Section § 7090

Explanation

This section gives the registrar the authority to investigate and discipline contractors, home improvement salespeople, or any applicants if they break certain rules. The registrar can deny, suspend, or revoke a license based on misconduct. Even if a contractor was working on projects usually exempt from scrutiny under certain conditions, they can still face penalties. If a contractor knowingly violates building law requirements, they will face disciplinary action unless it involves small, inexpensive repairs. In cases where construction is done without a permit, it's presumed to be a willful violation. In any disciplinary hearing, the registrar must prove with clear evidence that discipline is justified.

The registrar may upon his or her own motion and shall upon the verified complaint in writing of any person, investigate the actions of any applicant, contractor, or home improvement salesperson within the state and may deny the licensure or the renewal of licensure of, or cite, temporarily suspend, or permanently revoke any license or registration if the applicant, licensee, or registrant, is guilty of or commits any one or more of the acts or omissions constituting causes for disciplinary action.
The registrar may proceed to take disciplinary action as in this article provided against an applicant or a person licensed or registered under the provisions of this chapter even though the grounds or cause for such disciplinary action arose upon projects or while the applicant, licensee, or registrant was acting in a capacity or under circumstances or facts which, under the provisions of Sections 7044, 7045, 7046, and 7048, would otherwise exempt the person or his or her operations from the provisions of this chapter.
Notwithstanding any provision of this chapter, if the registrar finds that any contractor licensed or registered under the provisions of this chapter has willfully and deliberately violated any state or local law relating to the issuance of building permits, other than failure to obtain a county or city permit for repair, maintenance, and adjustment of equipment where such repair, maintenance, or adjustment is valued at less than five hundred dollars ($500) for labor or materials, or where the repair of a part or component part of mechanical equipment consists of replacing such part or component part of mechanical equipment in need of repair with the identical part or component part, the registrar shall take disciplinary action against the contractor’s license in accordance with this chapter.
For the purpose of this section, there shall be a rebuttable presumption affecting the burden of proof that construction performed without a permit is a willful and deliberate violation.
For the purposes of this section, with respect to administrative proceedings or hearings to suspend or revoke a contractor’s license, the registrar at all times shall have the burden of proof to establish by clear and convincing evidence that he or she is entitled to the relief sought in the petition.

Section § 7090.1

Explanation

If a contractor fails to pay a fine, obey a correction order, or pay an injured party, their license will automatically be suspended 30 days after the noncompliance. The contractor will be notified of this suspension and has 15 days to contest it. If they comply with the order, the license can be reinstated. If not reinstated within 90 days, the license is revoked. The registrar can delay the revocation for a valid reason, but only up to a year. Additionally, the contractor cannot serve in certain roles, like officer or manager, for other license holders during the revocation period. If they leave a role, a replacement must be found within 90 days to avoid suspension of that license.

(a)Copy CA Business & Professions Code § 7090.1(a)
(1)Copy CA Business & Professions Code § 7090.1(a)(1) Notwithstanding any other provisions of law, the failure to pay a civil penalty, or to comply with an order of correction or an order to pay a specified sum to an injured party in lieu of correction once the order has become final, shall result in the automatic suspension of a license by operation of law 30 days after noncompliance with the terms of the order.
(2)CA Business & Professions Code § 7090.1(a)(2) The registrar shall notify the licensee in writing of the failure to comply with the final order and that the license shall be suspended 30 days from the date of the notice.
(3)CA Business & Professions Code § 7090.1(a)(3) The licensee may contest the determination of noncompliance within 15 days after service of the notice, by written notice to the registrar. Upon receipt of the written notice, the registrar may reconsider the determination and after reconsideration may affirm or set aside the suspension.
(4)CA Business & Professions Code § 7090.1(a)(4) Reinstatement may be made at any time following the suspension by complying with the final order of the citation. If no reinstatement of the license is made within 90 days of the date of the automatic suspension, the cited license and any other contractor’s license issued to the licensee shall be automatically revoked by operation of law for a period to be determined by the registrar pursuant to Section 7102.
(5)CA Business & Professions Code § 7090.1(a)(5) The registrar may delay, for good cause, the revocation of a contractor’s license for failure to comply with the final order of the citation. The delay in the revocation of the license shall not exceed one year. When seeking a delay of the revocation of his or her license, a licensee shall apply to the registrar in writing prior to the date of the revocation of the licensee’s license by operation of law and state the reasons that establish good cause for the delay. The registrar’s power to grant a delay of the revocation shall expire upon the effective date of the revocation of the licensee’s license by operation of law.
(b)CA Business & Professions Code § 7090.1(b) The cited licensee shall also be automatically prohibited from serving as an officer, director, associate, partner, manager, or qualifying individual of another licensee, for the period determined by the registrar, and the employment, election, or association of that person by a licensee shall constitute grounds for disciplinary action. A qualifier disassociated pursuant to this section shall be replaced within 90 days of the date of disassociation. Upon failure to replace the qualifier within 90 days of the prohibition, the license of the other licensee shall be automatically suspended or the qualifier’s classification removed at the end of the 90 days.

Section § 7090.5

Explanation

If someone with a license does something dishonest that can lead to discipline, fixing the problem they caused doesn't stop further action against them. Also, if they have a pattern of wrongdoings and they fix each one to avoid penalties, that still won't prevent disciplinary actions.

In the event a licensee commits a fraudulent act which is a ground for disciplinary action under Section 7116 of this article, the correction of any condition resulting from such act shall not in and of itself preclude the registrar from taking disciplinary action under this article.
If the registrar finds a licensee has engaged in repeated acts which would be grounds for disciplinary action under this article, and if by correction of conditions resulting from those acts the licensee avoided disciplinary action as to each individual act, the correction of those conditions shall not in and of itself preclude the registrar from taking disciplinary action under this article.

Section § 7091

Explanation

This law sets time limits on when complaints and disciplinary actions can be brought against licensed contractors for various violations. For visible issues (patent acts), complaints must be filed within four years, while for hidden problems (latent acts), the deadline is ten years. If a contractor breaches a written warranty, action must be taken within 18 months after the warranty ends. Complaints related to fraud must be filed within two years of discovery, and actions related to criminal convictions must also be filed within two years after discovery. The proceedings are governed by specific government code rules, and this law does not change the rules for taking action against a surety or bond.

(a)Copy CA Business & Professions Code § 7091(a)
(1)Copy CA Business & Professions Code § 7091(a)(1) A complaint against a licensee alleging commission of any patent acts or omissions that may be grounds for legal action shall be filed in writing with the registrar within four years after the act or omission alleged as the ground for the disciplinary action.
(2)CA Business & Professions Code § 7091(a)(2) A disciplinary action against a licensee relevant to this subdivision shall be filed or a referral to the arbitration program outlined in Section 7085 shall be referred within four years after the patent act or omission alleged as the ground for disciplinary action or arbitration or within 18 months from the date of the filing of the complaint with the registrar, whichever is later.
(b)Copy CA Business & Professions Code § 7091(b)
(1)Copy CA Business & Professions Code § 7091(b)(1) A complaint against a licensee alleging commission of any latent acts or omissions that may be grounds for legal action pursuant to subdivision (a) of Section 7109 regarding structural defects, as defined by regulation, shall be filed in writing with the registrar within 10 years after the act or omission alleged as the ground for the disciplinary action.
(2)CA Business & Professions Code § 7091(b)(2) A disciplinary action against a licensee relevant to this subdivision shall be filed within 10 years after the latent act or omission alleged as the ground for disciplinary action or within 18 months from the date of the filing of the complaint with the registrar, whichever is later. As used in this subdivision “latent act or omission” means an act or omission that is not apparent by reasonable inspection.
(c)CA Business & Professions Code § 7091(c) A disciplinary action alleging a violation of Section 7112 shall be filed within two years after the discovery by the registrar or by the board of the alleged facts constituting the fraud or misrepresentation prohibited by the section.
(d)CA Business & Professions Code § 7091(d) With respect to a licensee who has been convicted of a crime and, as a result of that conviction is subject to discipline under Section 7123, the disciplinary action shall be filed within two years after the discovery of the conviction by the registrar or by the board.
(e)CA Business & Professions Code § 7091(e) A disciplinary action regarding an alleged breach of an express, written warranty issued by the contractor shall be filed not later than 18 months from the expiration of the warranty.
(f)CA Business & Professions Code § 7091(f) The proceedings under this article 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.
(g)CA Business & Professions Code § 7091(g) Nothing in this section shall be construed to affect the liability of a surety or the period of limitations prescribed by law for the commencement of actions against a surety or lawful money or cashier’s check deposited pursuant to paragraph (1) of subdivision (a) of Section 995.710 of the Code of Civil Procedure.

