(A) If an applicant is required to provide proof of a bond in order to receive a license pursuant to this chapter, the bond must:
(1) be payable for losses because of defective construction or performance by the bond principal or the principal's agents operating in the course and scope of the principal's agency; and
(2) be cancelable only upon thirty days' written notice to the board; and
(3) provide that cancellation does not affect any liability on the bond that accrued before cancellation; and
(4) be subject to claims as authorized by subsection (B); and
(5) be approved by the board as to form, execution, and sufficiency of the surety.
(B) If proof of a bond is required for licensure by this chapter, the requirement may be satisfied by proof that:
(1) the applicant maintains a current bond in his own name that is in compliance with the requirements of subsection (A);
(2) the applicant is a bona fide employee of a corporation that maintains a current bond in the corporate name that is in compliance with the requirements of subsection (A); or
(3) the applicant is a bona fide employee of a licensed well driller who maintains a current bond in the employer licensee's name that is in compliance with the requirements of subsection (A).
(C) After a hearing the board may initiate claims on the bond of any licensee for the cost of remediation or abatement of deficiencies or losses found to be the responsibility of the licensee. Claims are limited to actual damages and may not include attorney's fees or consequential or punitive damages. Claims may also be initiated upon the bond by the Department of Health and Environmental Control for remediation of deficiencies or losses determined, in accordance with that agency's procedures, to be the responsibility of a licensee.
HISTORY: 2002 Act No. 185, Section 1.
Editor's Note
Prior Laws:2000 Act No. 322, Section 6; 2000 Act No. 325, Section 5.