SECTION 1.  Chapter 142A of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after section 11 the following section:-

“Section 11A.  Applications for contractor or subcontractor shall be accompanied by a bond in the amount of $10,000 and executed by a surety company authorized to transact business in this state as surety on the bond, with the applicant as Principal on the bond and the state of Massachusetts as obligee.  The bond shall be in addition to any fee to the guaranty fund in accordance with section 11.  In the event of any claim, the claim must first be paid by the bond and then a claim may be submitted to the guarantee fund.

The bond shall be for the benefit of the state of Massachusetts and its consumers, dealing with the applicant, conditioned that the applicant shall faithfully perform the duties and in all things comply with the laws, rules or regulations pertaining to the profession or any contracts entered into or losses or damages sustained by the consumer. Payment shall be made upon receipt of a final judgment entered into by a court of competent jurisdiction in the state.

The aggregate liability of the surety, regardless of the number of claims made against the bond or the number of years the bond remains in force, shall in no event exceed the amount of the bond.  Revisions of the bond shall not be cumulative.  The bond may be terminated at any time by the surety upon sending 30 days notice in writing to the state of Massachusetts and to the Principal.”

SECTION 2.  This act shall take effect upon passage.