Archive for January, 2014

Surety Bond Companies Save the Day for Municipal Projects in California, Maine and Maryland

Written by JoAnn Smith on January 31st, 2014. Posted in California, Commercial Bonds, Latest News, Maine, Maryland, Performance Bonds, States, Surety Bond Blog

     surety bond companies
Cities need surety bond companies to ensure projects are completed.
In three separate projects involving municipal directed construction, surety bond companies have had to step into the breach to ensure that the projects would be completed. In the Maryland construction project a second contractor agreed to take over a delayed high-school construction project when the original contractor defaulted on their surety bond. The same type of delay happened with a school construction project in Maine except that in this project the surety bond company had to step in and find a second contractor to complete the project. Meanwhile, a community center under construction in California was halted after the city removed the original contractor for several delays. The surety bond company will appoint a new contractor for the city. Municipal Projects Need Surety Bond Companies All three of these projects are a clear sign that although construction on many municipal projects has resumed after quite a few years of dismal finances, many smaller construction companies have proven to not be up to the challenge. While many municipalities want to support smaller local businesses, the need for these companies to supply performance surety bonds to protect city interests is stronger than ever. Surety bond companies can help many small and mid-size companies make the leap to the next big project by providing assurance that they can handle the financial complexities of these projects.

Getting Bonded Important for Growth

If you are a small or mid-size business looking to recover from the recent market crash by attracting new business with local government, make sure your house is in financial order. If you don’t already have the surety bonds in place to allow you to bid on these important new projects, you can find out how to get bonded quickly and easily. Contact our offices through BuySurety and get your company bonded today. Qualify for more lucrative government projects by being pre-bonded by surety bond companies that can work with you to make your business more strategic in today’s recovering marketplace.

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Alabama Considers Three Surety Bond Bills

Written by JoAnn Smith on January 24th, 2014. Posted in Alabama, Commercial Bonds, License and Permit Bonds, States, Surety Bond Blog

surety bond bill
surety bond bills for Alabama are coming
Now that the 2014 legislative sessions have begun, we are beginning to see a few states take action on a number of surety bond bill issues. In Alabama the state legislature is looking in particular at three bills that will affect the uses of surety bonds for businesses that require permits for liquified petroleum gas, operate a vessel in public water or operate a nonpublic school in the grades of K-12. Here are the details.

Liquified Petroleum Gas in Alabama

While the laws on the books today allow a business the option to post a permit surety bond or even post cash instead of taking out an insurance policy when procuring a permit license for petroleum gas, that will soon be changing. With the passage of House Bill 11 and Senate Bill 29 these options will be eliminated. If passed, companies will now be required to take out the appropriate insurance policy and will not be able to use a permit surety bond in it’s place.

Operating a Vessel on Public Waters

There is a bill currently being considered which would now require anyone who either operates a vessel on public waters or who leases a vessel to others for their use on public waters to first obtain a vessel liability bond in the amount of $50,000. They would also be able to obtain an insurance policy or post the cash amount if they chose to not post the surety bond. The surety bond bill would be enacted through Senate Bill 30 to cover liability for injury, death or damage that arose through the operation, maintenance or control of the vessel.

Surety Bond Bill Covering K-12 Schools in Alabama

Currently any school that offers education in private, nonpublic or church schools for grades K-12 in the state of Alabama is required to post a license surety bond for $10,000 as part of the licensing requirements. If Alabama Senate Bill 38 is passed the schools will no longer be required to register for a license nor will they be any longer required to post a surety bond as part of the license. The Department of Education had been requiring the license and surety bond as part of the requirements for these schools that were offered outside of the public school system, but will no longer require then if the bill is passed.

Surety Bond Bills – Finding the Right Surety Bond

As the new year progresses, many states will begin enacting new surety bond bills that may require your business to begin to post surety bonds. When this happens don’t get caught unprepared. If you think that you may be seeing some changes in the surety bond laws for your business, get the information you need to do business right. BuySurety has been providing surety bonds to businesses of all sizes since 1998. Our knowledgeable and friendly customer service people can help you determine just what kind of surety bond bills have passed in your state and business so you are always covered. Don’t take chances with your business, contact BuySurety today and get bonded to stay legal.  

