Surety Bond News – Newly Enacted Laws

Written by JoAnn Smith on March 10th, 2016. Posted in Commercial Bonds, Idaho, Legislation, License and Permit Bonds, South Dakota, Surety Bond Blog, Tax and Fees Bonds, Virginia, Wisconsin

Idaho Tax Bond – HB 376 provides that the surety bond required for cigarette wholesalers must be equal to twice the estimated average tax liability for the reporting period for which a return must be filed, or the value of stamps in the wholesaler’s inventory including those ordered but not yet received, whichever is greater. Prior law required the surety bond only to be equal to at least twice the average tax liability. The new law repeals the $1,000 minimum bond amount. The new law became effective upon enactment. (03/02)
  Idaho Reclamation Surety Bond – Surface Mining – SB 1197 increases the maximum amount of the performance bond required to secure the reclamation of a surface mining site from $2,500 per acre to $15,000 per acre. The new law requires the State Board of Land Commissioners to issue a written notice of a rejection of an application for bond release that explains the reasons for the rejection. The new law becomes effective on July 1, 2016. (03/08)
  South Dakota Court Bond – Wage Garnishment – SB 1059 repeals court procedures for wage garnishment cases that include a requirement for the defendant to post a bond to secure payment of the judgment to the plaintiff. With the repeal of the procedures, the bond requirement has been eliminated as well. (03/02)
  South Dakota License Bond – Vehicle Dealers – HB 1083 requires off-road vehicle dealers to be licensed and post a $5,000 bond. (03/02)
  Virginia Court Bond – Trusts – HB 230 provides that a person could petition a circuit court to establish a trust. The court would determine the terms of the trust and the trustee, as well as whether the trustee must post a bond with or without surety. (03/01)
  Virginia Appeal Bonds – HB 437 revises the current law for appeal bonds and “suspending bonds” to clarify the procedures for modifying the amount of the bond to specify that a motion can be filed in court in addition the current practice of filing a brief. The new law permits the parties in the case to agree to waive the requirement of a suspending bond or to agree to a suspending bond in an amount less than the compensatory damages. The suspending bond amount also now must include an amount equivalent to one year’s interest calculated from the date of the notice of appeal. The new law specifies that if the party filing the appeal provides cash in an amount equal to the judgment, then surety will not be required for the bond. (03/01)
  Wisconsin Financial Assurance – Radiological Materials –  AB 426 establishes a permit requirement for transporting radiological materials in the State. The Department of Transportation could require the permittee to provide a bond, insurance, or a certified check to hold the State and any city, village, town, or county through which the vehicle, trailer, or semitrailer will be operated harmless from any claim, loss, or damage that results from the granting of the permit or from any action under the permit. (02/06)
  Wisconsin License Bond – Charitable Organizations and Miscellaneous Bonds – Professional Employer Organizatons – SB AB 778 revises the current bond requirements for professional employer organizations, which currently must maintain a working capital or post a bond or other security for at least $100,000, or if the PEO has a negative working capital, the bond or other security must be equal to $100,000 plus an amount to make up the deficiency. The new law eliminates the option to provide other forms of security in lieu of the bond when only a bond is posted in lieu of the working capital. The new law revises the surety bond requirement for professional fundraisers and fundraising counsel to delete a provision requiring the bond to be from “one or more responsible sureties whose liability in the aggregate as sureties at least equals [the bond amount].” The new law deletes an option for the bond to be a rider for a blanket liability bond and instead would require the bond to be prescribed by and acceptable to the Department of Financial Institutions. (03/01)  Buysurety law

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New Requirements for Surety Bonds for Manufactured Homes

Written by JoAnn Smith on November 20th, 2013. Posted in Idaho, Indemnity Bonds, Legislation, License and Permit Bonds, North Dakota, South Dakota

     manufactured homes
manufactured homes may need surety bonds
Some changes have been made recently regarding the regulations for manufactured homes. In several states this has also meant that state legislature has changed the regulations regarding the requirements for surety bonds as part of the manufactured homes dealer licenses. These may also have affected mobile home manufacturers, mobile home service businesses and other companies that deal with mobile homes and manufactured homes. These tend to be state-by-state changes, and the ones that affect surety bond requirements are named below:

Idaho

Service companies that provide service or repair or even tear-down of manufactured homes have in the past been required to provide a $5,000 license surety bond. This requirement has been repealed. Manufactured home installers will still be required to provide a surety bond as part of their license, however, as they are not considered a service provider. This change will extend to include mobile homes as well as manufactured homes.

North Dakota

The existing requirement for mobile home dealers to post a $10,000 permit surety bond has been increased to $50,000. In addition, dealers of manufactured homes are now going to be required to post the same surety bond amount as part of their licensing. Direct action is permitted on the bond with the aggregate liability limited to the bond amount.

South Carolina

A revision has been made to the licensing requirements for retail dealers of manufactured homes. The license will now require a credit score of 700 with a net worth of a minimum of $150,000. If the retailer cannot meet these requirements they will be then required to post a surety bond with the license.

License and Permit Bonds

Many states demand some type of license and permit surety bond as part of the licensing requirements. If you are considering a surety bond for your licensing needs, BuySurety can help. We provide permit and licensing bonds for all fifty states and for any kind of industry. Contact us today to find out how we can help you to meet all your surety bond requirement needs.

