SB 392 Summary

• Authorizes the Contractors' State License Board to issue contractor licenses to limited liability companies (LLCs) beginning January 1, 2012, with qualifying individuals serving as responsible managing officers, managers, members, or employees.

• Requires LLCs to maintain a $100,000 surety bond for employee wage and fringe benefit protection and liability insurance with aggregate limits ranging from $1 million to $5 million depending on personnel size.

• Establishes personal liability up to $1 million for LLC members during license suspension periods when the company fails to maintain proper registration with the Secretary of State.

• Permits contractor license numbers to be reissued or reassigned to LLCs in various circumstances, including mergers, subsidiaries, asset sales, and family business continuations; expands definition of immediate family members to include fathers and mothers.

• Makes various conforming changes throughout the Contractors' State License Law to treat LLCs similarly to corporations and partnerships, including restrictions on unlicensed operation by former LLC personnel and disciplinary provisions.