Section § 7000

Explanation
This section is essentially saying that the laws within this chapter are known as the Contractors State License Law.
This chapter constitutes, and may be cited as, the Contractors State License Law.

Section § 7000.2

Explanation

This law lets local governments require contractors to prove they’ve paid any local business taxes before getting permits. If a contractor hasn't paid these taxes, the government can deny their permit. However, any taxes charged can't be more than allowed by specific sections of other laws.

Nothing in this code shall be interpreted to prohibit cities, counties, and cities and counties from requiring contractors to show proof that they are in compliance with local business tax requirements of the entity prior to issuing any city, county, or city and county permit. Nothing in this code shall be interpreted to prohibit cities, counties, and cities and counties from denying the issuance of a permit to a licensed contractor who is not in compliance with local business tax requirements.
Any business tax required or collected as part of this process shall not exceed the amount of the license tax or license fee authorized by Section 37101 of the Government Code or Section 16000 of the Business and Professions Code.

Section § 7000.5

Explanation

This law establishes the Contractors State License Board within the Department of Consumer Affairs, made up of 15 members. It's subject to review by legislative policy committees once this section is repealed. The law is set to expire on January 1, 2029.

(a)CA Business & Professions Code § 7000.5(a) There is in the Department of Consumer Affairs a Contractors State License Board, which consists of 15 members.
(b)CA Business & Professions Code § 7000.5(b) Notwithstanding any other provision of law, the repeal of this section renders the board subject to review by the appropriate policy committees of the Legislature.
(c)CA Business & Professions Code § 7000.5(c) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.

Section § 7000.6

Explanation

This law section emphasizes that the main job of the Contractors State License Board is to protect the public. If there's ever a conflict between public safety and any other interests, protecting the public takes priority.

Protection of the public shall be the highest priority for the Contractors State License Board in exercising its licensing, regulatory, and disciplinary functions. Whenever the protection of the public is inconsistent with other interests sought to be promoted, the protection of the public shall be paramount.

Section § 7001

Explanation

Except for public members, all board members must be contractors and have been working in the contracting business for at least five years before they are appointed. They must also keep working as contractors during their time on the board. Contractors must have a valid, active license to be appointed. Public members, on the other hand, cannot be licensed by the board.

All members of the board, except the public members, shall be contractors actively engaged in the contracting business, have been so engaged for a period of not less than five years preceding the date of their appointment and shall so continue in the contracting business during the term of their office. No one, except a public member, shall be eligible for appointment who does not at the time hold an unexpired license to operate as a contractor.
The public members shall not be licentiates of the board.

Section § 7002

Explanation

This section outlines who can serve on a specific board related to contractors in California. The board includes contractors, public members, a labor organization representative, and a local building official. Public members cannot have current or past ties to the construction industry or financial interests in it. Contractor board members must be experienced and active in their field. All board members need good character, must be at least 30, and have lived in California for at least five years. The terms for different types of contractors are defined in another section of the law.

(a)CA Business & Professions Code § 7002(a) One member of the board shall be a general engineering contractor, two members shall be general building contractors, two members shall be specialty contractors, one member shall be a member of a labor organization representing the building trades, one member shall be an active local building official, and eight members shall be public members, one of whom shall be from a statewide senior citizen organization.
(b)CA Business & Professions Code § 7002(b) No public member shall be a current or former licensee of the board or a close family member of a licensee or be currently or formerly connected with the construction industry or have any financial interest in the business of a licensee of the board. Each public member shall meet all of the requirements for public membership on a board as set forth in Chapter 6 (commencing with Section 450) of Division 1. Notwithstanding the provisions of this subdivision and those of Section 450, a representative of a labor organization shall be eligible for appointment to serve as a public member of the board.
(c)CA Business & Professions Code § 7002(c) Each contractor member of the board shall be of recognized standing in his or her branch of the contracting business and hold an unexpired license to operate as a contractor. In addition, each contractor member shall, as of the date of his or her appointment, be actively engaged in the contracting business and have been so engaged for a period of not less than five years. Each contractor member shall remain actively engaged in the contracting business during the entire term of his or her membership on the board.
(d)CA Business & Professions Code § 7002(d) Each member of the board shall be at least 30 years of age and of good character. In addition, each member shall have been a citizen and resident of the State of California for at least five years next preceding his or her appointment.
(e)CA Business & Professions Code § 7002(e) For the purposes of construing this article, the terms “general engineering contractor,” “general building contractor,” and “specialty contractor” shall have the meanings given in Article 4 (commencing with Section 7055) of this chapter.

