Category Archives: CSLB News

Contractor Warranties: What California Contractors Need to Know

Implied, express, or contractual – warranties are a critical part of contract law that ALL California contractors need to know to be successful.

Sure, one can say “I’m a contractor and not a lawyer!” and while that’s true, it’s also essential that you understand the basics of a contract, to make sure you don’t get burned by sketchy subcontractors or ruthless clients – both of which want to get the most value for the least money.

With that in mind, let’s take a look at warranties for contractors – what they are, what they do, and why you need to know them to be successful as a California contractor.

What Is A Construction Warranty?

In California, a warranty is a legally enforceable assurance provided by a contractor to a client regarding the quality, functionality, and durability of the work delivered.

Warranties in the construction domain serve to uphold professional standards, protect consumer rights, and provide a framework for action and remuneration in case of construction defects or non-compliance with specified standards.

It serves as a pledge that the delivered project will adhere to the specified standards, and should any issues arise within a stipulated period post-completion, the contractor will rectify them at no additional cost to the client.

In legal terms, a warranty refers to a guarantee or promise enshrined within a contract, under which the contractor assures the quality, performance, or condition of a particular subject matter to the client. Warranties also stipulate the consequences of construction defects, legally outlining what a contractor must do in the case of a construction defect.

What Does A Construction Warranty Do?

Warranties, at their very basic level, are legal protections that protect both the contractor and the client by outlining all of the responsibilities of both parties – and the consequences for violating the terms both parties agreed upon.

Contractual Assurance: A warranty is a contractual assurance wherein the contractor guarantees the quality and compliance of the job. This could range from the materials used, the workmanship quality, to the project adhering to local building codes and regulations.
Binding Obligation: Once a warranty is stipulated within a contract, it becomes a binding obligation, enforceable in court. The contractor is now legally bound to honor the warranty, failing which could result in legal repercussions.
Remedial Action: The primary purpose of a warranty is to provide a remedial course of action in case the delivered work doesn’t meet the specified standards. Warranties exist to protect the client, by outlining the specific steps a contractor must take to fix a contractual violation.
Risk Allocation: On the flip side, warranties also protect contractors by defining the extent to which contractors are liable for defects or issues arising post-construction.

Types of Construction Warranties

Express Warranty: This is a clearly articulated assurance provided by the contractor regarding specific aspects of the construction project. This is essentially any warranty or guarantee a contractor puts in a contract. It specifically and granularly outlines the things they promise to deliver to the client and the timeframe they’ll fix any problems that crop up.
Implied Warranty: Unlike express warranties, implied warranties are not explicitly stated but are implied in the very nature of construction. By taking on any construction job, a contractor is tacitly agreeing to these warranties. There are two types of implied warranties in the United States.
- Workmanship Warranty: guarantees that any construction project will be built in a good or workmanlike manner, free of major defects. This includes both labor and materials.
- Warranty of Habitability: guarantees that any construction project will be suitable for the purpose they are intended for and be safe to live in.
Statutory Warranty: These are warranties determined by the state. Statutory warranties do one thing: they specifically outline the amount of time that contractors are liable for any construction defects.

Common Construction Warranties In California

Warranties in California cover a spectrum of durations and construction aspects, and they can vary from industry to industry and home to home. Here’s some of the main ones you’ll come across in your career as a California contractor.

General Warranties

Mandatory Warranties: Contractors in California are obligated to provide warranties on their work, such as a 4-year warranty on installed items, a one-year warranty on the fit and finish of certain areas, and a guarantee against defects in compliance with building codes and manufacturer requirements.
State Law: Notable legal codes include California Civil Code 900, which requires one-year expressed limited warranties for both new construction and remodeling projects, and the Right to Repair Act (California Civil Code 896, et seq.), which includes implied warranties into the one-year warranty requirement.
One-Year Warranties: These short-term warranties cover aspects like “fit and finish” of certain elements, “manufactured products,” compliance with “interunit noise transmission standards,” and irrigation, drainage, and landscaping systems.
Two to Five-Year Warranties: These cover medium-sized problems, like untreated wood posts, dryer ducts, plumbing, sewer, electrical systems, exterior pathways, and paint and stains causing deterioration.
Ten-Year Warranties: Ten-year warranties are all about foundational and structural elements. Ten-year warranties ensure long-term accountability on the construction elements most critical to human safety.

