Vermont Senator Richard Mazza has proposed SB 314, which would increase the maximum surety bond requirement for motor fuel distributors from $400,000 to $1 million. This increase might cause a change in the cost of motor fuel, so the passing of this bill could impact more than just motor fuel distributors and surety industry professionals.

SB 314 was read and referred to the Committee on Transportation on January 7, 2014. If the 250% surety increase — outlined with detail in the full introductory text of the bill — is passed, motor fuel distributors would have to acquire new bonds upon renewal. According to the bill, “the amount of the surety bonds required shall be reviewed annually in September.”

The passing of this bill would only raise the bond ceiling for motor fuel distributor surety bonds in Vermont. According to current legislation, “the minimum amount required shall be the sum of the highest two months’ payment during the preceding year or $1,000.00, whichever is greater.”

Check back with the Surety Bond Insider for more information on the progress of SB 314.

If you need a surety bond in Vermont or any other state, contact SuretyBonds.com online 24/7 or by phone at 1 (800) 308-4358 Monday through Friday between 8 a.m. and 7 pm. CST. Our surety experts are on hand, ready to assist you with all of your bonding needs.