On 05/26/2008, a new law was introduced referred to as HB 2436. The new North Carolina law permits the North Carolina Department of Health and Human Services to have discretion when requiring Medicaid-enrolled suppliers to provide a performance bond, letter of credit, or an alternative financial instrument in an amount no more than $100,000. Previous law required the bond as a stipulation of receiving Medicaid payments. HB 2436 states that the health department may require a surety bond when the provider has failed to display financial viability, if it is concluded that “significant potential” for deception and fraud existed, or if the department determines that it is best for the Medicaid program.
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North Carolina Medicaid Supplier Performance Bond
October 31, 2009 by Eric WeisbrotCategory: Commercial Bonds, Performance Bonds, Surety NewsTags: Medicaid Supplier Bond, NC, North Carolina, performance bond | Comments (0)
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Oklahoma Carbon Dioxide Storage Bond
October 16, 2009 by Eric Weisbrot
The state of Oklahoma set forth a new law referred to as SB 1765. The new law was enacted regarding the geologic storage of carbon dioxide. The carbon dioxide law states that the State Regulatory Agency must promulgate regulations that would institute requirements for “appropriate and sufficient financial sureties as may be necessary.” The rules set forth are for the function of regulating the operation, drilling, well plugging, desertion and confiscation of surface buildings and gear of the storage facility; this is done to keep the facility safe from pollution, infiltration, and the escape/migration of carbon dioxide. SB 1765 also states that upon the issuance of the Certificate of Completion of Injection Operations, any performance bonds that the operator had in place shall be cancelled. Category: Commercial Bonds, Performance Bonds, Surety NewsTags: Carbon Dioxide Bond, OK, oklahoma | 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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California Telecommunications Public Utility Bond
August 12, 2009 by Lisa Grimsley
As of January 1, 2009, the Public Utilities Commission of California may require a performance bond as a precondition of getting certain certificates and permits for telecommunications companies. AB 2578 allows this, also stating that the bond has to be sufficient to allow the collection of restitution, penalties, and fines for enforcement actions taken against the company. Category: Performance Bonds, Surety NewsTags: bond requirements, legislation, performance bond, Performance Bonds, surety bond | Comments (0)
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Texas Well Plugging Performance Bond
August 11, 2009 by Tracy Konopka
SB 1387 is a new law enacted in Texas for the management of carbon dioxide. The law was put in place for the storage of anthropogenic carbon dioxide. This carbon dioxide that is being stored has been segregated, stripped, or divided from any other fluid; along with any that was collected from a source such as clean energy programs or industrial industries. A permit is required to inject the carbon dioxide into injection wells, along with proof of financial responsibility with a performance bond or other financial securities. The proper plugging of an unused well, the availability of funds for plugging, post-injection site maintenance, and closure of the site will be taken care of by the performance bond. Category: Contract Bonds, Performance Bonds, Surety NewsTags: bond requirements, legislation, texas, tx, well plugging bond | Comments (1)