Section § 7095

Explanation

This law section explains the actions that can be taken against a contractor's license following a hearing. It allows for a complete suspension of all contractor activities, but permits finishing current contracts if evidenced at the hearing. The law can require the contractor to meet specific conditions before applying for license reinstatement. It also allows for probationary conditions where failure to comply will end the stay of execution and be treated as disciplinary action. Conditions may include paying restitution to those harmed, covering investigation and enforcement costs, completing specific courses, or passing exams.

(a)CA Business & Professions Code § 7095(a) The decision may:
(1)CA Business & Professions Code § 7095(a)(1) Provide for the immediate complete suspension by the licensee of all operations as a contractor during the period fixed by the decision.
(2)CA Business & Professions Code § 7095(a)(2) Permit the licensee to complete any or all contracts shown by competent evidence taken at the hearing to be then uncompleted.
(3)CA Business & Professions Code § 7095(a)(3) Impose upon the licensee compliance with such specific terms and conditions as may be just in connection with the licensee’s operations as a contractor disclosed at the hearing and may further provide that until those terms and conditions are complied with no application for restoration of the suspended or revoked license shall be accepted by the registrar.
(4)Copy CA Business & Professions Code § 7095(a)(4)
(A)Copy CA Business & Professions Code § 7095(a)(4)(A) Provide for the stay of execution of the decision pending completion of specified terms and conditions of probation.
(B)CA Business & Professions Code § 7095(a)(4)(A)(B) Failure to fully comply with the terms and conditions of probation set pursuant to subparagraph (A) may result in automatic termination of the stay of execution without further notice. If a stay of execution is terminated pursuant to this subparagraph, the decision shall be considered a disciplinary action within the meaning of this chapter.
(b)CA Business & Professions Code § 7095(b) The specific terms and conditions imposed pursuant to paragraph (3) or (4) of subdivision (a) may include, but are not limited to, any of the following:
(1)CA Business & Professions Code § 7095(b)(1) Payment of restitution to persons injured as a result of the violation.
(2)CA Business & Professions Code § 7095(b)(2) Payment of the costs of investigation and enforcement pursuant to Section 125.3.
(3)CA Business & Professions Code § 7095(b)(3) Enrollment in, and completion of, specified administrative or trade-specific coursework.
(4)CA Business & Professions Code § 7095(b)(4) Successful completion of the board’s law and business examination or trade examination, as appropriate.
(5)CA Business & Professions Code § 7095(b)(5) Any further terms and conditions as are set forth for specified violations in the board’s disciplinary guidelines in Section 871 of Title 16 of the California Code of Regulations.

Section § 7096

Explanation

This law defines who is considered a 'licensee' for the purposes of this chapter. The term includes individuals and various business entities like partnerships and corporations. It also covers certain key personnel, such as managing officers or members, who are responsible for the licensing under another specific section.

For the purposes of this chapter, the term “licensee” shall include an individual, partnership, corporation, limited liability company, joint venture, or any combination or organization licensed under this chapter, and shall also include any named responsible managing officer, responsible managing manager, responsible managing member, or personnel of that licentiate whose appearance has qualified the licentiate under the provisions of Section 7068.

Section § 7097

Explanation

If a person's contractor license has been suspended because of certain violations or accusations, then any other licenses they hold or are connected to can also be suspended without any extra warning.

Notwithstanding the provisions of Sections 7121 and 7122, when any license has been suspended by a decision of the registrar pursuant to an accusation or pursuant to subdivision (b) of Section 7071.17, Section 7085.6 or 7090.1, any additional license issued under this chapter in the name of the licensee or for which the licensee furnished qualifying experience and appearance under the provisions of Section 7068, may be suspended by the registrar without further notice.

Section § 7098

Explanation

Even if you're not considering certain other rules, if someone has their professional license canceled, any other similar licenses they hold or helped qualify for can also be canceled right away without warning.

Notwithstanding the provisions of Sections 7121 and 7122, when any license has been revoked under the provisions of this chapter, any additional license issued under this chapter in the name of the licensee or for which the licensee furnished qualifying experience and appearance under the provisions of Section 7068, may be revoked by the registrar without further notice.

Section § 7099

Explanation

If the registrar, after investigating, thinks that a contractor or someone applying for a contractor's license has broken the rules in a serious way that could lead to losing their license, the registrar can issue a citation instead of taking immediate legal action. This citation explains what rule was broken, how it was broken, and what needs to be done to fix it or pay a penalty. The citation could also include a fine, or order the contractor to compensate anyone harmed by the violation.

If, upon investigation, the registrar has probable cause to believe that a licensee, or an applicant for a license under this chapter, has committed any acts or omissions which are grounds for denial, revocation, or suspension of license, he or she may, in lieu of proceeding pursuant to this article, issue a citation to the licensee or applicant. Each citation shall be in writing and shall describe with particularity the nature of the violation, including a reference to the provisions alleged to have been violated. In addition, each citation may contain an order of correction fixing a reasonable time for correction of the violation or an order, against the licensee only, for payment of a specified sum to an injured party in lieu of correction, and may contain an assessment of a civil penalty.

Section § 7099.1

Explanation

This law instructs the board to create rules for how to set up a correction order, taking into account how long these corrections might take and whether they can actually be done.

The board shall promulgate regulations covering the formulation of an order of correction which gives due consideration to the time required to correct and the practical feasibility of correction.

Section § 7099.10

Explanation

If someone is advertising as a contractor without a proper license, the authorities can make them stop the ads and cut off their phone service. If they want to challenge this action, they can request a hearing within 90 days. If they don't comply after being told to fix it, their phone service might be stopped. Phone companies aren't in trouble for cutting off the service if they follow this rule.

(a)CA Business & Professions Code § 7099.10(a) If, upon investigation, the registrar has probable cause to believe that a licensee, an applicant for a license, or an unlicensed individual acting in the capacity of a contractor who is not otherwise exempted from the provisions of this chapter, has violated Section 7027.1 by advertising for construction or work of improvement covered by this chapter in an alphabetical or classified directory, without being properly licensed, the registrar may issue a citation under Section 7099 containing an order of correction which requires the violator to cease the unlawful advertising and to notify the telephone company furnishing services to the violator to disconnect the telephone service furnished to any telephone number contained in the unlawful advertising, and that subsequent calls to that number shall not be referred by the telephone company to any new telephone number obtained by that person.
(b)CA Business & Professions Code § 7099.10(b) If the person to whom a citation is issued under subdivision (a) notifies the registrar that he or she intends to contest the citation, the registrar shall afford an opportunity for a hearing, as specified in Section 7099.5, within 90 days after receiving the notification.
(c)CA Business & Professions Code § 7099.10(c) If the person to whom a citation and order of correction is issued under subdivision (a) fails to comply with the order of correction after the order is final, the registrar shall inform the Public Utilities Commission of the violation, and the Public Utilities Commission shall require the telephone corporation furnishing services to that person to disconnect the telephone service furnished to any telephone number contained in the unlawful advertising.
(d)CA Business & Professions Code § 7099.10(d) The good faith compliance by a telephone corporation with an order of the Public Utilities Commission to terminate service issued pursuant to this section shall constitute a complete defense to any civil or criminal action brought against the telephone corporation arising from the termination of service.

Section § 7099.11

Explanation

If you want to advertise services for removing asbestos, you need to have a special certification and be registered for asbestos work. All ads must show your certification and registration numbers and use the same business name you registered with. If you don't include these details in your ads, you'll get a notice to fix it. If you ignore this notice or falsely advertise without proper certification, you'll get a citation, which is a formal legal reprimand.

(a)CA Business & Professions Code § 7099.11(a) No person shall advertise, as that term is defined in Section 7027.1, to promote his or her services for the removal of asbestos unless he or she is certified to engage in asbestos-related work pursuant to Section 7058.5, and registered for that purpose pursuant to Section 6501.5 of the Labor Code. Each advertisement shall include that person’s certification and registration numbers and shall use the same name under which that person is certified and registered.
(b)CA Business & Professions Code § 7099.11(b) The registrar shall issue a notice to comply with the order of correction provisions of subdivision (a) of Section 7099.10, to any person who is certified and registered, as described in subdivision (a), and who fails to include in any advertisement his or her certification and registration numbers.
(c)CA Business & Professions Code § 7099.11(c) The registrar shall issue a citation pursuant to Section 7099 to any person who fails to comply with the notice required by subdivision (b), or who advertises to promote his or her services for the removal of asbestos but does not possess valid certification and registration numbers as required by subdivision (a), or who fails to use in that advertisement the same name under which he or she is certified and registered.
Citations shall be issued and conducted pursuant to Sections 7099 to 7099.10, inclusive.

Section § 7099.2

Explanation

This law explains how the board should set rules for issuing fines when certain rules are broken. It takes into account how serious the violation is, whether the person charged is acting in good faith, and their history of past violations. Normally, fines can't exceed $8,000, but for certain serious violations, they can go up to $30,000.