Notable Court Cases Involving Warranties

When it comes to contractor contracts, looking to existing court cases is a good way to learn about the system, so you can prepare yourself for even the worst-case scenario.

1. Moore v. Teed

Moore v. Teed was an interesting case about contractual fraud and construction defects, with a big emphasis on the legal application of Business and Professions Code §7160. In the case, a homeowner was suing a contractor for damages because the contractor severely overpromised… and underdelivered to the tune of $300,000.

This ruling gives homeowners more leverage over contractors who promise the world and don’t deliver. In the case, the court ruled that homeowners are entitled to the “image that the contractor promised” when selling their services. In other words, a contractor is liable for the promise of the project made by the contractor and is due damages equal to the promise made to the client – whether it’s in writing or not.

2. Howard Contracting, Inc. v. G.A. Macdonald Construction Co., Inc.

This landmark case made it to the California Supreme Court and set a precedent that allows subcontractors to recover damages for cost overruns caused by delays and disruptions – even if there’s stipulations in the prime contract barring such claims.

The civil ruling changed things for both subcontractors and contractors in California by giving subcontractors the option to sue for – and receive – damages for any out-of-pocket costs or expense overruns caused by delays. The key thing is that even if the prime contract states the prime contractor isn’t liable for damages, they are still liable for damages.

3. Aas v. Superior Court Of California

In this massive 2000 ruling, the California Supreme Court delineated the boundaries of negligence claims in construction defects scenarios. The court ruled that homeowners could not recover damages for construction defects that hadn’t caused property damage. It seems obvious, but before then, there was no legal precedent protecting contractors against

This ruling set a significant precedent on the scope of liability for contractors and developers, finally establishing precedent that homeowners can’t sue contractors for damages related to construction defects…. without actually suffering damages related to construction defects.

It’s wild that we even have to type that…but here we are. Thanks to this court ruling, contractors and the state of California must have saved millions in legal fees from baseless lawsuits.

California Contractors: Get To Know Your Contracts!

As you can see from these court cases, it’s critical for any contractor to know what’s in their contracts – and what’s excluded from them. Any contractor who is too lazy to learn at least the basics of contract law is a contractor who will find themselves in trouble at some point down the road.

We hope this guide serves as a good jumping-off point for your contracting business – now’s the time for you to dig deeper into your own personal situation to make sure you’re covering all your bases and setting yourself up for success as a California contractor.

Additional Reading

California State Licensing Board
Levelset – Warranty requirements for contractors in California
Esquire REB – New Construction Warranties Provided By California Law
Valley Contractors Exchange – New Construction Warranties
Stone Sallus – Construction Defect Claims in California: Understanding Your Options
FreeAdvice – California Contractor Warranty Form
Smith Currie – New California Construction Laws for 2023

New Laws for California Contractors in 2023

We’re always hearing stories from former clients and current contractors that they’re seeing frequent violations of new contractor laws that just came into effect this year, in 2023.

There are a ton of new laws that are – to be frank – absolutely critical to know as a contractor, no matter your classification, location, or size. Any violation of these new laws carries serious penalties – including time in jail for repeat offenders.

Arm yourself with the knowledge and take the steps necessary to protect your business by becoming familiar with the following pieces of new legislation.

Senate Bill 216 (Dodd)

If you’re a concrete, HVAC, Asbestos or Tree Service contractor in California – listen up!

Senate Bill 216 (SB216), which amends the Business and Professions Code (BPC) Section 7125, is a piece of legislation that requires 5 Class “C” contractors to carry workers’ compensation insurance, even without employees.

