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.