California Wholesaler or Nonresident Wholesaler Surety Bond

A wholesaler license is compulsory for any company or business that brokers, distributes or transacts the retailing or return of dangerous drugs or dangerous devices into or inside California to other wholesalers, pharmacies or practitioners.

A licensed manufacturer that only dispenses drugs of their own manufacture, all of which have an accepted new drug manufacturing application on file with the FDA (Food and Drug Administration) are free from having to acquire this surety bond obligation. If you need to document this exemption all you need to do is provide the California State Board of Pharmacy a list of manufactured drugs which would include the respective NDC Number (National Drug Code, which is a universal product identifier for human drugs) along with a statement certifying that the business only distributes its own products.

Any contender for initial licensure or license renewal as a wholesaler or nonresident wholesaler (previously known as an out-of-state distributor or dispenser) must present a surety bond of $100,000 made payable to the Pharmacy Board Contingency Fund. All new businesses and/or companies must do one of the following three (3 )options in order to get their license: 1) Obtain the required $100,000 surety bond, 2) obtain an ILOC (Irrevocable Standby Letter of Credit) or 3) provide a Cash Deposit in Lieu of Bond. The ILOC is a document issued by your bank that essentially acts as an irrevocable guarantee of payment to an obligee. This means that if you do not perform your obligations, your bank pays. ILOC’s cannot be cancelled or amended without all the parties in agreement. A Cash Deposit In Lieu of Bond is essentially the principle (or Assignor as they are know in this instance) providing the required cash dollar amount to the California State Board of Pharmacy that is equivalent to that of the surety bond requirement. It is understood that the Board is not authorized to give back the cash deposit until sixty days beyond the date upon which an owner no longer licensed by the Board, or ceases to do business as a wholesaler.

If your company and/or business own several subsidiary companies that are reflected as the owners of wholesalers, then you are only required to have one bond. Simply provide the California State Board of Pharmacy a copy of the organization chart documenting the ultimate owner of the subsidiary companies verifying the familiar ownership.

In the future should the company or business be able to demonstrate their annual gross receipts of $10,000,000 or less, a new and lesser bond amount of $25,000 may be secured in lieu of the initial $100,000 bond amount.

New York Health Club Bonds

There are numerous types of Commercial Bonds such as License & Permit, Health Club, Insurance Broker, Title Agency and Sales Tax, just to name a few. For example, Health Club Bond requirements according to the law for the state of New York requires that most health clubs post a bond to protect their members against breaches of contract. Expressly, the law dictates bonds for the following tiers: $50,000 for health clubs that provide contracts for a period of no more than 12 months; $75,000 for health clubs that provide contracts of 12 – 24 months; and $150,000 for health clubs that provide contracts of 24 – 36 months.

Health clubs with more than one location are required to post supplementary amounts up to $200,000. There are several examples of when Health clubs are exempt from this requirement such as not advertising memberships valued at more than $150, Health clubs that require longer term contracts or if the monthly dues do not surpass $150. In addition to those, if the fully paid contracts are not discounted by more than ten percent, memberships no longer than a 12 month term, and if the contract does not include an automatic renewal clause.

New York State Health Club Services Law covers contracts for educating or teaching in bodybuilding, exercising, weight decline and body development or other types of physical preparation and contracts for sports & health spas, tennis and/or racquetball clubs. In particular, this law offers the following protections: Limiting health club contracts to $3,600 per year (not including tennis and racquet ball amenities) and to terms no longer than 36 months; providing patrons with the three-day right to terminate the contract after signing; the Law also offers patrons the right to cancel a contract at any time for any of the following reasons:

  • The health club stops offering any services acknowledged in the contract
  • The patron moves 25 miles from any health club operated by the seller
  • Upon a physician’s order

The patron cannot use the services as stated in the contract because of considerable physical disability for a period in excess of six months; Requires health clubs to provide refunds within 15 days of cancellation; and Provides wronged patrons the right to bring a claim in small claims court and receive a sum of not more than three times the tangible damages plus reasonable legal fees.

Before joining a Health Club you may want to verify the club’s compliance with your state’s requirements.

Nationwide Mortgage Licensing System (NMLS)

The Nationwide Mortgage Licensing System provides new Mortgage Brokers a system that simplifies and combines the application process for applying for a Mortgage Broker License within multiple states.