This mandate means that contractors with a C-8 Concrete, C-20 Heating, Warm-Air Ventilating and Air-Conditioning, C-22 Asbestos Abatement, or D-49 Tree Service license must have valid workers’ compensation insurance by January 1, 2023.

And as a note to all contractors of all classifications: by January 1, 2026, all contractors must have valid workers’ compensation insurance, irrespective of whether or not they have employees.

The only exception to the new CSLB workers’ comp requirements is joint ventures without employees. Anyone with this structure of business is exempt from SB 216’s workers’ comp requirements.

Senate Bill 607 (Min)

In another insurance-related move, the California Senate passed Bill 607 (SB 607), which marks another important change in the requirements to hold a CSLB license. It updates numerous sections of the BPC – with one huge change in bond amounts.

SB 607 mandates that the CSLB qualifier, license, and minimum disciplinary bonds be raised from $12,500 and $15,000, respectively, to $25,000 for all three bonds as of January 1, 2023.

As a bonus for the families of military members looking to become licensed contractors, SB 216 also requires the Department of Consumer Affairs (DCA) boards and bureaus (including the CSLB) to waive application and license fees for military family members.

What if I Don’t Have Workers’ Compensation Insurance Or My Bond Amount Is Insufficient?

If you are currently in one of the above classifications and you do not have workers’ comp or a sufficient bond amount…well, we’ve got bad news for you: your license is surely suspended.

Don’t panic – just stop doing work entirely if you are still doing it. This is critical as you can face serious legal consequences for working without a license.

Next, you should immediately begin the process of getting the necessary workers’ compensation insurance and/or increasing your bond amount. Once that is sorted out, you can re-apply for your license.

If you’re unsure or don’t remember if you have workers’ compensation insurance, you should immediately check your license status.

Senate Bill 1237 (Newman)

Huzzah for troops-turned-contractors – SB 1237 is here to waive any renewal fees!

Senate Bill 1237 (SB 1237) updates the current law that requires DCA boards, including the CSLB, to waive renewal fees for a licensee who is called to active duty as a member of the U.S. Armed Forces or California National Guard.

This applies if the licensee or registrant is stationed outside of California. The new law expands the definition of “called to active duty” and extends it to licensees on active duty during a “state of insurrection” or a “state of extreme emergency.”

Assembly Bill 2105 (Smith)

In another move that will have veteran contractors excited, Assembly Bill 2105 (AB 2105) mandates a 50% fee reduction for an initial license or registration fee for all veterans!

All you have to do is provide paperwork proving you are a veteran who has served as an active-duty member of the United States Armed Forces, including the National Guard or Reserve components and was not dishonorably discharged.

For HIS contractors, this still applies to you as well! This applies to all initial license fees for anyone acquiring a CSLB license.

Assembly Bill 1747 (Quirk)

Assembly Bill 1747 (AB 1747) increases the civil penalty from $8,000 to $30,000 for every violation of BPC Section 7110 (savvy legal contractors will know these are building code violations) and amends Section 7099.2 (how much in penalties violators will pay).

This bill expands BPC 7110 to include failure to comply with certain health and safety laws, water laws, safe excavation requirements, pest control requirements, illegal dumping, and other state laws related to building and insurance requirements.

Assembly Bill 2374 (Bauer-Kahan)

Bad news for litterbug contractors: your time is up.

Assembly Bill 2374 (AB 2374) amends Penal Code Section 374.3 and now requires courts to notify CSLB or other DCA boards or bureaus when a licensee is convicted of an illegal dumping crime. This is so the board can publish the conviction on their website.

The bill also increases the fines a court may impose for this crime, which is great for everyone everywhere. In a double-swoop of awesome for contractors who like to do the entire job right, it also requires the court to order a person convicted of dumping commercial quantities of waste to remove or pay for the removal of, the waste matter that was illegally dumped. Which, again, is an absolute win for everyone involved.

Assembly Bill 2916 (McCarty)

Assembly Bill 2916 (AB 2916) amends BPC Section 7124.6 and modifies the CSLB Letter of Admonishment (LOA) program to allow CSLB to determine whether it should be issued for one or two years, rather than the current one-year limitation.

