Public Official Bonds Missing in New Mexico

Written by JoAnn Smith on June 4th, 2014. Posted in Court Bonds, Indemnity Bonds, Latest News, New Mexico, Retail and Professional Services Bonds, Surety Bond Blog

     public official bond      
Do they need public official bonds in New Mexico?
A recently organized citizen’s committee is steamed about the lack of public official bonds for New Mexico officials and they aren’t about to be quiet about it. In fact, they are ready to be down-right noisy.
 
The center of the storm is in San Juan County, a 14,000 kilometer area with a population of a little over 130,000 people. But the size of the area isn’t what is in contention; it is their belief that public official bonds are required by the state’s constitution.
 

Required to Give Their Bond

According to Ron Lyman, President of the Citizens Government Oversight Group, the New Mexico state constitution requires all public officials to not only take an oath of office but to also post a bond, which he says means individual public official bonds such as the ones that BuySurety sells. But the County Commissioner doesn’t agree that individual surety bonds are needed. He says that the blanket bond that was taken out for the entire commission is sufficient. Blanket bonds have been used in many instances where a surety bond is required but one bond that covers all members of a group, such as the state or county commission, can be posted to cover all members of the group. Lyman says that the blanket bond is not sufficient and that each individual commission member must have their own public official bonds.

A Question of Interpretation

This is not the first time that the question of this particular part of the constitution has been brought up by this group. In fact, New Mexico Secretary of State has said that the same handful of people bring the subject up at his office every year for the last few years. The state has even brought the question before a group of magistrate judge candidates to find out their opinion, but none wanted to venture one. Some claim that the requirement is a left-over vestige of the old days when New Mexico was still a territory and lawmen of any kind were required to be bonded individually to protect citizens. But in the end this may need to be settled one way or another; as the citizens group is not about to pick up their ball and go home. Either the commission members need to invest in public official bonds or the New Mexico constitution needs a revision. Either way, it will take some time before anyone can agree on next steps.

Get Bonded at BuySurety

Of course, not every case of public official bonds or other surety bonds is this complicated. In the same manner, BuySurety can assure you that getting bonded for any kind of surety bond from public official bonds to auto dealer bonds is fast, easy and within your budget. Got questions? We have answers. Come by our site or call our helpful customer service reps today. Because when it comes to surety bonds, BuySurety has got you covered.

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Auto Dealer Bonds – What Dealers Need to Know

Written by JoAnn Smith on May 9th, 2014. Posted in Latest News, Legislation, License and Permit Bonds, Retail and Professional Services Bonds, Surety Bond Blog

     auto dealer bonds
Looking for auto dealer bonds?
While auto dealer bonds may be a familiar requirement for most car dealership owners, do you really know the facts about them? You probably are aware that in order to get licensed you must have an auto dealer bond. But do you know why? Surety bonds, particularly any type of license surety bond such as the ones required for the car dealership industry have a good reason for existing. The truth of the matter is; these auto dealer bonds protect you and your business just as much as they do your customers. Here are a few facts you may not know about those pesky auto dealer bonds that the state keeps requiring you to make a part of your licensing, and why you should be glad you have them.

Surety Bonds Are Part of Your License

Yes, you must be bonded in order for the business to get a license. This is true in just about every state, the lone exceptions being Delaware, Ohio and Vermont. But in every other state, if you want to have a license to sell cars, you must also be bonded. This protects your business from having to compete with fly-by-night companies and helps to protect your industry from having a bad reputation.

Auto Dealer Bonds Don’t Protect You

Many car dealership owners think of their surety bond requirements as protection for their business against client legal claims. However, this isn’t true. Your car dealer bonds are there to act as a line of credit when performance issues arise that can cost your dealership huge out of pocket costs. When customers make work-performance claims or file for fraud, your surety bonds ensure that you are covered for those costs and can continue your business. The same is true for charges of unethical conduct. This is why although they don’t protect you from these charges; they are an important tool to keep your business going when these kinds of issues need to be resolved.

Understand Your Legal Obligations

Because that surety bond you hold is a legally binding document, it is important to understand what it requires from you. This means that before you proceed to get bonded for your business, it is essential that you read and understand the obligations that come with that auto dealer bond. The law really doesn’t care that it was accidental when you overstep your boundaries and default on your contractual obligations. Are there tasks you are required to perform as part of your licensing? If so, not doing them means you are invalidating your surety bond as well. Read and understand your legal obligations that come as part of your bonding.

