Surety Bond

In California, Residential Care Facilities Licensed by the Dept. of Public Health or The Dept. of Social Services are required obtain a surety bond to ensure safe handling of client funds. This is stipulated in the Health and Safety Code Section 1560-1565. This section shall not apply if the licensee handles money of residents of the facility in amounts less than fifty dollars ($50) per person and less than five hundred dollars ($500) for all persons in any month, or if the licensee operates a community care facility which is licensed to care for children including, but not limited to, a foster family home. The bond amount is to be fixed by the State Department based upon the magnitude of the operations of the applicant, but which sum shall not be less than one thousand dollars ($1,000), running to the State of California and conditioned upon his or her faithful and honest handling of the money of persons within the facility.