In making that determination, CSLB is required to consider the gravity of the violation, the good faith of the licensee or applicant being charged, and the history of previous violations.

This is a pretty technical bill and to be honest, it remains to be seen how it will affect contractors. It seems to really only affect disciplinary actions, which affect only a small number of contractors. We’ll keep you posted on how it develops.

Stay Compliant…Or Else!

These new laws have serious consequences for any contractor that is non-compliant and remember: Ignorantia juris non excusat – ignorance of the law does not mean you are free from the consequences of violating it.

And in the CSLB’s case – the punishments are extremely severe for anyone violating contractor law in California. So don’t do it!

FAQ: CSLB Licensing Workshops

Are you considering becoming a licensed contractor in California? The process can be overwhelming, with what feels like thousands of hoops to jump through and forms to fill out.

Wisely, the Contractors State License Board (CSLB) has started offering licensing workshops to help guide you through it.

In this article, we’ll cover the most frequently asked questions about CSLB licensing workshops, including what they are, how they can help you, and how to sign up.

What Are CSLB Licensing Workshops?

The CSLB offers a variety of licensing workshops to assist individuals who are interested in becoming licensed contractors.

These step-by-step guides are short, but highly informational, workshops that really guide you through the entire process of applying for, testing for, and ultimately receiving a California contractor license.

They cover all sorts of topics and have been shaped by common questions that the CSLB found contractors were asking. Some of the areas covered in these workshops include:

A general overview of CSLB licensing requirements
- What do you need to actually become a contractor?
Business and financial management for contractors
- How to manage the business side of contracting?
Exam preparation and test-taking strategies
- Basically – how to pass the notorious CSLB exam?
Laws and regulations related to contracting in California
- Learn how to make sure you’re doing work legally
How to avoid common mistakes in the licensing process
- Mistakes can hold up your license for weeks or months. Just don’t!
How to file a complaint against a contractor
- An unfortunate side of the business, but necessary. CSLB professionals can tell you how to best handle an unscrupulous contractor.

How much does the CSLB licensing workshop cost?

These workshops are free! You don’t have to pay a red cent!

The CSLB started giving these workshops out as a way to help contractors get licensed, so they have no need to charge. They just want to help you become a contractor!

Where and when do I take the CSLB licensing workshop?

The CSLB hosts their licensing workshop on the first Friday of every month at 10:00 a.m.

Usually, these workshops are in-person, but since the COVID pandemic, they’ve shifted these workshops to entirely online. As of April 2023, it seems that these workshops are still fully digital.

How do I sign up?

The CSLB recommends signing up for their email list to receive access to register.

They encourage you to check the box for “Podcasts and Webcasts” to ensure you receive your invitation, as well. Otherwise, you’ll receive the wrong information (although perhaps still relevant to your license!).

Is the CSLB licensing workshop available in Spanish?

Yes! The CSLB licensing workshop is available in Spanish.

Find out more about taking the licensing workshop here, or watch the video below:

Participa en nuestro workshop para obtener la licencia para construir

Bonus: Get CSLB Exam Study Guides… In Spanish!

Spanish-speaking construction professionals rejoice! The CSLB has released a bunch of brand-new Spanish study guides.

These study guides cover a variety of topics, including construction law, safety, and business practices, and can help you pass the exam first try.

CHECK OUT OUR ARTICLE HERE to see the full list of new study guides in Spanish. Here are a few of the big ones:

C-6 Cabinet, Millwork and Finish Carpentry
C-8 Concrete
C-10 Electrical
C-15 Flooring and Floor Covering
C-20 HVAC

These study guides provide valuable assistance to Spanish-speaking applicants who may struggle with the English language, so check them out!

What To Expect From the CSLB Exam: The Essential Facts

If you’re looking to get a California contractor license from the Contractors State License Board (CSLB), you know one of the most difficult parts of the process is passing the notoriously difficult CSLB exam.

