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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKvTABLE OF CONTENTSPageAbout this Book . xiiiSummary of Recent Changes to Construction orContractors’ Law . xvSections Affected by 2020 Legislation. xixCSLB History & Background . xxvCSLB Mission. xxviiContractors State License Board Offices & Test Centers . xxixReference Sections . 1Section I. The California Contractor LicenseChapter 1.Becoming a California Licensed Contractor . 3General Requirements . 3Work Experience Requirements . 5License Classifications . 8Applying for a License. 13Licensing Examinations. 18Issuing a License. 23Financial Requirements . 25Chapter 2.Your Existing License: Maintainingand Changing It . 27Bonds. 27Judgments and Outstanding Liabilities . 30Workers’ Compensation Insurance Coverage . 33Liability Insurance Coverage for LimitedLiability Companies . 33Adding a Classification to an Existing License. 34Changes in Personnel. 35Changes in Business Name or Address . 37PreviousNext Page
viTHE CALIFORNIA LICENSE LAW & REFERENCE BOOKPageChanges in Business Type . 38Inactivating and Reactivating a License. 39Renewing Your License . 42Cancellation of a License . 44Chapter 3.Access to Licensee Information . 47Available Documents, Complaint Records,Fees . 47Information Regarding Individual LicenseRecords . 47Information Regarding Accessing Large Quantitiesof License Information . 48Information Regarding Pending ApplicationRecords . 49Information Regarding Legal Action AgainstContractors. 50Documents Available from CSLB . 51Chapter 4.Enforcement Procedures: Complaints andCitations . 55Complaints Against Licensed Contractors. 55Addressing Complaints Against UnlicensedContractors. 58Section II. Home ImprovementChapter 5.Home Improvement . 61Home Improvement Contractor . 61Home Improvement Contracts . 61Home Warranties . 63Home Improvement SalespersonRegistration . 63Registrar-Approved Joint ControlAgreements . 65Joint Control Addendum . 67PreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKviiPageMechanics Lien Warning . 69Section III. Business ManagementChapter 6.Managing a Business . 71The Contractor Manager. 71Principles of Management . 72Establishing Your Business . 74Financial Responsibility and Control . 86Financial Management . 97Equity Funds. 98Debt . 98Operations Management. 99Legal Considerations and Remedies . 105California Mechanics Liens and Stop Notices . 110Glossary of Terms Associated withMechanics Liens . 116Expert Advisors. 120Bidding on Government Contracts . 120Section IV. Construction Standards and Safety RegulationsChapter 7.Safety and Health in Construction . 123Responsible Agencies . 123Construction Safety Legal Requirements . 125Multiple Employer Worksites . 126Injury and Illness Prevention Program (IIPP). 127Employee Complaint Rights and Protections . 130Injury and Illness Reporting and RecordkeepingRequirements . 130Permits . 132Variances. 133Investigations of Unsafe Conditions . 133Hazardous Substances . 135PreviousNext Page
THE CALIFORNIA LICENSE LAW & REFERENCE BOOKviiiPageCarcinogen Control . 138Confined Spaces . 142Excavations and Trenches . 142How to Obtain Additional Information . 143Chapter 8.Regional Notification Centers: UndergroundService Alert. 147Chapter 9.Preservation of Native American Remains . 151Reporting Requirement. 151Penalties. 152Additional Information . 152Chapter 10.Construction of Wells . 153License Required for Water Wells. 153Reporting Requirements . 153California Department of Water ResourcesRegional Offices. 155Well Standards. 156Law Sections . 157Section V. The Department of Consumer AffairsChapter 11.Laws Governing the Department ofConsumer Affairs . 159General Provisions . 160The Department . 176The Director of Consumer Affairs . 210Funds of the Department . 219Consumer Affairs . 224Public Members. 231Licensee. 233Dispute Resolution Programs . 236Joint Committee on Boards, Commissions,and Consumer Protection. 243PreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKixPageReview of Boards under the Department ofConsumer Affairs . 243Denial, Suspension and Revocation of Licenses . 245General Provisions . 246Denial of Licenses . 247Suspension and Revocation of Licenses . 256Public Reprovals . 268Examination Security . 269Section VI. The Contractors State License Board;License Law, Rules and Regulations, andRelated LawsChapter 12.Contractors’ State License Law . 271Contractors. 281Administration . 281Application of Chapter . 292Exemptions . 314Classifications . 321Licensing . 329Records . 369Arbitration . 371Disciplinary Proceedings. 379Workers’ Compensation Insurance Reports. 408Revenue . 413The Construction Management EducationSponsorship Act of 1991 . 416Renewal of Licenses . 421Home Improvement Business . 424Asbestos Consultants . 473Prohibitions . 478Home Inspectors. 480Home Energy Rating System (HERS) HomeInspections . 485PreviousNext Page
