California revises surety bond requirement for construction trucking service brokers

construction trucking service brokers

After months of discussion, Gov. Jerry Brown approved Senate Bill 1092, which revised existing surety bond requirements for construction trucking service brokers in California. The bill was signed into law on September 23, 2012, and it will go into effect on January 1, 2013.

For the past two years, brokers of construction trucking services have been required to post a minimum $15,000 California surety bond to ensure that contracted subhaulers whose services were brokered received payment without fail. According to the law, failure to secure the required bond is a misdemeanor and can result in as much as a $5,000 fine. Despite these penalties, California construction truckers — especially the California Construction Trucking Association — have been concerned that unethical brokers will disregard the requirements, ultimately costing truckers the payment they’ve earned.

To prevent this, the new law requires that brokers disclose a copy of their surety bond annually. This will help subcontracted construction truckers know upfront if the broker they are working with is bonded and, as a result, if they will be protected in the event that they do not receive payment for their services from the broker.

If you need a surety bond in the state of California, contact online or by phone at 1 (800) 308-4358 to speak with an expert surety specialist. After gathering the necessary information, your account manager will provide you with a free, no-obligation price quote for your bond. If you choose to proceed with the bonding process, your bond will be issued as soon as payment is received.

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