This behemoth of a test is designed to be difficult in order to weed out shoddy contractors, so if you go in without preparing, you’re in for a world of hurt.

In this essential but comprehensive guide, we’ll look at only the most crucial elements of the CSLB exam, so you can know what to expect when you sit down and take the test.

The CSLB Exam: A True Test Of A Contractor’s Knowledge

The CSLB exam is designed to evaluate your competency and expertise in your chosen trade, and it is designed to make you fail if you don’t know what you’re doing.

It is divided into two main parts.

The first part of the CSLB exam is the Law and Business section, which is taken by applicants.

The second part of the CSLB exam is the Trade section, which tests the knowledge of your specific trade. If you’re studying for a C-36 Plumbing License, for example, you can expect plumbing-specific questions on your trade exam.

Law and Business Section

This section focuses on contracting business management and includes topics such as contract law, financial management, and employment laws.

115 Questions Long
Multiple-choice format
2.5 hours allotted time
Minimum passing score of 72%
Divided into the following sections (percentage of the test in parentheses):
- Licensing (~15%)
- Bookkeeping (~15%)
- Safety (~12%)
- Contracts~(~10%)
- Bid Procedures (~12%)
- Insurance (~3%)

Trade Section

The Trade section targets the technical aspects of your chosen specialty. The number of questions and the required passing score depends on your trade classification. However, most trade exams share the following characteristics:

80 to 125 questions
Multiple-choice format
2 to 4 hours allotted time
Minimum passing score of 72% for most trades
Information contained within depends on your trade

Total Questions and Duration

Overall, you can expect to answer between 195 to 240 questions, depending on your trade. The total exam duration ranges from 4.5 to 6.5 hours, with breaks between sections.

How Do I Physically Take The Test?

You can take the test in person at various testing centers around California. There are currently eight testing centers in California. You can take the CSLB exam in the following cities:

Berkeley
Fresno
Norwalk
Oxnard
Sacramento
San Bernardino
San Diego
San Jose

The exam itself is administered on a touch-screen computer that immediately gives you the results on completion of your test.

You can find more information about the test itself in this CSLB pamphlet,

Preparing for the CSLB Exam: Effective Strategies and Resources

To achieve success in the CSLB exam, thorough preparation is key. Here are some valuable resources and strategies to aid in your exam preparation

Study Guides. The CSLB offers study guides for each trade classification, which cover key exam topics and provide useful tips.

Some guides are now available in Spanish! See the full list here!

Sample Questions. Familiarize yourself with the exam format and question types by reviewing sample questions provided by the CSLB.
Practice Tests. The CSLB provides practice tests to make sure you’re not only familiar with the topics covered but also the software to take the test itself.
Take A Course. There are quite a few schools out there – like industry veterans CSLS – that have proven methods and courses to help you pass the test the first time.

After the Exam: Moving Forward in the Licensing Process

Once you have successfully passed the CSLB exam, what’s next?

Well, you should receive your exam results right after taking the exam, so you’ll know if you passed the exam and need to take the next steps to get your license.

If you scored less than 72%, you will have to retake the exam. If you passed, congratulations! You are close to getting your CSLB license! Here are the next steps to take!

Submit all the relevant documents to the CSLB (Like Contractor’s Bond, Workers’ Compensation Insurance, Licensing Fees, etc.)
Check your exam status
Receive your license!
Begin working as a licensed California contractor!

The CSLB exam is a notoriously difficult proposition for many contractors – and rightfully so – it’s a test of a contractor’s ability to safely and securely deliver a quality product that protects the public from any issues.

That doesn’t mean it’s impossible to pass – far from it. Preparation is the most important part, so study up and get a guide if you need help getting your license today and becoming a contractor tomorrow.

