Lance Surety Bond Associates, Inc.

Similar to my recent post about SB 232 (Mortgage Broker Bonds), Alabama SB 234 created a new surety bond requirement for the state

Effective on November 21, 2009, Alabama SB 232 created a new surety bond requirement for the state

On May 21, 2009, with the enactment of Alabama

The following surety bond requirement is outlined in Alabama HB 428.

As of August 1, 2009, all proprietary schools in the state of Alabama are required by law to post a surety bond in the amount of $20,000. This commercial bond is conditioned on any payments required when a student paid tuition and or fees to the proprietary school, but did not receive the level of instruction or quality of teaching that they paid for. Such damages would only be paid if a court determines such allegations to be truthful.

The May 21, 2009 enactment of HB 358 created the position of county manager for Jefferson County, Alabama. In order to legally do business in Jefferson County, the new county manager must get a non-recourse bond (commercial bond) from a licensed, solvent surety company.

This surety bond must in the amount of $50,000 or more, and is required in order to guarantee the faithful performance of the county manager

Enacted on May 13, 2009, Alabama House Bill (HB) 184 increased the bond amount that can be required by the State Board of Heating and Air Conditioning Contractors of certified heating and air conditioning contractors in the state. The amount that the State Board can require went up from $10,000 to $15,000.

HB 184 subjects all active heating and air conditioning contractors to this surety bond (license bond) requirement, to include refrigeration contractors.

Throughout 2008, most retainage legislation focused on trying to limit or completely prohibit the withholding of retainage after projects are 50% complete. Retainage legislation in Alabama, Colorado, Illinois, Nebraska and also Rhode Island was defeated this past year, thanks in part to the efforts of the Surety & Fidelity Association of America (SFAA) and AIA Surety.

The most significant retainage legislation that was enacted was California Senate Bill (SB) 593. SB 593 prohibits California