Section § 7003

Explanation

This law outlines how vacancies are filled on a board. When a board member's term ends, a new person from the same type of contracting business takes over for four years, except if the member was a public representative, in which case another public member is chosen. A Governor, Senate Rules Committee, and Speaker of the Assembly are responsible for some appointments, including specific roles like a senior citizen advocate, a local building official, and a labor organization member. Members can't serve for more than two consecutive terms, and any mid-term vacancies are filled for the remainder of the term.

Except as otherwise provided, an appointment to fill a vacancy caused by the expiration of the term of office shall be for a term of four years and shall be filled, except for a vacancy in the term of a public member, by a member from the same branch of the contracting business as was the branch of the member whose term has expired. A vacancy in the term of a public member shall be filled by another public member. Each member shall hold office until the appointment and qualification of his or her successor or until the office is deemed to be vacant pursuant to Section 1774 of the Government Code, whichever first occurs.
Vacancies occurring in the membership of the board for any cause shall be filled by appointment for the balance of the unexpired term.
No person shall serve as a member of the board for more than two consecutive terms.
The Governor shall appoint four of the public members, including the public member who is from a statewide senior citizen organization, the local building official, the member of a labor organization representing the building trades, and the five contractor members qualified as provided in Section 7002. The Senate Rules Committee and the Speaker of the Assembly shall each appoint two public members.

Section § 7005

Explanation

The Governor has the authority to remove board members if they behave badly, aren't capable, or don't fulfill their responsibilities.

The Governor may remove any member of the board for misconduct, incompetency or neglect of duty.

Section § 7006

Explanation

This law requires the board to meet at least once every three months to handle its business, and aims to webcast these meetings if possible. Special meetings can be arranged according to the board's rules, and four board members can call a special meeting anytime.

The board shall meet at least once each calendar quarter for the purpose of transacting business as may properly come before it. The board shall make every effort to make all regularly scheduled quarterly meetings of the board available as a webcast when the appropriate resources are available.
Special meetings of the board may be held at times as the board may provide in its bylaws. Four members of the board may call a special meeting at any time.

Section § 7007

Explanation

This law section states that at board meetings, eight members are needed to make official decisions. Also, each board member must be informed about when and where the meetings will take place, following the rules set out in the bylaws.

Eight members constitute a quorum at a board meeting.
Due notice of each meeting and the time and place thereof shall be given each member in the manner provided by the bylaws.

Section § 7008

Explanation

This section allows the board to create committees and set rules necessary to implement this chapter's provisions, following the procedures outlined in the Administrative Procedure Act.

The board may appoint such committees and make such rules and regulations as are reasonably necessary to carry out the provisions of this chapter. Such rules and regulations shall be adopted in accordance with the provisions of the Administrative Procedure Act.

Section § 7009

Explanation
This law allows any board member or its committee to swear in witnesses and collect evidence or testimony for issues related to the board's authority.
Any member or committee of the board may administer oaths and may take testimony and proofs concerning all matters within the jurisdiction of the board.

Section § 7010

Explanation

This law states that the board is responsible for handling everything related to this chapter, except for tasks given to the director as per Division I of the code.

The board is vested with all functions and duties relating to the administration of this chapter, except those functions and duties vested in the director under the provisions of Division I of this code.

Section § 7011

Explanation

This section outlines the appointment and roles of the registrar of contractors by the board, requiring the director's approval, and discusses the support staff roles that can be appointed to assist with administrative duties. The registrar acts as the executive officer and secretary. Appointments are to follow civil service laws and are subject to expiration on January 1, 2029.

(a)CA Business & Professions Code § 7011(a) The board, by and with the approval of the director, shall appoint a registrar of contractors and fix the registrar’s compensation.
(b)CA Business & Professions Code § 7011(b) The registrar shall be the executive officer and secretary of the board and shall carry out all of the administrative duties as provided in this chapter and as delegated to the registrar by the board.
(c)CA Business & Professions Code § 7011(c) For the purpose of administration of this chapter, there may be appointed a deputy registrar, a chief reviewing and hearing officer, and, subject to Section 159.5, other assistants and subordinates as may be necessary.
(d)CA Business & Professions Code § 7011(d) Appointments shall be made in accordance with the provisions of civil service laws.
(e)CA Business & Professions Code § 7011(e) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.

Section § 7011.3

Explanation

This law means that if a licensed contractor has already been fined by the Labor Commissioner for a particular violation, they cannot be fined again for the same issue by the registrar.