Contractors State License Board Warns Licensees to Be Aware of Misleading Business Solicitations

Contractors State License Board Warns Licensees to Be Aware of Misleading Business Solicitations
Appeals often look like official government correspondence
SACRAMENTO, CA – The Contractors State License Board (CSLB) wants its licensees to be aware of a warning issued this week by the California State Board of Equalization (BOE).
Licensees are urged to be wary of misleading business solicitations from companies that mimic official correspondence from a government agency.
BOE says businesses have informed the board of notices they have received from the “California Labor Compliance Bureau,” requesting immediate payment of a “processing fee” of $275. The “California Labor Compliance Bureau” is not a government agency. The notices use public information, such as BOE account numbers and industry codes, which give them the appearance of official correspondence.
The “processing fee” is purportedly for labor-related notices that California employers are required to post at their business premises informing employees of their legal rights under the National Labor Relations Act. The notices in question are available free of charge on the National Labor Relations Board’s (NLRB) website.
BOE is not affiliated with the California Labor Compliance Bureau. BOE Correspondence always features the BOE’s title and/or logo and contains contact information. If you receive a notice and question whether it is official BOE correspondence, you should contact your local BOE office or contact the BOE’s Information Call Center at 800-400-7115.
The NLRB can assist licensees with questions regarding required notices at 202-273-0064.

CSLB Bulletin: CSLB and Partners Sting 15 for Contracting Without Licenses

CSLB and Partners Sting 15 for Contracting Without Licenses

SACRAMENTO — The Contractors State License Board (CSLB) teamed up with the Orange County District Attorney’s Office and La Habra Police Department for a two-day sting operation in La Habra where 15 individuals received notices to appear in court for contracting without a license and other, related charges.

On June 29-30, 2011, members of CSLB’s Statewide Investigative Fraud Team (SWIFT) posed as owners of a home (June 29) and a business (June 30) and sought bids from suspected unlicensed operators for painting, concrete, drywall, cabinet installation, and flooring. Those who bid more than the legal threshold of $500 for labor and materials received notices to appear in court for violating California contracting laws.

Some of the suspects will also face charges for failure to carry workers’ compensation insurance, soliciting an excessive down payment, and illegal advertising. State law requires contractors to have workers’ compensation coverage for all employees. Contractors are also prohibited from soliciting a down payment larger than $1,000 or 10 percent of the project, whichever is less. There is an exception for about two dozen contractors who purchase special bonds for consumer protection and may ask for larger down payments. The law also requires contractors to put their license number in all advertisements. Those who are not state-licensed and work on projects valued at less than $500 must state that they are not licensed in their ads.

The first suspect caught contracting without a license was on parole for drug crimes. During the second day of the operation a licensed contractor arrived at the commercial building. He thanked CSLB for conducting the sting and for other enforcement efforts aimed at unlicensed, uninsured individuals who he says are cutting into his business.

“CSLB routinely conducts operations like this one in La Habra as part of its mission to protect the state’s consumers and the integrity of the construction industry,” said CSLB Registrar Steve Sands. “Many of the complaints received by the board after a project has gone awry could have been avoided had homeowners taken a few minutes to check the license first, and followed CSLB’s Ten Tips available in English and several other languages.”

THE CONTRACTORS STATE LICENSE BOARD (CSLB) ZERO-TOLERANCE ENFORCEMENT POLICY IN 2010 AND NOW ISSUES LEGAL ACTION AGAINST ANY C-10 ELECTRICAL CONTRACTOR WHO WILLFULLY EMPLOYS AN UNCERTIFIED ELECTRICIAN TO PERFORM WORK AS AN ELECTRICIAN

CSLB Announces Zero Tolerance Enforcement Policy for C-10 Electrical Contractors.

—————————————————————————————————

SACRAMENTO – The Contractors State License Board (CSLB) established a zero-tolerance enforcement policy in 2010 and now issues legal action against any C-10 Electrical contractor who willfully employs an uncertified electrician to perform work as an electrician. CSLB is legally required to open an investigation and initiate disciplinary action against the contractor (which may include license suspension or revocation) within 60 days of receipt of a referral or complaint from the Department of Industrial Relations’ Division of Apprenticeship Standards (DAS).

