ContractorsApplication of Chapter
Section § 7025
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.
Section § 7025.1
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.
Section § 7026
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'.
Section § 7026.1
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.
Section § 7026.2
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'.
Section § 7026.3
Section § 7026.11
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.
Section § 7026.12
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.
Section § 7027
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.
Section § 7027.1
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.
Section § 7027.2
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.
Section § 7027.3
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.
Section § 7027.4
Section § 7027.5
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.
Section § 7028
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.
Section § 7028.1
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.
Section § 7028.2
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.
Section § 7028.3
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.
Section § 7028.4
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.
Section § 7028.5
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.
Section § 7028.6
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.
Section § 7028.7
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.
Section § 7028.8
Section § 7028.9
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.
Section § 7028.10
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.
Section § 7028.11
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.
Section § 7028.12
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.
Section § 7028.13
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.
Section § 7028.14
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.
Section § 7028.15
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.
Section § 7028.16
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.
Section § 7028.17
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.
Section § 7029
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.
Section § 7029.1
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.
Section § 7029.5
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.
Section § 7029.6
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.
Section § 7030
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.
Section § 7030.1
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.
Section § 7030.5
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.
Section § 7031
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.
Section § 7031.5
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.
Section § 7032
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.
Section § 7033
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.
Section § 7034
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.
Section § 7035
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.