Mar 11

According to the recently enacted Iowa House Bill 2646 (HB 2646), fire sprinkler installers and maintenance workers are required to become officially licensed, purchase public liability insurance, and must obtain a surety bond (specifically a license bond). The amount of this commercial bond will be determined by Iowa’s Department of Public Safety.

In the state of New Mexico, HB 199 was enacted, which requires replaces the existing contractors’ license bond requirement with a $10,000 surety bond from a corporate surety bond company licensed in New Mexico. The existing contractors’ license bond needed to be replaced because the bond amounts were too small, and were based on size of projects already completed. Payments from the license bond can only be utilized to cure code violations of the licensee. Any claims that arise against the surety bond must be brought up within two years after the final inspection, or within two years of a certificate of occupancy being issued. Typically, whichever is earlier is what will be used. Furthermore, the surety bond company’s total aggregate liability cannot be higher in value than the surety bond’s face amount. Lastly, this bond requirement has a 30-day cancellation provision.

With the enactment of North Carolina HB 2353 and SB 1795, the state’s Irrigation Contractors’ Licensing Board was created. This new law requires all irrigation contractors operating in the state either obtain a $10,000 license bond from a state-licensed issuer (surety), or a letter of credit (LOC). If a surety bond is obtained, it must be conditioned on compliance, and be open to claims arising from people injured as a result of a direct violation of the newly enacted law.