Lance Surety Bond Associates, Inc.

LB 328: License Bond – Mortgage Loan Originators

Mortgage loan originators must register and be covered by a surety bond. Through this new law the previous bond requirement for mortgage bankers will now need to provide coverage for all originators that the banker employs or that are independent agents of the banker. Under prior law the bond amount was $100,000. The new changes will consist of the bond amount being based on the total dollar amount of the closed residential mortgage loans originated in the state. There must be a base of $100,000 and a maximum of $200,000. This new law became effective upon enactment.

LB 392: Public Officials

The treasurer of a learning community coordinating council must post a surety bond under this new bill. It must be in the amount no less than $500 and no more than double the amount of money that may come into his or her hands. The amount of the bond will be determined by the learning community and the law became effective upon enactment.

LB 441: Appeal Bonds

Exemption is provided through this for all appellants that are indigent from the appeal bond requirements of existing law or municipal court cases. To obtain the exemption an affidavit attesting to the financial condition of the appellant will be required.

AB 20: License Bond – Residential Care Homes

Homes for individual residential care must be licensed and also post a surety bond. The amount of the bond will be based on the number or employees as the existing law requires for various healthcare facilities. Through current law a $5,000 surety bond needs to be posted if a facility has less than seven employees, $25,000 bond for seven to twenty-five people, and a $50,000 bond for more than twenty-five employees. The bond must be issued from a corporate surety and be payable to the Aging Services Division for damages that a patient has sustained as a result of the licensee’s act or failure to act. The bond must run concurrently with the license period and have a 30 day cancellation clause in the bond form language. They must give 30 days notice of cancellation to the Administrator of the Health Division under current law. This new law became effective on January 1, 2010.

HB 1430: Public Officials

The Puget Sound Port Authority is created through this bill. This will require its designated treasurer to post a surety bond that will protect the Authority from any losses. The amount and conditions of the bond will be determined by the Authority.

HB 354: Public Officials

New income tax on income in excess of $150,000 will be imposed through this bill. The Department of Revenue has the authority to designate agents or outside counsel that is outside the state for the purpose of collecting this tax from non-residents. Bonds or other securities may be required to ensure the faithful performance of their collection duties. Taxpayers may be required to post a bond or other security if an extension is granted to pay the tax.

SB 197: Miscellaneous Bond – Vehicle Inspections

A $500 surety bond will be required in connection with certification as a vehicle inspection station or as a vehicle inspector under this bill. The bond is put in place to ensure compliance with the applicable law. Previous legislation failed in 2009.

SB 141/HB 1222: License Bond – Debt Management Service Providers

This will enact the uniform Debt Management Services Act of the National Conference of Commissioners on Uniform State Laws. Debt management service providers must register and post a $50,000 surety bond through this bill. The amount of the bond is determined by the Consumer Credit Commissioner basing the amount on certain conditions of the provider. The surety company issuing the bond must be “A” rated from a nationally recognized rating service and must be licensed in that state. The bond was created for the states benefit and individuals who enter into agreements with the provider. The bond will need to be in effect for an additional two years after the registrant stops performing debt management services in Texas.

SB 136: Subdivision Bond

The existing bond requirements for a subdivision bonds will be revised through this bill. This will be to expand the bond’s coverage and increase the amount required. Through current law the Commissioner’s Court requires a bond where the amount must sufficient to secure the construction of the roads, streets and drainage requirements, but not to exceed to the estimated cost of construction. Under the new bill the bond amount would be based upon the costs of other infrastructures such as water supply and sewage systems.

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.