Bill Text: CA SB662 | 2013-2014 | Regular Session | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Structural pest control operators: financial responsibility.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-09-06 - Chaptered by Secretary of State. Chapter 218, Statutes of 2013. [SB662 Detail]

Download: California-2013-SB662-Enrolled.html

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BILL NUMBER: SB 662	ENROLLED
	BILL TEXT

	PASSED THE SENATE  MAY 9, 2013
	PASSED THE ASSEMBLY  AUGUST 22, 2013

INTRODUCED BY   Senator Galgiani

                        FEBRUARY 22, 2013

   An act to amend Sections 8690, 8691, 8692, 8697, and 8697.3 of,
and to repeal Sections 8693 and 8697.5 of, the Business and
Professions Code, relating to structural pest control operators.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 662, Galgiani. Structural pest control operators: financial
responsibility.
   Existing law requires, in order to be allowed to do business in
this state, that structural pest control operators file with the
Structural Pest Control Board written evidence of an insurance policy
approved by the board or a bond, as specified, in effect at the time
of the issuance of the company's registration by the board. The
insurance policy is required to provide minimum limits of $25,000 for
any one loss due to bodily injury, sickness, or disease, including
death, sustained by a person, and $25,000 minimum for any one loss
due to injury or destruction of property, including loss of use. A
violation of the financial responsibility provisions for structural
pest control operators is a crime.
   This bill would delete the option of obtaining a bond, in order to
be issued registration by the board, to do business as a structural
pest control operator. The bill would delete the requirement that
written evidence of an insurance policy be filed, and increase the
minimum limits for the insurance policy to $500,000. Because the bill
would expand the scope of a crime, it would create a state-mandated
local program.
   Existing law requires structural pest control operators to
maintain a surety bond in the amount of $4,000 in order to maintain
its license or company registration. If a structural pest control
operator's license or company registration is suspended or revoked,
on specified grounds, the registrar of the board shall require the
applicant, licensee, or registered company, as a condition of the
issuance, reissuance, or restoration of the license or company
registration, to file a surety bond in a sum to be determined by the
registrar based upon the seriousness of the violation, but not less
than $1,000 nor more than $8,000.
   This bill would raise the amount of the surety bond, needed to
maintain the license or company registration, from $4,000 to $12,500,
and would raise the upper limits of the amount of the surety bond
required for an issuance, reissuance, or restoration of the license
or company registration, after a suspension or revocation, from
$8,000 to $25,000.
   This bill would also make conforming changes.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8690 of the Business and Professions Code is
amended to read:
   8690.  The board shall not issue any company registration under
this chapter unless the applicant shall have filed with the board on
a form prescribed by the board evidence of an insurance policy
approved by the board as specified in this article, being in effect
at the time of the issuance of the company registration. This
evidence shall include a provision that the board shall be given a
10-day notice by the insurance company should the policy be canceled
or changed during the policy period in a manner as to affect the
evidence. Another method of deposit, including a certificate of
deposit, or other undertaking shall not satisfy this requirement.
  SEC. 2.  Section 8691 of the Business and Professions Code is
amended to read:
   8691.  A registered company shall not engage in the practices for
which it is required to be registered by this chapter unless it
maintains an insurance policy as specified in this article.
  SEC. 3.  Section 8692 of the Business and Professions Code is
amended to read:
   8692.  (a) An "insurance policy" as used in this article means a
contract of liability insurance issued by an insurance company
authorized to transact business in this state or one issued by a
nonadmitted carrier whose activities in this state are controlled by
the Surplus Line Association, which insures the policyholder against
loss from legal liability for damages on property upon which work is
being performed or has been completed, including third-party losses,
as a result of an accident or occurrence due to participation in
control, prevention, or repair activities that require a license
under this chapter. The insurance policy shall provide minimum limits
of five hundred thousand dollars ($500,000) for any one loss due to
bodily injury, sickness, or disease, including death at any time
resulting therefrom, sustained by any person, and five hundred
thousand dollars ($500,000) minimum for any one loss due to injury or
destruction of property, including the loss of use of the property.
   (b) This section shall not be construed to require errors and
omissions insurance for all activities relating to or during
inspections, inspection reports, recommendations, estimates, and
bids, whether oral or written.
  SEC. 4.  Section 8693 of the Business and Professions Code is
repealed.
  SEC. 5.  Section 8697 of the Business and Professions Code is
amended to read:
   8697.  Each company registered under the provisions of this
chapter shall maintain a bond executed by an admitted surety insurer
in the amount of twelve thousand five hundred dollars ($12,500).
Another method of deposit, including a certificate of deposit, or
other undertaking shall not satisfy this requirement.
  SEC. 6.  Section 8697.3 of the Business and Professions Code is
amended to read:
   8697.3.  (a) If, after a hearing conducted in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code, a license or company registration is
suspended or revoked upon the grounds set forth in Article 7
(commencing with Section 8620), the registrar shall require the
applicant, licensee, or registered company, as a condition to the
issuance, reissuance, or restoration of the license or company
registration, to file a surety bond in the sum to be determined by
the registrar based upon the seriousness of the violation, but the
sum shall not be less than one thousand dollars ($1,000) nor more
than twenty-five thousand dollars ($25,000).
   (b) The bond required by this section shall be in addition to the
bond required by Section 8697 of this article.
   (c) Each applicant, licensee, or registered company required to
maintain a bond of the type provided in this section shall post the
bond with the registrar for a period of at least two years and during
the additional time as there may be unsatisfied claims outstanding
against the same.
  SEC. 7.  Section 8697.5 of the Business and Professions Code is
repealed.
  SEC. 8.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.