Surety Bond News

New surety bond legislation was recently enacted in Colorado State. The new law is named HB 1206 and requires surety companies to provide written notification to the Attorney General upon cancelation of the bond required of debt management service providers; the bond required is currently $50,000.

Anyone who wants to sell alcohol at special events no longer needs a surety bond in the state of Colorado. The new bill is named SB 66 and abolishes the bond requirement for special event permits to sell alcohol. The previous law allowed the state licensing authority to require the permit holder to obtain a bond to guarantee their compliance with the law. SB 66 became effective August 10, 2011.

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.

A new bill was presented in the State of Colorado concerning waste tire facility operators. The new bill, which is named HB 1018, requires waste tire facility operators to register and satisfy financial assurance necessities for the recovery of the site and guarantee of full payment of all closure and post closure expenses; this includes any expenses for corrective actions. Surety bonds along with alternative financial instruments would be authorized to fulfill this requirement. The Hazardous Waste Commission would establish the quantity of the surety bond being called for.

In Colorado, a new law was enacted relating to regional tourism authorities. The new law, labeled SB 173, authorizes local governments to produce regional tourism authorities and to deposit their funds in depositories or allows individuals to be custodians of the funds. The individuals spoken of must acquire a surety bond that meets the local tourism authority’s regulations.