California Code of Regulations › Title 16 - Professional and Vocational Regulations › Division 8 - Contractors' State License Board › Article 6 - Bonds › Section 858.2 - Application for Approval of Blanket Performance and Payment Bond

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A licensee
				seeking approval of a blanket bond shall meet the applicable conditions
				specified under this Article and submit to the Board an Application for
				Approval of Blanket Performance and Payment Bond, form 13B-35 (rev. 9/2022),
				that includes the following information:
(1)
				The name and address of the licensee as listed on the license record and the
				license number.
(2) The name of
				every person listed on the license record of the applicant who, as specified
				under Section
				7068 of the Code, is acting as a
				qualifier for the license.
(3) The
				reviewed year-end financial statements and a report prepared by a certified
				public accountant (CPA) duly licensed by the California Board of Accountancy or
				licensed by another state board of accountancy. The reviewed financial
				statements shall include supplemental information related to the liquidity
				ratios of the licensee's business and shall particularly include the current
				ratio and the quick ratio, the calculations for which are specified under
				subparagraphs (A) and (B) below. The review report, or a separate supplementary
				report, shall include an explanation that the information has been subject to
				the review of the CPA. The review report shall cover the two fiscal years
				immediately preceding application for approval of the blanket bond and should
				be prepared in accordance with the current Statements of Standards for
				Accounting and Review Services issued by the American Institute of Certified
				Public Accounts.
(A) Current ratio
				calculation: current assets; divided by current liabilities.
(B) Quick ratio calculation: current assets
				minus inventory; divided by current liabilities.
(4) A certification statement, signed under
				penalty of perjury by the qualifier for the license, that shall conform to the
				following language:
QUALIFIER'S CERTIFICATION STATEMENT
(Unless otherwise noted, all section references are to
				  the California Business and Professions Code.)
The undersigned declares that, in accordance with Sections
				  7068 and
				  7068.1 of the Code, they are a
				  qualifier for the licensee identified below (hereafter referred to as
				  "licensee") and are responsible for exercising the direct supervision and
				  control of the licensee's operations as is necessary to secure full compliance
				  with the laws and regulations that are under the jurisdiction of the
				  Contractors State License Board. As a qualifier of the licensee, the
				  undersigned has reviewed sufficient financial information to execute this
				  certification as it pertains to the licensee's home improvement sales and
				  services that are subject to the home improvement contract requirements
				  specified under Section
				  7159 of the Code. As of close of
				  business on (Date) ____________________, the blanket performance and payment
				  bond (bond) number (Bond Number) ____________________ issued by (Name of Surety
				  Company) ___________________________________ as Surety is, according to the
				  qualifier's comprehension of the data derived from the licensee, in an
				  aggregate amount that is sufficient to comply with the "100% rule" as specified
				  in the provisions of Section
				  858.1 of Title 16, Division 8 of
				  the California Code of Regulations.
The undersigned also certifies that they will monitor the
				  relevant business activity of the licensee, exercise due diligence to secure
				  ongoing compliance with the 100% rule, and notify the Registrar within 30 days
				  of the licensee's refusal, failure, or inability to comply with the 100%
				  rule.
The undersigned also certifies that, upon approval of the
				  blanket bond by the Registrar, the contract forms that will be used by the
				  licensee for all transactions that are subject to Section
				  7159 of the Code will contain a
				  notice that informs the property owner that a blanket performance and payment
				  bond is on file with the Registrar of Contractors, or in lieu thereof, a notice
				  that clearly identifies the name and address of the Surety that has issued the
				  blanket performance and payment bond.
As a qualifying individual for the licensee, the undersigned
				  declares under penalty of perjury under the laws of the State of California
				  that the foregoing is true and correct and that this declaration was executed
				  on (Date) _______________ at (City and State) ______________________________,
				  _____.
_________________________________________________________
(Name of Licensee as it Appears on the
						  License)
(License Number)
_________________________________________________________
(Printed Name of Qualifier)
(Signature of Qualifier)