Section § 7025

Explanation

This section defines some important terms used in relation to licensing. 'Members of the personnel of record' refers to everyone listed as being associated with a licensee. 'Person' can be an individual or any kind of business entity, like a company or partnership, or even a federally recognized tribe. A 'qualifying person' or 'qualifier' is someone who meets the requirements to get a license as outlined in another part of the law.

(a)CA Business & Professions Code § 7025(a) “Members of the personnel of record” as used in this chapter means every person listed in the records of the registrar as then associated with a licensee.
(b)CA Business & Professions Code § 7025(b) “Person” as used in this chapter includes an individual, a firm, partnership, corporation, limited liability company, federally recognized tribe, association or other organization, or any combination thereof.
(c)CA Business & Professions Code § 7025(c) “Qualifying person,” “qualifying individual,” or “qualifier,” as used in this chapter, means a person who qualifies for a license pursuant to Section 7068.

Section § 7025.1

Explanation

This section defines terms related to federally recognized tribes in California and explains how these tribes can get licensed to conduct certain business activities. A 'federally recognized tribe' is one that is listed in a federal registry, while a 'participating tribe' is one that applies for a specific business license. The board is responsible for granting licenses to these tribes, but it doesn't interfere with or reduce their existing rights or authority. Also, the board can't regulate activities within the tribes' jurisdiction.

(a)CA Business & Professions Code § 7025.1(a) As used in this chapter, the following definitions apply:
(1)CA Business & Professions Code § 7025.1(a)(1) “Federally recognized tribe” means a tribe located in this state and included on the list published in the Federal Register pursuant to the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. Sec. 5131) and includes an entity controlled by and established for the benefit of one or more tribes.
(2)CA Business & Professions Code § 7025.1(a)(2) “Participating tribe” means a federally recognized tribe that formally applies for licensure from the board pursuant to Section 7065.
(b)CA Business & Professions Code § 7025.1(b) The board shall license a federally recognized tribe that applies for licensure under Section 7065 and is otherwise compliant with the provisions of this chapter for the purpose of engaging in a business regulated by this chapter.
(c)CA Business & Professions Code § 7025.1(c) This chapter is not intended to infringe upon or diminish the existing rights, privileges, and immunities of federally recognized tribes as set forth in federal, state, or tribal law, or the jurisdiction of those participating tribes.
(d)CA Business & Professions Code § 7025.1(d) This chapter does not confer upon the board, registrar, or director any rights or authority to regulate any activity within the jurisdiction of a participating tribe.

Section § 7026

Explanation

This law defines a 'contractor' as anyone who works on construction projects, whether they do the work themselves, manage others, or submit bids for it. This includes building, altering, repairing, or demolishing structures like buildings, roads, and railroads. It also covers related tasks like setting up scaffolding, cleaning, preparing construction areas, and handling equipment for projects. Subcontractors and specialty contractors also fall under the term 'contractor'.

“Contractor,” for the purposes of this chapter, is synonymous with “builder” and, within the meaning of this chapter, a contractor is any person who undertakes to or offers to undertake to, or purports to have the capacity to undertake to, or submits a bid to, or does himself or herself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, parking facility, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith, or the cleaning of grounds or structures in connection therewith, or the preparation and removal of roadway construction zones, lane closures, flagging, or traffic diversions, or the installation, repair, maintenance, or calibration of monitoring equipment for underground storage tanks, and whether or not the performance of work herein described involves the addition to, or fabrication into, any structure, project, development or improvement herein described of any material or article of merchandise. “Contractor” includes subcontractor and specialty contractor. “Roadway” includes, but is not limited to, public or city streets, highways, or any public conveyance.

Section § 7026.1

Explanation

This law describes who is considered a 'contractor' in terms of performing certain types of work. It includes people or firms who work on air conditioning, heating, or refrigeration equipment; those who manage, bid on, or oversee building projects; and temporary labor agencies that provide workers for these jobs. Additionally, the law covers people involved in tree work or well construction. Notably, certain roles such as a common interest development manager are excluded from needing a contractor's license for management services. Exemptions are also made for gardeners and nursery professionals doing incidental pruning.

(a)CA Business & Professions Code § 7026.1(a) The term “contractor” includes all of the following:
(1)CA Business & Professions Code § 7026.1(a)(1) Any person not exempt under Section 7053 who maintains or services air-conditioning, heating, or refrigeration equipment that is a fixed part of the structure to which it is attached.
(2)Copy CA Business & Professions Code § 7026.1(a)(2)
(A)Copy CA Business & Professions Code § 7026.1(a)(2)(A) Any person, consultant to an owner-builder, firm, association, organization, partnership, business trust, corporation, or company, who or which undertakes, offers to undertake, purports to have the capacity to undertake, or submits a bid to construct any building or home improvement project, or part thereof.
(B)CA Business & Professions Code § 7026.1(a)(2)(A)(B) For purposes of this paragraph, a consultant is a person, other than a public agency or an owner of privately owned real property to be improved, who meets either of the following criteria as it relates to work performed pursuant to a home improvement contract as defined in Section 7151.2:
(i)CA Business & Professions Code § 7026.1(a)(2)(A)(B)(i) Provides or oversees a bid for a construction project.
(ii)CA Business & Professions Code § 7026.1(a)(2)(A)(B)(ii) Arranges for and sets up work schedules for contractors and subcontractors and maintains oversight of a construction project.
(3)CA Business & Professions Code § 7026.1(a)(3) A temporary labor service agency that, as the employer, provides employees for the performance of work covered by this chapter. The provisions of this paragraph shall not apply if there is a properly licensed contractor who exercises supervision in accordance with Section 7068.1 and who is directly responsible for the final results of the work. Nothing in this paragraph shall require a qualifying individual, as provided in Section 7068, to be present during the supervision of work covered by this chapter. A contractor requesting the services of a temporary labor service agency shall provide his or her license number to that temporary labor service agency.
(4)CA Business & Professions Code § 7026.1(a)(4) Any person not otherwise exempt by this chapter, who performs tree removal, tree pruning, stump removal, or engages in tree or limb cabling or guying. The term contractor does not include a person performing the activities of a nurseryperson who in the normal course of routine work performs incidental pruning of trees, or guying of planted trees and their limbs. The term contractor does not include a gardener who in the normal course of routine work performs incidental pruning of trees measuring less than 15 feet in height after planting.
(5)CA Business & Professions Code § 7026.1(a)(5) Any person engaged in the business of drilling, digging, boring, or otherwise constructing, deepening, repairing, reperforating, or abandoning any water well, cathodic protection well, or monitoring well.
(b)CA Business & Professions Code § 7026.1(b) The term “contractor” or “consultant” does not include a common interest development manager, as defined in Section 11501, and a common interest development manager is not required to have a contractor’s license when performing management services, as defined in subdivision (d) of Section 11500.

