As you may have heard, the State of California recently passed Senate Bill 467 which increases the bond penalty for Contractor’s License Bonds. Effective January 1, 2016, the bond penalty will increase from $12,500 to $15,000.
Per an agreement with the California Contractors State License Board (CSLB) and the sureties, the bond penalty will automatically increase after the effective date. Thus, no action will be needed from you to affect this increase.
However, there will be a small increase in premium that will be assessed by the sureties in supplemental billings. The amount of the supplemental billing will depend on your rate, renewal date, and term, but should be relatively small. Likely between $10 and $100.
This supplemental billing may come directly from the surety company. If you receive a bill from the surety, we advise you to either please pay the bill, or contact us to confirm the surety and the amount.
If your license bond is handled by another agent, we encourage you to contact them regarding this increase, as a failure to pay the increase may result in the cancellation of your bond.