A new Nebraska state law was enacted that expands the coverage of contractors within the state. The new law, LB 1001, modifies the current tax bond requirement for contractors to inflate its coverage. Currently, the surety bond is required before the start of any work on a contract and is conditioned to guarantee the payment of all taxes when due, as well as contributions due under the Employment Security Law that accumulate in connection with the contract. LB 1001 broadens this guarantee to protect any withholding required under the Nebraska Revenue Act of 1967. Existing law demands that the required surety bond be no less than $5,000. The new law also states that failure to reach the conditions of the existing law or releasing withholdings to a subcontractor without authorization from the Department of Revenue makes the contractor legally responsible for the full amount of the required bond that the subcontractor acquired. The contractor may decrease their liability to the point that they can prove that the subcontractor has paid the mandatory taxes and contributions to the state and its political subdivisions.

Enacted on 02/28/2008, a new law referred to as HB 199 was put in place in the state of New Mexico. HB 199 cancels the existing contractors’ license bond requirement under which the bond amounts are minor and based on the size of projects completed; the law also substitutes it with a $10,000 bond from a state licensed surety. Payments from the surety bond can solely be used to cure code breaches of a licensee. Any claims made opposing the bond must be within two years after the final inspection or within two years of issue of a certificate of occupancy, whichever is sooner. The entire aggregate liability of the surety can not surpass the face amount of the surety bond; there is also a 30 day cancellation condition. The final language of the new law is considerably enhanced from the original bill draft. Multiple groups worked on the new bill including SFAA, AIA and CNA Surety.

The SB 1432, which became effective on January 1, 2009, amended California’s law for claims toward home improvement contractors. The new law states that a homeowner may make a claim against the contractor’s bond only if the damages happened when the homeowner did not intend on selling the home. The law also makes a change to the time limit of making the claim, based on the contractor’s licensing period.