Surety Legislation by State The following table will be updated as legislative developments evolve.
	STATE LEGISLATION ALABAMA - AL State Legislature COMMERCIAL HB 94 – Designated Agents. FAILED; adjournment. Provides that any dealer may perform duties pursuant to this act either personally or through officers or employees. Any dealer or authorized person shall enter into a bond with a corporate surety authorized to do business in this state as surety on the bond, payable to the State of Alabama in a sum to be determined by the department, but in no event less than $5,000, conditioned on the faithful performance of his or her duties under this act. HB 110 – Public Officials. FAILED; adjournment. Relates to bonds of county officials; provides that except where otherwise specifically provided by general law in effect on the effective date of this act, the bond for each county official shall be one-half of one percent of the amount budgeted in the then current county budget for activities conducted by or under the direction of the individual county official, but the bond amount for any county official shall not exceed $50,000. The bond for any county employee required to post bond shall be set in an amount determined proper by the county commission. In the alternative, the county commission may execute a blanket bond covering the performance of duties of all county employees in an amount determined by the county commission to adequately protect all county funds and revenue. (SB 211 also failed.) HB 126 – Designated Agents. FAILED; adjournment. Every dealer, as defined in this chapter, may qualify as a designated agent of the department. The dealers may perform their duties under this chapter either personally or through any of their officers or employees; provided, that the dealer or persons shall enter into a bond with a corporate surety authorized to do business in this state as surety thereon, payable to the State of Alabama in a sum to be determined by the department, but in no event less than $50,000, conditioned on the faithful performance of their duties under this chapter. Certificates of Title for Manufactured Homes. If the department is not satisfied as to the ownership of the manufactured home or that there are no undisclosed security interests in it, the department may accept the application but shall do either of the following: (1) Withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the department as to the applicant's ownership of the manufactured home and that there are no undisclosed security interests on it. (2) As a condition of issuing a certificate of title or certificate of cancellation, require the applicant to file with the department a bond in a form prescribed by the department and executed by the applicant, and either accompanied by the deposit of cash with the department or also executed by a person authorized to conduct a surety business in this state. The bond shall be in an amount equal to $50,000 for manufactured homes less than 10 model years old and $25,000 for all manufactured homes 10 years old or older, and shall be conditioned to indemnify any prior owner and lienholder and any subsequent purchaser of the manufactured home or person acquiring any security interest in it, and their respective successors in interest, against any expense, loss or damage, including reasonable attorney's fees, by reason of the issuance of the certificate of title or certificate of cancellation for the manufactured home or on account of any defect in or undisclosed security interest upon the right, title, and interest of the applicant in and to the manufactured home. Any such interested person has a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond, and any deposits accompanying it, shall be returned at the end of three years or prior thereto if the manufactured home is no longer in this state and the currently valid Alabama certificate of title is surrendered to another state, unless the department has been notified of the pendency of an action to recover on the bond. (SB 59 also failed. HB 16a/SB 16a and SB 115a were identical measures considered during the special session. They failed there as well.) HB 227 – Autism Scholarship Program. FAILED; adjournment. Creates the Autism Scholarship Program allowing students with autism the option to attend the public or non-public school of their choice; provides for the responsibilities of resident school districts; all participating non-public schools shall demonstrate their financial viability by showing they can pay any funds owed to the state, if they are to receive $50,000 or more during the school year, by doing any of the following: (1) Filing a surety bond payable to the state in an amount equal to the aggregate amount of the autism scholarships expected to be paid during the school year. HB 261 – Sale of Preneed Funeral or Cemetery Merchandise and Services. FAILED; adjournment. Clarifies that a preneed contract is not insurance for any purpose and that to sell funeral services on a preneed basis pursuant to this act the person or its affiliate must be so authorized by the Alabama Board of Funeral Service. This bill would change the renewal period for persons holding preneed certificates of authority to July 1 of each year, with any certificate not renewed expiring at midnight on September 30. This bill would clarify that the amount of the bond used as an alternative to the trusting requirement is to be based upon contracts subject to the act and would require that an initial bond is to be based on the amount of preneed liability expected to be incurred in the next 12 months. (SB 235 also failed.) HB 279 – Boxing Promoters. FAILED; adjournment. Creates the Alabama Boxing Commission; requires promoters of boxing matches and boxers to be licensed; the license application shall be accompanied by a performance bond in an amount and under any conditions required by the commission. The commission may also require a match permit and performance bond in addition to the promoter’s license bond. (SB 339 also failed.) HB 501 – Portable Toilet Pumper License Bond. FAILED; adjournment. Relates to the Alabama Onsite Wastewater Board; duties of the board, the type of licenses issued, the application for licensure process, bonding of licensees. Minimum amounts for required bonds shall be established by the board and evidence of bond shall be provided to the board before any license will be issued. In no event may the minimum required bond amounts set by the board be less than $15,000 for a basic level license, a pumper license, a portable restroom/toilet license, or a manufacturer's license, and $30,000 for an advanced level license. (SB 455 also failed.) HB 515 – Casino Gaming. FAILED; adjournment. Authorizes casino gaming in cities of more than 100,000; provides for the licensing, regulation and control of casino gaming operations, manufacturers and distributors of gaming devices and gaming related equipment and supplies, and persons who participate in gaming; provides the distribution of revenue; vests authority for the licensing, regulation and control of casino gaming in the Alabama Gaming Control Board. Before a casino license is issued, the licensee shall post a bond in the sum of $1,000,000 to the State of Alabama and have retained an Alabama licensed attorney to represent the applicant in all matters before the board. The bond shall be used to guarantee that the licensee faithfully makes the payments, keeps his or her books and records, makes reports, and conducts his or her casino gaming in conformity with this act and the rules promulgated by the board. HB 518 – Motor Fuel Bonds. FAILED; adjournment. Upon approval of the application by the Department, the applicant shall file either a cash deposit or surety bond as follows: suppliers, permissive suppliers, terminal operators, or importers licenses – equal to the average monthly tax liability or not less than $2,000,000; exporters, blenders or distributors – minimum of $2,000 or an amount equal to two months tax liability, whichever is greater; no bond required for transporters. HB 643 – Mortgage Lenders, Etc. FAILED; adjournment. Establishes the Alabama Mortgage Act; provides for the licensing of mortgage lenders ($150,000), mortgage brokers ($50,000), mortgage servicer ($75,000), mortgage processors ($25,000), loan originators, and loan processors by the State Banking Department; provides for bonding requirements in the amounts indicated. Loan originators and loan processors who work for a licensed or exempt mortgage broker, mortgage lender, mortgage servicer, or mortgage processor will not be required to obtain a surety bond. (SB 644 also failed.) HB 712 – Registration Bond. FAILED; adjournment. Would have required agents of athletes to post a $25,000 surety bond (currently registration only) for the benefit of academic institutions suffering damages as a result of the agent’s misconduct or any omissions. (HB 18a/SB18a were identical measures considered during the special session. Those bills failed as well.) HB 722 – License Bond. FAILED; adjournment. Would have required suppliers, permissive suppliers, exporters, blenders, importers and distributors of motor fuels, as well as terminal operators, motor fuel transporters and aviation fuel purchasers, to be licensed and to post a surety bond in connection with taxes on motor fuels; also provided authority for an additional bond if the surety on the bond was insufficient, the surety gave notice of cancellation, or the financial condition of the licensee required it. HB 851 – Heating, Air Conditioning and Refrigeration Contractors. FAILED; adjournment. Under existing law, the State Board of Heating and Air Conditioning Contractors regulate businesses which install, service, and repair heating and air conditioning systems. This bill would expand the authority of the board to include certification of refrigeration systems. This bill would define an apprentice and provide for their board registration and renewal fees. This bill would allow an applicant with an apprentice registration for two years, or completion of certain certifications be eligible for an examination for certification. This bill would also allow for certain exemptions from a written examination. This bill would increase the amount of a performance bond for all active certified contractors. (SB 69 also failed.) CONTRACT HB 291 – Retainage. FAILED; adjournment. Relates to the timely payments to contractors and subcontractors; limits the percentage of retainage on payments by a contractor or subcontractor until the work has been performed. (f) The percentage of retainage on payments by the contractor to the subcontractor shall not exceed the percentage of retainage on payments made by the owner to the contractor or 5 percent, whichever is less until 50 percent completion. After 50 percent completion has been accomplished, no further