California Business and Professions Code Section 7071.6.5
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California Laws > Business and Professions Code > California Business and Professions Code Section 7071.6.5
7071.6.5. (a) The board shall require, as a condition precedent to
the issuance, reissuance, reinstatement, reactivation, renewal, or
continued valid use of a limited liability company license, that the
applicant or licensee file or have on file a surety bond in the sum
of one hundred thousand dollars ($100,000).
(b) The bond required by this section shall be executed by an
admitted surety in favor of the State of California, in a form
acceptable to the registrar and filed with the registrar,
electronically or otherwise, by the applicant or licensee.
(c) The bond required by this section shall be for the benefit of
any employee damaged by his or her employer's failure to pay wages,
interest on wages, or fringe benefits and is intended to serve as an
additional safeguard for workers employed by or contracted to work
for a limited liability company.
(d) If an applicant or licensee subject to subdivision (a) is also
a party to a collective bargaining agreement, the bond required by
this section shall also cover, in addition to the coverage described
in subdivision (c), welfare fund contributions, pension fund
contributions, and apprentice program contributions.
(e) The bond required by this section shall not be applicable to a
licensee whose license has been inactivated on the official records
of the board during the period the license is inactive.
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Last modified: March 17, 2014