Pennsylvania reviews coal mine reclamation surety bond requirements

by Danielle on January 20, 2012

 

 

 

Surety bond requirements intended to protect environments near Pennsylvania coal mines have been producing the very problems they attempt to prevent.

Because coal mine operators in Pennsylvania often have trouble funding the expensive surety bonds required for mine reclamation, they can’t get approved to work on reclaimed sites. As a result, more than 100 abandoned mine discharge sites can be found across the state.

Before surface mining can begin on an existing site, the mine operator must file a Pennsylvania surety bond with the Department of Environmental Protection. The department determines an individual bond amount based on the mine operator’s estimated cost of fulfilling the project. The bond amount must cover the full project amount in case it should be left unfinished, which means the surety bond costs owners pay can be substantial.

The bonds provide a financial guarantee that coal mining sites will be properly reclaimed when the project is finished. However, when mine site operators cannot get the bonds required for mine reclamations, the sites cannot be reclaimed, and taxpayers are left footing the bill on unclaimed mining sites.

To counter the problem, lawmakers in Pennsylvania are considering legislation that would make the required surety bonds more accessible to mine operators. According to the Republican Herald out of Pennsylvania, “Part of House Bill 1813 is also a permanent Pennsylvania Re-Mining Financial Guarantees program that provides affordable bonding coverage as an incentive to encourage operators to re-enter and re-mine abandoned mines sites around the state.”

Simply put, passage of Pennsylvania House Bill 1813 would make it easier for the state’s mine operators to get the surety bonds they need.

On January 11, the Pennsylvania House passed the bill by a vote of 193-1. It currently awaits consideration in the Senate.

 

 

 

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Alabama implements 150% notary bond amount increase

by Danielle on January 14, 2012

 

 

 

Before beginning their commissions, new and renewing notaries in Alabama must now file much larger surety bonds than previously required. The change went into effect January 1.

In 2011, Alabama increased the required notary bond amount from $10,000 to $25,000, which is currently the nation’s highest notary bond amount. The reasoning behind the significant increase is to cut down instances of notary misconduct as a part of America’s recent”robo-signing” crisis.

Notary bonds do not protect notaries; rather, they protect consumers from notaries who might commit fraud or other errors. If a notary should make a mistake that’s against the bond’s terms, a claim can be filed against the bond so that consumers have access to financial reparation.

Surety companies have traditionally issued notary bonds quickly and easily without credit checks. With the significant increase in the bond amount, some surety providers review notary bond applicants more closely.

 

 

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With surety bonds, three destination resort casinos could open in Florida

by Danielle on January 13, 2012

 

 

 

The Florida Legislature doesn’t want to take any risks when it comes to the possibility of licensing new destination resort casinos.

The Seminole Tribe of Florida currently maintains exclusive casino gaming rights in the state. However, passage of Senate Bill 710 would allow up to three unaffiliated operators to build destination resort casinos.

One part of Senate Bill 710 would require casino operators to file a surety bond with the state before being approved for a destination resort license.

The bond would provide a legal guarantee that operators

  • make all required payments to the Chief Financial Officer
  • keep the licensee’s books and records
  • make reports as provided
  • conduct limited gaming activities according to law

The bill would also dissolve the Division of Parimutuel Wagering and establish a new Department of Gaming Control in its place. This new department would set the bond’s penal sum based on a casino’s total annual license fees and estimated taxes.

In lieu of a bond, the operator may deposit another means of financial security, including

  • a savings certificate
  • a certificate of deposit
  • an investment certificate
  • a letter of credit from a bank, savings bank, credit union or savings and loan association.

The bill also contains a number of other stipulations that would further regulate new destination resort casinos. According to Florida Today,  “The gambling bill likely will be one of the most heavily lobbied issues of the 2012 session.”

On Monday, the Senate Regulated Industries Committee passed the bill, which was introduced to the Senate on Tuesday. The bill could be discussed in the House Business and Consumer Affairs Committee early next week.

 

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Ohio puppy mill legislation would require dog breeders to buy surety bonds

by Danielle on January 6, 2012

 

 

 

Puppy mill owners and other high volume dog breeders in Ohio have the state’s legislators barking at their heels.