retainage shall be held. Any percentage of retainage on payments made by contractor to the subcontractor that exceeds the this percentage of retainage on payments made by the owner to the contractor shall be subject to interest to be paid by the contractor to the subcontractor at the rate of one percent per month (12% per annum). (g) The percentage of retainage on payments by the subcontractor to the sub-subcontractor shall not exceed the percentage of retainage on payments made by the contractor to the subcontractor or 5 percent, whichever is less until 50 percent completion. After 50 percent completion has been accomplished, no further retainage shall be held. Retainage on payments made by the subcontractor to the sub-subcontractor that exceeds the this percentage of retainage on payments made by the contractor to the subcontractor shall be subject to interest paid at the rate of one percent per month (12% per annum). (SB 157 also failed.) HB 442 – Competitive Bidding on Contracts. NEW LAW; Signed by the Governor on 5-16-08; Act No. 2008-379; effective upon enactment. Relates to competitive bidding on contracts of certain state and local agencies; increases the minimum amount of contracts subject to competitive bid from $7,500 to $15,000; changes from mandatory to permissive the furnishing of a bid bond by a bidder. The awarding authority may require bidders to furnish a bid bond for a particular bid solicitation if the bonding requirement applies to all bidders, is included in the written bid specifications, and if bonding is available for the services, equipment or materials. ALASKA - AK State Legislature COMMERCIAL HB 158 – Private Investigators. FAILED: Would have regulated private investigators and agencies. A $15,000 license bond or an errors and omissions policy could have been submitted to secure performance. HB 163 – Trustee Bonds. FAILED: As relates to property foreclosures and executions, before performing the duties of a trustee, a person shall obtain a $250,000 surety bond to protect the trustors and beneficiaries of trust deeds against fraud or defalcation by the trustee. HB 409 – Court Bond. FAILED: Would have required a taxpayer with an unsatisfied judgment against the taxpayer in favor of the state or a political subdivision for more than $100,000 who appeals that judgment to deposit a bond or other security on appeal. SB 286 – Pharmacy Managers. FAILED: Would have provided that a pharmacy benefits manager maintain a fidelity bond in an amount equal to or greater than 10% of the amount of the funds handled or managed annually. ARIZONA - AZ State Legislature COMMERCIAL HB 2030 – Contractor’s License Bonds. This bill increases the maximum bond penalty amounts in the tiered systems for general commercial building contractors and subclassifications thereof and specialty commercial contractors; increases the bond amount for general residential contractors and subclassifications thereof from $15,000 to $30,000; and increases the bond amount for specialty residential contractors from $7,500 to $15,000. (3-3-08: Passed the House; read second time in Senate and referred to Rules Committee) We are opposed to these increases, and our lobbyist advises that the Homebuilders Association is working to completely remove that new language from the bill. HB – 2045 Handyman Bond. This bill makes provisions for registration as a handyman. A person performing the work of a handyman shall maintain a surety bond. (1-15-08: In House; second read) HB 2350 – Mortgage Broker Licensing. Concerns mortgage brokers; relates to bankers; relates to license renewals. (3-6-08: Passed the House; read second time in Senate, assigned to Senate Rules Committee) HB 2474 – Materialmen’s Liens. Increases the amount of the release bond to an amount equal to 150 percent (from 125 percent) of the amount claimed in the notice. (3-19-08: Passed the House; from Senate Commerce and Economic Development do pass as amended) HB 2789 – Homeowner’s Associations. Requires an association property manager to maintain a performance bond, financial reserves or another form of financial assurance. (2-25-08: In House; second read) HB 2806 – Trustee’s Bond. Provides that a trustee shall give bond to secure performance of the trustee’s duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement. The court may specify the amount of the bond, its liabilities and whether sureties are necessary. The court may modify or terminate a bond at any time. (3-19-08: Passed the House; read first time in Senate and assigned to Senate Rules) HB 2836 – Guardians and Conservators. Provides that a conservator is not required to provide a final account to the court if the conservatorship terminates because of the protected person's death if every person who is entitled to distributions as a devisee or heir of the protected person's estate provides a written waiver of a final account. The waiver may be made by the personal representative or the personal representatives who were not conservators of the protected person. Unless proceedings are pending against the conservator, when the waivers are filed the court shall enter an order discharging the conservator from all liabilities relating to the conservatorship, exonerating and releasing any bond or other security posted by the conservator and releasing any restrictions previously imposed on the conservator's assets. (3-19-08: Passed the House; read first time in Senate and assigned to Public Safety and Human Services; assigned to Senate Rules) SB 1174 – Notary. Requires notary bonds to be filed with the Secretary of State. Establishes the Notary Bond Fund which will be administered by the Secretary of State. (3-18-08: Passed the Senate; read second time in the House and assigned to Counties, Municipalities and Military Affairs Committee; recommend do pass) SB 1283 – Contractor Bonds. Increases the amounts of various contractor bonds based on volume of work. (1-31-08: In Senate; read second time and assigned to Commerce and Economic Development Committee; assigned to Senate Rules) CONTRACT HB 2273 – Retainage. Concerns contractor retention. Except as provided, an owner under a construction contract shall make final payment to the contractor not later than 30 days after the contractor has fully performed its obligations under the construction contract and has provided the owner a billing or invoice for the final payment in accordance with the provisions of the construction contract. (2-27-08: In House; held in Commerce) SB 1289 – Contract Claims. Concerns flood protection districts. Provides that if the work is not performed with diligence, the board, after a hearing and service of notice on the contractor and the contractor's surety, may prescribe those terms and conditions as it deems proper before permitting the contractor to continue with the work. If the board finds that the contractor is unable to continue with the work or to perform the work according to the contract, the board shall hold the contractor in default and make demand on the surety to act according to the contract and the terms and conditions of the performance bond. If the surety fails to act within 60 days after the date of the written notice, the board may order that proposals be received from other contractors to complete the work. After receiving proposals, the board may award the contract to the lowest responsible bidder. If, after receiving the new proposals, the cost of completion exceeds the monies or bonds available for payment, the board shall make a demand on the defaulting contractor's surety for payment of the difference within 20 days after the mailing of the notice. If the surety is represented by an attorney-in-fact, the demand may be served on the attorney-in-fact or at the surety's principal office in this state. If the surety has no attorney-in-fact and no principal office in this state, the demand shall be served on the director of insurance. The demand may not exceed the penal sum of the performance bond. Monies collected from the surety shall be used to pay any added costs of completing the work. Any difference between the actual costs of the work and the amount assessed shall be advanced by the district, which shall use its contingency fund or any other available monies to pay the new contractor. The district shall reimburse itself from the amounts paid by the former contractor or its surety or from assessments and bonds when monies become available. All additional costs of the work not received from the original contractor's surety shall ultimately be assessed against the benefiting parcels of property. (3-13-08: In Senate; passed third reading and transferred to the House) ARKANSAS - AR General Assembly The Arkansas General Assembly will not be holding a regular legislative session in 2008. CALIFORNIA - CA State Assembly COMMERCIAL AB 69 – Uniform Debt Settlement Services/Debt Management Act/Credit Counselors Law. This bill would enact the Uniform Debt Settlement Services Act (creates a debt settlement services fund), the Debt Management Act (creates a debt management fund and provides for a $25,000 bond or other security), and the Credit Counselors Law (bond required). (2 7-08: Passed the Assembly and transmitted to the Senate; read first time and referred to Rules Committee for assignment; assigned to Banking, Finance and Insurance Committee) AB 180 – Foreclosure Consultant Bond. This bill would require a foreclosure consultant to register with the Department of Justice and to obtain and maintain a $25,000 surety bond. (2-7-08: Passed the Assembly and transmitted to the Senate; read first time and referred to Rules Committee for assignment; assigned to Judiciary Committee) AB 1340 – Guardians and Conservators. This bill would require a guardian or conservator, in a first court accounting, to provide the court all account statements showing the account as of, rather than through, the closing date of the first court accounting. (1-31-08: Passed the Assembly and transmitted to the Senate; read first time and referred to Rules Committee for assignment; assigned to Judiciary Committee) AB 1356 – Equity Purchaser Representative Bond. This bill requires a representative of an equity purchaser to provide a contract and written proof of licensure, and a statement under penalty of perjury and written proof that he/she has satisfied certain minimal professional liability coverage or bonding requirements. A representative shall demonstrate financial responsibility by providing written proof of any of the following: (2) a surety bond in an amount equal to at least twice the value of the property that is subject to the contract. (2 7-08: Passed the Assembly and transmitted to the Senate; read first time and referred to Rules Committee for assignment; assigned to Judiciary and Public Safety Committees) AB 1880 – Probate. Requires a guardian or conservator to post a separate recovery bond