ContractorsDisciplinary Proceedings
Section § 7090
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.
Section § 7090.1
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.
Section § 7090.5
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.
Section § 7091
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.
Section § 7095
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.
Section § 7096
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.
Section § 7097
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.
Section § 7098
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.
Section § 7099
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.
Section § 7099.1
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.
Section § 7099.10
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.
Section § 7099.11
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.
Section § 7099.2
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.
Section § 7099.3
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.
Section § 7099.4
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.
Section § 7099.5
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.
Section § 7099.6
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.
Section § 7099.7
This law states that you cannot use a required bond, as described in certain sections of the law, to pay for a civil penalty.
Section § 7099.8
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.
Section § 7099.9
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.
Section § 7100
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.
Section § 7102
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.
Section § 7103
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.
Section § 7104
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.
Section § 7106
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.
Section § 7106.5
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.
Section § 7107
If a contractor leaves a construction project unfinished without a valid reason, they can face disciplinary action.
Section § 7108
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.
Section § 7108.5
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.
Section § 7108.6
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.
Section § 7109
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.
Section § 7109.5
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.
Section § 7110
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.
Section § 7110.1
If someone forces an employee to sign away their rights illegally under labor law, that can lead to disciplinary actions against them.
Section § 7110.5
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.
Section § 7111
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.
Section § 7111.1
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.
Section § 7112
If someone lies or leaves out important information when applying for, renewing, or changing their professional license, they can face disciplinary actions.
Section § 7112.1
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.
Section § 7113
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.
Section § 7113.5
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.
Section § 7114
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.
Section § 7114.1
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.
Section § 7114.2
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.
Section § 7115
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.
Section § 7116
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.
Section § 7116.5
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.
Section § 7117
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.
Section § 7117.5
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.
Section § 7117.6
If a contractor works in a role that is different from their licensed area of expertise, they can face disciplinary action.
Section § 7118
If you make a contract with a contractor who doesn't have the required license, you could face disciplinary action.
Section § 7118.4
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.
Section § 7118.5
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.
Section § 7118.6
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.
Section § 7119
If a contractor deliberately doesn’t work on a construction project quickly enough and this negligence harms someone, they can face disciplinary action.
Section § 7120
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.
Section § 7121
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.
Section § 7121.1
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.
Section § 7121.5
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.
Section § 7121.6
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.
Section § 7121.65
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.
Section § 7121.7
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.
Section § 7121.8
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.
Section § 7122
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.
Section § 7122.1
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.
Section § 7122.2
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.
Section § 7122.5
Section § 7123
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.
Section § 7123.5
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.
Section § 7124
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.
Section § 7124.6
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.