Archive for June, 2013

Surety Bond Deadlines Coming Up Soon

Written by JoAnn Smith on June 26th, 2013. Posted in Alabama, Florida, Illinois, Latest News, License and Permit Bonds, North Dakota, Surety Bond Blog, Texas

     surety bond deadlines
Surety bond deadlines – Are you bonded?
From time to time we like to post a reminder that certain surety bond deadlines are coming up soon. Here are some key surety bond types that have expiration dates coming up soon, generally within the next 60 days. As always, if you have any questions of these or other surety bonds, be sure to give us a call. South Carolina – if you have a contractor’s license in the state of South Carolina your surety bond for that license is up for renewal when the license expires on June 30. This includes South Carolina contractors that have taken out surety bonds in the amount of $5000, $10,000 and $15,000. Be sure to contact us before July to ensure that your contractor’s license bond requirements are taken care of. Texas – if you need a permit bond for super heavy or oversize equipment, that renewal is coming up soon. August 31 is the deadline for renewal of the permit and the surety bond with. North Dakota – If you’re a fundraiser in state of North Dakota, then you need to remember that the fundraising bond that you are required to have is due to be renewed on September 1. Alabama – if you’re an auto dealer in the state of Alabama then you need to be aware that auto dealer bonds in that state need to be renewed by September 30. In addition, fundraisers in the state of Alabama will need to renew both their license and the surety bonds that go with them by September 30 as well. Illinois – Plumbing contractors will need to remember to renew both their license and the licensing bonds that go with them by the end of September. Florida – For anyone that is growing citrus in the sunshine state of Florida, it is good to be aware that citrus fruit dealer licenses and the agriculture dealer bonds that go with them will need to be renewed by the end of July. The amount of your surety bond will depend on the number of boxes that you sell, just as in years past. While these are by no means an exhaustive list of the surety bonds, license bonds and other types of bonds needed that are due for renewal we hope that this information is helpful. Many types of surety bonds connected to licensing or permits often need to be renewed on an annual basis. If you are unsure when or even if your bond needs to be renewed, be sure to give as a call.

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State Healthcare Navigators Will Need Surety Bonds

Written by JoAnn Smith on June 21st, 2013. Posted in Commercial Bonds, License and Permit Bonds, Surety Bond Blog

     Navigator Surety Bonds
Healthcare Navigators will need to be bonded
State healthcare navigators will be key players in the new healthcare system that will be required beginning January 2014. These navigators will be responsible for guiding the millions of new healthcare recipients through an unwieldy and probably confusing program. Out of the 50 states, 34 will be using the state healthcare insurance exchange programs. These programs will be required to provide state healthcare navigators to come to the aid of anyone who is interested in signing up for the new healthcare through the exchange programs. Click here for a list of the state’s who have been approved to run state healthcare insurance marketplaces. Obviously, with the amount of new information that many navigators will need to master, these state healthcare navigators are going to need to be bonded. In fact, there is legislation requiring that navigators post surety bonds currently being considered in many of the states. For a look at the current legislation that is in process in the states that have insurance exchange programs, please review the list below.

Missouri Senate Bill 403, 4O1, and House Bill 701

These bills will establish a state health exchange. Navigators for the exchange must be able to post a surety bond. The Director of the Department of Insurance for the State of Missouri will establish the amount of the surety bond. The posting of a surety bond is to protect the public against errors and omissions, negligence and any other wrongful acts of the navigators.

Nebraska LB 568

This bill, which has been placed in the general file, will establish for the State of Nebraska a health insurance exchange program. The bill will require a navigator be available to the public. It will also require this navigator to post a surety bond. This surety bond will be part of the navigators licensing.

Utah House Bill 160

The Utah legislation has passed a bill that will require navigators who are assisting the public in the Utah exchange insurance program to post surety bonds. Navigators whose position is strictly limited to assisting in enrollment are exempt from the requirement of surety bonds. Those navigators will be covered under the Federal grant program.

Surety Bond Requirements Already In Place

In addition to these three bills quite a few states have already passed bills regarding navigators for their state health exchange programs. The states where these bills have been passed and navigators are already required to post surety bonds either as part of their licensing or separately are:
  • California
  • Colorado
  • Connecticut
  • District of Columbia
  • Hawaii
  • Idaho
  • Kentucky
  • Maryland
  • Massachusetts
  • Minnesota
  • Nevada
  • New Mexico
  • New York
  • Oregon
  • Rhode Island
  • Utah
  • Vermont
  • Washington

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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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Surety Bonds Kickstart Roadwork after Ballenger Bankruptcy

Written by JoAnn Smith on June 7th, 2013. Posted in Performance Bonds, Surety Bond Blog, Texas

     Ballenger, surety bonds
Surety Bonds Saved Ballenger Projects
June 07, 2013 – If you ever needed an illustration why surety bonds are so important to the construction industry, particularly when it comes to ensuring the completion of a project, Ballenger Construction is the poster child for it. You may recall we reported on the Texas construction company’s money woes that led to bankruptcy this past May. Back then, we reported how surety bonds, in several projects, were going to be used to complete some construction work. In fact, we reported earlier how surety bonds were used to keep construction projects in financial trouble moving forward. Bankruptcies of several large construction companies, along with other problems caused by the difficult financial atmosphere in the past year, have led to surety bonds coming into play more frequently than ever.

Texas Roadwork Gets Completed

One of the victims of the Ballenger bankruptcy was the roadwork scheduled to be done near Harlingen Texas. The roadwork had been designated as part of a larger set of projects to take care of infrastructure repair by the state. However, before the work was barely begun, problems began to appear. The company that was awarded the road resurfacing project, Ballenger Construction, filed for Chapter 11 protection in December. The work was begun but they were unable to move forward. Luckily, the company had, per any state-funded project, provided performance bonds to ensure their ability to fulfill their end of the contract. When the bankruptcy prevented this, the surety company took over the project and found Foremost Paving to take over. Reports are that the company is in place, having completed the preliminary survey work on overpasses. They have already gone over some work that Ballenger began before December’s bankruptcy and repaired any potholes or other resurfacing work that needed to be done. Predictions are that all the roadwork that was halted in December will be completed by the end of this year.

Second Project Taken On Through Surety Company

A second project north of Harlingen on road barriers was also bid and won by Ballenger last year. That work also fell under the auspices of the surety bond company. They have brought in Contract Resolution Group (CRG) to complete that project. This project was never begun by Ballenger and will proceed with CRG soon.

Get the Bonding You Need

Is your company considering bidding on a government-paid project this year? All of these types of projects require performance bonds and some even may require bid bonds as part of the bidding process. Be prepared by finding out how you can qualify quickly and easily for either bond type by asking our helpful customer support staff. At BuySurety we are always ready to answer all your question of any surety bond needs.

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