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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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New Surety Bond Requirements for 2014 in Minnesota, Ohio and California

Written by JoAnn Smith on January 8th, 2014. Posted in Bond Types, California, Commercial Bonds, Contract Bonds, Latest News, License and Permit Bonds, Minnesota, Ohio, Performance Bonds, Retail and Professional Services Bonds, States, Surety Bond Blog

surety bond requirement
estate sales may need surety bonds

As should be expected, there have been a few states with surety bond requirement legislation that was passed in the last few months and will go into affect with the new year. While many of these changes take place immediately, there are some that will simply go into effect as of January 1, 2014.

Do you know what kinds of changes are going into affect in your state for your industry? While there are dozens of changes, some have been getting a bit more attention because they will affect a broad scope of businesses. Here are several new surety bond requirements that will be affecting specific industries in Minnesota, Ohio and California beginning in 2014.

Minnesota Estate Sales Operators

A new requirement for estate sales operators in the state of Minnesota will result in these businesses taking out a surety bond as part of their licensing with the state. As of January 1, 2014, anyone conducting business doing estate sales will need to post a $20,000 license surety bond. The bond will then be applied to ensure that the proceeds from the estate sale go to the family, even if the estate sales operator should default or go out of business.

Ohio Puppy Mills

In a bill that has been over six years in the making, high-volume breeders of dogs will be required to fulfill a set of regulations that includes:

  • Kennels must be clean

  • Kennels must be properly ventilated

  • Outdoor facilities must offer shelter from the elements

  • Breeders must undergo a background check

  • Breeders must provide either a surety bond or proof of insurance

Ohio has currently over 300 self-identified high-volume breeders and has been the focus of several animal rescues in the last few years. Four additional inspectors have been hired to enforce the new regulations.

California Immigration Consultants

Beginning in 2014 there will be an increase in the amount of the performance bond that is required by the California Secretary of State from anyone acting as an immigration consultant. This revision changes the surety bond amount to $100,000 from the previous $50,000. An active immigration consultant must file this new surety bond amount with the State of California before July 1, 2014 or face the possibility of having the state shut the business down.

Surety Bonds at Great Prices

So many businesses these days are required to post a surety bond as part of the cost of doing business. If you are looking into starting up a new business, you might want to come by our BuySurety website or give us a call to be sure your legal requirements regarding surety bonds have been covered. We know surety bonds and have been supplying the business community with solid surety bonds at reasonable rates since 1998. Why take a chance with your business? Get all your surety bond requirements taken care of quickly and within your budget at BuySurety.

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California Startup Businesses Get Sales Tax Bond Back

Written by JoAnn Smith on January 3rd, 2014. Posted in California, License and Permit Bonds, Surety Bond Blog, Tax and Fees Bonds

sales tax bond
removing the sales tax bond is good for new business

 The 2014 year has begun with a bang for startup businesses in California. The state’s sales tax office has decided that the current requirement for new businesses to post a sales tax bond is not feasible because it costs more to administer than it can possibly make in captured taxes. A recent study found that only 1% of all businesses that were required to post a bond actually had to have it applied to any unpaid taxes. The end result is the decision to not only end the program, but to release payments back to the new businesses that paid this sales tax security bond in previous years.

Unanimous Decision

The State Board of Equalization voted unanimously to end this requirement for new business startups in California. Many various chambers of commerce had been calling this new requirement a money grab on the part of the state and had been vociferous in their opposition of it. With this change many business experts see this as a move to boost the development of small business in California. The trend towards small business development has been growing across the nation, leading many states to reconsider onerous taxation regulations such as this one in California.

Exceptions to the Change

While the majority of new businesses will see this rebate, resellers and any business with a history of tax nonpayment will still need to post a sales tax bond with the California State Board of Equalization (BOE) as part of their licensing requirement. The BOE has stated that it will begin refunding the almost $296 million in deposits in February. The changes may not be actually reflected on the BOE site, including the registration forms for new businesses, until March of 2014.

Do You Need to Post Sales Tax Bonds?

If you are considering starting a new business in any state, you may need to post a sales tax bond as part of the business licensing process. As you can see, even in California where the rules regarding these bonds are changing, some businesses will still need to post a tax bond. If you aren’t sure if your state requires one, be sure to ask BuySurety’s helpful customer service representatives to guide you. They know all the latest requirements and can help you get the right kind of surety bond for your business, wherever you do business.


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