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CaliforniaContractors License Law& Reference Book2022 EditionWith Rules and RegulationsContractors State License BoardState of CaliforniaGavin Christopher Newsom, GovernorPreviousNext Page
This book is an official publication of the State of California. It may not be reproducedin whole or in part without the express permission of the California Contractors StateLicense Board.The California Contractors License Law & Reference Book (2022 Edition) is available fromMatthew Bender & Company, Inc. Copies may be purchased by calling 1-877-394-8826;or through the www.lexisnexis.com/bookstore website. The price is 44.00, plus 10.44Shipping & Handling.The California Contractors License Law & Reference Book is not sold at any officeof the Contractors State License Board. Copies may be available from specialty bookstores—check your local telephone directory.ISBN: 978-1-66333-153-3 2022 California Contractors State License Board 2022 Matthew Bender & Company, Inc., a member of the LexisNexis Group.All rights reserved.LexisNexis, the knowledge burst logo, and Michie are trademarks of Reed ElsevierProperties Inc., used under license. Matthew Bender is a registered trademark of MatthewBender Properties Inc.The California regulations appearing in this publication have been extracted fromBarclays Official California Code of Regulations, copyright 2022, State of California.This material may not be commercially reproduced or sold in printed or electronic formwithout written permission of Thomson/West, and is subject to the following disclaimer:THOMSON/WEST MAKES NO WARRANTY OR REPRESENTATION WHATSOEVER,EXPRESS OR IMPLIED, WITH RESPECT TO THE MERCHANTABILITY OR FITNESSFOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE INFORMATION CONTAINED IN THIS PUBLICATION; ANDTHOMSON/WEST ASSUMES NO LIABILITY WHATSOEVER WITH RESPECT TO ANYUSE OF THIS PUBLICATION OR ANY PORTION THEREOF OR WITH RESPECT TOANY DAMAGES WHICH MAY RESULT FROM SUCH USE.Matthew Bender & Company, Inc.Editorial Offices9443 Springboro PikeMiamisburg, OH 45342800-833-9844www.lexisnexis.com(Pub. 29700)PreviousNext Page
CONTRACTORS STATE LICENSE BOARDOFFICERS & MEMBERSSusan Granzella, Chair, Public MemberMary Teichert, Vice Chair,“A” General Engineering ContractorDiana Love, Secretary,Public Member – Senior Citizen OrganizationDavid De La Torre, Public MemberFrank Altamura, Jr., Public MemberRodney M. Cobos, Public MemberMiguel Galarza, “B” Contractor MemberDonald Giarratano, “C” Contractor Member OrganizationMichael Mark, Public Member – Labor OrganizationSteve Panelli, Public Member – Building OfficialCynthia Rich, Public MemberJames Ruane, “C” Specialty Contractor MemberJohnny Simpson, Public MemberDavid R. Fogt, Registrar of ContractorsPreviousNext Page
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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 2021 Legislation . xxiCSLB History & Background. xxviiCSLB Mission . xxixContractors State License Board Offices & Test Centers . xxxiReference Sections . 1Section I. The California Contractor LicenseChapter 1.Becoming a California Licensed Contractor . 3General Requirements . 3Work Experience Requirements . 5License Classifications . 8Applying for a License . 14Licensing Examinations . 19Issuing a License . 24Financial Requirements . 26Chapter 2.Your Existing License: Maintainingand Changing It . 29Bonds . 29Judgments and Outstanding Liabilities . 32Workers’ Compensation Insurance Coverage . 35Liability Insurance Coverage for LimitedLiability Companies . 36Adding a Classification to an Existing License . 36Changes in Personnel . 37Changes in Business Name or Address . 40PreviousNext Page
