Third Party Administrator Bond Requirements

In accordance with 49 CFR 383.75, the Third Party Administrators who are not entities of state or local government or public school districts shall secure and maintain a Performance Bond guaranteeing all terms and conditions and other requirements from the signed Third Party Administrator Agreement with FLHSMV will be fulfilled.

The amount of the Performance Bond is determined by the number of individual tests the Third Party Administrator expects to conduct annually. For purposes of determining the bond amount, the pre-trip inspection, basic control skills and driving test count as three (3) separate tests.

The Performance Bond amount for a Third Party Administrator seeking to administer up to 300 tests annually must be $100,000.

The Performance Bond amount for a Third Party Administrator seeking to administer 301 – 1,600 tests annually must be $500,000.

The Performance Bond amount for a Third Party Administrator seeking to administer 1,601 or more tests annually must be $1,000,000.

The Performance Bond amount for subsequent years will be based on actual tests performed during the previous year.

A letter of credit meeting all substantive requirements of this section may be submitted in lieu of a Performance Bond. FLHSMV will only accept a letter of credit issued by financial institutions organized under the laws of Florida.