AB-521 • 2026

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

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Carrillo
Last action: 2025-10-03
Official status: Chaptered by Secretary of State - Chapter 265, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details about when this new rule will take effect or how much money might be involved with bond deposits.

Contractors' Bond Deposits and Legal Fees

This law changes how the Contractors State License Board handles bond deposits by exempting them from liability for legal fees or costs related to these deposits.

What This Bill Does

Changes rules regarding contractors who need to put money in a special account instead of getting insurance bonds.
Exempts the board from paying legal fees and costs if someone tries to sue over those deposits.

Who It Names or Affects

Contractors who need to put money in a special account instead of getting insurance bonds.
The Contractors State License Board

Terms To Know

Bond: Money or other security that contractors must provide to protect against losses.
Registrar: A person in charge of keeping records for the Contractors State License Board.

Limits and Unknowns

Does not specify when this new rule about legal fees and costs will take effect.
Doesn't explain how much money might be involved with these deposits.

Bill History

2025-10-03 California Legislative Information
Chaptered by Secretary of State - Chapter 265, Statutes of 2025.
2025-10-03 California Legislative Information
Approved by the Governor.
2025-09-02 California Legislative Information
Enrolled and presented to the Governor at 3 p.m.
2025-08-26 California Legislative Information
In Assembly. Ordered to Engrossing and Enrolling.
2025-08-25 California Legislative Information
Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2250.).
2025-08-20 California Legislative Information
Read second time. Ordered to Consent Calendar.
2025-08-19 California Legislative Information
From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.
2025-07-09 California Legislative Information
In committee: Hearing postponed by committee.
2025-06-25 California Legislative Information
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.
2025-06-09 California Legislative Information
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.
2025-05-14 California Legislative Information
Referred to Coms. on B. P. & E.D. and JUD.
2025-05-01 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2025-05-01 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 1386.)
2025-04-24 California Legislative Information
Read second time. Ordered to Consent Calendar.
2025-04-23 California Legislative Information
From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (April 23).
2025-04-08 California Legislative Information
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.
2025-04-01 California Legislative Information
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.
2025-02-24 California Legislative Information
Referred to Coms. on B. & P. and JUD.
2025-02-11 California Legislative Information
From printer. May be heard in committee March 13.
2025-02-10 California Legislative Information
Read first time. To print.

Official Summary Text

AB 521, Carrillo.
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 cashier’s 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.

Current Bill Text

Read the full stored bill text

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