(1) Before commencing work or undertaking to perform any services or duties in the state, a contractor shall file with the Contractors Licensing Board as the depository agency a surety bond of a surety authorized to do business in this state or a cash bond.
(2) The bond shall be a condition of licensure, and a contractor's license shall not be released until the bond has been properly filed.
(3) The bond shall be: In a penal sum of ten thousand dollars ($10,000);
(4) Payable to the State of Arkansas; and
(5) Conditioned on the contractor's complying with the tax laws of the State of Arkansas and, when applicable, the ordinances, rules, and regulations of any city, county, school district, state agency, or other political subdivision of the state, the Division of Workforce Services Law, § 11-10-101 et seq., the Workers' Compensation Law, § 11-9-101 et seq., and the provisions of this subchapter.