Surety Bond News

The surety bond industry has been stubborn when it comes to any kind of change. For the most part, things have been done the same way for years while ignoring technological advances. As of recent, companies have begun to embrace the digital age and have been harnessing it to improve and evolve the industry.
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There is a new surety bond option for Arizona contractors. A new law titled SB 1284 offers the use of arbitration for construction contractors settling disputes when the amount of disputed repairs are less than $5,000. SB 1284 states that the contractor has the option of obtaining a surety bond equal to the claim. Should a contractor go with the bond, it will prevent the suspension of their license.

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.

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 in Oregon have made some changes to the existing surety bond requirement concerning landscape contractors. The new bill which applies the change is titled HB 2156 and affects landscape contractors with $15,000 bonds; the surety bond will now guarantee backflow assembly testing services provided by employees of the contractor; the contractor’s installation and upkeep of backflow assemblies for irrigation systems or ornamental water features; and the installation of irrigation control wiring and outdoor landscape lighting.