Lance Surety Bond Associates, Inc.

Taxes will be imposed on the extraction of natural gas in Pennsylvania through this bill. Under this bill the Department of Revenue would be authorized to require a surety bond for nonresident natural persons, or from any foreign entities that are not authorized to do business or not having an established place of business in the commonwealth. This bond will secure the payment of the tax and any penalties that may arise through the duration of the bond. The Department of Revenue will determine the amount required. A bond is also required to be posted by any person petitioning for the reassessment of tax assessment over $500 or where the Department believes the ultimate collection of the tax is in jeopardy. The Department could also 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. Another option would be posting cash or securities in lieu of the surety bonds in any of these bond requirements.

A $25,000 surety bond or irrevocable letter of credit is required to be posted by tax prepares and tax consultants. This is in connection with existing law’s licensing requirements. Under this bill it states that the surety’s liability would continue until two years after the licensee ceases to conduct business in the state or until the bond was canceled. The surety must include a 30 day cancellation clause in the bond language to cancel the bond. The surety’s aggregate liability cannot exceed the sum of the bond.

This requires contractors who are performing on construction contacts to have to subcontract any construction work outside the scope of its license to properly licensed construction contractors. They are also required to post a minimum of a $15,000 surety bond. Under current law a license bond based on the type of work and volume of the business is required. This pertains to the landscape contractor performs in an amount ranging from $3,000 to $15,000. This new bill would then require a new bond amount for landscape contractors performing on contractors outside the scope of their license.

The bond amount for employment agencies will be increased through this bill. This is under existing law from $5,000 to $20,000. A surety bond is required or a letter of credit. This is to secure that the agency is compliant with the law and will pay all sums due to consumers and their employees.

Boat dealers will be required to be licensed and to also post a surety bond in the amount of $50,000 from a corporate surety company. The bond will be conditioned on the terms of the license and the licensee’s responsibility to be in compliance with applicable law. The licensee will also need to indemnify the lien holders on the boat for losses incurred as specified in the bill’s provisions.

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.

Bond requirements for money brokers will be revised through this bill. Under current law a $25,000 surety bond is required to be posted. Through the new bill requirements there must be a minimum $25,000 bond with the amount to be determined by rules. The money broker’s loan origination volume in the previous year will determine the amount of the bond. A larger bond may be required by the Commissioner of Financial Institutions. This is only if he or she determines it necessary in order to protect the public interest.

Temporary work camp housing and procedures for installing and removing the structure will be provided through this bill. The housing put up through this bill must be removed within 120 days of it being vacated. A surety bond must be posted by the owner and provide this to the city or county where the work camp housing is installed. This is for the expenses that the city or county could incur by removing the housing, this includes any above-grade or below-grade infrastructure. The amount and form required for the bond or other security will be determined by the city or county.

The combination of these bills would revise the regulatory scheme for home service contracts, requiring the service contract provider to meet certain financial requirements. This includes posting a surety bond or other security. The bond that needs to be posted cannot be for less than 5% of the gross premium received, less claims paid, on the sale of the service contract for all service contracts issued and in force in the state. The bond amount can not be less than $25,000 and a funded reserve account would be required in addition to the bond. Instead of posting the bond or having a funded reserve account the service contract provider could maintain a net worth or stockholder’s equity of $25 million, either on its own or together with its parent company

Any property that has not been legally occupied for at least 12 months and is in need of rehabilitation will be in line for new procedures produced by this bill to deal with those properties. If complaints arise against the maintenance of the abandoned properties the owners can then submit a plan of rehabilitation. Or the owners may post a surety bond for an amount equal to 125% of the costs of rehabilitating the property.