The registrar shall not assess a civil penalty against a licensed contractor who has been assessed a specified civil penalty by the Labor Commissioner under Section 1020 or 1022 of the Labor Code for the same offense.

Section § 7011.4

Explanation

This section creates a special enforcement division within the Contractors State License Board in California. Its main job is to crack down on unlicensed contractors and ensure they have the right workers' compensation insurance. Special investigators employed here can issue court notices but are not police officers and can't arrest people. When working with the Joint Enforcement Strike Force, they can freely enter any workplace to carry out their duties.

(a)CA Business & Professions Code § 7011.4(a) Notwithstanding Section 7011, there is in the Contractors State License Board, a separate enforcement division that shall rigorously enforce this chapter prohibiting all forms of unlicensed activity and shall enforce the obligation to secure the payment of valid and current workers’ compensation insurance in accordance with Section 3700.5 of the Labor Code.
(b)CA Business & Professions Code § 7011.4(b) Persons employed as special investigators of the Contractors State License Board and designated by the Director of Consumer Affairs shall have the authority to issue a written notice to appear in court pursuant to Chapter 5C (commencing with Section 853.5) of Title 3 of Part 2 of the Penal Code. An employee so designated is not a peace officer and does not have the power of arrest.
(c)CA Business & Professions Code § 7011.4(c) When participating in the activities of the Joint Enforcement Strike Force on the Underground Economy pursuant to Section 329 of the Unemployment Insurance Code, the enforcement division shall have free access to all places of labor.

Section § 7011.5

Explanation

Investigators working for the Special Investigations Unit of the Contractors State License Board in California have the power of peace officers when they are performing their duties. This means they can enforce laws and start criminal cases related to their investigations. All of their actions as described are considered part of their job.

Persons employed as investigators of the Special Investigations Unit of the Contractors State License Board and designated by the Director of Consumer Affairs have the authority of peace officers while engaged in exercising the powers granted or performing the duties imposed upon them in investigating the laws administered by the Contractors State License Board or commencing directly or indirectly any criminal prosecution arising from any investigation conducted under these laws. All persons herein referred to shall be deemed to be acting within the scope of employment with respect to all acts and matters in this section set forth.

Section § 7011.7

Explanation

This section discusses how complaints should be reviewed and investigated by the registrar. The intent is for complaints to be addressed quickly, ideally in six months. However, in cases involving complex fraud or contractual issues, the board aims to finish within a year, acknowledging these might take longer.

(a)CA Business & Professions Code § 7011.7(a) The registrar shall review and investigate complaints filed in a manner consistent with this chapter and the Budget Act. It is the intent of the Legislature that complaints be reviewed and investigated as promptly as resources allow.
(b)CA Business & Professions Code § 7011.7(b) The board shall set as a goal the improvement of its disciplinary system so that an average of no more than six months elapses from the receipt of a complaint to the completion of an investigation.
(c)CA Business & Professions Code § 7011.7(c) Notwithstanding subdivision (a), the goal for completing the review and investigation of complaints that, in the opinion of the board, involve complex fraud issues or complex contractual arrangements, should be no more than one year.

Section § 7011.8

Explanation

If someone who needs a contractor's license files a false complaint against another licensed contractor, knowing it's untrue, they can get a citation from the Contractors State License Board. The board can also tell local prosecutors if they believe the complaint is deliberately false.

(a)CA Business & Professions Code § 7011.8(a) Any person subject to licensure under this chapter who reports to, or causes a complaint to be filed with, the Contractors State License Board that a person licensed by that entity has engaged in professional misconduct, knowing the report or complaint to be false, may be issued a citation by the registrar.
(b)CA Business & Professions Code § 7011.8(b) The board may notify the appropriate district attorney or city attorney that a person subject to licensure under this chapter has made or filed what the entity believes to be a false report or complaint against a licensee.

Section § 7012

Explanation

This law allows a registrar, with approval, to help enforce construction-related laws when there is funding. The registrar can also hire assistants as needed to do this work.

The registrar, with the approval of the board and the director, may, when funds are available, cooperate in the enforcement of governmental legislation relating to the construction industry, and, except as provided by Section 159.5, shall appoint such assistants as may be necessary therefor.

Section § 7013

Explanation

This law allows the board to review and possibly change any decision made by the registrar if the majority agrees. It applies to actions that follow specific government procedures.

The board may in its discretion review and sustain or reverse by a majority vote any action or decision of the registrar.
This section shall apply to any action, decision, order, or proceeding of the registrar conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.

