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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Missing Private School Bonds Close Milwaukee Tech School

Written by JoAnn Smith on January 13th, 2015. Posted in Wisconsin

     school bonds
School Bonds can be required
An issue over the School Bonds required by the state has created havoc at a Milwaukee voucher-program high school. Because these important surety bonds have not been supplied, Milwaukee’s Travis Technology High School has had to close its doors until the matter is resolved. The voucher-paid operator of the school is barred from continuing to receive the tax money from the voucher program until it complies with state regulations. These regulations include requiring voucher-supported schools to supply a School Bond to protect the state against bad business decisions by the operator. These include the kinds of decisions that could close a school after tax-supplied vouchers had been financed for the year.

School Bonds Create Low Income Haven

Not everyone who wants to attend a private school can afford it. But taxpayer-supported vouchers make many low-income students able to attend private schools even if they cannot afford the tuition. To protect the state from the failure and subsequent loss to taxpayers for tuitions paid when schools are closed due to operator failures, surety bonds are required for all voucher-supported schools. The vouchers are supported by taxpayers and help cover the operating costs of private schools, generally religious-based schools, for low income students who would benefit from such schools. Generally these schools would charge a special tuition to cover such operating costs. Milwaukee’s highly successful voucher system, The Milwaukee Parental Choice Program, has been running longer than any other voucher system in the country. It has created alternative schooling options for low and middle-income students since 1990.

Missed Deadlines

In addition to missing the deadline to submit the School Bonds for the high school, the operator has been under review for questions regarding the number of family members of the founder working at the schools. A recent review revealed that several teachers did not have a Masters Degree (a requirement in Minneapolis) and the two principals of the business were pulling six figure salaries while parents complained of a lack of textbooks at the schools. All of these allegations are currently being reviewed in addition to the missing School Bonds.

School Bonds Guarantee Performance

All of these complaints may well in the end be resolved. However, this situation is a good example of why surety bonds in the form of School Bonds are required by most municipalities for all privately run schools. These bonds will help to protect the taxpayers from loss and guarantee closer scrutiny of the way a private school is run to ensure students are receiving the best possible education.

Find School Bonds and other Surety Bonds at BuySurety

So many businesses these days require surety bonds that it is always a good idea to check first when stating a business in a new industry. Just as many municipalities and states require School Bonds from any private school, many public officials are required to post a Public Officials Bond and driving schools are required to post a Driving School Bond. Discover if your business needs to be bonded by talking to one of our friendly and knowledgeable customer service reps today. Get bonded at BuySurety and find out just how fast and easy it can be.

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Wisconsin Motor Vehicle Dealer Bonds Increased

Written by JoAnn Smith on May 5th, 2014. Posted in Contract Bonds, Latest News, Legislation, License and Permit Bonds, Motor Vehicle Bonds, Performance Bonds, Surety Bond Blog, Wisconsin

     motor vehicle dealer bonds      
Wisconsin motor vehicle dealer bonds are changing
Upcoming legislative changes will affect both the selling and registration of motor vehicles in the state of Wisconsin. Wisconsin Assembly Bill 262 will require motor vehicle dealers to increase the dollar value of the motor vehicle dealer bonds. These are currently part of the licensing procedures for car dealerships in Wisconsin. In addition, that same bill will also introduce a revision to the current requirements for contractors hired by the state Department of Transportation (DOT) to process title and registration.Both new requirements will be a part of this bill, which has just passed legislation.

Wisconsin Car Dealers New Requirements

If you want to sell vehicles in Wisconsin you have always been required to post a license bond or MVD bond as part of the licensing procedures for the dealership. This is standard in just about any state. But the recent passage of AB 262 means that for dealers the price of business has just gone up. Prior to this bill, dealerships were required to post a $25,000 surety bond for each dealership they owned. With this new bill that DMV Bond amount has increased to $50,000. All other requirements related to the licensing of the dealership remain the same.

