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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Nebraska, South Dakota and North Dakota DMV Bond Requirements

Written by JoAnn Smith on October 12th, 2013. Posted in License and Permit Bonds, Motor Vehicle Bonds, Nebraska, North Dakota, South Dakota, Surety Bond Blog

If there is anything that Nebraska, South and North Dakota have in common it is wide open spaces and an independent frame of mind. But when it comes down to the requirements for a DMV bond for auto dealerships, these three states have quite different legal requirements. If you have been considering opening up an auto dealership in Nebraska or looking at expanding your dealership in either North or South Dakota, you might want to review the legal requirements for surety bonds we have listed here.

Nebraska Auto Dealer Surety Bonds

Luckily for many auto dealers, you can do most of the paperwork for your DMV license online in Nebraska. They will want to know if you are selling used cars or new cars, but the requirements for a surety bond are the same regardless. You will need to post a $50,000 DMV bond with your licensing as part of the requirements. Besides the bond, all you are required to submit are:
  • The name and contact information for the owner of the business
  • If there are partners in the business, their names and contact information
  • Where the business will be located, how big it will be and it’s hours of operation
  • Whether you plan to sell used vehicles, new vehicles or both

South Dakota Auto Dealer Bond Requirements

In South Dakota they are a bit more particular about what type of vehicle you plan to sell when it comes to your DMV licensing and the DMV bond that will accompany it. Maybe it is all those presidential faces looking down from Mt. Rushmore, who knows? In any event, you can’t even advertise a business that sells these things without a license and the surety bond that goes with it. Private sales are fine, but if you plan to open any kind of vehicle dealership in South Dakota, here are the rules:
  • If selling mobile homes, new autos and/or used autos – $25,000 surety bond
  • If selling boats – $20,000 surety bond
  • If selling trailers that are at least 2,000 pounds – $10,000 surety bond
  • If selling motorcycles and snowmobiles – $5,000 surety bond

North Dakota DMV Surety Bond for Licensing

It seems that the DMV in North Dakota like to keep things simple. They use the same licensing form for all types of dealerships. It doesn’t matter if you want to sell new vehicles, used vehicles, motorcycles, motor homes or trailers. They all require the same form, and they all require a $25,000 DMV surety bond with that form. The licenses all will expire on December 31st each year and will need to be renewed.

Get Your DMV Bond Quickly

Looking for a quick and easy way to get that DMV surety bond for your dealership? BuySurety can help you out with a fast phone call. Contact our offices today through our website and let them know what you need. Not sure? We can help with that too. Just tell us what state, what kind of license and we will walk you through the rest.

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Surety Bonds for Gas and Oil Leases Go Through Changes

Written by JoAnn Smith on June 14th, 2013. Posted in Alabama, Alaska, Latest News, Mississippi, Nevada, New York, Pennsylvania, Reclamation, Mining and Removal Bonds, South Dakota, Surety Bond Blog

     gas and oil exploration surety bonds
*Gas and oil leases need surety bonds*
In the recently completed state legislative sessions, quite a few states have made legislative revisions to how oil and gas lease procedures and their attendant performance bonds are handled. The majority of the bills reflect the growing interest in using hydraulic fracturing as part of the gas and oil extraction process. They also reflect the growing demands of environmental concerns regarding the extraction industry. Many bills involve ensuring reclamation of the surface lands upon plugging of old wells. Links are provided to legislative online reports as well as BuySurety’s surety bond pages for more information on these specific surety bond types.

Alaska Surety Bonds

In Alaska legislature, Senate Bill 96 and House Bill 198 have both been scheduled for a hearing with their respective Resource Committees. Both of these bills will revise current laws for oil and gas leases by providing extensions that are conditional upon the posting of a performance bond.

Alabama Surety Bonds

The Alabama Legislative House introduced House Bill 503 that would allow surface mining operations that own abandoned wells to recover oil from oil sands upon the posting of a reclamation bond. This bond would provide a security that ground surfaces disturbed by the oil sand recovery would be reclaimed per written agreements.

