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HB0184 • 2020

Performance bonding requirements.

AN ACT relating to labor and employment; revising bonding requirements for nonresident employers; repealing a related provision; specifying applicability; and providing for effective dates.

Energy Labor Land
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Coal/Mineral Bankruptcies
Last action
2020-02-26
Official status
inactive
Effective date
3/1/2020

Plain English Breakdown

The official source material does not provide a plain language title or summary.

Changes to Bonding Requirements for Nonresident Employers

This bill revises the bonding requirements for nonresident employers in Wyoming and sets a deadline for compliance.

What This Bill Does

  • Revises the bonding requirements for nonresident employers who expect to pay more than $4,000 in wages per month in Wyoming.
  • Allows nonresident employers to post other types of security besides surety bonds if approved by the director of the department of workforce services.
  • Requires nonresident employers to provide additional security before starting new work if their previous bond has expired.
  • Removes a provision that allowed for the withdrawal of a bond after two years without any issues.

Who It Names or Affects

  • Nonresident employers who conduct business in Wyoming and pay wages there.

Terms To Know

Surety Bond
A financial guarantee provided by a third party to ensure that an employer will meet their obligations, such as paying workers' compensation claims.
Nonresident Employer
An employer who is not based in Wyoming but conducts business there and pays wages to employees.

Limits and Unknowns

  • The bill did not pass during the session.
  • It sets specific effective dates for certain parts of the changes, with some provisions taking effect immediately upon passage and others on July 1, 2020.

Bill History

  1. 2020-02-26 House

    H COW:H Did not consider for COW

  2. 2020-02-24 House

    H Placed on General File

  3. 2020-02-24 House

    H09 - Minerals:Recommend Do Pass 9-0-0-0-0

  4. 2020-02-12 House

    H Introduced and Referred to H09 - Minerals 52-8-0-0-0

  5. 2020-02-12 House

    H Received for Introduction

  6. 2020-02-11 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text
20LSO-0304
2020
STATE OF WYOMING
20LSO-0304
Numbered
2.0

HOUSE BILL NO. HB0184

Performance bonding requirements.

Sponsored by: Select Committee on Coal/Mineral Bankruptcies

A BILL

for

AN ACT relating to labor and employment; revising bonding requirements for nonresident employers; repealing a related provision; specifying applicability; and providing for effective dates.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 27
‑
1
‑
106(a), (c)(intro), (d), (e)(intro) (i) and (ii) and (f) and 27
‑
14
‑
302(b) are amended to read:

27
‑
1
‑
106.

Certain nonresident employers required to post bond; exceptions.

(a)

All firms, corporations or employers of any kind who are nonresident employers and expect to pay wages in
the state of Wyoming in excess of four thousand dollars ($4,000.00) in any month as a result of conducting business within Wyoming, are required to file
a surety bond
with the director of the department of workforce services
.
a surety bond or other security meeting the requirements of this section, approved by the director.

(c)

The bond
or security
provided for in this section shall ensure:

(d)

The nonresident employer shall post
an
additional
security
bond
before performing work under any new contract if the
security
bond
previously posted under this section has expired.

(e)

Upon application by a nonresident employer, the director may permit the withdrawal of any
security
bond
if the employer has:

(i)

Complied with the
security
bonding
requirements of this section and made all necessary payments for a period of two (2) years;
or

(ii)

Demonstrated that he has been a resident of the state for two (2) years and intends to remain a resident
.
; or

(f)

If the anticipated work has ceased before the expiration of twenty
‑
four (24) months, or less than fifty percent (50%) of the largest work force is still working in Wyoming, the
security
bond
deposited by the nonresident employer shall be forfeited and retained by the division in an amount equal to the reserved amounts for compensable injuries to the nonresident employer's employees. Upon application by a nonresident employer, the division shall refund the amount not forfeited pursuant to this subsection except for any disbursements made under subsection (c) of this section.

27
‑
14
‑
302.

Required reporting; security required for certain nonresident employers.

(b)

Before starting business or engaging work in this state, a nonresident employer as defined by W.S. 27
‑
1
‑
106(a) shall register as required by W.S. 27
‑
14
‑
207, and shall either pay an advance premium deposit as provided
in the department's rules and regulations or shall file with the director a surety bond
or other security approved by the director,
as provided in W.S. 27
‑
1
‑
106.

Section 2.

W.S. 27
‑
1
‑
106(e)(iii) is repealed.

Section 3.

To the extent any nonresident employer has provided a security that does not conform to the requirements of W.S. 27
‑
1
‑
106 as amended by sections 1 and 2 of this act, the director of the department of workforce services shall inform the employer of the need to provide a surety bond as provided in W.S. 27
‑
1
‑
106 on July 1, 2020.

Section 4
.

(a)

Except as provided in subsection (b) of this section,

this act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(b)

Sections 1 and 2 of this act are effective July 1, 2020
.

(END)

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HB0184