required to post a $10,000 bond or other security, conditioned on compliance with the applicable laws and regulations.
Status: 5/14/19: (S) read second time and placed on calendar, 1 amendment; pending third reading on day 20, favorable from Government Affairs with 1 amendment
Related Bill: HB 495
NEW LAW: SB 396 – Promoters. Would require promoters of bare-knuckle boxing events to meet the existing law's licensing requirement for sporting event promoters, which requires promoters to post a performance bond in an amount to be determined by the Athletic Commission.
Status: 6/9/19: signed by the Governor; Chapter 491; effective 10/1/19
Related Bill: HB 617
CONTRACT SURETY
SB 23 – Performance Bond. Would repeal the provisions for a municipal development law, which includes a provision that allows municipalities to require a developer to furnish a performance and maintenance bond. With the elimination of this law, the bond requirement would be eliminated as well.
Status: 4/23/19: (H) read first time and referred to County and Municipal Government
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 146 – Motor Vehicle Dealers. Would increase the bond amount from $50,000 to $250,000.
Status: 5/6/19: (H) sponsor substitute introduced; read first time, referred to Judiciary
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: 5/23/19: (S) transmitted to the Governor
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 2229 – Cable Licensing and Video Service Providers. Would require video service providers to comply with all local laws concerning the use and occupation of a highway, including the performance bond requirements, in connection with entering into a video service license agreement.
Status: 4/11/19: signed by the Governor; Chapter 76; effective 90 days after adjournment; operative 1/1/20
NEW LAW: HB 2463 – Occupational Regulations. Would require notice to be given to any persons required to have a license that they have the right to petition for the repeal or modification of an occupational regulation or bring an action in court to challenge the regulation if the person believes the regulation is not necessary to fulfill a public health, safety, or welfare concern.
Status: 3/22/19: signed by the Governor; Chapter 34; effective 8/27/19
NEW LAW: SB 1216 – Receivers. Would require receivers for commercial real estate to post a surety bond or other security to secure the faithful discharge of their duties in an amount to be specified by the court. The court would have to approve the sureties on the bond. The bill would adopt the Uniform Commercial Real Estate Receivership Act.
Status: 6/6/19: signed by the Governor; Chapter 278; effective 8/27/19
CONTRACT SURETY
NEW LAW: SB 1271 – Indemnity Agreements. Would prohibit provisions in private construction contracts for dwellings that would indemnify against liability for losses or damages resulting from the negligence of the contractor or the contractor's indemnitees, employees, subcontractors, consultants or agents. A surety's agreements for indemnification of a payment bond or a performance bond by its principal or indemnitors would be exempted from this provision.
Status: 4/10/19: signed by the Governor; Chapter 60
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 1301 – Occupational Licensing. Would create a new process for persons to obtain expedited temporary licenses if he or she holds an occupational license in good standing from another state or U.S. territory or district that is substantially similar. Occupational licensing entities in Arkansas would have to implement the least restrictive requirements to grant a reciprocity license endorsement. If the person's state does not require a license, the occupational licensing entity would have to adopt regulations that are the least restrictive to permit sufficiently competent individuals to obtain an Arkansas license. The occupational licensing entity would be allowed to require the individual applying for occupational licensure to meet any bonding, financial statement, or insurance requirements that are applicable to all applicants. The bill's provisions would not apply to reciprocity or licensing by endorsement provisions that already are in existing law for several professions. Occupational licensing entities would be permitted to enter into agreements with occupational licensing entities in other states to assure that there are comparable nonresident licensing opportunities.
Status: 3/12/19: signed by the Governor; Act No. 426
NEW LAW: HB 1527 – Occupational Licensing. Provides that is the legislature's intent to determine and implement the least restrictive form of occupational authorization to protect consumers from significant and substantiated harms to public health and safety. The bill would establish a process for the Legislative Council to review occupational regulations on an annual basis to determine if the regulations are consistent with this intent. The Legislative Counsel would have to analyze whether consumers are sufficiently protected by competition, public knowledge of the reputations of occupational practitioners, private ratings and reviews, private certification, voluntary bonding, and voluntary insurance. If the Legislative Council finds substantiated evidence of significant harm arising from failure of an occupational licensee to complete a contract fully or comply with standards, the Legislative Council may recommend legislation requiring the occupational licensee to be bonded. The Legislative Council would have to recommend to the legislature whether to repeal an occupational regulation, revise the regulation to be less restrictive, revise the qualifications for the occupation, or revise the scope of practice of an occupation or profession. The bill would impose reporting requirements on occupational entities concerning their regulations.
Status: 3/29/19: (H) Notification that bill is now Act 600; effective
NEW LAW: HB 1763 – Public Officials. This bill is a state government reorganization measure. The bill would require all cabinet-level department secretaries to post a $10,000 surety bond to secure the faithful performance of their duties. The bill would consolidate several agencies to be under the supervision of these secretaries instead of the officials currently leading these agencies. In connection with these changes, some public official bonds would be eliminated. The bill would eliminate the $5,000 bond requirement for the Director of the State Plant Board, the $10,000 bond requirement for the Executive Director of the Arkansas Natural Resources Commission, the $25,000 bond requirement for the State Forester, the $10,000 bond requirement for the Director of the Department of Parks and Tourism, the bond required for the State Forester's assistants who disburse funds, the bond required for the Secretary-treasurer of the Veterinary Medical Examining Board, the bond requirement for employees of the Arkansas Motor Vehicle Commission, and the fidelity bond required for the employees of the Bank Commissioner.
Status: 4/11/19: approved by the Governor; Act No. 910; effective immediately
NEW LAW: HB 1765 – Uniform Directed Trust Act. 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. The existing law requires a bond under the Uniform Trust Code's model in which the trustee must post a bond only if the court requires one or it is required by the terms of the trust and the court has not dispensed with the requirement.
Status: 4/15/19: approved by the Governor; Act No. 1021; effective 1/1/20
NEW LAW: HB 1874 – Wireless Facilities. Would authorize local governments to issue permits to wireless service providers to use the right-of-way for installing small wireless facilities. Local governments could adopt bonding requirements for small wireless facilities if the local government imposes similar requirements on other right-of-way users. The bond could not be in amount exceeding $1,000 per facility. The bond amount could not exceed $10,000 for providers with multiple facilities in a single jurisdiction. The bond would secure the removal of an abandoned or improperly maintained facility and the recoupment of rates or fees that a provider has not paid in over 12 months, so long as the provider has received reasonable notice of any of the non-compliance and an opportunity to cure.
Status: 4/8/19: approved by the Governor; Act No. 797
Related Bill: SB 602
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
NEW LAW: SB 342 – Contractors. Would allow contractors to post a surety bond in lieu of submitting financial statements that are required under existing law. The bond would have to be in an amount equal to 10 times the amount of the required minimum net worth for the contractor's registration or license classification. Existing law, however, does not provide for a net worth requirement. The surety providing the bond would have to be licensed in the state and be listed on the U.S. Treasury Department's Circular 570. The surety also would have to have an "A" rating from A.M. Best and Company, Inc. The state would have priority over all other claims to recover against the bond. The bond would have to be for the benefit of persons suffering damages due to the contractor's act or omission that results in a breach of the contract or an unlawful act or omission in the performance of the contractor's services. Existing law already requires a $10,000 license bond that does not include these requirements for the surety.
Status: 4/10/19: (S) Notification that SB 342 is now Act 805. Effective 7/1/20
NEW LAW: SB 602 – Wireless Facilities. Would authorize local governments to issue permits to wireless service providers to use the right-of-way for installing small wireless facilities. Local governments could adopt bonding requirements for small wireless facilities if the local government imposes similar requirements on other right-of-way users. The bond could not be in amount exceeding $1,000 per facility. The bond amount could not exceed $10,000 for providers with multiple facilities in a single jurisdiction. The bond would secure the removal of an abandoned or improperly maintained facility and the recoupment of rates or fees that a provider has not paid in over 12 months, so long as the provider has received reasonable notice of any of the non-compliance and an opportunity to cure.
Status: 4/15/19: approved by the Governor; Act No. 999; effective 9/1/19
Related Bill: HB 1874
CONTRACT SURETY
NEW LAW: HB 1693 – Construction Manager. Would revise the limitations on the use of the construction manager-general contractor project delivery method in an existing pilot program by increasing the number of projects that can use this method from three to five. The bill also would increase the dollar limit for the sum of all projects from $200 million to $300 million. The bill also provides that no project could exceed $100 million to use this project delivery method, eliminating a restriction that one of the projects cannot exceed $70 million. The bill also would delete the procedures for project selection from the law.
Status: 4/15/19: approved by the Governor; Act 1019
NEW LAW: SB 150 – P3s. Would authorize state and local government entities to enter into a P3 with private providers for voice, data, broadband, video, or wireless telecommunications services to the public. The bill provides that the government entity could, either on its own or in partnership with a private entity, apply for funding through grants or loans for the construction, acquisition, or leasing of facilities, land, or buildings used to deploy broadband service in unserved areas and provide, directly or indirectly, voice, data, broadband, video, or wireless telecommunications services. The bill does not specify any procurement requirements.
Status: 2/26/19: approved by the Governor; Act 198; effective upon passage
NEW LAW: SB 679 – Energy Savings; Performance Bonds. Would eliminate the requirements for furnishing a bond, cash, or letter of credit for energy efficiency contracts. Current law provides that the bond must be a multiyear bond that secures the aggregate amount of efficiency savings guaranteed by the qualified efficiency engineering company. The surety bond must remain in force throughout the term of any revenue bonds issued under the law to finance any costs and expenses for the project. The bill also would eliminate the requirement for the engineer to furnish a payment and performance bond to secure the faithful performance of the installation and construction required under the qualified efficiency contract.
Status: 4/18/19: approved by the Governor; Act 1090
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 193 – Occupational Regulations. Would require the Department of Consumer Affairs in the Business, Consumer Services, and Housing Agency (Department) to conduct a comprehensive review of all occupational licensing requirements and identify unnecessary licensing requirements. The Department would have to report on its progress to the legislature every two years. Each board within the Department also would have to submit an assessment on their progress in implementing policies to facilitate licensure portability for active duty service members, veterans, and military spouses that includes specified information. The Department would have to apply for federal funds that have been made available specifically for the purpose of reviewing, updating, and eliminating overly burdensome licensing requirements.
Status: 4/23/10: (A) in Business and Professions. Hearing cancelled at the request of author.
AB 1057 – Oil and Gas Wells. Would double the amount of the bonds required under existing law for operators of oil and gas wells. For individual wells, the bill would increase the bond required for a well that is less than 10,000 feet deep from $25,000 to $50,000, and would increase the amount required for well that is more than 10,000 feet deep from $40,000 to $80,000. Under existing law, a blanket bond may be posted if the operator has 20 or more wells. The bond must be in an amount ranging from $200,000 to $3 million based on the number of wells that the operator has in the state. The bill would increase the blanket bond so that it would have to be in an amount ranging from $400,000 to $6 million based on the number of wells. Last year, California enacted a law requiring the requires the State Oil and Gas Supervisor to evaluate and estimate the costs for decommissioning offshore oil and gas wells and develop a schedule to increase the bond amounts or other financial assurance that the operator provides to secure decommissioning costs because the state had experienced two oil company bankruptcies.
Status: 6/6/19: (S) referred to Natural Resources and Water
AB 1342 – Private Postsecondary Educational Institutions. Would require a nonprofit corporation that operates or controls a private postsecondary educational institution to obtain the Attorney General's consent before entering into certain agreements or transactions. The Attorney General's consent to an agreement or transaction could include certain conditions, including a requirement for the corporation post a surety bond to provide recovery to students who were enrolled at the private postsecondary educational institution upon the institution's subsequent closure.
Status: 5/29/19: (S) referred to committees on Education and Judiciary.
AB 1489 – Virtual Currency Businesses. Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Department of Business Oversight would determine based on the nature and the extent of the licensee's virtual currency business model. The bond or other security would secure the licensee's compliance with the applicable law. A surety bond only could be required if it is generally available in the state for a commercially reasonable cost. The Department could require the bond to be in place for a period of time that it will determine after the licensee ceases to do business in the state.
Status: 3/14/19: (A) referred to Banking and Finance, and Privacy and Consumer Protection
AB 1627 – Nonparticipating Tobacco Manufacturers. Would establish additional factors with regard to fee payments, reporting compliance, and sales practices for determining when a tobacco manufacturer poses an elevated risk and would be subject to the bond requirement to be listed on the state's directory of nonparticipating tobacco manufacturers.
Status: 3/25/19: (A) read first time and referred to Government Organization and Judiciary
AB 1678 – Indoor-Grown Cannabis Commission - Fidelity Bond. Would create the Indoor-Grown Cannabis Commission and require its agents who collect assessments for the Commission to post a minimum $25,000 fidelity bond. Cannabis cultivators who fail to pay the assessments could be required to post a surety bond to secure their payment.
Status: 4/8/19: (A) in Agriculture Committee; first hearing set and then cancelled at the request of the author.
SB 229 – Court Bond - Failure to Pay Minimum Wage. Would revise the bond required for cases involving a failure to pay the minimum wage so that it would have equal to the total amount of penalties, lost wages and interest thereon, liquidated damages, and any other monetary relief that are due. Under current law, the bond must be equal to any minimum wages liquidated damages, and overtime compensation that are due an in connection with court proceedings to contest the penalties.
Status: 6/12/19: (A) from Labor and Employment: Do pass and re-refer to Judiciary. Re-referred to Judiciary.
SB 410 – Hunting and Fishing Guides. Would increase the amount of the bond required for persons licensed as a guide through the Department of Fish and Wildlife from $1,000 to $2,500.
Status: 2/28/19: (S) referred to Natural Resources and Water
SB 472 – Fidelity. Would require an earned income access service provider to furnish a minimum $250,000 fidelity bond or other security. The provider also would have to meet a net worth requirement and obtain errors and omissions insurance. These providers are businesses that deliver earned, but unpaid, income to a consumer in California.
Status: 5/30/19: (A) referred to committees on Business and Finance and Judiciary
SB 610 – Contractors. As amended, this bill would require the Contractor's State License Board to conduct a study on whether the current bond amount of $15,000 is sufficient or if it should be increased. A report would be due by 1/1/24.
Status: 6/3/19: (A) referred to Business and Professions
CONTRACT SURETY
AB 356 – Payment and/or Performance Bonds; Retainage. Would authorize the Los Angeles Community College District to use the best value contracting method for construction projects exceeding $1 million in a pilot program. If the district requires the contractor to furnish a performance and payment bond, retainage could not exceed 5%. The contractor would be allowed to withhold more retainage from its subcontractor than the district withholds from the contractor if the subcontractor is unable or refuses to furnish any bonds that the contractor requires. The contractor's ability to obtain payment bonds would have to be considered when evaluating his or her financial condition.
Status: 6/12/19: (S) from Education: Do pass
AB 1074 – Payment and/or Performance Bonds. Would create the Accessory Dwelling Unit Construction Program. Under this program, the Department of Housing and Community Development would be authorized to enter into a contract with a homeowner to provide financing to pay for the eligible costs that the homeowner incurs when constructing an accessory dwelling unit on the homeowner's property. The bill provides that the Department could require the contractor to furnish a bond or other security in an amount that the Department would determine. The bond would secure compliance with the terms of the contract and the payment to persons furnishing material or labor on the construction of the accessory dwelling unit.
Status: 4/10/19: (A) in Housing and Community Development and Local Government: Hearing postponed by Committee
AB 1386 – Performance Bond. Would eliminate procedures in existing law that allows local agencies to require the payment of certain fees in advance for local residential projects. The law authorizes requiring a performance bond or letter of credit in connection with these requirements to secure the payment of the fees. With the elimination of these procedures, the bond or letter of credit would be eliminated as well.
Status: 3/26/19: (A) re-referred to Local Government
AB 1513 – Payment Bond. Provides that the bond requirements for local public works projects would not apply to a public utility under the jurisdiction of the Public Utilities Commission. Under current law, a payment bond is required if the contract exceeds $25,000. The law for public utilities projects currently references an outdated statute concerning bonding requirements and the bill would update the reference to ensure that the projects are exempt from the bond requirements.
Status: 5/22/19: (S) referred to Energy, Utilities and Communications
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 1043 – Life Care Facilities. Would revise the existing law concerning the kinds of security that may be posted to meet the reserve requirements for life care facilities to allow surety bonds. Existing law permits several forms of security to be posted. The reserves must cover the obligations of the provider under the life care agreements.
Status: 3/28/19: signed by the Governor; Chapter 66; effective 8/2/19
NEW LAW: HB 1295 – Public Officials. Would eliminate the $10,000 bond requirement for county treasurers who act as the public trustee in counties of the second class.
Status: 5/29/19: signed by the Governor; effective 8/2/19
NEW LAW: SB 5 – Importation of Prescription Drugs from Canada. As amended, this bill allows for the importation of prescription drugs from Canada under a program established by the bill. Vendors providing services under the program under a contract with the State Department will be required to post a minimum $25,000 bond or other security. The bond secures the payment of any administrative penalties for a failure to pay any penalty assessments under the program, compliance with any contractual and statutory obligations, and participation in any civil or criminal legal actions. Direct actions against the bond are permitted.
Status: 5/16/19: signed by the Governor; Chapter 184; effective 8/2/19
NEW LAW: 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: 5/14/19: signed by the Governor; effective 8/2/19
NEW LAW: SB 105 – Trusts. Would adopt the Uniform Directed Trust Act, which would require the trust director for a directed trust to comply with the existing bond requirement for trustees. Existing law requires a bond under the Uniform Trust Code's model in which the trustee must post a bond only if the court required one or it is required by the terms of the trust and the court has not dispensed with the requirement.
Status: 3/28/19: signed by the Governor; Chapter 41; effective 8/2/19
NEW LAW: SB 249 – Business Disposal License (Sale of Used Motor Vehicles). Would create a business disposal license for businesses selling their used motor vehicles, and subject the licensee to the existing requirement for motor vehicle dealers to post a $50,000 bond or other security. A business would qualify for a license if the sale of the vehicles did not exceed 20% of the business's gross revenue and the vehicles meet the criteria set forth in the bill.
Status: 5/28/19: signed by the Governor; Chapter 309; effective 8/2/19
CONTRACT SURETY
NEW LAW: SB 138 – P3s; Payment and/or Performance Bonds. Would require the Department of Personnel (Department) to conduct a disparity study on the state's procurement process to determine whether any disparities exist between the participation of historically underutilized businesses and other businesses and to make recommendations to address any discrepancies identified by the study. The study would have to cover all of the state's contracts entered into from the 2014‑2015 to the 2017‑2018 state fiscal years and includes construction contracts. The bill sets forth the required types of analyses that must be conducted in the study. Any conclusion that discrimination‑related disparity exists between the availability and utilization of historically underutilized businesses would have to be supported by statistical evidence and could be supplemented or supported by anecdotal evidence. The executive director of the Department would have to develop a method to track the contracts entered into by all principal departments of the executive branch of state government, institutions of higher education, and the Colorado Commission on Higher Education that are awarded during any calendar year to a historically underutilized business. The information would have to be posted to the Department's website.
Status: 4/16/19: signed by the Governor; Chapter 117; effective 8/2/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 7104 – Uniform Trust Code. Would adopt the Uniform Trust Code. Under current law, the court must require a trustee to post a bond, unless it is otherwise specified in the will. The court may require a trustee to post a bond if it is not required in the will upon application from an interested person. The bill provides that the trustee only would have to post a bond if the court determines it is needed or if it is required in the terms of the trust and the court has not dispensed with the requirement. The court would determine the bond amount, its liabilities and whether sureties are required.
Status: 6/5/19: on Consent Calendar / in Concurrence
HB 7271 – Receiverships. Would require receivers for commercial real estate to post a surety bond or other security to secure the faithful discharge of their duties in an amount to be specified by the court. The court would have to approve the sureties on the bond. The bill would adopt the Uniform Commercial Real Estate Receivership Act.
Status: 4/25/19: (S) favorable report, tabled for the calendar. Senate Calendar No. 418
NEW LAW: SB 1 – FML Insurance Program - Surety and Fidelity Bonds. As amended, this bill creates a paid family and medical leave insurance program. Employers that elect to meet their obligations for this program through a self-insured private plan would be required to post a surety bond in an amount that the Insurance Department would determine. The Paid Family and Medical Leave Insurance Authority's board of director's officers also would have to post a $50,000 surety bond, a blanket bond covering all officers, board members, and employees, or obtain an equivalent insurance product if they are authorized to handle funds or sign checks for the program. The bond would secure the faithful performance of their duties of office.
Status: 6/11/19: Enrolled. Public Act No. 19-25; effective from passage
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: 6/5/19: House passed. In Concurrence.
