This law lays out how people and businesses can get a contractor's license in California. Applicants must pass a written test showing they know state laws and the contracting industry. Licenses can go to individuals, partnerships, corporations, limited liability companies, and tribal businesses. Specific people must be listed in the application, like officers or partners, and corporations need to provide their state ID number. Tribal businesses must prove their status through documents. Different types of entities, like partnerships or corporations, can qualify through a designated responsible person taking the exam. However, if someone has passed the test in the last five years or has been a qualifying individual for another licensed contractor, they might not need to retake it. The examination process can be handled by external organizations contracted by the registrar.

This law states that if you're applying for a limited specialty license, you don't have to take a trade test.

This law requires that the board regularly checks and updates the content of contractor exams to make sure that the questions are current and relevant to the contracting industry. Additionally, the board must design these exams so that applicants cannot know the questions ahead of time.

This law requires that before updating the test for landscaping contractors, the board must talk with certain experts to see if changes are needed to focus on efficient water use in landscaping. The test must include questions about saving water and sustainable practices, aligning with state water-saving goals. Additionally, the study materials for the exam must be up-to-date with current water efficiency rules and practices.

This law explains when a contractor might not have to take the usual licensing exam in California. The exam can be skipped if: (a) the person applying has worked in a similar licensed role for five out of the last seven years; (b) they are continuing a family business after a licensed family member is no longer available; or (c) they are replacing a key employee for a corporation or LLC where they've had a supervisory role in the last five years. Each scenario requires that the company or family has maintained a good, active license during that time.

This section allows the registrar to skip the test for a contractor's license if the applicant used to have a valid license in California and worked as a contractor for the U.S. government in a job that didn't require a state license.

This section allows a licensed contractor in California to add an additional classification to their license without taking another exam if they can prove sufficient experience. To qualify, the contractor must have been active and in good standing for at least five out of the last seven years, and must have recent experience within the last ten years. Their experience should include at least four years in roles like journeyman or supervisor. The new classification must be closely related to their current license, or part of their current business. The registrar will review a small percentage of applications to ensure compliance.

This law allows a person who is licensed as a contractor in another state to potentially get a contractor's license in California without taking the trade exam. However, this is only possible if the other state accepts California licenses, and if the qualifications in that other state are as high or higher than those in California. The applicant must also provide proof that their out-of-state license has been in good standing for at least five years.

This law states that a business license cannot be given to minors. This includes licenses for partnerships, corporations, or any other business organizations if a minor is involved as a partner, officer, or manager. If a minor holds an important position in such businesses, a court must first appoint a guardian for them before the license can be granted.

If you want an original license, you need to submit a written application to the registrar. The application must clearly state that you're seeking a license as per the rules in this chapter and must be on a specific form with a fee that the board has established.

Anyone can get blank license application forms directly from the board or print their own if they're using the forms approved by the Registrar of Contractors.

This section explains that when you apply for a new license, renew a license, or reinstate a license in the construction industry, both you and another qualified person must sign the application form. The board can set up a system for submitting these applications online, accepting electronic signatures. They can also create rules to make sure that these electronic submissions are valid and secure, and once these rules are in place, using electronic submissions with digital signatures will count the same as paper applications.

This law describes the requirements for a contractor to prove they have the necessary knowledge and experience to get a license in California. An individual or a company can qualify for a license through a responsible managing employee or officer who knows the trade and state laws well. The qualifying person must be a permanent employee working a significant amount of time on the job. Additionally, they can't hold another active contractor's license while acting in this capacity. Applicants must verify their experience and may be subject to random checks for honesty. Also, experience from other states will be reviewed to ensure it was gained legally.

This law section states that a person who qualifies to oversee construction work for a firm or individual must directly supervise the construction operations to ensure they follow the law and relevant regulations. This person is typically allowed to act as the overseer for just one firm unless certain conditions allow them to do so for more, such as common ownership stakes, subsidiary relationships, or shared management. A qualifying person can oversee a maximum of three firms in a year. Firms must provide detailed information about the supervisor’s duties to maintain compliance. Breaking these rules can lead to penalties, including jail time and fines.

If a key person responsible for managing construction operations leaves a licensed company, the company must notify the registrar within 90 days and find a replacement within the same period. Failure to do so results in automatic suspension or loss of the license. If there’s a valid reason, the company may request a one-time additional 90-day extension to find a replacement under certain conditions, like the death of the managing person or delays out of the company's control. If the company doesn’t notify the registrar about the departure within 90 days, they could face disciplinary action.