Surety Bonds for DOT Service Subcontractors

This new bill also addresses Wisconsin DOT’s hiring of contractors to facilitate the registration and licensing of vehicles. In the past when DOT hired contractors for this purpose, they were required to post a surety bond for $10,000 for handling registration renewals or a $25,000 surety bond for title and original registration. However, as more contractors hire subcontractors to handle these jobs, the Wisconsin DOT has seen the need to include the subcontractors under this basic surety bond umbrella. With the passage of AB 262 contractors that hire more than 100 subcontractors will need to post a $2,000 Title Agency Bond for each subcontractor handling title and registration under their auspices.

Get Motor Vehicle Dealer Bonds Quickly

Requirements for motor vehicle dealer bonds, title agency bonds and other types of DMV bonds can change from year to year. That is why it is so important to stay abreast of all the changes your business may require when it comes to your surety bond needs. Whether you sell cars in Wisconsin, register them for DOT or simply need a bid bond for that upcoming government project, it helps if you have a reliable surety bond dealer. BuySurety has been providing motor vehicle dealer bonds, bid bonds and hundreds of various surety bonds to businesses large and small for over twenty years. Visit our BuySurety website to get a fast price on the surety bond your business needs. Because you can never be too secure when it comes to the changing landscape of surety bond requirements.

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Do You Know Your Professions License Bond Requirements?

Written by JoAnn Smith on February 11th, 2014. Posted in Bond Types, Commercial Bonds, Florida, Kentucky, Latest News, Legislation, License and Permit Bonds, Michigan, Surety Bond Blog, Wisconsin

     license bond requirement      
Know your license bond requirement for your industry.
Whether you are a tradesman, a salesman or a sub-contractor in the building industry, understanding the license bond requirements for your industry can be a crucial part of any job. Almost any kind of business that involves providing a service or handling money probably also requires a surety bond of some kind. Usually this will take the form of a surety bond that is part of the licensing process for the business or trade. But the laws regarding exactly what that license bond requirement will cover and if it is even necessary can change. Keeping up with the shifting legal requirements for a license bond in your business can be difficult. While by no means an exhaustive list, here are some changes that have gone through legislation recently that will affect the license bond requirements in several industries and states.

Florida Title Insurance Agents

In the past, agents have been required to post either a license and permit surety bond or some other type of security to cover any losses incurred if an agent should violate their contract. This bond or surety of at least $35,000 was posted by the agent, not the agency. But a law was passed in 2012 that required the agency to also post a bond for this type of situation to benefit the appointed insurer. Now Florida House Bill 321 and Florida Senate Bill 570 will change this. It will eliminate the individual agent requirement, so that only the agency will be required to carry a license bond of at least $35,000 to cover any violations of the contracts regarding title insurance.

Kentucky Electrical Inspectors

As the law now stands, all electrical inspectors in Kentucky must post a $5,000 surety bond as part of their license. However, with the passage of Kentucky House Bill 38 introduced to legislature in January of 2014, certain Kentucky electrical inspectors would become exempt from this requirement. The exemptions to the need for a surety bond would include employees of the following:
  • City
  • County
  • Urban-county
  • Charter County
  • Unified local government
  • Consolidated local government
  • Any combination of governing entities
This exemption is only for work that has been authorized by the Department of Housing, Buildings and Construction for the administration and enforcement of its regulations. It should be noted that contractors, when hired by these organizations, will continue to be required to produce the license surety bond. This change for employees acting in this capacity will be effective upon the passage of HB38.

Wisconsin Mortgage Professionals

Currently in Wisconsin, individual mortgage professionals must have a license bond that does not exceed a value of $50,000 as a part of their licensing requirements. It is mandatory in order to make supervised loans and to act as a mortgage loan originator. But with the passage of Wisconsin House Bill 678 each individual branch location of a mortgage company will also have its own $50,000 license bond requirements in addition to the license surety bond for individuals.