Section § 7026.2

Explanation

This law defines what a 'contractor' is in the context of working with mobilehomes and related structures. It includes people who build, install, alter, or repair mobilehomes on-site. However, it does not apply to manufacturers of mobilehomes as long as the construction takes place off-site or they are only working according to a warranty. If manufacturers do work beyond warranty tasks or engage in on-site work with specific plans, they are considered contractors. A retailer with a mobilehome dealer's license is not a contractor if they use a licensed contractor for installation and provide written certification to the buyer. Additionally, it clarifies terms like 'mobilehome' and 'mobilehome accessory building or structure'.

(a)CA Business & Professions Code § 7026.2(a) For the purposes of this chapter, “contractor” includes any person engaged in the business of the construction, installation, alteration, repair, or preparation for moving of a mobilehome or mobilehome accessory buildings and structures upon a site for the purpose of occupancy as a dwelling.
(b)CA Business & Professions Code § 7026.2(b) “Contractor” does not include the manufacturer of the mobilehome or mobilehome accessory building or structure if it is constructed at a place other than the site upon which it is installed for the purpose of occupancy as a dwelling, and does not include the manufacturer when the manufacturer is solely performing work in compliance with the manufacturer’s warranty. “Contractor” includes the manufacturer if the manufacturer is engaged in onsite construction, alteration, or repair of a mobilehome or mobilehome accessory buildings and structures pursuant to specialized plans, specifications, or models, or any work other than in compliance with the manufacturer’s warranty.
(c)CA Business & Professions Code § 7026.2(c) “Contractor” does not include a seller of a manufactured home or mobilehome who holds a retail manufactured home or mobilehome dealer’s license under Chapter 7 (commencing with Section 18045) of Part 2 of Division 13 of the Health and Safety Code, if the installation of the manufactured home or mobilehome is to be performed by a licensed contractor and the seller certifies that fact in writing to the buyer prior to the performance of the installation. The certification shall include the name, business address, and contractor’s license number of the licensed contractor by whom the installation will be performed.
(d)CA Business & Professions Code § 7026.2(d) For the purposes of this chapter, the following terms have the following meanings:
(1)CA Business & Professions Code § 7026.2(d)(1) “Mobilehome” means a vehicle defined in Section 18008 of the Health and Safety Code.
(2)CA Business & Professions Code § 7026.2(d)(2) “Mobilehome accessory building or structure” means a building or structure defined in Section 18008.5 of the Health and Safety Code.
(3)CA Business & Professions Code § 7026.2(d)(3) “Manufactured home” means a structure defined in Section 18007 of the Health and Safety Code.

Section § 7026.3

Explanation
This section defines 'contractor' to include anyone who installs or arranges carpet installations when the carpet is attached to a building using standard trade methods. However, if a furniture retailer with the appropriate license sells and arranges the installation of carpet, they don't need a contractor's license as long as the actual installation is done by a licensed contractor. The retailer must also provide written certification to the buyer before the installation, including the licensed contractor's details.
For the purpose of this chapter, “contractor” includes any person who installs or contracts for the installation of carpet wherein the carpet is attached to the structure by any conventional method as determined by custom and usage in the trade; except that a seller of installed carpet who holds a retail furniture dealer’s license under Chapter 3 (commencing with Section 19000) of Division 8 shall not be required to have a contractor’s license if the installation of the carpet is performed by a licensed contractor and the seller so certifies in writing to the buyer prior to the performance of the installation, which certification shall include the name, business address, and contractor’s license number of the licensed contractor by whom the installation will be performed.

Section § 7026.11

Explanation

This law specifies that General Manufactured Housing Contractors, who hold a C-47 license, can work on manufactured homes, mobile homes, and multifamily manufactured homes. This is regardless of other laws and includes the types defined in the Health and Safety Code.

Notwithstanding any other provision of law, the permissible scope of work for the General Manufactured Housing Contractor (C-47) license classification set forth in Section 832.47 of Division 8 of Title 16 of the California Code of Regulations shall include manufactured homes, as defined in Section 18007 of the Health and Safety Code, mobilehomes, as defined in Section 18008 of the Health and Safety Code, and multifamily manufactured homes, as defined in Section 18008.7 of the Health and Safety Code.

Section § 7026.12

Explanation

This law says that only certain people can install fire protection systems (not including electrical alarm systems). One is a licensed fire protection contractor. Another is an owner-builder working on their own single-family home, but only if they are building one or two homes in a year on the same property, and the local authorities approve and inspect the plans and installation.

Except as provided in Section 7026.13, the installation of a fire protection system, excluding an electrical alarm system, shall be performed only by either of the following:
(a)CA Business & Professions Code § 7026.12(a) A contractor holding a fire protection contractor classification, as defined in the regulations of the board.
(b)CA Business & Professions Code § 7026.12(b) An owner-builder of an owner-occupied, single-family dwelling, if not more than two single-family dwellings on the same parcel are constructed within one year, plans are submitted to, and approved by, the city, county, or city and county authority, and the city, county, or city and county authority inspects and approves the installation.

Section § 7027

Explanation

If someone advertises themselves as a contractor or lists their business under a construction category in a directory or ad, they must follow contractor regulations, even if they are usually exempt from these rules.

Any person who advertises or puts out any sign or card or other device that would indicate to the public that he or she is a contractor, or who causes his or her name or business name to be included in a classified advertisement or directory under a classification for construction or work of improvement covered by this chapter is subject to the provisions of this chapter regardless of whether his or her operations as a builder are otherwise exempted.

Section § 7027.1

Explanation

If someone wants to advertise services for construction work in California, they must have the right type of contractor's license. It's illegal to advertise for this kind of work if you're not properly licensed. Advertising includes anything that promotes the work, like business cards, signs, or online listings. If someone does advertise without a license, they could be fined between $700 and $1,000 on top of any other penalties. Authorities can investigate and issue citations if they suspect a violation.

(a)CA Business & Professions Code § 7027.1(a) It is a misdemeanor for any person to advertise for construction or work of improvement covered by this chapter unless that person holds a valid license under this chapter in the classification so advertised, except that a licensed building or engineering contractor may advertise as a general contractor.
(b)CA Business & Professions Code § 7027.1(b) “Advertise,” as used in this section, includes, but not by way of limitation, the issuance of any card, sign, or device to any person, the causing, permitting, or allowing of any sign or marking on or in any building or structure, or in any newspaper, magazine, or by airwave or any electronic transmission, or in any directory under a listing for construction or work of improvement covered by this chapter, with or without any limiting qualifications.
(c)CA Business & Professions Code § 7027.1(c) A violation of this section is punishable by a fine of not less than seven hundred dollars ($700) and not more than one thousand dollars ($1,000), which fine shall be in addition to any other punishment imposed for a violation of this section.
(d)CA Business & Professions Code § 7027.1(d) If upon investigation, the registrar has probable cause to believe that an unlicensed individual is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7 or 7099.10.

Section § 7027.2

Explanation

In California, if someone isn't licensed to do construction work, they can still advertise for small construction jobs as long as the total cost of the job, including all materials and labor, is less than $1,000. However, they must clearly state in their advertisement that they are not licensed.

