SB 258: Reclamation Bonds
This will authorize and provide procedures for the use of hydraulic fracturing and horizontal drilling for the extraction of natural gas through this bill. A $25,000 surety bond per well would be required under this bill. This is to ensure the compliance with all applicable laws and rules relating to the drilling, re-drilling, deepening, casing, stimulating, and the plugging of gas wells. This will also pertain to the plugging of gas wells, abandonment, reclamation of wells, and for the furnishing of such reports required.
SB 314: Miscellaneous Bond (Natrual Gas Wells)
Special procedures are created through this bill for building natural gas transportation roads that will aid in the expansion of natural gas drilling in the State. Natural gas well owners must obtain a permit in order to have equipment or materials transported over a natural gas resource transportation road. A performance bond will be accepted to cover the costs of road repairs possibly would be required with this permit.
SB 113: Public Officials
The administrator and the secretary-treasurer of the proposed Wyoming Board of Professional Engineers and Professional Land Surveyors will be required to be bonded. This will be required to secure the faithful performance of the duties of office.
SB 77: Miscellaneous Bond – Food Programs
A surety bond might need to be posted by food program sponsoring organizations. This would be in order to participate in a child and adult day care food program. These organizations are private non-profit that administer a food program in a child or adult day care home or center. The programs are federal programs which are administered by the states. The bond would have to be posted to the Texas Health and Human Services Commission where they would determine the amount and rules. Under existing federal regulations and law permit the states to require a bond from sponsoring organizations in connection with the program. The bond must be from a surety company listed in the U.S. Department of Treasury’s Circular 570. That is in accordance with the federal regulations concerning this program.
SB 180: Miscellaneous Bond
Instead of a corporate officer being personally responsible for the filing of fees assessed on oil that is being transported through a pipeline they will be able to post a surety bond.
Under a new assembly bill the security requirement for service contract providers will be appealed. Currently the law requires the provider to post some form of security in an amount equal to $25,000 or 5% of the gross consideration received by the provider for any unexpired service contracts. A surety bond is accepted in lieu for this requirement.
HB 425: Reclamation Bonds
This house bill will authorize the Department of Environment to require a bond to be posted in connection with a permit for the use of any coal-combustion by-product for reclamation of a mining site. Under the terms of this bond the secure compliance with the applicable state and federal law will be enforced. The bond amount will have a capacity of the maximum limit of $7,500 per acre based on the number of affected acres. Under existing law a bond was required in connection with a mining operation permit. This new bond will be required in addition to the existing law’s reclamation bond requirements.
A program will be established through SB 398 to provide scholarships to special needs students to attend qualified public and non-public schools. Scholarship granting organizations would then be required to demonstrate their financial viability if they have been receiving more than $50,000 in donations during the school year. This can either be shown through the submission of financial information demonstrating such viability or they will be allowed to post a surety bond. The surety bond that would need to be posted must be in equal to the aggregate amount of contributions that the school expecting to receive during the school year. A bond will also be required by SB 433 from scholarship organizations as described above, but the program is for low-income students.
Through this bill contaminated industrial sites will now have the use of site specific remediation standards. Financial assurance will be required by the person conduction the remediation project. This will be required in order to insurance the completion of the cleanup project according to the remedial action plan. A surety bond may be posted as a form of financial assurance.
HB 297: Financial Assurance – Oil and Gas Wells
Under this bill the maximum amount of financial assurance for permit tees operation an oil gas or service well in the state will be increased. Surety bonds can be accepted to meet this requirement, and the law caps the assurance for a blanket bond covering multiple wells at 50K. The new bill would increase this cap to 500K.
AB 3438: License Bond – Exchange Facilitators
Under this bill exchange facilitators will be regulated. These are people who facilitate like kind exchanges or property that is pursuant to federal tax law. This new bill would require facilitators to be licensed and to obtain a fidelity bond that would be in the amount no less than $1 million. Another option would be to post cash or a letter of credit in an equal amount.
AB 3408: Professional Employer Organizations
This Assembly Bill would revise the current law for employee leasing companies, including the financial requirements. Under existing law companies need to maintain a minimum net worth of $100,000. Under the new bill to be passed the $100,000 net worth requirement will be substituted for a surety bond in the amount of $75,000. Now instead of meeting the minimum net worth requirement the bill would require the company to maintain a positive working capital. If the company fails to do that then it could post a bond, irrevocable letter of credit or securities with a minimum market value that is equal to the amount required for achieving a positive working capital, plus $100,000.
HB 6307: Third Party Administrators
This will adopt a modified version of the NAIC model for the third-party administrators of insurance benefits. These people will have to be licensed, and those who are administrating governmental or church self insured plans will have to post a surety bond in the amount of $100,000 or 10% of the aggregate amount of self-funded coverage under governmental plans or church plans handled in Connecticut and all additional states which are authorized to conduct business. This bond will have to respond to claims that originated from the Connecticut Insurance Department and any other state insurance regulatory authority in the states licensed to conduct business.
SB 9: Court Bonds – Confiscated Animals
Under current law the owner of a confiscated animal must post a surety bond for the costs of the care of the animal for 30 days. SB 9 will repeal the law requiring the owner to post a surety bond to prevent its disposition by an impound agency. Animals may be confiscated for the owner’s neglect, abuse, cruelty or because the owner illegal possession of a dangerous dog.
