California to Increase Bond Limits for Contractors and RMOs Starting 1/1/2023

Starting January 1st, 2023, the Contractors State License Board of California will increase all bond limits from $15,000 to $25,000. This includes contractor license bonds and RMO bonds in the state. The change comes as part of Senate Bill 607, signed into law in late September 2021. Chapter 361, Statute of 2021 of the California legal code outlines the bill’s specifics. The purpose of this bill is to protect consumers and ensure that contractors have enough financial backing to complete a project. If you are a contractor or RMO doing business in California, factor this change into your budget!


An increase is required for in-force contractors’ bonds to meet the $25,000 limit on 1/1/2023. In speaking with most surety companies, they will automatically increase the bond and invoice for the difference in premium. If the invoice is not paid, the surety company will shorten the term rather than cancel the bond. It’s essential to keep in mind that if the surety company sets your bond to expire sooner, you will need to renew sooner. If the term of your bond changes, we will update your file to ensure we reach out regarding your new renewal date. Of course, we will need to first receive the update from the surety company to make the change to your file.


The CSLB will provide a 90-day grace period for all affected contractors to submit the necessary paperwork and updated bond. After the grace period, if a contractor does not have the required bond in place, their license may be suspended. However, the previous automatic increase and filing should prohibit this from happening.


If you have any questions or need help increasing your bond, our agency team can help. We are dedicated to assisting contractors navigating the licensing process and staying compliant with the latest rules and regulations. Call us at (858)384-1506 or visit our website.

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