On behalf of the National Association of Surety Bond Producers (NASBP), a national trade association of firms employing professional surety bond producers licensed and conducting business in California, we are very concerned about the substantial negative impact that Senate Bill Number 616 will engender. SB 616 amends § 9550 and 9550.1 of the California Civil Code by waiving payment bonds for small and micro businesses on public works contracts that are less than $1 million for the Los Angeles Unified School District (District). In order for the payment bond to be waived, the small/microbusiness is required to participate in the District’s “self-insurance program.”
Topic
Advocacy, Payment Bond, Small and Disadvantaged Business Matters
Publish Date
April 10, 2013
Region
California, States
Audience
Agents, Owners, Sureties
Resource Type
Comment Letter, Resource Map
NASBP Letter Addressing Locality Requirements in VA Bid Bond