(a)CA Business & Professions Code § 7099.2(a) The board shall promulgate regulations covering the assessment of civil penalties under this article that give due consideration to the appropriateness of the penalty with respect to the following factors:
(1)CA Business & Professions Code § 7099.2(a)(1) The gravity of the violation.
(2)CA Business & Professions Code § 7099.2(a)(2) The good faith of the licensee or applicant for licensure being charged.
(3)CA Business & Professions Code § 7099.2(a)(3) The history of previous violations.
(b)CA Business & Professions Code § 7099.2(b) Notwithstanding Section 125.9, and except as otherwise provided by this chapter, a civil penalty shall not be assessed in an amount greater than eight thousand dollars ($8,000). Notwithstanding Section 125.9, a civil penalty not to exceed thirty thousand dollars ($30,000) may be assessed for a violation of Section 7110, 7114, 7118, or 7125.4

Section § 7099.3

Explanation

If you’re a licensee or someone applying for a license and you receive a citation for a violation, you have 15 working days to appeal it. You can challenge the alleged violations, the timeframe for fixing them, the penalties, and whether the required changes to fix the issue are reasonable.

Any licensee or applicant for licensure served with a citation pursuant to Section 7099, may appeal to the registrar within 15 working days from service of the citation with respect to violations alleged by the registrar, correction periods, amount of penalties, and the reasonableness of the change required by the registrar to correct the condition.

Section § 7099.4

Explanation

If you, as a licensee or someone applying for a license, receive a citation from the registrar and don't let them know within 15 working days that you want to challenge it, that citation becomes final and can't be reviewed by any court or agency. However, the registrar might extend this 15-day period if there's a good reason.

If within 15 working days from service of the citation issued by the registrar, the licensee or applicant for licensure fails to notify the registrar that he or she intends to contest the citation, the citation shall be deemed a final order of the registrar and not be subject to review by any court or agency. The 15-day period may be extended by the registrar for cause.

Section § 7099.5

Explanation

If you're a license holder or applying for a license and you decide to challenge a fine or notice you received, you can tell the registrar, who must then arrange a hearing for you. After this hearing, the registrar will make a decision based on the facts. They might agree with the original decision, change it, cancel it, or offer a different solution. The hearing will follow specific government regulations, and the registrar will have all the authority needed to conduct it properly.

If a licensee or applicant for licensure notifies the registrar that he or she intends to contest a citation issued under Section 7099, 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 penalty, 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 § 7099.6

Explanation

If someone has a professional license and they don't deal with a citation properly once it's made official, they can lose their license or have it taken away. If someone is trying to get a license and they don't handle a citation after it's finalized, their application for the license can be rejected.

(a)CA Business & Professions Code § 7099.6(a) The failure of a licensee to comply with a citation after it is final is a ground for suspension or revocation of license.
(b)CA Business & Professions Code § 7099.6(b) The failure of an applicant for licensure to comply with a citation after it is final is a ground for denial of license.

Section § 7099.7

Explanation

This law states that you cannot use a required bond, as described in certain sections of the law, to pay for a civil penalty.

No order for payment of a civil penalty shall be made against any bond required pursuant to Sections 7071.5 to 7071.8.

Section § 7099.8

Explanation

If you're cited under certain sections for construction issues and want to dispute it, you have two options within 15 days: request an administrative hearing or opt for an informal citation conference. The conference is a more casual way to contest the citation. If you pick the conference, your request for a formal hearing is dropped. During the conference, the citation can be upheld, changed, or dismissed, and this decision will be communicated within 10 days. If the decision isn't in your favor, you have 30 days to ask for a formal hearing. The informal conference doesn't follow strict government procedures.

(a)CA Business & Professions Code § 7099.8(a) Notwithstanding any other law, if a person cited pursuant to Section 7028.7 or 7099 wishes to contest the citation, that person shall, within 15 days after service of the citation, file in writing a request for an administrative hearing as provided pursuant to Section 7028.12 or 7099.5.
(b)Copy CA Business & Professions Code § 7099.8(b)
(1)Copy CA Business & Professions Code § 7099.8(b)(1) In addition to, or instead of, requesting an administrative hearing pursuant to subdivision (a), the person cited pursuant to Section 7028.7 or 7099 may, within 15 days after service of the citation, contest the citation by submitting a written request for an informal citation conference to the chief of the enforcement division or a designee.
(2)CA Business & Professions Code § 7099.8(b)(2) Upon receipt of a written request for an informal citation conference, the chief of the enforcement division or a designee shall, within 60 days of the request, hold an informal citation conference with the person requesting the conference. The cited person may be accompanied and represented by an attorney or other authorized representative.
(3)CA Business & Professions Code § 7099.8(b)(3) If an informal citation conference is held, the request for an administrative hearing shall be deemed withdrawn and the chief of the enforcement division, or a designee, may affirm, modify, or dismiss the citation at the conclusion of the informal citation conference. If so affirmed or modified, the citation originally issued shall be considered withdrawn and an affirmed or modified citation, including reasons for the decision, shall be issued. The affirmed or modified citation shall be mailed to the cited person and that person’s counsel, if any, within 10 days of the date of the informal citation conference.
(4)CA Business & Professions Code § 7099.8(b)(4) If a cited person wishes to contest a citation affirmed or modified pursuant to paragraph (3), the person shall, within 30 days after service of the modified or affirmed citation, contest the affirmed or modified citation by submitting a written request for an administrative hearing to the chief of the enforcement division or a designee. An informal citation conference shall not be held for affirmed or modified citations.
(c)CA Business & Professions Code § 7099.8(c) The citation conference is informal and shall not be subject to the Administrative Procedure Act (Chapter 4.5 (commencing with Section 11400) of, or Chapter 5 (commencing with Section 11500) of Part 1 of, Division 3 of Title 2 of the Government Code).

Section § 7099.9

Explanation

This law allows a registrar to issue a letter of admonishment if they believe a licensee, registrant, or applicant has committed a violation that could lead to denial or suspension of their license instead of issuing a formal citation. This letter will detail the violation and explain the related laws or rules broken. The person has 30 days to either request a conference to contest the letter or comply by correcting the violation. If they comply, it won't be considered an admission of guilt. Certain serious violations, like those causing financial harm or involving unlicensed practice, cannot be addressed with a letter of admonishment.

(a)CA Business & Professions Code § 7099.9(a) If, upon investigation, the registrar has probable cause to believe that a licensee, registrant, or applicant has committed acts or omissions that are grounds for denial, suspension, or revocation of a license or registration, the registrar, or their designee, may issue a letter of admonishment to an applicant, licensee, or registrant in lieu of issuing a citation. Nothing in this article shall in any way limit the registrar’s discretionary authority or ability to issue a letter of admonishment as prescribed by this subdivision.
(b)CA Business & Professions Code § 7099.9(b) The letter of admonishment shall be in writing and shall describe in detail the nature and facts of the violation, including a reference to the statutes or regulations violated. The letter of admonishment shall inform the licensee, registrant, or applicant that within 30 days of service of the letter of admonishment the licensee, registrant, or applicant may do either of the following:
(1)CA Business & Professions Code § 7099.9(b)(1) Submit a written request for an office conference to the registrar to contest the letter of admonishment. Upon a timely request, the registrar, or their designee, shall hold an office conference with the licensee, registrant, or applicant and, if applicable, their legal counsel or authorized representative.
(A)CA Business & Professions Code § 7099.9(b)(1)(A) No individual other than the legal counsel or authorized representative of the licensee, registrant, or applicant may accompany the licensee, registrant, or applicant to the office conference.
(B)CA Business & Professions Code § 7099.9(b)(1)(B) Prior to or at the office conference, the licensee, registrant, or applicant may submit to the registrar declarations and documents pertinent to the subject matter of the letter of admonishment.
(C)CA Business & Professions Code § 7099.9(b)(1)(C) The office conference is intended to be informal and shall not be subject to the Administrative Procedure Act (Chapter 4.5 (commencing with Section 11400) or Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code).
(D)CA Business & Professions Code § 7099.9(b)(1)(D) After the office conference, the registrar, or their designee, may affirm, modify, or withdraw the letter of admonishment. Within 14 calendar days from the date of the office conference, the registrar, or their designee, shall personally serve or send the written decision by certified mail to the licensee’s, registrant’s, or applicant’s address of record. This decision shall be deemed the final administrative decision concerning the letter of admonishment.
(E)CA Business & Professions Code § 7099.9(b)(1)(E) Judicial review of the decision may be had by filing a petition for a writ of mandate in accordance with the provisions of Section 1094.5 of the Code of Civil Procedure within 30 days after the date the decision was personally served or sent by certified mail. The judicial review shall extend to the question of whether or not there was a prejudicial abuse of discretion in the issuance of the letter of admonishment or in the decision after the office conference.
(2)CA Business & Professions Code § 7099.9(b)(2) Comply with the letter of admonishment and, if required, submit a written corrective action plan to the registrar documenting compliance. If an office conference is not requested pursuant to this section, compliance with the letter of admonishment shall not constitute an admission of the violation noted in the letter of admonishment.
(c)CA Business & Professions Code § 7099.9(c) The letter of admonishment shall be served upon the licensee, registrant, or applicant personally or by certified mail at their address of record with the board. If the licensee, registrant, or applicant is served by certified mail, service shall be effective upon deposit in the United States mail.
(d)CA Business & Professions Code § 7099.9(d) The licensee, registrant, or applicant shall maintain and have readily available a copy of the letter of admonishment and corrective action plan, if any, for at least one year from the date of issuance of the letter of admonishment.
(e)CA Business & Professions Code § 7099.9(e) Nothing in this subdivision shall in any way limit the board’s authority or ability to do either of the following:
(1)CA Business & Professions Code § 7099.9(e)(1) Issue a citation pursuant to Section 125.9, 148, or 7099.
(2)CA Business & Professions Code § 7099.9(e)(2) Institute disciplinary proceedings pursuant to this article.
(f)CA Business & Professions Code § 7099.9(f) The issuance of a letter of admonishment shall not be construed as a disciplinary action or discipline for purposes of licensure or the reporting of discipline for licensure.
(g)CA Business & Professions Code § 7099.9(g) The board shall not issue a letter of admonishment when any one of the following factors is present:
(1)CA Business & Professions Code § 7099.9(g)(1) The licensee, registrant, or applicant was unlicensed at the time of the violation.
(2)CA Business & Professions Code § 7099.9(g)(2) The licensee, registrant, or applicant has a history of the same or similar violations.
(3)CA Business & Professions Code § 7099.9(g)(3) The violation resulted in financial harm to another.
(4)CA Business & Professions Code § 7099.9(g)(4) The victim is an elder or dependent adult as defined in Section 368 of the Penal Code.
(5)CA Business & Professions Code § 7099.9(g)(5) The violation is related to the repair of damage caused by a natural disaster.
(h)CA Business & Professions Code § 7099.9(h) The board may adopt regulations to further define the circumstances under which a letter of admonishment may be issued.

