Lance Surety Bond Associates, Inc.

SB 45: Miscellaneous Bond – Internet Gambling

This bill will authorize intrastate Internet gambling and would require the Department of Justice to issue a request for proposals (RFP) to enter into contracts with up to three hub operators to host internet gambling games to registered players in California. These contracts would last for a period of 20 years. This bill will require a surety bond to be posted by the hub applicant through the RFP. This will become immediately due and owing to the state when the applicants proposal is accepted. If any documentation of the applicant was submitted in connection with the RFP is found to be false the bill will provide that the bond will have to be forfeited to the state.

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.

SB 1212: Caps on Appeal Bonds

This would cap the appeal bond required to stay the execution of a judgment in any civil action. Under current law a bond is required to equal to the full amount of the judgment plus costs, interest and any damages related to the pending appeal. This bill will provide that the bond would have to be posted for the lesser of the following amounts: the total amount of damages awarded excluding punitive damages, $25 million or fifty percent of the appellant’s net worth. A large bond amount could infringe on the due process rights of appellants because of the fact that they might not be able to post a bond for the full amount. In these instances appellants could be forced into bankruptcy or to settle their case. This lower bond amount requirement would allow for defendants to appeal a decision without such concerns, according to the findings.

SB 175: Motor Vehicles

This will provide for an appeal process towards the new law’s repurchasing requirements for marine product dealers that cease to do business. An appeal bond must be posted to compensate the prevailing party for compliance with the Louisiana Used Motor Vehicle Commission’s decision.

SB 151: Miscellaneous Bond – Notary Course Providers

This requires providers of instruction and training to prepare for the Louisiana notary public examination to register. If the provider is not an educational institution they must post a surety bond in the amount of $25,000. This bond with ensure the delivery of the providers services. All surety companies licensed in Louisiana must provide this bond.

SB 110: License Bond – Credit Repair Services

This revokes the previous requirement that a surety bond must be posted for credit service organizations for 2 years after the organization ceases operations in the state or after it has filed notice with the Attorney General.

HB 704: Miscellaneous Bond – Home Repair Service Contracts

This requires home service contract providers to post a financial security deposit in an amount equal to 5% of the gross consideration received on the sale of all service contracts, less any claims paid. This deposit must be not less than $25,000. Cash or a surety bond is also permitted to fulfill this requirement. In liaison with the security deposit the service contract provider may maintain a funded reserve account.

HB 369: Insurance Code Definitions

This act revises the Insurance Code. This will create separate definitions for surety and fidelity as lines of insurance. Previous law defined fidelity and surety as one line of insurance.

SB 79: Public Officials

The Central Iron Range Sanitary Sewer District was created by SB 79. This new law will authorize the districts board to post surety bonds and fidelity bonds to secure the honorable performance of the duties of its officers and employees. This law became effective upon enactment.

HB 2123: License Bond – Debt Settlement Services

This will subject debt settlement service providers to the existing bond requirements for debt management service providers. Debt management service providers must obtain a surety bond or other security in an amount no less than $5,000. This amount will be determined by The Commissioner of Commerce.