Keep Your Surety Bond Current

Letting your surety bond lapse when it is part of your licensing requirement can mean losing your license, your ability to do business and might even result in legal action. Different states require you to renew your auto dealer bond at different times. If you aren’t sure, you can always contact BuySurety to find out when your state requires you to renew your auto dealer bond as part of your licensing requirements.

Be Prepared for the Cost of Bonding

Often when someone is new to the auto dealer industry, they are not prepared for the extra costs of the business, such as the cost of auto dealer bonds. If you don’t have an extensive credit history, or if you have a low credit rating, that will affect your price. It doesn’t mean you cannot get bonded, but you may have to pay more for the surety bond the first few years until you have established your business and its credibility. The bottom line is that in order to run a successful car dealership, you will need to get bonded with an auto dealer bond. If you understand how that surety bond requirement works and what you need to do to qualify, getting bonded with an auto dealer bond is not difficult. Have questions? Contact BuySurety and talk to one of our friendly informative customer service people today. We can answer your questions about auto dealer bonds or any other type of surety bond product and help you to ensure your business is legal. BuySurety has been helping auto dealerships, small business and anyone who needs surety bonds for their home, life or business for over two decades, and we can help you.

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California Car Wash Bond Now Required

Written by JoAnn Smith on February 26th, 2014. Posted in Commercial Bonds, License and Permit Bonds, Retail and Professional Services Bonds

     california car wash bond
New regulations for California car washes
Does your local car wash company know about the new regulations regarding a California car wash bond? Owners of car washes in California have been required to post a surety bond if their business is a non-union car wash since 2004. The difference is that the amount of that surety license bond has been increased in an industry largely made up of smaller mom-and-pop companies.  In California, home to a vast car culture that certainly needs to be cleaned regularly, car washes are everywhere and have been largely non-union. This means that the majority of car wash owners will need to make sure they have the correct license bond for their car wash company before they renew their license.

An Unexpected License Bond Increase

In the past the requirement for a California car wash bond was $15,000 as part of their license for the business. That changed this past October when California legislature passed a bill to increase the license bond amount to $150,000. The law for this change went into effect January 1, 2014. This new bond requirement is part of a movement in California to protect car wash workers from unscrupulous employers.

Worker Protection with Car Wash Surety Bonds

In 2004 a car wash worker law was passed that created a general fund for workers found to be underpaid or otherwise exploited by their employers. The funding for this came from the surety bond amounts paid by companies at the time of licensing. This is why car wash companies in California that have union representation are not required to pay into the fund via this license surety bond. Although most owners were aware that the current law would “sunset” at the end of 2013, an increase in the amount of the surety bond was unexpected. Language in the bill suggests that the increase was to help cover costs already incurred by draws on the fund.

Finding Your Car Wash Bond Fast

While the new law will obviously not affect those thousands of car wash owners who operate under the radar, legitimate car wash companies as well as anyone running a car detailing company will need to qualify for the new $150,000 surety bond. For many small companies this could prove difficult. Luckily for them BuySurety has been insuring a broad range of companies, both large and small, for over two decades now. We can help you to qualify for your California car wash bond. Why not come by the BuySurety site and talk to one of our knowledgeable and helpful customer service people today? Get your car wash surety bond in place now and make sure your company stays legal and in business with a surety bond from BuySurety.

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Thinking of Running for Office? Get Qualified for Public Official Bonds First.

Written by JoAnn Smith on February 21st, 2014. Posted in Latest News, License and Permit Bonds, Retail and Professional Services Bonds, Surety Bond Blog, Texas

     public official bond      
A public official bond can often be a part of running for office.
When it comes to holding a public office, one of the initial qualifications for many positions is taking out a public official bond as part of that office. But what if you have something in your past that will prevent you from meeting that surety bond requirement? Can you even take office then? This is the kind of question that anyone considering running for office needs to consider, and that even includes the office of County Clerk.
 
