The state of Florida has proposed a new rule for electrical contractors. The Florida Department of Business and Professional Regulation suggested removing the alternative of a letter of credit as opposed to a surety bond which current law allows. The present law requires contractors to acquire a performance or payment bond of at least $10,000 for specialty certifications and at least $25,000 for an unlimited electrical or alarm certification. The suggested rule would also terminate the need for a surety company to supply a letter declaring that it would write the required surety bond for the contractor.
Retail Gaming licensees are affected by new regulations that were recently put in to place; more specifically The Colorado Department of Revenue has implemented new rules regarding gaming taxes. The new policies require retail gaming licensees to acquire a surety bond in a quantity that the Gaming Commission is yet to establish. The surety bond guarantees that the gaming taxes will be paid. The bond must be from a state licensed surety company and it must have a paid-in capitalization of at least $500,000. As an alternative to the surety bond, cash deposits in the form of an assigned savings account or deposits in a state or national bank will be accepted in place of the bond.
California mortgage loan servicers have to abide by a new law that was recently passed. The California Department of Corporations implemented a new law enacted under SB 36 and it requires mortgage loan services to obtain a bond that’s equivalent to the bond required of mortgage lenders, which is $50,000. The new law also requires finance lenders and brokers to acquire a minimum $25,000 bond.
The law also allows the Commissioner of Corporations to establish the required bond amount using regulations for residential mortgage lenders, mortgage servicers, finance lenders and finance brokers if the licensee hires one or more mortgage loan originators. The surety bond will be in a quantity calculated by the dollar amount of residential mortgage loans that the licensee and their loan originators accumulate.
Anyone working with injection wells in the state of Alabama may have to meet a new requirement in the near future. The Alabama Department of Environmental Management has suggested new requirements concerning Class VI injection wells for the geologic sequestration of carbon dioxide. The new proposed requirement asks the owner or operator of the well to obtain a surety bond in order to operate legally. The proposed bond guarantees that the wells would be properly maintained or removed once they’re no longer being used.
Legislators have been striving to make improvements to the government run U.S. Small Business Administration (SBA) Bond Guarantee Program for the last couple of years now. Though the changes proposed by various state Representatives have been meant to benefit small contractors; they seem to be pinpointing the wrong target and end up missing the bigger picture.