for the benefit of the ward or conservatee and any person interested in the guardianship or conservatorship estate who may bring a surcharge action against the guardian or conservator for breach of his or her duty. Requires the recovery bond to be given by an admitted insurer for the recovery of reasonable attorney's fees. (3-12-08: In Assembly; read second time and amended; re-referred to Judiciary Committee) AB 2284 – Milk Producers. Amends existing law that established the Milk Producers Security Trust Fund that protects producers against loss of payment for bulk milk. Provides that any instrument used as acceptable security is subject to a revised set of requirements. Revises the circumstances under which may release the issuer of acceptable security from liability secured by that security, and would grant a handler the right to replace an acceptable security with a new one. (3-5-08: In Assembly; referred to Committee on Agriculture) AB 2336 – Contractors License Bonds-Arbitration. Amends the Contractor's State License Law that establishes an arbitration process to resolve disputes between contractors and consumers. Authorizes the registrar of contractors, after investigating a complaint and finding a possible violation and the concurrence of the licensee and the complainant, to refer the alleged violation and complaint to arbitration if damages or potential damages are greater than the amount of the licensing bond required. (3-5-08: In Assembly; referred to Committees on Judiciary and Business and Professions) AB 2611 – Debt Settlement Services. Enacts the Debt Settlement Services Act. Provides for regulation of persons who provide debt settlement services; applicants shall furnish a $25,000 cash or surety bond. (3-13-08: In Assembly; referred to Committees on Banking and Finance and Judiciary) AB 2713 – Alcoholic Beverage Distributors. Provides that all alcoholic beverage licensees shall have a bond: A taxpayer licensed to manufacture, grow, blend, import, or sell at retail or wholesale, beer or wine would be required to provide a $100,000 bond; a taxpayer licensed to manufacture, grow, blend, import, or sell at retail or wholesale, distilled spirits would be required to provide a $250,000 bond. (2-25-08: In Assembly; read first time) AB 2880 – Residential Mortgage Lenders. This bill would increase the amounts of the surety bonds brokers under the Finance Lenders Law and residential mortgage lenders are required to maintain. (3-25-08: In Assembly; Re-referred to Committee on Banking and Finance) SB 1337 – Contractors; Limited Liability Companies. Authorizes a limited liability company to render occupational, nonprofessional services lawfully rendered only pursuant to a specified license, certificate, or registration if the provisions governing that license, certificate, or registration identifies these services. Authorizes a limited liability company to hold that license, certificate, or registration. Specifies the services a contractor is authorized to perform. Relates to licensure reissue or reassignment upon an asset sale. (3-24-08: In Senate; referred to Committees on Business, Professions and Economic Development and Judiciary; set for hearing on April 7) SB 1432 – Contractor Bonds. Requires that the contractor's bond and the qualifying individual's bond be for the benefit of a homeowner contracting for home improvement to be retained by the owner for at least one year. Provides that the action against the contractor's bond or the bond of a qualifying individual must be brought within 2 years after the expiration of the license period during which the act or omission occurred or within 2 years of the date the license of the active licensee would have expired. (3-13-08: In Senate; referred to Committees on Business, Professions and Economic Development and Judiciary; March 24 hearing postponed by Committee) SB 1604 – Mortgage/Finance Lenders. Requires that applicants for a license to engage in the business of residential mortgage lending show a minimum tangible net worth of a specified amount for brokers ($50,000) and finance lenders ($250,000). Requires that licensees update that information if a change occurs, and requires that licensees maintain the applicable net worth at all times. Requires that lenders and brokers maintain a $50,000 surety bond. (3-24-08: In Senate; from Committee with author’s amendments; read second time, amended; re-referred to Committee on Banking, Finance and Insurance) CONTRACT AB 2002 – Retainage. Allows an administrative judge to award an awarding body the reasonable attorney's fees and cost incurred in defending the withholding of contract payments if a public works contractor or subcontractor fails to demonstrate to the satisfaction of the administrative law judges that the contractor or subcontractor had substantial grounds for believing the withholding of contract payments to be in error. (2-28-08: In Assembly; referred to Committees on Labor and Employment and Judiciary) AB 2089 – Immigration. Prohibits all state agencies from awarding any contract for construction of a public works project, acquisition of goods and services, and acquisition of information technology goods and services to a bidder or contractor that hires an alien, knowing the alien is an unauthorized alien. (3-24-08: In Assembly; referred to Committee on Business and Professions) AB 2376 – Small and Emerging Contractors. Requires the Department of Transportation to establish a Small and Emerging Contractor Technical Assistance Program for the purpose of providing training and technical assistance to small contractors to improve their ability to secure surety bond guarantees, offered by the federal Small Business Administration, necessary to qualify for public works projects. (3-6-08: In Assembly; referred to Committees on Jobs, Economic Development, and the Economy and Transportation) AB 2908 – Bids. Relates to the State Contract Act; provides that all bids shall be presented under sealed cover and accompanied by one of the following forms of bidder's security: cash, a cashier's check, certified check, or a bidder's bond executed by an admitted surety insurer, made payable to the director of the department under which the work is to be performed. The security shall be in an amount equal to at least $100,000 (currently 40 percent of the amount bid). (3-13-08: In Assembly; referred to Committee on Business and Professions) AB 3024 – Public Works Contracts. Requires every original contractor who is awarded a public works contract by a state entity involving an expenditure in excess of an amount calculated as the cost limit by the Director of Finance to file a payment bond. Existing law requires every original contractor who is awarded a public works contract by a state entity, as defined, involving an expenditure in excess of $ 5,000 to file a payment bond. (3-13-08: In Assembly; referred to Committee on Business and Professions) SB 593 – Retainage. This bill eliminates retainage language in connection with contracts between state agencies and private contractors. The struck out language says progress payments shall not be made in excess of 95 percent of the percentage of actual work completed plus a like percentage of the value of material delivered on the ground or stored, and the department shall withhold not less than 5 percent of the contract price until final completion and acceptance of the project. (7-3-07: Passed the Senate; in Assembly Committee on Business and Professions; hearing postponed) SB 1352 – Prevailing Wages. Modifies provisions to provide that an affected contractor, subcontractor, and surety become liable for liquidated damages after 60 days following the service of the assessment or notice of withholding, only if no request for a hearing has been made; requires the affected contractor, subcontractor, and surety to pay all wages determined to be due within 45 days following the service of the administrative decision or notice from the court regarding a writ of mandate. (3-24-08: In Senate; from Committee with author’s amendments; read second time, amended; re-referred to Committee on Labor and Industrial Relations) SB 1449 – Public Works of Improvement. Requires under both the Contractors State License Law, as applicable to public works of improvement only, and the State Contract Act, a contractor, prime contractor, or subcontractor, to pay respective amounts upon receipt of each progress payment, to the subcontractor not later than 7, rather than 10, days of receipt of each progress payment. Deletes a provision relating to a claim against a payment bond an provisions authorizing a claimant to enforce a claim with specified related notices. (2-22-08: Introduced in Senate; may be acted upon on or after March 23) SB 1486 – Design-Build. Enacts the Otay Mesa East Toll Facility Authority Act and establishes the Otay Mesa East Toll Facility Authority to solicit and accept grants of funds and to enter into contracts and agreements for the purpose of establishing highway toll projects to facilitate the movement of goods and people along the State Route 11 corridor and the Otay Mesa East Port of Entry. (3-12-08: In Senate; referred to Committee on Transportation and Housing; set for hearing on April 8) SB 1613 – Threshold. Amends existing law that generally requires contracts for public works to be awarded pursuant to various procedures in the State Contract Act. Exempts contracts awarded by the Department of Transportation, major damage mitigation, equipment leasing or renting, and removal or relocation of structures or improvements on highway rights-of-way. Awarded to the lowest responsible bidder after competitive bidding on any reasonable notice prescribed by the department if the estimated contract exceeds $ 25,000 (currently $2,500). (3-24-08: In Senate; referred to Committee on Transportation and Housing; March 25 hearing canceled at the request of the author) SB 1691 – Mechanics’ Liens. Replaces the terms “original contractor” and “materialman” with the terms “direct contractor” and “material supplier.” Governs the form of security for bonds. Enacts separate provisions governing private works of improvement and public works of improvement. Governs design professionals' liens, notices of cessation, payment bonds, and retention payments. (3-19-08: In Senate; referred to Committee on Judiciary; set for hearing on April 8) SB 1719 – Public Works; Utility Workers; Wage Protection. Existing law generally requires the payment of the general prevailing rate of per diem wages to workers employed on public works projects costing over $ 1,000, unless the awarding body, as defined, elects to initiate and enforce a labor compliance program, as defined, for every public works project under the authority of that awarding body. Existing law generally defines "public works" to include construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds, but