Labor Code Section 3099.2 stipulates that anyone who performs work as an electrician for C-10 Electrical contractors shall hold an electrical certification card issued by DAS; DAS is required by Labor Code Section 3099.2 to report violations to CSLB.

Electricians are defined as those who engage in the connection of electrical devices for C-10 contractors. It is CSLB’s position that electrical work must be performed by either a state-licensed or a certified electrician. An indentured apprentice or state-registered electrician trainee may also perform electrical work if supervised by a state-certified electrician. Trenching, concrete, framing, and other work that does not involve connecting electrical devices may be performed by noncertified workers.

Learn more about electrician certification by visiting the Division of Apprenticeship Standards website

Contact a CSLS School Administrator to assist in purusing your C-10 License today! www.MakeMeAContractor.com

Avoid the Pinch…CSLB Fee Increase coming soon!

July is steadily approaching which means fee increases from the CSLB for a Contractors License associated fees is also approaching sooner than you think. Start now in a qualified Contractors Licensing program such as the In School Law & Trade program with CSLS and avoid the pinch. Details from the CSLB outlined to give you an idea of how enrolling now can save you from the big pinch.

Office of Administrative Law Approves CSLB Fee Increase

New fee schedule begins July 1, 2011

SACRAMENTO – Contractors State License Board (CSLB) application, licensing and registration fees transition to a new schedule on July 1, 2011, following action taken by the state Office of Administrative Law (OAL) in 2010. CSLB fees had remained the same since 1993. OAL approved increases that would represent the statutory maximum that was set by the Legislature in 2002 in response to the Enforcement Monitor report that called for increased resources for CSLB’s enforcement program. The increase will help assure that CSLB is able to uphold its mandated protection of California consumers and the integrity of the construction industry.


Fee	Current Amount	New Amount	Increase	% Increase
Application for Original Contractor License	$250.00	$300.00	$50.00	20%
Application to Add a Supplemental Classification or to Replace the Responsible Managing Officer or Employee on an Existing License	$50.00	$75.00	$25.00	50%
Rescheduling an Examination	$50.00	$60.00	$10.00	20%
Initial License Fee	$150.00	$180.00	$30.00	20%
Renewal – Contractor License (Biennial)	$300.00	$360.00	$60.00	20%
Renewal – 4-Year Inactive License	$150.00	$180.00	$30.00	20%
Reactivate Contractor License	$300.00	$360.00	$60.00	20%
Home Improvement Salesperson (HIS) Registration Fee	$50.00	$75.00	$25.00	50%
Asbestos Certification Fee	$50.00	$75.00	$25.00	50%
Hazardous Substance Removal Certificate	$50.00	$75.00	$25.00	50%
Delinquent Renewal – Contactor License /1	$150.00	$180.00	$30.00	20%
Delinquent Renewal – 4-Year Inactive License /1	$75.00	$90.00	$15.00	20%
Delinquent Renewal – HIS Registration /1	$25.00	$37.50	$12.50	50%

/1 Delinquent renewal fees are not included in the proposed regulation because B&P Code Section 7137 (f) sets the delinquency fee as a percentage of the applicable renewal fee: “The delinquency fee is an amount equal to 50 percent of the renewal fee, if the license is renewed after its expiration.”

Statewide sting nets 19 suspected unlicensed contractors in San Diego County

By Tanya Mannes/www.signonsandiego.com
Wednesday, March 16, 2011

Nineteen contractors in San Diego County were among 135 arrested last week during a statewide undercover operation seeking to identify people working without proper licensing.

The Contractors State License Board conducted the operation to spotlight the severe risks California consumers take when they hire unlicensed operators to work in and around their home.

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

“Consumers must check out the people they’re going to hire to work on their home to make sure they’re properly licensed,” said CSLB Registrar Steve Sands. “A family’s safety or 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. We hope this blitz is a wake-up call for consumers to check the license first.”

To verify licensing, visit www.cslb.ca.gov or call 1-800-321-CSLB.