This information came home for veterinarian Tiffany Olsen Pearson lately when she made the decision to run against incumbent Renee Calhoun for Randall County Clerk in Texas. It didn’t matter that the problem was in dispute, that it existed at all could be grounds for Olsen to not be bondable, according to several experts in the matter. That could be a big obstacle to taking office should she get elected.

Don’t Mess with the IRS

It probably doesn’t help her situation any that the reason she may be considered ineligible for public official surety bonds is that she is in the midst of an ongoing dispute with the IRS over a tax lien. There is a tax lien against Pearson and her husband regarding a 2009 return. The government organization claims she owes them a little over $20,000 in back taxes along with the penalties and interest charged for the unpaid taxes. Some of this has been paid down but the couple is currently in dispute with the IRS over the remainder. It is this final amount that may in the end be her undoing if she cannot find a surety company willing to cover her surety bond with the lien still intact. The chances for that don’t look good right now.

Public Official Bonds Protect Taxpayers

This situation is a good example of why public official surety bonds are so important when it comes to anyone in public office. The intention is to protect the taxpayers should someone in office fail to comply with the regulations pertaining to their office. As a County Clerk, whoever gains the office would be recording deeds and birth certificates which entail handling money. To do so in the public trust means they must be “bondable”, able to get bonded for a public official surety bond. But with the current lien by the IRS against Ms. Pearson, that is in doubt.

Know if You Are Bondable

Do you know if you are bondable right now? While the case above is one where the person running for office should probably have checked first, we don’t always know ahead of time when a surety bond might be part of a job or situation. Contractors in the construction industry use bonds to bid on government projects, ensure they can fulfill the project and even guarantee that their subcontractors will be paid. Car Dealers must be bonded to ensure the public that what they say they are selling is true. Some folks still call these kinds of bonds “lemon law bonds”.
 
Many types of business licenses require a license bond as part of the licensing process to ensure that the business follows the regulations of that industry. Whatever kind of business you are in, you may need a surety bond at some time to do it. Are you bondable? BuySurety has been providing a wide array of surety bonds to both individuals and businesses since 1998. Find out just how easy it is to get bonded when you discuss surety bonds with our knowledgeable and helpful customer service representatives today. Whether you need a public official bond to run for office or a performance bond to take on that construction job, we have the right bond for you.

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Are Pre-Buy Service Surety Bonds in New Hampshire’s Future?

Written by JoAnn Smith on January 15th, 2014. Posted in Bond Applications, Bond Types, Commercial Bonds, Latest News, New Hampshire, Retail and Professional Services Bonds

pre-buy service surety bond
Why heating oil suppliers need a pre-buy service surety bond
This winter’s Arctic Blast has done more than simply chill the great outdoors. In New Hampshire where many consumers found themselves delayed or sometimes required to accept shortages on the delivery of pre-paid heating oil, it chilled their relationship with the heating oil supplier.
 
In response, the state’s Attorney General’s Office is considering changing requirements for pre-paid services because of a backlash of complaints after the shortage. The changes will probably include a requirement for pre-buy service surety bonds for all businesses that offer that option.
 

Pre-Buy Service Surety Bonds a Solution

The possible changes became obvious when Assistant Attorney General James Boffetti stated in a news conference that the current situation of pre-bought services that left consumers out in the cold was ″grossly inadequate″ and did not meet the consumer’s needs. In order to ensure that customers who pre-pay for their goods and services, such as heating oil, are met a pre-buy service surety bond could be required in the future.

Arctic Weather Creates Emergency

Over 40 complaints were received by the Attorney General’s office for delayed or shorted delivery of heating oil during the recent storm. Some consumers were left without any heating oil in record low temperatures. A combination of holidays leaving companies short of drivers, poor road conditions making deliveries difficult or slow and an electrical fault at one of the major providers were sited as contributing to the problem.

Service Businesses Need Surety Bonds

In reality, any business that offers goods and services in a pre-buy package should be considering a pre-buy service surety bond as a form of insurance for their business. As this winter storm illustrates, anything can happen unexpectedly that interferes with the ability of a company to deliver as planned. If your business provides goods or services through a contract that includes a pre-payment and you need a surety bond as part of your business, find it fast with BuySurety. We have been providing businesses large and small with the surety bonds they need to be successful and secure since 1998. Find out how easy it is to find and buy the surety bond you need to keep your company secure at BuySurety today.  

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