exempts from that definition, among other projects, work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority. This bill would delete that exemption and would, thus, define "public works" to include any construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, by a public utility, as defined. This bill would also specify that a public utility, defined as a "public entity" for those limited purposes, must require the payment bond of its contractors, as provided, and must submit, upon request, copies of those payment bonds to the Public Utilities Commission or any worker or member of the public. This bill would also declare the intent of the Legislature to extend the protections offered to workers employed on public works projects to workers employed on construction projects for public utilities, and would endorse and approve the reasoning of the specified Public Utilities Commission decisions. (3-24-08: In Senate; referred to Committee on Labor and Industrial Relations; set for hearing on April 9) COLORADO - CO General Assembly COMMERCIAL HB 1240 – Debt Collection. NEW LAW; Signed by the Governor on 6-2-08. Continues the regulation of debt collectors but sunsets the collection agency board; extends the repeal to July 1, 2017 (currently set to expire on July1, 2008); obligee change. HB 1260 – Miscellaneous Bonds - Titles to Manufactured Homes. NEW LAW; Signed by the Governor on 4-14-08; Effective 7-1-08. Changes the amount of the surety bond required in connection with the issuance of the certificate of title for a manufactured home, which serves to indemnify anyone who might suffer damages or a loss because the certificate was issued; requires that the bond be in an amount equal to twice the value of the manufactured home as listed in the assessor’s records. A savings account, deposit or certificate of deposit is also acceptable under existing law. Bond for Removal of Home. The new law also provides that in order to obtain a certificate to remove the home, the consent from all lien holders and all holders of a mortgage will be required. In lieu of such consent, a corporate surety bond in an amount equal to 1.5 times the value of the lien may be posted. HB 1319 – Manufactured Homes. NEW LAW; Signed by the Governor on 6-2-08; Ch. 373. Eliminates the bond for manufactured home installers effective January 1, 2009; increases the amount of liability insurance required from $100,000 to $1,000,000. SB 114 – Employee Leasing Companies - Tax Bond. NEW LAW; Signed by the Governor on 5-20-08; Effective 8-5-08. Concerns required acts of employee leasing companies by the Department of Labor and Employment; requires each employee leasing company to execute and file a surety bond or deposit with the division money or a letter of credit equivalent to 50 percent of the average annual amount of unemployment tax assessed within the previous calendar year. For a new employee leasing company, the initial bond amount will be the standard tax rate multiplied by 50 percent of the estimated projected taxable payroll for the current calendar year as estimated by the employee leasing company. SB 144 – Miscellaneous Bond. NEW LAW; Signed by the Governor on 4-21-08; Ch. 160; Effective 1-1-09. Requires a repair shop to obtain a surety bond when seeking a certificate of title for an abandoned vehicle if the shop intends to sell it. The bond must be in an amount equal to twice the retail fair market value of the vehicle. SB 153 – Home Care Agencies. NEW LAW; Signed by the Governor on 6-5-08; Effective 8-5-08. Concerns licensure of home care agencies by the Department of Public Health and Environment. Provides that all home care agencies shall provide evidence of and maintain either commercial professional liability insurance coverage or a surety bond in amounts set through rules of the state board. CONTRACT HB 1306 – Retainage. FAILED; adjournment. Concerns payment of amounts due under a construction agreement; provides that the release of retainage to a contractor or subcontractor shall not be deemed a waiver or release of any claims by the owner or contractor for damages or loss due to any later-discovered incomplete work or defect in the contractor or subcontractor’s work. The retainage, and any interest thereon, paid to a contractor for the benefit of a subcontractor shall be paid by the contractor to the subcontractor entitled to the payment within seven days after receipt by the contractor. CONNECTICUT - CT General Assembly COMMERCIAL HB 5113 – Professional Employer Organizations. NEW LAW; Signed by the Governor on 6-2-08; Effective 1-1-09. Requires PEOs to maintain at least $150,000 in working capital or to obtain a bond, letter of credit or securities with a market value of $150,000. The bond would secure the payment of any tax, wage, benefit or other entitlement due to or with respect to a covered employee if the PEO does not make the payment when due. HB 5577 – Correspondent Lenders. NEW LAW; Signed by the Governor on 6-12-08; Effective 7-1-08. Subjects correspondent lenders to the current license bond requirement for mortgage brokers and lenders; increases the bond for mortgage lenders and brokers from $40,000 to $60,000 after January 1, 2009. SB 137 – Waste Haulers. FAILED; adjournment. Requires the licensing of private solid waste haulers by the Department of Environmental Protection. Requires the filing of a $10,000 surety bond or other security deemed sufficient by the Commissioner of Environmental Protection for each vehicle used in the collection of solid waste. SB 183 – Debt Adjusters. FAILED; adjournment. Concerns surety bonds for debt adjusters; amends the bonding requirements. Provides that the principal amount of the bond shall be the greater of $40,000 or twice the amount of the average daily balance of the payments received by the applicant during the preceding 12 months ending July 31 of each year. Also provides that if a licensee or applicant for renewal of a license establishes that it is unable to comply with the bond required, it shall file a bond for the highest principal amount it can obtain, provided such amount shall be a minimum of $40,000, and the licensee or applicant for renewal shall, in lieu of the balance of the required amount of the bond, deposit a sum equal to the amount of the bond required by subdivision (1) of this subsection, less the amount of the bond filed with the commissioner, in cash or cash equivalents. SB 316 – Viatical Settlement Providers. FAILED; adjournment. Adopts the requirements of the viatical settlements model act, which includes proof of financial responsibility (surety bond, cash deposit, CDs or securities, or any combination thereof) in the amount of $250,000. SB 423 – Mortgage Lenders and First Mortgage Brokers. FAILED; adjournment. Provides that no license or renewal thereof shall be granted unless the applicant has filed a bond in an amount equal to 30 percent of the conforming loan size limit for a single family dwelling as established from time to time by the Federal National Mortgage Association. Also provides that no mortgage lender or broker shall make, provide for or arrange for a mortgage loan without first disclosing to the borrower the existence of its bond and the steps necessary to make a claim on the bond in the event of any injury, and no bond shall include any provision limiting the rights of any party to recover damages within the statute of limitations for the claim asserted. SB 426 – Collection Agencies. FAILED; adjournment. Increases the bond required of collection agencies from $5,000 to $50,000. SB 508 – Uniform Trust Code. FAILED; adjournment. Adopts the Connecticut Uniform Trust Code; provides that a trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and, in the case of noncharitable trusts, the court has not dispensed with the requirement. The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. Except in the case of a charitable trust, the court may modify or terminate a bond at any time. DELAWARE - DE General Assembly COMMERCIAL HB 198 – Manufactured Home Installation. This bill amends provisions relating to manufactured home installation. The applicant shall provide evidence that he/she or his/her employer has and will maintain a surety bond or irrevocable letter of credit in the form and minimum amount to be determined by the Board in its rules and regulations, that will cover the cost of repairing all damage to the home and its supports caused by the installer, or the installer’s or employer’s employees or agent, during the installation. The bond principal is responsible for all acts or omissions of the licensed manufactured home installer and any individual acting under the supervision of or assisting the installer in the installation of the manufactured housing. (Carried over from 2007; Introduced and assigned to the House Subcommittee Manufactured Housing Committee on 6-13-07) HB 215 – Manufactured Home Installation. Same as HB 198. (Carried over from 2007; Passed by the House on 6-26-07) HB 240 – Court Bonds. This bill provides for appeal bonds in various courts. (Carried over from 2007; Passed by House on 6-30-07) SB 38 – Prescription Drug Distributor. This bill provides that the Board of Pharmacy shall require every wholesale drug distributor applicant to submit a bond of at least $100,000, or other equivalent means of security, payable to a fund established by the Board, to secure payment of any fines or penalties imposed and any fees and costs incurred by the Board in connection with the license. (Carried over from 2007; Introduced and reported out of Senate Health and Social Services Committee on 3-21-07) SB 58 – Medical Discount Card Providers. This bill establishes a regulatory system for medical discount cards. Each licensed discount medical plan organization shall maintain in force a surety bond in its own name in an amount not less than $50,000 to be used in the discretion of the Commissioner to protect the financial interests of members. (Carried over from 2007; Passed by the Senate, reported out of House Economic Development/Banking & Insurance Committee on 6-14-07) SB 177 – Public Official Bond. This bill establishes the Delaware Health Security Authority, and provides that all officers and employees of the Authority having access to cash or negotiable securities shall give bond, at the Authority’s expense, in such amount as the Authority prescribes. The persons required to give bond may be included in one or more blanket or schedule bonds. (Carried over from 2007; Introduced and assigned to Senate Finance Committee on 9-18-07) CONTRACT HB 28 – Construction Services-School Buildings. This bill provides that the local board of education, in its discretion, may require the private developer to provide a performance and payment bond for construction work, and may require a bond or other appropriate guarantee to cover any other guarantees, products or services