Monthly Archives: November 2010

CSLB Reports: More Than One Dozen Phony Contractors Caught in San Rafael Sting

Undercover operation highlights importance of checking the license first
SACRAMENTO – Thirteen people will be in Marin County Court next month for arraignment on charges related to contracting without a license. These unlicensed operators were caught this week in a two-day undercover sting conducted by the Contractors State License Board’s (CSLB) Statewide Investigative Fraud Team (SWIFT), along with investigators from the Marin County District Attorney’s Office.
On November 9-10, 2010, SWIFT investigators posed as homeowners seeking bids for fencing, landscaping, concrete, painting, sheet metal, and drywall work at a home in San Rafael. Suspects who bid more than $500 for labor and materials received a Notice to Appear (NTA) in court. California law requires all home improvement jobs valued at more than $500 to be undertaken by a licensed contractor. Contractors also must place their state contractor license number in all advertisements. Unlicensed individuals may advertise and accept jobs valued at less than $500, but their ads must state that they are not a licensed contractor.
Fraudulent use of an incorrect license number (Business & Professions Code Section 7027.3) is punishable by fines of up to $10,000 and/or time in state prison or up to one year in county jail. Misdemeanor contracting without a license (B&P §7028) is punishable by up to $5,000 in fines and/or up to six months in county jail.
“This sting operation underscores the importance of consumers asking to see a contractor’s pocket license card and photo identification to make sure the license is issued to that individual,” said CSLB Registrar Steve Sands. “Consumers can check the license number or contractor or business name on the CSLB website or toll-free phone line to verify the status of the license and to assure the licensee has workers’ compensation insurance.
State law requires that licensees have workers’ compensation coverage to protect property owners from liability, unless they certify they have no employees and receive an exemption. The law requires roofing contractors to carry a workers’ compensation policy for themselves even if they do not have employees.
Suspects who received NTAs will be arraigned at Marin County Superior Court at 3501 Civic Center Drive on December 3, 2010.

CSLB urges consumers to remember the following tips when hiring a contractor:
• Verify the contractor’s license by checking online at www.cslb.ca.gov, or via CSLB’s automated phone system at 1-800-321-CSLB (2752).
• Ask to see the person’s identification to make sure you are dealing with the correct individual.
• Don’t pay more than 10% down or $1,000, whichever is less. There is an exception to this for about two dozen contractors who purchase special bonds that are noted on CSLB’s website.
• Don’t pay in cash, and don’t let the payments get ahead of the work.
• Check references, and get at least three bids and a written contract before your project begins.
• Make sure your contractor obtains the necessary building permits for any project. If you are unsure of these requirements, contact your local building department.

STEPS TO BECOMING A LICENSED CONTRACTOR IN CALIFORNIA:What You Need To Know

What You Need To Know About Becoming A Licensed Contractor


Wondering how to become a Licensed Contractor or if you need to be Licensed? The following are the top questions we hear and answer guiding you and our students through becoming a Licensed Contractor successfully.

Who can become a licensed contractor?
A licensed contractor must be 18 years of age or older and have the experience and skills necessary to manage daily activities of a construction business, including field supervision, or be represented by a qualifying individual with the necessary experience and skills.

Who must be licensed as a contractor?
All businesses or individuals, who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in California, must be licensed by the California Contractors State License Board if the total cost (labor and materials) of one or more contracts on the project is $500 or more. Contractors must be licensed before submitting bids.

How much does a license cost?
In addition to the financial requirements that must be met, it costs $250 for an original application fee (nonrefundable) and $150 for the initial license fee for one classification. The license must be renewed every two years. Currently, the renewal fee is $300.

How can you apply?
The Application for Original Contractor’s License is available at any office of the Contractors State License Board. It is also possible to order or download an application form from our Website, www.cslb.ca.gov, call the CSLB’s 24-hour automated information line, (800) 321-CSLB (2752), or write to the CSLB, at: P.O. Box 26000, Sacramento, CA 95826, to request an application.

What kind of experience is required?
At least four years of journey-level experience is required to qualify for the exam. Credit is given for experience as a journeyman, foreman, supervising employee, contractor, or owner-builder.

What are the other requirements?
All applicants must be fingerprinted and undergo a criminal background check before a license is issued at an additional cost to the applicant.

