Blog Posts Categorized: General - Page 23

The passage of LB 186 will bring about some changes to Nebraska money transmitters’ surety bond amounts. The bill takes effect three months after the Nebraska legislature’s May 23 adjournment.

Currently, Nebraska money transmitters must post a surety bond of $100,000, plus $5,000 for each additional business location. The surety bond can be increased up to $250,000 by the director of the Department of Banking and Finance. LB 186 removes the requirement for a $5,000 surety bond increase per location, but new money transmitter applicants will still be required to post a $100,000 surety bond when applying for licensure. The increase to $250,000 at the director’s discretion also remains part of the law.

The change for Nebraska money transmitters comes after their first year of licensure, at which time the surety bond amount will depend on the dollar amount of transactions in the previous year. Per LB 186, the surety bond amounts required are as follows:

• Up to $2,000,000 in transactions�$100,000 surety bond
• $2,000,000.01 to $4,000,000 in transactions�$150,000 surety bond
• $4,000,000.01 to $6,000,000 in transactions�$200,000 surety bond
• $6,000,000 or more in transactions�$250,000 surety bond

If a licensee fails to maintain the correct surety bond amount, the Department must give the licensee 30 days’ written notice to comply with the law.

Nebraska money transmitters apply for licensure through the Nationwide Multistate Licensing System (NMLS) and the Department has created a licensing checklist for applicants. Some of the information applicants must submit is as follows:

• $1,000 licensing fee
• DBAs and trade names
• Money Services Business (MSB) number issued by the United States Department of the Treasury
• Audited financial statement for the most recent three fiscal years
• Business plan
• Certificate of authority/Good standing certificate

The Department’s checklist contains a full list of required applicant information. Nebraska money transmitters’ licenses expire annually on December 31 and they must submit the following information for renewal on or before that date:

• $250 licensing fee plus any processing fees required under Nebraska Revised Statutes 8-2730
• Copy of licensee’s most recent audited financial statement
• Any material changes from the original application not already reported to the Department

Nebraska Revised Statutes 8-2734 contains a full list of renewal requirements.

Ready to get a Nebraska surety bond? The team at Single Source Insurance can help you get bonded today!

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Florida travel agents, referred to as Florida sellers of travel, must register with the state and purchase a surety bond in order to do business. Read on to find out how to get started as a Florida travel agent.

Registration for Florida Travel Agents

Florida travel agents must register every year with the�Florida Department of Agriculture and Consumer Services (FDACS). Sellers of travel must provide the FDACS with the following information when registering, among other information:

• Organization’s legal name
• Organization’s street address and phone number
• Designated contact person and their name, title, and address
• Federal employer identification number
• $300 registration fee

The registration application contains a full list of the required information for seller of travel applicants. Each advertisement, contract, certificate, and travel document issued by the seller of travel must include their registration number in a prescribed format and display their registration certificate prominently in the place of business.

Florida travel agents that offer vacation certificates (defined in Section 559.927 of the Florida Statutes) must also submit an additional $100 document fee along with the documents required under Florida Statutes Section 559.9295. Sellers of travel that employ independent sales agents must include a $50 fee per agent.

Florida Seller of Travel Surety Bond

Florida travel agents whose businesses do not offer vacation certificates typically need to include a $25,000 surety bond with their registration. If the agent has no unresolved complaints can request to have their surety bond amount reduced by submitting a Security Reduction Application along with the travel agent’s federal income tax return or audited financial statement for the previous year. If the reduction is granted, the surety bond amounts are as follows:

• $10,000 bond for a new business, business under new ownership, or a business under the same ownership for at least one year with less than $500,000 gross annual sales
• $15,000 bond for a business under the same ownership for at least one year with gross annual sales between $500,000 and $1,000,000
• $20,000 bond for a�business under the same ownership for at least one year with gross annual sales between $1,000,000 and $2,000,000

New businesses do not need to provide financial documents with their Security Reduction Application.�Florida travel agents offering vacation certificates will need to submit a $50,000 surety bond and are not eligible for a security reduction. All sellers of travel must submit an original surety bond and not a copy of the document.

Get in touch with the FDACS to verify your bond amount and the documents needed to become registered. If you’re ready to get a Florida travel agent surety bond, get in touch with Single Source Insurance today!

Mississippi small craft breweries need to post a surety bond if they plan to sell their products (beer or wine) on the premises, for consumption on or off premises. HB 1322 took effect on July 1, 2017, and the new surety bond requirement is in addition to one already required.

