There is a new requirement for Professional Employer Organizations in the state of Utah referred to as HB 159. The new law requires the Professional Employer Organizations (PEOs) to sustain a minimum working capital of $100,000 or post a bond in an amount no less than $100,000. The surety bond would guarantee the payment of any wage, tax, benefit, or other entitlement due to a covered employee not receiving payment from the PEO when it was due. HB 159 states that a “covered employee is not, only as the result of being a covered employee of a professional employer organization, an employee of the professional employer organization for purposes of general liability insurance, fidelity bond, surety bond, employer’s liability not covered by workers’ compensation, or liquor liability insurance carried by the professional employer organization unless the covered employee is included by specific reference in the professional employer agreement and applicable prearranged employment contract, insurance contract, or bond.” The new requirements have already been introduced and enacted in other states with the new provisions based on model legislation.
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Utah Professional Employer Organization (PEO) Bond
September 3, 2009 by Eric WeisbrotCategory: Commercial Bonds, Surety News, Wage & Welfare BondsTags: bond requirements, legislation, peo bond, professional employer organization bond, surety bond, ut, utah | Comments (0)
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Virginia Cigarette Manufacturer Bond
September 2, 2009 by Eric Weisbrot
On 03/27/2008, the state of Virginia passed SB 545. The new law requires “newly qualified nonparticipating tobacco manufacturers” to post a bond to be listed on the Virginia Tobacco Directory. The “newly qualified nonparticipating manufacturers” are defined as those who have not been previously listed in the Virginia Tobacco Directory. The manufacturers that fall under the above mentioned category may be required to post a bond in accordance with the new law for the first five years of their listing, or longer if they have a higher risk for noncompliance. The manufacturers that are not partaking in the Master Settlement Agreement as provided under existing law have chosen to escrow funds according to the schedule provided in the law; these manufacturers are referred to as “nonparticipatingâ€?. The bond can also be required under the new law’s requirements if the Attorney General finds that nonparticipating manufacturers are a higher risk for not fulfilling financial responsibilities. When it comes to foreign nonparticipating manufacturers, the U.S. importer of the product has to post a bond; they must post a bond in the amount of $50,000. If the amount of escrow the manufacturer must deposit as a result of its prior calendar year’s sales in the state is larger than the $50,000 requirement, that amount must be posted. If the bond is required from the manufacturer, it must be payable to the Commonwealth and is conditioned on the dependable performance of the escrow requirements.Category: Commercial Bonds, Surety NewsTags: bond requirements, cigarette manufacturer, legislation, surety bond, va, virginia | Comments (0)
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Arizona Flood Protection Facility Performance Bond
September 1, 2009 by Tracy Konopka
SB1289, enacted on April 28, 2008 and made effective October 10, 2008, created flood protection districts and a Board of Directors for each district to construct flood protection facilities. The new law states that performance and payment bonds are required for any construction, and clarifies the process for claims against the performance and payment bonds. The surety has 60 days to act upon a contractor found to be in default by the board or the board may re-let the contract. If the costs to complete the project surpass the finances available for payment, the defaulting contractor’s surety has 20 days after mailing of the notice to satisfy the board’s demand for payment of the difference. This demand cannot be more then the penal sum of the bond, and monies must be used to pay for the costs of completing the work. Delivery of writ may be served on the Surety’s principal office or it’s Attorney-In-Fact. If there is no office or Attorney-In-Fact, it may be service on the insurance commissioner.Category: Contract Bonds, Performance Bonds, Surety NewsTags: arizona, az, bond requirements, flood protection, legislation, performance bond, surety bond | Comments (0)
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Virginia Publisher’s School Textbook Bond Requirement Abolished
August 31, 2009 by Eric WeisbrotOn 03/07/2008, the state of Virginia enacted HB 137/HB 354/SB 356. The new laws eliminated the mandatory surety bond that the Board of Education required regarding contracts with publishers of school textbooks. The bond could not be less than $1,000 and not above $20,000. The required bond was conditioned upon the publisher’s compliance of the terms & conditions of the contract and payment of any liquidated damages that are shown to be a direct result of contract violation. Category: Commercial Bonds, Surety NewsTags: bond requirements, legislation, publisher bond, school textbook bond, surety bond, va, virginia | Comments (0)
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West Virginia Discount Medical Provider Bond
August 30, 2009 by Eric Weisbrot
West Virginia has a new enactment for medical discount providers referred to as HB 4404. The law requires a surety bond equal to or more than $35,000 to be posted by discount medical establishments. The bond attained by the discount medical organizations must be in favor of the Insurance Commissioner for the advantage of individuals that may be damaged by the organization’s breach of the new law; it is mandatory that the insurance company who wrote the bond is licensed in the state.Category: Commercial Bonds, Surety NewsTags: discount medical provider, medical, medical provider, medical provider bond, west virginia, wv | Comments (0)