Is there an examination requirement for a contractor’s license?
Yes, the qualifying individual for a contractor’s license is required to pass law and trade examinations, unless he or she meets the requirements for a waiver. An examination notice will be sent at least three weeks prior to the examination date.

Is school necessary?
Although there are no educational requirements to qualify for a contractor’s license, it is highly encouraged to seek assistance from a school that specializes in helping students pass the Contractor State License Board Exam.

For more detailed information on becoming a California licensed contractor, see the CSLB publication, Blueprint
for Becoming a California Licensed Contractor or visit our Website, www.cslb.ca.gov or visit MakeMeAContractor.com for more information today.

.

CSLB Fall California Blitz Stings 111 for Unlicensed Contracting


CSLB reported the California Blitz stung 111 for unlicensed contracting.
SACRAMENTO – The Contractors State License Board’s (CSLB) fall “California Blitz” puts a glaring spotlight on the importance of making sure contractors are properly licensed before allowing them into your home. A total of 111 suspected unlicensed contractors were arrested during the two-day statewide undercover operation on October 20 and 21, 2010. Three of those arrested, including a convicted sex offender, went to jail.

CSLB conducted nine simultaneous sting operations in Fresno, La Mesa, Pasadena, Placerville, Porterville, San Juan Capistrano, Seaside, Visalia, and West Sacramento.

During the Blitz, investigators from CSLB’s Statewide Investigative Fraud Team (SWIFT) posed as homeowners or community organization volunteers, asking for bids on projects that ranged from swimming pool repair to painting, landscaping, and tree trimming. Those who bid more than the legal limit of $500 for labor and materials received a Notice to Appear (NTA) in court for a misdemeanor charge of contracting without a license. Other charges included illegal advertising and soliciting excessive down payments. State law also requires contractors to put their license number in all forms of advertising. Those who are not licensed can advertise and do jobs valued at less than $500, but their ads must state that they are not a licensed contractor. Also, it is illegal to ask for a down payment greater than 10 percent of the contract price or $1,000, whichever is less. There is an exception for about two dozen licensees who purchase special bonds for consumer protection. Those exceptions are noted on CSLB’s website.

Three people were booked and taken to jail on outstanding warrants in West Sacramento and Placerville. Mardardo Flores, 31, of Woodland, was booked on a no bail warrant for violating probation by failing to register as a sex offender. JosĂŠ Antonio Anguiano, 28, of Sacramento, went to jail on a no bail warrant for felony domestic violence. Carl Borrowman, 47, of Placerville, was booked on a warrant for felony fraudulent use of a contractor license number (for contracting on a license that CSLB revoked from him in 2000). Since 2005, state law has required that applicants for new licenses or those changing their classifications submit fingerprints for criminal background checks.

“This Blitz is a wake-up call for all California consumers,” said CSLB Registrar Steve Sands. “You must check out the people you’re going to hire to work on your home to make sure they’re properly licensed. Your family safety or your finances could be jeopardized by not taking a few minutes to verify the contractor on CSLB’s website or through our toll-free phone system.”

Consumers often don’t realize the risk they run when hiring an unlicensed operator. Because these phony contractors don’t carry workers’ compensation insurance, the homeowner could be liable if a worker gets hurt on the job. Also, if something goes wrong or the project is abandoned, homeowners have few options for getting back their money.

The goal of CSLB’s twice-yearly blitz is to educate consumers about potential dangers of hiring phony contractors, and to encourage people who want to work in the construction trades and who qualify to get their contractor license to comply with California law. Local prosecutors and law enforcement agencies, as well as the California Department of Insurance, Department of Industrial Relations, and the Department of Homeland Security’s Immigration and Customs Enforcement assisted CSLB with the Fall Blitz. “The Yolo County District Attorney’s Office is always anxious to work with other agencies to ensure compliance with the law,” said Yolo County District Attorney Jeff Reisig. “We’ll make every effort to get these people into compliance and to ensure the public is safeguarded.”
In addition to the stings, CSLB investigators, along with investigators from the Department of Industrial Relations and Department of Insurance, also conducted sweep operations at construction sites in Solano and Riverside Counties. These sweeps were to verify that contractors were properly licensed and carried the necessary insurance. A number of citations were issued to contractors for not carrying workers’ compensation insurance.

Visit MakeMeAContractor.com to learn how to avoid the CSLB Stings by earning a valid Contractors License.