Surety Bond News

Police officers within the state of Kentucky must abide by a new bill that was presented on February 11th, 2009. The new bill is named HB 411 and requires police officers to acquire a surety bond to secure the expenses of a court appeal from a conviction in the Kentucky State Police Department’s trial board for a breach of the law with reference to police officer conduct. HB 411 was enacted on March 24th, 2009.

A new bill was introduced relating to wholesale drug distributors within the state of Maryland. The new bill was named HB 1195 and modifies the surety bond requirement for wholesale drug distributors, which under present law must acquire a surety bond or alternative equal security. The previous law required a surety bond in the quantity of at least $100,000 in association with attaining a permit. HB 1195 calculates the amount required by the distributor’s yearly gross receipts instead, so that if such receipts in the prior tax year were $10 million or greater, a $100,000 surety bond is required. A $50,000 surety bond is demanded if receipts are no more than $10 million.

The SFAA cooperated on this bill with the AIA to resist the Maryland Insurance Administration’s preliminary suggestion, which would have revoked the surety bond requirement. The compromise was reached, which will boost the availability of the surety bond for smaller distributors and any distributors subject to bonding requirements in numerous states that is reaching their bonding capacity. HB 1195 became active upon enactment.

A new law was introduced in the state of Maryland concerning the office of dog warden. The new law which is titled HB 1139 eradicated the office of dog warden in Calvert County which required a surety bond conditioned on the trustworthy performance of his or her responsibilities. The law also demanded a surety bond from all deputy dog wardens. Now that these offices are eliminated, the bond obligation also was eliminated. The SFAA did not oppose HB 1139 because it canceled the law for motives unrelated to the surety bond requirement. HB 1139 became active on October 1, 2008.

On 05/13/2008, a new law was enacted in Maryland regarding employment agencies. The new law, HB 866/SB 650, is an enforcement measure relating to the surety bond requirement for employment agencies in the state. The current law requires a “penal bond” in the amount of $7,000. HB 866/SB 650 permits the Commissioner of Labor and Industry to examine complaints that an agency failed to acquire the required bond; if this has occurred the commissioner will supply a notice to the agency requiring compliance or the agency will have to present a reason for the absence of the bond. If the agency failed to acquire the bond after such notifications are issued, a penalty in the amount of $1,000 per violation may be required from the agency.

On 04/08/2008, a new law was enacted in the state of Maryland and is regarding septic system installers and permit surety bonds. The new law, HB 305, authorizes the Howard County governing body to oblige permit holders for the installation of a multi-use septic system to obtain a performance bond before any phases of installation are initiated. HB 305 became active on July 1, 2008.