Mississippi small craft breweries are those permitted to brew or manufacture beer with an alcohol by volume (ABV) of no more than 8% and wine with an ABV of no more than 5%. As defined in HB 1322, a small craft brewery manufactures or brews no more than 60,000 barrels of light wine or beer, including any brewed under contract with another beer manufacturer. Small craft breweries cannot sell at retail more than 10% or 1,500 barrels of beer or wine produced annually on site, whichever is less�not including contract-brewed beer. There are a few more rules small craft breweries must follow in order to be eligible for on-site sales:

• Beer and wine must be available to wholesalers for purchase
• No more than 576 ounces of beer or wine can be sold to one person in a 24-hour period
• Beer or wine must be sold at retail only for personal use, not for resale
• No sales of contract-brewed beer can be made
• No beer or wine can be shipped to consumers

HB 1322 requires Mississippi small craft breweries to abide by many of the same general rules as a bar or restaurant, including prohibiting sales to intoxicated or underage persons and prohibiting sales between midnight and 7 a.m. unless the sale of alcohol is extended beyond midnight in their area.

When Mississippi small craft breweries apply for a manufacturing permit, they must already post a surety bond in an amount between $5,000 and $200,000, not to exceed the amount of 60 days’ excise tax owed by the brewery. The amount is determined by the Department of Revenue’s Mississippi State Tax Commission. HB 1322 now requires small craft breweries that manufacture and sell their products on the premises to post a separate surety bond in a similar amount, also not to exceed 60 days of excise tax owed by the brewery. The new surety bond is an assurance that the brewery will pay all excise taxes owed to the state.

Mississippi small craft breweries’ monthly excise taxes must be paid by the fifteenth of the following month, and breweries can incur fines for late or nonpayment of taxes. Read HB 1322 and consult the Mississippi Department of Revenue for full regulations.

Ready to get bonded in Mississippi? Single Source Insurance can help!

With the passage of HB 215 in May, the Alabama Monetary Transmission Act became law. The bill brings about some changes for Alabama money transmitters and takes effect on August 1, 2017.

Alabama money transmitters sell or issue payment instruments, stored value, or receive money or monetary value for transmission. The Alabama Monetary Transmission Act does not apply to any U.S. departments or agencies, the U.S. Postal Service, or any state, county, or city governmental agencies, among others.

Under current law, Alabama money transmitters must post a $10,000 surety bond when applying for a license, plus $5,000 for each additional business location, not to exceed $50,000. HB 215 will increase that bond amount, requiring money transmitters to post a bond that is a minimum of $100,000 or an average of the daily outstanding obligations for money received for transmission in Alabama, plus 50 percent of the average daily outstanding payment instrument and stored value obligations in the state—whichever is greater. The maximum surety bond Alabama money transmitters can be required to obtain is $5,000,000.

Alabama money transmitters apply for a license through the Alabama Securities Commission. Per HB 215, their licenses expire annually on March 31. New applicants must pay a filing and license fee of no less than $500, and the renewal fee must also be no less than $500 and must be paid by March 15 each year. License renewals must be accompanied by a renewal report containing the following information:

• Copy of licensee’s most recent financial statement
• Number and monetary value of payment and stored-value instruments the licensee has sold in Alabama that have not been previously reported
• Monetary amount of payment and stored-value instruments currently outstanding
• Description of any material change in information from licensee’s original application not already reported to the Commission
• Proof that an adequate surety bond or other financial security has been maintained
• List of business locations in Alabama

Licensees have an additional 20 days after March 31 to renew their license, but a late fee of $100 is incurred for each day between expiration and license renewal.�HB 215 also increases the minimum net worth required of Alabama money transmitters, from $5,000 to $25,000, evidenced by current financial statements.

Need an Alabama surety bond? Get in touch with Single Source Insurance today and get bonded in Alabama!

HB 49 was signed into law in May, bringing about some changes for Georgia livestock dealers and market operators. The bill takes effect on July 1, 2017.

HB 49 clarifies the definition of a livestock dealer and adds more parameters for those not considered livestock dealers. Georgia livestock dealers are anyone engages in or facilitates the purchase, sale, exchange, or other ownership transfer of livestock in Georgia, including by electronic means. The definition of a livestock dealer does not include the following, per the new law:

• Farmers acquiring livestock solely for the purpose of grazing and feeding
• Packers whose annual livestock purchases total less than $50,000 and who buy only from licensed dealers and sale establishments
• Persons selling livestock of their own production or buying for their own production
• Persons auctioning livestock on behalf of a third party

HB 49 removes all instances of the word “bond” and replaces them with the word “surety,” which includes a surety bond, letter of credit, certificate of deposit, or other bank-issued financial assurance. This means that Georgia livestock dealers and market operators have the option of posting one of those proofs of financial security rather than a surety bond.