SB 881 – Self-Insurers - FMLA. Would establish a paid family and medical leave program for employers. Employers could apply for approval to meet their obligations under this program through a private plan. If the employer's private plan is in the form of self-insurance, the employer would have to post a surety bond in an amount that the Labor Department would determine.
Status: 4/8/19: (LCO) reissued by LCO with File No. 525
CONTRACT SURETY
HB 7280 – Infrastructure; P3s. Would create the Connecticut Transportation Finance Authority for transportation infrastructure projects. The bill would authorize the Authority to pursue P3s for the design, development, operation or maintenance of transportation systems, transit-oriented development and related infrastructure. The bill does not specify procurement requirements for P3s. The bill also would allow the Commissioner of Transportation to establish electronic tolling systems on state highways. The bill would create a Connecticut Transportation Infrastructure Bank Fund.
Status: 4/8/19: Reported out of LCO: Favorable report, tabled for the House calendar. House Calendar Number 317. LCO File Number 490.
SB 878 – P3s; Payment and/or Performance Bonds. Would expand the existing P3 law to authorize the use of this project delivery method permanently for an unlimited number of projects, instead of operating as a pilot program for five projects. Under existing law, performance and payment bonds or other security is required as a condition of the P3 agreement. The bill also would revise the kinds of projects eligible to be conducted as a P3. Currently, any public building or transportation project that generates revenue can be conducted as a P3. The bill would allow P3s to be used for any kind of infrastructure project.
Status: 4/17/19: Reported out of LCO: Favorable report, tabled for the Senate calendar. Senate Calendar Number 333. LCO File Number 722.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 86 – Motor Fuels (Jet Fuel). Would require jet fuel suppliers to be licensed and post a surety bond ranging from $5,000 to $200,000. The bond would be conditioned on filing true reports with the DOT, paying the new jet fuel tax established in the bill and all associated penalties and interest, and complying with the applicable law.
Status: 4/9/19: (H) Amendment HA 1 introduced and placed with bill
SS 1 – Contractors. Would require contractors to register with the Department of Labor. The Secretary of Labor would be authorized to require contractors that violate the registration requirements of the prevailing wage law to post a surety bond. The Secretary would determine the amount of the bond, which would have to be sufficient to protect the contractor's workers; $10,000 per worker maximum.
Status: 6/5/19: (H) assigned to Labor
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
B23-0170 – Guardianships of Minors. Would rewrite the existing law for guardians and trustees for infants to apply the law to all minors. The bill also would grant the court discretion to require a guardian or trustee to post a bond. Current law requires a guardian to post a bond unless the will waives the bond requirement. The law does not specify a bond requirement for a trustee. The bill would set forth conditions for the court to consider when determining whether to require a bond for guardians and trustees.
Status: 3/8/19: in Council Committee on Judiciary and Public Safety. Notice of intent to act published in the DC Register
B23-0185 – Financial Services Providers. Would require currency exchange services providers to be licensed and post a bond or other security in an amount that would be determined through regulations for each location where the licensee will do business. The bill provides that direct actions against the bond would be permitted. The bill also would require retail sellers, sales finance companies, collection agencies, and third-party loan servicers to be licensed and post a bond in an amount determined through regulations for each location where the licensee will do business. The bond would be conditioned on faithful performance of the licensee's obligations in compliance with the law and regulations. The surety's aggregate liability would be limited to the bond amount.
Status: 3/19/19: referred to Committee on Business and Economic Development
NEW LAW: B23-0221 – Sports Wagering. Would require sports wagering operators to be licensed and post a bond in an amount that the Office of Lottery and Gaming would determine. The bond indemnifies the District against any actions, claims, and demands that may be incurred by issuing the license.
Status: 4/15/19: signed by Mayor; expires 7/13/19. Act No. 43 (Emergency Resolution)
CONTRACT SURETY
LB 119 (B23-0119) – Bad Faith. Would give insurance claimants a cause of action for bad faith in claims handling. The bill would apply to any kind of insurance policy or insurance contract. Employee dishonesty coverage is among the list of policies specifically listed. The bill also applies to any other policies known or considered to be policies of insurance. Insureds are given a private right of action if the insurer does not pay them within 30 days of the receipt of sufficient documentation of the loss where such refusal to pay is wrong, mistaken, in error, or unreasonable, regardless of the insurer's intent. The court can award interest at 7% from the date that the claim was first made, economic and noneconomic damages proximately caused ad the claimant's attorney and expert fees and costs. In cases where the insurance claim amount due is reasonable, the court can triple the amount due.
Status: 2/15/19: in Council Committee on Business and Economic Development; notice of intent to act published in the DC Register
LB 174 (B23-0174) – Bond Guarantee Program; DBE; Small Business. Would create a permanent bonding education program patterned after SFAA's Model Contractor Development Program (MCDP®). The Department of Small and Local Business Development (Department) would be charged to identify and recruit contractors that are eligible for the program, and to coordinate with surety associations to identify professionals from the surety, construction, legal, and financial sectors to organize bonding initiative workshops and to serve as a bond readiness team. The Department would have to work with the surety industry to coordinate on the intake and assessment for bonding and assembling company profiles and bonding packages, as well as developing key performance indicators, objectives, and workload measures to monitor the Program's progress and success. The Department would have to identify and develop a plan to address factors that may prevent a participant in the program from obtaining a bond. The Department plans to develop and maintain a network for the eligible participants and the surety, banking, and financial industries through sponsored meetings and counseling services. The bill also would establish financial qualifications for the contractor to be eligible to participate in this program.
Status: 3/15/19: in Council Committee on Business and Economic Development; Notice of Intent to Act published in the DC Register
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
Legislative developments significant to the surety bonding industry will be posted as soon as they become available. Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 19 – Importation of Prescription Drugs from Canada. Would allow Canadian suppliers that are a manufacturer, wholesale distributor, or pharmacy permitted under Canadian law to manufacture, distribute, or dispense prescription drugs to export them to Florida under the new Canadian Prescription Drug Importation Program. The bill would require vendors that the Agency for Health Care Administration hires to manage services under this program to post a surety bond to mitigate the financial consequences of the potential acts of malfeasance or misfeasance or fraudulent or dishonest acts committed by the vendor, any of its employees, or its subcontractors. The bill also would specify that an international prescription drug wholesale distributor is subject to the permit requirements for wholesale prescription drug distributors. A surety bond or other security or evidence of a bond posted in any other state in the amount of $100,000 is required to obtain the permit. If the distributor's annual gross receipts in the previous tax year are $10 million or less, the bond must be for $25,000.
Status: 6/11/19: signed by the Governor; Chapter 99; effective 7/1/19
NEW LAW: 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: 6/7/19: signed by the Governor; Chapter 71; effective 1/1/20
NEW LAW: 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: 6/7/19: signed by the Governor; Chapter 73; effective 1/1/20
NEW LAW: 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: 6/7/19: signed by the Governor; Chapter 76; effective 7/1/23
NEW LAW: HB 1009 – Receivership. Would require receivers and custodians appointed for a corporation to post a bond in an amount that the court would determine in connection with a shareholder action to place the corporation into receivership or have a custodian appointed.
Status: 6/7/19: signed by the Governor; Chapter 90; effective 1/1/20
SB 1000 – Wireless Facilities. Provides that counties and municipalities could require a communication services provider seeking a permit for using the right-of-way for a small wireless facility to provide a construction bond to secure restoration of the post-construction rights-of-way to their pre-construction condition. The bill would eliminate the authority for counties and municipalities to adopt ordinances for furnishing performance bonds. The construction bond could not be in place for more than one year after the construction is completed. The bill provides that a letter of credit would be accepted in lieu of the bond.
Status: 6/14/19: signed by Officer and presented to the Governor
CONTRACT SURETY
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: 5/3/19: (H) ordered engrossed, then enrolled; message sent to Senate
NEW LAW: HB 1247 – Payment Bonds. Provides that the law concerning the payment of attorneys' fees in suit against a surety on a performance or payment bond would apply to a contractor's suit. Current law provides that the attorneys' fees requirements apply to suits against sureties that are brought by owners, subcontractors, laborers, and materialmen. The bill would revise the existing law concerning conditional payment bonds furnished for private work to allow a contractor to record a notice identifying a project bond as a conditional payment bond before the project commences in order to make the duty of a surety to pay lienors coextensive with the contractor's duty to pay. A failure to list or record a bond as a conditional payment bond would not convert the bond into a common law bond or a payment bond furnished under the existing law for private work. The bill also would revise the notice requirements for payment bond claimants on public works projects to set forth the required contents of a notice of nonpayment. The bill also would establish penalties for fraudulent notices of nonpayment.
Status: 6/7/19: signed by the Governor; Chapter 94; effective 10/1/19
NEW LAW: SB 7068 – P3s. Would create the Multi-use Corridors of Regional Economic Significance Program for the Department of Transportation for the construction of regional corridors to accommodate multiple modes of transportation and multiple types of infrastructure. The bill provides that P3s could be used for these projects. Under the existing P3 law for the DOT, surety bonds or other security are required. The DOT determines the forms and amounts of security required for P3s. Projects included in this program are the Southwest-Central Florida Connector, the Suncoast Connector, and the Northern Turnpike Connector.
Status: 5/17/19: approved by the Governor; Chapter 2019-43; effective 7/1/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 70 – Guardians and Conservators. Specifies that the costs, compensation, fees, and expenses that a court awards in a case concerning a minor or a ward could be paid from the surety on the guardian or conservator's bond if he or she admits to a violation of any obligation in his or her representative capacity under the applicable law; the court finds that such guardian or conservator has committed a breach of fiduciary duty or has threatened to commit a breach of fiduciary duty; the court revokes or suspends the guardian or conservator's letters of guardianship or conservatorship or imposes sanctions upon him or her in a proceeding; or the court otherwise finds that the guardian or conservator has committed misconduct or has acted contrary to the best interest of the minor or ward.
Status: 5/6/19: signed by the Governor; Act 233; effective 1/1/20
NEW LAW: HB 213 – Hemp Processors. Would require a person seeking a hemp processor permit to post a $100,000 surety bond to secure the permittee's compliance with the law.
Status: 5/10/19: signed by the Governor; Act 314; effective 5/10/19
NEW LAW: HB 257 – Magistrates. Would increase the amount of the bond required for magistrates from $25,000 to $100,000.
Status: 5/6/19: signed by the Governor; Act 227; effective 7/1/19
HB 417 – Trauma Scene Waste Management Service Providers. Would require a trauma scene waste management service provider to be licensed and post a $25,000 surety bond for the benefit of any person harmed in the provider's performance of its services. In addition to being licensed by the state insurance department, the surety issuing the bond would have to be approved by the Bureau of Investigation with regard to its solvency.
Status: 4/2/19: (H) withdrawn, recommitted - Public Safety and Homeland Security
Related Bill: SB 153
HB 450 – Mariculture Development. Would require master harvesters entering into a lease for shellfish mariculture activities on sub-tidal water bottoms to post a $20,000 performance bond to secure compliance with the applicable law. The bill provides for the forfeiture of the bond for violations.
Status: 2/25/19: (H) read second time
Related Bills: HB 501, SB 182
NEW LAW: HB 501 – Mariculture Development. Would require master harvesters entering into a lease for shellfish mariculture activities on sub-tidal water bottoms to post a $20,000 performance bond to secure compliance with the applicable law. The bill provides for the forfeiture of the bond for violations.
Status: 5/6/19: signed by the Governor; Act 217; effective 5/6/19
Related Bills: HB 450, SB 182
HB 565 – Mariculture Development. Would require master harvesters entering into a lease for shellfish mariculture activities on sub-tidal water bottoms to post a $20,000 performance bond to secure compliance with the applicable law. The bill provides for the forfeiture of the bond for violations.
Status: 3/7/19: (H) read second time
Related Bills: HB 450, HB 501, SB 182
NEW LAW: SB 91 – Private Postsecondary Educational Institutions. Would require any orthodontic school and residency program that obtains an exemption from the existing law's requirements for non-public postsecondary educational institutions to post a $450,000 surety bond or letter of credit for 5 years after the date from qualifying for the exemption.
Status: 5/6/19: signed by the Governor; Act 226; effective 7/1/19
SB 153 – Trauma Scene Waste Management Service Providers. Would require a trauma scene waste management service provider to be licensed and post a $25,000 surety bond for the benefit of any person harmed in the provider's performance of its services. In addition to being licensed by the state insurance department, the surety issuing the bond would have to be approved by the Bureau of Investigation with regard to its solvency.
Status: 5/10/19: vetoed by the Governor
Related Bill: HB 417
SB 182 – Mariculture Development. Would require master harvesters entering into a lease for shellfish mariculture activities on sub-tidal water bottoms to post a $20,000 performance bond to secure compliance with the applicable law. The bill provides for the forfeiture of the bond for violations.
Status: 3/5/19: (H) read second time
Related Bills: HB 450, SB 501
CONTRACT SURETY
HB 90 – Small/Minority Businesses. Would create the Division of Supplier Diversity to provide programs to assist minority- and women- owned businesses obtain state contracts and subcontracts. The director of the Division could provide assistance for and facilitated access to programs serving these businesses to ensure that they benefit from bonding and insurance education programs. The Director could review contracting agencies' bonding and paperwork requirements and seek to maximize the use of federal bond guarantees.
Status: 2/5/19: (H) second readers
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
SB 537 – Small Loan Lenders. Would require small loan lenders to be licensed and post a surety bond in an amount ranging from $30,000 to $250,000, based on the lender's loan origination volume. The bond would secure the lender's compliance with applicable laws and regulations, and the payment of any amount due to the state and persons having a cause of action against the lender. The surety's aggregate liability would be limited to the bond amount.
Status: 4/17/19: (H) received notice of Senate conferees
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: 6/12/19: (S) Act 072, 6/7/19 (Gov. Msg. No. 1173); effective 1/1/20
CONTRACT SURETY
HB 821 – P3s; Infrastructure. Would authorize the Department of Business, Economic Development, and Tourism to enter into a P3 to plan, build, and manage key strategic broadband infrastructure that benefits the state, including a cable landing station. The bill would exempt these projects from the state procurement law, which includes the Little Miller Act. The P3 partners would have to develop internal policies and procedures for the procurement of goods, services, and construction that are consistent with the goals of public accountability and public procurement. The bill also would exempt these projects from state and county permitting requirements.
Status: 3/21/19: (S) Committee report adopted; passed second reading, as amended, and referred to Ways and Means
HB 889 – P3s. Would authorize the state and county governments to enter into P3s for infrastructure facilities. In addition to the current bid security requirements, the bill would require one or more forms of security to assure the timely, faithful, and uninterrupted provision of operations or maintenance services as elements of the P3. Acceptable forms of security would include operations period surety bonds to secure the contractor's operations and maintenance obligations, a letter of credit to cover the cost of preventing infrastructure service interruptions for a period of up to 12 months, and parent company guarantees to secure the recovery of re-procurement costs to the purchasing agency in the event of the contractor's default in performance. The bill would establish the Office of Public-Private Partnerships to assist state and county agencies with these projects and develop best practices for P3s.
Status: 4/24/19: (H) in Conference Committee
HB 1025 – Performance Bonds. Would require the lessee, or lessee and developer, for a lease with the Board of Land and Natural Resources for public lands for commercial, hotel, resort, or industrial use to furnish a sufficient performance bond to secure the terms and conditions of the development agreement.
Status: 4/26/19: (S) in Conference Committee; received notice of change in conferees
Related Bill: SB 1251
HB 1062 – Infrastructure; Performance Bonds. Would establish a broadband infrastructure grant program. The bill provides that the regulations adopted to implement the program could not include third-party audit requirements, letter of credit, security fund, or performance bond obligations, or any other financial commitment to secure performance other than those expressly specified in the law. The law does not currently include such specifications.
Status: 4/23/19: (S) in Conference Committee; received notice of appointment of House conferees
Related Bill: SB 553
HB 1582 – Bid Bonds. Would allow proposals to be submitted for concessions on public property. Existing law only allows for bids. Such proposals would be subject to the existing law's bid bond requirements for concessions contracts.
Status: 4/22/19: (H) in Conference Committee; received notice of Senate conferees
HCR 42 – P3s. Would direct the Honolulu Parks and Recreation Department to enter into a P3 with a nonprofit organization to develop a proposal for the design, financing, construction, and operation of a racetrack facility in Kalaeloa.
Status: 3/14/19: (H) referred to Water, Land and Hawaiian Affairs/Judiciary and Finance
Related Bill: SCR 108
SB 553 – Infrastructure; Performance Bonds. Would establish a broadband infrastructure grant program. The bill provides that the regulations adopted to implement the program could not include third-party audit requirements, letter of credit, security fund, or performance bond obligations, or any other financial commitment to secure performance other than those expressly specified in the law. The law does not currently include such specifications.
Status: 3/22/19: (H) Committee report adopted; referred to Finance as amended
Related Bill: HB 1062
SB 1251 – Performance Bonds. Would require the lessee, or lessee and developer, for a lease with the Board of Land and Natural Resources for public lands for commercial, hotel, resort, or industrial use to furnish a sufficient performance bond to secure the terms and conditions of the development agreement.
Status: 3/7/19: (H) passed first reading; referred to Water, Land, and Hawaiian Affairs; Judiciary; Finance
Related Bill: HB 1025
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 141 – Reclamation. Would revise the financial assurance requirements for mining operations to permit other forms of security to be furnished in lieu of a surety bond as financial assurance. The bill also would eliminate the requirement for the financial assurance to include an additional 10% of the costs of reclamation and closing the facility.
Status: 3/26/19: signed by the Governor; Chapter No. 226; effective 7/1/19
NEW LAW: SB 1048 – Fidelity Bond; Financial Institution. Would revise the fidelity bond requirement for credit unions to eliminate a requirement that the fidelity bond cover burglary, robbery, larceny, theft, forgery or alterations of instruments, misplacement or mysterious disappearance, and for faithful performance of duty. The bond only would have to cover fraud and dishonesty as required under existing law.
Status: 3/22/19: signed by the Governor; Chapter 188; effective 7/1/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1438 – Cannabis Dispensaries. Would legalize cannabis for recreational use and would require cannabis dispensaries to be licensed and post a $50,000 surety bond or maintain $50,000 in an escrow account. The bond would be conditioned on the timely and successful completion of the dispensary's construction, operating in a manner that provides an uninterrupted supply of cannabis, faithfully paying registration renewal fees, keeping accurate books and records, making regularly required reports, complying with State tax requirements, and conducting the dispensing organization in compliance with the applicable law and regulations.
Status: 6/6/19: (H) sent to the Governor
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: 5/16/19: (S) third reading, passed. Passed both Houses.
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: 5/29/19: (H) passed both Houses
HB 3269 – Motor Vehicle Dealers. Would require "Buy Here, Pay Here" used vehicle dealers to be licensed and post a surety bond for $50,000 per location. The bond would be conditioned upon the proper transmittal of all title and registration fees and taxes that the licensee accepts. A "Buy Here, Pay Here" dealer is an entity that engages in the business of selling or leasing of vehicles and finances the sale or purchase price of the vehicle to a customer without the customer using a third-party lender.
Status: 5/29/19: (S) read third time, passed. Passed both Houses
SB 2037 – Notary Public Remittance Agents. Would require notary public remittance agents to post a $20,000 surety bond. Such agents remit notary public applications to the Secretary of State on behalf of applicants for appointment and commission as a notary public.
Status: 5/23/19: (S) passed both Houses
CONTRACT SURETY
HB 2722 – Payment Bonds. Would amend the Little Miller Act to require the bond to cover the payment of apparatus, fixtures, and machinery used in the completion of a contract. Existing law requires the bond to cover the payment of materials and labor. The bill would allow persons furnishing an apparatus, fixtures, and machinery to file claims against the bond for payment as provided under existing law for persons furnishing materials and labor. The bill would define "material", "labor", "apparatus", "fixtures", and "machinery" to include rented items that are on the construction site and rented tools used or consumed on the construction site in the performance of the contract for which the bond is given.
Status: 5/16/19: (H) passed both Houses
SB 1636 – Retainage. Would cap retainage on private construction contracts at not more than 10% of the progress payments until the project reaches 50% completion, at which time retainage would be reduced to 5%.
Status: 5/23/19: (S) passed both Houses
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 1086 – Local Licensing and Permitting. Would establish standards for license bonds that a political subdivision may require. If a person is required to post a license or permit bond in a political subdivision, the bond would have to be: (i) written by a surety authorized to transact business in the state; (ii) in an amount that is at least equal to the amount that the political subdivision requires; and (iii) must specify the appropriate political subdivision(s) as the obligee(s), as set forth in the bill. The bond condition would have to otherwise comply with the requirements of the ordinance imposing the bond requirement. The licensee would have to file a copy of the bond with the political subdivision or the appropriate agency. The political subdivision would be prohibited from requiring the license bond to be recorded.