to be provided by the private developer. (Carried over from 2007; Introduced and assigned to the House Capital Infrastructure Committee on 4-4-07). FLORIDA - FL State Legislature COMMERCIAL HB 661 – Insurance Adjusters. Requires applicants for an insurance adjuster license to file a $50,000 bond. (3-11-08: In House; referred to Insurance by Jobs and Entrepreneurship Council) HB 671 – Sellers of Travel. The bond amounts are based on the seller’s business activities, and range from $25,000 to $300,000. (4-2-08: In House; placed on calendar) HB 675 – Ticket Resellers. Relates to ticket resellers; provides new regulatory provisions for the registration of resellers of tickets for admission to or the rendering of services by any sports, amusement, concert, or other facility offering services to the general public; provides for annual registration with the Department of Agriculture and Consumer Services; $25,000 bond requirement. (3-26-08: In House; on Environment and Natural Resources Council agenda) HB 679 – Community Associations. Provides that the association shall obtain and maintain adequate insurance or fidelity bonding of all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. (3-4-08: In House; referred to Courts by Safety and Security Council) HB 955 – Money Services Businesses. This bill expands the scope of the Money Transmitters Code to apply to all money services businesses; requires licensure rather than registration. Applicants are required to file a corporate surety bond in an amount as specified by rule, but may not be less than $50,000 or exceed $2,000,000. The rule shall provide allowances for financial condition, number of locations, and anticipated volume of the licensee. (3-14-08: In House; now in Jobs and Entrepreneurship Council) HB 1005 – Construction Contracting. This bill would require the submission of a bond as a prerequisite for initial certification or registration; provide for the amount of and requirements for such bond; require the bond to remain in force unless the license is revoked or becomes inactive; provide for bringing actions on the bond or letter of credit for damages; provide a timeframe for such actions; provide that failure to maintain a bond results in placement of license on inactive status and possible disciplinary action; provide for bond cancellation by surety; provide requirement for notification to the department by surety; provide for continuation of bond coverage for a period of time after cancellation notice; provide that an irrevocable letter of credit may be used in lieu of a bond. (3-11-08: In House; referred to Business Regulation by Jobs and Entrepreneurship Council) HB 1249 – Community Associations. Provides that the association shall obtain and maintain adequate insurance or fidelity bonding of all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. (3-19-08: In House; favorable with 1 amendment by Courts; now in Safety and Security Council) HB 1293 – Wine Shippers. Requires shippers of wine to file a $5,000 surety bond. (3-7-08: In House; referred to Jobs and Entrepreneurship Council; Policy and Budget Council) HB 1349 – Condominium Associations. The association shall obtain and maintain adequate insurance or fidelity bonding of all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. (3-19-08: In House; favorable by Courts; now in Safety and Security Council) SB 290 – Video Lottery Retailer Bond. This bill provides that each video lottery retailer shall post a bond payable to the state in an amount determined by the Department as sufficient to guarantee the payment of revenue due in any payment period. The initial bond prior to commencement of operations shall be $2,000,000 and conditioned to make the payments to the Department. (3-4-08: In Senate; referred to Regulated Industries; Finance and Tax; General Government Appropriations) SB 672 – Wrecker Services-Court Bond. This bill provides for regulatory oversight of wrecker services by the Department of Agriculture and Consumer Services; changes “towing storage operator” to “wrecker company”. Provides that upon filing of a complaint, an owner or lienholder may have their vehicle released upon posting with the court a cash or surety bond or other adequate security equal to the amount of the charges for towing or storage and lot rental amount to ensure the payment of the charges in the event he or she does not prevail. (4 2-08: In Senate; pending reference review under Rule 4.7(2)) SB 1096 – Wine Shippers. Requires shippers of wine to file a $5,000 surety bond for the payment of all taxes. (3-28-08: In Senate; pending reference review under Rule 4.7(2); placed on calendar, on second reading) SB 1098 – Public Adjuster Apprentices. Requires public adjuster apprentices to post a $50,000 bond. (3-26-08: In Senate; now in Criminal Justice) SB 1310 – Sellers of Travel. The bond amounts are based on the seller’s business activities, and range from $25,000 to $300,000. (3-21-08: In Senate; now in Criminal Justice) SB 1374 – Home Health Agency License Bond. This bill requires an applicant for a new home health agency license to submit a $50,000 surety bond or other equivalent means of security, such as an irrevocable letter of credit or a deposit in a trust account or financial institution, payable to the Agency or Health Care Administration. The bond is to secure payment of any administrative penalties and any fees and costs that the licensee fails to pay 30 days after the fine or costs become final. (4-2-08: In Senate; CS/CS/CS by Health and Human Services Appropriations) SB 2086 – Condominium Associations. The association shall obtain and maintain adequate insurance or fidelity bonding of all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. (3-27-08: In Senate; pending reference review under Rule 4.7(2); now in Banking and Insurance) SB 2158 – Money Services Businesses. This bill expands the scope of the Money Transmitters Code to apply to all money services businesses; requires licensure rather than registration. Applicants are required to file a corporate surety bond in an amount as specified by rule, but may not be less than $50,000 or exceed $2,000,000. The rule shall provide allowances for financial condition, number of locations, and anticipated volume of the licensee. (3-28-08: In Senate; pending reference review under Rule 4.7(2); now in General Government Appropriations) SB 2194 – Construction Contracting. This bill would require the submission of a bond as a prerequisite for initial certification or registration; provide for the amount of and requirements for such bond; require the bond to remain in force unless the license is revoked or becomes inactive; provide for bringing actions on the bond or letter of credit for damages; provide a timeframe for such actions; provide that failure to maintain a bond results in placement of license on inactive status and possible disciplinary action; provide for bond cancellation by surety; provide requirement for notification to the department by surety; provide for continuation of bond coverage for a period of time after cancellation notice; provide that an irrevocable letter of credit may be used in lieu of a bond. (3-11-08: In Senate; introduced) SB 2470 – Condominium Associations. The association shall obtain and maintain adequate insurance or fidelity bonding of all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. (3-26-08: In Senate; pending reference review under Rule 4.7(2); remaining references corrected to Banking and Insurance; Community Affairs; Judiciary; now in Banking and Insurance) SB 2504 – Community Associations. The association shall obtain and maintain adequate insurance or fidelity bonding of all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. (3-13-08: In Senate; introduced, referred to Regulated Industries; Banking and Insurance; Community Affairs; Judiciary) SB 2558 – Medical Equipment Provider. Provides that unless specifically exempted, a durable medical equipment and medical supply provider must file a $50,000 surety bond for each provider location, with up to a maximum of five bonds statewide or an aggregate bond of $250,000 statewide. (3-20-08: In Senate; introduced, referred to Health Policy; Health Regulation; Health and Human Services Appropriations) SB 2608 – Wine Shippers. Requires shippers of wine to file a $5,000 surety bond for the payment of all taxes. (3-6-08: In Senate; introduced, referred to Regulated Industries; Criminal Justice; Finance and Tax; General Government Appropriations) SB 2756 – Drug Wholesalers. Provides that a prescription drug wholesale distributor that applies to the department for a new permit or the renewal of a permit must submit a bond of $100,000, or other equivalent means of security acceptable to the department. (4-1-08: In Senate; Committee substitute by Health Regulation) CONTRACT HB 159 – Immigration-Work Authorization Program. This bill provides that no public employer shall enter into contracts for the physical performance of services within the state with contractors not registered and participating in a federal work authorization program. (3 4-08: In House; referred to State Affairs by Government Efficiency and Accountability Council) SB 388 – Immigration-Work Authorization Program. This bill provides that no public employer shall enter into contracts for the physical performance of services within the state with contractors not registered and participating in a federal work authorization program. (3 4-08: In Senate; referred to Military Affairs and Domestic Security; Governmental Operations; Criminal Justice; General Government Appropriations) GEORGIA - GA General Assembly COMMERCIAL HB 237 – Tax Bond. Approved by the Governor on 5-14-08; Eff. 1-1-09. Subjects manufacturing equipment to the same sales and use tax requirement for manufacturing machinery. Current law allows a purchaser to obtain an exemption from the taxes by posting a bond that is conditioned on the purchaser’s payment of the taxes if the sale is later determined not to qualify for the exemption. HB 416 – License Bond. FAILED: Clarifies existing law to provide that the licensing and surety bond requirements apply to both on-line and classroom driver improvement clinics and DUI Alcohol and Drug Use Risk Reduction programs. The bond minimum is currently $10,000. HB 420 – Lenders License Bond. FAILED: Requires lenders who make loans of less than $3,000 to post a $25,000 bond per location, not to exceed a total of $250,000. HB 563 – Malt Beverage Brewers. FAILED: Subjects malt beverage brewers to an additional licensing and surety bond requirement in order to sell its malt beverages at retail in a tasting room on the brewer’s premises. HB 789 – Performance Bond. FAILED: Requires any private person operating a public water system to post a performance bond. HB 798 – Fidelity Bond-Pharmacy Benefits Manager. FAILED: Requires a pharmacy benefits manager who