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Legislative Developments Archives

2016 SUMMARY OF NEW CALIFORNIA LAWS THAT MAY IMPACT THE CONSTRUCTION INDUSTRY

Last year the California legislature passed and the governor approved a large number of new bills which will impact the construction industry. The remainder of this article sets forth a brief summary of a number of the new California construction industry related laws.

California Contractor's License Bond Amount Increased Effective January 1, 2016

California Senate Bill 467 (Hill) which was signed by the Governor on October 8, 2015 amended Section 7071.6 of the Business and Professions Code effective January 1, 2016. This amendment increases the California contractor's bond requirement for the issuance, reinstatement, reactivation, renewal, or continued maintenance of a California Contractors license. As of January 1, 2016, the amount of the contractor's bond which is a required condition precedent for licensure will be increased from $12,500 to $15,000. The Contractors State License Board states that a contractor's bond or cash deposit received at CSLB after December 31, 2015 must be in the new required amount of $15,000. Any contractor's bond or cash deposit of $12,500 received after December 31, 2015 will not be processed. If you are being issued a license or your license is up for reinstatement, reactivation or renewal, you should contact your bonding agent to ensure that your bond complies with the new $15,000 requirement. This amendment does not change the aggregate liability limit of $7,500 on any claims brought against a license bond. 

News laws impacting the construction industry become effective in 2013

With the New Year here, construction professionals can welcome in a series of new laws which will impact the industry. Mr. Last has compiled a list of these legislative developments, which become effective in 2013. The list is posted on our website, and can be viewed via this link.

A 2012 Update on New California Laws that May Impact the Construction Industry

In 2011 the California legislature passed and the governor approved new legislation that will impact the construction industry. And some previously approved laws will be coming into effect in 2012. These modifications include several relatively high impact changes.

Governor Brown has signed SB 474 into law. Type I indemnity provisions will be restricted in contracts signed after January 1, 2013.

As we have previously noted, in September California's legislators approved SB 474 and sent it to Governor Brown's desk for signature or veto. On October 9, 2011 the Governor signed SB 474 into law.

SB 293 was approved by the California legislators and is headed to the Governor

As noted in our SB 474 posting, at least two construction-related laws were approved by California legislators at the end of the 2011 legislative session: SB 474 and SB 293. This post discusses SB 293. Both bills are now headed to the governor's desk for his signature or veto.

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