HB 2299: Miscellaneous Bond
This will revise the amount of the proof of financial responsibility that private prisons are required to obtain. This proof of financial responsibility may be in the form of an insurance policy or a surety bond. Under current law the bond or policy must be for $10 million. This bill will change the amount that needs to be posted to no less than $10 million.
HB 804: Court Bond
If the value of a personal property or estate is expected to be at least $10,000 conservators for the estate must post a surety bond in that amount. Previous law provided for a bond to be posted when the proposed protected person petitioned the court to require one. This law applies to conservators appointed after August 1, 2009.
HB 1221: Permit Bond
A surety bond or other security must be posted in connection with a right-of-way permit for the installation of utilities in Washington County. This bond is posted to guarantee the restoration of county property at the site on which the work was performed. This law became effective June 1, 2009.
Illinois HB 2956/SB 1539
Under this bill real estate appraisal management companies will be required to register and post a $25,000 surety bond. This will be conditioned upon the compliance with the law. This bond was created to ensure the recovery of expenses, fines or fees due to the Department of Financial and Professional Regulation.
Alabama SB 320
Real estate appraisal management companies will be required to register and post a $25,000 surety bond. Under the regulations of this bond it will insure the company’s compliance with the law. The surety’s aggregate liability would not exceed the principal sum of the bond through this bill. The real estate company could also post cash or other appropriate security in lieu of the bond. Illinois SB 1539 will regulate real estate management companies and require the same bond amount under the existing law.
South Carolina HB 3717
South Carolina has a pending bill that would require real estate appraisal management companies to be registered and to post a $25,000 surety bond. This cannot exceed the $25,000 amount and the bond would have to be from a corporate surety licensed to do business in that state. This bill would create the Real Estate Appraiser’s Board and this board will determine the bond amount through their rules. Having this bon instated would secure the payment of any penalties and any damages caused as a result of the company’s violation of the applicable law or rules.
CONNECTICUT SB 1110
With bill will revise the existing licensing laws for mortgage lenders, brokers and originators. Under existing law a surety bond was required to be posted in the minimum amount of $40,000. This was enlisted to regulate the bond amount by the licensee’s loan origination volume. The revised bill will require mortgage lenders and correspondent mortgage lenders to post a the minimum of $100,000 surety bond and mortgage brokers would be required to post a minimum $50,000 bond. The licensee would have to obtain a bond that covers all loan originators that the licensee sponsors at all locations after the initial bond that covers the license for the main office.
SB 2091: Viatical Settlements Act
A Surety bond in the amount of $125,000 must be posted in order to insurance financial responsibility for licensed viatical settlement providers. This bond must be issued by an insurer authorized to issue surety bonds in that state. If the provider has proof that financial instruments have been filed in one or more states where the provider is licensed this can be accepted in lieu of a bond or other security. This stands as long as the instruments comply with the new law’s provisions. There are other acceptable forms of security such as cash, certificates of deposit, securities or a letter of credit. This law will be effective on July 1st, 2010.
SB 1704: Miscellaneous Bond
SB 1704 requires that resident funds that a facility’s employees handle against, loss, theft and insolvency be secured by posting a security bond by their facility. This law will be become effective on July 1, 2010.
HB 264: Depository Bond
The Illinois Urban Development Authority was created under HB 264. Under this it requires its depositories to post a surety bond. This surety bond must be issued in the condition of the safekeeping of money be deposited and also the repayment of the deposits. The minimum bond amount posted must be equal to at least the maximum sum expected to be on deposit at any given time.
Prior law in Connecticut required a surety bond be posted in the amount of $250,000 for residential underground heating oil storage tank system contractors. HB 6501 eliminates this bond requirement and is effective upon enactment date June 9th, 2009.
Under the American Recovery and Reinvestment Act through the federal stimulus package, HB 1346 provides for the use of the funds provided to the state of Colorado. Under this new law state agencies are now allowed to come together and construct separate legal entities. These legal entities are known as recovery and reinvestment finance authorities who have projects that are funded through this package. If you are appointed as a custodian of a finance authority fund you must post a surety bond in the mount that the authority’s board requests.
According the recently enacted Kansas House Bill 2315 (HB 2315), home inspectors are now required to register with the Home Inspectors Registration Board if they wish to legally operate in the state of Kansas. They are required to submit proof of a fidelity bond of no less than $10,000 to the Board, which will cover dishonesty of the home inspector. Additionally, home inspectors are required to separately submit proof of financial responsibility. This proof can come in the form of a surety bond (license bond, which is a type of commercial bond) for at least $10,000, one that cannot be terminated without at least 30 days advance written notice to the Board. In addition to the surety bond option, home inspectors can meet their proof of financial responsibility requirement with an irrevocable letter or credit (no less than $10,000), or with an escrow account with a minimum balance of $10,000. Additionally, financial responsibility can be demonstrated via an errors and omissions insurance policy.
However, a similar bill was defeated in the state of Georgia. If passed, Georgia Senate Bill 485 (SB 485) would have required home inspectors to be officially licensed, purchase liability insurance for a specific amount that would be determined by regulation, and either purchase a surety bond or maintain no less than $100,000 in net assets.