Notwithstanding any other provision of this chapter, a person who is not licensed pursuant to this chapter may advertise for construction work or a work of improvement covered by this chapter only if the aggregate contract price for labor, material, and all other items on a project or undertaking is less than one thousand dollars ($1,000) and the person states in the advertisement that the person is not licensed under this chapter.

Section § 7027.3

Explanation

This law states that anyone who knowingly uses a contractor's license number that isn't theirs, intending to deceive others, can be fined up to $10,000, jailed, or both. This punishment adds to any other penalties they might face under California law. If there's enough evidence, an unlicensed individual violating this rule can be cited by the registrar.

Any person, licensed or unlicensed, who willfully and intentionally uses, with intent to defraud, a contractor’s license number that does not correspond to the number on a currently valid contractor’s license held by that person, is punishable by a fine not exceeding ten thousand dollars ($10,000), or by imprisonment in state prison, or in county jail for not more than one year, or by both that fine and imprisonment. The penalty provided by this section is cumulative to the penalties available under all other laws of this state. If, upon investigation, the registrar has probable cause to believe that an unlicensed individual is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7.

Section § 7027.4

Explanation
Contractors in California must be clear and specific when advertising their insurance coverage. If they claim to be 'insured,' they need to state what kind of insurance they have, like liability or workers’ comp. It's also against the rules for contractors to say they are 'bonded' if they're talking about certain license or disciplinary bonds. The term 'advertise' includes things like business cards, signs on vehicles or buildings, and listings in directories or magazines.
(a)CA Business & Professions Code § 7027.4(a) It is a cause for discipline for any contractor to advertise that he or she is “insured” or has insurance without identifying in the advertisement the type of insurance, including, for example, “commercial general liability insurance” or “workers’ compensation insurance” that is carried by the contractor. The contractor may abbreviate the title of the type of insurance.
(b)CA Business & Professions Code § 7027.4(b) It is cause for discipline for a contractor to advertise that he or she is “bonded” if the reference is to a contractor’s license bond required pursuant to Section 7071.6 or to a disciplinary bond required pursuant to Section 7071.8.
(c)CA Business & Professions Code § 7027.4(c) “Advertise,” as used in this section, includes, but is not limited to, the issuance of any card, sign, or device to any person, the causing, permitting, or allowing of any sign or marking on or in any building or structure or business vehicle or in any newspaper, magazine, or by airwave or any electronic transmission, or in any directory under a listing for construction or work of improvement covered by this chapter, for the direct or indirect purpose of performing or offering to perform services that require a contractor’s license.

Section § 7027.5

Explanation

This law allows landscape contractors, who have the right license, to design systems and undertake specific tasks in landscape projects they supervise. They can make contracts for building swimming pools, spas, outdoor cooking areas, fireplaces, and rainwater systems if these are part of their landscape work. However, they need the appropriate licenses to do actual construction work that isn’t part of typical landscaping unless they hire specifically licensed subcontractors. Violations can lead to disciplinary actions, and they cannot perform work needing a professional engineer's license.

(a)CA Business & Professions Code § 7027.5(a) A landscape contractor working within the classification for which the license is issued may design systems or facilities for work to be performed and supervised by that contractor.
(b)CA Business & Professions Code § 7027.5(b) Notwithstanding any other provision of this chapter, a landscape contractor working within the classification for which the license is issued may enter into a prime contract for the construction of any of the following:
(1)CA Business & Professions Code § 7027.5(b)(1) A swimming pool, spa, or hot tub, provided that the improvements are included within the landscape project that the landscape contractor is supervising and the construction of any swimming pool, spa, or hot tub is subcontracted to a single licensed contractor holding a Swimming Pool (C-53) classification, as set forth in Section 832.53 of Title 16 of the California Code of Regulations, or performed by the landscape contractor if the landscape contractor also holds a Swimming Pool (C-53) classification. The contractor constructing the swimming pool, spa, or hot tub may subcontract with other appropriately licensed contractors for the completion of individual components of the construction.
(2)CA Business & Professions Code § 7027.5(b)(2) An outdoor cooking center, provided that the improvements are included within a residential landscape project that the contractor is supervising. For purposes of this subdivision, “outdoor cooking center” means an unenclosed area within a landscape that is used for the cooking or preparation of food or beverages.
(3)CA Business & Professions Code § 7027.5(b)(3) An outdoor fireplace, provided that it is included within a residential landscape project that the contractor is supervising and is not attached to a dwelling.
(4)CA Business & Professions Code § 7027.5(b)(4) A rainwater capture system, as defined in Section 10573 of the Water Code, used exclusively for landscape irrigation or as a water supply for a fountain, pond, or similar decorative water feature in a landscaping project.
(c)Copy CA Business & Professions Code § 7027.5(c)
(1)Copy CA Business & Professions Code § 7027.5(c)(1) Work performed in connection with a landscape project specified in paragraph (2), (3), or (4) of subdivision (b) that is outside of the field and scope of activities authorized to be performed under the Landscape Contractor (C-27) classification, as set forth in Section 832.27 of Title 16 of the California Code of Regulations, may only be performed by a landscape contractor if the landscape contractor also either holds an appropriate specialty license classification to perform the work or is licensed as a General Building contractor. If the landscape contractor neither holds an appropriate specialty license classification to perform the work nor is licensed as a General Building contractor, the work shall be performed by a Specialty contractor holding the appropriate license classification or by a General Building contractor performing work in accordance with the requirements of subdivision (b) of Section 7057.
(2)CA Business & Professions Code § 7027.5(c)(2) Notwithstanding paragraph (1), a landscape contractor performing work under the Landscape Contractor (C-27) classification, as set forth in Section 832.27 of Title 16 of the California Code of Regulations, may design and install all exterior components of a rainwater capture system, as defined in Section 10573 of the Water Code, that are not a part of, or attached to, a structure.
(d)CA Business & Professions Code § 7027.5(d) A violation of this section shall be cause for disciplinary action.
(e)CA Business & Professions Code § 7027.5(e) Nothing in this section authorizes a landscape contractor to engage in or perform activities that require a license pursuant to the Professional Engineers Act (Chapter 7 (commencing with Section 6700)).

Section § 7028

Explanation

This law makes it illegal for someone to work as a contractor in California without a valid license, unless they fall under an exemption. If you're caught doing so, it's considered a misdemeanor. On a first offense, you could be fined up to $5,000 or face up to six months in jail, or both. If you're caught again, the fines and jail time get more severe. A third offense could lead to even larger fines and up to a year in jail. Even if your license was revoked before, getting caught again makes you face stricter penalties. There's also a four-year window to charge someone with this offense. Lastly, if you hired an unlicensed contractor and suffered financially, you might get restitution, even if you didn't know they were unlicensed.

