New Massachusetts Surety Bond Requirements for Public Officials

Written by JoAnn Smith on April 11th, 2014. Posted in Bond Types, Contract Bonds, Latest News, Legislation, Massachusetts, Performance Bonds, Surety Bond Blog

     Massachusetts surety bonds
Massachusetts surety bonds protect water sources
In several new laws being passed in Massachusetts, surety bonds would be required from certain public officials to ensure their faithful performance of their duties. These types of guarantees, called public official surety bonds, are not uncommon when new organizations will need to have someone who handles public monies. Both of the laws being considered will form new legal entities and with these surety bonds the public officials that will be appointed treasurer will be bonded. Whether forming a new water district or a new regional government, among the requirements from the legislature for Massachusetts, surety bonds will play a role.

Massachusetts Gets a New Water District

With the passage of Massachusetts House Bill 3767, the state will be seeing the formation of a new water district. Named the Mashpee Water and Sewer District, the new entity will require a treasurer amongst the officials named in the bill. As of April 2014 the bill had gone through both the House and the Senate and looks likely to be passed with little fanfare. When this happens, and a treasurer has been appointed, that person will need to post a public official bond that will guarantee their performance of their duties to the voting public. The company that is posting the bill will need to be one that is licensed to offer surety bonds within the Commonwealth of Massachusetts.

Formation of Regional Governments

Although cities and towns would continue to be the primary political structure for municipalities in the state of Massachusetts, with the passage of Massachusetts House Bill 3822 the formation of regional governments would be a new option. This bill would allow cities and towns to enter into joint agreements for the purpose of creating an entity that would share power jointly as a regional government. Part of the new structure would include the creation of a regional treasurer, who would be required to post a public official surety bond. The bond would ensure the proper performance of their fiscal duties in this capacity. The bill has passed through the House as of April 2014 and is currently with the Senate Ways and Means Committee.

Finding Public Official Bonds Easily

As is evident from the two bills mentioned above, things can change rapidly when it comes to new laws and the attendant requirements of surety bonds. While changes are a sign of new life and new thinking in Massachusetts; these laws will mean a new way of acting for many. Among them is the need for public official surety bonds to ensure that the new legal entities act in the best interest of those who pay their paychecks with their taxes. Finding a solid surety bond company at a time such as this can be the last thing on many public officials mind. When it comes to supplying solid public official surety bonds, BuySurety has been the source for public officials across the nation for over two decades. Don’t take chances with your newly minted official requirements. Just as in Massachusetts, surety bonds are a part of public life and BuySurety can make sure your bond needs are met quickly and easily.

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The Mighty Northeast – DMV Surety Bonds for Connecticut, Rhode Island and Massachusetts

Written by JoAnn Smith on December 12th, 2013. Posted in Bond Types, Commercial Bonds, Connecticut, Legislation, License and Permit Bonds, Massachusetts, Motor Vehicle Bonds, Rhode Island, States, Surety Bond Blog

     dmv surety bonds
What a great old map of these historic states
When it comes to DMV surety bonds, auto dealerships in Connecticut, Rhode Island and Massachusetts don’t need to jump through hoops with the local DMV offices to get bonded. All three states do have requirements for auto dealership owners when it comes to getting those auto dealer surety bonds in place as part of their licensing requirements. The good news is that the requirements are not onerous. Here are the details:

Connecticut DMV Surety Bonds

The interesting thing about surety bond requirements in Connecticut is that they are required for related businesses other than simply places that sell cars and trucks. The other interesting thing is that they are still called DMV bonds and cover the same basic concept, making sure that the business holds up its end of the agreement with their customers according to the business license. Here are the three types of auto-related businesses that Connecticut requires DMV surety bonds from and the amounts required for the auto dealer bonds:
  • New Motor Vehicle Sales – $50,000 DMV surety bond
  • Used Motor Vehicle Sales – $50,000 DMV surety bond
  • Vehicle Leasing Companies – $10,000 DMV surety bond
  • Vehicle Renting Companies – $10,000 DMV surety bond
  • Vehicle Repair Ships (including limited repairs) – $5,000 DMV surety bond

Rhode Island Auto Dealer Licensing Requirements

While there are certainly other requirements for licensing an auto dealership in Rhode Island, the one we are concerned with here is the surety bond requirement. Luckily, it is a pretty straight-forward requirement that covers all types of auto dealerships. So whether you are selling cars, trucks or motorcycles and regardless of whether you sell used or new vehicles, the requirements are all the same. You will need to post a $15,000 DMV surety bond with the Rhode Island Dept of Motor Vehicles and have proof of it before you apply for that license. Keep in mind that these bonds must expire on December 31st of each year, so purchasing a bond in June will mean still needing to renew in the New Year.