Section § 7013.5

Explanation

This law says that during certain legal proceedings related to business licensing, testimony from previous court cases or hearings can be used as evidence, even if the witness cannot testify again. However, the testimony must be relevant, and the person in charge of the hearing can decide to request the witness to testify in person instead or reject the testimony if it wasn't given in a setting that allowed for proper questioning of the witness.

In all application, citation, or disciplinary proceedings pursuant to this chapter and conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, the testimony of a witness given in any contested civil or criminal action or special proceeding, in any state or before any governmental body or agency, to which the licensee or person complained against is a party, or in whose behalf the action or proceeding is prosecuted or defended, may be received in evidence, so far as relevant and material to the issues in the proceedings, by means of a duly authenticated transcript of that testimony and without proof of the unavailability of the witness; provided that the registrar may order the production of and testimony by that witness, in lieu of or in addition to receiving a transcript of his or her testimony and may decline to receive in evidence the transcript of testimony, in whole or in part, when it appears that the testimony was given under circumstances that did not require or allow an opportunity for full cross-examination.

Section § 7014

Explanation

This law says that the board has the authority to buy the tools and records it needs to do its job properly under this chapter.

The board may procure equipment and records necessary to carry out the provisions of this chapter.

Section § 7015

Explanation

This law mandates that the Contractors State License Board must create an official seal for its use. The seal will include specific wording about the board's identity, and the registrar is responsible for taking care of it.

The board shall adopt a seal for its own use. The seal shall have the words “Contractors State License Board, State of California, Department of Consumer Affairs,” and the care and custody thereof shall be in the hands of the registrar.

Section § 7016

Explanation

The members of the board are entitled to receive a daily allowance and reimbursement for expenses, as detailed in another section of the law.

Each member of the board shall receive a per diem and expenses as provided in Section 103.

Section § 7017.3

Explanation

This law requires the Contractors State License Board to submit an annual report to the Legislature by October 1 each year. The report includes detailed statistical information about complaints related to licensed contractors, registered home improvement salespersons, and unlicensed individuals acting as licensees. The report must categorize complaints by their source, type, and resolution method, such as settlement or arbitration. It also tracks the number of citations issued, complaints referred for investigation, and actions taken by the board. The report should provide data on case durations and outcomes, including disciplinary actions, temporary restraining orders, and cost recoveries. It covers the entire complaint process, from intake to final decisions and any legal actions, ensuring transparency and accountability in the board's activities.

The Contractors State License Board shall report annually to the Legislature, not later than October 1 of each year, the following statistical information for the prior fiscal year. The following data shall be reported on complaints filed with the board against licensed contractors, registered home improvement salespersons, and unlicensed persons acting as licensees or registrants:
(a)CA Business & Professions Code § 7017.3(a) The number of complaints received by the board categorized by source, such as public, trade, profession, government agency, or board-initiated, and by type of complaint, such as licensee or nonlicensee.
(b)CA Business & Professions Code § 7017.3(b) The number of complaints closed prior to referral for field investigation, categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.
(c)CA Business & Professions Code § 7017.3(c) The number of complaints referred for field investigation categorized by the type of complaint, such as licensee or nonlicensee.
(d)CA Business & Professions Code § 7017.3(d) The number of complaints closed after referral for field investigation categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.
(e)CA Business & Professions Code § 7017.3(e) For the board’s Intake/Mediation Center and the board’s Investigation Center closures, respectively, the total number of complaints closed prior to a field investigation per consumer services representative, and the total number of complaints closed after referral for a field investigation per investigator and special investigator. Additionally, the board shall report the total number of complaints closed by other board staff during the year.
(f)CA Business & Professions Code § 7017.3(f) The number of complaints pending at the end of the fiscal year grouped in 90-day increments, and the percentage of total complaints pending, represented by the number of complaints in each grouping.
(g)CA Business & Professions Code § 7017.3(g) The number of citations issued to licensees categorized by the type of citation such as order of correction only or order of correction and fine, and the number of citations issued to licensees that were vacated or withdrawn.
(h)CA Business & Professions Code § 7017.3(h) The number of citations issued to nonlicensees and the number of these citations that were vacated or withdrawn.
(i)CA Business & Professions Code § 7017.3(i) The number of complaints referred to a local prosecutor for criminal investigation or prosecution, the number of complaints referred to the Attorney General for the filing of an accusation, and the number of complaints referred to both a local prosecutor and the Attorney General, categorized by type of complaint, such as licensee and nonlicensee.
(j)CA Business & Professions Code § 7017.3(j) Actions taken by the board, including, but not limited to, the following:
(1)CA Business & Professions Code § 7017.3(j)(1) The number of disciplinary actions categorized by type, such as revocations or suspensions, categorized by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.
(2)CA Business & Professions Code § 7017.3(j)(2) The number of accusations dismissed or withdrawn.
(k)CA Business & Professions Code § 7017.3(k) For subdivisions (g) and (j), the number of cases containing violations of Sections 7121 and 7121.5, and paragraph (5) of subdivision (a) of Section 7159.5, categorized by section.
(l)CA Business & Professions Code § 7017.3(l) The number of interim suspension orders sought, the number of interim suspension orders granted, the number of temporary restraining orders sought, and the number of temporary restraining orders granted.
(m)CA Business & Professions Code § 7017.3(m) The amount of cost recovery ordered and the amount collected.
(n)CA Business & Professions Code § 7017.3(n) Case aging data, including data for each major stage of the enforcement process, including the following:
(1)CA Business & Professions Code § 7017.3(n)(1) The average number of days from the filing of a complaint to its closure by the board’s Intake/Mediation Center prior to the referral for an investigation categorized by the type of complaint, such as licensee or nonlicensee.
(2)CA Business & Professions Code § 7017.3(n)(2) The average number of days from the referral of a complaint for an investigation to its closure by the Investigation Center categorized by the type of complaint, such as licensee or nonlicensee.
(3)CA Business & Professions Code § 7017.3(n)(3) The average number of days from the filing of a complaint to the referral of the completed investigation to the Attorney General.
(4)CA Business & Professions Code § 7017.3(n)(4) The average number of days from the referral of a completed investigation to the Attorney General to the filing of an accusation by the Attorney General.
(5)CA Business & Professions Code § 7017.3(n)(5) The average number of days from the filing of an accusation to the first hearing date or date of a stipulated settlement.
(6)CA Business & Professions Code § 7017.3(n)(6) The average number of days from the receipt of the administrative law judge’s proposed decision to the registrar’s final decision.