manages a person’s prescription drug benefits to register and maintain a fidelity bond equal to at least 1% of the amount of the funds handled or managed annually. HB 1000 – Miscellaneous Bond. FAILED: Provides for the issuance of a certificate of title for certain watercraft; allows the State Revenue Commissioner to require a surety bond in an amount equal to the value of the vessel as a condition of obtaining the certificate of title if the Commissioner is not satisfied as to the proof of ownership, or that there are no undisclosed security interest in it. HB 1055 – Immigration Service Providers. Approved by the Governor on 5-14-08. Requires immigration assistance providers to be licensed and post a $5,000 bond. The Secretary of State must approve the bond form. HB 1381 – Locksmith Bond. FAILED: Requires locksmiths to be licensed or registered by the Secretary of State; applicants are required to file a $25,000 bond. SB 413 – Fight Promoters. FAILED: Relates to the licensure and regulation of boxing, wrestling and martial arts; requires promoters to post a $25,000 bond. SB 485 – Home Inspectors. FAILED: Requires home inspectors to provide evidence of possession of a surety bond in the amount of $100,000.00 or proof of minimum net assets in an amount specified by the board. CONTRACT SB 180 – Performance and Payment Bond. FAILED: Requires a performance and payment bond as a condition of entering into a guaranteed cost savings contract. The bond would be in an amount that a governmental unit would find “reasonable and necessary to protect its interests.” SB 374 – Mechanics’ and Materialmen’s Liens. Approved by the Governor on 5-14-08. Revises certain time periods for filing materialmen's and mechanics' liens (12 months to 365 days). Provides that within seven days of filing a lien bond and any attachments, the party filing the bond shall send a notice of filing such bond and a copy of the bond by registered or certified mail or statutory overnight delivery to the lien claimant at the address stated on the lien or, if no such address is shown for the lien claimant, to the person shown as having filed such lien on behalf of the claimant at the indicated address of such person or, if the bond is filed by a contractor, to the owner of the property, provided that whenever the lien claimant or the owner is an entity on file with the secretary of state's corporations division, sending the notice of filing such bond and a copy of the bond to the company's address or the registered agent's address on file with the secretary of state shall be deemed sufficient; provided, however, that the failure to send the notice of filing the bond and copy of the bond shall not invalidate the bond for purposes of discharge of a claim of lien under this code section. HAWAII - HI State Legislature COMMERCIAL HB 1988 – Establishes a macadamia nut commission to develop marketing and promotional programs for the macadamia nut industry. All moneys received from assessments or otherwise received by the commission shall be deposited into any bank the commission may designate. Moneys shall be disbursed by the commission through any agent designated by the commission for that purpose. Any agent shall be bonded by a fidelity bond in favor of the commission in the amount of not less than $ 25,000. (3-20-08: In Senate; reported from Committee on Agriculture and Hawaiian Affairs (Standing Committee Report No. 3132) with recommendation of passage on second reading, as amended (SD 1) and referral to Ways and Means.; report adopted; passed second reading, as amended (SD 1) and referred to Ways and Means) SB 2306 – Makes extensive amendments to Chapter 454, Hawaii Revised Statutes, relating to regulation and licensing of mortgage brokers and solicitors; replaces “mortgage solicitor” with “loan originator.” Revises the bond requirements as follows: a mortgage brokerage firm with one to five mortgage brokers or loan originators shall post a $25,000 bond; a mortgage brokerage firm with six to ten mortgage brokers or loan originators shall post a $50,000 bond; and a mortgage brokerage firm with eleven or more mortgage brokers or loan originators shall post a $75,000 bond. (2-12-08: In Senate; deferred by the Committee on Commerce, Consumer Protection & Affordable Housing) SB 3010 – Makes extensive amendments to Chapter 454, Hawaii Revised Statutes, relating to regulation and licensing of mortgage brokers and solicitors; replaces “mortgage solicitor” with “loan originator.” Revises the bond requirements as follows: a mortgage brokerage firm with one to five mortgage brokers or loan originators shall post a $25,000 bond; a mortgage brokerage firm with six to ten mortgage brokers or loan originators shall post a $50,000 bond; and a mortgage brokerage firm with eleven or more mortgage brokers or loan originators shall post a $75,000 bond. (3-7-08: In House; referred to Committee on Consumer Protection & Commerce/Judiciary, Finance) SB 3025 – Establishes a cap on the bond amount that managing general agents are required to furnish; requires insurers to require managing general agent’s compliance with bond and errors and omissions policy requirements. Provides that the insurer shall require the managing general agent to obtain and maintain a surety bond for the protection of the insurer. The bond shall be in the amount of $100,000 or ten percent of the managing general agent's total annual written premium nationwide for the insurer in the prior calendar year, whichever is greater; provided that the amount of the surety bond shall not exceed $500,000. (3-7-08: In House; referred to Consumer Protection & Commerce/ Judiciary, Finance) IDAHO - ID State Legislature COMMERCIAL HB 365 – Vehicle Dealers. Signed by the Governor on 3-19-08; SL Ch. 198; Eff. 7-1-08. Subjects dealers of “motor-driven cycles” to the existing $20,000 bond requirement. HB 440 – Truck Camper Dealers. Signed by the Governor on 3-14-08; SL Ch. 106; Eff. 1-1-09. Subjects dealers who exclusively sell truck campers to existing law, which requires a $10,000 bond. HB 450 – Residential Mortgage Brokers. Signed by the Governor on 3-31-08; SL Ch. 313; Eff. 7 1-08. Amends the Idaho Residential Mortgage Practices Act to promote greater uniformity in mortgage licensing by eliminating the $10,000 individual surety bond requirement for mortgage loan originator licensees. HB 451 – Collection Agencies. Signed by the Governor on 4-1-08; SL Ch. 347; Eff. 7-1-08. Makes changes to the permit and bonding requirements for collection agencies and debt or credit counselors; one bond has to obtained instead of two. No change to bond amount. HB 686 – Tax Bond. FAILED: Would have increased the minimum and maximum amounts of the bond required for fuel distributors to not less than $1,500 and not more than $300,000. The bill also would have expanded coverage under the bond, requiring compliance with the new highway preservation tax law that the bill also would have enacted. SB 1377 – Wholesale Drug Distributors. Signed by the Governor on 3-18-08; SL Ch. 190; effective 3-18-08. Eliminates the bond requirement for wholesale drug distributors. SB 1397 – Public Adjusters. Signed by the Governor on 3-18-08; SL Ch. 179; Eff. 7-1-08. Enacts the NAIC public adjuster model legislation; requires evidence of financial responsibility through a surety bond or letter of credit in an amount of at least $20,000; authorizes the Department of Insurance to make recovery on behalf of any person who sustains damages resulting from erroneous acts, a failure to act, conviction of fraud, or conviction of unfair practices. ILLINOIS - IL General Assembly COMMERCIAL HB 4941 – Viatical Settlements. Creates the Viatical Settlements Act of 2008; provides for the regulation of viatical settlement providers, brokers and life insurance producers acting as brokers who enter into viatical settlements; provides license requirements and establishes grounds for the suspension, denial, nonrenewal or revocation of a license; requires viatical settlement providers to demonstrate evidence of financial responsibility in a format prescribed by the Director through either a surety bond or a deposit of cash, certificates of deposit or securities or any combination thereof in the amount of $250,000. (3-12-08: In House; placed on Calendar 2nd Reading, short debate) HB 5489 – Public Adjusters. Creates the Public Adjusters Law; requires public adjusters to be licensed; applicants shall secure evidence of financial responsibility through a security bond or irrevocable letter of credit in the minimum amount of $20,000. (3-12-08: In House; House Amendment No. 1 filed; House Amendment No. 1 adopted in Judiciary I - Civil Law Committee by voice vote; do pass as amended/short debate; placed on Calendar 2nd Reading. short debate) SB 2760 – Electricians. Creates the Electricians Licensing Act; provides for the regulation of electricians and electrical contractors by the Department of Labor; sets forth powers and duties of the Director of Labor, licensure requirements, grounds for discipline, penalties for violation of the Act and administrative procedure; establishes the Illinois State Board of Electrical Examiners. Eliminates the local bond requirements. (3-19-08: In Senate; added co-sponsor) CONTRACT HB 4920 – Retainage. Amends the Contractor Prompt Payment Act; provides that under a construction contract, it is unlawful to withhold more than 5% retainage on payments earned by contractors and subcontractors, and that upon completion of 50% of the work under the contract, retainage may not exceed 2.5%. (3-13-08: In House; second reading, short debate; placed on Calendar Order of 3rd Reading, short debate) SB 1890 – Threshold. Amends the Public Construction Bond Act; requires surety bonds on public construction projects costing over $100,000 (now, over $5,000). With respect to bonds securing contracts between the Capital Development Board or a public institution of higher education and a contractor, requires that within 15 days after notice to the surety that the principal is in default, the surety must satisfy certain obligations. (3-13-08: In Senate; do pass, State Government and Veterans Affairs; placed on Calendar Order of 2nd Reading April 1, 2008) INDIANA - IN General Assembly Please check back for 2008 legislative Information. IOWA - IA Legislature General Assembly COMMERCIAL HB 2064 – Prepaid Cemetery and Funeral Services. FAILED; adjournment. Would have increased the amount of the bond required for a purchase agreement for cemetery merchandise, funeral merchandise and funeral services, currently 80% of the payments made for the purchase agreement. The bill would have required the bond to be equal to the amount of the payments. HB 2398 and SB 2233 were similar bills. HB 2209 – License Bond for Plumbers and Mechanical Professionals. FAILED; adjournment. Would have revised the bond requirement for plumbing and mechanical