A new West Virginia bill that was recently enacted will require a surety bond of proprietary schools.
Details on the New Requirement
The new bill, titled WV H 4077, and effective 06/01/2020, increases the bond required to be posted by each proprietary school having facilities in the state from $35,000 to an amount between $50,000 – $100,000, as determined by the council, and conditioned upon the school faithfully performing all requirements of the legislation.
Two additional existing provisions which currently mandate surety bonds at a fixed amount would also be revised to an amount “determined by the council,” but then new sentences would also added which contain references to surety bonding alternatives: “If the school has changed ownership within the last 10 years by transfer of ownership control to a person who is a spouse, parent, sibling, child or grandchild of the previous owner, the surety bond shall continue in the penal sum as determined by the council,” where presently such bond is currently fixed at $35,000.
The amendment would also add a sentence stating that “[u]pon release of the bond, any cash or collateral securities deposited by the school shall be returned to the school that deposited the same.” “Any school which has operated in West Virginia for fewer than 10 years, excluding those schools which have changed ownership within the last 10 years [as provided above], and any school located in another state which applies for a permit hereunder, shall provide a surety bond as determined by the council,” where presently such bond is currently fixed at $50,000.
The amendment would also add that “the form of the bond shall be approved by the Chancellor and may include, at the option of the school, surety bonding, collateral bonding (including cash and securities), establishment of an escrow account, submission of a letter of credit or a combination of these methods.
How to Apply for a Surety Bond
If you find that you must obtain this surety bond, you’ll need to contact a bond provider who is licensed to to business in West Virginia. JW Surety Bonds is licensed nationwide, so please apply for a free quote online, or feel free to reach out to us if you’d like assistance with obtaining this bond.