Revenue - Contractors - Business & Professions - CA

Section § 7135

This law section states that any fees and penalties collected related to contractor licensing in California are to be put into a specific fund called the Contractors License Fund. The money in this fund is meant to be used for purposes outlined by this chapter, like enhancing the board's ability to manage and investigate contractors more effectively.

(a) The fees and civil penalties received under this chapter shall be deposited in the Contractors License Fund. All moneys in the fund are hereby appropriated for the purposes of this chapter.

(b) It is the intent of the Legislature that the board shall use moneys appropriated from the fund to improve its administrative and investigative oversight activities and capacity.

Contractors License Fund fees civil penalties

Section § 7135.1

This law states that each year, at least 20% of the money collected from certain fee increases should be used to crack down on unlicensed activities, as long as there’s no conflict with budget rules.

It is the intent of the Legislature that, each fiscal year the board shall designate, if appropriated in the Budget Act and to the extent that it does not conflict with the control language of the Budget Act, no less than 20 percent of the annual amount collected as a result of the fees increased by statutes enacted during the 1993 portion of the 1993–94 Regular Session to be used to enforce the provision of this chapter relative to unlicensed activity.

unlicensed activity fees Budget Act

Section § 7136

This law requires the director to allocate up to 10% of the Contractors State License Board's annual income to the Consumer Affairs Fund. This money helps cover the board's share of costs for running the department.

The director shall designate a sum not to exceed 10 percent of the total income of the Contractors State License Board for each fiscal year to be transferred to the Consumer Affairs Fund as the board’s share of the cost of administration of the department.

Contractors State License Board Consumer Affairs Fund fiscal year income

Section § 7137

This law outlines the various fees that the board can charge for different license and certification applications related to contracting in California. It sets both the amounts and the maximum potential increases for these fees, covering original licenses, additional classifications, renewals, and special certifications for asbestos and hazardous substances. It also provides a fee reduction for veterans. Additionally, it details charges for delinquent renewals, specific investigations, and administrative services like name changes and duplicate certificates. The board can also expedite application processes based on set criteria.

(a) The board may set fees by regulation. These fees shall be set according to the following schedule:

(1) Application fees shall be set as follows:

(A) The application fee for an original license in a single classification shall be four hundred fifty dollars ($450) and may be increased to not more than five hundred sixty-three dollars ($563).

(B) The application fee for each additional classification applied for in connection with an original license shall be one hundred fifty dollars ($150) and may be increased to not more than one hundred eighty-eight dollars ($188).

(C) The application fee for each additional classification pursuant to Section 7059 shall be two hundred thirty dollars ($230) and may be increased to not more than two hundred eighty-eight dollars ($288).

(D) The application fee to replace a responsible managing officer, responsible managing manager, responsible managing member, or responsible managing employee pursuant to Section 7068.2 shall be two hundred thirty dollars ($230) and may be increased to not more than two hundred eighty-eight dollars ($288).

(E) The application fee to add personnel, other than a qualifying individual, to an existing license shall be one hundred twenty-five dollars ($125) and may be increased to not more than one hundred fifty-seven dollars ($157).

(F) The application fee for an asbestos certification shall be one hundred twenty-five dollars ($125) and may be increased to not more than one hundred fifty-seven dollars ($157).

(G) The application fee for a hazardous substance removal or remedial action certification shall be one hundred twenty-five dollars ($125) and may be increased to not more than one hundred fifty-seven dollars ($157).

(2) The fee to take an examination conducted or administered by a public or private organization pursuant to Section 7065 shall be no greater than the actual cost of the administration of the examination and shall be paid directly to the organization by the applicant.

(3) Initial license and registration fees shall be set as follows:

(A) The initial license fee for an active or inactive license for an individual owner shall be two hundred dollars ($200) and may be increased to not more than two hundred fifty dollars ($250).

(B) The initial license fee for an active or inactive license for a partnership, corporation, limited liability company, or joint venture shall be three hundred fifty dollars ($350) and may be increased to not more than four hundred thirty-eight dollars ($438).

(C) The registration fee for a home improvement salesperson shall be two hundred dollars ($200) and may be increased to not more than two hundred fifty dollars ($250).

(D)

(i) The board shall grant a 50-percent reduction in the fees prescribed by this paragraph to an applicant who is a veteran of the United States Armed Forces, including the National Guard or Reserve components, and was not dishonorably discharged.

(ii) To demonstrate discharge grade at the time of the board’s request for the initial license or registration fee, the applicant shall provide the board a copy of a current and valid driver’s license or identification card issued by this state or another state with the word “Veteran” printed on its face or a copy of their DD214 long form.

(4) License and registration renewal fees shall be set as follows:

(A) The renewal fee for an active license for an individual owner shall be four hundred fifty dollars ($450) and may be increased to not more than five hundred sixty-three dollars ($563).

