Pennsylvania Surety Bond Requirements – New Laws

Written by JoAnn Smith on May 12th, 2014. Posted in Bond Types, Commercial Bonds, Contractor License Bonds, Court Bonds, Latest News, License and Permit Bonds, Pennsylvania, Performance Bonds, Popular States, Surety Bond Blog

     Pennsylvania surety bond requirements
New Pennsylvania surety bond requirements ensure kids attend school.
State legislature has passed a handful of new Pennsylvania surety bond requirements this year that will affect the parents of children who don’t send them to school, the amount of surety a medical plan organization must post and what kind of surety bond must be posted for a company to obtain a permit to demolish a building. While these may all seem like wide ranging regulations, the new Pennsylvania surety bond requirements are simply a part of a new wave of legislature that will see stricter laws in many areas for surety bonds.

Compulsory School Attendance in Pennsylvania

Although the Public School Code Act of 1949 is still very much in force that requires parents to send their children to school, this latest piece of legislature, Pennsylvania House Bill 1786, will add penalties for any parent that refuses to send their children to school. Unless a parent or legal guardian can produce evidence that they took all proper precautions to ensure the child under 13 years of age went to school, the parent can be fined. If the parent wished to appeal the decision, they can post a performance bond that assures the court they will guarantee the child will attend school.

Discount Medical Plans and Penalties

A bill is currently with Pennsylvania Legislature that will allow discount medical plans to be registered with the state. Pennsylvania House Bill 1851 will also create penalties for any such companies and require these companies to post a guarantee in the form of a surety bond of $35,000 to protect the financial interests of the members of the plan. The Pennsylvania surety bond requirements bill was introduced in November of 2013 and as of May 2014 was under consideration of the House Insurance Committee.

Pennsylvania Surety Bond Requirements for House Demolitions

With the passage of Pennsylvania House Bill 1877, the state will have established new requirements for any company that wishes to engage in house or building demolitions in the state of Pennsylvania. These businesses will now be required to obtain a permit before beginning any demolition projects and part of that permit will be obtaining a performance surety bond for the cost of the demolition project. For this, Pennsylvania surety bond requirements will need to be a minimum of $25,000.

Know Your Surety Bond Requirements

If you do business in Pennsylvania, or any other state, you need to know first what the surety bond requirements are for that business. State legislatures are continuously making changes to surety bond state requirements for various businesses. That is why it is so important to do your research first and find out what those requirements are for your state and business. If you are considering starting up a new business, changing the scope of your current business or expanding a current business into a new geographical location, contact BuySurety first. We can help you find out just what kind of surety bond requirements that business has for that state. Don’t get caught without the right surety bond coverage when making changes to your business. Talk to the knowledgeable customer service people at BuySurety first and get the right information to keep your company up to date, whether it is for Pennsylvania surety bond requirements or new laws for auto dealerships.

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Performance Bonds Clears Air in Pennsylvania Seismic Testing

Written by JoAnn Smith on May 2nd, 2014. Posted in Bond Types, Contract Bonds, Latest News, Pennsylvania, Performance Bonds, States, Surety Bond Blog

     Performance Bonds thump Pennsylvania township
Performance Bonds thump Pennsylvania township
Performance Bonds will play their role in a legal battle between the Pennsylvania town of Hempfield and ION Geophysical. The battle is over the ability of the company to test the ground using seismic waves. The Texas company has been seen thumping the ground throughout Pennsylvania as part of its mandate from the Pennsylvania Department of Environmental Protection. However, the township of Hempfield has voted to interfere with the project. They say that “Township roads can only be used for public purposes and seismic testing is not a public purpose.”

Mapping for Underground Gas

The project is part of a state-wide mandate to identify and map any underground pockets of gas. Many of these exist in the rural areas of Pennsylvania. ION’s Greenspan Project will encompass six townships and seven boroughs in Westmoreland County, along with areas of Fayette County and Allegheny County. Sensors are placed in strategic areas. then, the company can then use specially designed trucks that literally “thump” the ground to create sound waves. The waves are then measured by the sensors. The speed of the sound waves reveals the gas pockets, creating a 3D map for future use.

Court Case Decides on Performance Bonds

The Township of Hempfield voted to not allow ION to proceed with its mapping directive from the state on township roads. When this happened, the Texas-based company took the township to court. It asked a federal judge to enjoin the township from interfering with its state-mandated project. The lawsuit resulted in the Township being told it could not prohibit testing on its roadways when the state, which owns the roadways, approved the testing. The company has been informed by the court that it will need to post a $10,000 performance bond against any damages incurred by the testing. ION has agreed to do so.

Performance Bonds Protect Projects

Not every project will need a court case to move it forward. However, many projects that involve possible harm or dispute can often be settled by the use of a performance bond requirement. As in the case of the township that didn’t want its roads thumped for seismic testing, performance bonds can guarantee security from damages. This can make a difficult project negotiation easier. When that happens, you want to know the surety bond provider you use will provide the bonds you need quickly at a price you can afford to budget into your project. BuySurety has been supplying surety bonds of every type for over two decades. It’s customers include companies, non-profits, individuals and government organizations. When your next project calls for any kind of surety bond, including performance bonds, come to the BuySurety website or call our knowledgeable and friendly customer service agents to get the surety bonds you need quickly and easily.

