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

Assembly Member Carrillo's proposal to modify California's contractor bonding regulations would exempt the Contractors State License Board (CSLB) from liability for legal fees in actions involving contractor deposits, regardless of when those deposits were filed with the registrar.

The measure builds upon existing law that requires licensed contractors to maintain surety bonds or approved deposits with the CSLB. While current statute prohibits the board from charging legal fees against certain deposits, this amendment would extend that protection by establishing that the CSLB cannot be held liable for any legal fees or costs in actions involving authorized deposits, eliminating previous timing-based distinctions.

The bill maintains other key elements of the current bonding system, including requirements that contractors replace alternative deposits with surety bonds or approved deposits, procedures for civil actions against deposits, and established timelines for wage-related claims. The measure preserves existing processes for handling claims through the Labor Commissioner while providing additional clarity around the board's immunity from legal fee liability.