In an effort to reduce puppy mill cruelty, Ohio Senate Bill 130 aims to establish higher standards for the state’s dog breeders.

According to The Humane Society, “Ohio is rapidly becoming one of the leading states for puppy mills, the cruel commercial dog breeding operations that mass-produce puppies for sale through pet stores, over the Internet and directly to the public.”

The bill would amend and add sections to licensing requirements and standards of care for dog breeders in Ohio. One of the proposed rules would require high volume breeders to provide evidence of insurance or a surety bond when applying for a license in the state.

Proposed surety bond amounts for high volume breeders included in SB 130 are as follows:

  • $5,000 for fewer than 25 adult dogs
  • $10,000 26 to 50 adult dogs
  • $50,000 for more than 50 adult dogs

If needed, the funds provided by an Ohio dog breeder surety bond would pay for the maintenance and care of dogs that are seized or otherwise impounded from the high volume breeder.

The bill was introduced on March 3, 2011. The bill was assigned to the Agriculture, Environment & Natural Resources Committee, which has yet to make a report. As such, the proposed legislation currently remains in limbo. However, it could resurface now that the 129th general assembly has reconvened.

 

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Oregon revises appraisal management company bond form

by Danielle on January 5, 2012

Appraisal management companies working in Oregon will now file their bonds with the state’s Appraiser Certification and Licensure Board.  The board was created in 1991, but AMCs had previously filed their bonds with the Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities.

The required appraisal management bond amount remains $25,000.

Under Chapter 447, Section 9 of 2011 Oregon Laws, appraisal management companies must file a $25,000 Oregon surety bond with the Department of Consumer and Business Services. The bonds are used to reimburse individuals who have been harmed by negligent or improper real estate appraisal activity, appraisal management services, breach of contract in performing real estate appraisals, or any other appraisal management activity not in compliance with the law.

Download the Oregon Appraisal Management Company Bond Form (Updated 1/12).

Oregon AMCs will mail the original copy of their legally executed bond to:

Appraiser Certification and Licensure Board
3000 Market St. NE, Ste. 541
Salem, OR 97301

The board can be reached by phone at (503) 485-2555, by fax at (503) 485-2559 or at www.oregonaclb.org.

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Discovery Channel’s moonshiners discuss need for surety bonds

by Danielle on January 4, 2012

 

 

 

Trouble, like moonshine, could be brewing for some Virginian men looking to get a distillery bond.

On a recent episode of “Moonshiners,” one of the stars expressed difficulty in getting a $200,000 surety bond. The Discovery Channel airs the show, which “tells the story of those who brew their shine — often in the woods near their homes using camouflaged equipment — and the local authorities who try to keep them honest.”

Brewing moonshine without proper distillery registration is an act that’s illegal at the federal level. Tim, one of the show’s main characters, has begun the process of legitimizing his practice by registering it with the proper authorities. He runs into trouble, though, when he’s told he needs a $200,000 bond.

When filing an application to register a distillery plant, applicants must provide a surety bond that will cover distilled spirit operations at the site. The bond provides a financial guarantee that the distiller will

  • comply with all provisions of certain laws and regulations relating to distillery activities
  • pay all taxes imposed by 26 U.S.C. Chapter 51
  • pay all penalties incurred or fines imposed for violation of any such provisions

Although their intended purpose is to ensure distillers comply with regulations and practices safe techniques, the bonds also keep some individuals from registering a distillery, whether for personal or professional production.

According to the federal Alcohol and Tobacco Tax and Trade Bureau, “There are numerous requirements that must be met that make it impractical to produce spirits for personal or beverage use.” The need to provide a surety bond is one such requirement listed.

The difficulty involved in getting a distillery bond depends on the bond amount needed, which will vary depending on who exactly is requiring the bond.

For example, Tim, who’s looking to register a legitimate moonshine business, says he needs a $200,000 surety bond to register a distillery in his area. Such a high bonding threshold means most moonshine producers won’t qualify for and/or be able to afford the needed bond, which frequently keeps smaller producers out of the market. As a result, the inability to be bonded can keep smaller distillery owners, such as those featured on “Moonshiners,” from being able to legally register a distillery.

 

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