Section § 7100

Explanation

If a contractor is challenging a decision made about their license in court, the court might allow them to keep working. However, the contractor must first provide a financial guarantee, similar to a security deposit, to ensure they follow the rules set by the authorities. This deposit amount should be at least $1,000 or more if the court thinks it's necessary to protect public interest. Even if the contractor appeals the decision, they need to maintain this guarantee during the appeal process to continue working.

In any proceeding for review by a court, the court may in its discretion, upon the filing of a proper bond by the licensee in an amount to be fixed by the court, but not less than one thousand dollars ($1,000) or an amount the court finds is sufficient to protect the public, whichever is greater, guaranteeing the compliance by the licensee with specific conditions imposed upon him by the registrar’s decision, if any, permit the licensee to continue to do business as a contractor pending entry of judgment by the court in the case. There shall be no stay of the registrar’s decision pending an appeal or review of any such proceeding unless the appellant or applicant for review shall file a bond in all respects conditioned as, and similar to, the bond required to stay the effect of the registrar’s decision in the first instance.

Section § 7102

Explanation

If a contractor's license is suspended, the registrar can reinstate it once the contractor meets all requirements set for reinstatement. However, if the license is revoked, it cannot be reinstated for at least one year, and possibly up to five years, unless the person responsible shows they've resolved any harm caused by their actions. The board sets rules for considering whether to extend the revocation period, focusing on the seriousness of the violation, any past violations, and criminal convictions. If the loss is because of a debt that was discharged in bankruptcy, the contractor doesn't have to repay it to get the license back, but must still meet any other conditions.

After suspension of a license upon any of the grounds set forth in this chapter, the registrar may reinstate the license upon proof of compliance by the contractor with all provisions of the decision as to reinstatement or, in the absence of a decision or any provisions of reinstatement, in the sound discretion of the registrar.
After revocation of a license upon any of the grounds set forth in this chapter, the license shall not be reinstated or reissued and a license shall not be issued to any member of the personnel of the revoked licensee found to have had knowledge of or participated in the acts or omissions constituting grounds for revocation, within a minimum period of one year and a maximum period of five years after the final decision of revocation and then only on proper showing that all loss caused by the act or omission for which the license was revoked has been fully satisfied and that all conditions imposed by the decision of revocation have been complied with.
The board shall promulgate regulations covering the criteria to be considered when extending the minimum one-year period. The criteria shall give due consideration to the appropriateness of the extension of time with respect to the following factors:
(a)CA Business & Professions Code § 7102(a) The gravity of the violation.
(b)CA Business & Professions Code § 7102(b) The history of previous violations.
(c)CA Business & Professions Code § 7102(c) Criminal convictions.
When any loss has been reduced to a monetary obligation or debt, however, the satisfaction of the monetary obligation or debt as a prerequisite for the issuance, reissuance, or reinstatement of a license shall not be required to the extent the monetary obligation or debt was discharged in a bankruptcy proceeding. However, any nonmonetary condition not discharged in a bankruptcy proceeding shall be complied with prior to the issuance, the reissuance, or reinstatement of the license.

Section § 7103

Explanation

If a contractor's license is revoked, suspended, or disciplined in a different state, California can use that as a reason to take disciplinary action against that person’s contractor license here. A certified copy of the disciplinary action from the other state serves as solid proof of what happened.

The revocation, suspension, or other disciplinary action of a license to act as a contractor by another state shall constitute grounds for disciplinary action in this state if the individual is a licensee, or applies for a license, in this state. A certified copy of the revocation, suspension, or other disciplinary action by the other state is conclusive evidence of that action.

Section § 7104

Explanation

This section requires the board to inform both the person who filed a complaint and the contractor about any actions taken on the complaint. The explanation for the action must be included, as long as notifying the contractor does not interfere with any investigations or actions against them.

When the board resolves a complaint, the board shall notify the complainant in writing of its action and the reasons for taking that action. The board shall provide the same notice in writing to the contractor provided that the contractor is licensed and the notification would not jeopardize an action or investigation that involves the contractor.

Section § 7106

Explanation

This law says that if a contractor is involved in a court case about their work, the court can also decide to suspend or revoke the contractor's license as part of that case.

The suspension or revocation of license as in this chapter provided may also be embraced in any action otherwise proper in any court involving the licensee’s performance of his legal obligation as a contractor.

Section § 7106.5

Explanation

This law says that even if a professional license expires, is canceled, suspended, or voluntarily surrendered, the authorities can still investigate and take disciplinary actions regarding that license. Basically, losing or giving up the license doesn't stop any ongoing or potential legal actions against it.

The expiration, cancellation, forfeiture, revocation, or suspension of a license by operation of law or by order or decision of the registrar or a court of law, or the voluntary surrender of a license by a licensee, shall not deprive the registrar of jurisdiction to proceed with any investigation of or action or disciplinary proceeding against the license, or to render a decision suspending or revoking the license.

Section § 7107

Explanation

If a contractor leaves a construction project unfinished without a valid reason, they can face disciplinary action.

Abandonment without legal excuse of any construction project or operation engaged in or undertaken by the licensee as a contractor constitutes a cause for disciplinary action.

Section § 7108

Explanation

This law says that if someone takes money or materials meant for a specific construction project and uses it for something else, or can't properly explain how they used it, they can face disciplinary action. Basically, using the funds or materials for anything other than the intended project is not allowed.

Diversion of funds or property received for prosecution or completion of a specific construction project or operation, or for a specified purpose in the prosecution or completion of any construction project or operation, or failure substantially to account for the application or use of such funds or property on the construction project or operation for which such funds or property were received constitutes a cause for disciplinary action.

Section § 7108.5

Explanation

If you're a main contractor or subcontractor, you need to pay your subcontractors within seven days after you get a progress payment, unless you've agreed in writing to another timeline. If there's a genuine dispute about some or all of the payment, you can hold back up to 150% of the disputed amount. If you don't pay on time without a valid reason, you can face disciplinary actions and have to pay the subcontractor a penalty of 2% per month on the late amount. If someone sues to get unpaid money, the winner gets their legal fees covered. These rules apply to private and most public construction projects, adding to any other legal options available.