system contractors, basing the amount of the bond required on the type and the amount of the applicant’s work. HB 2555 – NEW LAW; Signed by the Governor on 4-25-08; effective upon enactment. Subjects surety and guaranty bond filings to the 30-day deemer provisions in the Iowa rating law. HB 2556 – NEW LAW; Signed by the Governor on 5-10-08; effective 7-1-08. Increases the amount of the bond required for mortgage bankers and mortgage brokers from $50,000 to $100,000; law requires a surety bond or collateral. Also requires industrial loan companies to post a $25,000 surety bond. HB 2631 – Miscellaneous Bond. FAILED; adjournment. Would have required permit holders selling corn seed under a repurchase contract to post a bond in the amount of the purchase price, which would have been in addition to the $25,000 bond required for purchase contracts between a permit holder and the grower. HB 2646 – NEW LAW; Signed by the Governor on 4-16-08; effective 8-1-2009. Provides for the licensure of persons installing fire protection systems; requires applicants for a fire sprinkler installer and maintenance worker license or renewal of an active license shall provide evidence of a public liability insurance policy and surety bond in an amount determined sufficient by the Department by rule. SB 317 – Miscellaneous Bond - Home Improvement Contractors. FAILED; adjournment. Would have required a home improvement contractor to post a $75,000 bond prior to accepting a contract. The bond would have provided for payment to any person damaged by the contractor’s breach of the contract or violation of existing law. CONTRACT HB 810 – Prevailing Wage Penalties. FAILED: This was an onerous prevailing wage bill that would have imposed rigorous penalties on contractors, subcontractors and the surety for a contractor’s or subcontractor’s failure to pay the appropriate wages. Such penalties would have included termination of the contract, liability to the surety for excess costs resulting from failure to pay the prevailing wage, onerous bond form requirements, and additional penalties. SB 3039 – Escrow Agency Bond. FAILED: This bill makes provisions for the licensure and regulation of escrow agents and escrow agencies. The proposed new section relating to bonds states that an escrow agency shall deposit with the administrator and keep in full force and effect a corporate surety bond in an amount based on the average monthly balance: (1) $50,000 or less - $20,000 bond; (2) more than $50,000 but not more than $250,000 - $50,000 bond; (3) more than $250,000 but not more than $500,000 - $100,000 bond; (4) more than $500,000 but not more than $750,000 - $150,000 bond; (5) more than $750,000 but not more than $1,000,000 - $200,000 bond; and (6) more than $1,000,000 - $250,000 bond. KANSAS - KS State Legislature Please check back for 2008 legislative Information. KENTUCKY - KY State Legislature COMMERCIAL HB 77 – Miscellaneous Bond - Animal Confiscation. FAILED: Would have required a defendant to post a security deposit or bond in an amount sufficient to reimburse all reasonable costs incurred for the care of the confiscated animal or to forfeit the animal. HB 192 – Permit Bond. FAILED: Would have created a bond requirement for oversized/overweight watercraft transported on highways. The bond would have been a discretionary requirement and conditioned on indemnification of the state or counties for damage to highways or bridges. (SB 209) HB 348 – Viatical Settlements. (signed by the Governor on 4-9-08; Acts Ch. 32) Amends the viatical settlement act; substitutes the word “life” for “viatical” so it is now the life settlement act. HB 417 – Vehicle Protection Product Warranties. FAILED: Would have specified the amount of the insurance policy or performance bond that could be obtained as security for service contracts; provided that the bond or policy could not have exceeded $50,000 or 25% of the annual revenue for makers of vehicle protection product warranties. HB 500 – License Bond - Check Cashing. FAILED: Would have allowed check cashing or deferred deposit service providers to obtain a surety bond to fulfill the financial security requirements; current law only allows irrevocable letters of credit, savings certificates and trust funds. HB 531 – License Bond - Grain Purchasers. FAILED: Would have increased the surety bond requirements for purchasers of grain valued at more than $1 million within a calendar month. Additional surety would have been required on a dollar-for-dollar basis if the total value of grain purchases exceeded the combined value of the licensee’s net worth and existing bond. HB 552 – Mortgage Lenders/Brokers License Bond. (signed by the Governor on 4-24-08; Acts Ch. 175; effective immediately) Relates to mortgage loan originator licensing, mortgage fraud, mortgage loan brokers, disclosures to borrowers, escrow accounts, and mortgage loan servicers. Provides that the bond shall be made payable to the executive director of the Office of Financial Institutions. Every bond shall be available for the recovery of expenses, fines and fees levied by the executive director, and for losses or damages that are determined to have been incurred by any borrower or consumer as a result of the applicant’s or licensee’s failure to comply with the requirements of this subtitle. HB 648 – Notary Bonds. FAILED: Would have increased the bond requirement to $25,000 and required the bonds to be filed with the Secretary of State instead of the circuit county courts. HB 684 – Fight Promoters’ Bonds. (signed by the Governor on 4-11-08; Acts Ch. 91) Relates to the Kentucky Boxing and Wrestling Authority; requires a license or permit for individuals involved in a show or exhibition; requires a bond before a promoter’s license is granted. Before a promoter license is granted to any person to hold or promote boxing, kickboxing, mixed martial arts, or wrestling shows or exhibitions, the applicant shall file with the authority a bond in the sum of $5,000, to be approved as to form and the sufficiency of the sureties by the authority, conditioned for the payment of the taxes, fines or any fees imposed by the authority. HB 765 – Financial Assurance-Meth Lab Cleanup. (signed by the Governor on 4-24-08; Acts Ch. 161) Permits the Environmental and Public Protection Cabinet to establish a tiered response system for methamphetamine-contaminated properties and to promulgate regulations for decontamination standards. In order to become a certified decontamination service contractor, a contractor shall register with the Cabinet and post a surety bond or obtain other financial assurance in the amount of $100,000 for a Tier 1, 2 or 3 cleanup, and $250,000 for a Tier 4 cleanup, which may be aggregated. SB 20 – Gaming. FAILED: Would have required owners of casinos, racing associations and limited racing associations to post security in the form of cash or securities, a surety bond or an irrevocable letter of credit in an amount determined by the Kentucky Gaming Commission to reflect the amount that a local jurisdiction would have spent for infrastructure improvements and other facilities associated with a casino or racetrack conducting casino gaming. CONTRACT HB 481 – Bond Threshold. FAILED: Would have increased the state bond threshold at which payment and performance bonds are required for construction contracts from $40,000 to $100,000. The bill also would have raised the bond threshold on contracts for goods and services from $40,000 to $100,000. LOUISIANA - LA State Legislature Please check back for 2008 legislative Information. MAINE - ME State Legislature COMMERCIAL HB 1632 – Miscellaneous Bond - Telephone Utilities. As enacted, the new law requires telephone utilities to have $250,000 in fixed assets and post a surety bond in the same amount to ensure that the utility will be able to meet its financial obligations. CONTRACT HB 1478 – State Bond Threshold. (signed by the Governor on 3-18-08) As enacted, the new law increases from $100,000 to $125,000 the threshold limit for the construction, alteration or repair of any public building or other public improvement or public work for which a person must provide a performance and payment bond, and allows the state discretion to accept letters of credit in lieu of bonds. The new law also requires that the name and contact information of the surety be included on the bond form. Actions against performance and payment bonds must be brought in the county where the work was done. MARYLAND - MD General Assembly COMMERCIAL HB 305 – Permit Bond - Septic Systems. Signed by the Governor on 4-8-08; Eff. 7-1-08. Authorizes the Howard County governing body to require multiuse septic system installers to post a performance bond before installing the system. HB 363 – Mortgage Lenders. Signed by the Governor on 4-8-08. Increases the amount of the bond required for mortgage lenders, which is currently based on the lender’s aggregate principal amount of loans. The new law eliminates the base bond of $15,000 for applicants who have not conducted any loans in the three years prior to the application. The bond increases are: Loan volume of $3 million or less - $50,000; loan volume of $3 to $10 million - $100,000; and loan volume of more than $10 million - $150,000. (SB 270) HB 1223 – Debt Settlement Services. FAILED: Would have required persons providing debt settlement services to the existing law that regulates debt management service providers, which includes a bond of at least $10,000 but not more than $1 million. HB 1599 – Permit Bond. FAILED: Would have required a bond or other security in connection with a right-of-way permit for the installation of certain utilities, guaranteeing the restoration of county property at the site where the work was performed. CONTRACT HB 312 – Individual Surety Law Revisions. Signed by the Governor on 4-24-08; Eff. 10-1-08. This bill makes changes to the 2006 Maryland Individual Surety Law; the law will now sunset on 9-30-2014. The new law also eliminates the requirement for individual sureties to attach the federal GSA Standard Form 28, Affidavit of Individual Surety, to the bid security. Instead, the new law requires an affidavit in a form that the Board of Public Works has approved. SB 313 – Retainage. Signed by the Governor on 5-13-08; Eff. 10-1-08. The new law establishes a $250,000 threshold on construction contracts for withholding retainage, and caps the retainage at 5% of the payments. Contractors are prohibited from withholding more retainage from subcontractors than the owner has withheld, and subcontractors cannot withhold from their subcontractors more retainage funds than the contractor has withheld from them. MASSACHUSETTS - MA General Court Please check back for 2008 legislative Information. MICHIGAN - MI State Legislature Please check back for 2008 legislative Information. MINNESOTA - MN State Legislature COMMERCIAL HF 1225 – Mortgage