Status: 4/29/19: signed by the Governor; P.L. No. 123-2019; effective 7/1/19
NEW LAW: 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: 5/1/19: signed by the Governor; P.L. No. 168-2019; effective 7/1/19
NEW LAW: HB 1258 – Boiler and Pressure Vessel Inspection Agencies. As amended, this bill would eliminate the licensing requirement for a boiler and pressure vessel inspection agency, along with the $100,000 bond requirement.
Status: 5/1/19: signed by the Governor; P.L. No. 171-2019; effective 7/1/19
NEW LAW: 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: 5/1/19: signed by the Governor; P.L. No. 175-2019; effective 7/1/19
NEW LAW: 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: 5/1/19: signed by the Governor; P.L. No. 176-2019; effective 7/1/19
NEW LAW: 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: 5/5/19: signed by the Governor; P.L. No. 221-2019; effective 7/1/19
CONTRACT SURETY
NEW LAW: HB 1019 – Bond Threshold. Would increase the threshold at which certain bidding requirements must be met for construction contracts with county drainage boards from $75,000 to $150,000, including bonding requirements. For contracts under this threshold, the boards have the authority to waive the bid bond and performance bond requirements under existing law. The state bond threshold is $200,000.
Status: 4/18/19: signed by the Governor; effective 7/1/19
NEW LAW: 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: 5/2/19: signed by the Governor; P.L. No. 208-2019; effective 7/1/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: 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: 5/1/19: signed by the Governor; effective 7/1/19
NEW LAW: HF 610 – Guardianships and Conservatorships. Would revise the cases in which a court could waive the bond requirement for a conservator by eliminating the option to waive the bond for conservatorships with assets of less than $25,000. The bond could only be waived for financial institutions with Iowa trust powers or if the conservator provides an alternate form of protecting the assets that the court approves. Existing law permits an individual's will to waive the bond requirement.
Status: 5/1/19: signed by the Governor; effective 1/1/20
NEW LAW: SF 435 – Travel Trailer Dealers. Would eliminate an exemption for motor vehicle manufacturers, distributors, wholesalers, and dealers from the existing law's requirement for travel trailer dealers to post a $25,000 bond. The bill would also expand the existing law's licensing and bond requirements for travel trailer dealers to apply to all towable recreational vehicle dealers.
Status: 5/3/19: signed by the Governor; effective 1/1/20
NEW LAW: SF 617 – Sports Wagering. Would authorize gambling companies to conduct sports betting in the state. The license bond required under existing law for gambling companies would have to secure that the licensee conducts its sports betting operations in compliance with the applicable law and regulations.
Status: 5/13/19: signed by the Governor; effective immediately
NEW LAW: SF 619 – Service Contract Providers. Would revise the existing law for residential service contracts by subjecting motor vehicle service contracts to the law, and allowing a service company to provide other forms of security in lieu of the $100,000 bond or deposit. A company would be allowed to obtain a reimbursement insurance policy, maintain a funded reserve account and provide a financial security deposit, or maintain a minimum net worth or stockholders' equity. The deposit would have to be for no less than 5% of the gross consideration that the service company receives, less claims paid, for the sale of all motor vehicle service contracts and residential service contracts issued and in force in the state, but not less than $25,000.
Status: 5/16/19: signed by the Governor; effective immediately
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 2101 – Credit Union Boards of Directors. Would eliminate the authority for a credit union's board of directors to acquire surety bonds. Instead, the board would be authorized to purchase adequate fidelity and insurance coverage for officers, directors, committee members and employees, and for losses caused by persons outside the credit union for which the credit union would be liable.
Status: 4/10/19: approved by the Governor; Chapter 22; effective 7/1/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 199 – Oil and Gas Wells. Would change the required bonding amounts for oil and gas wells. The bill would eliminate the current amounts required for individual shallow wells to secure plugging them, which is based on depth and ranges from $500 to $8,000. For new permits, the bill provides that the bond would have to be for $2 per foot of true vertical well depth. The bill also would eliminate the different blanket bond amounts for qualified and nonqualified shallow well operators. Currently, the blanket bond for qualified shallow well operators must be in amount ranging from $10,000 to $100,000 based on the number of wells that are covered. For nonqualified well operators, the bond amount ranges from $50,000 to $100,000 based on the number of wells covered. For all shallow wells, the blanket bond would have to be in amount ranging from $20,000 to $100,000 based on the number of wells covered. The bill would establish procedures for well operators to adjust their bonds to meet the requirements set forth in the bill.
Status: 3/18/19: signed by the Governor; effective 90 days after adjournment
NEW LAW: HB 285 – Consumer Loan Companies. Would require consumer loan companies to post a license bond or other security for $100,000 if the licensee is privately held and for $250,000 if the license is publicly traded. The bond would secure the recovery of expenses, fines, and fees levied or imposed against the licensee, and for losses or damages that the Commissioner determines are incurred by any customer as a result of the licensee's failure to comply with the requirements of the law. The bill would limit the surety's aggregate liability to the bond amount.
Status: 3/26/19: signed by the Governor; Act No. 120
NEW LAW: HB 386 – Insurance Innovation. Would create an application process for admitting companies to the regulatory sandbox to permit the company to beta test an insurance innovation under a limited no-action letter. The bill would require companies seeking entry into a sandbox to provide a statement that the company has at least $25,000 available to guarantee its financial stability. The company could meet this requirement by posting a surety bond or other security.
Status: 3/26/19: signed by the Governor; Act No. 147
NEW LAW: SB 32 – Water Well Drillers. Would establish certification requirements for water well driller assistants. An assistant would be allowed to work under the surety bond of the supervising certified water well driller, or must provide proof that the assistant has obtained their own bond and insurance. Current law requires water well drillers to post a $5,000 bond and maintain a liability insurance policy.
Status: 3/11/19: signed by the Governor; Act No. 4; effective 90 days after adjournment
NEW LAW: SB 114 – Notaries Public. This is an omnibus bill, consisting of new statutory language and creating new sections relating to notaries public and the recording of paper and electronic records regarding real property. As "notarial officers," the provisions affect county clerks. The notary bond requirement has not changed.
Status: 3/25/19: signed by the Governor; Chapter No. 86; effective 1/1/20
NEW LAW: SB 153 – Grain Dealers and Grain Warehouses. Would revise the amount of the bond required for grain dealers and grain warehouse operators. Current law requires warehouse operators to post a bond for 25-cents per bushel of the total maximum bushel capacity of the warehouse, or $25,000, whichever is greater. The maximum bond amount is $1 million. The bill would require the bond for grain warehouse operators to be equal to 10% of the aggregate dollar value of the grain deposited in the grain warehouse operator's most recently completed fiscal year; or the amount of grain estimated to be deposited in the operator's warehouse during the current fiscal year if no records of the previous year are available. The minimum bond amount would be $50,000 and the maximum bond amount would be $1 million. The bill would increase the minimum bond amount for grain dealers from $25,000 to $50,000.
Status: 3/25/19: signed by the Governor; effective 8/1/19
CONTRACT SURETY
NEW LAW: HB 26 – Bid Bonds; Bond Threshold; Payment and/or Performance Bonds. As amended, this bill would increase the threshold at which bonds are required for local government projects from $25,000 to $100,000. The bill also would increase the public bidding and small purchase procedure thresholds. The state bond threshold is $40,000.
Status: 3/25/19: signed by the Governor
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 350 – Third-Party Testers. Would increase the amount of the bond required for third-party testers for driver licenses from $10,000 to $40,000.
Status: 6/11/19: signed by the Governor; Act No. 216; effective 8/1/19
HB 405 – Promoters. Would eliminate professional wrestling from the State Boxing and Wrestling Commission's authority; the Commission would only regulate boxing and mixed technique matches. Therefore, the promoter bond requirement for professional wrestling matches would be eliminated.
Status: 5/6/19: (H) read third time, amended, roll called on final passage. Failed to pass, motion to reconsider tabled.
NEW LAW: HB 410 – Insurance Producers. Provides a fee for the company appointment and renewal for insurance producers which shall be collected by the commissioner of insurance and repeals the annual assessment on property and casualty insurers. Under current law, the fee for an initial or renewal appointment is $20 annually. The proposed law increases the initial company appointment of an individual from $20 to $30; the fee for renewals would be $20 paid yearly by January 1. An initial company appointment of a business entity and a renewal, which shall occur yearly by August 1, shall be $100.
Status: 6/11/19: signed by the Governor; Act No. 226; effective 6/11/19
NEW LAW: SB 193 – Structured Settlement Companies. Would require structured settlement purchase companies to register and post a surety bond or letter of credit for $50,000. The bond would protect persons who do business with the company and secure the company's compliance with the applicable law and performance of its obligations.
Status: 6/11/19: signed by the Governor; Act No. 260; effective 7/1/20
CONTRACT SURETY
HB 203 – Payment and/or Performance Bonds. Would revise the amount of the bond that may be required for private construction contracts by eliminating the formula for calculating the bond amount based on the contract price and instead requiring the bond to be for not less than the price of the contract. Under current law, the bond may be for less than the contract price. The bill provides that for contracts exceeding $100,000, the bond must be issued by a surety company licensed to do business in the state. Under current law, the surety for the bond only needs to be issued by a "solvent, legal surety." The bill also would make technical revisions to the claims provisions to conform the existing law to existing case law and statutes.
Status: 6/5/19: (H) sent to the Governor
HB 561 – P3s; Payment and/or Performance Bonds. Would create the Calcasieu Parish Tolling Authority (Authority) and would authorize the Authority to use P3s or other alternative and innovative funding sources for capital projects for tollways, which would include any limited access highway, bridge, or other transportation facility that the Authority operates. In particular, the legislative findings provide that the Authority would be created for a project for a six-lane bridge, located parallel to the existing Interstate 10 Calcasieu River Bridge. For using P3s, the Authority would have to comply with the existing P3 law for the Louisiana Transportation Authority's transportation facility projects. Under this law, the comprehensive agreement for the P3 must provide for the delivery of performance and payment bonds or other forms of completion guarantee in connection with the construction of or improvements to the qualifying transportation facility, in the forms and in amounts satisfactory to the authority. The Authority would have to approve any proposal to develop or operate a transportation facility as a P3 project. The Authority would have to submit the proposal to the House and Senate committees on transportation, highways and public works.
Status: 5/1/19: (S) read second time and referred to Transportation, Highways and Public Works
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 389 (LD 532) – Professional Licensure and Certification. Would require each professional licensing and certification board to work with the Attorney General to review its rules and procedures and to survey its licensees and certificate holders and license and certification applicants to research barriers to obtaining them, including existing deficiencies in reciprocity provisions. Each board would have to provide a report on their findings and any proposed alterations to its rules and procedures.
Status: 6/6/19: (S) pursuant to Joint Rule 310.3 placed in Legislative Files (DEAD)
HB 1075 (LD 1468) – Uniform Directed Trust Act. Would adopt the Uniform Directed Trust Act, which requires the trust director to comply with the existing bond requirement for trustees under the Uniform Trust Code. Existing law provides that a trustee must post a bond only if the court requires one or it is required by the terms of the trust and the court has not dispensed with the requirement.
Status: 6/7/19: (S) passed to be enacted, in concurrence
HB 1118 (LD 1535) – Conservators. Provides that the bond or other security required under existing law for conservators of an estate would only be mandatory when the value of the estate exceeds $50,000. For estates under $50,000, the court would have discretion to require a bond. The bill would also grant the court discretion to waive bond requirements for a spouse serving as a conservator.
Status: 6/3/19: (H) from Judiciary: ought to pass with amendment
HB 1255 (LD 1768) – Barbering and Cosmetology Licensing. Provides that if a career and technical education center does not assess or collect tuition for barbering or cosmetology courses, it would be exempt from the license bond or financial audit filing requirements under existing law. Current law requires a $20,000 bond for an initial license and an amount based on the tuition collected in the previous calendar year for a renewal license.
Status: 6/12/19: (S) passed to be enacted, in concurrence
HB 1267 (LD 1782) – Motorcycle Rider Education Schools. Would require motorcycle rider education schools to be licensed and post a $10,000 bond.
Status: 6/10/19: (S) passed to be enacted, in concurrence
HB 1276 (LD 1797) – Advance Deposit Wagering - Harness Racing. Would allow a commercial track licensed by the State Harness Racing Commission, an off-track betting facility licensed by the State Harness Racing Commission and in operation as of January 1, 2014, and a multi-jurisdictional account wagering provider to obtain a license for advance deposit wagering. The licensee would have to post a bond to secure the deposits in the accounts of advance deposit wagering bettors.
Status: 6/4/19: (H) in Veterans and Legal Affairs, work session held
CONTRACT SURETY
HB 636 – Retainage. Would cap retainage for private construction contracts at not more than 5% of the contract price, pending completion of the contractor's or subcontractor's performance.
Status: 6/13/19: (S) Unfinished business
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 1065 – Receivership. Would adopt the Uniform Commercial Receivership Act, which provides that the court would be authorized to require a receiver to post a bond or other security. The court also could authorize a receiver to act without posting a bond or other security or to act prior to posting it. The bond or other security would be conditioned on the faithful performance of the receiver's duties. The court would determine the amount required.
Status: 4/30/19: signed by the Governor; Chapter No. 284; effective 10/1/19
NEW LAW: 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.
Status: 4/18/19: signed by the Governor; Chapter No. 100; effective 10/1/19
CONTRACT SURETY
NEW LAW: HB 524 – Payment and/or Performance Bonds; Prevailing Wage. Would revise the existing law for filing a suit for prevailing wage violations to allow an employee under a public work contract who is paid less than the prevailing wage rate for that employee's classification for the work performed to sue to recover the difference between the prevailing wage rate and the amount received by the employee. Under existing law, the bonds on public work contracts must guarantee the faithful performance of the prevailing wage rate clause of the public work contract. Under existing law, employees are required to file wage complaints with the Commissioner, who investigates and makes a determination on the complaint regarding the restitution due to the employee. The bill provides that if the Commissioner makes a determination that a contractor is required to make restitution to an employee, it would not preclude an employee from filing a suit in court. The bill provides that the contractor and the subcontractor would be jointly and severally liable for any violation of the subcontractor's obligations under the prevailing wage law.
Status: 5/25/19: Became law without the Governor's signature; Chapter 663; effective
NEW LAW: SB 300 – Payment and/or Performance Bonds; Prevailing Wage. Would revise the existing law for filing a suit for prevailing wage violations to allow an employee under a public work contract who is paid less than the prevailing wage rate for that employee's classification for the work performed to sue to recover the difference between the prevailing wage rate and the amount received by the employee. Under existing law, the bonds on public work contracts must guarantee the faithful performance of the prevailing wage rate clause of the public work contract. Under existing law, employees are required to file wage complaints with the Commissioner, who investigates and makes a determination on the complaint regarding the restitution due to the employee. The bill provides that if the Commissioner makes a determination that a contractor is required to make restitution to an employee, it would not preclude an employee from filing a suit in court. The bill provides that the contractor and the subcontractor would be jointly and severally liable for any violation of the subcontractor's obligations under the prevailing wage law.
Status: 3/28/19: Enacted, became law without the Governor's signature; Chapter 9; effective 10/1/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 31 – Debt Collectors, Check Sellers, and Money Transmitters. Would revise certain bond requirements so that the bond would have to be approved by the Banking Commissioner instead of the state treasurer, including the license bond requirements for debt collectors, sellers of checks and money orders, and money transmitters for foreign transactions. The bill also would allow for the submission of "other acceptable bond documentation."
Status: 5/30/19: in Joint Committee on Financial Services; hearing held
HB 332 – Vendors. Would require vendors conducting retail sales or services in a booth, tent, table, kiosk, or other space that is not the vendor's fixed building site to post a surety bond to guarantee repayment of a consumer's purchase price in the event of a return. The bond would have to be in place for one year from date of the vendor's sublease or from the issuance of the vendor's license. The bond would have to guarantee a minimum return amount of up to $1,000 for a single purchase.
Status: 3/1/19: (H) referred to Joint Committee on Consumer Protection and Professional Licensure (dated 1/22/19)
HB 924 – Money Transmitters. Would revise the law for money transmitters handling foreign deposits to require a bond or other security from all money transmitters for $50,000 plus $10,000 per location. The bond would be capped at not more than $450,000. Under current law, the bond amount must be equal to twice the average weekly amount of money or its equivalents transmitted to foreign countries. The bond cannot be less than $50,000. If the licensee has more than one location, the bond must be for $50,000, or twice the average total weekly amount of money or equivalents thereof transmitted to foreign countries from all locations, whichever is greater. The bill provides that the surety's aggregate liability could not exceed the principal sum of the bond. The bill also would add a five-year tail to the bond requirement.
Status: 5/30/19: in Joint Committee on Financial Services; hearing held
HB 928 – Rate and Form Filings. Would exempt specialty commercial lines of insurance from the existing law's rate and form filing requirements, including surety and fidelity. Insurers would have to maintain underwriting files, premium, loss and expense statistics, financial and other records regarding the lines of business that are exempt.
Status: 2/26/19: (H) in Joint Committee on Financial Services
HB 937 – Life Insurance Settlement Providers. Would require life insurance settlement providers entering into a life settlement contract in connection with a Medicaid long-term benefits program to post security in the form of a surety bond, policy of errors and omissions insurance, deposit, securities, or any combination thereof in the amount of $500,000.
Status: 2/26/19: (H) in Joint Committee on Financial Services
HB 1073 – Debt Management Services Providers. Would require debt management services providers to be licensed and post a surety bond in an amount that the Commissioner of Banks will determine.
Status: 2/26/19: (H) in Joint Committee on Financial Services
HB 1114 – Appraisal Management Companies. Would require real estate appraisal management companies to be licensed and post a surety bond in an amount that the Board of Real Estate Appraisers would determine. The bond would secure the company's faithful performance of its obligations under the proposed law. The bill would permit direct actions on the bond, but the surety's aggregate liability would not exceed the principal sum of the bond. A deposit of cash or security would be accepted in lieu of the surety bond.
Status: 5/30/19: (H) reported favorably by Financial Services and referred to Ways and Means
HB 2396 – Tourism Marketing. Would require the management entity for a tourism marketing district to post a surety bond conditioned on the faithful performance of its duties. Such entities receive the funds for the district and implement the district's purpose.
Status: 2/26/19: (H) in Joint Committee on Revenue
Related Bill: SB 232
HB 3807 – Tuition Recovery Fund. Would create a recovery fund for student tuition for for-profit, private postsecondary institutions. Under existing law, these schools are required to post a bond or other security. The bill indicates that the students would recover from the fund first and the recovery fund would be reimbursed by the bond. The bill provides that if any unencumbered funds become available from the bond or other security, the funds would have to be used to reimburse the fund for payments that were made to persons who were injured as a result of the school ceasing to operate.
Status: 6/3/19: (H) discharged to Joint Committee on Consumer Protection and Professional Licensure. Senate concurred.
SB 164 – School Bond. Would establish a student tuition recovery fund for students from for-profit schools if they collect prepaid tuition to pay claims in the event that the school ceases operations. The recovery fund would be in addition to the license bond required for these schools. The bill provides that Ii funds become available from the surety bond or other security, any unencumbered funds from that bond or other security would have to be used to reimburse the fund for payments previously made to persons injured by the school's ceasing operations.
Status: 2/28/19: (S) in Joint Committee on Consumer Protection and Professional Licensure
SB 232 – Tourism Marketing. Would require the management entity for a tourism marketing district to post a surety bond conditioned on the faithful performance of its duties. Such entities receive the funds for the district and implement the district's purpose.
Status: 2/28/19: (S) in Joint Committee on Economic Development and Emerging Technologies
Related Bill: HB 2396
CONTRACT SURETY
HB 74 – Bid Bonds; Performance Bonds. Would authorize the use of job order contracts for maintenance, repair, alteration and conversion projects for public agencies for contracts up to $150,000. The bill provides that the bid deposit amount would be $5,000 and the amounts of surety bonds required by the contract could be satisfied for each particular job order before the commencement of any work.
Status: 2/27/19: (H) Ways and Means reported, in part, by substitution of new draft; see HB 3505
HB 231 – Payment and/or Performance Bonds. Would revise the existing law concerning home improvement contractors to exempt them from the deposit requirements if the contractor furnishes a performance and payment bond, a lien and/or completion bond, or a bond equivalent that the director of Consumer Affairs and Business Regulation approved covering a minimum of $2 million. Under current law, any deposit required under the contract to be paid in advance of the commencement of work is prohibited from exceeding the greater of one-third of the total contract price or the actual cost of any materials or equipment that are a special order or custom made and must be ordered prior to commencement of the work.