(a)CA Business & Professions Code § 7108.5(a) A prime contractor or subcontractor shall pay to any subcontractor, not later than seven days after receipt of each progress payment, unless otherwise agreed to in writing, the respective amounts allowed the contractor on account of the work performed by the subcontractors, to the extent of each subcontractor’s interest therein. In the event that there is a good faith dispute over all or any portion of the amount due on a progress payment from the prime contractor or subcontractor to a subcontractor, the prime contractor or subcontractor may withhold no more than 150 percent of the disputed amount.
(b)CA Business & Professions Code § 7108.5(b) Any violation of this section shall constitute a cause for disciplinary action and shall subject the licensee to a penalty, payable to the subcontractor, of 2 percent of the amount due per month for every month that payment is not made.
(c)CA Business & Professions Code § 7108.5(c) In any action for the collection of funds wrongfully withheld, the prevailing party shall be entitled to his or her attorney’s fees and costs.
(d)CA Business & Professions Code § 7108.5(d) The sanctions authorized under this section shall be separate from, and in addition to, all other remedies, either civil, administrative, or criminal.
(e)CA Business & Professions Code § 7108.5(e) This section applies to all private works of improvement and to all public works of improvement, except where Section 10262 of the Public Contract Code applies.

Section § 7108.6

Explanation

Contractors must pay transportation charges by the 20th of the month following when the work was performed if they receive the bill by the 5th of that month. They can only delay payment if they agree otherwise in writing with the carrier or if there's a genuine dispute about the charges. They can hold up to 150% of the disputed amount if there's a disagreement. Breaking this rule can lead to penalties and disciplinary actions, including a 2% monthly fee on overdue payments, and the party that wins a related legal case gets their lawyer fees paid. This rule applies to both private and public improvement projects.

A licensed contractor is required to pay all transportation charges submitted by a duly authorized motor carrier of property in dump truck equipment by the 20th day following the last day of the calendar month in which the transportation was performed, if the charges, including all necessary documentation, are submitted by the fifth day following the last day of the calendar month in which the transportation was performed. The payment shall be made unless otherwise agreed to in writing by the contractor and by the duly authorized motor carrier of property in dump truck equipment. In the event that there is a good faith dispute over a portion of the charges claimed, the contractor may withhold payment of up to 150 percent of the disputed amount or an amount otherwise agreed to by the parties. A violation of this section constitutes a cause for disciplinary action under Section 7120 and shall also subject the contractor licensee to a penalty, payable to the carrier, of 2 percent of the amount due per month for every month that payment is outstanding. In an action for the collection of moneys not paid in accordance with this section, the prevailing party shall be entitled to his or her attorney’s fees and costs.
This section applies to all private works of improvement and to all public works of improvement.

Section § 7109

Explanation

This law says that if a construction professional intentionally strays from the accepted standards of good construction work, they can face disciplinary action. But, if they followed the plans created by an architect, it's generally acceptable. Moreover, if they intentionally ignore or deviate from the approved plans in a way that harms someone, and do so without getting permission from the project owner or their representative, they can also be disciplined.

(a)CA Business & Professions Code § 7109(a) A willful departure in any material respect from accepted trade standards for good and workmanlike construction constitutes a cause for disciplinary action, unless the departure was in accordance with plans and specifications prepared by or under the direct supervision of an architect.
(b)CA Business & Professions Code § 7109(b) A willful departure from or disregard of plans or specifications in any material respect, which is prejudicial to another, without the consent of the owner or his or her duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans or specifications, constitutes a cause for disciplinary action.

Section § 7109.5

Explanation

This law section explains that breaking certain safety rules can lead to disciplinary actions. Even if no one is hurt, violating specific safety regulations can cause a company to face consequences. If breaking these rules leads to a worker's death or serious injury, it definitely becomes a reason for punishment under the law.

(a)CA Business & Professions Code § 7109.5(a) Violation of any safety provision in, or authorized by, Article 12 (commencing with Section 3420) of Group 3 of Subchapter 7 of Chapter 4 of Division 1 of Title 8 of the California Code of Regulations constitutes a cause for disciplinary action without regard to whether death or serious injury to an employee resulted from the violation.
(b)CA Business & Professions Code § 7109.5(b) Violation of any safety provision in, or authorized by, Division 5 (commencing with Section 6300) of the Labor Code resulting in death or serious injury to an employee constitutes a cause for disciplinary action.

Section § 7110

Explanation

If you intentionally or knowingly break state or local building laws, or specific laws related to safety, labor, insurance, contracts, health, water well drilling, or building permits, you can face disciplinary action on your professional license. This includes violations of certain sections of the Civil Code, Public Contract Code, and more.

Willful or deliberate disregard and violation of the building laws of the state, or of any political subdivision thereof, or of any of the following references to or provisions of law, constitutes a cause for disciplinary action against a licensee:
(a)CA Business & Professions Code § 7110(a) Section 8550 or 8556.
(b)CA Business & Professions Code § 7110(b) Sections 1689.5 to 1689.15, inclusive, of the Civil Code.
(c)CA Business & Professions Code § 7110(c) The safety laws or labor laws or compensation insurance laws or Unemployment Insurance Code of the state.
(d)CA Business & Professions Code § 7110(d) The Subletting and Subcontracting Fair Practices Act (Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code).
(e)CA Business & Professions Code § 7110(e) Any provision of the Health and Safety Code or Water Code, relating to the digging, boring, or drilling of water wells.
(f)CA Business & Professions Code § 7110(f) Any provision of Article 2 (commencing with Section 4216) of Chapter 3.1 of Division 5 of Title 1 of the Government Code.
(g)CA Business & Professions Code § 7110(g) Section 374.3 of the Penal Code or any substantially similar law or ordinance that is promulgated by a local government agency as defined in Section 82041 of the Government Code.
(h)CA Business & Professions Code § 7110(h) Any state or local law relating to the issuance of building permits.

Section § 7110.1

Explanation

If someone forces an employee to sign away their rights illegally under labor law, that can lead to disciplinary actions against them.

The requiring of an execution of release of any claim or the causing of the execution of any such release in violation of Section 206.5 of the Labor Code is a cause for disciplinary action.

Section § 7110.5

Explanation

This law says that if a contractor is found to have willfully broken labor laws, the authorities must start taking disciplinary steps against them within 18 months of receiving that information. This could be due to findings by the Labor Commissioner or actions taken by the Occupational Safety and Health Division.

Upon receipt of a certified copy of the Labor Commissioner’s finding of a willful or deliberate violation of the Labor Code by a licensee, pursuant to Section 98.9 of the Labor Code, or upon transmission to the Contractors’ State License Board of copies of any citations or other actions taken by the Division of Occupational Safety and Health pursuant to Article 12 (commencing with Section 3420) of Group 3 of Subchapter 7 of Chapter 4 of Division 1 of Title 8 of the Code of California Regulations, the registrar shall initiate disciplinary action against the licensee within 18 months from the date of the registrar’s receipt of the violation.

Section § 7111

Explanation

If you're a licensed contractor, you must keep records of all your business transactions for at least five years after a project ends. These records should be available for review if the registrar asks for them. Ignoring requests to show your records or delaying the process without a good reason can lead to disciplinary actions against you.

(a)CA Business & Professions Code § 7111(a) Failure to make and keep records showing all contracts, documents, records, receipts, and disbursements by a licensee of all of his or her transactions as a contractor, and failure to have those records available for inspection by the registrar or his or her duly authorized representative for a period of not less than five years after completion of any construction project or operation to which the records refer, or refusal by a licensee to comply with a written request of the registrar to make the records available for inspection constitutes a cause for disciplinary action.
(b)CA Business & Professions Code § 7111(b) Failure of a licensee, applicant, or registrant subject to the provisions of this chapter, who without lawful excuse, delays, obstructs, or refuses to comply with a written request of the registrar or designee for information or records, to provide that information or make available those records, when the information or records are required in the attempt to discharge any duty of the registrar, constitutes a cause for disciplinary action.

Section § 7111.1

Explanation

If you have a professional license and you ignore or refuse a written request from the registrar to help with an investigation into a complaint against you, you can face disciplinary action.

The failure of, or refusal by, a licensee to respond to a written request of the registrar to cooperate in the investigation of a complaint against that licensee constitutes a cause for disciplinary action.

Section § 7112

Explanation

If someone lies or leaves out important information when applying for, renewing, or changing their professional license, they can face disciplinary actions.

Omission or misrepresentation of a material fact by an applicant or a licensee in obtaining, or renewing a license, or in adding a classification to an existing license constitutes a cause for disciplinary action.

Section § 7112.1

Explanation

If someone leaves out important information or lies when adding a new classification to their license, it will be removed from their record once a final decision is made confirming this violation.

Any classification that has been added to an existing license record as a result of an applicant or licensee omitting or misrepresenting a material fact shall be expunged from the license record pursuant to a final order of the registrar evidencing a violation of Section 7112.

Section § 7113

Explanation

If a licensed contractor doesn't finish a construction job for the agreed price in the contract (or any agreed changes to it), they can face disciplinary action.

Failure in a material respect on the part of a licensee to complete any construction project or operation for the price stated in the contract for such construction project or operation or in any modification of such contract constitutes a cause for disciplinary action.

