September 6, 2013 California Governor Jerry Brown signed into law bill number SB662 effecting the surety bond requirement for thousands of licensed structural pest control companies operating in the state.
The previous structural pest control operators to maintain a surety bond in the amount of $4,000 in order to maintain its license or company registration. If a structural pest control operator’s license or company registration is suspended or revoked, on specified grounds, the registrar of the board shall require the applicant, licensee, or registered company, as a condition of the issuance, re-issuance, or restoration of the license or company registration, to file a surety bond in a sum to be determined by the registrar based upon the seriousness of the violation, but not less than $1,000 nor more than $8,000.
This bill raises the amount of the surety bond, needed to maintain the license or company registration, from $4,000 to $12,500, and would raise the upper limits of the amount of the surety bond required for “issuance, re-issuance, or restoration” of the license or company registration, after a suspension or revocation, from $8,000 to $25,000.
The effective date of the new requirement is January 1, 2014, however companies will have until July 1 to comply with her law. Chances are that even if one waits until June 30 to purchase the increased bond it will have to be back dated to January 1, so there will not be any price savings of the surety bond.
Another change, alternative forms of security will no longer be accepted. All structural pest control operators will be required to post the $12,500.00 surety bond.