Originator License Bond. FAILED; adjournment. Would have required mortgage originators to have either approval as a mortgagee by either the federal Department of Housing and Urban Development or the Federal National Mortgage Association; a minimum net worth, net of intangibles, of at least $250,000; or post a surety bond or irrevocable letter of credit in the amount of $100,000. (SF 1474 also failed to pass) HF 1515 – Debt Management Service Providers. FAILED; adjournment. Would have required debt management service providers to post a bond of not less than $5,000. HF 2906 – Miscellaneous Bond - Dangerous Dog. FAILED; adjournment. Would have increased the amount of the surety bond or liability insurance policy from $50,000 to $300,000 for ownership of a dangerous dog. HF 3034 – License Bond. NEW LAW; Signed by the Governor on 5-19-08. Subjects restricted master plumber licensees and restricted journeyman plumber licensees to the $25,000 bond requirement for master plumber licensees. HF 3534 – Viatical Settlements. FAILED; adjournment. Would have required viatical settlement providers and brokers to provide evidence of financial responsibility, which could have been in the form of a $250,000 surety bond. (SF 3063 also failed) HF 4067 – Home Inspectors. FAILED; adjournment. Would have required home inspectors to have a written contract with their customers for inspection services. Inspectors would have had to post a bond of at least $100,000 prior to entering into a contract. The bill would have prohibited the contract from limiting the inspector’s liability for damages. (SF 3751 also failed) SF 2930 – Debt Management Service Providers. NEW LAW; Signed by the Governor on 4-21-08; effective 4-22-08. Permits a temporary waiver of any requirements for debt management service providers, including registration and bonding requirements. SF 2942 – School Bond. NEW LAW; Signed by the Governor on 5-12-08; effective 8-1-08. Provides that a school required to obtain a private career school license due to the use of “academy,” “institute,” “college,” or “university” in its name and which is also licensed by another state agency or board shall be required to provide a school bond of $10,000. SF 3685 – Promoter Bonds. FAILED; adjournment. Would have expanded existing law regulating boxing to include all combative sports, subjecting promoters of tough person and mixed martial arts contests to the licensure and bonding requirements for boxing promoters. (HF 3913 also failed). CONTRACT HF 1443 – Prevailing Wages. FAILED; adjournment. Would have amended the law to include new penalties that the surety could have been asked to pay if the contractor was insolvent. The contracting agency could have ordered payment of wages owed, plus a 100% penalty to the workers, and then could have ordered another penalty of 100% of the amount owed to be paid to the state. MISSISSIPPI - MS State Legislature COMMERCIAL HB 892 – Miscellaneous Bond. NEW LAW; Signed by the Governor on 5-12-08; effective 7-1-09. Requires certified professional evaluators of individual on-site wastewater disposal systems to provide proof of an errors and omissions policy or “surety” with liability limits of at least $50,000 per occurrence and at least $100,000 in the total aggregate amount. HB 919 – Preneed Funeral Contracts. NEW LAW; Signed by the Governor on 5-10-08; effective upon enactment. Requires sellers of preneed funeral contracts to post a $250,000 bond. HB 1388 – Manufactured Homes. NEW LAW; Signed by the Governor on 4-8-08; effective 7-1-08. Authorizes the Commissioner of Insurance to adopt regulations to establish bonding and/or insurance requirements in connection with the licensure of manufacturers, distributors, retailers and transporters or installers of factory-built homes. CONTRACT HB 715 – Liens. FAILED; died in committee. Would have prohibited materialmen liens on real property if a payment bond was filed prior to the start of any work, so long as the payment bond was in an amount equal to 100% of the prime contractor’s contract price. SB 2925 – Check Sellers and Money Transmitters. FAILED; died in committee. Would have significantly changed the amount of the license bond required of check sellers. Existing law requires a bond or other security of at least $25,000, and an additional $15,000 for each additional business location. This bill would have increased the bond cap from $250,000 to $1,000,000. SB 2988 – Immigration Bill. NEW LAW; Signed by the Governor on 3-17-08; effective 7-1-08. Any employer violating the provisions of the law can have its public contracts cancelled, become ineligible for any state or public contract for up to three years and have its licenses and permits suspended for up to one year. The contractor or employer shall be liable for any additional costs incurred by a public entity because of cancellation of a contract or the loss of any license or permit to do business. MISSOURI - MO General Assembly COMMERCIAL HB 1461 – Uniform Debt Management Services. This bill establishes the Uniform Debt Management Services Act to regulate debt management services. Providers shall file a surety bond that will be in effect during the period of registration and for two years after the provider ceases providing debt management services, and be in the amount of $50,000 or other larger or smaller amount that the administrator determines is warranted by the financial condition and business experience of the provider. (1-10-08: In House; read second time) MONTANA - MT State Legislature The Montana State Legislature will not be holding a regular legislative session in 2008. NEBRASKA - NE State Legislature COMMERCIAL LB 501 – License Bond - Cigarette Sellers. FAILED: Would have required direct sellers of cigarettes to obtain a permit for affixing stamps or cigarette tax meter impressions and post a bond in an amount not less than $1,000 (same as wholesale dealers). LB 689 – Tax Bond - Wineries. FAILED: Would have created a new license and bond requirement for limited wineries, guaranteeing payment of all taxes on liquor sales. LB 846 – Tax Bond - Motor Fuel. (signed by the Governor on 4-21-08; Eff. 7-17-08) The new law provides that the current bond required for motor fuel producers, suppliers, distributors, wholesalers, exporters or importers must now secure compliance with a new tax, in addition to the current requirements. The new tax will be imposed on the wholesale price of gasoline and used for the State Highway Trust Fund. LB 853 – Viatical Settlement Providers. (signed by the Governor on 4-17-08; 7-17-08) The new law requires viatical settlement providers and brokers to provide evidence of financial responsibility, which may be in the form of a surety bond, in the amount of $250,000. This law is based on the NAIC model legislation. CONTRACT LB 1073 – Prompt Payment and Retainage. FAILED: Would have affected prompt payment and retainage for both private and public construction contracts. Owners would have had 30 days from the receipt of a contractor’s payment request to make payment, while contractors and subcontractors would have had 10 days from the receipt of each progress and final payment to make a payment. For retainage, owners would have been permitted to withhold a “reasonable” amount of retainage from the contractor, which could not have exceeded the percentage set forth in the contract. NEVADA - NV State Legislature The Nevada State Legislature will not be holding a regular legislative session in 2008. NEW HAMPSHIRE - NH General Court COMMERCIAL HB 1276 – Auctioneer Bond. This bill increases the auctioneer bond penalty from $10,000 to $25,000. (1-2-08: Introduced in House and referred to Executive Departments and Administration; public hearing scheduled for 1-24-08) SB 465 – Trust Company Bond. This bill provides that the amount of the securities or the surety bond shall be determined by the commissioner in an amount deemed appropriate to defray the costs of a liquidation of the trust company, but in no event shall exceed $250,000 for a family fiduciary services company (currently $1,000,000) or $500,000 for any other nondepository trust company. (1-8-08: Introduced in Senate and referred to Committee on Commerce, Labor and Consumer Protection) CONTRACT SB 481 – Threshold. This bill provides that officers, public boards, agents or other persons who contract in behalf of the state or any political subdivision thereof for the construction, repair or rebuilding of public buildings, public highways, bridges or other public works shall, if said contract involves an expenditure of $100,000 (currently $25,000), and may if it involves an expenditure of less amount, obtain as a condition precedent to the execution of the contract, sufficient security, by bond or otherwise, in an amount equal to at least 100 percent of the contract price, or of the estimated cost of the work if no aggregate price is agreed upon, conditioned upon the payment by the contractors and subcontractors for all labor performed or furnished, for all equipment hired, including trucks, for all material used and for fuels, lubricants, power, tools, hardware and supplies purchased by said principal and used in carrying out said contract, and for labor and parts furnished upon the order of said contractor for the repair of equipment used in carrying out said contract. (1 8-08: Introduced in Senate and referred to Committee on Commerce, Labor and Consumer Protection) NEW JERSEY - NJ State Legislature Please check back for 2008 legislative Information. NEW MEXICO - NM State Legislature COMMERCIAL HB 199 – Contractor’s License Bond. (signed by the Governor on 2-28-08; Eff. 7-1-09) The new law repeals the existing bond and replaces it with a $10,000 bond. Payments from the bond can be used only to cure code violations, and claims must be made within two years following the final inspection or within two years of issuance of a certificate of occupancy, whichever is earlier. SB 152 – Debt Management Services. FAILED: Would have enacted the Uniform Debt Management Services Act of NCCUSL, which included a $50,000 bond requirement for providers. SB 445 – Mortgage Originators. FAILED: Would have required mortgage loan originators operating from within the state to post a $20,000 surety bond; outside the state, $50,000. CONTRACT HB 173 – Subcontractor Bonds. FAILED: Would have repealed the bond requirements for subcontractors, who currently are required to furnish performance and payment bonds with contracts in excess of $125,000. NEW YORK - NY State Assembly Please check back for 2008 legislative Information. NORTH CAROLINA - NC General Assembly Please check back for 2008 legislative Information. NORTH DAKOTA - ND State Legislature The North Dakota State Legislature will not be holding a regular legislative session in 2008. OHIO - OH General Assembly Please check back for 2008 legislative Information. OKLAHOMA - OK State Legislature