Section § 7113.5

Explanation

This law states that if a contractor tries to pay less than what they owe by making special agreements with their creditors or by going through processes like receivership, trusteeship, or dissolution, they might face disciplinary action. However, if a contractor settles with just one creditor and not as part of a broader deal with multiple creditors, this rule doesn’t apply. Also, if someone goes through bankruptcy under federal law and settles their contractor debts as allowed by that process, they won't face disciplinary action, as long as they meet all their remaining legal obligations that aren't cleared by bankruptcy.

The avoidance or settlement by a licensee for less than the full amount of the lawful obligations of the licensee incurred as a contractor, whether by (a) composition, arrangement, or reorganization with creditors under state law, (b) composition, arrangement, or reorganization with creditors under any agreement or understanding, (c) receivership as provided in Chapter 5 (commencing at Section 564) of Title 7 of Part 2 of the Code of Civil Procedure, (d)  assignment for the benefit of creditors, (e) trusteeship, or (f) dissolution, constitutes a cause for disciplinary action.
This section shall not apply to an individual settlement of the obligation of a licensee by the licensee with a creditor that is not a part of or in connection with a settlement with other creditors of the licensee.
No disciplinary action shall be commenced against a licensee for discharge of or settling in bankruptcy under federal law, the licensee’s lawful obligations incurred as a contractor for less than the full amount of the obligations, so long as the licensee satisfies all of those lawful obligations, to the extent the obligations are not discharged under federal law.

Section § 7114

Explanation

This law says that if you help someone without a license break the rules, or if you let someone without a license use your license to get around the law, you can get in trouble. If it's proven that you did this, the authorities can make you pay for any harm caused by the unlicensed person’s actions.

(a)CA Business & Professions Code § 7114(a) Aiding or abetting an unlicensed person to evade the provisions of this chapter or combining or conspiring with an unlicensed person, or allowing one’s license to be used by an unlicensed person, or acting as agent or partner or associate, or otherwise, of an unlicensed person with the intent to evade the provisions of this chapter constitutes a cause for disciplinary action.
(b)CA Business & Professions Code § 7114(b) A licensee who is found by the registrar to have violated subdivision (a) shall, in accordance with the provisions of this article, be subject to the registrar’s authority to order payment of a specified sum to an injured party, including, but not limited to, payment for any injury resulting from the acts of the unlicensed person.

Section § 7114.1

Explanation

If someone who has a contractor's license signs off on a fake document that falsely supports someone's experience claims to help them get a contractor's license, they can face disciplinary action.

Any licensee whose signature appears on a falsified certificate in support of an examinee’s experience qualifications, or otherwise certifying to false or misleading experience claims by an applicant, which have been submitted to obtain a contractor’s license shall be subject to disciplinary action.

Section § 7114.2

Explanation

This law says that if anyone, whether they have a license or not, does something that Section 119 forbids, they can face administrative consequences. These consequences are in addition to any other legal actions, like lawsuits or criminal charges, unless it's specifically mentioned otherwise.

Any licensed or unlicensed person who commits any act prohibited by Section 119 is subject to the administrative remedies authorized by this chapter. Unless otherwise expressly provided, the remedies authorized under this section shall be separate from, and in addition to, all other available remedies, whether civil or criminal.

Section § 7115

Explanation

If someone doesn't follow the important rules or regulations set out in this chapter or related regulations, or if they ignore a specific part of the Public Contract Code, they can face disciplinary action, which means they might be officially punished or face consequences.

Failure in any material respect to comply with the provisions of this chapter, or any rule or regulation adopted pursuant to this chapter, or to comply with the provisions of Section 7106 of the Public Contract Code, constitutes a cause for disciplinary action.

Section § 7116

Explanation

This law says that if a contractor deliberately does something wrong or dishonest, and it causes significant harm to someone else, that contractor can face disciplinary actions.

The doing of any wilful or fraudulent act by the licensee as a contractor in consequence of which another is substantially injured constitutes a cause for disciplinary action.

Section § 7116.5

Explanation

This law says licensed professionals can face disciplinary action for certain bad behaviors. First, they can't interfere with board investigations. Second, they must not threaten or harass anyone who provides evidence in legal proceedings. Lastly, they can't fire an employee just for trying to follow or help with the law.

It is a cause for discipline for a licensee to do any of the following:
(a)CA Business & Professions Code § 7116.5(a) Engage in any conduct that subverts or attempts to subvert an investigation of the board.
(b)CA Business & Professions Code § 7116.5(b) Threaten or harass any person or licensee for providing evidence in any possible or actual disciplinary action, arbitration, or other legal action.
(c)CA Business & Professions Code § 7116.5(c) Discharge an employee primarily because of the employee’s attempt to comply with or aid in compliance with the provisions of this chapter.

Section § 7117

Explanation

This law says that if a contractor does work under a license, they must do so using the exact name listed on their license or with the people named in their license application. If they don't, they might face disciplinary action.

Acting in the capacity of a contractor under any license issued hereunder except: (a) in the name of the licensee as set forth upon the license, or (b) in accordance with the personnel of the licensee as set forth in the application for such license, or as later changed as provided in this chapter, constitutes a cause for disciplinary action.

Section § 7117.5

Explanation

If you work as a contractor with an inactive, suspended, or expired license that's up for renewal, you could face disciplinary action. This is in addition to any other legal consequences you might face, like civil or criminal penalties.

(a)CA Business & Professions Code § 7117.5(a) Acting in the capacity of a contractor under any license which has been made inactive, as provided in Section 7076.5, constitutes a cause for disciplinary action.
(b)CA Business & Professions Code § 7117.5(b) Acting in the capacity of a contractor under any license that has been suspended for any reason constitutes a cause for disciplinary action.
(c)CA Business & Professions Code § 7117.5(c) Acting in the capacity of a contractor under any license that has expired constitutes a cause for disciplinary action if the license is subject to renewal pursuant to Section 7141. The actions authorized under this section shall be separate from, and in addition to, all other remedies either civil or criminal.

Section § 7117.6

Explanation

If a contractor works in a role that is different from their licensed area of expertise, they can face disciplinary action.

Acting in the capacity of a contractor in a classification other than that currently held by the licensee constitutes a cause for disciplinary action.

Section § 7118

Explanation

If you make a contract with a contractor who doesn't have the required license, you could face disciplinary action.

Entering into a contract with a contractor while such contractor is not licensed as provided in this chapter constitutes a cause for disciplinary action.

Section § 7118.4

Explanation

This law requires contractors who inspect properties for asbestos, especially when such inspections are tied to loan conditions or permit requirements, to clearly disclose any ownership or financial ties to companies that could profit from corrective work. This disclosure must be made both verbally and in writing. Contractors can still do their own inspections if they are hired for corrective work after another company has identified asbestos. Breaking this rule can lead to disciplinary action, fines, or even jail time. Additionally, in legal terms, 'asbestos' refers to its definition in the Labor Code.

(a)CA Business & Professions Code § 7118.4(a) If a contractor has made an inspection for the purpose of determining the presence of asbestos or the need for related remedial action with knowledge that the report has been required by a person as a condition of making a loan of money secured by the property, or is required by a public entity as a condition of issuing a permit concerning the property, the contractor shall disclose orally and in writing if it is owned or has any common ownership, or any financial relationship whatsoever, including, but not limited to, commissions or referral fees, with an entity in the business of performing the corrective work.
(b)CA Business & Professions Code § 7118.4(b) This section does not prohibit a contractor that has contracted to perform corrective work after the report of another company has indicated the presence of asbestos or the need for related remedial action from making its own inspection prior to performing that corrective work or from making an inspection to determine whether the corrective measures were successful and, if not, thereafter peforming additional corrective work.
(c)CA Business & Professions Code § 7118.4(c) A violation of this section is grounds for disciplinary action.
(d)CA Business & Professions Code § 7118.4(d) A violation of this section is a misdemeanor punishable by a fine of not less than three thousand dollars ($3,000) and not more than five thousand dollars ($5,000), or by imprisonment in the county jail for not more than one year, or both.
(e)CA Business & Professions Code § 7118.4(e) For the purpose of this section, “asbestos” has the meaning set forth in Section 6501.7 of the Labor Code.

Section § 7118.5

Explanation

If you're a contractor or someone applying to be one, you need to be careful about who you hire for asbestos-related work. This law says that if you hire someone who isn't properly certified to handle asbestos, you could face serious penalties. The first time you do this, you could get a fine between $1,000 and $3,000, and possibly lose your contractor’s license. If it happens again, the penalties are harsher: a bigger fine between $3,000 and $5,000, and you might go to jail for up to a year, or lose your license for sure.