Section § 7017.5

Explanation

Every Monday, the board must update its website with information about home improvement salesperson applications. They have to list the earliest date of unprocessed applications as well as the earliest date of processed applications that received a registration number.

By the close of the first business day of each week, the board shall post the following home improvement salesperson registration information on its Web site:
(a)CA Business & Professions Code § 7017.5(a) The earliest enrolled date of the unprocessed applications on file at the close of the prior business day.
(b)CA Business & Professions Code § 7017.5(b) The earliest enrolled date of an application for which a registration number has been issued at the time of the posting required by this section.

Section § 7018

Explanation

This law requires the board to keep an online search tool updated on their website, allowing people to find licensed contractors based on ZIP Code or area.

The board shall maintain the current contractor license check search function on their internet website that permits consumers to search for a licensed contractor by either ZIP Code or geographic location.

Section § 7019

Explanation

This section explains that if there's enough money, the board can hire certain professionals, like engineers or accountants, to help investigate consumer complaints. They can also hire other experts, such as interpreters, if needed to help with cases involving licenses or registrations. The registrar decides how much these helpers get paid and provides specific forms for reporting their work.

(a)CA Business & Professions Code § 7019(a) If funding is made available for that purpose, the board may contract with licensed professionals, as appropriate, for the site investigation of consumer complaints.
(b)CA Business & Professions Code § 7019(b) The board may contract with other professionals, including, but not limited to, interpreters and manufacturer’s representatives, whose skills or expertise are required to aid in the investigation or prosecution of a licensee, registrant, applicant for a license or registration, or those subject to licensure or registration by the board.
(c)CA Business & Professions Code § 7019(c) The registrar shall determine the rate of reimbursement for those individuals providing assistance to the board pursuant to this section. All reports shall be completed on a form prescribed by the registrar.
(d)CA Business & Professions Code § 7019(d) As used in this section, “licensed professionals” means, but is not limited to, engineers, architects, landscape architects, geologists, and accountants licensed, certificated, or registered pursuant to this division.

Section § 7020

Explanation

This law requires the board to keep a computer-based system on consumer complaints to make tracking enforcement actions easier.

The board shall maintain a computerized enforcement tracking system for consumer complaints.

Section § 7021

Explanation

This law allows the board to collaborate with other state or local agencies that have information important to its mission of protecting the public. The board can make formal agreements to share this information to ensure public safety.

The board may enter into an interagency agreement with any other state or local agency the board deems to be in possession of any information relevant to its priority to protect the public described in Section 7000.6.