Ohio’s top three surety bonds are Contractor License Bonds, Motor Vehicle Dealer Bonds, and Lottery Sales Bonds. This week we’ll cover each of the three bonds, discussing who is required to obtain them, the bond amount, and more.
Ohio Contractor License Bonds
Most states have a contractor license bond requirement, but not Ohio. In Ohio, each county, city, and municipality have their own bond requirement. Instead of having one bond required by the state, a contractor in Ohio may have dozens, for each city work is performed in. Ohio contractor license bonds vary in bond amount and term, but most are one- or two-year bonds with a bond amount between $10,000 and $25,000.
Ohio Motor Vehicle Dealer Bonds
Ohio motor vehicle dealer bonds are required for all motor vehicle dealerships. A used motor vehicle dealer, as required in section 4501:1-3-11 of the Ohio Administrative Code (OAC), shall post with the Attorney General’s Office in favor of this state, a surety bond in the amount of twenty-five thousand dollars ($25,000). Auto dealers entering into the business or existing businesses must file and keep a surety bond with the Ohio Bureau of Motor Vehicles before they can receive their auto dealer license. The surety bond is used solely for the purpose of replenishing funds that have been distributed from the Title Defect Rescission (TDR) fund to compensate retail purchasers of the said dealership. No license will be issued if a surety bond has not been secured meeting the requirements below. Proof that a surety bond has been secured must be submitted with the application.
Ohio Lottery Sales Bonds
The Ohio Lottery Commission requires that most lottery sales retailers furnish a $15,000 surety bond to guarantee compliance with the rules and regulations established by the Commission. The surety bond is for those who wish to become a licensed lottery retailer and is conditioned upon the retailer’s compliance with all laws, rules, policies, and regulations governing the license. Businesses that may be a retailer are gas stations, grocery stores, or any place where lottery tickets are sold in Ohio.
Most retailers are required to carry a $15,000 bond but may be required to carry a higher bond based on lottery sales. A surety bond typically costs $10 to $15 per thousand dollars of coverage. The lottery issues tickets on consignment. The bond protects the lottery against any monies due from the retail locations. Additional information regarding the lottery retailer application process can be found on the Ohio Lottery website.