The California Legislature recently enacted Senate Bill 467, increasing the license bond requirement from $12,500 to $15,000 for California contractors, effective January 1, 2016. Contractor’s license bonds generally exist to benefit a contractor’s customers if they are financially damaged as a result of a contractor’s action such as defective construction, abandonment, a license law violation, or diversion of job funds. This marks the first increase in California’s contractor’s license bond requirement since 2008. California contractors should contact their bond company to ensure they are in compliance with the revised bond requirement.
For more information you can visit the Contractors State License Board website.