Status: 3/1/19: referred to Joint Committee on Consumer Protection and Professional Licensure
HB 2773 – Construction Managers; Payment and/or Performance Bonds. Would revise the existing law concerning construction managers at risk (CM at risk) to allow them to obtain a subcontractor default insurance policy (CDI) in lieu of the current requirement for trade contractors working for a CM at risk to provide a 100% payment and performance bond. The CM at risk still would have to provide 100% payment and performance bonds to the public owner as required under existing law.
Status: 3/4/19: (H) filed as House Docket 3258
HB 3099 – P3s; Payment and/or Performance Bonds. Would authorize the Department of Transportation to use P3s for transportation facility projects. The DOT would have to ensure that the procurement documents for the P3 include provisions for performance of the private entity and payment of subcontractors, which could include surety bonds letters of credit, parent company guarantees, and lender and equity partner guarantees. The DOT would have to balance the structure of the security package for the P3 that ensures performance and payment of subcontractors with the cost of the security to ensure the most efficient pricing.
Status: 3/4/19: (H) filed as House Docket 2562
SB 140 – Payment and/or Performance Bonds. Would revise the existing law concerning home improvement contractors to exempt them from the deposit requirements if the contractor furnishes a performance and payment bond, a lien and/or completion bond, or a bond equivalent that the director of Consumer Affairs and Business Regulation approved covering a minimum of $2 million. Under current law, any deposit required under the contract to be paid in advance of the commencement of work is prohibited from exceeding the greater of one-third of the total contract price or the actual cost of any materials or equipment that are a special order or custom made and must be ordered prior to commencement of the work.
Status: 1/22/19: (S) referred to Joint Committee on Consumer Protection and Professional Licensure; House concurred.
Related Bill: HB 231
SB 1913 – P3s; Payment and/or Performance Bonds. Would authorize municipalities, a redevelopment authority, or a fire, water, sewer, or water pollution abatement district to enter into P3s for the construction of buildings and facilities used for public water supply or treatment, storm water treatment and disposal, waste water treatment and disposal, or flood control. The comprehensive agreement contract would have to provide for the delivery of maintenance, performance and payment bonds or letters of credit, or other security for the selected offeror's obligations under the P3 agreement for the eligible project, in the forms and amounts satisfactory to the public agency. The bill would authorize the public agency may make or cause to be made any claims under the required bonds or letters of credit.
Status: 3/1/19: to Joint Committee on State Administration and Regulatory Oversight
SB 2181 – Payment and/or Performance Bonds. Would authorize the use of job order contracts for maintenance, repair, alteration and conversion projects for public agencies for contracts up to $150,000. The bill provides that the bid deposit amount would be $5,000 and the amounts of surety bonds required by the contract could be satisfied for each particular job order before the commencement of any work.
Status: 3/7/19: (S) substituted as amended for HB 3506
SB 2184 – Bid Bonds; Performance Bonds. Would authorize the use of job order contracts for maintenance, repair, alteration and conversion projects for public agencies for contracts up to $150,000. The bill provides that the bid deposit amount would be $5,000 and the amounts of surety bonds required by the contract could be satisfied for each particular job order before the commencement of any work.
Status: 3/7/19: (S) text of SB 2181, printed as amended. See HB 3506
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 4715 – Public Officials. Would eliminate the bond required under existing law for county officers.
Status: 6/11/19: (H) introduced; referred to Local Government and Municipal Finance
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
SB 320 – Alcoholic Beverages. Would repeal the tax bond required for a manufacturer of beer, wine or mixed spirit drinks and for an out-of-state seller of beer, wine or mixed spirit drinks. The bond must be for an amount equal to 1/12 of the total excise taxes paid in the last calendar year, or $1,000, whichever is greater. The bill also would repeal the $1,000 bond required for a special license authorizing the sale of beer, mixed spirit drink, wine, or spirits for consumption on the premises for manufacturers. The bill also would repeal the bond required in connection with using liquor for industrial manufacturing purposes.
Status: 5/15/19: (S) introduced and referred to Regulatory Reform
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HF 90 – Assisted Living Establishments. Would require assisted living centers to post a bond or obtain insurance if they manage resident funds to secure the funds in an amount sufficient to cover losses of resident funds.
Status: 5/22/19: signed by the Governor; Chapter 60; effective
Related Bill: SF 8
HF 1603 – Election Recounts. Would require candidates defeated in an election using ranked choice voting who request a recount to post a bond or other security in an amount that would secure the payment of the costs of the recount.
Status: 4/26/19: (H) in State Government Finance Division. Author added.
Related Bill: SF 2424
HF 2125 – Fuel Distributors. Would repeal the bond required under existing law for fuel distributors and special fuel dealers. Current law requires distributors and dealers to post a bond in an amount that the Commissioner of Revenue determines that is conditioned on the payment of all taxes, fees, penalties, and interest. Distributors and dealers that meet the financial requirements in the law can obtain an exemption from the bond requirement.
Status: 5/1/19: Senate conferees appointed
Related Bill: SF 2411
HF 2414 – Medicaid. Provides that the amounts of the surety bond and the fidelity bond required of a personal care assistance provider would be calculated per location. Also, assisted living centers would be required to post a bond if they manage resident funds. The bill also would require wholesale drug distributors that are not government owned and operated to post a $100,000 license bond, unless the distributor has $10 million or less in annual gross receipts, in which case a $25,000 bond would be required. Evidence of a bond posted in another state would be accepted in lieu of posting a bond in Minnesota. The bond would secure the payment of civil penalties.
Status: 5/1/19: Senate conferees appointed
HF 2861 – Taxes. Would eliminate the income tax and business taxes and replace the current sales tax law with a new sales and use tax on the final use or consumption of taxable property or taxable services in the state, which would be called the "fair tax." With the proposed changes to the tax law, the bill would eliminate the bond requirements for out-of-state and foreign contractors to post a tax bond in connection with the sales and income taxes for a construction contract and the bond required in connection with purchasing tax stamps for cigarettes.
Status: 5/2/19: (H) in Committee on Taxes; author added
NEW LAW: HF 5A – Fuel Distributors. Would repeal the bond required under existing law for fuel distributors and special fuel dealers. Current law requires distributors and dealers to post a bond in an amount that the Commissioner of Revenue determines that is conditioned on the payment of all taxes, fees, penalties, and interest. Distributors and dealers that meet the financial requirements in the law can obtain an exemption from the bond requirement.
Status: 5/30/19: signed by the Governor; Chapter 6; effective
Related Bill: SF 11A
SF 4 – Medicaid - DMEPOS and Child Care Providers. Would revise the claim provisions for the bond required for durable medical equipment providers and suppliers participating in Medicaid to require the bond to allow for recovery of the entire value of the bond for up to five years from the date of submission of a claim for a medical assistance payment, if the enrolled provider violates the law or regulations, regardless of the amount of the actual loss. The bill would also require child care providers to post a surety bond for an initial authorization to receive child care assistance program funds from the State. The amount of the bond is not specified. The bond would only be required at the renewal of the provider's authorization if it received more than $100,000 in payments from the program in the previous calendar year. The bill provides that the bond would allow for recovery of costs and fees when filing a claim against the bond.
Status: 4/1/19: (S) Joint Rule 2.03, referred to Rules and Administration
SF 8 – Assisted Living Establishments. Would require assisted living centers to post a bond or obtain insurance if they manage resident funds to secure the funds in an amount sufficient to cover losses of resident funds.
Status: 4/1/19: (S) Health and Human Services Finance and Policy report: To pass as amended and re-refer to Finance
Related Bill: HF 90
SF 92 – Child Care Providers. Would require child care providers to post a minimum $100,000 surety bond if they receive child care assistance program funds from the State in an amount exceeding $250,000 during the previous calendar year. The bill would require the bond to allow for recovery of costs and fees when filing a claim against the bond.
Status: 4/11/19: (S) from Human Services Reform Finance and Policy: Do pass as amended. Re-referred to Finance. Rule 12.10: report of votes in committee
Related Bill: HF 168
SF 1896 – Fuel Distributors. Would repeal the bond required under existing law for fuel distributors and special fuel dealers. Current law requires distributors and dealers to post a bond in an amount that the Commissioner of Revenue determines that is conditioned on the payment of all taxes, fees, penalties, and interest. Distributors and dealers that meet the financial requirements in the law can obtain an exemption from the bond requirement.
Status: 2/28/19: (S) introduction and first reading; referred to Taxes
Related Bill: HF 1851
SF 2226 – Grain Buyers. Would exempt cash buyers of grain from the license bond requirements for grain buyers. The bill also provides that only a letter of credit could be posted in lieu of the grain dealer's bond, eliminating the other forms of security that currently may be posted. A public grain warehouse operator also would be allowed to post a letter of credit in lieu of the license bond.
Status: 5/20/19: (H) motion to refuse to concur, motion to lay on the table; motion prevailed
SF 2227 – Election Recounts. Would require candidates defeated in an election using ranked choice voting who request a recount to post a bond or other security in an amount that would secure the payment of the costs of the recount.
Status: 5/1/19: House conferees appointed
SF 2302 – Personal Care Assistants. Provides that the surety bond and the fidelity bond required for personal care assistance providers would have to be for $20,000 per location. Assisted living centers would be required to post a bond if they manage resident funds.
Status: 4/3/19: (S) from Human Services Reform Finance and Policy: To pass as amended and re-refer to Health and Human Services Finance and Policy
SF 2411 – Fuel Distributors. Would repeal the bond required under existing law for fuel distributors and special fuel dealers. Current law requires distributors and dealers to post a bond in an amount that the Commissioner of Revenue determines that is conditioned on the payment of all taxes, fees, penalties, and interest. Distributors and dealers that meet the financial requirements in the law can obtain an exemption from the bond requirement.
Status: 3/13/19: (S) introduction and first reading; referred to Taxes
Related Bill: HF 2125
NEW LAW: SF 2415 – Postsecondary Educational Institutions. Would revise the bond requirement for new postsecondary educational institutions with conditional approval to grant degrees to require them to post a bond in an amount equal to 10% of the net revenue from tuition and fees for the prior fiscal year, but not less than $10,000. Existing law requires a bond or letter of credit in an amount ranging from $10,000 to $250,000 only when the institution fails to meet the minimum financial standards of the U.S. Department of Education. The proposed bond requirement would be in addition to the existing requirement.
Status: 5/22/19: signed by the Governor; Chapter 64; effective
SF 2685 – Assisted Living Establishments. Would require assisted living centers to post a bond or obtain insurance if they manage resident funds to secure the funds in an amount sufficient to cover losses of resident funds.
Status: 4/1/19: (S) Joint Rule 2.03, referred to Rules and Administration
Related Bill: SF 2686
SF 2686 – Assisted Living Establishments. Would require assisted living centers to post a bond or obtain insurance if they manage resident funds to secure the funds in an amount sufficient to cover losses of resident funds.
Status: 4/1/19: (S) Joint Rule 2.03, referred to Rules and Administration
Related Bill: SF 2685
SF 2850 – Occupational Licensing. Would prohibit a person from being disqualified from pursuing a lawful occupation based solely on the person's criminal record. Each person would have to be given individual consideration based on the guidelines set forth in the bill. State license authorities also would be prohibited from using ambiguous terms such as "moral turpitude" and "good moral character." The bill would prohibit state licensing authorities from considering certain crimes on a person's criminal record. The bill would allow a person with a criminal record to petition a licensing authority to determine whether the criminal record would disqualify the person from obtaining state recognition to practice the occupation.
Status: 4/25/19: (S) introduction and first reading; referred to State Government Finance and Policy and Elections
Related Bill: HF 2394
NEW LAW: SF 1A – Grain Buyers. Would exempt cash buyers of grain from the license bond requirements for grain buyers. The bill also provides that only a letter of credit could be posted in lieu of the grain dealer's bond, eliminating the other forms of security that currently may be posted. A public grain warehouse operator also would be allowed to post a letter of credit in lieu of the license bond.
Status: 5/30/19: signed by the Governor; Chapter 1; effective
Related Bill: HF 7A
NEW LAW: SF 12A – Personal Care Assistants and Wholesale Drug Distributors. Provides that the amounts of the surety bond and the fidelity bond required for personal care assistance providers would have to be calculated per location. The surety bond amount is $50,000 or $100,000, based on the provider's Medicaid revenue in the previous year. The fidelity bond amount must be $20,000. The bill also requires wholesale drug distributors that are not government owned and operated to post a $100,000 license bond, unless the distributor has $10 million or less in annual gross receipts, in which case a $25,000 bond would be required. Evidence of a bond being posted in another state would be accepted in lieu of posting a bond in Minnesota. The bond secures the payment of civil penalties.
Status: 5/30/19: signed by the Governor; Chapter 9; effective
Related Bill: HF 14A
CONTRACT SURETY
HF 878 – Retainage. Provides that the maximum retainage percentage allowed for a building and construction contract would be the retainage percentage withheld by the public agency or owner from the prime contractor. Under existing law, retainage for a building and construction contract cannot exceed 5%. An owner or owner's agent may reduce the amount of retainage and may eliminate retainage on any monthly contract payment if the owner believes that the work is progressing satisfactorily. The bill would prohibit withholding retainage for warranties or warranty work. The bill would require retainage to be released within 30 days of the completed improvement date. Retainage also would have to be held in an interest-bearing escrow account or trust account at a banking institution whose principal place of business is Minnesota.
Status: 3/27/19: (H) Jobs and Economic Development Finance Division action: to adopt as amended and return to Ways and Means
Related Bill: SF 947
HF 2208 – Retainage. Provides that for public and private construction contracts exceeding $5 million, the owner must reduce retainage to not more than 2.5% if the work on the project is 75% complete or more. The bill also would allow the owner to withhold an additional 1% of the value of the contract or $500, whichever is greater, while all final contractor's final paperwork is pending, provided that no more than $10,000 could be withheld in this case. The bill also would specify that withholding retainage for warranties or warranty work is prohibited. The bill also would establish prompt pay requirements.
Status: 5/10/19: (H) per Joint Rule 3.02(a), Conference Committee discharged, bill laid on table
NEW LAW: HF 2A – Retainage. Revises the existing retainage laws to allow the owner for public and private projects to withhold the following amounts after a project reaches substantial completion: (1) 250% of the cost to correct or complete work known at the time of substantial completion; (2) an additional 1% of the value of the contract or $500, whichever is greater, while the contractor's final paperwork is pending, provided that no more than $10,000 could be withheld in this case. Under current law, retainage is capped at not more than 5%. The bill specifies that withholding retainage for warranties or warranty work is prohibited. The bill also establishes prompt pay requirements.
Status: 5/30/19: signed by the Governor; Chapter 7; effective
SF 947 – Retainage. Provides that the maximum retainage percentage allowed for a building and construction contract would be the retainage percentage withheld by the public agency or owner from the prime contractor. Under existing law, retainage for a building and construction contract cannot exceed 5%. An owner or owner's agent may reduce the amount of retainage and may eliminate retainage on any monthly contract payment if the owner believes that the work is progressing satisfactorily. The bill would prohibit withholding retainage for warranties or warranty work. The bill would require retainage to be released within 30 days of the completed improvement date. Retainage also would have to be held in an interest-bearing escrow account or trust account at a banking institution whose principal place of business is Minnesota.
Status: 3/26/19: (S) second reading
Related Bill: HF 878
SF 2622 – Performance Bond. Provides that broadband service providers would have to furnish a performance bond if the provider receives a grant for broadband projects and at the time the grant is awarded is under investigation or has been under investigation within the last three years by the Minnesota Public Utilities Commission for broadband service quality issues. The Commissioner of the Public Utilities Commission would determine the bond amount. The minimum bond amount would be 5% of the grant award.
Status: 3/21/19: (S) introduction and first reading; referred to Agriculture, Rural Development and Housing Policy
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SB 2737 – Postsecondary Educational Institutions. Provides that the bond required under existing law for proprietary schools would have to cover the costs to reimburse the Commission for any actual administrative costs associated with a school ceasing operations. Under existing law, the bond indemnifies any person suffering a loss as the result of any false certification, school closure, any fraud or misrepresentation used in behalf of the principal in procuring such person's enrollment in a course of instruction, including the repayment of tuition paid in advance by any student. The bill provides that the first priority for the use of surety bonds shall be given to students impacted by the proprietary school closing.
Status: 3/22/19: approved by the Governor; effective 7/1/19
NEW LAW: SB 2828 – 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. Also, the court would be allowed to accept a deposit of collateral in lieu of the bond, such as securities or a mortgage of real property. Under existing law, the bond requirement may be waived in a will or if the assets of the estate are deposited in a financial institution. The bill would grant the court additional discretion to waive the bond requirement. The bill would also require 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. Current law does not specify the bond amount. The bill would permit direct actions on the bond.
Status: 4/16/19: approved by the Governor; effective 1/1/20
CONTRACT SURETY
NEW LAW: HB 869 – Performance and/or Payment Bonds. Provides that performance and payment bonds may be required for contracts for private construction work. The bill mirrors the Little Miller Act with regard to surety qualifications and bond claim procedures. It provides that a payment bond provided for private work would be a substitution for the liens provided for a subcontractor or a materialman. The bill also provides that a copy of the bond for public and private work would have to be provided to the person requesting it within 30 days of receipt of the request. Failure to meet this timeframe would result in a liability for reasonable attorney fees and costs in any subsequent claims.
Status: 3/19/19: approved by the Governor; effective 7/1/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
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: 5/13/19: (H) second read and referred to Commerce, Consumer Protection, energy and the Environment
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: 5/6/19: (S) in Professional Registration; executive session held. Voted Do Pass.
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: 5/17/19: (S) to Fiscal Oversight
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: 5/16/19: (S) from Financial Oversight: Reported Do Pass
Related Bill: SB 371
HB 705 – 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: 5/9/19: (S) in Fiscal Oversight; executive session held. Voted Do Pass. Reported Do Pass.
Related Bill: SB 376
SB 89 – 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: 5/29/19: (S) sent to the Governor
Related Bills: HB 626, SB 147, SB 368, SB 371, SB 505
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: 5/17/19: (S) on Formal Calendar, Senate Bills for Perfection
Related Bill: HB 495
SB 147 – 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: 5/29/19: (S) sent to the Governor
Related Bills: HB 626, SB 89, SB 368, SB 371, SB 505
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: 5/17/19: (S) on Informal Calendar, Senate Bills for Perfection
Related Bills: 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: 4/17/19: (S) from Local Government and Elections: Do pass
Related Bill: HB 215
SB 368 – 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: 5/29/19: (S) sent to the Governor
Related Bills: HB 626, SB 89, SB 147, SB 371, SB 505
SB 371 – Leasing and Rental Companies. Would require a leasing or rental company for motor vehicles, trailers, boats, or outboard motors to post a $100,000 bond or letter of credit. The bond would be conditioned on compliance with the applicable laws, and it would have to indemnify persons for any loss sustained due to the licensee's acts when these acts constitute grounds for the suspension or revocation of the license. The surety's aggregate liability would be limited to the bond amount.
Status: 4/25/19: (H) in Transportation, voted Do Pass; reported Do Pass. Referred to Rules - Administrative Oversight
Related Bill: HB 626
SB 376 – Mechanical Contractors. Would enact the Missouri Statewide Mechanical Contractor Licensing Act and create the Office of Mechanical Contractors within the Division of Professional Regulation. The bill would require applicants for this license to provide proof of liability insurance in the amount of $500,000 and post a bond with each political subdivision in which work will be performed, as required by that political subdivision. Political subdivisions would not be prohibited from establishing their own local mechanical contractor's license, but would recognize a statewide license in lieu of a local license for the purposes of performing contracting work or obtaining permits to perform work within such political subdivision. The license term would be biennial.
Status: 5/17/19: (S) on Formal Calendar, Senate Bills for Perfection
Related Bill: HB 326
SB 468 – 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: 5/17/19: (H) on Informal Calendar, Senate Bills for Third Reading
Related Bill: HB 495
CONTRACT SURETY
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: 5/29/19: (S) sent to the Governor
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 105 – Occupational Licensing. Would revise an existing state license reciprocity process for out of state license applicants to provide that an occupational licensing board would be required to issue the license to qualified persons who have a substantially similar license from another state. Current law provides that the occupational licensing board has discretion to grant the license to the out of state applicant.
Status: 3/20/19: signed by the Governor; Chapter 83; effective immediately
NEW LAW: 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: 3/19/19: signed by the Governor; Chapter 65; effective 10/1/19
NEW LAW: HB 119 – Hazard Reduction Agreement Program. Would revise the amount of the bond required under a fire hazard reduction agreement. Currently, either the person conducting the work or the purchaser is required to post a bond in an amount not to exceed $6 for each 1,000 board feet. The bill provides that the bond amount may not exceed $12 for each 1,000 board feet, up to 100,000 board feet, or $6 for each additional 1,000 board feet over 100,000 board feet (log scale) or the equivalent if forest products other than logs are cut.