Mississippi Surety Bonds

The House and Senate of the Mississippi Legislature have both adopted a conference report that is the basis for House Bill 1698 regarding oil and gas wells. Operators of horizontally drilled wells and recompletion wells will be required to post a $1 million performance bond at the time that they obtain a permit for the well. The bond will cover compensation for the repair and maintenance of roads damaged by drilling traffic in the county where the wells reside.

 Nevada Surety Bonds

The State of Nevada’s Senate Bill 390 will authorize hydraulic fracturing for gas and oil drilling in the state. As part of the permit process, the Division of Environmental Protection may require a performance bond to ensure that dry or abandoned wells are plugged and that wells causing waste are repaired.

New York Surety Bonds

The New York Senate has introduced Senate Bill 24 and the New York Assembly has introduced Assembly Bill 6365 to regulate the introduction of the hydraulic fracturing method for natural gas drilling. Well operators will be required to furnish a reclamation bond that will be non-recoverable and bankruptcy proof to guarantee the costs of restoring the drilling site. In addition, New York Senate Bill 4028 and Assembly Bill 3634 will establish the requirement of a reclamation bond to cover the costs of addressing contamination of natural gas sites. The bond would be directed by the Department of Environmental Conservation and would be tied to the owner’s or operator’s cleanup and decontamination performance.

Pennsylvania Surety Bonds

The Pennsylvania Senate has introduced SB 780, a bill that will require a surface use agreement between surface owners and the gas or oil well operators. A surety bond for $10,000 per well could be posted for the benefit of the land owner in lieu of the agreement. A blanket bond of $25,000 to cover all well locations, if in a readily payable form, would also be permitted.

South Dakota Surety Bonds

The enactment of South Dakota’s Senate Bill 1 has changed the requirements of the performance bonds currently required for oil and gas wells plugging. The new law increases the bonds for wells less than 5500 feet to $10,000 per well or a blanket bond $30,000. For wells over 5500 feet deep the surety bond has increased to $50,000 with a blanket bond of $100,000.

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South Dakota and Virginia Fidelity Bond Legislature

Written by JoAnn Smith on March 20th, 2013. Posted in Indemnity Bonds, Legislation, South Dakota, Surety Bond Blog, Virginia

     surety bonds for home healthcare services
Home Healthcare in Virginia
March 20, 2013 – The Houses for both South Dakota and Virginia had legislature introduced during the first quarter of 2013 that would have an impact on the use of fidelity bonds for business. In South Dakota the bill dealt with the cancellation notices of fidelity bonds that are required for trust companies. The Virginia legislature was in regards to Home Care Organizations and the requirements for fidelity bonds as insurance for dishonest employees. Both bills are currently under review as of February 2013.

South Dakota Fidelity Bond Legislature

 

South Dakota House Bill 1056 – Cancellation of Fidelity Bonds for Trust Companies

The passage of South Dakota House Bill 1056 will revise the period of time that a surety bond or insurance company must use to give notice of cancellation or renewal from 90 days to 60 days. This bill concerns the cancellation or renewal of fidelity bonds that are required under law for trust companies.   This bill was introduced to the House and first read on January 08, 2013. It then had a hearing with the House State Affairs Committee where it was passed with amendment. The bill then went to the Senate where it was referred to the Senate State Affairs on January 24, 2013. For a reading of the entire South Dakota House Bill 1056 as it currently exists, please follow the link provided in this bill summary.  

Virginia Fidelity Bond Legislature

 

Virginia House Bill 1445 – Home Care Organizations

Home Care Organizations will see changes to their current bond requirements with the introduction of Virginia House Bill 1445. The current requirement of a liability insurance policy and a surety bond will be replaced with a requirement for the liability insurance policy and instead of a surety bond an employee dishonesty policy or blanket fidelity bond will be required. The bill was first introduced into the House on December 27, 2012 and was referred to the Committee on Health, Welfare and Institutions.   It was amended and agreed to by the committee on January 24, 2013 and passed by the House on January 25, 2013. It went to the Senate and was referred to the Committee on Education and Health on January 28, 2013. It passed the Senate on February 11, 2013 and was enrolled in the House on February 13, 2013 where it passed both Senate and House. For a reading of the completed text for Virginia House Bill 1445, please follow our link to the legislative site as provided.  

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