Any contractor, applicant for licensure, or person required to be licensed, who, either knowingly or negligently, or by reason of a failure to inquire, enters into a contract with another person who is required to be, and is not, certified pursuant to Section 7058.5 to engage in asbestos-related work, as defined in Section 6501.8 of the Labor Code, is subject to the following penalties:
(a)CA Business & Professions Code § 7118.5(a) Conviction of a first offense is an infraction 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 § 7118.5(b) Conviction of a subsequent offense is a misdemeanor requiring revocation or suspension of any contractor’s license, and 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 for not more than one year, or both the fine and imprisonment.

Section § 7118.6

Explanation

This law says that if a contractor knowingly or carelessly makes a deal with someone who is supposed to be certified for certain cleanup or repair work, but isn’t, they can face penalties. For the first time breaking this rule, it's a smaller offense with a fine between $1,000 and $3,000 and they might lose or have their contractor's license suspended. If they do it again, it's a more serious crime, absolutely losing their license and facing fines between $3,000 and $5,000, possible jail time for up to a year, or both fines and jail.

Any contractor who, either knowingly or negligently, or by reason of a failure to inquire, enters into a contract with another person who is required to be, and is not certified pursuant to Section 7058.7 to engage in a removal or remedial action, as defined in Section 7058.7, is subject to the following penalties:
(a)CA Business & Professions Code § 7118.6(a) Conviction of a first offense is an infraction 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 § 7118.6(b) Conviction of a subsequent offense is a misdemeanor requiring revocation or suspension of any contractor’s license, and 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 for not more than one year, or both the fine and imprisonment.

Section § 7119

Explanation

If a contractor deliberately doesn’t work on a construction project quickly enough and this negligence harms someone, they can face disciplinary action.

Wilful failure or refusal without legal excuse on the part of a licensee as a contractor to prosecute a construction project or operation with reasonable diligence causing material injury to another constitutes a cause for disciplinary action.

Section § 7120

Explanation

This law states that if a contractor, or their agent, knowingly fails to pay bills for materials or services related to their work, despite having the money to pay, they can face disciplinary action. It's also a problem if they falsely deny owing the money or try to get a discount or delay by being dishonest about it.

Wilful or deliberate failure by any licensee or agent or officer thereof, to pay any moneys, when due for any materials or services rendered in connection with his operations as a contractor, when he has the capacity to pay or when he has received sufficient funds therefor as payment for the particular construction work, project, or operation for which the services or materials were rendered or purchased constitutes a cause for disciplinary action, as does the false denial of any such amount due or the validity of the claim thereof with intent to secure for himself, his employer, or other person, any discount upon such indebtedness or with intent to hinder, delay, or defraud the person to whom such indebtedness is due.

Section § 7121

Explanation

If someone has had their professional license denied, revoked, or suspended for certain reasons, or didn't renew a suspended license, they can't hold positions like officer or director in businesses with licenses. This rule also applies to those involved with businesses that had licenses denied, revoked, or suspended, especially if they knew about or were part of the wrongdoing that led to these actions. Companies can face disciplinary action if they employ these individuals in supervisory roles.

A person who has been denied a license for a reason other than failure to document sufficient satisfactory experience for a supplemental classification for an existing license, or who has had his or her license revoked, or whose license is under suspension, or who has failed to renew his or her license while it was under suspension, or who has been a partner, officer, director, manager, or associate of any partnership, corporation, limited liability company, firm, or association whose application for a license has been denied for a reason other than failure to document sufficient satisfactory experience for a supplemental classification for an existing license, or whose license has been revoked, or whose license is under suspension, or who has failed to renew a license while it was under suspension, and while acting as a partner, officer, director, manager, or associate had knowledge of or participated in any of the prohibited acts for which the license was denied, suspended, or revoked, shall be prohibited from serving as an officer, director, associate, partner, manager, qualifying individual, or member of the personnel of record of a licensee, and the employment, election, or association of this type of person by a licensee in any capacity other than as a nonsupervising bona fide employee shall constitute grounds for disciplinary action.

Section § 7121.1

Explanation

This law section says that if a partner or key member of a business (like an officer, director, or manager) leaves the company, they are still responsible for any legal citations connected to actions they knew about or were involved in. Even if they are no longer part of the business, they must still deal with any issues related to those citations.

Notwithstanding any other provision of this chapter, the disassociation of a partner, officer, director, manager, or associate from the license of a partnership, corporation, limited liability company, firm, or association whose license has been cited pursuant to Section 7099 shall not relieve the partner, officer, director, manager, or associate from responsibility for complying with the citation if he or she had knowledge of, or participated in, any of the prohibited acts for which the citation was issued. Section 7121 shall apply to a partner, officer, director, manager, or associate of a licensee that fails to comply with a citation after it is final.

Section § 7121.5

Explanation

If someone was in charge of a license that was revoked, suspended, or not renewed due to being suspended, they can't work in leadership or qualifying roles for any licensed business. This applies even if they didn't know about or take part in the reasons why the license was revoked or suspended. Hiring or associating with such a person could lead to disciplinary action against the company.

A person who was the qualifying individual on a revoked license, or of a license under suspension, or of a license that was not renewed while it was under suspension, shall be prohibited from serving as an officer, director, associate, partner, manager, or qualifying individual of a licensee, whether or not the individual had knowledge of or participated in the prohibited acts or omissions for which the license was revoked, or suspended, and the employment, election, or association of that person by a licensee shall constitute grounds for disciplinary action.

Section § 7121.6

Explanation

This law section states that if you were involved with a company that lost its license due to misconduct, you can't work in any supervising role for a licensed business until you're eligible for a new license. This includes if you were an officer or manager, knew about or were involved in the reasons for the license being revoked, and can't have your license reinstated. Violating this rule is a criminal offense, punishable by a substantial fine and possible jail time. Also, legal actions must be taken within four years of the illegal act.

(a)CA Business & Professions Code § 7121.6(a) An individual who meets all of the following criteria shall not perform any act regulated under this chapter for or on behalf of a licensee, other than as a bona fide nonsupervising employee:
(1)CA Business & Professions Code § 7121.6(a)(1) The individual was listed as an officer, director, owner, manager, partner, or associate of a license that was revoked.
(2)CA Business & Professions Code § 7121.6(a)(2) The individual had knowledge of or participated in any act or omission for which the license was revoked.
(3)CA Business & Professions Code § 7121.6(a)(3) The individual is not eligible for reinstatement for licensure under Section 7102.
(b)CA Business & Professions Code § 7121.6(b) An individual who meets all of the following criteria shall not perform any act regulated under this chapter for or on behalf of a licensee, other than as a bona fide nonsupervising employee:
(1)CA Business & Professions Code § 7121.6(b)(1) The individual furnished the qualifications for licensure, as set forth under Section 7068, and that license was revoked.
(2)CA Business & Professions Code § 7121.6(b)(2) The individual served in the capacity of the qualifying individual during the commission or omission of any of the acts that resulted in the revocation of the license, whether or not he or she had knowledge of or participated in those acts.
(3)CA Business & Professions Code § 7121.6(b)(3) The individual is not eligible for reinstatement for licensure under Section 7102.
(c)CA Business & Professions Code § 7121.6(c) A violation of this section is a misdemeanor punishable by a fine of not less than four thousand five hundred dollars ($4,500), by imprisonment in a county jail for not less than 90 days nor more than one year, or by both the fine and imprisonment. The penalty provided by this subdivision is cumulative to the penalties available under other laws of this state.
(d)CA Business & Professions Code § 7121.6(d) Notwithstanding any other provision of law to the contrary, an indictment for any violation of this section shall be found or an information or complaint filed within four years from the performance of any act that is prohibited under this section.

Section § 7121.65

Explanation

If you're about to start a job with a company that needs a license, and you've had your own license revoked as per certain conditions, you must inform your new employer about this revocation in writing before you start work.

Prior to becoming employed in any capacity by an entity that is subject to licensure under this chapter, an individual who is described in subdivision (a) or (b) of Section 7121.6 shall provide the prospective employer with written notice of the license revocation.

Section § 7121.7

Explanation

This law says that people listed on a professional license, like a qualifying individual or officer, cannot knowingly hire someone who is banned under another law section, unless that person works in a non-supervisory, regular role. Breaking this law could lead to a misdemeanor charge, which means a hefty fine of at least $4,500, up to a year in jail, or both. Also, charges for breaking this law have to be filed within four years of the violation.

(a)CA Business & Professions Code § 7121.7(a) A qualifying individual, officer, partner, or other person named on a license shall not knowingly employ an individual who is described in subdivision (a) or (b) of Section 7121.6, except as a bona fide nonsupervising employee.
(b)CA Business & Professions Code § 7121.7(b) A violation of this section is a misdemeanor punishable by a fine of not less than four thousand five hundred dollars ($4,500), by imprisonment in a county jail for not less than 30 days nor more than one year, or by both the fine and imprisonment.
(c)CA Business & Professions Code § 7121.7(c) Notwithstanding any other provision of law to the contrary, an indictment for any violation of this section shall be found or an information or complaint filed within four years from the performance of any act that is prohibited under this section.

