Surety Bond News

In Arkansas, the Director of Production and Conservation of the Oil and Gas Commission has been affected by a new law concerning bond requirements. The new law which is named HB 1580 abolished the surety bond requirement for the Director of Production and Conservation of the Oil and Gas Commission. The prior law stated that the director has to acquire a surety bond to secure the all funds that he or she managed. HB1580 was enacted on April 7th, 2009.

In the state of Arkansas, a new law was enacted relating to financial assurance. The new law, which is titled HB 1424, demands financial assurance for the shutting down and restoration of sites in the state where fluids produced or used throughout examination or production phases of oil or gas processes are stocked or disposed of using land application. Various financial instruments other than surety bonds will also be permitted for such intentions. HB 1424 became active upon enactment.

On 01/30/2009, debt adjusters were impacted by a new bill in Connecticut. Labeled HB 6327, the new law modified the bonding requirements for licensed debt adjusters. With the previous law, the surety bond quantity required was the greater of $40,000 or double the amount of the highest total payments from Connecticut debtors in a single month. HB 6327 requires the surety bond amount to be the greater of $40,000 or double the quantity of the average daily balance in the previous twelve months. If the debt adjuster obtained the business of another debt adjuster, HB 6327 states that the surety bond amount is based on the prior adjuster’s activity in the last year or $1 million; whichever is less. Should a principal not be able to attain a bond in the amount called for, the debt adjuster must post the maximum surety bond amount possible (minimum of $40,000) and post the remainder in cash or cash equivalents. Under present law, if the debt adjuster cannot obtain the required surety bond, the adjuster can choose an alternative, and if allowed, the adjuster can complement the surety bond with other bonds or insurance.

On 01/07/2009 the state of Colorado introduced a new bill pertaining to power sports wholesalers. Named HB 1026, the new bill requires power sports vehicle wholesalers to abide by the existing law for power sports vehicle dealers. HB 1026 requires a license surety bond, a savings account, deposit or a certificate of deposit in the quantity of $50,000. The new bill was enacted on May 20th, 2009.

Arkansas pest exterminators must follow a new bond requirement as of July 1st, 2009. The new law, which is labeled HB 1359, amplifies the license bond amount for exterminators of termites and structural pests from $50,000 to $100,000. HB 1359 did not affect the quantity of the surety bond for exterminators of residence pests and rodents which left it at $50,000.