Of those arrested statewide, some were registered sex offenders and others had warrants for arrest on suspicion of burglary, domestic violence or driving under the influence. (None of those cases were in San Diego County.)

The San Diego County operation received support from the District Attorney’s Office, the Sheriff’s Department and the California Department of Insurance.

Investigators from CSLB’s Statewide Investigative Fraud Team posed as homeowners or landlords, asking for bids on projects that ranged from landscaping, concrete and fencing to painting, gutters, garage doors, cabinets, tile work and tree trimming. Those who bid more than the legal limit of $500 for labor and materials received a notice to appear in Superior Court on suspicion of a misdemeanor charge of contracting without a license.

Other charges included illegal advertising and soliciting excessive down payments.

CSLB Press Release: Repeat Offender Caught in CSLB Tehama County Undercover Sting

Revoked licensee could face 90 days in jail after continuing to disregard law

SACRAMENTO – Tuesday, February 8, 2011, was not a good day for Randy Wade Dueck. The 50-year-old from Red Bluff was again caught contracting without a license and arrested during an undercover operation conducted by the Contractors State License Board’s (CSLB) Statewide Investigative Fraud Team (SWIFT), this time in downtown Red Bluff. The sting was conducted in cooperation with the Tehama County District Attorney’s Office and California Department of Industrial Relations.

SWIFT investigators posed as owners of a commercial property near the Sacramento River, seeking painting, flooring, and tile work. A total of eight unlicensed operators who bid more than $500 for labor and materials were arrested and received a Notice to Appear (NTA) in Tehama County Superior Court to face misdemeanor charges of contracting without a license (Business & Professions Code 7028). Six will face an additional charge for illegal advertising (Business & Professions Code 7027.1). A ninth person was not arrested, but did receive a $3,000 citation from the Department of Industrial Relations for employing two people without having workers’ compensation insurance (Labor Code 3722).

“We cannot stress enough how important it is to make sure the people you hire to work in and around your home are properly license by the state of California,” said CSLB Registrar Steve Sands. “It’s a level of protection that can keep you from becoming a victim of fraud.”

Dueck is no stranger to CSLB investigators. His painting license (#589514) was revoked in 1995 after failing to comply with terms of two administrative citations and failing to pay back claims against his license bond. Dueck was cited by CSLB in 2000 after a consumer complaint and also failed to pay the $1,500 citation. Last April, Dueck was arrested in an undercover sting and plead guilty to a charge of contracting without a license. He was on probation at the time of his arrest this week and even told the undercover investigator before he was arrested that he was nervous about being caught again.

CSLB will ask the Tehama County District Attorney’s Office to charge Dueck for violating Business & Professions Code 7028c, which raises the penalties for a second offense of contracting without a license to a $5,000 fine and 90 days in jail.

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 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. State law also requires those selling home improvement services for licensed contractors to register with CSLB.

Since 2005, state law has required criminal background checks for anyone applying for a new license or adding a license classification. California law also requires contractors to have workers’ compensation coverage for all of their employees to protect homeowners from liability. License bond information is available when checking the status of a contractor license.

CSLB urges all California consumers to follow these tips before hiring a home improvement contractor:

Verify the contractor’s license online at www.cslb.ca.gov, or via CSLB’s automated phone system at 1-800-321-CSLB (2752).
Ask to see a photo identification to verify the contractor’s identity.
Don’t pay more than 10% down or $1,000, whichever is less. There is an exception to this rule for about two dozen contractors who purchase special bonds and are noted on CSLB’s website.
Don’t pay in cash, and don’t let the payments get ahead of the work.
Get at least three bids and insist on a written contract before your project begins.

The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. More information and publications about hiring contractors are available on the CSLB website or by calling 800-321-CSLB (2752). You can also sign up for CSLB e-mail alerts, and follow us on Twitter and Facebook. CSLB licenses and regulates California’s more than 300,000 contractors, and is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2009-10, CSLB helped recover nearly $42 million in ordered restitution for consumers.

# # #