(B) The renewal fee for an inactive license for an individual owner shall be three hundred dollars ($300) and may be increased to not more than three hundred seventy-five dollars ($375).

(C) The renewal fee for an active license for a partnership, corporation, limited liability company, or joint venture shall be seven hundred dollars ($700) and may be increased to not more than eight hundred seventy-five dollars ($875).

(D) The renewal fee for an inactive license for a partnership, corporation, limited liability company, or joint venture shall be five hundred dollars ($500) and may be increased to not more than six hundred twenty-five dollars ($625).

(E) The renewal fee for a home improvement salesperson registration shall be two hundred dollars ($200) and may be increased to not more than two hundred fifty dollars ($250).

(5) The delinquency fee is an amount equal to 50 percent of the renewal fee, if the license is renewed after its expiration.

(6) Miscellaneous fees shall be set as follows:

(A) In addition to any other fees charged to C-10 contractors, the board shall charge a fee of twenty dollars ($20), to be assessed with the renewal fee for an active license, which shall be used by the board to enforce provisions of the Labor Code related to electrician certification.

(B) The board shall require a licensee that is subject to a public complaint requiring a professional or expert investigation or inspection and report pursuant to Section 7019 to pay those reasonable fees that are necessary to cover the costs of that investigation or inspection and report, in accordance with the following provisions:

(i) Fees shall be fixed in an amount not more than the board’s cost of contracting for the investigation or inspection and report, except that the minimum fee shall be one hundred dollars ($100) for each investigation or inspection and report and may be increased to not more than one thousand dollars ($1,000) for each investigation or inspection and report.

(ii) The fee shall only be assessed for an investigation or inspection and report that resulted in issuance of a letter of admonishment or a citation pursuant to Sections 7099 and 7099.9.

(iii) The full amount of the assessed fee shall be added to the fee for the active or inactive renewal of a licensee who is subject to this subparagraph. A license shall not be renewed without payment of the renewal fee and all fees for the investigation or inspection and report pursuant to this subparagraph.

(C) The service fee to deposit with the registrar lawful money or cashier’s check pursuant to paragraph (1) of subdivision (a) of Section 995.710 of the Code of Civil Procedure for purposes of compliance with any provision of Article 5 (commencing with Section 7065) shall be one hundred dollars ($100), which shall be used by the board only to process each deposit filed with the registrar, to cover the reasonable costs to the registrar for holding money or cashier’s checks in trust in interest bearing deposit or share accounts, and to offset the costs of processing payment of lawful claims against a deposit in a civil action.

(D) The fee for the processing and issuance of a duplicate copy of any certificate of licensure or other form evidencing licensure or renewal of licensure pursuant to Section 122 shall be twenty-five dollars ($25).

(E) The fee to change the business name of a license as it is recorded under this chapter shall be one hundred dollars ($100) and may be increased to not more than one hundred twenty-five dollars ($125).

(F) The service charge for a dishonored check authorized by Section 6157 of the Government Code shall be twenty-five dollars ($25) for each check.

(b) The board shall, by regulation, establish criteria for the approval of expedited processing of applications. Approved expedited processing of applications for licensure or registration, as required by other provisions of law, shall not be subject to this subdivision.

application fees original license additional classification

Section § 7137.5

This law states that $10,000 will be moved from the Contractors License Fund to support the California Uniform Construction Cost Accounting Commission. The commission needs to suggest a way for local public agencies to fund them starting July 1, 1991, based on their involved contract activities. Once this funding method is in place, they must pay back the $10,000 to the Contractors License Fund.

The sum of ten thousand dollars ($10,000) shall be transferred from the Contractors License Fund to the Controller for the exclusive use of the California Uniform Construction Cost Accounting Commission.

The commission shall prepare a recommendation to the Legislature for a local public agency source to fund the commission beginning July 1, 1991, which will provide revenue supported by the contract activities represented by the commission’s authority.

Upon adoption of this funding program, the commission shall reimburse the Contractors License Fund in the amount of ten thousand dollars ($10,000).

Contractors License Fund California Uniform Construction Cost Accounting Commission local public agency funding

Section § 7138

In simple terms, once you pay a fee related to a contractor service or application under Section 7137, that fee goes into the Contractors License Fund and you can't get a refund. It’s considered earned and is non-refundable.

Notwithstanding any other provision of law, a fee paid in connection with a service or application covered by Section 7137 shall accrue to the Contractors License Fund as an earned fee and shall not be refunded.

non-refundable fees Contractors License Fund earned fee

Section § 7138.1

This law requires the board to set fees so that they collect enough money to keep their reserve fund around six months' worth of their annual spending. It's about ensuring the board has enough funds without going overboard.

Notwithstanding Section 7137, the board shall fix fees to be collected pursuant to that section in order to generate revenues sufficient to maintain the board’s reserve fund at a level not to exceed approximately six months of annual authorized board expenditures.

reserve fund board fees annual expenditures