If you give someone the answers or the actual qualifying exam without permission, you're committing a misdemeanor, which is a crime.

This law says that anyone applying for a contractor's license, along with certain people involved with them like officers or managers, must not have committed any crimes that could lead to being denied a license. Additionally, applicants need to provide fingerprints to check their criminal history. The fingerprints should be electronic if possible, and the board will use them to get criminal records from the Department of Justice and the FBI. They can also get updates on any new arrests.

If a worker associated with a licensed contractor, or a home improvement salesperson, is arrested, the relevant authorities can ask them to show how the case was resolved. They must provide official paperwork, like court or sentencing documents, within 90 days of the case's conclusion or the request. Not providing this information can lead to discipline.

This law states that if you want to apply for a license, you must show that you've never been denied a license or had one revoked for reasons that would affect your current application. If your application is denied, the board must tell you when you can apply again, usually after one year, unless they say you can reapply sooner.

This law says that a business, like a corporation or partnership, can't get a license if any key person involved, such as a director or manager, doesn't meet the necessary qualifications, except for qualifications related to knowledge and experience.

This law requires a surety bond from the person qualifying for a contractor's license, ensuring that certain parties can seek compensation if they suffer damage because the contractor violates construction laws. This bond benefits homeowners with damaged family residences, property owners building single-family homes (not for sale), anyone harmed by the licensee's fraud, employees who aren't paid wages, and individuals or groups not receiving fringe benefits owed by employers. The bond is not needed if the individual licensee or a general partner personally qualifies for the license instead of through a separate qualifier.

This law sets rules for claims on contractor bonds related to unpaid wages or fringe benefits. The maximum payout on such claims is $4,000, and if total claims exceed the bond amount, the funds are divided among claimants proportionally. A contractor's license cannot be renewed or reinstated if they have unpaid judgments or claims over the bond amount. Claims must generally be made within two years, with specific conditions depending on the license status and type of bond. Sureties must notify the registrar about payments made, and licensees can protest claims before payment. Failure to protest can lead to license suspension if debts aren't settled. If a surety is unpaid, related licenses cannot be renewed. Legal fees cannot be deducted from these bonds.

If a contractor talks about any required bond in their advertising or when trying to attract customers, their contractor's license can be suspended.

This law ensures that a person applying for or renewing a contractor's license in California cannot be denied a license bond based on their race, religion, color, national origin, ancestry, or gender. If someone is denied a bond for these reasons, they can seek actual damages plus an additional $250 for each offense.

This law states that if a licensed business doesn't keep up with the necessary bond, their license can be suspended or taken away according to specific procedures.

This law requires contractors wishing to get or renew their licenses in California to post a bond if they have any outstanding final judgments against them for not paying contractors, suppliers, or workers. This ensures that there's money available to cover these debts. If a contractor fails to notify the board about such judgments within a certain timeframe, their license can be suspended. Suspended licenses can only be reinstated once the contractor proves they've settled their debts or reached an agreement. The law also details what happens to licenses and personnel if judgments are connected to their work. Additionally, unresolved judgments related to construction activities must be taken seriously, and failures to report these can lead to disciplinary action.

This California law requires licensed contractors to inform the registrar in writing if they are convicted of a felony or any crime that affects their ability to perform as a licensed contractor, within 90 days of learning about their conviction. The law also mandates a study on claims related to construction defects in rental units to evaluate if additional reporting requirements would help protect the public. This study examines if more rules for reporting legal outcomes, like settlements or awards, could identify contractors who might require enforcement action. Licensees and consumers participate in the study voluntarily, and certain documents related to the implementation are exempt from public access.

This law requires limited liability companies (LLCs) to carry liability insurance to cover damages from mistakes or problems with the contracting services they offer. Depending on the number of people involved with the company, the required insurance amounts vary, with a minimum of $1 million for smaller companies and up to $5 million for larger ones. The insurance must be valid for set periods and can be affected by claims made or incidents occurring during those times. Even if insurance is used up during a period, companies must replenish it for the next one. When closing the business, companies need to ensure insurance coverage for three more years if possible. Finally, companies must submit proof of this insurance to the state's registrar, and some details may be made public online.

