California Code of Regulations
Title 16 - Professional and Vocational Regulations
Division 8 - Contractors' State License Board
Article 6 - Bonds
Section 858.8 - Rescission of Blanket Performance and Payment Bond Approval

(a) The Registrar may rescind the approval of any blanket bond (also referenced as "approval rescission" under this section) if any provision or condition specified under this Article is not satisfied.

(b) To rescind the approval of a blanket bond, the Registrar shall send written notice by certified and regular mail to the licensee's address of record that specifies the date of and the reasons for the Registrar's decision to rescind approval of the blanket bond. When appropriate, the notice shall also contain the conditions that must be met to prevent the rescission.

(c) The rescission shall, as of the date specified, extinguish the licensee's authorization to use the blanket bond in satisfaction of the provisions under subsection (a)(8) of Section 7159.5 of the Code.

(d) The licensee shall be given not less than 30 days notice prior to the effective date of the rescission of the blanket bond. Prior to the effective date of the rescission, the licensee may file a written appeal of the rescission of the blanket bond with the Registrar. A written appeal is considered timely if it is postmarked prior to the date the rescission would otherwise become effective. Where a rescission is not appealed timely, the blanket bond shall be rescinded on the effective date specified by the Registrar. If the rescission is appealed timely, the effective date of the rescission shall be delayed until a decision on the appeal is issued, and a notice regarding the appeal and the pending decision of the Registrar shall be posted as specified under subsection (b) of Section 858.9.

(e) Upon cancellation of the blanket bond, the Registrar's approval shall be automatically rescinded effective on the date of the cancellation.

(f) Upon the effective date of the Registrar's approval rescission, the licensee shall be subject to and comply with the provisions of subsections (a)(3), (4), and (5) of Section 7159.5 of the Code and shall, in addition to complying with all other requirements specified under Section 7159 of the Code, include the Mechanics' Lien Warning disclosure as part of all home improvement contracts that are subject to that section.