Under current law, Georgia livestock dealers’ surety bond amount is calculated based on the number of days in the previous year during which the dealer did business. Then, the total�dollar value of livestock purchased during the previous year is divided by half of the number of business days or 130, whichever number is less. Surety bond amounts are then determined as follows:

• The number found is $10,000 or less: $10,000 surety bond
• The number found is more than $10,000 but less than $75,000: surety bond is equal to number found
• The number found is more than $75,000: surety bond is $75,000 plus 10 percent of the amount by which the amount found exceeds $75,000

Livestock market operators’ surety bond is currently calculated according to the annual sales of the livestock sales establishment:

• Annual sales of $2,600,000 or less: surety bond is one fifty-second of annual sales but no less than $10,000
• Annual sales of more than $2,600,000: surety bond is $50,000 plus one fifty-second�of the amount of annual sales in excess of $2,600,000.00 times a factor of 0.2
• If the surety bond amount calculated is not a multiple of $5,000, the bond amount is rounded up to the nearest higher multiple of $5,000

Under HB 49, Georgia livestock dealers and market operators will have a much less complicated way of determining their surety bond amount, as a sufficient bond amount will be agreed upon with the Georgia Department of Agriculture. HB 49 mandates that the Department publishes a list of licensed dealers and market operators.

Ready to purchase a Georgia livestock dealer or market operator surety bond? Get in touch with Single Source Insurance today!

Indiana notaries public will need to increase the amount of their surety bond following the passage of SB 539. Signed into law in April, the bill takes effect on July 1, 2018, and holds a few additional changes for notaries in the state.

Under current law, Indiana notaries are required to obtain a $5,000 surety bond when applying for a license. SB 539 will increase the surety bond amount to $25,000. Indiana notaries apply online through the Secretary of State’s office and must meet certain eligibility criteria, including the following:

• At least 18 years old
• U.S. citizen or legal permanent resident
• Resident of or primarily employed in Indiana
• Satisfy educational requirements
• Pass a notary examination

Educational requirements for Indiana notaries include a course of education and exam administered by the Secretary of State, as well as complete a maximum of two hours of continuing education every two years. Indiana notary commissions are valid for eight years, and notaries can apply to renew their commission as early as 60 days before its expiration.

SB 539 clarifies that notarial acts performed by notaries licensed in other states, in the jurisdiction of Native American tribes, and acts performed under federal law are valid in Indiana as long as the individuals are authorized to perform notarial acts. Notarial acts performed under the authority of foreign governments�not under the jurisdiction of state, federal, or Native American laws�are also valid in Indiana per SB 539.

Indiana notaries must provide a certificate to authenticate notarial acts, and the certificate must be issued under the following conditions:

• Issued at the same time the notarial act is performed
• Signed and dated by the notarial officer
• Must identify where the act was performed
• Must display notarial officer’s title
• If the notarial officer is a notary public, certificate must display the notary’s commission expiration date and the county in which they are commissioned

SB 539 details requirements for the seals of any Indiana notaries commissioned or recommissioned after December 31, 2017. The seal must include the following information:

• The phrase “notary public”
• The phrase “state of Indiana”
• The word “seal”
• Notary’s name as it appears on their commission
• The phrase “commission number” followed by the notary’s commission number
• The phrase “my commission expires” followed by the notary’s commission expiration date

Indiana notaries’ seals must be destroyed if their commission expires without renewal, if they resign, or if their commission is revoked. Notaries are subject to the provisions of SB 539 if they renew or apply for commission after January 1, 2018; notaries whose commissions are in effect on that date will need to comply with SB 539 upon their next renewal.

Ready to get an Indiana surety bond? Let Single Source Insurance help you get bonded today!

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Washington notaries public may see their bond amount change with the passage of SB 5081, which takes effect on July 1, 2018. Currently, notaries in the state must post a $10,000 surety bond to become licensed.

SB 5081 is Washington’s adoption of the Law on Notarial Acts via the Uniform Law Commission, which promotes consistency of law across states. Other states that have adopted the Act include Oregon, Iowa, and Colorado.

Washington notaries are licensed by the state Department of Licensing, and there are several prerequisites to licensure. Washington notary applicants must meet the following criteria:

• At least 18 years old
• Can read and write in English
• Live in Washington state, or live in Idaho or Oregon while employed and/or doing business in Washington
• Obtain a surety bond

Notary public applicants must submit a completed application to the Department of Licensing, along with a copy of their surety bond and a $30 application fee, paid by check or money order. While the current surety bond amount required is $10,000, SB 5081 allows the director of the Department to establish applicants’ bond amounts. The new law specifies that the surety bond must cover a four-year term, or expire concurrently with the notary’s license expiration. SB 5081 also stipulates that the bond must specify that it covers acts performed during the time of the notary’s commission.

Washington notaries can have their commission revoked, suspended, or their renewal denied for a few reasons, including the following:

• Making false statements on their application
• Being convicted of a felony
• False advertising of the services they can perform as a notary
• Notary commission revocation, denial, or suspension in another state
• Failure to maintain a surety bond

Consult SB 5081 for a full list of prohibited acts. After receiving their commission, Washington notaries must obtain a stamp or seal that complies with the Revised Code of Washington Section 42.44.050 and with Washington Administrative Code 308-30-010.

Get in touch with Single Source Insurance today to learn more and get your Washington notary bond!