Lance Surety Bond Associates, Inc.

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.

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.

Pre-paid calling services would be regulated under this bill requiring such providers of this service to post a surety bond or other security in the amount of $50,000. They must also obtain a certificate to operate in the state with this bond requirement. Distributors of prepaid calling cars must also post a surety bond. The bond must be in the amount of at least $10,000. Sales exceeding $50,000 by the distributors are then required to post a bond in the amount of $25,000.

HB 262: License Bond – Process Server Companies

This House Bill will regulate all process server companies. This will also require licensure and a surety bond to be posted in the amount of 10K from a bonding company authorized to do business in the State. Individual process serves that are not covered under a company’s blanket bond would have to post their own bond for $10,000 in connection with licensure.

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.

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.

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.

Home Food Service Plans Act SB 117 requires sellers of this plan to be licensed and to always post a surety bond from a surety company licensed in the state of Colorado. The Commissioner of Agriculture will determine the exact bond amount needed, but it will never be set beyond $50,000.

Arkansas no longer has a surety bond requirement for a proposed insurer to obtain certification from the Insurance Department.  The Department still accepts other forms of security.