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Public Official Bonds Protect Pennsylvania Taxpayers

Written by JoAnn Smith on March 17th, 2014. Posted in Bond Types, Commercial Bonds, Court Bonds, Indemnity Bonds, Legislation, Pennsylvania, Surety Bond Blog

     public official bonds      
Rural Pennsylvania uses public official bonds for security
In Pennsylvania, the legislature is considering several new bills that if passed would expand services in non-urban areas and ensure proper procedure through the posting of public official bonds as security. Both bills will give the taxpayers of Pennsylvania new services that will improve their lives as well as the security of knowing that public officials that manage these services are bonded. The public official surety bonds will let the public know that the officials will be required to post bonds to ensure their accountability and give that public office a certain amount of public transparency. Whether to ensure the proper running of rural colleges or the legal streamlining of how the many boroughs in Pennsylvania are run, surety bonds will play an important role if these bills are passed.

Rural Areas Get Colleges

With the creation of Pennsylvania Senate Bill 1000, the legislature is hoping to create a pilot program for rural region community colleges. This would identify underserved communities in Pennsylvania that would benefit from the addition of a community college. It would then create a pilot program at one of the identified communities to prove the viability of this program. Since the monies needed to create this pilot program would come from taxpayers, it would also require the Chief Financial Officer hired to oversee finances for the pilot program is bonded with a yet unspecified amount through a proper public official bond to guarantee his or her performance.

Streamlining Boroughs Powers

Pennsylvania has a large number of boroughs that up until now have had a wide array of approaches to taxes, applications, certifications and the kind of power that councils will hold. With the passage of Pennsylvania House Bill 1719 the state is hoping to consolidate and streamline all of these procedures. One of those changes will be requiring all future borough controllers to post a public official bond to ensure faithful performance of their duties. In addition, the bill will outline the use of court bonds by taxpayers when appealing administrative decisions on taxes owed and bid bonds for purchase contracts. With the passage of this bill, these types of bonds and requirements will be consistent across the various boroughs in Pennsylvania.

Posting Public Official Bonds in Pennsylvania

While in some industries the idea of posting a bond is seen as part of doing business, public official bonds can sometimes be unexpected for those required to post them. Anyone who handles money on the public’s behalf can find themselves suddenly expected to post a public official surety bond as part of their job. When that happens, it is important to know that BuySurety is a trusted name in Pennsylvania and in all other 50 states for surety bonds. When looking for a surety bond company that falls within the requirements of a company authorized to do business as a bond company, you can be assured that BuySurety is a tried and true company that has been providing surety bonds to a wide array of businesses and government offices for over a decade.

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Ohio and Pennsylvania Debt Settlement Providers Need Surety Bonds

Written by JoAnn Smith on March 11th, 2014. Posted in Bond Applications, Latest News, Legislation, License and Permit Bonds, Ohio, Pennsylvania, Surety Bond Blog

     debt settlement surety bonds      
debt settlement companies need surety bonds
photo credit: Alan Cleaver via photopin cc
In a move to have greater control over the debt settlement industry, legislature in both Ohio and Pennsylvania are considering passing bills that would require companies to be bonded as part of their licensing agreement.
For both instances the bills would introduce the requirement that all debt settlement companies in each respective state will now need to be registered and licensed, as well as being required to post a surety bond. Up until this time this was not a requirement for this industry in either Ohio or Pennsylvania.

New Debt Settlement Surety Bond Requirements

In Ohio the possibilities for this bill passing looks good. Ohio House Bill 173 was first introduced into the House in May 2013 and passed through three committees before it was introduced to the Senate. The bill currently is sitting with the Senate’s Insurance & Financial Institutions Committee where it looks favorable for its passage. The bill will require a license surety bond to be posted at the time of licensing. With a total of 14 representatives of the House acting as sponsors for this bill it looks likely to see passage before the end of the year.
By contrast, Pennsylvania Senate Bill 622 began in the Senate in March of 2013 before passing through the Senate’s Banking and Insurance Committee and Appropriations. It passed on to the House in December of 2013 and is currently being considered in the Commerce Committee of the House. When passed, this bill will require anyone who wants to do business as a debt settlement company in Pennsylvania to be registered with the state and post a license and permit bond. With the backing of 14 highly placed senators for this bill it also looks likely to pass before the end of the year. Both of these bills are the result of a perceived need for greater regulation in the debt settlement industry.

Finding Surety Bonds Fast and Easy

Of course, these two bills are a great example of how an industry can suddenly find itself needing to qualify for surety bonds. Many states already require anyone offering debt settlement to be covered for liability through a surety bond. If you work in the debt settlement industry, or any industry where having a surety bond is part of the licensing procedure, make sure you are covered with a surety bond from BuySurety. We can make getting bonded a fast and easy process. Be sure to contact us today to find out just how quickly we can qualify your business for any kind of surety bond coverage.

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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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