Status: 2/26/19: signed by the Governor; effective upon passage
NEW LAW: HB 370 – Notaries Public. Would increase the amount of the notary bond from $10,000 to $25,000.
Status: 4/3/19: signed by the Governor; Chapter 123; effective 10/1/19
NEW LAW: 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: 5/7/19: signed by the Governor; Chapter 302; effective 5/7/19
NEW LAW: SB 93 – Solar Energy Infrastructure - Decommissioning. Would subject solar energy facilities to the existing remediation law for wind energy facilities, which requires a bond in an amount determined by the Department of Environmental Quality to secure the decommissioning of a facility.
Status: 5/7/19: signed by the Governor; Chapter 304; effective 5/7/19
SB 330 – Sportsbook Operators. Would require a sportsbook operator to be licensed and post a surety bond or reserve account in an amount that the Department would determine to guarantee the sportsbook operator faithfully makes all payments required under the applicable laws and regulations. Sportsbook operators are sports betting businesses that operate on the premises of a licensed gambling activity or through an interactive sports betting platform located on the premises.
Status: 6/11/19: Veto override failed.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: LB 194 – Public Officials. Would specify that the bond requirements for city council members, the city treasurer, and municipal depositories apply to cities of the first class only. Existing law requires city council members to post a bond or obtain equivalent insurance in the amount of $1,000. City treasurers must post a bond or insurance of at least $25,000, or the treasurer may be required to give bond for double the sum of money that the city council estimates at any time to be in the treasurer's hands. The depository bond must be equal to the amount of the deposits in the depository institution, less the amount of insurance from the FDIC.
Status: 3/7/19: approved by the Governor; effective 3 months after adjournment
LB 265 – Consumer Loans. Would require lenders offering unsecured consumer loans to be licensed and to post a $50,000 bond to secure the licensee's faithful performance of its duties related to the business, and to ensure prompt payment of any judgment recovered against the licensee. The director would be authorized to require an additional bond if the original bond is exhausted or is inadequate for any reason, including the financial condition of the licensee, or for violations of the applicable law and/or regulations. The amount of any new or additional bond could not exceed $100,000.
Status: 1/28/19: in Banking, Commerce and Insurance; notice of hearing for 3/12/19
LB 373 – Wind Energy Facilities - Decommissioning. Would require county zoning regulations for a wind energy facility project to include requirements for a performance bond for each wind turbine in connection with the submission of a decommissioning plan.
Status: 5/30/19: Attorney General Opinion 19-008 to Brewer
NEW LAW: 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: 5/30/19: signed by the Governor; effective 3 months after adjournment
NEW LAW: LB 536 – Trusts. Would adopt the Uniform Directed Trust Act and require trust directors for such a trust to meet the bond requirements for trustees under existing law. The Act follows the Uniform Trust Code model, and provides that a bond is only required if the court requires a bond or the terms of the trust require a bond and the court has not dispensed with it.
Status: 3/12/19: approved by the Governor; effective 3 months after adjournment
CONTRACT SURETY
NEW LAW: 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: 5/8/19: approved by the Governor; effective 3 months after adjournment
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: AB 252 – Community-Based Living Arrangement Service Providers. Would authorize the State Board of Health to adopt regulations that would require an applicant for a certificate to be a community-based living arrangement services provider to post a surety bond equal to the operating expenses of the applicant for two months or deposit this amount in an escrow account. The bond would secure that recipients of services would continue to receive them for two months at the expense of the provider in the event that the provider becomes insolvent.
Status: 6/3/19: signed by the Governor; Chapter 348; effective 1/1/20
NEW LAW: AB 280 – Document Preparation Service Providers. Would revise the bond requirement for persons who provide document preparation services. The bill would reduce the bond amount required for individuals under existing law from $50,000 to $25,000. The bill also would establish registration requirements for business entities with employees who provide document preparation services. The bill would permit the business entity to furnish a bond on behalf of its employees instead of the employees posting individual bonds. The bond amount would range from $25,000 to $200,000 based on the number of employees that the bond covers. The conditions and other bond requirements for the business entity would mirror the requirements for individuals. Cash is accepted in lieu of a surety bond.
Status: 5/25/19: signed by the Governor; Chapter 156; effective 5/25/19
NEW LAW: AB 288 – Third Party Vehicle Registration and Titling Service Providers. Would require a person acting as a third party for the Department of Motor Vehicles to provide motor vehicle registration and titling services to be licensed and post a $50,000 bond or deposit conditioned on the licensee conducting his or her business without fraud or fraudulent representation and in compliance with the applicable law. The bond amount may be reduced for licensees that have been in business for five years or more, but the bond cannot be for less than $10,000.
Status: 6/3/19: signed by the Governor; Chapter 310; effective 10/1/19
NEW LAW: AB 364 – Certificate of Title - Manufactured Homes, Mobile Homes, or Commercial Coaches. Would authorize a person who is unable to provide information that is satisfactory to the Division that the person is entitled to a certificate of ownership to obtain a new certificate of ownership by posting a bond in an amount equal to the value of the manufactured home, mobile home or commercial coach. The bond would indemnify prior and subsequent owners or lienholders of the manufactured home, mobile home or commercial coach against any expense, loss or damage because of the issuance of the certificate of ownership, or because of any defect in or undisclosed security interest in the applicant's right or title to the manufactured home, mobile home or commercial coach or the applicant's interest in the manufactured home, mobile home or commercial coach.
Status: 6/5/19: signed by the Governor; Chapter 381; effective 1/1/20
AB 425 – Fingerprinting Service Providers. Would require fingerprinting service providers to register and post a surety bond or cash deposit for $50,000, conditioned to indemnify customers who have suffered damages resulting from the registrant or his or her agent or employee's acts or omissions in violation of the applicable law, a wrongful failure or refusal by the registrant, or an agent or employee of the registrant, to provide services under the contract, or fraud, dishonesty, negligence or other wrongful conduct of the registrant or an agent or employee, and to secure the payment of civil penalties, award of damages, or the award of attorney's fees. The surety's aggregate liability is limited to the bond amount. Notably, the bill provides that surety shall pay any final, non-appealable judgment of a court of the State that has jurisdiction, upon receipt of written notice that the judgment is final. This provision is in the existing law for individual document preparation service providers.
Status: 6/4/19: (A) no further action taken
NEW LAW: 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: 5/29/19: signed by the Governor; Chapter 224; effective 7/1/19
NEW LAW: 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: 5/25/19: signed by the Governor; Chapter 149; effective 5/25/19
NEW LAW: 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: 5/25/19: approved by the Governor; Chapter 135; effective 5/25/19
NEW LAW: 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: 6/1/19: signed by the Governor; Chapter 275; effective
NEW LAW: 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: 6/1/19: signed by the Governor; Chapter 295; effective
NEW LAW: SB 400 – Public Livestock Auction. Would revise the amount of the bond or deposit required in connection with the license for an operator of a public livestock auction. Current law requires a bond of at least $200,000, but not more than $1,000,000. The bill would require the amount of the bond to be $200,000 or the amount of bond coverage calculated for a market agency required under existing federal regulations, whichever is greater.
Status: 5/29/19: signed by the Governor; Chapter 239; effective 7/1/19
NEW LAW: SB 417 – Annual Livestock Sales. Would authorize the Department of Agriculture to issue a limited license for an annual livestock sale. The licensee would have to comply with the existing bond or other security requirements for public livestock auctions. The bill would give the Department the authority to limit the term of the bond to the time during which the sale is conducted; the Department could also accept a bond for a lower amount than what is currently required.
Status: 6/5/19: signed by the Governor; Chapter 417; effective 7/1/19
NEW LAW: SB 432 – Consumer Litigation Funding Companies. As amended, this bill would require consumer litigation funding companies to be licensed and post a surety bond in an amount not to exceed $50,000, conditioned on the licensee's compliance with the applicable law and regulations, and payment of all amounts that may be owed to any person and/or to the State.
Status: 6/5/19: signed by the Governor; Chapter 378; effective 10/1/19
NEW LAW: SB 460 – Public Administrators. Would authorize the board of county commissioners in a county with a population of less than 100,000 to abolish the office of public administrator, and instead adopt an ordinance that would allow the county to employ or contract with a person to perform the duties and functions of a public administrator. The ordinance must include a requirement for the person to post a bond or other security.
Status: 6/1/19: signed by the Governor; Chapter 270; effective 7/1/19
NEW LAW: SB 491 – Certificates of Title - Salvage Vehicles. Would reduce the amount of the bond that the Department of Motor Vehicles may require from an applicant for a certificate of title when an applicant is unable to submit documents confirming that the applicant is entitled to a salvage title. Current law requires the bond amount to be equal to 1 1/2 times the value of the vehicle. The bill would require the bond amount to be for 25% of the value of the vehicle.
Status: 5/29/19: signed by the Governor; Chapter 253; effective 7/1/19
CONTRACT SURETY
NEW LAW: AB 22 – Retainage. Would reduce amount of retainage that the Department of Transportation is authorized to withhold from 5% to 2.5% of the amount of the progress payments to the contractor. The bill also would repeal the $50,000 cap on the total amount of retainage that can be withheld in the existing law. The bill also would require a final inspection before the retainage can be released to the contractor following completion of the project.
Status: 5/14/19: approved by the Governor; effective 5/14/19
NEW LAW: SB 397 – Payment and/or Performance Bonds. Provides that the owner of a single-family residential home would have the right to request a contractor to furnish a performance and payment bond, if the contractor is not otherwise required to furnish a bond under existing law.
Status: 6/1/19: approved by the Governor; Chapter 283; effective
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 115 – Private Investigative Agencies. Would specify that the license bond required for private investigative agencies, bail recovery agents, and security services would have to be for no less than $50,000. Currently, the bond must be equal to $50,000.
Status: 6/13/19: (H) House concurs with Senate Amendment 2204s
HB 253 – Criminal Records Checks. Would prohibit an employer from including a question on any application for employment about whether the applicant has ever been arrested, charged with, or convicted of any crime or violation, or adjudicated as a juvenile delinquent. This would not apply in certain cases, including when a position would require a standard fidelity bond or equivalent bond and the applicant's conviction of a crime would disqualify the applicant from obtaining the bond.
Status: 4/18/19: (S) re-referred to Commerce
HB 474 – Fidelity Bond - Financial Institution. Would revise the fidelity bond requirement or state banks and credit unions to specify that the bond would have to be provided by an insurer licensed under the laws of the state; a foreign surplus lines insurer authorized to sell insurance in the state and licensed by any state, district or territory; or a person if the issuer unconditionally assents to the resolution of any claim or dispute involving the policy by a court located in the state and the personal jurisdiction of the courts located in the state in connection with any matter involving the policy.
Status: 6/12/19: (H) enrolled
SB 54 – Fuel Distributors. Would exempt fuel distributors from the bond requirement if they have complied with the law for the previous three consecutive years. The distributor would have to provide financial statements for the previous three years and been licensed in the state as a distributor for the previous five consecutive years to qualify for an exemption. If the distributor obtains an exemption and fails to comply with the law, the bond requirement could be re-imposed.
Status: 6/12/19: (S) enrolled
SB 77 – Animal Cruelty. Provides that an arresting officer could draw funds from the bond or security posted during an appeal to secure the costs of caring for an animal that has been confiscated from a person convicted of animal cruelty as soon as the bond or security is posted.
Status: 5/8/19: (H) removed from Consent Calendar; laid on table
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: 5/31/19: (H) enrolled
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 455 – Student Loan Servicers. As amended, the bill would require student loan servicers to post a minimum $30,000 license bond. The required bond amount, conditions and coverage would be determined through regulations. Direct actions against the bond would be permitted.
Status: 6/6/19: (A) reported out of Higher Education with amendments; second reading
Related Bill: SB 1149
AB 2904 – Home Improvement Contractors. Would require home improvement contractors to post a $50,000 surety bond or other security in connection with registration. The bond would be for the use or benefit of any consumer who has entered into a home improvement contract and incurs damages or suffers any loss arising out of the contractor's violation of the applicable law. The bill would permit direct actions on the bond, but the surety's aggregate liability would be limited to the bond amount.
Status: 3/7/19: (A) reported out of Regulated Professions; referred to Appropriations
Related Bill: SB 1326
AB 4832 – Temporary Help Services. Would increase the amount of the bond required for temporary help service providers from $1,000 to $10,000. The bill would also eliminate the waiver for the bond requirement currently available to firms that have a net worth of $100,000 or more.
Status: 1/15/19: (A) introduced and referred to Labor
AB 4860 – Remote Online 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: 5/13/19: (A) reported and referred to Appropriations
Related Bill: SB 3147
AB 4959 – Contractors. Would authorize the director of the Division of Consumer Affairs to require home restoration contractors to post a performance bond in favor of an owner, lessee, tenant, or other party to a home improvement contract for home restoration. The director would establish the bond amount through regulation. Ten days' notice would be required for cancellation or nonrenewal of the bond. The bond would be in addition to the insurance requirement under existing law.
Status: 3/7/19: (A) reported and referred to Appropriations
Related Bill: SB 1868
NEW LAW: 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: 4/29/19: approved by the Governor; Chapter 65; effective 90 days from enactment (7/29/19)
AB 5141 – Private Career Schools - Recovery Fund. Would require private career schools to register with the Commissioner of Labor and Workforce Development and furnish a performance bond in an amount that the Commissioner would determine. The bill would establish a recovery fund for students attending these private career schools. The bill would establish a recovery fund for students attending private career schools. The Department of Labor and Workforce Development (Department) would have to pay claims from the performance bond "whenever possible." The bill provides that when the bond is insufficient to pay all approved claims, the Department would pay claims from the recovery fund.
Status: 3/7/19: (A) reported out of Higher Education; second reading
AB 5269 – Debt Adjusters. Would require for-profit debt adjusters to post a license bond or other security in an amount not less than $50,000 for the first office and $25,000 for each additional office for the first 250 customers and for the first $250,000 in customer funds that the licensee holds. The bond amount also could be increased based on the number of people for whom the debt adjuster provides services by $25,000 for each 250 additional customers and $25,000 for each additional $250,000 in customer funds that the licensee holds. The bond would be conditioned on compliance with the law. The bill would permit directions on the bond. The bond would have to be in place for two years after the licensee ceases to provide services in the state.
Status: 5/13/19: (A) introduced and referred to Regulated Professions
Related Bill: SB 3499
AB 5523 – Used Motor Vehicle Dealers. Would require used motor vehicle dealers to be licensed and post a $50,000 bond, conditioned on compliance with the law and that the dealer shall not practice fraud or make fraudulent representations in the sale or lease of a motor vehicle. Direct actions against the bond would be permitted. The bill also would establish a recovery fund, which would kick in after the bond is exhausted. The recovery fund would pay a maximum of $25,000 to any single claimant and a maximum of $75,000 in total claims against a dealer. If a dealer does not have any claims against its bond or the recovery fund for 3 consecutive years, the dealer could either: (1) only pay into the recovery fund and be exempt from posting the bond; or (2) post a $100,000 surety bond in lieu of participating in the recovery fund, in which case the surety's liability would be limited to $20,000 for any single claimant and the surety's aggregate liability would be limited to $100,000. Existing law requires all dealers to post a $10,000 bond to secure compliance with the trade practices law, which still would have to be posted as well.
Status: 6/6/19: (A) introduced and referred to Consumer Affairs
Related Bill: SB 3656
SB 1149 – Student Loan Servicers. As amended, the bill would require student loan servicers to post a minimum $30,000 license bond. The required bond amount, conditions and coverage would be determined through regulations. Direct actions against the bond would be permitted.
Status: 6/6/19: (A) reported out of Higher Education with amendments; second reading
Related Bill: AB 455
SB 1326 – Home Improvement Contractors. Would require home improvement contractors to post a $50,000 surety bond or other security in connection with registration. The bond would be for the use or benefit of any consumer who has entered into a home improvement contract and incurs damages or suffers any loss arising out of the contractor's violation of the applicable law. The bill would permit direct actions on the bond, but the surety's aggregate liability would be limited to the bond amount.
Status: 2/1/18: (S) introduced and referred to Commerce
Related Bill: AB 2904
SB 1868 – Contractors. Would authorize the director of the Division of Consumer Affairs to require home restoration contractors to post a performance bond in favor of an owner, lessee, tenant, or other party to a home improvement contract for home restoration. The director would establish the bond amount through regulation. Ten days' notice would be required for cancellation or nonrenewal of the bond. The bond would be in addition to the insurance requirement under existing law.
Status: 12/3/18: (S) referred to Budget and Appropriations
Related Bill: AB 4959
NEW LAW: SB 2969 – Fantasy Sports Contests. Would revise existing law for fantasy sports operators who currently must segregate participants' funds from operational funds and also must maintain a reserve account, a bond, an irrevocable letter of credit, or a combination thereof in the amount of the deposits in participants' accounts. The bill provides that the operator could either maintain the segregated account or instead maintain the reserve account, bond, or letter of credit.
Status: 1/31/19: approved by the Governor; P.L. 2019, c.11
SB 3147 – Electronic Notaries. Would authorize the use of remote online notaries public to provide electronic notarizations. The bill provides that the state treasurer could require the notary to post a bond.
Status: 10/22/18: (S) introduced; referred to Commerce
Related Bill: AB 4860
SB 3499 – Debt Adjusters. Would require for-profit debt adjusters to post a license bond or other security in an amount not less than $50,000 for the first office and $25,000 for each additional office for the first 250 customers and for the first $250,000 in customer funds that the licensee holds. The bond amount also could be increased based on the number of people for whom the debt adjuster provides services by $25,000 for each 250 additional customers and $25,000 for each additional $250,000 in customer funds that the licensee holds. The bond would be conditioned on compliance with the law. The bill would permit directions on the bond. The bond would have to be in place for two years after the licensee ceases to provide services in the state.
Status: 3/4/19: (S) from Commerce with amendments; second reading
SB 3656 – Used Motor Vehicle Dealers. Would require used motor vehicle dealers to be licensed and post a $50,000 bond, conditioned on compliance with the law and that the dealer shall not practice fraud or make fraudulent representations in the sale or lease of a motor vehicle. Direct actions against the bond would be permitted. The bill also would establish a recovery fund, which would kick in after the bond is exhausted. The recovery fund would pay a maximum of $25,000 to any single claimant and a maximum of $75,000 in total claims against a dealer. If a dealer does not have any claims against its bond or the recovery fund for 3 consecutive years, the dealer could either: (1) only pay into the recovery fund and be exempt from posting the bond; or (2) post a $100,000 surety bond in lieu of participating in the recovery fund, in which case the surety's liability would be limited to $20,000 for any single claimant and the surety's aggregate liability would be limited to $100,000. Existing law requires all dealers to post a $10,000 bond to secure compliance with the trade practices law, which still would have to be posted as well.
Status: 5/13/19: (S) introduced and referred to Commerce
Related Bill: AB 5523
SB 3709 – Used Motor Vehicle Dealers. Would enact the Used Motor Vehicle Dealer Licensing Act and establish the State Board of Used Motor Vehicle Dealers. There is no actual mention of a bond or recovery fund in this particular bill as introduced.
Status: 5/16/19: (S) introduced and referred to Commerce
SB 3825 – Private Career Schools - Recovery Fund. Would require private career schools to register with the Commissioner of Labor and Workforce Development and furnish a performance bond in an amount that the Commissioner would determine. The bill would establish a recovery fund for students attending these private career schools. The bill would establish a recovery fund for students attending private career schools. The Department of Labor and Workforce Development (Department) would have to pay claims from the performance bond "whenever possible." The bill provides that when the bond is insufficient to pay all approved claims, the Department would pay claims from the recovery fund.
Status: 5/30/19: (S) introduced and referred to Education
Related Bill: AB 5141
CONTRACT SURETY
AB 1308 – Bid Bonds; Performance Bonds; eBidding. Would require the use of electronic bidding on public works contracts exceeding $5 million, and would require regulations to be adopted to establish the bidding procedures. The regulations would have to set forth the required components of the bid package, which would have to include a bid bond and a performance bond.
Status: 5/16/19: (A) reported out of State and Local Government with amendments; second reading
Related Bill: SB 3137
AB 4535 – P3; Payment Bond. Would authorize state and local governmental entities to enter into a P3 agreement for energy-related infrastructure projects. The bill provides that if no public fund has been established for the financing of the project, the governmental entity could require the private entity to post or cause to be posted, a payment bond. The private entity also would have to demonstrate its bonding capacity for the development and operation of the project on its application. The bill would create the Energy Public-Private Partnership Unit that would be responsible for the formulation and execution of a comprehensive statewide policy for P3 agreements that facilitate the development of these projects and would be responsible for the development, promotion, coordination, oversight, and approval of P3 agreements.