Auto Dealer Requirements in Massachusetts

Of course, Massachusetts has to do things a bit differently. Although the state makes the requirement to have auto dealerships licensed and also a surety bond posted, the individual municipalities are who actually does the licensing. So, although you may need to talk to the folks at City Hall in Boston or Springfield regarding the license, the requirements will be the same.
  • Selling New Vehicles – This is a Class I License in Massachusetts. You will not be required to post a bond but you will need to have repair facilities on the premises and have used vehicles be an incidental part of your business for this.
  • Selling Used Vehicles – This is a Class II License in Massachusetts and you will need to post a $25,000 used car dealer bond as part of your licensing. The bond is to cover any judgements against the business for failure to deliver the title or if the dealership is found to have been selling stolen vehicles or ones that have had their mileage rolled back. In other words, to protect buyers from cheating used car dealers.
  • Selling Parts and Junked Cars – Classified as a Class III license, this license does not require a surety bond.

Finding an Auto Dealer or Used Car Dealer Bond

So now that you know what is required, do you know how to find the best possible rate for that surety bond? Not every business is the same and that holds true for both auto dealerships and surety bond companies. If you are new to the business without a proven track record or just came through some tough times that shredded your credit rating, you might have trouble getting approved for a surety bond. That is where BuySurety can help. We will work with you to get you approved and make sure you have the right surety bond coverage for your business. Come by our site and request a quote today to see what we have to offer or give us a call to find out more today.

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The Importance of Construction and Performance Surety Bonds

Written by JoAnn Smith on December 10th, 2013. Posted in Alabama, Bond Types, Latest News, Massachusetts, New Jersey, Performance Bonds, Surety Bond Blog

     cost of a surety bond, performance bond
The Cost of a Performance Surety Bond Ensures Construction
December 10, 2013 – Many cities have learned the hard way that cutting costs by not requiring a performance surety bond from a contractor is a bad move.  In two out of three cases recently, a city or government board had required the contractor for local municipal construction projects to post a performance surety bond to ensure completion. When the contractor was unable to finish the project, the surety bond company was able to step into the breach and resume the project. Cities are beginning to see just how important having a contractor post a performance surety bond can be to their own financial welfare. As you can see from our third example, not having that performance surety bond requirement can have major repercussions.

Massachusetts Middle School Project Returns

In Sutton Massachusetts a middle school and high school development had been brought to a halt earlier in the year. The city had fired the general contractor on the job for excessive delays. Now the Town Administrator has announced that the surety company that took over is accepting bids from six different contractors to find the best bid for completion. Months of delay on the project had led the city selectmen to dismiss the general contractor and his sub-contractors and invoke the performance surety bond to find a new general contractor and identify the best sub-contractors to complete the project.

Voorhees New Jersey to Get New Fire Station

Back in August the Board of Fire Commissioners had dismissed the contractor working on a new fire station for the area. The original 1950 building could no longer be used because of changes in the equipment and today’s fire fighting standards. The new building was begun in February 2012 but saw numerous delays. Citing these delays and other problems, the contractor was dismissed and the surety company was brought in to take over the project. The surety company has announced it has hired subcontractors and can begin work on the building in time to have it completed by April of 2014.

Alabama City Should Have Required Performance Surety Bonds

The city of Hanceville Alabama is looking through their planning and building regulations with a fine tooth comb these days. That is because they may find themselves left with tens of thousands of dollars in costs when a local developer went bankrupt before Baylor Cove, the subdivision it was building in the city, was completed. Many cities require developers to post a performance surety bond to cover the costs of infrastructure on a subdivision if they should go bankrupt before completing. Because the city of Hanceville did not require a performance bond from this developer, the cost of completing sewer lines, roads and other infrastructure such as sidewalks is left open to interpretation. People’s Bank foreclosed on the 28 lot subdivision and has offered the city ownership of undeveloped lots in exchange for taking over the paving and upkeep of the streets in Baylor Cove. The city isn’t so sure that is a good deal, but if they don’t take it on the citizens who have bought and now live in the area may have something to say about it.