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Car Dealer Bond Requirements for Arizona, Nevada, Idaho and Utah

Written by JoAnn Smith on November 5th, 2013. Posted in Arizona, Commercial Bonds, Idaho, License and Permit Bonds, Motor Vehicle Bonds, Nevada, Utah

     car dealer bonds
Find out the car dealer bond requirements for your state.
Car dealer bonds are probably one of the most commonly required surety bonds when it comes to business. The bottom line for most is that you simply cannot run an auto dealership, sell cars in auction or even sell such recreational vehicles as boats and All Terrain Vehicles (ATVS) without a car dealer bond. But not every state requires them for all of these types of vehicles. Many states have different car dealer bond amounts for different vehicles and some states only require them when you are selling new cars on a lot. Confused yet? Well, we will try to make it a bit easier by every week presenting a few more states and the regulations for auto dealer bonds in those geographical locations. Here is a continuation as we move east from the Pacific coast to look at the car dealer bond regulations in the western desert states of Arizona, Nevada, Idaho and Utah.

Arizona Car Dealer Requirements

There are three different situations where an auto dealer bond will be required as part of doing business. You can get a free quote for any of these Arizona Auto Dealer Surety Bonds.  For all three situations, the bond must come from a company that is authorized to do business in Arizona. Lucky for you, BuySurety fits that bill just fine. If you have more than one location, you will need to have a separate surety bond for each county that you do business in. The one exception to this is the title service company which can run under multiple locations and they will be covered by the same car dealer bond.
  • For New and Used Motor Vehicle Sales – $100,000 New and Used Motor Vehicle Dealer Bond
  • For a Title Service Company – $25,000 Auto Dealer Bond
  • For a Wholesale Auto Auction Dealer – $25,000 Wholesale Auto Dealer Bond
  • For a Wholesale Motor Vehicle Dealer – $25,000 Motor Vehicle Dealer Bond
  • For an Automotive Recycler – $20,000 Auto Dealer Bond
In all of these the surety bond is continuous and does not need to be renewed. If a business or individual needs to cancel their auto dealer bond, they must do so in writing at least 60 days prior. The notice can be sent to Dealer Licensing.

Nevada Car Dealer Requirements

The Silver State separates out their auto dealer licenses, and the bonds that go with them, according to use. So if all you are planning to sell at your lot are new and used cars, this only needs one type of surety bond. But being the west, horse trailers, utility trailers and motorcycles are designated for a different kind of surety bond requirement. All of these types of Car Dealer Surety Bonds are available directly. Outside of these qualifications, the designations are fairly simple in Nevada for any kind of auto dealer bond.
  • For selling new or used motor vehicles – $100,000 Car Dealer Surety Bond
  • For selling motorcycles, horse trailers that do not have an area for living or utility trailers with unloaded weight of at least 3,501 pounds – $50,000 Motor Vehicle Dealer Surety Bond
  • For selling utility or boat trailers with unloaded weight under 3,500 pounds – $10,000 Surety Bond

Utah Car Dealer Bond Requirements

The Motor Vehicle Dealer (MVD) Surety Bonds for Utah motor vehicle dealers simply break down into cars versus bikes and trailers. This makes it fairly easy for Utah car dealerships to have their surety bond coverage taken care of with little fuss.
  • Dealers of new and used vehicles as well as sellers of large trailers – $75,000 MVD Bond
  • Dealers of motorcycles or small trailers – $10,000 MVD Bond
In Utah, the definition of a small trailer for the purposes of the surety bond is an unloaded weight of between 750-1999 pounds. We can supply a fast quote for either of these MVD bonds over the phone or via request on our website.

Idaho State MVD Bond Requirements

If you have ever driven through Idaho and seen the sheer amount of rock and gravel, you would understand why it is called The Gem State. But this combination of mountain and desert makes Idaho a place where having a solid truck is essential, so auto dealerships are a good investment. As it is in Nevada, the auto dealer bond requirements are broken down into two camps: cars and trucks versus the smaller recreational vehicles and trailers. Both types of MVD Bonds are available directly from BuySurety.
  • For New and Used Motor Vehicle Sales – $20,000 MVD Bond
  • For Motorcycle, ATV, Utility Vehicles, Campers and Snow Machine Sales – $10,000 MVD Bond

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Commercial Bonds in Legislature during 2012 for the State of Idaho

Written by JoAnn Smith on April 9th, 2013. Posted in Idaho, Performance Bonds, Surety Bond Blog

Idaho State Seal
April 9, 2013 – There were two bills that were passed in the Idaho Legislature recently that will affect commercial bonds in that state. One was a house bill that will require insurance administrators to post a bond when filing a hardship exemption for their financial statements that will allow them to submit those statements without audit. The second bill was passed in the Senate and lowered the amount of the bond that will continue to be required from public officials of the Idaho Energy Resources Authority. Both bills went into law on July 01, 2012.

House Bill No. 420: Miscellaneous Bond—Insurance Administrators

House Bill 420 allows the application of a hardship exemption for insurance administrators that will allow them to submit unaudited financial statements for their licensing requirements. If they choose to apply for this hardship exemption they must then post an Administrator Surety Bond to protect the insurer as well as any covered person against losses resulting from the insurance administrator’s fraud or dishonesty. This surety bond should be posted in an amount that is 10% of the funds handled by the administrator or $20,000, whichever is the greater amount. The current requirement for administrators of self-funded plans to post bonds remains intact. The result is that self-funded plan administrators will be required to post both of these bond requirements when they provide unaudited financial statements. This bill was enacted on March 27, 2012 and went into effect on July 1, 2012. Full details on Idaho House Bill 420 can be found at the link provided.

Senate Bill No. 1335: Public Officials

A senate bill was enacted that would reduce the amount of the Idaho Energy Resources Authority requirement of posting of a public officials surety bond from the current $1 million down to $500,000. This new bond level is in regard to the Idaho Energy Resources Authority public offices of secretary, treasurer and any other executive officer of the Authority. The Senate Bill 1335 was enacted on March 27, 2012 and the law went into effect on July 2, 2012. For a look at the complete details of Senate Bill 1335 please follow our link to the legislative site.

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