Cal. Code Regs. Tit. 3, § 6524 - Financial Responsibility of Applicants for an Agricultural Pest Control Business License

(a) Each applicant shall demonstrate financial responsibility in connection with the obtaining and maintenance of an agricultural pest control business license pursuant to Article 1 of Chapter 4 (beginning with Section 11701) of Division 6 of the Food and Agricultural Code as follows:

(1) File with the Department an original certificate of insurance (Form number DPR-PML-052, Rev. 8/11, entitled "Certificate of Insurance") certifying insurance coverage for the operations involved for an annual period in an amount not less than that specified in an in accordance with the provisions of (c). The certificate shall be provided by the Director and issued by the insurer. Within 10 days of expiration of the insurance policy(s) identified by the certificate, applicants who have been licensed by the Director, shall file a new certificate [identifying the current policy(s)] with the Department. For insurance covering aircraft, the certificate shall specify the N number(s) of the aircraft covered by the insurance for chemical liability; or,

(2) Deposit with the Director a certificate of deposit issued (by a licensed financial institution doing business in California) and maintained under the following conditions:

(A) The principal amount of the certificate of deposit at time of issuance is not less than that specified in and in accordance with the provisions of (c);

(B) The Director is given express authority to withdraw any part or all of the funds required to satisfy a final judgment of a California or Federal court based upon violation of the provisions of Food and Agricultural Code Division 6, and Division 7 pertaining to pesticides, and regulations issued pursuant to those provisions;

(C) The Director is given express authority to withdraw any part or all of the funds and deposit the funds in court in an interpleader action in any circumstance where it appears to the Director that there may be multiple judgments involving violation of the laws and regulations specified in (B) and such funds may be called upon to satisfy such judgments; and

(D) If any part of the funds are withdrawn as provided in (B) and (C), an additional certificate of deposit shall be filed with the Director so that the remaining funds, if any, of the initial certificate of deposit and the principal amount of the additional certificate of deposit equal the principal amount of the initial certificate of deposit at the time of its issuance; or

(3) Deposit with and on a form provided by the Director a surety bond (Form number DPR-PML-053, Rev. 8/11 entitled "Pest Control Business Licensees Bond") issued by a bonding company doing business in California in an amount not less than that specified in and in accordance with the provisions of (c).

(b) Applicants electing to show financial responsibility by a certificate of deposit as specified in (a)(2) shall assign the certificate to the Director and shall maintain the certificate and not be entitled to withdraw the funds for two years after termination of the license or until all claims filed against the licensee are satisfied, whichever occurs later.

(c) Applicants may show financial responsibility by liability insurance which covers chemical bodily injury and chemical property damage or by a certificate of deposit or a surety bond to cover chemical bodily injury and chemical property damage in the amounts specified below:

Liability Insurance
Type of Pest Control Operations	Bodily Injury Per Person	Bodily Injury Per Occurrence	Property Damage	Certificate of Deposit or Surety Bond
Agricultural pest control business license applicants who make applications by ground rigs or who make fumigations	$100,000/300,000/50,000			$75,000
Agricultural pest control business license applicants who make applications by aircraft	$100,000/300,000/100,000 per aircraft; property damage aggregate: one-half the property damage limit times the number of insured aircraft, where more than one aircraft is insured.			$50,000 per aircraft but not to exceed $300,000 per business license
Applicants for an agricultural pest control business license in the maintenance gardener category; in lieu of insurance, a certificate of deposit,or surety bond, these applicants may provided a statement to the Director under penalty of perjury that as to chemical bodily injury and chemical property damage resulting from their pest control operations they are financially able to respond in damages using their own personal assets	$5,000/10,000/5,000			$5,000

(d) Applicants whose business involves applications by aircraft and who elect to show financial responsibility by a certificate of deposit or a surety bond shall file with and on a form provided by the Director (Pest Control Business Licensees Bond Form DPR-PML-053, Rev. 8/11), with a list of the applicant's aircraft including their N numbers and their usages.

(e) Aircraft which is covered by liability insurance only for nonchemical bodily injury and nonchemical property damage shall not be operated for pesticide application purposes, unless the pest control business using the aircraft has deposited with the Director, as specified in (a)(2) and (a)(3), a certificate of deposit or a surety bond for that aircraft in the amount specified in (c).

(f) Applicants who make applications by aircraft and ground rigs shall meet the financial responsibility requirements of this section for both the aircraft and ground rig types of pest control operations.

Notes

Cal. Code Regs. Tit. 3, § 6524

1. New section filed 9-19-88; operative 9-19-88 (Register 88, No. 39).
2. Change without regulatory effect amending NOTE filed 6-20-2001 pursuant to section 100, title 1, California Code of Regulations (Register 2001, No. 25).
3. Change without regulatory effect amending subsections (a)(1), (a)(3) and (d) filed 11-10-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 45).
4. Change without regulatory effect amending subsection (a)(1) filed 6-10-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 24).

Note: Authority cited: Sections 11456, 11502 and 11702, Food and Agricultural Code. Reference: Sections 11501 and 11702, Food and Agricultural Code.

1. New section filed 9-19-88; operative 9-19-88 (Register 88, No. 39).
2. Change without regulatory effect amending Note filed 6-20-2001 pursuant to section 100, title 1, California Code of Regulations (Register 2001, No. 25).
3. Change without regulatory effect amending subsections (a)(1), (a)(3) and (d) filed 11-10-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 45).
4. Change without regulatory effect amending subsection (a)(1) filed 6-10-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 24).