Donate
Bills

SB 425: Bonds: public entities as beneficiaries.

  • Session Year: 2025-2026
  • House: Senate
  • Latest Version Date: 2025-03-26

Current Status:

Failed

(2026-02-02: Returned to Secretary of Senate pursuant to Joint Rule 56.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

Existing law, the Bond and Undertaking Law, prescribes procedures for a bond or undertaking that is executed, filed, posted, furnished, or otherwise given as a security pursuant to any statute, except as specified. Unless a statute providing for a bond indicates that the bond becomes effective at a different time, a bond is effective at the time it is given or, if the statute requires that the bond be approved, at the time it is approved.

This bill would specify that if a statute provides for a bond to be given to or in favor of a beneficiary that is a public entity, as defined, in connection with the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible personal property, that bond is not effective unless the beneficiary agrees to (1) make all payments to the principal, or to the surety if the surety agrees to complete the work upon the principals default, and (2) perform all necessary obligations owed to the principal under the contract for the work.

Under existing law, a notice of cancellation of an automobile insurance policy is not effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation.This bill, instead, would require the notice of cancellation to be mailed or delivered by the insurer at least 30 days prior to the effective date of cancellation to be effective.

News Coverage:

SB 425: Bonds: public entities as beneficiaries. | Digital Democracy