(a)CA Business & Professions Code § 7028(a) Unless exempted from this chapter, it is a misdemeanor for a person to engage in the business of, or act in the capacity of, a contractor within this state under either of the following conditions:
(1)CA Business & Professions Code § 7028(a)(1) The person is not licensed in accordance with this chapter.
(2)CA Business & Professions Code § 7028(a)(2) The person performs acts covered by this chapter under a license that is under suspension for failure to pay a civil penalty or to comply with an order of correction, pursuant to Section 7090.1, or for failure to resolve all outstanding final liabilities, pursuant to Section 7145.5.
(b)CA Business & Professions Code § 7028(b) A first conviction for the offense described in this section is punishable by a fine not exceeding five thousand dollars ($5,000) or by imprisonment in a county jail not exceeding six months, or by both that fine and imprisonment.
(c)CA Business & Professions Code § 7028(c) If a person has been previously convicted of the offense described in this section, unless the provisions of subdivision (d) are applicable, the court shall impose a fine of 20 percent of the contract price, or 20 percent of the aggregate payments made to, or at the direction of, the unlicensed person, or five thousand dollars ($5,000), whichever is greater, and, unless the sentence prescribed in subdivision (d) is imposed, the person shall be confined in a county jail for not less than 90 days, except in an unusual case where the interests of justice would be served by imposition of a lesser sentence or a fine. If the court imposes only a fine or a jail sentence of less than 90 days for second or subsequent convictions under this section, the court shall state the reasons for its sentencing choice on the record.
(d)CA Business & Professions Code § 7028(d) A third or subsequent conviction for the offense described in this section is punishable by a fine of not less than five thousand dollars ($5,000) nor more than the greater amount of ten thousand dollars ($10,000) or 20 percent of the contract price, or 20 percent of the aggregate payments made to, or at the direction of, the unlicensed person, and by imprisonment in a county jail for not more than one year or less than 90 days. The penalty provided by this subdivision is cumulative to the penalties available under all other laws of this state.
(e)CA Business & Professions Code § 7028(e) A person who violates this section is subject to the penalties prescribed in subdivision (d) if the person was named on a license that was previously revoked and, either in fact or under law, was held responsible for any act or omission resulting in the revocation.
(f)CA Business & Professions Code § 7028(f) If the unlicensed person engaging in the business of or acting in the capacity of a contractor has agreed to furnish materials and labor on an hourly basis, “the contract price” for the purposes of this section means the aggregate sum of the cost of materials and labor furnished and the cost of completing the work to be performed.
(g)CA Business & Professions Code § 7028(g) Notwithstanding any other law, an indictment for any violation of this section by an unlicensed person shall be found, or information or a complaint shall be filed, within four years from the date of the contract proposal, contract, completion, or abandonment of the work, whichever occurs last.
(h)CA Business & Professions Code § 7028(h) For any conviction under this section, a person who utilized the services of the unlicensed person is a victim of crime and is eligible, pursuant to subdivision (f) of Section 1202.4 of the Penal Code, for restitution for economic losses, regardless of whether he or she had knowledge that the person was unlicensed.
(i)CA Business & Professions Code § 7028(i) The changes made to this section by the act adding this subdivision are declaratory of existing law.

Section § 7028.1

Explanation

This law makes it illegal for contractors, whether they have a license or not, to do asbestos-related work or handle underground storage tanks unless they're properly certified. If caught, a first offense could lead to a fine between $1,000 and $3,000 and possibly losing their license. If they're caught again, they could face a heavier fine between $3,000 and $5,000, jail time for up to a year, or both, and they will lose their license.

It is a misdemeanor for any contractor, whether licensed or unlicensed, to perform or engage in asbestos-related work, as defined in Section 6501.8 of the Labor Code, without certification pursuant to Section 7058.5 of this code, or to perform or engage in a removal or remedial action, as defined in subdivision (d) of Section 7058.7, or, unless otherwise exempted by this chapter, to bid for the installation or removal of, or to install or remove, an underground storage tank, without certification pursuant to Section 7058.7. A contractor in violation of this section is subject to one of the following penalties:
(a)CA Business & Professions Code § 7028.1(a) Conviction of a first offense is punishable by a fine of not less than one thousand dollars ($1,000) or more than three thousand dollars ($3,000), and by possible revocation or suspension of any contractor’s license.
(b)CA Business & Professions Code § 7028.1(b) Conviction of a subsequent offense requires a fine of not less than three thousand dollars ($3,000) or more than five thousand dollars ($5,000), or imprisonment in the county jail not exceeding one year, or both the fine and imprisonment, and a mandatory action to suspend or revoke any contractor’s license.

Section § 7028.2

Explanation

This law states that if a contractor or employer breaks the rules in a certain area, the Attorney General, a district attorney, or a city prosecutor can file criminal charges against them. The legal action can happen in any county that has authority over where the wrongdoing occurred. If the court levies a penalty, the money goes to the office of the prosecutor who brought the charges.

A criminal complaint pursuant to this chapter may be brought by the Attorney General or by the district attorney or prosecuting attorney of any city, in any county in the state with jurisdiction over the contractor or employer, by reason of the contractor’s or employer’s act, or failure to act, within that jurisdiction. Any penalty assessed by the court shall be paid to the office of the prosecutor bringing the complaint.

Section § 7028.3

Explanation

This section allows the registrar to take legal action if someone who is supposed to have a contractor's license is violating the rules or if someone without a license is acting as a contractor. If these actions could significantly harm someone else, the registrar can seek a court order to stop the person from continuing these activities. This can result in temporary or permanent court orders to prevent further violations.

In addition to all other remedies, when it appears to the registrar, either upon complaint or otherwise, that a licensee has engaged in, or is engaging in, any act, practice, or transaction which constitutes a violation of this chapter whereby another person may be substantially injured, or that any person, who does not hold a state contractor’s license in any classification, has engaged in, or is engaging in, any act, practice, or transaction which constitutes a violation of this chapter, whether or not there is substantial injury, the registrar may, either through the Attorney General or through the district attorney of the county in which the act, practice, or transaction is alleged to have been committed, apply to the superior court of that county or any other county in which such person maintains a place of business or resides, for an injunction restraining such person from acting in the capacity of a contractor without a license in violation of this chapter, or from acting in violation of this chapter when another person may be substantially injured, and, upon a proper showing, a temporary restraining order, a preliminary injunction, or a permanent injunction shall be granted.

Section § 7028.4

Explanation

This law allows courts to stop (or 'enjoin') someone from breaking contractor laws if they don't have a proper state contractor's license. To get this court order, a licensed contractor, an association of contractors, a consumer who has been affected, a district attorney, or the Attorney General has to show that the person is continually violating these laws. Importantly, they don't need to prove that this violation causes severe harm, which is often needed in other cases.

In addition to the remedies set forth in Section 7028.3, on proper showing by (1) a licensed contractor, or an association of contractors, (2) a consumer affected by the violation, (3) a district attorney, or (4) the Attorney General, of a continuing violation of this chapter by a person who does not hold a state contractor’s license in any classification, an injunction shall issue by a court specified in Section 7028.3 at the request of any such party, prohibiting such violation. The plaintiff in any such action shall not be required to prove irreparable injury.

