The Contractors' State License Board (CSLB) has received an influx of telephone calls and letters from contractors who have been unable to secure a contractor's bond or who are faced with a significant rate increase. Licensed contractors are required to maintain a surety bond (contractor bond) 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 to them (Business and Professions Code section 7071.5).
Surety companies base the premiums they charge on insurance company rates file with and approved by the Department of Insurance (DOI). All surety companies must strictly adhere to DOI's approved rating plan.
CSLB's role is to ensure the proper bond(s) or approved alternative(s) is filed for each active contractor license, including and related documents provided to CSLB for the continued maintenance of the bond(s).
Before an active contractor license can be issued or renewed, the licensee must have a current contractor bond or approved alternative to a bond on file with CSLB in the amount of $12,500.00. CSLB has no authority over the bond premium amount or the cancellation criterion offered by a surety company; DOI regulates the surety companies independent of CSLB.
Currently, there are more than 50 surety companies that have active bonds filed with the CSLB. If contractors are unable or prefer not to obtain a surety bond through these surety companies, they may use one of the approved alternatives for filing a security deposit. Information concerning approved alternatives to a contractor's bond is available on the CSLB website at www.cslb.ca.gov or by calling CSLB at 800-321-2752.
Friday, March 26, 2010
Thursday, March 18, 2010
SB 313 -- WORKERS' COMPENSATION
California Governor, Arnold Schwarzenegger, signed SB 313 in November, 2009, which went into effect on January 1, 2010. It is intended to help legitimate business, including contractors, to compete against business owners that do not pay workers' compensation insurance. It increases the employer's penalty from $1,000.00 per employee to $1,500.00 per employee for a business that does not carry workers' compensation insurance.
Another portion of this bill now makes employers pay the amount they should have paid into the state treasury for each week they were uninsured for the three years prior to the citation. If the employer obtains the insurance while a penalty determination is going on, the employer's penalty will be prorated.
Another portion of this bill now makes employers pay the amount they should have paid into the state treasury for each week they were uninsured for the three years prior to the citation. If the employer obtains the insurance while a penalty determination is going on, the employer's penalty will be prorated.
Wednesday, March 3, 2010
CSLB URGES LICENSEES TO COMPLETE RENEWAL FORMS PROMPTLY
CSLB INDUSTRY BULLETIN #10-07
Cutting deadline too close could lead to license expiration
The CSLB is reminding its more than 300,000 licensees to submit their renewal application and fees as soon as possible after receiving their CSLB license renewal notice.
A CSLB license expires on the last day of the month in which it was issued. The CSLB sends a renewal application notice to each licensee 60 days before the expiration date. In that notice, the licensee is advised that it may take up to four weeks for the CSLB to process the renewal once it is received. If the licensee waits too long, it is likely that the renewal will not be processed before it expires. If the license expires, the licensee will not be able to legally perform any construction work until CSLB processes their renewal paperwork.
The odds of missing your license renewal deadline increase if you wait too long to submit your paperwork. The CSLB receives an influx of renewals during the last couple of weeks of each month, meaning it can take longer to process applications toward the end of any month.
It is important to note that the CSLB cannot accommodate requests for a "rush" on renewal processing. Renewal applications are processed according to the date they are received.
Anyhow interested in learning more can see all current processing times on the CSLB website at www.cslb.ca.gov. Just click on "online Services." The information is updated on a weekly basis.
Cutting deadline too close could lead to license expiration
The CSLB is reminding its more than 300,000 licensees to submit their renewal application and fees as soon as possible after receiving their CSLB license renewal notice.
A CSLB license expires on the last day of the month in which it was issued. The CSLB sends a renewal application notice to each licensee 60 days before the expiration date. In that notice, the licensee is advised that it may take up to four weeks for the CSLB to process the renewal once it is received. If the licensee waits too long, it is likely that the renewal will not be processed before it expires. If the license expires, the licensee will not be able to legally perform any construction work until CSLB processes their renewal paperwork.
The odds of missing your license renewal deadline increase if you wait too long to submit your paperwork. The CSLB receives an influx of renewals during the last couple of weeks of each month, meaning it can take longer to process applications toward the end of any month.
It is important to note that the CSLB cannot accommodate requests for a "rush" on renewal processing. Renewal applications are processed according to the date they are received.
Anyhow interested in learning more can see all current processing times on the CSLB website at www.cslb.ca.gov. Just click on "online Services." The information is updated on a weekly basis.
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