Lance Surety Bond Associates, Inc.

HB 1440: Tax Bond – Mineral Mining Operations

Through this bill a severance tax on coal, sand gravel, dimension stone, limestone, gypsum and crushed stone will be imposed in the amount of 4.5% of the gross value of the materials recovered from the earth. A surety bond must be posted by the persons required to file the tax reports and pay the amount owed. The amount will be determined by the Department of State Revenue. Cash will also be accepted in lieu of the bond.

SB 541: Court Bond

Under this bill the creation of redevelopment commissions in certain counties in Indiana will be possible. This bill will allow for an economic development pilot program. These commissions must determine which areas of the county are eligible for redevelopment, and create a plan for these areas. Anyone who is affected by the redevelopment would eligible to file remonstrance with the commission as a part of the planning process. If the remonstrator is then aggrieved by the commission’s final decision for the economic development area they are then allowed to file an appeal in the circuit court. This redevelopment commission could petition to have the appeal dismissed. This may be possible unless the remonstrator files an appeal bond to secure the costs of the appeal and all damages should the commission win in the lawsuit.

SB 510/HB 1230: Miscellaneous Bond – Medicaid Providers

Transportation suppliers who are enrolling in Medicaid, changing the ownership of a Medicaid provider or those who are purchasing or transferring the assets or ownership interests of a Medicaid provider are required to post a $50,000.00 surety bond. This bond will be continuous for a term of three years and it will guarantee that the surety will pay the amount of a Medicaid overpayment or false claim made to the provider. The surety’s liability will not exceed the bond amount, and the bond requirement would not apply to federal tax-exempt organizations. Secretary of Family and Social Services would have discretion to grant waivers for transportation providers operating in a federal or state designated underserved area.

HB 239: Public Officials

This will allow for the State Treasurer to establish and administer a Home Savings Pool for first time home buyers. The State Treasurer would be authorized to receive endorsements paid into the Pool by a participant and could serve as the fiscal agent of the participant to hold and invest the Pool’s funds. The State Treasurer will be required to post a one million dollar bond to secure the faithful performance of his or her duties in connection with the Pool.

SB 87/HB 159: License Bond – Currency Exchanges

This will increase the amount of the license bond for community currency exchanges from 10K to 50K. This provides services for cashing checks, drafts, money orders or any other acceptable evidences of money. The Director of Financial Institutions is permitted to require a larger bond amount. This cannot exceed the exchanges outstanding liabilities. This bond secures any liability the exchange inherited on any money orders, and for any sums due for unpaid checks, draft or money orders left with the exchange for collection, and for any liability incurred in connection with the services permitted under current law. This new bill will clarify this to include the payment of any penalties and fees incurred by the remitter in the case that a money order is returned unpaid. Under current law an exchange is permitted to provide a blanket bond for all licensees belonging to a statewide association of exchanges. This bill will increase the required amount of the blanket bond from $2 million to $10 million.

Idaho House Bill 36:  Proprietary School Bond

Under this bill the surety bond for proprietary schools will be revised. Current law requires such schools to have a surety bond in the amount that the State Board of Education determines in rules. The bond must be in the amount no less than the total tuition and fees that the school collects from its students. This is for the period of the student’s instructional program at the school during the upcoming registration year. This new bill will permit the Board to accept a bond for a lower amount from newly registered schools for a period up to 5 years. This is so as long as the bond was supplemented by other financial instruments.