Section § 7028.5

Explanation

This law makes it illegal for anyone who has been in a management or leadership position of a licensed business entity, like a partnership or corporation, to work as a contractor on their own in California unless they have a valid contractor's license.

It is unlawful for a person who is or has been a partner, officer, director, manager, responsible managing employee, responsible managing member, responsible managing manager, or responsible managing officer of, or an individual who is listed in the personnel of record of, a licensed partnership, corporation, limited liability company, firm, association or other organization to individually engage in the business or individually act in the capacity of a contractor within this state without having a license in good standing to so engage or act.

Section § 7028.6

Explanation

This law allows the Registrar of Contractors to give citations and fines to people working as contractors in California if they do not have a valid license.

The Registrar of Contractors is hereby empowered to issue citations containing orders of abatement and civil penalties against persons acting in the capacity of or engaging in the business of a contractor within this state without having a license in good standing to so act or engage.

Section § 7028.7

Explanation

If someone is working as a contractor or salesperson in California without the proper license, the registrar can issue them a citation, unless they are legally exempt. Additionally, if the registrar learns that a public entity is planning to hire or has hired an unlicensed contractor, they must warn the entity that a citation might be issued. The citation will detail the violation and include a fine between $200 and $15,000, depending on the seriousness of the offense and any prior violations. The Contractors State License Board will set the rules for citations and fines, and these penalties are in addition to any other legal actions that might apply.

(a)CA Business & Professions Code § 7028.7(a) If upon inspection or investigation, either upon complaint or otherwise, the registrar has probable cause to believe that a person is acting in the capacity of or engaging in the business of a contractor or salesperson within this state without having a license or registration in good standing to so act or engage, and the person is not otherwise exempted from this chapter, the registrar shall issue a citation to that person.
(b)CA Business & Professions Code § 7028.7(b) Within 72 hours of receiving notice that a public entity is intending to award, or has awarded, a contract to an unlicensed contractor, the registrar shall give written notice to the public entity that a citation may be issued if a contract is awarded to an unlicensed contractor. If after receiving the written notice from the registrar that the public entity has awarded or awards the contract to an unlicensed contractor, the registrar may issue a citation to the responsible officer or employee of the public entity as specified in Section 7028.15.
(c)CA Business & Professions Code § 7028.7(c) Each citation shall be in writing and shall describe with particularity the basis of the citation. Notwithstanding Sections 125.9 and 148, each citation shall contain an order of abatement and an assessment of a civil penalty in an amount not less than two hundred dollars ($200) nor more than fifteen thousand dollars ($15,000).
(d)CA Business & Professions Code § 7028.7(d) With the approval of the Contractors State License Board, the registrar shall prescribe procedures for the issuance of a citation under this section. The board shall adopt regulations covering the assessment of a civil penalty that shall give due consideration to the gravity of the violation, and any history of previous violations.
(e)CA Business & Professions Code § 7028.7(e) The sanctions authorized under this section shall be separate from, and in addition to, all other remedies either civil or criminal.

Section § 7028.8

Explanation
This part of the law says that if someone is given a citation (a kind of formal notice) under a specific rule, it can be sent to their last known home or business address using certified mail.
Service of a citation issued under Section 7028.7 may be made by certified mail at the last known business address or residence address of the person cited.

Section § 7028.9

Explanation

This law states that a citation for a violation can be issued by the registrar either up to four years after the wrongdoing occurred or within 18 months after a complaint is filed, depending on which of these times is later.

A citation under Section 7028.7 shall be issued by the registrar within four years after the act or omission that is the basis for the citation or within 18 months after the date of the filing of the complaint with the registrar, whichever is later.

Section § 7028.10

Explanation

If someone receives a citation because of alleged violations, they have 15 working days to appeal to the registrar. They can challenge the claimed violations, the corrective actions ordered, or how much they are fined.

Any person served with a citation under Section 7028.7 may appeal to the registrar within 15 working days after service of the citation with respect to violations alleged, scope of the order of abatement, or amount of civil penalty assessed.

Section § 7028.11

Explanation

If someone receives a citation and doesn't inform the registrar within 15 working days that they want to appeal, the citation becomes final. This means it can't be reviewed later by a court or any agency. However, the registrar can extend the 15-day deadline if there's a good reason.

If within 15 working days after service of the citation, the person cited fails to notify the registrar that he or she intends to appeal the citation, the citation shall be deemed a final order of the registrar and not subject to review by any court or agency. The 15-day period may be extended by the registrar for good cause.

Section § 7028.12

Explanation

If someone is cited under Section 7028.7 and decides to contest it, they can notify the registrar to set up a hearing. After the hearing, the registrar will make a decision which might confirm, change, or cancel the citation, or suggest another solution. This process follows specific government procedures, and the registrar uses all the authority given by those procedures.

If the person cited under Section 7028.7 timely notifies the registrar that he or she intends to contest the citation, the registrar shall afford an opportunity for a hearing. The registrar shall thereafter issue a decision, based on findings of fact, affirming, modifying, or vacating the citation or directing other appropriate relief. The proceedings under this section shall be 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, and the registrar shall have all the powers granted therein.

Section § 7028.13

Explanation

This law explains what happens after a contractor is cited for breaking the rules and doesn't appeal that citation. The registrar can go to court to make the person pay a civil penalty (like a fine) and fix the problem they've been cited for. If someone is caught but didn't fight the citation, a simple showing of that citation can lead to a court ordering the penalty and fix. The registrar can also hire a collections agency to get the penalty money, but the contractor who was cited has to pay the collection costs. The registrar can sell the debt to someone else so they collect the penalty, but they can’t sell off the authority to enforce the fix. There's a timeline too: they have four years to collect penalties generally, but ten years if it was turned into a court judgment.

(a)CA Business & Professions Code § 7028.13(a) After the exhaustion of the review procedures provided for in Sections 7028.10 to 7028.12, inclusive, the registrar may apply to the appropriate superior court for a judgment in the amount of the civil penalty and an order compelling the cited person to comply with the order of abatement. The application, which shall include a certified copy of the final order of the registrar, shall constitute a sufficient showing to warrant the issuance of the judgment and order. If the cited person did not appeal the citation, a certified copy of the citation and proof of service, and a certification that the person cited is not or was not a licensed contractor or applicant for a license at the time of issuance of the citation, shall constitute a sufficient showing to warrant the issuance of the judgment and order.
(b)CA Business & Professions Code § 7028.13(b) Notwithstanding any other provision of law, the registrar may delegate the collection of the civil penalty for any citation issued to any person or entity legally authorized to engage in collections. Costs of collection shall be borne by the person cited. The registrar shall not delegate the authority to enforce the order of abatement.
(c)CA Business & Professions Code § 7028.13(c) Notwithstanding any other provision of law, the registrar shall have the authority to assign the rights to the civil penalty, or a portion thereof, for adequate consideration. The assignee and the registrar shall have all the rights afforded under the ordinary laws of assignment of rights and delegation of duties. The registrar shall not assign the order of abatement. The assignee may apply to the appropriate superior court for a judgment based upon the assigned rights upon the same evidentiary showing as set forth in subdivision (a).
(d)CA Business & Professions Code § 7028.13(d) Notwithstanding any other provision of law, including subdivisions (a) and (b) of Section 340 of the Code of Civil Procedure, the registrar or his or her designee or assignee shall have four years from the date of the final order to collect civil penalties except that the registrar or his or her designee or assignee shall have 10 years from the date of the judgment to enforce civil penalties on citations that have been converted to judgments through the process described in subdivisions (a) and (c).

