Occasionally, legislators repeal surety bond regulations that have not been effective or are no longer necessary. During the current legislative session, several states have repealed surety bonds in different industries. Many of the surety bonds repealed were for professionals working in government positions. Read on to find out if your bond is on the list.
Arkansas
Arkansas SB 341, passed on March 21, 2017, eliminates the state’s Board of Health Education. The Board certified and regulated health education professionals in the state and created a code of ethics for industry professionals. The Secretary of the Board was required to post a $10,000 surety bond to ensure he or she performed their duties according to law. SB 341 repeals that bond requirement.
Arizona
Arizona HB 2358, also passed on March 21, repeals laws related to dog racing following Gov. Ducey’s 2016 ban on the practice. Before being issued a racing permit, the permit applicant was required to post a bond of no more than $100,000, which ensured payment of taxes to the state, of salaries and wages to employees, and of necessary payments to breeders and owners. HB 2358 formally repeals the now-obsolete laws, and with them, the surety bond mandate.
Colorado
HB 1030 removes a bond requirement for the members of irrigation district boards of directors in Colorado. Irrigation districts are formed by landowners in an area as a way to fund large irrigation projects. Landowners gather and vote on whether or not to create an irrigation district, with the number of votes each person commands corresponding to the number of acres of land they own in the proposed district. The district’s three board members are chosen by similar vote. Upon their election, they were required to post a $3,000 surety bond. HB 1030 repeals this surety bond requirement.
SB 26 repeals the surety bond required of the state and deputy engineers as well as any of the state engineer’s appointees. The state engineer is the head of Colorado’s Division of Water Resources within the Department of Natural Resources. Under previous law, the state engineer was required to furnish a $10,000 upon appointment. Any of the state engineer’s appointees needed a bond between $1,000 and $5,000, and the deputy state engineer needed a $10,000 bond. SB 26 eliminates those bond requirements.
Kentucky
Kentucky HB 183 removes a provision of the Kentucky Revised Statutes that requires a county alcoholic beverage control (ABC) administrator to post a surety bond. County ABC administrators enforce Kentucky’s alcohol laws in unincorporated areas of their designated counties, as well as within the corporate limits of any city in the county that does not have its own administrator. County ABC administrators previously needed a $1,000 surety bond, but HB 183 repeals the requirement.
Virginia
Private security businesses and private security training schools in Virginia no longer have the option of posting a surety bond to guarantee their compliance with the law. HB 1628 repeals the surety bond requirement, meaning private security training schools and businesses will be required to purchase a liability insurance policy. The amount of the policy is determined by the Virginia Department of Criminal Justice Services.
Surety bonds repealed this legislative session reflect only a small portion of surety-related legislation passed, so subscribe to the Insider to stay up-to-date on these changes.