Section § 7121.8

Explanation

This section defines a "bona fide nonsupervising employee" as someone who is not subject to the usual rules of the chapter because they fall under a specific exemption, and who also doesn't qualify as an independent contractor based on another section of the Labor Code.

For purposes of this article, “bona fide nonsupervising employee” means a person who is exempt from the provisions of this chapter under Section 7053, and who does not otherwise meet the test of an independent contractor, as set forth under Section 2750.5 of the Labor Code.

Section § 7122

Explanation

This law means that if a company or an individual does something wrong that could lead to disciplinary action, any other license holder associated with them can also face disciplinary action. This applies if those license holders were partners, managers, or in some leadership role at the time of the incident and knew about or took part in the wrongdoing.

The performance by an individual, partnership, corporation, limited liability company, firm, or association of an act or omission constituting a cause for disciplinary action, likewise constitutes a cause for disciplinary action against a licensee other than the individual qualifying on behalf of the individual or entity, if the licensee was a partner, officer, director, manager, or associate of that individual, partnership, corporation, limited liability company, firm, or association at the time the act or omission occurred, and had knowledge of or participated in the prohibited act or omission.

Section § 7122.1

Explanation

This law section explains that if a person responsible for holding a professional license (the qualifying individual) leaves the business after being cited for a violation, they still have to deal with that citation. They can't avoid responsibility just because they've disassociated from the license. Additionally, another rule, Section 7122.5, will apply if they don't comply with the citation once it's final.

Notwithstanding Section 7068.2 or any other provision of this chapter, the disassociation of a qualifying individual from a license after the act or omission has occurred that resulted in a citation pursuant to Section 7099 shall not relieve the qualifying individual from responsibility for complying with the citation. Section 7122.5 shall apply to a qualifying individual of a licensee that fails to comply with a citation after it is final.

Section § 7122.2

Explanation

This law states that if someone who qualifies a business license gets taken out of that role, they are still responsible for any arbitration awards that come as a result of their actions while they were in charge. Even if they're no longer in the position, they're on the hook for following through with what's decided in arbitration. Additionally, if this person doesn't comply with the arbitration decision, another rule (Section 7122.5) kicks in to deal with them.

(a)CA Business & Professions Code § 7122.2(a) Notwithstanding Section 7068.2 or any other provisions of this chapter, the disassociation of a qualifying individual from a license that has been referred to arbitration pursuant to Section 7085 shall not relieve the qualifying individual from the responsibility of complying with an arbitration award rendered as a result of acts or omissions committed while acting as the qualifying individual for the license as provided under Sections 7068 and 7068.1.
(b)CA Business & Professions Code § 7122.2(b) Section 7122.5 shall apply to a qualifying individual of a licensee that fails to comply with an arbitration award once it is rendered.

Section § 7122.5

Explanation
This law says that if a business or individual does something wrong that could lead to their license being disciplined, the person who qualified that license (like a responsible manager or supervisor) can also face disciplinary action. It doesn't matter if they knew about the wrongdoing or if they were involved.
The performance by an individual, partnership, corporation, limited liability company, firm, or association of an act or omission constituting a cause for disciplinary action, likewise constitutes a cause for disciplinary action against a licensee who at the time that the act or omission occurred was the qualifying individual of that individual, partnership, corporation, limited liability company, firm, or association, whether or not he or she had knowledge of or participated in the prohibited act or omission.

Section § 7123

Explanation

If a contractor is convicted of a crime that affects their ability to do their job, it can lead to disciplinary action against them. The conviction itself is seen as undeniable proof of their wrongdoing.

A conviction of a crime substantially related to the qualifications, functions and duties of a contractor constitutes a cause for disciplinary action. The record of the conviction shall be conclusive evidence thereof.

Section § 7123.5

Explanation

If a contractor is found guilty of breaking certain laws related to selling repair or reconstruction services, the Contractors State License Board must punish the contractor. This punishment will involve suspending their license for at least six months or permanently taking it away.

If a contractor is convicted of violating Section 396 of the Penal Code or any substantially similar local ordinance in connection with the sale, or offer for sale, of repair or reconstruction services, as defined in Section 396 of the Penal Code, the Contractors State License Board shall take disciplinary action against the contractor, which shall include a suspension of at least six months or the permanent revocation of the contractor’s license.

Section § 7124

Explanation

If someone is found guilty or pleads 'no contest' to a crime, it counts as a conviction for this law. The licensing board can suspend, revoke, or not issue a license if the time to appeal has passed or if the conviction is confirmed on appeal. This is true even if later actions allow a person to change their plea to 'not guilty' or if the conviction is set aside or dismissed.

A plea or verdict of guilty or a conviction following a plea of nolo contendere is deemed to be a conviction within the meaning of this article. The board may order the license suspended or revoked, or may decline to issue a license, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of Section 1203.4 of the Penal Code allowing such person to withdraw his plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information or indictment.

Section § 7124.6

Explanation

This law outlines what complaint information the registrar must share with the public about licensed contractors. If a complaint has gone to accusation or investigation, its details must be disclosed unless resolved in favor of the contractor. Resolved complaints with a letter of admonishment must be disclosed for up to two years. Legal actions against contractors are also made public, but with specific time limits based on the nature of the action—citations are shown for five years, accusations for seven years, and revocations indefinitely unless they are overturned.

(a)CA Business & Professions Code § 7124.6(a) The registrar shall make available to members of the public the date, nature, and status of all complaints on file against a licensee that do either of the following:
(1)CA Business & Professions Code § 7124.6(a)(1) Have been referred for accusation.
(2)CA Business & Professions Code § 7124.6(a)(2) Have been referred for investigation after a determination by board enforcement staff that a probable violation has occurred, and have been reviewed by a supervisor, and regard allegations that if proven would present a risk of harm to the public and would be appropriate for suspension or revocation of the contractor’s license or criminal prosecution.
(b)CA Business & Professions Code § 7124.6(b) The board shall create a disclaimer that shall accompany the disclosure of a complaint that shall state that the complaint is an allegation. The disclaimer may also contain any other information the board determines would be relevant to a person evaluating the complaint.
(c)Copy CA Business & Professions Code § 7124.6(c)
(1)Copy CA Business & Professions Code § 7124.6(c)(1) A complaint resolved in favor of the contractor shall not be subject to disclosure.
(2)CA Business & Professions Code § 7124.6(c)(2) A complaint resolved by issuance of a letter of admonishment pursuant to Section 7099.9 shall not be deemed resolved in favor of the contractor for the purposes of this section. A letter of admonishment issued to a licensee shall be disclosed for a period of either one year or two years from the date of service described in subdivision (c) of Section 7099.9. For the limited purposes of this paragraph, the determination regarding the one- or two-year disclosure shall be made based on the factors enumerated in subdivision (a) of Section 7099.2.
(d)CA Business & Professions Code § 7124.6(d) Except as described in subdivision (e), the registrar shall make available to members of the public the date, nature, and disposition of all legal actions.
(e)CA Business & Professions Code § 7124.6(e) Disclosure of legal actions shall be limited as follows:
(1)Copy CA Business & Professions Code § 7124.6(e)(1)
(A)Copy CA Business & Professions Code § 7124.6(e)(1)(A) Citations shall be disclosed from the date of issuance and for five years after the date of compliance if no additional disciplinary actions have been filed against the licensee during the five-year period. If additional disciplinary actions were filed against the licensee during the five-year period, all disciplinary actions shall be disclosed for as long as the most recent disciplinary action is subject to disclosure under this section. At the end of the specified time period, those citations shall no longer be disclosed.
(B)CA Business & Professions Code § 7124.6(e)(1)(A)(B) Any disclosure pursuant to this paragraph shall also appear on the license record of any other license that includes a qualifier that is listed as one of the members of personnel of record of the license that was issued the citation.
(C)CA Business & Professions Code § 7124.6(e)(1)(A)(C) The disclosure described in subparagraph (B) shall be for the period of disclosure of the citation.
(2)CA Business & Professions Code § 7124.6(e)(2) Accusations that result in suspension, stayed suspension, or stayed revocation of the contractor’s license shall be disclosed from the date the accusation is filed and for seven years after the accusation has been settled, including the terms and conditions of probation if no additional disciplinary actions have been filed against the licensee during the seven-year period. If additional disciplinary actions were filed against the licensee during the seven-year period, all disciplinary actions shall be posted for as long as the most recent disciplinary action is subject to disclosure under this section. At the end of the specified time period, those accusations shall no longer be disclosed.
(3)CA Business & Professions Code § 7124.6(e)(3) All revocations that are not stayed shall be disclosed indefinitely from the effective date of the revocation.