Section § 7028.14

Explanation

If someone is hit with a civil fine for doing contractor work without a license, the registrar can reduce that fine. However, first, the person must earn a contractor’s license and fix any damage they caused to the public.

Notwithstanding any other provision of the law, the registrar may waive part of the civil penalty if the person against whom the civil penalty is assessed satisfactorily completes all the requirements for, and is issued, a contractor’s license. Any outstanding injury to the public shall be satisfactorily settled prior to issuance of the license.

Section § 7028.15

Explanation

If you submit a bid to work as a contractor in California without a proper license, it's a misdemeanor unless you fall under certain exemptions. If you're caught doing this again, you could face a hefty fine or jail time. If your contract includes providing materials and labor, your fine is based on their total cost. Exceptions apply for certain joint ventures and professional collaborations. Unlicensed bids are considered invalid and any contract made with an unlicensed contractor is void. Public agencies must verify contractor licenses before awarding contracts. If they knowingly hire unlicensed contractors, the registrar can penalize them. However, if a public agency checked and didn’t get a timely response from the board, they won’t be penalized.

(a)CA Business & Professions Code § 7028.15(a) It is a misdemeanor for any person to submit a bid to a public agency in order to engage in the business or act in the capacity of a contractor within this state without having a license therefor, except in any of the following cases:
(1)CA Business & Professions Code § 7028.15(a)(1) The person is particularly exempted from this chapter.
(2)CA Business & Professions Code § 7028.15(a)(2) The bid is submitted on a state project governed by Section 10164 of the Public Contract Code or on any local agency project governed by Section 20103.5 of the Public Contract Code.
(b)CA Business & Professions Code § 7028.15(b) If a person has been previously convicted of the offense described in this section, the court shall impose a fine of 20 percent of the price of the contract under which the unlicensed person performed contracting work, or four thousand five hundred dollars ($4,500), whichever is greater, or imprisonment in the county jail for not less than 10 days nor more than six months, or both.
In the event the person performing the contracting work has agreed to furnish materials and labor on an hourly basis, “the price of the contract” for the purposes of this subdivision means the aggregate sum of the cost of materials and labor furnished and the cost of completing the work to be performed.
(c)CA Business & Professions Code § 7028.15(c) This section shall not apply to a joint venture license, as required by Section 7029.1. However, at the time of making a bid as a joint venture, each person submitting the bid shall be subject to this section with respect to his or her individual licensure.
(d)CA Business & Professions Code § 7028.15(d) This section shall not affect the right or ability of a licensed architect, land surveyor, or registered professional engineer to form joint ventures with licensed contractors to render services within the scope of their respective practices.
(e)CA Business & Professions Code § 7028.15(e) Unless one of the foregoing exceptions applies, a bid submitted to a public agency by a contractor who is not licensed in accordance with this chapter shall be considered nonresponsive and shall be rejected by the public agency. Unless one of the foregoing exceptions applies, a local public agency shall, before awarding a contract or issuing a purchase order, verify that the contractor was properly licensed when the contractor submitted the bid. Notwithstanding any other provision of law, unless one of the foregoing exceptions applies, the registrar may issue a citation to any public officer or employee of a public entity who knowingly awards a contract or issues a purchase order to a contractor who is not licensed pursuant to this chapter. The amount of civil penalties, appeal, and finality of such citations shall be subject to Sections 7028.7 to 7028.13, inclusive. Any contract awarded to, or any purchase order issued to, a contractor who is not licensed pursuant to this chapter is void.
(f)CA Business & Professions Code § 7028.15(f) Any compliance or noncompliance with subdivision (e) of this section, as added by Chapter 863 of the Statutes of 1989, shall not invalidate any contract or bid awarded by a public agency during which time that subdivision was in effect.
(g)CA Business & Professions Code § 7028.15(g) A public employee or officer shall not be subject to a citation pursuant to this section if the public employee, officer, or employing agency made an inquiry to the board for the purposes of verifying the license status of any person or contractor and the board failed to respond to the inquiry within three business days. For purposes of this section, a telephone response by the board shall be deemed sufficient.

Section § 7028.16

Explanation

If someone works as a contractor to repair or improve property without a license, especially after a natural disaster when an emergency has been declared, they could face severe penalties. This includes fines up to $10,000, imprisonment for up to three years, or both. Even if a homeowner or property owner didn't know the contractor was unlicensed, they are considered a crime victim.

A person who engages in the business or acts in the capacity of a contractor, without having a license therefor, in connection with the offer or performance of repairs or improvements to a residential or nonresidential structure or property, or by adding to, or subtracting from, grounds in connection therewith, for damage or destruction caused by a natural disaster for which a state of emergency is proclaimed by the Governor pursuant to Section 8625 of the Government Code, or for which an emergency or major disaster is declared by the President of the United States, shall be punished by a fine up to ten thousand dollars ($10,000), or by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for 16 months, or for two or three years, or by both that fine and imprisonment, or by a fine up to one thousand dollars ($1,000), or by imprisonment in a county jail not exceeding one year, or by both that fine and imprisonment. In addition, a person who utilized the services of the unlicensed contractor is a victim of crime regardless of whether that person had knowledge that the contractor was unlicensed.

Section § 7028.17

Explanation

If someone isn't licensed and ignores a citation after it becomes final, they're committing a misdemeanor, which is a type of crime. If they're convicted, any fines from this will be distributed differently depending on who brought the legal action. If a district attorney brought it, the money goes to the county treasury and is used by the district attorney. If a city attorney or prosecutor brought it, the fine goes to the city's treasury for their use.

(a)CA Business & Professions Code § 7028.17(a) The failure of an unlicensed individual to comply with a citation after it is final is a misdemeanor.
(b)CA Business & Professions Code § 7028.17(b) Notwithstanding Section 1462.5 or 1463 of the Penal Code or any other provision of law, any fine collected upon conviction in a criminal action brought under this section shall be distributed as follows:
(1)CA Business & Professions Code § 7028.17(b)(1) If the action is brought by a district attorney, any fine collected shall be paid to the treasurer of the county in which the judgment was entered to be designated for use by the district attorney.
(2)CA Business & Professions Code § 7028.17(b)(2) If the action is brought by a city attorney or city prosecutor, any fine collected shall be paid to the treasurer of the city in which the judgment was entered, to be designated for use by the city attorney.