Getting a Performance Bond for a Fair Price

As you can see, more cities are now requiring a performance bond for any sizable construction project and for a good reason. While the economy is improving, many see the construction business still struggling for the next few years to overcome the massive losses in the building trade. If you are a new construction company, contractor or sub-contractor, talk to BuySurety about your next performance surety bond. We can help you qualify, make sure you have the right bond for that project and get it for you at a rate that will help your bottom line.

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Massachusetts Foreign Money Transmitters – New Bonding Rules

Written by JoAnn Smith on December 6th, 2013. Posted in Commercial Bonds, Finance Bonds, Latest News, Legislation, License and Permit Bonds, Massachusetts, States, Surety Bond Blog

     money transmitter bond
Companies helping money leave the country must be bonded
Changes are being predicted for money transmitters who handle foreign currency in Massachusetts. While the bill has sat in legislature for the majority of the past year, many think that may change soon. As things stand today, any business that handles foreign deposits must post a surety bond that is equal to double the amount that an individual transmits each week. In addition, currently the minimum bond amount is $50,000. When the business has more than one location, then the bond amount currently must be either $50,000 or twice the weekly transmission value, whichever is greater. But this is all about to change.

Multiple Locations Taken Into Account

With passage of Massachusetts House Bill 876 the bond requirements for multiple locations will be changing. There will be an additional bond requirement of a $10,000 money transmitter bond for each additional location. A limitation of no more than a total of $450,000 in surety bonds will ensure there is a cap for the amount that is reasonable. There would be a five year tail on the bond and either the Commissioner can act or there can be direct action taken on the bond.

Money Transmitter Bonds Still Required

Whether this bill does go through or not this year, money transmitter bonds will continue to be required for any business that transmits money, domestic or foreign, in the state of Massachusetts. Not sure if your business is required to have a money transmitter bond as part of your licensing or not? Don’t worry, contact BuySurety and let us help you find out what you need to qualify for it today. We have informed helpful service operators ready to help you with all your surety bond needs. Just contact BuySurety, regardless of bad credit, new business or no credit. We can help keep your company stay compliant with the law.

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Licensing Legislation for Real Estate Appraisal in Massachusetts and New Jersey

Written by JoAnn Smith on December 2nd, 2013. Posted in Commercial Bonds, Legislation, License and Permit Bonds, Massachusetts, New Jersey, Retail and Professional Services Bonds, Surety Bond Blog

     legislation for real estate appraisal
Know legislation for real estate appraisal?
If you work in any aspect of the real estate industry, then you probably know that regulations connected with that business are becoming more stringent. Real estate appraisal companies in Massachusetts and New Jersey will be seeing new legislative action regarding licensing in the coming year. As more licensing regulations are passed, they will often include the requirement of posting a surety bond. Right now both Massachusetts and New Jersey are among the few that actually have legislature in session. Both state legislative houses are reviewing bills that will affect licensing and surety bond requirements for real estate appraisal businesses in these states. Here are the details on each of these bills.

Massachusetts House Bill 992

If passed, this bill would require all real estate appraisal companies operating in the State of Massachusetts to both be licensed with the state and to post a performance surety bond in the amount of $20,000. This surety bond would become payable to a claimant and will ensure that the company performs its duties faithfully under the law. The bill has been in legislature for the entire year but is expected to pass.

New Jersey Assembly Bill 1756

This bill regarding the licensing of real estate appraisal companies that operate within the state of New Jersey was introduced into The Assembly at the beginning of the year. It was referred to the Regulated Professions Committee and was reported to be out of that committee in June of 2013. It is now in its second reading. The bill, when passed would require all real estate appraisal companies to be registered with the state. In addition, a part of that registration is to include the posting of a $25,000 surety bond.

Providing Surety Bonds for the Real Estate Industry and More

Don’t jeopardize your real estate business by not getting bonded when it becomes a requirement. Let BuySurety help you out with all the new surety bond regulations that are becoming law in the real estate industry. We can help you meet the requirements, educate you on what you need to do and make sure you are legally covered by all the new surety bond laws for your business.

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