Status: 5/16/19: (A) from Science, Innovation and Technology as amended; referred to Appropriations
Related Bill: SB 2958
AB 5374 – Payment Bond. Would require a public utility or cable television company to post a payment bond that is payable to the contracting entity for the estimated cost of the ancillary accommodation work performed for a utility or cable television facility that is moved in connection with an infrastructure project. The amount would be determined by the contracting entity.
Status: 5/16/19: (A) introduced and referred to Telecommunications and Utilities
SB 2958 – P3; Payment Bond. Would authorize state and local governmental entities to enter into a P3 agreement for energy-related infrastructure projects. The bill provides that if no public fund has been established for the financing of the project, the governmental entity could require the private entity to post or cause to be posted, a payment bond. The private entity also would have to demonstrate its bonding capacity for the development and operation of the project on its application. The bill would create the Energy Public-Private Partnership Unit that would be responsible for the formulation and execution of a comprehensive statewide policy for P3 agreements that facilitate the development of these projects and would be responsible for the development, promotion, coordination, oversight, and approval of P3 agreements.
Status: 5/16/19: (S) from Environment and Energy as amended; to Budget and Appropriations
Related Bill: AB 45357
AB 3137 – Bid Bonds; Performance Bonds; eBidding. Would require the use of electronic bidding on public works contracts exceeding $5 million, and would require regulations to be adopted to establish the bidding procedures. The regulations would have to set forth the required components of the bid package, which would have to include a bid bond and a performance bond.
Status: 5/16/19: (A) reported out of State and Local Government with amendments; second reading
Related Bill: AB 1308
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SB 41 – Medicaid Services, Fraud and Due Process. Would permit a Medicaid provider or subcontractor to obtain the release of a payment that was suspended because the provider or subcontractor is the subject of a referral based on a determination of a credible allegation of fraud for services previously rendered if the provider or subcontractor posts a surety bond for the amount of the suspended payment.
Status: 4/4/19: signed by the Governor; Chapter 215; effective 1/1/20
NEW LAW: SB 271 – Prescription Drugs. Would require prescription drug manufacturers, outsourcing facilities, repackagers, and third-party logistics providers to comply with the bond requirements in existing law for nonresident pharmacies and wholesale drug distributors. The law requires a surety bond or other security to secure payment of any administrative or judicial penalties that may be imposed, and any penalties or costs required by regulations or disciplinary action. The bond may be waived under existing law.
Status: 3/28/19: signed by the Governor; Chapter 98; effective 6/14/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
AB 439 – Municipal Depositories. Would allow savings banks, savings and loan associations, and credit unions to act as depositories for public funds. Under existing law, depositories for public funds must post a surety bond or other security in an amount the comptroller determines is sufficient to secure the public funds.
Status: 1/9/19: (A) introduced and referred to Banks
Related Bill: SB 1586
AB 1617 – Marijuana Retailers. Would authorize the use of recreational marijuana and require retailers to post a surety bond in an amount equal to two months of a cultivation facility's anticipated retail marijuana excise tax that the bill would impose.
Status: 5/24/19: (A) in Codes; amended and recommitted to Codes; Print Number 1617A
Related Bill: SB 1527
AB 1668 – Election Recounts. Would require candidates and voters requesting a recount to post a bond or other security in an amount that the jurisdiction where the recount is occurring would determine to secure the costs of the recount.
Status: 2/22/19: (A) in Election Law; amended, Print Number 1668A
AB 2185 – Towing Companies. Would increase the bond amount from $5,000 to $25,000. The bill provides that the bond amount could be increased up to $250,000 following a hearing to determine whether the bond should be increased. An additional bond could be required for violations of the law.
Status: 1/22/19: (A) introduced and referred to Cities
AB 2884 – Fidelity Bond. Would prohibit commercial crime insurance policies from excluding coverage for losses that an employee caused if he or she had been convicted of a criminal offense, and the employer knew about the conviction prior to the loss and the employer had considered the factors set forth in the existing Corrections Law for determining whether to hire the person. Violating this provision would be deemed an unfair method of competition or an unfair or deceptive act and practice.
Status: 1/28/19: (A) introduced and referred to Insurance
AB 6655 – Automobile Brokers. Would revise the existing law for automobile brokers to specify that brokers for new vehicles would be subject to the law, including the licensing and bonding requirements. Current law requires a $100,000 bond conditioned on the payment of all valid bank drafts, including checks, drawn for the purchase of motor vehicles and safekeeping of all customer deposits related to the sale of a motor vehicle between the time of receipt and the transfer of a good title to the customer.
Status: 6/11/19: (A) amended in Consumer Affairs and Protection
Related Bill: SB 4364
AB 7191 – Debt Collection Agencies. Would require debt collection agencies to be licensed and post a surety bond or other security in an amount that would be based on the number of persons the licensee employs, ranging from $10,000 to $75,000. The bond would secure the licensee's compliance with the applicable law and the payment of all costs and penalties.
Status: 4/11/19: (A) introduced and referred to Consumer Affairs and Protection
Related Bill: SB 2343
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: 5/24/19: (S) in Finance; amended and recommitted to Finance; Print Number 1527A
Related Bill: AB 1617
SB 1586 – Municipal Depositories. Would allow savings banks, savings and loan associations, and credit unions to act as depositories for public funds. Under existing law, depositories for public funds must post a surety bond or other security in an amount the comptroller determines is sufficient to secure the public funds.
Status: 1/15/19: (S) introduced and referred to Local Government
Related Bill: AB 439
SB 2022 – Public Vessels Carrying Passengers. Would require public vessels to obtain a liability insurance policy or a surety bond in connection with a certificate to operate and carry passengers. The amount of the bond or insurance policy would have to be equal to at least $1 million per occurrence for injury to or death of any person arising out of the negligent operation of the vessel.
Status: 1/18/19: (S) introduced and referred to Cultural Affairs, Tourism, Parks and Recreation
SB 2343 – Debt Collection Agencies. Would require debt collection agencies to be licensed and post a surety bond or other security in an amount that would be based on the number of persons the licensee employs, ranging from $10,000 to $75,000. The bond would secure the licensee's compliance with the applicable law and the payment of all costs and penalties.
Status: 1/24/19: (S) introduced and referred to Consumer Protection
SB 3231 – Massage Therapy Businesses. Would require massage therapy businesses to be licensed and provide evidence of obtaining a bond or liability insurance. The bill does not specify any further bonding requirements.
Status: 5/30/19: (S) reported and committed to Finance
SB 3604 – Energy Services Companies. Would permit municipalities to participate in community choice energy aggregation programs to procure electric and/or gas supply services from an energy services company. The energy services company could be required to post a performance bond as a condition of its contract with the municipalities.
Status: 2/11/19: (S) introduced and referred to Energy and Telecommunications
SB 3625 – Rate and Form Filings. Would exempt commercial specialty lines of insurance from the existing law's rate and form filing requirements. The exemption would apply to surety and fidelity.
Status: 2/11/19: (S) introduced and referred to Insurance
SB 3643 – Theft Protection Warranty Providers. Would regulate theft protection program warranties for motor vehicles, requiring providers of such warranties to meet financial security requirements. The provider would have to obtain a reimbursement insurance policy, or maintain a funded reserve account and post a bond or other security in an amount not less than 5% of the gross consideration received, less claims paid, on the sales for all theft protection program warranties issued and inforce. The minimum bond or other security amount would be $25,000.
Status: 2/11/19: (S) introduced and referred to Insurance
SB 4364 – Automobile Brokers. Would revise the existing law for automobile brokers to specify that brokers for new vehicles would be subject to the law, including the licensing and bonding requirements. Current law requires a $100,000 bond conditioned on the payment of all valid bank drafts, including checks, drawn for the purchase of motor vehicles and safekeeping of all customer deposits related to the sale of a motor vehicle between the time of receipt and the transfer of a good title to the customer.
Status: 6/11/19: (S) amended in Finance
Related Bill: AB 6655
SB 4386 – Immigration Assistance Providers. Would require immigration assistance providers to obtain a license from the Department of State. The bill would direct the Secretary of State to enforce the existing law's surety bond and licensing application requirements, including posting information on the Department's website demonstrating that the immigration provider is in compliance with the bond requirement. The bill would prohibit immigration providers from operating without a bond in place.
Status: 3/11/19: (S) introduced and referred to Consumer Protection
SB 4608 – Depository Institutions. Would revise the existing law for depositories of public funds to permit local governments to use savings banks, savings and loan associations, and credit unions as depositories for public funds. These institutions would be subject to the existing bond requirements for such depositories.
Status: 3/15/19: (S) introduced and referred to Local Government
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: 6/4/19: (A) reported referred to Ways and Means
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 2212 – Retainage. Would repeal the existing retainage law for public works contracts under which contractors may withhold not more than 5% of the progress payment to a subcontractor, unless the subcontractor does not provide a bond, in which case the retainage may be not more than 10%. The bill also would mandate that contractors pay their subcontractors upon completion of their work regardless of whether the public owner has paid the contractor.
Status: 1/22/19: (A) introduced and referred to Governmental Operations
AB 2568 – Infrastructure. Provides for the creation of infrastructure financing districts to finance public facility projects that have a community‑wide significance.
Status: 1/23/19: (A) introduced and referred to Ways and Means
AB 3250 – Payment and/or Performance Bonds; Retainage. Would revise the retainage requirements for state and municipal public works projects so that the public owner would withhold the retainage from the subcontractor instead of the contractor. The bill provides that the public owner would pay the subcontractors directly instead of the contractors paying the subcontractors.
Status: 1/29/19: (A) introduced and referred to Governmental Operations
AB 3558 – Retainage. Would cap the amount of retainage that may be withheld on private construction projects at an amount not more than 5% of the contract amount. Currently, the owner and the parties to the contract may agree to a reasonable amount of retainage. The bill also provides that the contractor may obtain his or her final payment of the project when it reaches substantial completion instead of the existing requirement to release the final payment when all obligations under the contract are complete.
Status: 1/29/19: (A) introduced and referred to Economic Development, Job Creation, Commerce and Industry
Related Bill: SB 981
AB 4174 – Payment and/or Performance Bonds. Would create a public library revolving loan program for the University of the State of New York. As a condition of the loan agreement between the library or library system and the Commissioner of Education, any person or entity contracting to perform work on an approved project would be required to furnish an undertaking or a surety bond to guarantee the faithful performance of the project. A labor and/or material bond also could be required.
Status: 2/1/19: (A) introduced and referred to Libraries and Education Technology
AB 4490 – Bond Guarantee Program; Minority Business; Veteran-Owned Business; Women-Owned Business. Would revise the existing law for contracting programs for minority- and women-owned businesses to include businesses owned by honorably discharged veterans. The existing law for these programs includes bond guarantee and bonding technical assistance programs.
Status: 2/4/19: (A) introduced and referred to Veterans Affairs
AB 4722 – Bond Threshold; Payment and/or Performance Bonds. Would establish a $250,000 threshold at which performance and payment bonds would be required for contracts for the State University of New York at Stony Brook. The letting agency would have to require deposits, bonds and security with the submission of bids or request for proposals, the award of contracts and the performance of work as it determines to be in the public interest and for the protection of the State, the State University, the State University Construction Fund and the letting agency.
Status: 2/5/19: (A) introduced and referred to Higher Education
AB 4826 – Infrastructure; P3s. Would create the New York State Infrastructure Development Bank to provide financial assistance to energy, environmental, telecommunications, or transportation infrastructure projects. Eligible entities for receiving assistance would include individuals, corporations, partnerships (including P3s), joint ventures, trusts, the state or other governmental entity, including a political subdivision or any other instrumentality of the state or a revolving fund.
Status: 2/5/19: (A) introduced and referred to Banks
Related Bill: SB 2324
AB 5139 – Contract Bundling. Would require each state contract to avoid unnecessary and unjustified bundling of contract requirements that precludes small and certified women- and minority-owned business participation in procurements as prime contractors.
Status: 2/7/19: (A) introduced and referred to Governmental Operations
AB 5658 – P3s. Would prohibit state agencies from entering into a P3 agreement unless the state agency has adopted regulations to establish standards for these P3s. This requirement would apply to a P3 in which private funding exceeding $500,000 is made available for a public capital project, a public program or to underwrite the cost of public personnel. The standards would have to include a cost benefit analysis of the P3 proposal, a review of the P3's impact on the state agency's existing policies and priorities, procedures on the advertisement and solicitation of bids for competitive bidding, a minimum of 45 days' notice before entering into a P3, an opportunity for public comment, and public disclosure of the private partner's recent campaign contributions to state elected offices.
Status: 2/14/19: (A) introduced and referred to Ways and Means
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
NEW LAW: 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: 4/12/19: signed by the Governor; Chapter 58; effective immediately
SB 2233 – Bond Waiver; Minority Businesses; Small Businesses. Would allow the bond requirements in the Little Miller Act to be waived for small businesses and minority‑ or women‑owned businesses when the contract is less than $500,000. The bond threshold under current law is $100,000 for contracts subject to the multiple award requirements of the Wicks Act, and $200,000 for contracts that are not subject to the multiple award requirements.
Status: 1/23/19: (S) introduced and referred to Finance
SB 2324 – Infrastructure; P3s. Would create the New York State Infrastructure Development Bank to provide financial assistance to energy, environmental, telecommunications, or transportation infrastructure projects. Eligible entities for receiving assistance would include individuals, corporations, partnerships (including P3s), joint ventures, trusts, the state or other governmental entity, including a political subdivision or any other instrumentality of the State or a revolving fund.
Status: 1/24/19: (S) introduced and referred to Finance
SB 3589 – P3s. Would authorize the creation of P3s for the deployment of broadband. The P3 would be comprised of state and local entities partnering with telecommunications providers, technology companies, telecommunication unions, community-based organizations and relevant private sector entities. The P3 would have to develop a plan for the deployment of broadband services and identify P3 projects to meet the deployment goals.
Status: 2/11/19: (S) introduced and referred to Internet and Technology
SB 5498 – 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: 5/3/19: (S) introduced and referred to Finance
Related Bill: AB 574
SB 6418 – Payment and/or Performance Bonds; Small Business. Would create a small business mentoring program for construction contracting for the New York City Department of Design and Construction. 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 term of nine years initially, and then an additional four years if the small business successfully completed the program.
Status: 6/10/19: (S) introduced and referred to Rules
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 668 – Fidelity. Would allow the State Board of Community Colleges and the board of trustees for any community college to obtain an insurance policy in lieu of the bond required under existing law for state employees and the employees of a community college that handle funds or property.
Status: 5/2/19: (S) referred to Committee on Rules and Operations of the Senate
Related Bill: SB 436
HB 759 – Electronics Recyclers. Would require facilities that recover or recycle electronics to furnish financial assurance to secure that funds would be available for cleanup, decontamination, and remediation of a property that has been contaminated as a result of the facility's activities, including the removal and proper disposal of covered devices. A surety bond or other security would be accepted to meet the requirement.
Status: 4/16/19: (H) introduced and referred to Environment; if favorable, then Rules, Calendar, and Operations of the House
HB 806 – Homeowners' Associations. Would require managers for a lot owners or unit owners' association to be covered by a fidelity bond in an amount at least equal to the annual budgets of all of their clients, but not to exceed $2 million. The bond would have to cover the manager and its employees and would have to protect the funds the manager or its employees' custody. Any lot owner or unit owners' association with annual assessments for common expenses of $25,000 or more would have to obtain a "crime and fidelity insurance" equal to 125% of the unit owners' association annual operating budget, but not more than $1 million. The bond would have to insure the association against losses resulting from theft or dishonesty that the officers and members of its executive board or its employees committed.
Status: 5/2/19: (S) referred to Committee on Rules and Operations of the Senate
HB 919 – Receivers. Would revise the existing requirements for receivers to post a bond to eliminate a requirement that two sufficient sureties must provide the bond. The bill would require the bond to be issued by a corporate surety. Cash bonds also would be accepted.
Status: 4/22/19: (H) introduced and referred to Judiciary; if favorable, Rules, Calendar, and Operations of the House
Related Bill: SB 364
SB 313 – Subdivisions. Would revise the requirements for posting a subdivision bond or other security to specify that term of the security would be limited to one year initially, unless the developer determines that the improvements would require a longer term. The bill provides that the security could be extended provided that the extension only would be for a duration necessary to complete the required improvements. Under existing law, the security is extended until the subdivision improvements are completed. Under current law, the bond or security cannot exceed an amount equal to 125% of the estimated costs of completion for the improvement. The bill would allow the city or county to determine the amount of the performance guarantee or use a cost estimate from the developer. The reasonably estimated cost of completion would have to include 100% of the costs for labor and materials. The bill provides that the additional 25% allowed would include inflation and all costs of administration regardless of how such fees or charges are denominated.
Status: 5/9/19: (H) passed first reading; referred to Rules, Calendar, and Operations of the House
SB 315 – Hemp Handlers. Would require hemp handlers to be licensed and post a bond for at least $25,000, conditioned on meeting all financial obligations under the handler's contracts with hemp cultivators. The bill would allow hemp cultivators to make direct actions on the bond.
Status: 6/11/19: (S) from Judiciary: Reported favorably with substitute; adopted on Senate floor. Re-referred to Finance.
SB 364 – Receivers. Would revise the existing requirements for receivers to post a bond to eliminate a requirement that two sufficient sureties must provide the bond. The bill would require the bond to be issued by a corporate surety. Cash bonds also would be accepted.
Status: 5/7/19: (H) passed first reading; referred to Rules, Calendar, and Operations of the House
Related Bill: HB 919
SB 436 – Fidelity. Would allow the State Board of Community Colleges and the board of trustees for any community college to obtain an insurance policy in lieu of the bond required under existing law for state employees and the employees of a community college that handle funds or property.
Status: 4/9/19: (S) withdrawn from Rules and Operations of the Senate and re-referred to Education and Higher Education
Related Bill: HB 668
CONTRACT SURETY
HB 158 – Payment and/or Performance Bonds. Would eliminate the requirement for the Department of Transportation, the University of North Carolina, and the Department of Administration to issue an annual report to the legislature on projects that these agencies let without a performance or payment bond to determine the number of defaults, the cost to complete the projects, and each contract price. These agencies only would have to continue to monitor these issues as provided under existing law.
Status: 3/14/19: (S) referred to Rules and Operations of the State
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 1219 – Public Adjusters. Would require public adjusters to be licensed and to obtain a bond or insurance for a minimum of $20,000. The bond would be for the use and benefit of the insurance commissioner for insureds that have remitted fees, retainers, compensation, deposits, or other things of value to the public adjuster in the course of his or her business. The bill would require 60 days' notice to cancel the bond.
Status: 4/8/19: signed by the Governor; effective 8/1/19
NEW LAW: HB 1291 – Fleet Trailer Registrations. Would eliminate the process for issuing plates to an owner of a fleet of trailers that are operated, offered for lease, or rented to the public. With the elimination of this process, the required bond would also be eliminated. Current law provides that a bond may be posted in lieu of paying the registration fees for the full six years for the registration term for the plates.
Status: 3/22/19: signed by the Governor; effective 8/1/19
NEW LAW: SB 2093 – Money Brokers and Collection Agencies. Would increase the amount of the bonds required of money brokers and collection agencies to $50,000. Existing law requires money brokers to maintain a $25,000 bond and collection agencies to maintain a $20,000 bond.
Status: 3/14/19: signed by the Governor; effective 8/1/19
NEW LAW: SB 2102 – Discount Medical Plan Organizations. Would require discount medical plan organizations to register and post a bond of at least $35,000. The bond would be for the insurance commissioner's discretionary use to protect the financial interests of plan members. The bond would not be subject to a levy from any judgment creditor or other claimant of the organization.
Status: 4/23/19: signed by the Governor; effective 8/1/19
CONTRACT SURETY
NEW LAW: HB 1356 – Bond Threshold. Would increase the state bond threshold from $150,000 to $250,000. The bill also would increase other procurement thresholds related to public bidding and obtaining plans from private architects and engineers from $150,000 to $250,000.
Status: 4/24/19: signed by the Governor; filed with Secretary of State; effective 8/1/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 115 – Occupational Regulations. In the following three years, 2020 to 2022, the state agencies must reduce regulatory restrictions by 30%, which is at the rate of 10% per year. If the required reductions have not been achieved according to the schedule, the state agency may not adopt any new regulatory restrictions unless it simultaneously removes two other regulatory restrictions.
Status: 3/12/19: (H) read second time; referred to State and Local Government
HB 194 – Sports Wagering. Would require sports gaming agents to be licensed and post a surety bond in an amount determined by the State Lottery Commission. The bond would guarantee that the licensee makes all required payments under the law and regulations.