Section § 7029

Explanation

This law explains that a joint venture can get a special type of license if all the entities involved have current and good-standing individual licenses. The license can cover any field where at least one entity is already licensed. However, if any of the entities loses their license status, the joint venture's license is suspended until all parties regain good standing.

A joint venture license is a license issued to any combination of individuals, corporations, limited liability companies, partnerships, or other joint ventures, each of which holds a current, active license in good standing. A joint venture license may be issued in any classification in which at least one of the entities is licensed. An active joint venture license shall be automatically suspended by operation of law during any period in which any member of the entity does not hold a current, active license in good standing.

Section § 7029.1

Explanation

This law states that if two or more contractors, each with their own license, want to work together on a project as a joint venture, they must first get a special joint venture license. While contractors can submit bids together before getting this license, failing to actually obtain it before the project starts can result in penalties. Violating this rule can lead to disciplinary action against the contractors involved.

(a)CA Business & Professions Code § 7029.1(a) Except as provided in this section, it is unlawful for any two or more licensees, each of whom has been issued a license to act separately in the capacity of a contractor within this state, to be awarded a contract jointly or otherwise act as a contractor without first having secured a joint venture license in accordance with the provisions of this chapter.
(b)CA Business & Professions Code § 7029.1(b) Prior to obtaining a joint venture license, contractors licensed in accordance with this chapter may jointly bid for the performance of work covered by this section. If a combination of licensees submit a bid for the performance of work for which a joint venture license is required, a failure to obtain that license shall not prevent the imposition of any penalty specified by law for the failure of a contractor who submits a bid to enter into a contract pursuant to the bid.
(c)CA Business & Professions Code § 7029.1(c) A violation of this section constitutes a cause for disciplinary action.

Section § 7029.5

Explanation

If you're a plumbing, sign, or well-drilling contractor in California, you must make sure your business name, address, and license number are clearly displayed on both sides of your work vehicles in letters at least 1.5 inches high. This rule also applies to drill rigs used for water wells. Not following these rules can lead to disciplinary actions.

Every C-36 plumbing contractor, C-45 sign contractor, and C-57 well-drilling contractor licensed under this chapter shall have displayed on each side of each motor vehicle used in his or her business, for which a commercial vehicle registration fee has been paid pursuant to Article 3 (commencing with Section 9400) of Chapter 6 of Division 3 of the Vehicle Code, his or her name, permanent business address, and contractor’s license number, all in letters and numerals not less than 11/2 inches high.
The identification requirements of this section shall also apply to any drill rig used for the drilling of water wells.
Failure to comply with this section constitutes a cause for disciplinary action.

Section § 7029.6

Explanation

If you're a licensed contractor in California (not including those mentioned in a different section), you must display your business name and license number on any commercial vehicle used for your construction business. This information should be clearly visible and printed in large text that's at least three-quarters of an inch tall and wide.

Except for contractors identified in Section 7029.5, every contractor licensed under this chapter shall have displayed, in or on each motor vehicle used in his or her construction business, for which a commercial vehicle registration fee has been paid pursuant to Article 3 (commencing with Section 9400) of Chapter 6 of Division 3 of the Vehicle Code, his or her business name and contractors’ license number in a clearly visible location in print type of at least 72-point font or three-quarters of an inch in height and width.

Section § 7030

Explanation

Contractors in California need to include certain statements in their contracts to inform clients about the Contractors State License Board (CSLB). If a contractor is the main one on a project, they must use a 10-point font to tell clients that complaints about their work can be investigated by CSLB if filed within set time limits. For home improvement and service/repair contracts, a more detailed statement with 12-point font is required, covering information about using licensed contractors, how to file complaints, and how to contact CSLB. Not following these requirements can lead to disciplinary action against the contractor.

(a)CA Business & Professions Code § 7030(a) Except for contractors writing home improvement contracts pursuant to Section 7151.2 and contractors writing service and repair contracts pursuant to Section 7159.10, every person licensed pursuant to this chapter shall include the following statement in at least 10-point type on all written contracts with respect to which the person is a prime contractor:
“Contractors are required by law to be licensed and regulated by the Contractors State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within 10 years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors State License Board, P.O. Box 26000, Sacramento, CA 95826.”
(b)CA Business & Professions Code § 7030(b) Every person licensed pursuant to this chapter shall include the following statement in at least 12-point type in all home improvement contracts written pursuant to Section 7151.2 and service and repair contracts written pursuant to Section 7159.10:
“Information about the Contractors State License Board (CSLB): CSLB is the state consumer protection agency that licenses and regulates construction contractors.
Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions and civil judgments that are reported to CSLB.
Use only licensed contractors. If you file a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor’s employees.
For more information:
Visit CSLB’s internet website at www.cslb.ca.gov
Call CSLB at 800-321-CSLB (2752)
Write CSLB at P.O. Box 26000, Sacramento, CA 95826.”
(c)CA Business & Professions Code § 7030(c) Failure to comply with the notice requirements set forth in subdivision (a) or (b) of this section is cause for disciplinary action.

Section § 7030.1

Explanation

If a contractor has their license suspended or revoked twice within eight years, they must inform clients about any such disciplinary actions before starting work on small residential properties. This information can be included in a bid or estimate. Failing to disclose these details results in increasing fines: $1,000 for the first violation, $2,500 for the second, and $5,000 plus a one-year license suspension for the third. A fourth violation leads to revocation of the contractor's license.

(a)CA Business & Professions Code § 7030.1(a) A contractor, who has his or her license suspended or revoked two or more times within an eight-year period, shall disclose either in capital letters in 10-point roman boldface type or in contrasting red print in at least 8-point roman boldface type, in a document provided prior to entering into a contract to perform work on residential property with four or fewer units, any disciplinary license suspension, or license revocation during the last eight years resulting from any violation of this chapter by the contractor, whether or not the suspension or revocation was stayed.
(b)CA Business & Professions Code § 7030.1(b) The disclosure notice required by this section may be provided in a bid, estimate, or other document prior to entering into a contract.
(c)CA Business & Professions Code § 7030.1(c) A violation of this section is subject to the following penalties:
(1)CA Business & Professions Code § 7030.1(c)(1) A penalty of one thousand dollars ($1,000) shall be assessed for the first violation.
(2)CA Business & Professions Code § 7030.1(c)(2) A penalty of two thousand five hundred dollars ($2,500) shall be assessed for the second violation.
(3)CA Business & Professions Code § 7030.1(c)(3) A penalty of five thousand dollars ($5,000) shall be assessed for a third violation in addition to a one-year suspension of license by operation of law.
(4)CA Business & Professions Code § 7030.1(c)(4) A fourth violation shall result in the revocation of license in accordance with this chapter.

Section § 7030.5

Explanation

If you hold a contractor's license in California, you must display your license number in key places: on all construction contracts, subcontracts, bid requests, and any advertisements.

Every person licensed pursuant to this chapter shall include his license number in: (a) all construction contracts; (b) subcontracts and calls for bid; and (c) all forms of advertising, as prescribed by the registrar of contractors, used by such a person.

