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CaliforniaAB 5212025-2026 Regular SessionHouseWALLET

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

Sponsored By: Juan Carrillo (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Contractors must use approved bonds or deposits

Beginning January 1, 2019, contractors must meet the license bond with either a surety bond from an admitted insurer or a cash deposit with the registrar. Certificates of deposit and other methods do not count. The registrar stops accepting other alternatives after that date. All old alternatives on file must be replaced by January 1, 2020. This section does not cover the special bond‑equivalent instruments in Section 7159.5. To comply, you only need to give the same information Section 30 requires from an applicant.

Deposits frozen in lawsuits, shared payouts

If the board gets written notice of a lawsuit against a deposit, the registrar does not release any money unless a court orders it. When the deposit is too small to cover all decided claims, payments are split by share among claimants. The board cannot charge legal fees against covered alternatives or deposits and is not liable for legal fees or costs in those actions. These rules help keep more money available to pay valid claims.

Faster wage recovery through Labor Commissioner

Employees file unpaid wage or fringe‑benefit claims with the Labor Commissioner. You must file within six months after you discover the unpaid amount, and no later than two years after it was due. If the Commissioner rules for you, the registrar holds the deposit for 10 days to allow a court review request. If a court case is filed, the court decides payment. If no case is filed within 60 days, the registrar pays you from the deposit.

Three-year limit for non-wage claims

Most non‑wage lawsuits against a contractor’s deposit must start within three years. The three years runs from the earlier of the end of the license period when the act happened, or the date the license was inactivated, canceled, or revoked. For disciplinary‑bond deposits, the clock can also run from three years after the last date the deposit was required. Wage and fringe‑benefit claims follow different timelines.

Sponsors & Cosponsors

Sponsor

  • Juan Carrillo

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 177 • No: 0

Senate vote • 8/25/2025

Item 248 — Senate SFLOOR

Yes: 37 • No: 0

legislature vote • 6/24/2025

Vote in CS53

Yes: 12 • No: 0

legislature vote • 6/9/2025

Vote in CS42

Yes: 8 • No: 0

House vote • 5/1/2025

Item 183 — Assembly AFLOOR

Yes: 76 • No: 0

legislature vote • 4/23/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote • 4/8/2025

Vote in CX13

Yes: 12 • No: 0

legislature vote • 4/1/2025

Vote in CX33

Yes: 17 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 265, Statutes of 2025.

    10/3/2025Senate

  2. Approved by the Governor.

    10/3/2025legislature

  3. Enrolled and presented to the Governor at 3 p.m.

    9/2/2025legislature

  4. In Assembly. Ordered to Engrossing and Enrolling.

    8/26/2025House

  5. Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2250.).

    8/25/2025Senate

  6. Read second time. Ordered to Consent Calendar.

    8/20/2025Senate

  7. From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

    8/19/2025Senate

  8. In committee: Hearing postponed by committee.

    7/9/2025Senate

  9. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (June 24). Re-referred to Com. on APPR.

    6/25/2025Senate

  10. From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (June 9). Re-referred to Com. on JUD.

    6/9/2025Senate

  11. Referred to Coms. on B. P. & E.D. and JUD.

    5/14/2025Senate

  12. In Senate. Read first time. To Com. on RLS. for assignment.

    5/1/2025Senate

  13. Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 1386.)

    5/1/2025House

  14. Read second time. Ordered to Consent Calendar.

    4/24/2025House

  15. From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (April 23).

    4/23/2025House

  16. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 8). Re-referred to Com. on APPR.

    4/8/2025House

  17. From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 17. Noes 0.) (April 1). Re-referred to Com. on JUD.

    4/1/2025House

  18. Referred to Coms. on B. & P. and JUD.

    2/24/2025House

  19. From printer. May be heard in committee March 13.

    2/11/2025House

  20. Read first time. To print.

    2/10/2025House

Bill Text

  • Chaptered

    10/3/2025

    HTML

  • Enrolled

    8/27/2025

    HTML

  • Introduced

    2/10/2025

    HTML

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