Status: 4/10/19: (H) read second time; referred to Finance
HB 263 – Occupational Regulations. IWould prohibit a person from being disqualified from pursuing, practicing, or engaging in any occupation for which a license is required solely or in part because of a prior conviction of a crime, unless the crime directly relates to the duties and responsibilities for the licensed occupation. The bill would require state licensing authorities to revise their existing license requirements to list the criminal convictions that would disqualify a license applicant to meet this standard. State license authorities would be prohibited from using terms such as "moral turpitude" and "good character." State licensing authorities also could not consider a license applicant's arrests without a conviction. The bill would revise existing licensing laws concerning criminal convictions to require compliance with this process and to eliminate references to moral turpitude and good character requirements.
Status: 6/4/19: (H) referred to Commerce and Labor
SB 1 – Occupational Regulations. Would revise the existing law for reviewing all state regulations to establish additional procedures for eliminating regulatory restrictions. Under existing law, regulations have to be evaluated for whether a license bond is required, but there is not a requirement to determine its restrictiveness in this review process for state agencies. State agencies would have to amend or rescind any rules that are identified to have regulatory restrictions to achieve a 30% reduction according to the schedule set forth in the bill. Agencies failing to meet this requirement would not be permitted to adopt any new regulatory restrictions unless it simultaneously removes two or more existing regulatory restrictions until a 30% reduction is achieved. Agencies would be prohibited from merging regulations to achieve this requirement. The state would be limited in the number of regulatory restrictions that may be effective at any one time to 70% of the aggregate total of regulatory restrictions identified by all state agencies. No agency could adopt a regulation if it would cause the state to exceed this limit. Agencies would have to determine whether a regulation includes a restriction. The bill provides that if the regulation includes such words as "shall," "must," "require," "shall not," "may not," and "prohibit," it likely would be a restriction. A rule of law, phrased in "indicative mood," also may constitute a regulatory restriction.
Status: 5/14/19: (H) referred to State and Local Government
CONTRACT SURETY
HB 13 – Performance Bond. Would create a residential broadband expansion funding program for municipalities and townships acting as project sponsors for the construction of broadband infrastructure. The project sponsor could require a performance bond or other security in an amount that the municipality or township's legislative authority requires to secure the completion of the construction portion of the broadband infrastructure project.
Status: 5/21/19: (H) read second time; referred to Finance
HB 218 – P3s; Payment and/or Performance Bonds. Would authorize state agencies, state institutions of higher education, counties, townships, municipal corporations, school districts, community schools, STEM schools, and college‑preparatory boarding schools to enter into P3s for public facility projects. For projects that include a construction services component, the P3 agreement would have to include requirements for a performance bond and payment bond in an amount that the contracting authority would determine.
Status: 4/30/19: (H) read second time; referred to State and Local Government
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 1642 – Alcoholic Beverages. Would require wine and spirits wholesalers and beer distributors that are responsible for collecting and remitting alcohol excise taxes on behalf of the manufacturer, importer or broker to meet the existing law's tax bond requirements. The law requires a bond in an amount that the Tax Commission will determine based on the licensee's tax liability. The minimum bond amount is $1,000. The bill also would require wineries that are maintaining a winemaker self-distribution license and a winery maintaining a direct wine shipper's permit under existing law to post this tax bond as well.
Status: 4/11/19: (S) Business, Commerce and Tourism Report: Do pass. Committee Report filed
HB 1972 – Motor Vehicles. Would transfer certain duties from the Corporation Commission to the Department of Public Safety. This shift of responsibilities would impact the regulation of motor carriers and appears to eliminate the bond required of enforcement officers. If enacted, we would need to update our records to reflect the obligee change.
Status: 4/9/19: (S) from Transportation: Do pass as substituted. Title stricken. Emergency clause stricken.
Related Bill: SB 687
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: 4/11/19: (H) Rules Committee Report: Do pass, as amended. Enacting clause stricken.
NEW LAW: SB 720 – Small Loan Lenders. As amended, this bill would require small loan lenders to be licensed and post a surety bond or irrevocable letter of credit for $25,000 for each location. The maximum bond amount would be $200,000. The bond would be payable to the Department of Consumer Credit for the benefit of any person who is injured pursuant to a small loan by the licensee's fraud, misrepresentation, breach of contract, financial failure or violation of the applicable law. The bill would permit direct actions on the bond. The bill also would require the bond to be in place for at least three years after the license is surrendered, revoked, or it expires.
Status: 4/22/19: approved by the Governor; effective 11/1/19, operative 8/1/20
NEW LAW: 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: 5/9/19: approved by the Governor; effective 1/1/20
NEW LAW: 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: 5/2/19: approved by the Governor; Chapter 294; effective 11/1/19
CONTRACT SURETY
NEW LAW: 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: 5/28/19: signed by the Governor; effective 11/1/19
Related Bill: SB 762
NEW LAW: HB 2305 – Payment and/or Performance Bonds. As amended, this bill would revise the Little Miller Act to provide that a person who is owed any sum for labor, material or repair to machinery or equipment, furnished on a public works project could file a claim in lieu of bringing an action on the bond. Existing law provides that no action can be brought on the bond after one year from the day on which the last of the labor was performed or material or parts furnished for which the claim is made. The bill provides an exception to this limit if a prior claim has been filed within one year from the day on which the labor was performed or material or parts furnished.
Status: 5/16/19: signed by the Governor; Chapter 407; effective 11/1/19
NEW LAW: HB 2666 – Construction Manager; Payment and/or Performance Bonds; Retainage. Would revise the requirements for political subdivisions to use construction managers to specify that the political subdivision would have the option, if it is included in the guaranteed maximum price, to require the construction manager to provide performance, payment and maintenance bonds or only a payment bond in an amount equal to 100% of the value of the work, excluding the construction manager's fee, general conditions, reimbursements and insurances. The bill also provides that the construction manager would be authorized to require bonds from the subcontractors or suppliers in an amount equal to 100% of the value of their bid packages for subcontractors or suppliers that are not subject to the bonding requirements under the Little Miller Act. The bonding requirements would have to be specified in the bidding documents. Political subdivisions would be allowed to withhold retainage from the construction manager's progress payments as provided under the existing retainage law.
Status: 5/6/19: signed by the Governor; Chapter 299; effective
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: 5/2/19: (S) Conference granted, Senate conferees named
Related Bill: HB 1114
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 2454 – Occupational Licensing. Would allow a professional licensing board to issue a license to an out-of-state applicant if he or she is licensed or otherwise authorized in another state to engage in the same occupation or profession, pay the license fee, and certify that he or she is seeking to engage in the occupation or profession within the Eastern Oregon Border Economic Development Region. Applicants granted licenses or other authorization under this process would have to meet all Oregon standards not later than two years following the date of initial granting of the license or other authorization.
Status: 5/20/19: (S) referred to Rules by order of the President
NEW LAW: HB 2466 – Homeowners' Associations. As amended, this bill would require the homeowners' associations for certain classes of planned communities and unit owners' associations to obtain a fidelity bond in an amount that is at least equal to the funds that the association maintains under existing law and any obligations of the United States that the association has purchased. The bill provides that the bond would have to provide coverage for all persons with access to association funds, including directors, officers, employees, managing agents and employees of a management company or other entity with which the association contracts, as well as computer fraud and funds transfer fraud.
Status: 5/6/19: signed by the Governor; Chapter 66; effective 1/1/20
NEW LAW: HB 2913 – Possessory Liens on Motor Vehicles. Would remove the requirement for a person to have a surety bond in effect before making, altering, repairing, transporting, storing, providing services for, supplying materials for or performing labor in connection with a motor vehicle. The repeal would be effective only from the effective date of the bill, if enacted, until July 1, 2020, at which time the bond requirement would be reinstated.
Status: 5/3/19: signed by the Governor; Chapter 056; effective upon passage; however, Section 2 is effective 7/1/20.
HB 3193 – Wage Claims on Contractor Bonds. As amended, the bill would allow a wage claimant to recover unpaid wages from the contractor's license bond, or by obtaining a final order issued by the Bureau of Labor and Industries. It also would revise the penalty provisions for residential contractors to permit a non-owner claimant to recover more than the current $3,000 limit paid for a non-owner's claim if the contractor is required to post a larger bond as provided in existing law to pay claims. The increase of the limit would be in proportion to the increased bond amount.
Status: 6/13/19: (S) President signed
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: 6/13/19: (H) in Rules; public hearing held
SB 279 – Student Loan Servicers. Would require student loan servicers to be licensed and post a surety bond or irrevocable letter of credit in an amount that will be determined through regulations.
Status: 4/10/19: (S) Judiciary recommendation: Do pass with amendments and refer to Ways and Means. Referred to Ways and Means by order of the President.
SB 792 – Motor Vehicle Dismantlers. Would increase the amount of the bond or letter of credit for motor vehicle dismantlers from $10,000 to $100,000.
Status: 6/14/19: (S) in Joint Committee on Ways and Means; work session scheduled
CONTRACT SURETY
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: 6/13/19: (S) carried over to 6/17/19 by unanimous consent
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 178 – Natural Gas Tax. Would impose a tax on the extraction of natural gas in Pennsylvania. The bill would authorize the Department of Revenue (Department) to require a surety bond from nonresident natural persons, or from any foreign entities, not authorized to do business or not having an established place of business in the Commonwealth. The bond would secure the payment of the tax and any penalties that may become due, and the Department would determine the amount required. The Department also could require a bond from any person petitioning for reassessment of any tax assessment over $500 or where the Department believes the ultimate collection of the tax is in jeopardy. The Department also could require a bond from any person who filed a return or made payment more than 30 days late on three or more occasions within a 12-month period. Cash or securities would be accepted in lieu of surety bonds in any of these bond requirements.
Status: 1/28/19: (H) introduced and referred to Environmental Resources and Energy
HB 357 – Charter Schools. Would require a charter school to obtain adequate and appropriate insurance, bond or other security. The insurance, bond or other security would have to provide coverage for educational services and fees and costs incurred by a charter school and prevailing parties under the existing laws concerning individuals with disabilities, employment and retirement, employee medical and health insurance benefits, workers' compensation, unemployment compensation and taxes and other liabilities to federal, state and local tax agencies, school district overpayments, and other liabilities reasonably connected to the charter school's operations. The bond, insurance, or other security would have to provide coverage during the time the charter school is in operation and for sufficient time following the charter school's closure to make payment on all claims known or which could have been known to exist at the time of the school's closure.
Status: 6/11/19: (H) amendments adopted on House floor; read second time; re-referred to Appropriations
HB 811 – Occupational Licensing. Provides that a person has a fundamental right to pursue a lawful occupation, including a person who has been convicted of a crime. 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. The bill would require occupational licensing and certifying bodies to determine whether the person's criminal record would disqualify them for the license based on the standards set forth in the bill concerning the kinds of crimes for which the person was convicted. The license applicant could appeal any adverse decision. The bill also would eliminate the requirement to pay license fees for persons whose household income is less than 200% of the federal poverty line.
Status: 4/9/19: (H) introduced and referred to Professional Licensure
HB 1039 – Scholarship Programs. Would establish the Pennsylvania Empowerment Scholarship Accounts Program to provide scholarship funds for qualified students. The Department of Education would be authorized to adopt regulations for the accounts that include requirements for individual empowerment scholarship account holders to post a bond or obtain insurance.
Status: 4/2/19: (H) introduced and referred to Education
HB 1231 – Various Tax Bonds. Would require transient vendors to register in connection with this tax assessment and post a $500 bond to secure its compliance with a proposed sales and use\ tax on residential property. The bill also would authorize the Department of Revenue to require a bond from nonresident persons or entities, a building contractor, or a supplier delivering building materials that is not authorized to do business in or does not have a place of business in the Commonwealth and is subject to the proposed sales and use tax. The Department would determine the bond amount. The Department could require a bond from person petitioning for reassessment if the assessment is over $500 or the Department determines the collection of the tax is in jeopardy. Persons who have filed a return or made payment to the department more than 30 days late three or more times in a 12-month period could be required to post a bond.
Status: 4/17/19: (H) introduced and referred to Finance
Related Bill: SB 76
HB 1296 – Scholarship Programs. Would create a military education scholarship account program as a school choice measure for students whose parents are active duty members of the military. Participating schools receiving funds from these scholarship accounts would have to provide evidence of their financial viability to repay $50,000 or more in scholarship funds by posting a surety bond in an amount equal to the amount funds expected to be received during the school year or by filing financial information that the school is able to repay this amount.
Status: 4/25/19: (H) introduced and referred to Education
SB 76 – Various Tax Bonds. Would require transient vendors to register in connection with this tax assessment and post a $500 bond to secure its compliance with a proposed sales and use tax on residential property. The bill also would authorize the Department of Revenue to require a bond from nonresident persons or entities, a building contractor, or a supplier delivering building materials that is not authorized to do business in or does not have a place of business in the Commonwealth and is subject to the proposed sales and use tax. The Department would determine the bond amount. The Department could require a bond from person petitioning for reassessment if the assessment is over $500 or the Department determines the collection of the tax is in jeopardy. Persons who have filed a return or made payment to the department more than 30 days late three or more times in a 12-month period could be required to post a bond.
Status: 2/22/19: (S) introduced and referred to Finance
SB 174 – Abandoned Properties. Would require a purchaser of an abandoned property to enter into a redevelopment agreement and post a bond to ensure compliance with the agreement.
Status: 5/6/19: (S) from Appropriations; re-reported as committed
SB 353 – Scholarship Programs. Would establish a scholarship program as part of a school choice measure. The bill would require schools that receive $50,000 or more in funds through this program to post a surety bond in an amount equal to the funds received in a school year or provide financial information demonstrating the school's ability to repay these funds.
Status: 3/4/19: (S) introduced and referred to Education
SB 497 – Charter Schools. Would require charter schools to post an indemnity bond, escrow account, or other security. The bond would have to cover the costs that a school district incurs to educate students from the charter school if the charter school defaults and closes. The local school boards would determine the amount required. The bond would be payable to each school district with resident students enrolled in the charter school in proportion to the number of resident students enrolled in the charter school. The maximum duration of the bond would be five years.
Status: 3/29/19: (S) introduced and referred to Education
CONTRACT SURETY
HB 56 – Performance Bond. Would establish requirements for the State to let information technology contracts. The bill provides that performance bonds could be required under the provisions in the contract.
Status: 3/18/19: (H) in State Government. Corrective reprint issued.
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
HB 882 – Performance Bond. Would revise the existing municipal finance laws in Pennsylvania. The bill provides that in order for a local government unit to obtain preliminary approval for the issuance of debt, the unit would have to provide a description of the type and amount of payment or performance bond, letter or credit or other financial security proposed to insure the completion of the project.
Status: 6/10/19: (H) removed from table; laid on the table
Related Bill: SB 204
HB 885 – Bond Threshold. Would eliminate the discretion that local governments have in the Little Miller Act to accept any financial security in lieu of performance and payment bonds. The bill would allow only surety bonds, letters of credit, or escrow accounts as acceptable performance and payment security. Existing law requires that the security required must be equal to 100% of the contract amount. The existing Pennsylvania P3 law mirrors the Little Miller Act for bonding for local governments rather than the Little Miller Act for state projects, which requires 100% performance and payment bonds for the contract amount. SB 207 is similar, except that it would increase the bond threshold from $10,000 to $500,000.
Status: 6/10/19: (H) removed from table; laid on the table
SB 204 – Performance Bonds. Would revise the existing municipal finance laws in Pennsylvania. The bill provides that in order for a local government unit to obtain preliminary approval for the issuance of debt, the unit would have to provide a description of the type and amount of payment or performance bond, letter or credit or other financial security proposed to insure the completion of the project.
Status: 2/5/19: (S) introduced; referred to Local Government
SB 207 – Bond Threshold; Payment and/or Performance Bonds. Would revise the Little Miller Act for local governments to repeal the broad discretion granted to local public contracting entities to accept "any financial security" to secure performance and payment obligations, and to set forth specific acceptable forms of security, including performance and payment bonds. The bill would limit the kinds of security that may be furnished to performance bonds and payment bonds, letters of credit, or escrow accounts equal to 100% of the contract amount. The bill also would increase the threshold for requiring bonds, letters of credit, or an escrow account from $10,000 to $500,000.
Status: 2/5/19: (S) introduced; referred to Local Government
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 5776 – Virtual Currency Businesses. Would require virtual currency businesses to be licensed and post a surety bond or other security in an amount that the Department of Business Regulation (Department) would determine based on the nature and the extent of the licensee's virtual currency business model. The bond or other security would secure the licensee's compliance with the applicable law. A surety bond only could be required if it is generally available in the State for a commercially reasonable cost. The Department could require the bond to be in place for a period of time that it will determine after the licensee ceases to do business in the State.
Status: 2/28/19: (H) introduced and referred to Finance
SB 737 – Student Loan Servicers. Would require student loan servicers to register and post a $50,000 bond, conditioned on compliance with applicable laws and payment of all funds that may become due to the State or any person.
Status: 6/13/19: (S) in Finance; committee recommends passage of Substitute A
CONTRACT SURETY
HB 5637 – Bond Threshold; Payment and/or Performance Bonds. Would increase the bond threshold from $50,000 to $150,000 for contracts with the Department of Transportation for road and bridge projects. The law requires a bond in an amount not less than 50% and not more than 100% of the contract price.
Status: 4/25/19: (H) Finance Committee recommended measure be held for further study
Related Bill: SB 585
SB 585 – Bond Threshold; Payment and/or Performance Bonds. Would increase the bond threshold from $50,000 to $150,000 for contracts with the Department of Transportation for road and bridge projects. The law requires a bond in an amount not less than 50% and not more than 100% of the contract price.
Status: 5/31/19: (H) in Corporations. Transferred to Finance.
Related Bill: HB 5637
SB 590 – Payment Bonds. Would require an owner or developer of a private project valued at $5 million or more that receives a tax credit under existing law for the project to attest by sworn affidavit that the properties have no outstanding liens and to furnish a payment bond for the project.
Status: 6/7/19: (H) referred to Finance
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 3263 – Occupational Licensing - Exemptions for Military Personnel and Federal Employees. Would exempt persons from obtaining any license for a profession or occupation required under the State's Consumer Protection Code or the Professions and Occupations Code for persons serving in the U.S. armed forces and virtually every federal employee if the work for the profession is part of their federal employment and they have a valid license from any other recognized jurisdiction. Spouses of U.S. armed forces members also would be exempt from these licensing law requirements while the person serving is stationed in the state if the spouse holds a valid, current license in good standing from the any other recognized jurisdiction. Federal employees, military members, and military spouses would be exempt from obtaining licenses to be insurance adjusters, public adjusters, motor vehicle physical damage appraisers, a surety bondsman, a professional bondsman, and a bail runner if they meet these qualifications. U.S. armed services members and their spouses would be exempt from the licensing fees for nonresident insurance producer and broker licenses. Spouses of U.S. armed services members would be exempt from license requirements under the Education Code if they have a valid, current educator license in good standing from another recognized jurisdiction.
Status: 5/7/19: (S) from Labor, Commerce and Industry; committee amendment adopted. Amended.
HB 3681 – Education Savings Accounts. Would create an education savings account program as part of a school choice measure. Participating schools receiving $50,000 or more in funds from these accounts would have to post a surety bond in an amount equal to the amount of funds received from an education savings account during the school year or provide financial information demonstrating the ability to repay this amount.
Status: 5/1/19: (H) in Ways and Means; sponsors removed
CONTRACT SURETY
NEW LAW: SB 530 – Bond Threshold; Construction Manager; Design-Build; Payment and/or Performance Bonds. Would increase the state bond threshold from $50,000 to $100,000 for projects let through the design-bid-build method. The bill also provides that bonds or security may be required for one or more designated portions of a project for construction managers at-risk (CMs-at-risk), design-build, or design-build-finance-operate-maintain contracts for 100% of the value of the designated portion of the project. The bill would prohibit construction from commencing until the bonds or security are in place. Under existing law, CMs-at-risk may be exempted from providing bonds or security for the preconstruction and design phase if construction does not commence until the performance bond and payment bond requirements are met.
Status: 5/13/19: signed by the Governor; Act 41; effective upon passage
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: 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: 3/20/19: signed by the Governor; effective 7/1/19
CONTRACT SURETY
NEW LAW: HB 1021 – Bid Bonds. Provides that bid bonds furnished for public improvement contracts would be destroyed rather than being returned to unsuccessful bidders.
Status: 3/1/19: signed by the Governor; Chapter 48; effective 7/1/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 909 – Fiduciary. Would require a caretaker or custodian of funds for an elderly person to post a bond if the value of the person's property exceeds $10,000.
Status: 5/24/19: signed by the Governor; Chapter 474; effective 1/1/20
NEW LAW: SB 394 – Public Officials. Would permit a sheriff to obtain insurance in lieu of posting the minimum $100,000 surety bond required under current law.