If you're a contractor and you find yourself facing a lawsuit where the outcome involves fraud, negligence, or similar issues, you need to report it to the authorities within 90 days if the judgment or settlement is over $1 million. This requirement only applies if the case involves serious structural risks in multifamily residential buildings. When the court calls it a 'complex case' due to construction defects, you should definitely report it. Just be aware this doesn't apply to certain residential constructions under different rules. If multiple contractors are involved, only those with significant liability must report, and any liability under $15,000 doesn't require reporting. Your report should include specific case details like court names or case numbers. Authorities will review these reports and decide if further action or investigation is needed, but if they return the report with no issues, it counts as settled in your favor. While you won't face criminal charges for not reporting, not doing so could lead to disciplinary actions.

If an insurance company pays a judgment, settlement, or arbitration award involving a contractor, it must report details to the registrar, including the contractor's name, license number, and payment information, within 30 days. The registrar reviews these reports and may return them to the contractor without further action if there's no indication of wrongdoing, the public interest has been served, or no disciplinary action is needed. If further information is needed, the report is treated as a complaint and may be investigated. This process doesn't limit the registrar's ability to investigate contractor actions independently.

This law says that if a civil case involves someone who is, or was, a licensed contractor or part of their team, certain rules apply. Contractors who report information about a case to the licensing board won't break confidentiality agreements by doing so. The board can create new rules to support how these reporting requirements work.

If you have a valid professional license and join the U.S. armed forces, you can appoint someone to manage your business while you're away and up to a year after you leave the military. You must pay the renewal fee for your license during this time. You have 30 days after joining the military to notify the registrar about the person handling your business. This person must meet certain qualifications and can't have committed certain crimes. If they do anything that would disqualify them from a license, they will be removed from managing the business after a formal hearing.

This law requires licensed contractors to maintain a bond through an approved insurer or a specific deposit. By January 1, 2020, all other forms of deposit must be replaced by a surety bond or an approved deposit. If a bond is challenged in court, it can't be released until the court decides. If a deposit isn't enough to cover all claims, it's shared proportionally among claimants. Exceptions exist for certain bond equivalents. Since January 1, 2019, only specified bond alternatives are accepted. Claims against bonds must meet certain timelines, particularly for recovering wages or fringe benefits. The Labor Commissioner handles claims about unpaid employee wages and benefits. Legal fees aren't charged against deposits made before January 1, 2019.

This section requires contractors in California to have a bond, which is like an insurance policy, meant to protect people who might be harmed by the contractor's actions. The bond must be from a recognized surety company and benefits several groups. It protects homeowners and property owners if a contractor damages their home due to rule-breaking. It also covers people harmed by the contractor's intentional wrongdoings or fraud. Employees can benefit from the bond if the contractor fails to pay their wages or fringe benefits. Finally, it assures payments related to employee benefits, whether the work is private or public.

If you're applying for, renewing, or maintaining a contractor license in California, you need to provide a $25,000 bond. This bond is like a financial guarantee. For most claims, the bond pays out up to $7,500, but more money is reserved for certain beneficiaries mentioned in another related law. If you've been convicted or cited for certain violations that hurt the public, you might need to post double this bond amount. However, if your license is inactive, you don't need to post a bond during that time. This rule started on January 1, 2023.

If you're applying for or maintaining a license for a limited liability company, you need a $100,000 surety bond. This bond protects employees if their employer doesn't pay them properly. It also protects benefits like wages and fringe benefits. If the company has a union agreement, the bond also covers contributions to welfare, pension, and apprentice programs. You don't need the bond if the company's license is inactive.

This law explains how contractors in California can have their licenses reinstated if they need to provide a bond. Normally, if the bond is submitted within 90 days of its start date, the license can be restored back to that start date. Even if the bond is submitted after 90 days, the license can still be reinstated to the start date if the contractor can prove that not filing the bond on time was due to reasons they couldn't control.

This section outlines requirements for certain applicants or licensees whose licenses have had disciplinary action, whether suspended or revoked. Such individuals and firms must file a special contractor's bond as a condition to obtain, renew, or restore their license. The bond amount is determined by the severity of the past violation but must be at least $25,000 and no more than ten times the amount specified in another law. The bond must be separate from other bonds, stay on file for at least two years, and remain until the license is current and in good standing. This provision is effective starting January 1, 2023.

