As the new year approaches, so do a number of newly adopted and amended surety regulations. Several surety bonds will be required, effective January 1, 2018. Read on to ensure that if your industry is affected, you are taking the appropriate steps to fulfill licensing and bonding requirements your business must take.
- Personal Lines Broker-Agents: The passage of California AB 1696 means that personal lines broker-agents will be subject to the existing bond requirements for property and casualty broker-agents. The law requires a $10,000 surety bond to act as a broker-agent.
- Oil and Gas Well Operator Bond: Oil and gas well operators in California have the option of posting individual bonds for each of their wells, or they can post a blanket surety bond if they operate more than 20 wells at a time. AB 2729 changes bond amounts for blanket bonds, and the amount of coverage an operator needs ranges from $200,000-$3,000,000 depending on how many wells they operate.
- Vehicle Code – Autonomous Vehicles: AB 1444 authorizes the Livermore Amador Valley Transit Authority to conduct a pilot program to test autonomous vehicles. For tests occurring on public roads, the Authority, a private entity, or a combination of the two must provide some form of insurance which can either be a surety bond or proof of self-insurance equal to $5 million.
- Court Bond: California SB 306 requires a person seeking review of a citation from the Labor Commissioner to post a surety bond. This includes a review of discrimination, retaliation or other adverse actions taken against an employee. The bond must equal to the total amount of any minimum wages, liquidated damages, and overtime compensation that are due to an employee.
- Real Estate Appraisal Management Company Bond: With the passage of HB 50, Hawaii real estate appraisal management companies are now required to obtain a $25,000 surety bond to become registered or maintain their registration with the Department of Commerce and Consumer Affairs – Professional & Vocational Licensing.
- Motor Vehicle Dealer Bond: Illinois motor vehicle dealers and remittance agents will be subject to a substantial increase to their required surety bond amounts. Senate Bill 1556 increases the amount of the surety bond for auto dealers from $20,000 to $50,000 per location. The new law also specifies that remittance agents must submit a bond in the minimum amount of $20,000. Additionally, the new law extends this requirement so that compliance is required for 60 months instead 36 months.
- Mortgage Servicer License: The passage of Senate Bill 98 in August 2017 established a new license and regulations for Oregon mortgage service professionals. Applicants have been able to apply for their license with the Oregon Division of Financial Regulation since November 1. As of January 1, no mortgage servicers may operate in the state without first receiving a license.
- Water Well Construction Bond: The Oregon Water Resources Department (OWRD) sets and regulates water well construction standards, including the requirement for operators to submit a water well construction surety bond. Oregon House Bill 2296 increases the amount of the license bond for water well contractors from $10,000 to $20,000.
- Motor Vehicle Dealer Certification: In accordance with Oregon Senate Bill 974, the state of Oregon is amending requirements and bond amounts for those applying as Oregon motor vehicle dealers. Applicants seeking an Oregon motor vehicle dealer certificate will now have to post a $50,000 surety bond. This is an increase from the previous $40,000 surety bond requirement. The legislation also increases the bond amount required for dealers who only sell motorcycles, mopeds, Class I all-terrain vehicles, snowmobiles, or any combination of these vehicles from $2,000 to $10,000, and reduces the maximum amount available for a claim for non-retail customers from $20,000 to $10,000.
- Residential Service Companies: House Bill 2279 will excuse a residential service company from the existing law’s security requirements if it uses a surety bond to meet the security requirements for these contracts.
- Home Service Contract Provider Bond: HB 1542 requires home service contract providers to register and post a surety bond. The bond amount ranges from $10,000 to $90,000 and is based on the total dollar amount of unexpired home service contracts that the provider has in effect. This bill also moves oversight of home service contract providers from the Bureau of Insurance to the Virginia Department of Agriculture and Consumer Services (VDACS).
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If you are conducting business in any of the above industries, make sure you adhere to newly introduced or amended bonding requirements. Get a free, no obligation quote on your surety bond by calling 1 (800) 308-4358 or submit an application by clicking the button below.Get a Free Quote