2007 California Labor Code Article 4. Bond Requirements And Fees

CA Codes (lab:1701.10)

1701.10.  (a) Prior to engaging in the business or acting in the
capacity of an advance-fee talent service, a person shall file with
the Labor Commissioner a bond in the amount of ten thousand dollars
(,000) or a deposit in lieu of the bond pursuant to Section
995.710 of the Code of Civil Procedure.  The bond shall be executed
by a corporate surety qualified to do business in this state and
conditioned upon compliance with this chapter.  The total aggregate
liability on the bond shall be limited to ten thousand dollars
(,000).  The bond may be terminated pursuant to Section 995.440
of, or Article 13 (commencing with Section 996.310) of Chapter 2 of
Title 14 of Part 2 of, the Code of Civil Procedure.
   (b) The bond required by this section shall be in favor of, and
payable to, the people of the State of California and shall be for
the benefit of any person damaged by any fraud, misstatement,
misrepresentation, unlawful act or omission, or failure to provide
the services of the advance-fee talent service while acting within
the scope of that employment or agency.
   (c) The Labor Commissioner shall charge and collect a filing fee
to cover the cost of filing the bond or deposit.
   (d) The Labor Commissioner shall enforce the provisions of this
chapter that govern the filing and maintenance of bonds and deposits.

   (e) (1) Whenever a deposit is made in lieu of the bond otherwise
required by this section, the person asserting the claim against the
deposit shall establish the claim by furnishing evidence to the Labor
Commissioner of a money judgment entered by a court, together with
evidence that the claimant is a person described in subdivision (b).

   (2) When a claimant has established the claim with the Labor
Commissioner, the Labor Commissioner shall review and approve the
claim and enter the date of the approval thereon.  The claim shall be
designated an approved claim.
   (3) When the first claim against a particular deposit has been
approved, it shall not be paid until the expiration of a period of
240 days after the date of its approval by the Labor Commissioner.
Subsequent claims that are approved by the Labor Commissioner within
the same 240-day period shall similarly not be paid until the
expiration of that 240-day period.  Upon the expiration of the
240-day period, the Labor Commissioner shall pay all approved claims
from that 240-day period in full unless the deposit is insufficient,
in which case every approved claim shall be paid a pro rata share of
the deposit.
   (4) Whenever the Labor Commissioner approves the first claim
against a particular deposit after the expiration of a 240-day
period, the date of approval of that claim shall begin a new 240-day
period to which paragraph (3) applies with respect to any amount
remaining in the deposit.
   (5) After a deposit is exhausted, no further claims shall be paid
by the Labor Commissioner.  Claimants who have had claims paid in
full or in part pursuant to paragraph (3) or (4) shall not be
required to return funds received from the deposit for the benefit of
other claimants.
   (6) Whenever a deposit has been made in lieu of a bond, the amount
of the deposit shall not be subject to attachment, garnishment, or
execution with respect to an action or judgment against the assignor
of the deposit, other than as to an amount as no longer needed or
required for the purposes of this chapter and that would otherwise be
returned to the assignor of the deposit by the Labor Commissioner.
   (7) The Labor Commissioner shall return a deposit two years from
the date it receives written notification from the assignor of the
deposit that the assignor has ceased to engage in the business or act
in the capacity of an advance-fee talent service or has filed a bond
pursuant to subdivision (a), provided that there are no outstanding
claims against the deposit.  The written notice shall include all of
the following:
   (A) The name, address, and telephone number of the assignor.
   (B) The name, address, and telephone number of the bank at which
the deposit is located.
   (C) The account number of the deposit.
   (D) A statement that the assignor is ceasing to engage in the
business or act in the capacity of an advance-fee talent service or
has filed a bond with the Labor Commissioner.  The Labor Commissioner
shall forward an acknowledgement of receipt of the written notice to
the assignor at the address indicated therein, specifying the date
of receipt of the written notice and the anticipated date of release
of the deposit, provided there are then no outstanding claims against
the deposit.
   (8) A superior court may order the return of the deposit prior to
the expiration of two years upon evidence satisfactory to the court
that there are no outstanding claims against the deposit, or order
the Labor Commissioner to retain the deposit for a specified period
beyond the two years to resolve outstanding claims against the
deposit.
   (9) This subdivision applies to all deposits retained by the Labor
Commissioner.  The Labor Commissioner shall notify each assignor of
a deposit it retains and of the applicability of this section.
   (10) Compliance with Sections 1700.15 and 1700.16 of this code or
Section 1812.503, 1812.510, or 1812.515 of the Civil Code shall
satisfy the requirements of this section.