Legislation is being enacted in sessions around the country, with states passing bills affecting industries from vehicle dealing to hemp farming and more.
Alabama: Registration of Motor Vehicles
Alabama House Bill 221, effective October 1, 2021, includes transporters of all manner of vehicles in laws regarding the issuance of temporary license plates and registration. The bill provides a definition of a “transporter” as a person engaged regularly in the business of facilitating the delivery of motor vehicles, mobile homes, trailer coaches, travel trailers, house trailers, semitrailers or trailers including utility trailers, or boats between manufacturers, distributors, dealers, or persons or facilitating the delivery of special mobile equipment from the manufacturer of the equipment to a dealer.
AL H 221 provides that a transporter may apply for temporary license plates and temporary registration certificates. If approved, the transporter will be required to obtain a surety bond made payable to the State of Alabama. The bill does not specify the amount of the bond.
Alabama: State Board of Auctioneering Licensing Requirements
Alabama Senate Bill 27, effective August 1, 2021, makes changes relating to the State Board of Auctioneers and the auctioneer licensing process. As well as increasing application fees, providing further information on the qualifications for licensure, and removing residency requirements, the bill authorizes the issuance of a single-use auction license once per calendar year to any nonresident individual who is licensed and in good standing in another state.
An individual wishing to apply for a single auction license should, among other things, satisfy the age and reputation requirements, pay a fee established by the board, and provide proof of financial responsibility via a $10,000 surety bond, cash bond, or irrevocable letter of credit. The surety bond should be made payable to and in a form approved by the board.
Georgia: Hemp Farming Compliance
Georgia House Bill 336, which went into effect May 7, 2021, provides for compliance of federal hemp laws and regulations, history reports, disposal of lots of hemp, and sampling and random testing of hemp. The bill additionally prohibits the cultivation of hemp in residential structures and increases the surety bond requirements for hemp processing permittees.
Previously, applicants for hemp processing permits were required to post surety bonds in the amount of $100,000. Under GA HB 336, the bond amount will be determined by the Commissioner of Insurance and will not exceed an amount equal to 2% of the amount of hemp purchased from licensees by the permittee in the most recent year, provided that the minimum amount of the bond is $300,000 and the maximum amount is $1,000,000. The Commissioner may require an additional bond or bonds to be posted if it is determined that a previously approved bond has become insufficient.
Kansas: Vehicle Dealer License Bond Amount Increase
Kansas Senate Bill 99, effective January 1, 2022, will provide for display show licenses, allow for new vehicle dealers and manufacturers to participate in display shows, and raise the bond amount required of motor vehicle dealers from $30,000 to $50,000.
New Mexico: Driver Education School Surety Bonds
New Mexico Senate Bill 106, which went into effect June 18, 2021, allows the Traffic Safety Bureau of the Department of Transportation to require each licensed driver education school to post a $15,000 (previously $5,000) surety bond to the Traffic Safety Bureau of the Department of Transportation.
Nevada: Issuance of Salvage Title
Nevada Senate Bill 29, effective October 1, 2021, authorizes the Nevada Department of Motor Vehicles to appoint by contract an individual to issue salvage titles on the Department’s behalf. The Department will require each person who wishes to become authorized to issue a salvage title to pass a criminal background check and post a bond in the amount of $50,000, or a cash deposit in the same amount, with the state treasurer.
Oregon: Service Student Loans
Oregon Senate Bill 485, effective July 1, 2022, will require individuals who service student loans directly or indirectly to be licensed through the Oregon Department of Consumer and Business Services.
Along with other materials required for licensure, applicants will submit to the Director of the Department of Consumer and Business Services a corporate surety bond or irrevocable letter of credit issued by an insured institution in an amount specified by the director. If the applicant wishes to renew a license and has previously submitted a corporate surety bond, they shall show that the bond remains effective in the amount specified by the director.
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