AB 521: Contractors State License Board: bond deposits: liability for legal fees and costs.

Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law requires the board, with the approval of the Director of Consumer Affairs, to appoint a registrar of contractors to serve as the executive officer and secretary of the board.

Existing law requires a licensee who is subject to a bonding provision under the law to maintain a bond as executed by an admitted surety insurer or as deposited with the registrar, as specified. Prior existing law authorized certain deposits to be given instead of the bond, as specified. Existing law requires all alternatives in lieu of a bond that had been filed with the registrar to be replaced for a surety bond or the deposit of lawful money or a cashiers check, as specified, by January 1, 2020. Existing law prohibits the board from charging legal fees against those deposits, as specified.

This bill would exempt the board from liability for legal fees or costs in an action against any deposit described above, regardless of when it was filed with the registrar.