Higher Contractor's Bond Now Required of All Licensees

The amount of the contractor' bond needed to keep your license active was raised to $15,000 on January 1, 2016. All licensees should have made sure before now that their bond companies have posted the higher amount for them, or that a cash deposit is in place.

Contractors who didn't meet the deadline risk having their license suspended.

Recently passed legislation (Senate Bill 467) raised the contractor bond required of all licensees from $12,500 to $15,000 at the start of the new year. The legislation also eliminated the requirement that contractor applicants prove they have $2,500 in working capital as a condition of obtaining a CSLB license.

California law (Business and Professions Code section 7071.6) requires all contractors to have either a contractor's bond or cash deposit filed with CSLB. The bond or cash deposit is filed for the benefit of consumers who may be damaged as a result of defective construction or other license law violations, and for the benefit of employees who have not been paid wages that are due them.

The bond of qualifying individuals remains unchanged at $12,500.

A list of surety companies with blanket endorsements in place with CSLB is available here.

CSLB Previews 2016 Legislative, Long-Term Goals

A preview of CSLB's legislative goals for 2016 was unveiled for construction industry stakeholders at a meeting November 19 at CSLB headquarters. The preliminary lineup of CSLB's legislative proposals for the coming year, and longer-term goals, was presented for information and discussion.

CSLB Chief of Legislation Laura Zuniga told those attending that CSLB would pursue legislation that will allow the board to:

Raise certain fees, if necessary, to reflect higher CSLB costs;
Provide additional disclosure on solar contracts;
Make changes to the contractor test scheduling process that some applicants believe is too restrictive;
Clarify laws involving public works contracts; and
Eliminate loopholes in the citation process.

Looking down the road, Zuniga said CSLB wants to simplify home improvement contract language that's now perceived to be cumbersome and confusing for contractors and consumers alike, as well as reorganize Contractors State License Law so it can be more easily understood.