Since its inception in 2003, the Nationwide Mortgage Licensing System (NMLS) has obtained commitments of more than 40 states, which will utilize the system by 2010. The NMLS has created a uniform licensing system for applicants interested in the residential mortgage business. By providing this system, improvements exist for the supervision of the industry, modernization of the licensing procedure for both mortgage companies and professionals alike, and augmentation of buyer protection. The goal to have all US States participate in the system provides protection to the licensees, as well as the consumers.

The Nationwide Mortgage Licensing System (NMLS) is a secure “web based� system, which allows for quick and accurate applications, updates, or renewals of licensee requirements. It utilizes standard forms for all functions, which maintains uniformity among the states using the system. The main benefits for the State to utilize the NMLS process for mortgage broker licensing not only provides uniform license applications, but allows for electronic work cues, online communications, system notifications, and amendments. It will allow the applicants to view, update, and make any changes to their license at almost any time. It will allow the applicant to check the status of their application and license, make online payments for renewal or amendments, provide real-time online support, run reports, and view an applicant’s historical data.

The NMLS system allows for real time access through a secure web site 7 days a week and 362 days a year. The system went live on January 2, 2008 with seven (7) states participating initially including: Idaho, Iowa, Kentucky, Massachusetts, Nebraska, New York, and Rhode Island. In July of 2008, seven (7) additional states joined the NMLS system including: Connecticut, Louisiana, Mississippi, North Carolina, New Hampshire, Vermont, and Washington.

In addition to state license and investigation fees, the Nationwide Mortgage Licensing System (NMLS) consists of three types of system charges. The first charge is the “Initial Set Up Fee” that ranges between $20.00 to $100.00, based on the application types, as follows:

Company Initial Fee (MU1) – $100.00
Branch Office Initial Fee (MU3) – $20.00
Loan Officer Initial Fee (MU4) – $30.00

The second charge is the “Annual Processing Fee” which will be charged upon license renewal of renewal of the license, as follows:

Company Annual Fee (MU1) – $100.00
Branch Office Annual Fee (MU3) – $20.00
Loan Officer Annual Fee (MU4) – $30.00

The third charge is the Loan Officer Sponsorship Transfer Fee, which only applies to the Loan Officer. This charge is $30.00 for each Loan Officer request. This fee is charged upon NMLS establishing an association with a Loan Officer and sponsorship requests for the prospective licenses.

The long term goal of the Nationwide Mortgage Licensing System (NMLS) will be to establish all US States within the system and require the adoption by Mortgage Industry applicants to further streamline usage of the national system.

New Jersey Driving School Bond

One of the requirements for obtaining a Driving School License from The New Jersey MVC (Motor Vehicle Commission) is to obtain a $10,000 Surety Bond. The Motor Vehicle Commission handles the issuance of licenses that allow driving schools and their instructors to function within the state of New Jersey. This also allows those specific private driving school owners and particular instructors or agents to procure student learners permits, examination permits, schedule road tests, etc.

As in most cases there are certain requirements for obtaining a license and some of those necessary for the New Jersey Driving School License are: The business is required to have a separate agency location or a home office separated from the living accommodations with a private entrance. The business cannot be located near or outwardly show that is it officially connected with Motor Vehicle Commission. The driving school cannot be operated from a liquor store, bar, grocery store, restaurant, temporary address, etc. The school must have a trained supervising teacher who’s licensed for at least two years and has completed at least 500 hours of behind the wheel training along with a three-credit college course from a state-accredited university or college.

The school requires zoning consent from the town where the business is located, ensuring that the building will meet each of the state and local zoning ordinances which consist of building, fire and health codes and any other applicable ordinances and codes.

All driving schools must make available an explanation of services to be rendered, the fees for the school and description of information on the service agreement.
The driving school must also adhere to all conditions set forth in the sample service agreement. The service agreements must give all information contained in the state-provided sample service agreement.

The driving school students have requirements as well. Each student must meet the following requirements prior to the driving school instructors being able to proceed with the lessons: Each student must be at least 16 years of age; they must pass the vision test providing certification from the school nurse, Motor Vehicle Commission representative, owner of the driving school or eligible supervising instructor.

There are four items that must be present at the location of the business for the scheduled site investigation from the MVC. The state requires a landline telephone, an answering machine for the phone, file cabinet(s) and a safe that have the ability to be locked when unattended and dual controlled vehicle(s) that are owned or leased and registered in the name of the driving school or lessor.

For further or more detailed information please visit New Jersey’s Motor Vehicle Commission website.