Opinion No. 66-130
December 6, 1966
TO: Mr. David McNeill, Registrar, Contractor's License Board, P. O. Box 580, Santa Fe, New Mexico
QUESTION
QUESTION
Does a contractors' license bond provide for the payment of fringe benefits to employees of a licensed contractor who cannot pay such benefits?
CONCLUSION
Yes.
OPINION
{*173} ANALYSIS
Your attention is invited to the 1966 amendment of the bonding section, Section 67-16-21 of the Contractors' License Law, N.M.S.A., 1953 Compilation, (1966 Interim Supplement) which is set forth in applicable part as follows:
E. The bond or agreement of cash collateral assignment shall be for the benefit of:
(1) any person damaged as a result of a violation by a licensee or applicant of the Contractors' License Law;
(2) any person damaged as a result of a violation by a licensee of the Uniform Building Code as adopted by the contractors' license board;
(3) any person damaged by a fraud of a licensee or applicant, which fraud has been established in a court of competent jurisdiction, in the execution or performance of a contract. For the purpose of this subsection, fraud shall include, but not be limited to, the acceptance of payment on a contract without paying to material suppliers a proportionate amount of the payment; and
(4) any employee of the licensee damaged by the licensee's failure to pay wages or fringe benefits. (Emphasis supplied.)
The underscored portion of the statute cited above expressly provides that the contractors' license bond is for the benefit of any employee of a licensed contractor who is damaged by the contractor's failure to pay him wages or fringe benefits.