If passed, New York AB 595 would require home improvement contractors to register and post a license bond in an amount based on the volume of the contractor’s business in the 12 months prior to registering. The following stipulations are included in the text of the bill.
- Contractors with home improvement contracts not exceeding a total cash value of $500,000 would need a $10,000 surety bond.
- Contractors with a total value of $500,000 to $1 million would need a $25,000 surety bond.
- Contractors with a total value exceeding $1 million would need a $50,000 surety bond.
Ultimately, the New York surety bond would be conditioned on the payment of judgments against the contractor resulting from a breach of his or her contracts.
Read AB 595 in its entirety here.
AB 595 was referred to the Assembly Consumer Affairs and Protection Committee on January 9, 2013. Sponsored by New York assemblymen Jeffrey Dinowitz and Dennis Gabryszak, the bill is currently pending approval.