Section § 7031

Explanation

This law states that contractors in California must have a valid contractor's license to sue for payment or enforce a contract in court. If a contractor is not properly licensed, they cannot collect money for their work, even if they did the job well. It also allows people who hired unlicensed contractors to get their money back. If there's a dispute about whether a contractor was licensed, the contractor has to prove they were licensed by showing a verified certificate. The law doesn't allow exceptions for those who have never been licensed, but if a contractor was previously licensed and acted in good faith to keep their license, the court might allow some leniency. These rules apply to contracts made after January 1, 1992, with specific exceptions for cases already underway by 1995.

(a)CA Business & Professions Code § 7031(a) Except as provided in subdivision (e), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person, except that this prohibition shall not apply to contractors who are each individually licensed under this chapter but who fail to comply with Section 7029.
(b)CA Business & Professions Code § 7031(b) Except as provided in subdivision (e), a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract.
(c)CA Business & Professions Code § 7031(c) A security interest taken to secure any payment for the performance of any act or contract for which a license is required by this chapter is unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.
(d)CA Business & Professions Code § 7031(d) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the Contractors State License Board which establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors at all times during the performance of any act or contract covered by the action. Nothing in this subdivision shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee.
(e)CA Business & Professions Code § 7031(e) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.
(f)CA Business & Professions Code § 7031(f) The exceptions to the prohibition against the application of the judicial doctrine of substantial compliance found in subdivision (e) shall apply to all contracts entered into on or after January 1, 1992, and to all actions or arbitrations arising therefrom, except that the amendments to subdivisions (e) and (f) enacted during the 1994 portion of the 1993–94 Regular Session of the Legislature shall not apply to either of the following:
(1)CA Business & Professions Code § 7031(f)(1) Any legal action or arbitration commenced prior to January 1, 1995, regardless of the date on which the parties entered into the contract.
(2)CA Business & Professions Code § 7031(f)(2) Any legal action or arbitration commenced on or after January 1, 1995, if the legal action or arbitration was commenced prior to January 1, 1995, and was subsequently dismissed.

Section § 7031.5

Explanation

If you're in a county or city that requires a permit for building work, you'll need to prove you're a licensed contractor before getting that permit. You'll do this by signing a statement that includes your license number or explains why you don't need one. If you break this rule, you could be fined up to $500.

Each county or city which requires the issuance of a permit as a condition precedent to the construction, alteration, improvement, demolition or repair of any building or structure shall also require that each applicant for such a permit file as a condition precedent to the issuance of a permit a statement which he has prepared and signed stating that the applicant is licensed under the provisions of this chapter, giving the number of the license and stating that it is in full force and effect, or, if the applicant is exempt from the provisions of this chapter, the basis for the alleged exemption.
Any violation of this section by any applicant for a permit shall be subject to a civil penalty of not more than five hundred dollars ($500).

Section § 7032

Explanation

This law says that cities and counties in California can have their own rules about building projects, like how they should be inspected and approved. They can use permits and checks to make sure buildings meet state and local laws that protect public health and safety. Cities and counties can report contractors to a state registrar if they break local building codes, and these complaints might be addressed faster. But, they can't make new rules about what qualifications contractors need to have.

Nothing in this chapter shall limit the power of a city or county to regulate the quality and character of installations made by contractors through a system of permits and inspections which are designed to secure compliance with and aid in the enforcement of applicable state and local building laws, or to enforce other local laws necessary for the protection of the public health and safety. Nothing in this chapter shall limit the power of a city or county to adopt any system of permits requiring submission to and approval by the city or county of plans and specifications for an installation prior to the commencement of construction of the installation.
Cities or counties may direct complaints to the registrar against licensees based upon determinations by city or county enforcement officers of violations by such licensees of codes the enforcement of which is the responsibility of the complaining city or county. Such complaints shall to the extent determined to be necessary by the registrar be given priority in processing over other complaints.
Nothing contained in this section shall be construed as authorizing a city or county to enact regulations relating to the qualifications necessary to engage in the business of contracting.

Section § 7033

Explanation

If you're applying for or renewing a business license in a city or county in California, and your business is regulated by this chapter, you need to provide a signed statement confirming that you have the required license or proof that you're exempt from needing one.

Every city or city and county which requires the issuance of a business license as a condition precedent to engaging, within the city or city and county, in a business which is subject to regulation under this chapter, shall require that each licensee and each applicant for issuance or renewal of such license shall file, or have on file, with such city or city and county, a signed statement that such licensee or applicant is licensed under the provisions of this chapter and stating that the license is in full force and effect, or, if such licensee or applicant is exempt from the provisions of this chapter, he shall furnish proof of the facts which entitle him to such exemption.

Section § 7034

Explanation

This law states that contractors who need a license can't include certain invalid terms in their contracts, especially if those terms are made void by another legal section. Also, contractors can't force subcontractors, workers, or suppliers to give up their right to file a lien, which is a claim for unpaid work or materials, as this would violate another legal protection.

(a)CA Business & Professions Code § 7034(a) No contractor that is required to be licensed under this chapter shall insert in any contract, or be a party, with a subcontractor that is licensed under this chapter to any contract which contains a provision, clause, covenant, or agreement which is void or unenforceable under Section 2782 of the Civil Code.
(b)CA Business & Professions Code § 7034(b) No contractor that is required to be licensed under this chapter shall require a waiver of lien rights from any subcontractor, employee, or supplier in violation of Section 8122 of the Civil Code.

Section § 7035

Explanation

This law explains that a specialty contractor in California can't hire more than one subcontractor for the same job if they have the same type of license, unless certain conditions are met. The two exceptions are if the subcontractor has employees or if the contractor has a collective bargaining agreement addressing subcontracting. If a contractor breaks this rule, they could face disciplinary actions. Definitions for terms like 'employees' and 'specialty contractor' are clarified to avoid confusion.

(a)CA Business & Professions Code § 7035(a) A specialty contractor shall not enter into a contract for the performance of work on the same single project or undertaking with more than one subcontractor in the same license classification as the specialty contractor offering the contract, unless either of the following requirements are satisfied:
(1)CA Business & Professions Code § 7035(a)(1) The subcontractor employs persons who are classified as employees to perform work in that license classification on the single project or undertaking.
(2)CA Business & Professions Code § 7035(a)(2) The specialty contractor is a signatory to a bona fide collective bargaining agreement that covers the type of work being performed on the single project or undertaking and addresses the issue of subcontracting or subletting.
(b)CA Business & Professions Code § 7035(b) A violation of subdivision (a) shall constitute a cause for disciplinary action.
(c)CA Business & Professions Code § 7035(c) For purposes of this section, the following definitions shall apply:
(1)CA Business & Professions Code § 7035(c)(1) “Employs persons who are classified as employees” means the subcontractor classifies the individuals as employees rather than as independent contractors for purposes of the Labor Code.
(2)CA Business & Professions Code § 7035(c)(2) “Specialty contractor” has the same meaning as in Section 7058.