Oct 26, 2022
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SB 607 Bill Announcement, California

United States Court House Los Angeles USA

Effective 1/1/2023, per the SB 607 bill, the State of California Contractors State License Board will require contractor license, qualifying individual, and disciplinary bonds to increase from $12,500 and $15,000, respectively, to $25,000.

 

No action on your part is required. These bonds will automatically be increased if you qualify for the new required amount. 

Moving forward, the state will be sending surety companies a blanket endorsement form that the surety will submit automatically increasing the bond. Each surety will be handling things a little differently, but ultimately there is no need to execute individual increase riders, as the sureties will file them with the CSLB themselves. 

Some sureties in California have decided to waive all midterm premium increases and only increase the premium at renewal but others have decided additional mid-term premium will be charged. Sureties that are charging an additional mid-term premium will send invoices. 

The California Contractor’s State License Board will be updating its website with these changes in the near future. For all this and more, you can reach out to your Surety Account Manager, Marcia Taylor, with Morris & Garritano for any questions and further information regarding this change. Marcia can be reached by email at mataylor@morrisgarritano.com or by phone at (805) 543-6887 x397 

Tags: Law Alert

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