Michigan Alarm System Contractors

If you work in the state of Michigan as a contractor that installs alarm systems, then you probably already know that this state requires all alarm system contractors to post a license bond in the amount of $25,000 as part of your licensing requirement. Currently that license bond requirement includes taking out this bond “in the name of the people of the State.” This will be changed with the passage of Michigan Senate Bill 619 to reflect that the surety bond is payable to the Department of Licensing and Regulatory Affairs for the benefit of the people of the state. The amount of the bond requirement will not change.

Knowing Your License Bond Requirement Needs

While most of us like to think we know all the requirements for licensing in our chosen profession, it can be hard to stay on top of all the legislative changes. Surety bond amounts can change or not even be required at all, which may mean you are spending more money than you need to in order to meet regulations. Worst yet, you could be facing charges and fines if you don’t have a license surety bond when you should. Know what you need and when you need it by contacting our knowledgeable and helpful customer service at BuySurety today. Find out what changes in legislature have made your license more expensive or even more complicated. We have been helping out businesses large and small find out what kind of surety bond requirements their business needs to fulfill since 1998 and we can help you. Don’t take chances with your legal standing, find out what type of surety bond you need and make sure it is current by contacting BuySurety today.

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Auto Finance and Auto Dealers Facing New Surety Bond Laws

Written by JoAnn Smith on December 17th, 2013. Posted in California, Commercial Bonds, Latest News, Legislation, License and Permit Bonds, Motor Vehicle Bonds, Pennsylvania, States, Surety Bond Blog, Wisconsin

     surety bond laws
Has the cost of DMV surety bonds has gone up
Are you current on surety bond laws for your business? Do you know if your costs for DMV surety bonds will still cover you legally? Auto dealerships should be asking these questions as the requirement for surety bonds increase with the value of the cars they sell. There are several bills that are awaiting approval in state legislature that will impact auto dealerships and the financing arrangements that many auto dealers depend on for financial success. States as diverse as California, Pennsylvania and Wisconsin are considering legislative changes that will affect some or all auto dealerships in the coming year. Do you sell cars in any of these states? Do you know the latest laws regarding your DMV surety bonds?

Wisconsin Motor Vehicle Dealers

In the Wisconsin Assembly, surety bond laws in AB 262 are once again on the move as it passes the assembly and will probably be considered in the Senate in the coming year. The bill will require the minimum amount for an auto dealership license surety bond to increase from $25,000 to $50,000. Another change that this bill will see is the surety bond requirements for people that the Department of Transportation (DOT) contracts for title and registration processing services in Wisconsin. As the law currently stands these contractors must post a registration service surety bond for $10,000 if doing registration renewals or a $25,000 registration service surety bond if they will be handling title and original registration transactions. The bill would introduce changes so that when an agent is a subcontractor directly with a DOT contractor with at least 100 subcontract agents, then the contractor can provide $2,000 surety bonds for each subcontractor.

California RV Dealers

The California Assembly continues to consider AB 988, a bill that concerns the licensing and bonding of recreational off-highway dealers in California. Currently they are not required to be licensed and bonded. The bill would change this but although it has passed the Assembly and one committee in the Senate, it has been stalled in the Appropriations Committee. Hearings were cancelled and the bill may have to carry over to 2014.

Pennsylvania Motor Vehicle Sales Finance

A bill in the Pennsylvania House is in the process of rewriting current law regarding the surety bond amount required as part of licensing for motor vehicle sales finance companies. Currently the requirement is for a $5,000 MVD surety bond to be part of the licensing process. This bill would increase the surety bond amount to $10,000 for all sales finance companies. The bill has passed the House and is now with the Senate Appropriations Committee in the Senate awaiting approval.

Know Your Surety Bond Requirements

If you have a business where surety bonds are part of your licensing, bidding or any other element in the daily scope of the job, you need to know if your current surety bonds fulfill requirements. As you can see from our weekly updates, laws regarding surety bond requirements change regularly as the needs of the industry changes. If you are unsure if your bonding is up to date, don’t hesitate to contact us through our website to find out the latest requirements for your surety bonds. Be safe and keep your surety bond requirements up to date with BuySurety.

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