This section outlines when a qualifying individual, who is essentially a person responsible for a business's compliance with contractor rules, needs to have a special bond worth $25,000. This bond is separate from other contractor bonds and is often needed to get or keep a license. People working for federally recognized tribes don't need this bond. For corporations, if the person in charge owns 10% or more of the voting stock and certifies it, they don't need this bond either. The same applies to limited liability companies if the qualifying individual owns at least 10%. If claims are made against this bond, there are limits on how much can be paid out, except for certain beneficiaries who might claim more.

After you submit your application and pay the initial fee to become a contractor, the registrar will review and approve it. If all checks out, they'll let you know within 15 days that you can get your contractor's license once you pay another fee. Once that's done, you're officially licensed to work as a contractor following the rules of this chapter.

When you receive a professional license, you'll get a plastic ID card for free, which shows you're officially licensed. If your license is suspended, revoked, or not renewed, you need to return the card to the board within five days. If someone who was issued a card leaves their position with a company that's licensed, they have to give the card back to the company, which then needs to send it to the board for cancellation within five days.

If someone applies for a contractor license, it can be denied if they break rules or have a criminal background relevant to the job. If denied for a crime, the board must tell the applicant when they can try again, within five years. Applicants can show they've changed when reapplying. Instead of denying a license, the board can give a temporary one with conditions. If these conditions are violated, it can be revoked. These proceedings follow specific government procedures.

This law explains when a license application for contractors in California becomes void. An application is void if: the applicant doesn't pass the exam within 18 months, doesn't pay the initial fee within 90 days after notification, doesn't provide required documents or bonds within 90 days, withdraws the application, doesn't fix a rejected application in 90 days, or if the application is denied after disciplinary actions. However, the void date can be extended up to 90 days or the exam rescheduled if a medical emergency or uncontrollable event is proven. Once void, the application stays with the registrar, and a new application requires a fee.

This law says that a business must display its license at its main office or principal place of business. They must also be able to show proof of their license and its renewal whenever asked.

This law states that contractor licenses in California cannot be transferred to another person or entity. However, if a license is canceled, revoked, suspended, or expired, it can be reissued to an individual, partnership, corporation, or limited liability company under specific conditions. A corporate or LLC license number can be reassigned in instances like mergers or changes in business status, but the new entity must continue the old business. An individual license can also be reassigned to a family member of a deceased or absent licensee to maintain a family business. Immediate family includes close relatives like spouse, parents, siblings, and children.

This law applies when certain events, like a death or dissolution, happen to licensed contractors or business entities. For individual licenses, the license is canceled upon death, but the family can request to continue the license temporarily to finish existing work. Partnerships must notify the authority if a partner passes away or leaves. They need to file for license continuation quickly and eventually get a new license to keep working. The same rules apply to joint ventures and corporations when a major change occurs, like dissolving or merging. If you don't notify the board within 90 days about these changes, there could be disciplinary actions, or the license might automatically be canceled. However, if you dispute why or when the license was canceled, you can file a petition within 90 days to the registrar.

If someone who holds a professional license in California chooses to give it up voluntarily, the state will officially cancel the license once they receive the surrender request. Importantly, any fees paid before surrendering the license won't be refunded. To get the license back, the person has to pay all required fees again and fulfill the same criteria as if they were applying for it the first time.

This law says that if a corporation or limited liability company (LLC) contractor isn't registered and in good standing with California's Secretary of State, their contractor's license will be automatically suspended after 30 days of being notified. To lift the suspension, the company must prove they are properly registered. If an LLC's license is suspended, certain individuals in the company can be personally responsible for up to $1 million in damages for projects done without a valid license, unless there is substantial compliance with licensing rules. This rule doesn't apply to federally recognized or participating tribes.

If a contractor in California doesn't need to actively use their license, they can put it on hold by applying for an 'inactive' status, which lasts up to four years. While the license is inactive, they won't need to meet bonding or qualification requirements, and they can't work as a contractor until they reactivate it. To reactivate, they'll need to apply, pay the fee, and fulfill other requirements, but they won't have to take an exam. Even with an inactive license, the contractor can still face disciplinary actions from the board for any violations.

When you first get a new license, it's on probation until you renew it. If the registrar hears about something you've done wrong that could lead to the license being denied, revoked, or suspended, they have 30 days to tell you to explain why your license shouldn't be canceled. This process follows specific government procedures, and you can't renew the license while this process is ongoing.