Status: 4/30/19: signed by the Governor; Chapter 260; effective immediately
NEW LAW: SB 634 – Travel Promoters. Would require travel promoters to be licensed and post a $10,000 bond per business location or provide audited financial statements to demonstrate a net worth of at least $1 million. The bill would permit direct actions on the bond. The bond would have to be in place for two years after the promoter ceases to do business in the state. Travel promoters who have been in operation for seven consecutive years could apply for an exemption from the bond requirement.
Status: 5/8/19: signed by the Governor; Chapter 308; effective 1/1/20
SB 1013 – Debt Resolution Services Providers. Would require debt resolution services providers to the licensed and post a surety bond in an amount not to exceed $50,000. The commissioner of the Department of Commerce and Insurance would determine the bond amount.
Status: 5/1/19: (H) reset on calendar for First Calendar of 2020
CONTRACT SURETY
NEW LAW: SB 779 – Construction Manager. Provides that the current pilot program authorizing the Department of Transportation to use the construction manager/general contractor method would become a permanent program. Under current law, the request for proposals must include a requirement that the proposer submit evidence that establishes the contractor has the capacity to obtain the required bonding and insurance for the project. The bill would revise the restrictions on the use of this project delivery method. Currently, the DOT may select up to three projects using the CM/GC method for the pilot program. The aggregate total construction costs of the pilot program projects shall not exceed $200 million. The first CM/GC project shall not exceed $70 million in construction costs, and no CM/GC project shall exceed $100 million in construction costs. The bill provides that the DOT would be able to use the CM/GC method for five projects during each fiscal year. Projects that exceed $70 million in construction costs would be subject to approval from the legislature. The pilot program will expire on July 1, 2019, under existing law.
Status: 4/11/19: signed by the Governor; Chapter 106; effective immediately
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: HB 3496 – Pharmacies. Would require pharmacies that are not operated by a publicly traded company to post a surety bond for not more than $25,000 in connection with licensure. The bond would secure the payment of fines, fees, and penalties that the State Board of Pharmacy (Board) imposes, as well as any investigation costs if the pharmacy fails to pay these amounts. The bill provides that the surety may cancel the bond, but the surety remains liable until the pharmacy obtains a new bond and the surety guarantees that on receipt of a written request for payment, the surety will reimburse the Board for the amount stated in the request that does not exceed the amount of the bond.
Status: 6/10/19: signed by the Governor; effective 1/1/20
HB 3842 – Motor Vehicle Dealers. Would allow the DMV to make claims against the bond for its fees in cases where the purchaser of a vehicle applies for the title because the dealer went out of business and did not apply and pay the fees for the title.
Status: 5/29/19: (H) sent to the Governor
SB 667 – Public Guardians. Would require a public guardian to post a bond in an amount that the Commissioners Court would determine. The bond would conditioned on the faithful performance of the guardian's duties.
Status: 5/25/19: (S) sent to the Governor
CONTRACT SURETY
HB 1999 – Infrastructure; Payment and/or Performance Bonds. Would create a right to repair construction defects on public, commercial construction projects before a contractor, subcontractor, supplier, or design professional could be sued for damages arising out of a construction defect. An independent, third-party professional engineer would have to inspect the defect and make a written report before the governmental entity could make a claim. Each party subject to the lawsuit would have to be given at least 150 days from the time the report is made to inspect and correct any construction defect. As amended, the bill provides that the governmental entity would not be required to allow a contractor to make a repair to the project in certain cases, including if the contractor cannot provide performance bonds and payment bonds to cover the corrective work, the contractor cannot provide liability or workers' compensation insurance, the contractor has been terminated previously for cause by the governmental entity, or the contractor has been convicted of a felony. If the contractor was required to perform corrective work previously on the project and it was not properly corrected or if it created a new defect, the governmental entity would not be required to allow a contractor to make a repair.
Status: 5/29/19: (H) sent to the Governor
NEW LAW: SB 2212 – P3s. Would permit certain drainage districts to enter into a P3 to fund the local share of the operation and maintenance portions of projects that the districts would be authorized to conduct with the U.S. Army Corps of Engineers.
Status: 6/10/19: signed by the Governor; effective 9/1/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: 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: 3/25/19: signed by the Governor; Chapter 192; effective 11/1/19
NEW LAW: HB 90 – Occupational Licensing. Would create a procedure for an individual with a criminal record may apply to the Division of Occupational and Professional Licensing for a determination of whether the individual's criminal record would disqualify the individual from obtaining a license in an occupation or profession regulated under existing law if the individual has completed or were to complete all other licensing requirements for the occupation or profession.
Status: 3/25/19: signed by the Governor; Chapter 198; effective 5/13/19
NEW LAW: HB 278 – Court Reporters. Would repeal the $2,500 court reporter bond requirement.
Status: 3/27/19: signed by the Governor; Chapter 379; effective 5/13/19
NEW LAW: HB 314 – Trustees. 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. The existing law requires a bond under the Uniform Trust Code's model in which the trustee must post a bond only if the court requires one or it is required by the terms of the trust and the court has not dispensed with the requirement.
Status: 3/22/19: signed by the Governor; Chapter 153; effective 5/13/19
NEW LAW: HB 425 – Public Officials. Would repeal the existing law requiring surety bonds for municipal officials and instead provides that municipalities would have to obtain a fidelity bond or crime insurance. The municipality would determine the amount. Under current law, for cities of the first and second class, the surety bond must be in the amount of at least $10,000 for city council members and at least $20,000 for the auditor.
Status: 3/26/19: signed by the Governor; Chapter 318; effective 5/13/19
NEW LAW: HB 453 – Liquor Transporters. Would require liquor transporters to be licensed and post a $10,000 surety bond or cash, conditioned on compliance with the applicable laws and regulations. The bond could be forfeited if the license is revoked.
Status: 3/27/19: signed by the Governor; Chapter 403; effective 5/13/19
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
CONTRACT SURETY
HB 513 – P3s. Would allow a municipality to enter into a public-private partnership for providing communications services by contracting with a private entity to own, operate, or manage a communications plant that is financed as provided under existing law. The municipality would have to issue a request for proposals seeking an Internet service provider to serve unserved and under-served locations that the municipality has targeted.
Status: 5/20/19: (S) House message: House concurred in Senate proposal of amendment. Passed both Houses.
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: 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: 3/26/19: signed by the Governor; Chapter 812; effective 7/1/19
NEW LAW: 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: 3/14/19: signed by the Governor; Chapter 396; effective 7/1/19
Related Bill: SB 1188
NEW LAW: 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: 3/21/19: signed by the Governor; Chapter 742; effective 7/1/19
Related Bill: SB 1769
NEW LAW: 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: 3/21/19: signed by the Governor; Chapter 744; effective 7/1/19
NEW LAW: 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: 3/21/19: signed by the Governor; Chapter 789; effective - see bill
Related Bills: SB 1503, and SB 1706
NEW LAW: 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: 3/18/19: signed by the Governor; Chapter 558; effective 7/1/19
Related Bill: HB 2038
NEW LAW: 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: 3/12/19: approved by the Governor; Chapter 351; effective 7/1/19
NEW LAW: 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: 3/21/19: signed by the Governor; Chapter 750; effective 7/1/19
NEW LAW: 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: 3/18/19: signed by the Governor; Chapter 517; effective - see bill
NEW LAW: 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: 3/21/19: signed by the Governor; Chapter 763; effective 7/1/19
Related Bill: HB 2547
CONTRACT SURETY
NEW LAW: 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: 2/21/19: approved by the Governor; Chapter 124; effective 7/1/19
Related Bill: SB 1386
NEW LAW: 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: 2/21/19: approved by the Governor; Chapter 125; effective 7/1/19
Related Bill: HB 2290
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: SB 5107 – Fidelity Bonds. Provides that the board of directors of a state trust company would have to require good and sufficient fidelity bonds and liability insurance that covers the state trust company and all of its active directors, officers, managers, and employees, except as otherwise permitted by the Director of the Department of Financial Institutions (Director) through specified terms and conditions. The fidelity bond would have to indemnify the company for losses that it sustains as a result of the dishonest, fraudulent, or criminal act or omission committed or omitted by directors, officers, managers, and employees. The board of directors would have to prescribe the bond amount required at least once per year. The Director would be authorized to adopt regulations for bond coverage to provide more specific requirements if the regulations are "necessary to conform to the market availability of certain bond and insurance coverages".
Status: 5/13/19: signed by the Governor; Chapter 389; effective 7/28/19
NEW LAW: SB 5604 – Guardianships and Conservatorships. Would revise the existing law for guardians and conservators to allow the court to require an alternative asset protection arrangement to be furnished in lieu of the surety bond. The bill provides that the bond would have to be in the amount of the aggregate capital value of the estate, plus the estimated income for the accounting and report review interval, less the value of property deposited under an asset protection arrangement requiring a court order for its removal and real property the conservator lacks power to sell or convey without specific court authorization. Current law provides that the court determines the bond amount based on the value of the estate.
Status: 5/21/19: signed by the Governor; Chapter 437; effective 1/1/21
NEW LAW: SB 5795 – Contractors. Would require a work group to be convened to consider additional safeguards for consumers who engage contractors. The work group would have to report on its recommendations for consumer protections from contractors, including whether the bond amounts required in existing law for a license bond are sufficient and appropriate to protect consumers, workers, and suppliers and to meet tax obligations. Existing law requires general contractors to post a $12,000 license bond and specialty contractors must post a $6,000 license bond. The bond is conditioned that the contractor will pay all persons performing labor, including employee benefits, pay all taxes and contributions due to the state, and pay all persons furnishing material or renting or supplying equipment to the contractor, and pay all judgments against the contractor due to breach of contract, including improper work in the conduct of the contracting business. The law permits direct actions on the bond and the surety's aggregate liability cannot exceed the face amount of the bond.
Status: 4/26/19: signed by the Governor; Chapter 155; effective 7/28/19
CONTRACT SURETY
NEW LAW: HB 1295 – Construction Manager; Design-Build. Would eliminate the restrictions on the number of projects delivered using the design-build and construction manager project delivery methods. The bill also would reduce the threshold for using design-build for any project from $10 million to $2 million and the bill would eliminate additional qualifications that must be met to use the design-build delivery method for projects between $2 million and $10 million.
Status: 4/30/19: signed by the Governor; Chapter 212; effective 7/28/19
HB 1498 – Infrastructure; P3s. Would create a competitive grant and loan program to award funding to eligible applicants for the expansion of access to broadband service in unserved and under-served areas of the State. Priority would be given in awarding these funds to P3s that are deploying broadband infrastructure from areas currently served with broadband service to areas currently lacking access to broadband services.
Status: 4/28/19: (S) by resolution, returned to House Rules Committee for third reading
Related Bill: SB 5511
NEW LAW: SB 5418 – Payment and/or Performance Bonds; Retainage; Small Businesses. Would permit performance and payment bonds and retainage to be waived for small businesses on state and local contracts less than $50,000. Current law permits such waivers for contracts under $35,000 for small businesses. The existing law provides that if bonds and retainage are waived, the public owner assumes liability for the contractor's nonpayment of laborers, mechanics, subcontractors, material persons, suppliers, and taxes for the project. The bill also would increase the size of the public works contract that can be let to small contactors through a small works roster from $300,000 to $500,000.
Status: 5/21/19: Line Item Vetoed by Governor; Chapter 434; effective 7/28/19
NEW LAW: SB 5511 – Infrastructure; P3s. Would create a competitive grant and loan program to award funding to eligible applicants for the expansion of access to broadband service in unserved and under-served areas of the State. Priority would be given in awarding these funds to P3s that are deploying broadband infrastructure from areas currently served with broadband service to areas currently lacking access to broadband services.
Status: 5/13/19: signed by the Governor; Chapter 365; effective 7/28/19
Related Bill: HB 1498
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
HB 2002 – Education Savings Accounts. Would authorize the state treasurer to adopt regulations and policies for an education savings account program, which would include requirements for education service providers to post a surety bond if they receive $100,000 or more in funds from education savings accounts.
Status: 1/11/19: (H) introduced and referred to Education
HB 2680 – Third Party Litigation Financiers. Would require third party litigation financiers to register and post a minimum $50,000 surety bond or letter of credit. The bond or letter of credit would be payable to the state for the use of the attorney general and any person who may have a cause of action against the obligor of the bond for any violation of the law.
Status: 1/25/19: (H) introduced and referred to Government Organization
HB 2697 – Occupational Licensing - Consumer Choice Act. Would permit employers and consumers to hire a person that doesn't have a license for the profession or occupation if the person performing the work provides a disclosure notice to the consumer that complies with the requirements of the law. Insurance and bonding companies would not be required to issue a policy or a bond to an unlicensed person. The bill would exclude certain medical professions from being able to work without a state license.
Status: 1/28/19: (H) introduced and referred to Industry and Labor
HB 2819 – Contractors - Tax Bond. Would clarify that the business registration requirements apply to both nonresident contractors and nonresident subcontractors, and specifies that the bond requirement to secure the payment of taxes would apply to both. The bill also would require the bond to secure the payment of the municipal consumers sales and use tax and any special district excise tax.
Status: 3/9/19: (H) on second reading, House calendar
NEW LAW: HB 2934 – Gaming Facilities. Would require gaming facilities operating an interactive wagering facility to be licensed and post a surety bond in an amount to be determined by the State Lottery Commission to ensure that the licensee makes all payments required by law.
Status: 3/28/19: Became law without the Governor's signature; Chapter 128; effective 6/7/19
NEW LAW: SB 3 – Small Wireless Facility Providers. Provides that local government authorities could enter into agreements with providers of small wireless facility providers for their design, engineering, construction, installation, or operation or adopt ordinances governing these issues. A local government authority could impose reasonable and non-discriminatory requirements for surety bonds or other security to ensure removal of abandoned or unused wireless facilities or damage to the right-of-way or authority property caused by the wireless provider or its agent.
Status: 3/27/19: approved by the Governor; Chapter 42; effective from passage
NEW LAW: SB 360 – Litigation Financiers. Would require litigation financiers to register and post a surety bond or irrevocable letter of credit for not less than $50,000. The bond would be for the use of the Attorney General and any person who may have a cause of action against the obligor of the bond for any violation of the applicable law.
Status: 3/25/19: approved by the Governor; Chapter 49; effective 6/5/19
NEW LAW: SB 529 – Alcoholic Beverages. Would eliminate the license bond requirement for a brewer, resident brewer, distributor, Class S license. Current law requires brewers to post a bond for not less than $5,000 and not more than $10,000. The law requires distributors to post a bond for not less than $2,000 and not more than $5,000. The bill also would eliminate an additional bond required for brewers shipping non-intoxicating beer into the state, which must be in an amount not less than $5,000 nor more than $25,000. The bonds secure the payment of the applicable taxes.
Status: 3/25/19: approved by the Governor; Chapter 16; effective 6/6/19
Related Bill: HB 3100
SB 1040a – Education Savings Accounts. Would authorize the state treasurer to adopt regulations and policies for an education savings account program, which would include requirements for education service providers to post a surety bond if they receive $100,000 or more in funds from education savings accounts.
Status: 6/3/19: Passed Senate; to House
CONTRACT SURETY
HB 2011 – Performance Bond. Would establish a road maintenance program to allow state districts to enter into contracts with private companies for road maintenance, including, but not limited to ditching, snow removal, and mowing. The districts would be authorized to require vendors for these contracts to post a performance bond for at least 50% of the contract price.
Status: 2/27/19: (S) to Transportation and Infrastructure
HB 2028 – Performance Bond. Provides that public service districts that are laying water or sewer lines on state rights-of-way would have to require payment and performance bonds to cover a reasonable length of time for defects to be discovered.
Status: 1/18/19: (S) referred to Government Organization
Related Bill: SB 3
HB 2420 – Performance Bond. Would create the Mountaineer Trail Network Recreation Authority (Authority). For goods and services contracts exceeding $25,000, the Authority would have to require the vendors to post a performance bond in an amount equal to at least 50% of the contract price.
Status: 3/7/19: (S) referred to Rules on 2nd reading
Related Bills: HB 2484, SB 15, SB 132
HB 2484 – Performance Bond. Would create the Mountaineer Trail Network Recreation Authority (Authority). For goods and services contracts exceeding $25,000, the Authority would have to require the vendors to post a performance bond in an amount equal to at least 50% of the contract price.
Status: 1/30/19: (H) from Political Subdivisions: Do pass, but first to Government Organization; to Government Organization
Related Bills: HB 2420, SB 15, SB 132
HB 2772 – Payment and/or Performance Bonds. Would revise the contracting procedures for the Division of Corrections and Rehabilitation (Division) to purchase goods, services, and commodities. The bill would revise the existing requirement to provide a bond for at least 50% of the contract so that the requirement would be at the Division's discretion. The bill also provides that the bond could be in the form of a bid bond, performance bond, payment bond, maintenance bond, labor and materials bond, or any other type of surety that the Division deems necessary. The bill would eliminate the specification for the amount of the bond.
Status: 1/30/19: (H) introduced; referred to Veterans' Affairs and Homeland Securityn
Related Bill: SB 352
NEW LAW: SB 317 – Performance Bond. Would authorize counties to form a multi-county trail network authority (authority). For goods and services contracts exceeding $25,000, the authority would have to require the vendors to post a performance bond in an amount equal to at least 50% of the contract price.
Status: 3/25/19: approved by the Governor; Chapter No. 176; effective 6/7/19
NEW LAW: SB 352 – Payment and/or Performance Bonds. Would revise the contracting procedures for the Division of Corrections and Rehabilitation (Division) to purchase goods, services, and commodities. The bill would revise the existing requirement to provide a bond for at least 50% of the contract so that the requirement would be at the Division's discretion. The bill also provides that the bond could be in the form of a bid bond, performance bond, payment bond, maintenance bond, labor and materials bond, or any other type of surety that the Division deems necessary. The bill would eliminate the specification for the amount of the bond.
Status: 3/25/19: approved by the Governor; Chapter No. 55; effective from passage - 3/9/19
Related Bill: HB 2772
SB 522 – Performance Bond. Would establish a road maintenance program to allow state districts to enter into contracts with private companies for road maintenance, including, but not limited to ditching, snow removal, and mowing. The districts would be authorized to require vendors for these contracts to post a performance bond for at least 50% of the contract price.
Status: 3/27/19: vetoed by the Governor
Related Bill: HB 2011, SB 426
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
CONTRACT SURETY
AB 286 – Design-Build; Payment and/or Performance Bonds. Would establish a pilot program for the Department of Transportation to award six contracts for design-build projects that would have to be completed by 2025. The RFP would have to include requirements relating to performance bonds, payments bonds, and insurance. The bill would require the design-builder to be bondable for the term of the proposed contract and be able to obtain a 100% performance bond and a separate 100% payment bond. The DOT would have to award one contract to the lowest responsible bidder for a project with an estimated value of $10 million to $50 million; one contract using the best value method for projects with an estimated value of $50 million to $150 million; and one fixed price variable scope design-build contract for projects with an estimated value of $50 million to $150 million; and three contracts to be awarded as determined by the DOT with a total estimated value of not more than $200 million.
Status: 6/7/19: (A) introduced and referred to Transportation
Related Bill: SB 285
SB 285 – Design-Build; Payment and/or Performance Bonds. Would establish a pilot program for the Department of Transportation to award six contracts for design-build projects that would have to be completed by 2025. The RFP would have to include requirements relating to performance bonds, payments bonds, and insurance. The bill would require the design-builder to be bondable for the term of the proposed contract and be able to obtain a 100% performance bond and a separate 100% payment bond. The DOT would have to award one contract to the lowest responsible bidder for a project with an estimated value of $10 million to $50 million; one contract using the best value method for projects with an estimated value of $50 million to $150 million; and one fixed price variable scope design-build contract for projects with an estimated value of $50 million to $150 million; and three contracts to be awarded as determined by the DOT with a total estimated value of not more than $200 million.
Status: 6/7/19: (S) introduced and referred to Transportation, Veterans and Military Affairs
Related Bill: AB 286
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
COMMERCIAL SURETY
NEW LAW: 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: 2/14/19: Governor signed, HEA No. 0014; assigned Chapter No. 13; effective 7/1/19
NEW LAW: 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: 2/26/19: signed by the Governor; Chapter No. 92; effective 10/1/19
NEW LAW: 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: 2/28/19: signed by the Governor; Chapter No. 157; effective
CONTRACT SURETY
NEW LAW: 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: 2/27/19: signed by the Governor; Chapter 134; effective immediately upon completion of all acts necessary for a bill to become law as provided by the Wyoming Constitution
Contact CNA Surety at 800-331-6053 if you have information regarding legislative updates.
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