THE CALIFORNIA LICENSE LAW & REFERENCE BOOKxPageChapter 13.Contractors State License Board Rules andRegulations . 487List of Current Board Rules and Regulations. 487CA Code of Regulations: Title 16. Division 8 . 490Definitions . 490Revenue . 490Application for License. 491Classification. 497Examinations . 512Renewal of License . 513Bonds. 513Special Provisions . 527Disciplinary Guidelines. 537Citation . 576Arbitration . 581History Notes for Current Board Rules andRegulations . 582History Notes for Repealed Board Rules andRegulations . 596AppendixExtracts from Laws Related to CSLB . 603California Constitution . 603Business and Professions Code . 603Civil Code . 615Code of Civil Procedure . 707Family Code . 740Financial Code . 750Government Code. 752Health and Safety Code . 797Insurance Code . 832Labor Code . 835Penal Code . 1046Public Contract Code . 1061PreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxiPagePublic Resources Code . 1096Public Utilities Code . 1101Revenue and Taxation Code . 1110Streets and Highways Code . 1114Unemployment Insurance Code . 1129Vehicle Code . 1147Water Code. 1152Additional Resources . 1155Index . 1165PreviousNext Page
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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxiiiABOUT THIS BOOKThe California Contractors License Law & ReferenceBook begins with several narrative chapters thatdescribe required licensing and legal processesaffecting contractors. California contracting laws,rules, and regulations are detailed in the laterchapters; laws and regulations are those in effect onJanuary 1, 2021, unless otherwise noted.PreviousNext Page
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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxvSUMMARY OF RECENT CHANGES TOCONSTRUCTION OR CONTRACTORS’ LAWEffective January 1, 2021Unless indicated otherwiseAB 1551 (Arambula)Amends Section 22684 of the Financial Code and Sections5898.17 and 5913 of the Streets and Highways CodeThis bill relates to Property Assessed Clean Energy(PACE) financing home improvements through PACEassessment contracts, as regulated by the CaliforniaFinancing Law and the Streets and Highways Code. Thebill prohibits “prepayment penalties” in PACE assessmentcontracts and prohibits PACE assessments on propertieswith reverse mortgages. This bill also requires the PACEFinancing Estimate and Disclosure be provided to thehomeowner in printed, paper form, unless the propertyowner signs a printed paper document opting out of ahard copy; if they opt-out, they may receive the disclosureelectronically.(Chapter 156, Statutes of 2020)AB 2210 (Aguiar-Curry)Amends Sections 7109.5 and 7110.5 of the Business andProfessions CodeThis bill authorizes disciplinary action against a licensedcontractor for violations of tree worker safety regulationsadministered by the California Division of OccupationalSafety and Health without regard to whether death orserious injury to an employee resulted from the violation.The bill also extends the time for the registrar to bringdisciplinary action against a licensed contractor forPreviousNext Page
xviCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKviolations of the Labor Code or the specified tree safetyregulations from 180 days to 18 months.(Chapter 128, Statutes of 2020)AB 2471 (Maienschein)Amends Sections 7150, 7159, and 7159.10 of the Businessand Professions Code, Sections 1689.5, 1689.6, 1689.7,1689.13, 1689.20, 1689.21, and 1689.24 of the Civil Code,and Sections 5898.16 and 5898.17 of the Streets andHighways CodeThis bill extends the right to cancel contracts for persons65 years of age or older from three business days to fivebusiness days for the following transactions: homesolicitation contracts, home improvement contracts,Property Assessed Clean Energy assessment contracts,service and repair contracts, and seminar sales contracts.(Chapter 158, Statutes of 2020)AB 3087 (Brough)Amends Section 7065 of the Business and ProfessionsCodeThis bill authorizes the registrar to contract with a publicor private organization to administer, and provideservices and materials for, CSLB’s contractor licenseexams.(Chapter 295, Statutes of 2020)SB 865 (Hill)Amends Sections 4216, 4216.1, 4216.2, 4216.3, 4216.4,4216.6, 4216.12, and 4216.17 of the Government CodeThis bill makes several changes to the Dig Safe Act of2016, including renaming the California UndergroundFacilities Safe Excavation Board to “Dig Safe Board”;updating requirements about the exchange of informationand records between the Dig Safe Board and regionalPreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxviinotification centers (RNC); requiring that all newsubsurface installations use specified mappingtechnology; and requiring that an excavator notify theRNC within 48 hours of discovering or causing damage.The bill also updates some of the enforcementresponsibilities of the Dig Safe Board, including theoption to require that violators take an educational coursein lieu of paying a fine.(Chapter 307, Statutes of 2020)SB 1189 (McGuire)Amends Sections 7028.16, 7055, and 7151 of, and addsSection 7057.5 to the Business and Professions Code.Amends Sections 667.16 and 670 of the Penal CodeThis bill creates a new classification of contractingbusiness called “residential remodeling contracting,”which is defined as projects that make improvements to,on, or in an existing residential wood frame structure thatuse at least three unrelated building trades or crafts for asingle contract; a list of trades is included in the bill. Thebill also includes in the definition of “home improvement”the reconstruction, restoration, or rebuilding ofresidential property damaged or destroyed by a disasterfor which either the governor or president has declared astate of emergency. The bill also expands the type ofcontracting activity in a declared disaster zone for which aperson without a contractor’s license can be prosecuted.(Chapter 364, Statutes of 2020)PreviousNext Page
xviiiCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKSB 1474 (Committee on Business, Professions andEconomic Development)Amends a number of sections of law in the Business andProfessions Code and one section of the Education Codeand adds a section of law to each the Business andProfessions Code and the Civil Code.This bill requires the registrar to retroactively reinstatean expired contractor’s license if a completed licenserenewal application is received with the appropriate feeswithin 90 days of the license expiration date. It alsomakes several minor, technical, non-substantive changesto the law.(Chapter 312, Statutes of 2020)PreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxixSECTIONS AFFECTED BY 2020 LEGISLATIONBusiness & Professions CodeSection AffectedType ofChange27101AmendedAmended312312164177Executive officersSystem for issuance of citations tolicensees; Contents; FinesTerms of office of agency membersRefugees, asylees, and special immigrantvisa holders; professional licensing; initiallicensure processQuarterly internet website postingrequirementsRequirement of fingerprints for criminalrecord checks; 01Added186203Added131206Amended312370211Fund accruals exempt from transferProfessions and Vocations FundAmendedAmended312121, 1.870157017.37028.7Information to be provided on internet;Entities in Department of ConsumerAffairs required to complyComposition of departmentDepartmental organizationAgency actions when licensee is oncertified list; Definitions; Collection anddistribution of certified list information;Timing; Notices; Challenges by applicantsand licensees; Release forms; Interagencyagreements; Fees; Remedies; Inquiries anddisclosure of information; SeverabilityCitation of chapterContractors’ State License Board;Members; Effect of repealPriority of board; Protection of the publicEnforcements of licensing provisions andworkers’ compensationInvestigators as peace officersFalse complaints against contractors;PenaltiesSeal of boardReport on complaints and case agingstatisticsIssuance of 261Next Page
xxCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKBusiness & Professions CodeSection AffectedPunishment for engaging in businesswithout license with respect to structuresdamaged by natural disaster for which7028.16state of emergency has been declaredLicensee’s statement on contracts; Notice7030requirements; ExceptionsAllegation and proof of license in action oncontract; Recovery of compensation paid tounlicensed contractor; Substantial7031compliance; Exceptions7055Branches of contracting business7057.5Residential remodeling contractorHazardous substance certificationexaminationInvestigation, classification, 7099.27099.97109.57110.57123.5Licensee; BondBond required where applicant or licenseehas unsatisfied final judgment for failureto pay contractor, subcontractor, consumer,materials supplier, or employee; Notice ofunsatisfied final judgments; Suspension fornoncompliance; Reinstatement;Disqualification from serving as personnelof record for other licensee; DisciplinaryactionPublic posting following acceptance ofapplicationRules of conduct for arbitrations; courtprocedure and exclusion of liabilityRegulations for assessment of civilpenalties; Factors; Maximum amount;Letter of admonishmentLetter of admonishmentViolation of safety provisionsInitiation of action against contractor afterreceipt of Labor Commissioner’s finding ofwillful violation of Labor Code ortransmission of citations.Disciplinary action for violation ofoverpricing following emergency or majordisasterPreviousType ded312406AmendedAmended311329Next Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxxiBusiness & Professions CodeSection AffectedDisposition of fees and penalties;7135AppropriationPercentage to be transferred to Consumer7136Affairs Fund7137Fee sfer of funds for use of UniformConstruction Cost Accounting Commission;Recommendation; ReimbursementEarned fee; Nonrefundability whenapplication is filedLegislative findings and declarationsCreation of accountRetroactive issuance of license after failureto renewFailure to resolve outstanding liabilities asgrounds for refusal to renew license7151“Person”“Home improvement”; “Home improvementgoods or services”71587158False completion certificatesFalse completion 1617161Requirements for home improvementcontractsContract amount; Finance charges;Downpayment; Violations; Restitution andpunishmentContract amount; Finance charges;Downpayment; Violations; Restitution andpunishmentService and repair contract definedFurther requirements; Statement of agreedamount; Payment due; Punishment forviolations; RestitutionFurther requirements; Statement of agreedamount; Payment due; Punishment forviolations; RestitutionSpecification of prohibited acts;MisdemeanorSpecification of prohibited acts;MisdemeanorPreviousType nded9292433432Amended158, 58415423424Next Page
xxiiCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKBusiness & Professions CodeSection AffectedComplaints regarding solar energy systems7170companies and solar contractorsCivil CodeSection AffectedRight to cancel home solicitation contract1689.6or offerForm of home solicitation contract or offer;1689.7Notice of cancellation1689.13Applicability to emergency repairs orservicesGovernment CodeSection 216.17DefinitionsParticipation in center by operators ofsubsurface installations; FeesDelineation of area; Required notificationand response; Ticket prerequisites, periodof validity, and expiration; Records;Special access sitesLocation and field marking of subsurfaceinstallations; Records; Relocation andremarking; Operator response; Notificationof failure to complyManual location of subsurface installationsin conflict with excavation; Use of vacuumexcavation devices; Use of power operatedor boring equipment; Duty of care;Notification of damage; Requiredcommunication between partiesPenalties for violation; Enforcement;Annual report of statewide informationregarding incident eventsCalifornia Underground Facilities SafeExcavation Board; Duties; ReviewCalifornia Underground Facilities SafeExcavation Board; Annual meeting;Grants for use of moneys in Safe EnergyInfrastructure and Excavation FundPreviousType ofChangeAmendedType ended158649Amended158651Amended158656Type ded307768Amended307771Page753Next Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKLabor CodeSection AffectedInvestigation of employee complaint;98.7Judicial relief1102.51720Employee’s right to disclose information togovernment or law enforcement agency;Employer prohibited from retaliation; Civilpenalty; Confidential communications“Public works”; “Paid for in whole or inpart out of public funds”; ExclusionsPenal CodeType ofChange343841Amended344871Amended346873Type ofChange396667.16670Scheme to defraud owner of structureregarding repairs for damage resultingfrom natural disaster for which state ofemergency has been declared; PunishmentStreets and Highways CodeSection AffectedOral confirmation of copy of contractassessment documents and related5913informationUnemployment Insurance CodeSection AffectedPurposes for which director must permit1095use of information in his or her possessionCalifornia Code of Regulations, Title 16Section Affected811PreviousFeesPageAmendedSection AffectedOverpricing of goods and services followingstate of emergency or major disaster;Penalty; Definitions.Enhanced sentence for fraud in repairingnatural disaster 1561116,1119ChapterNumberPage21, 3701135RegisterNumberPageType ofChangeAmendedType ofChangeAmendedType ofChangeAmended2020-44490Next Page
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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxxvCSLB HISTORY & BACKGROUNDThe Contractors State License Board (CSLB) was establishedin 1929 as the Contractors License Bureau under theDepartment of Professional and Vocational Standards. Today,CSLB is part of the Department of Consumer Affairs.A 15-member board appoints CSLB’s executive officer, orregistrar of contractors, and directs administrative policy forthe board’s operations. CSLB’s board includes nine publicmembers (eight non-contractors and one local building official),five contractors, and one labor representative. The governormakes 11 appointments and four are made by the Legislature.The board holds regularly scheduled public meetings at variouslocations in the state. These meetings provide the public withan opportunity for input on agenda items and other issues.CSLB licenses and regulates contractors in 44 licenseclassifications that constitute the construction industry.Currently, there are about 282,000 contractor licenses in thestate. The registrar oversees approximately 420 employees whowork at the headquarters office in Sacramento and field officesthroughout the state.Headquarters staff receive and process applications for newcontractor licenses, additional classifications, changes of licenserecords, and license renewals. Staff also review and maintainrecords of disciplinary actions initiated by the field offices,provide verified certificates of licensure used in court or otherlegal actions, and provide other support services.Headquarters directs the activities of field offices and initiatesall disciplinary actions resulting from investigations. Fieldoffice staff investigate consumer complaints againstcontractors. The Statewide Investigative Fraud Team (SWIFT)addresses unlicensed activity.CSLB’s website, www.cslb.ca.gov orwww.CheckTheLicenseFirst.com, provides the ability to lookPreviousNext Page
xxviCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKup a contractor by license number, name, or business name,and obtain the licensee’s contact information, license status,CSLB legal actions (if any), classifications held, business type,and bond and workers’ compensation insurance information.Home Improvement Salesperson registrations also are listed onthe website’s license look-up page.Identical information is available through CSLB’s automatedpublic information line, (800) 321-CSLB (2752), which operates24 hours per day. Also available is recorded information onlicensing and examination procedures, complaint proceduresand how to obtain information on a complaint that has beenreferred for legal action, the location and hours of CSLB offices,and current topics, such as recently passed laws or regulations.Callers also can order forms, applications, and otherpublications.The “Find My Licensed Contractor” feature on CSLB’s websiteallows users to search for licensed contractors in a specificclassification by geographic area based on zip code or city. Therandomly displayed results lin
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