viTHE CALIFORNIA LICENSE LAW & REFERENCE BOOKPageChanges in Business Type . 41Inactivating and Reactivating a License . 42Renewing Your License . 45Cancellation of a License . 46Chapter 3.Access to Licensee Information . 51Available Documents, Complaint Records,Fees. 51Information Regarding Individual LicenseRecords . 51Information Regarding Accessing Large Quantitiesof License Information . 52Information Regarding Pending ApplicationRecords . 53Information Regarding Legal Action AgainstContractors . 54Documents Available from CSLB . 55Chapter 4.Enforcement Procedures: Complaints andCitations . 59Complaints Against Licensed Contractors . 59Addressing Complaints Against UnlicensedContractors . 62Section II. Home ImprovementChapter 5.Home Improvement . 65Home Improvement Contractor . 65Home Improvement Contracts . 65Home Warranties . 67Home Improvement SalespersonRegistration . 67Registrar-Approved Joint ControlAgreements . 70Joint Control Addendum . 71PreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKviiPageMechanics Lien Warning . 73Section III. Business ManagementChapter 6.Managing a Business . 75The Contractor Manager . 75Principles of Management . 76Establishing Your Business . 78Financial Responsibility and Control. 90Financial Management . 102Equity Funds . 103Debt . 104Operations Management. 105Legal Considerations and Remedies . 110California Mechanics Liens and Stop Notices . 115Glossary of Terms Associated withMechanics Liens . 121Expert Advisors . 125Bidding on Government Contracts . 125Section IV. Construction Standards and Safety RegulationsChapter 7.Safety and Health in Construction. 127Responsible Agencies . 127Construction Safety Legal Requirements . 129Multiple Employer Worksites . 130Injury and Illness Prevention Program (IIPP) . 131Employee Complaint Rights and Protections . 134Injury and Illness Reporting and RecordkeepingRequirements . 134Permits . 136Variances. 137Investigations of Unsafe Conditions . 138Hazardous Substances . 139PreviousNext Page
viiiTHE CALIFORNIA LICENSE LAW & REFERENCE BOOKPageCarcinogen Control . 142Confined Spaces . 146Excavations and Trenches . 147How to Obtain Additional Information . 148Chapter 8.Regional Notification Centers: UndergroundService Alert . 153Chapter 9.Preservation of Native American Remains. 157Reporting Requirement . 157Penalties. 158Additional Information . 158Chapter 10.Construction of Wells . 159License Required for Water Wells . 159Reporting Requirements . 159California Department of Water ResourcesRegional Offices . 160Well Standards . 161Law Sections . 163Section V. The Department of Consumer AffairsChapter 11.Laws Governing the Department ofConsumer Affairs. 165General Provisions . 166The Department . 183The Director of Consumer Affairs . 224Funds of the Department . 233Consumer Affairs. 239Public Members . 246Licensee . 248Dispute Resolution Programs . 251Joint Committee on Boards, Commissions,and Consumer Protection. 258PreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKixPageReview of Boards under the Department ofConsumer Affairs. 258Denial, Suspension and Revocation of Licenses . 260General Provisions . 261Denial of Licenses . 263Suspension and Revocation of Licenses . 273Public Reprovals . 286Examination Security . 286Section VI. The Contractors State License Board;License Law, Rules and Regulations, andRelated LawsChapter 12.Contractors’ State License Law . 289Contractors . 300Administration. 300Application of Chapter . 311Exemptions . 334Classifications . 341Licensing . 349Records . 394Arbitration . 396Solar Energy System Restitution Program . 405Disciplinary Proceedings. 411Workers’ Compensation Insurance Reports . 441Revenue . 446The Construction Management EducationSponsorship Act of 1991 . 450Renewal of Licenses . 455Home Improvement Business . 459Asbestos Consultants . 503Prohibitions . 509Home Inspectors . 510PreviousNext Page
xTHE CALIFORNIA LICENSE LAW & REFERENCE BOOKPageHome Energy Rating System (HERS) HomeInspections . 516Chapter 13.Contractors State License Board Rules andRegulations . 517List of Current Board Rules and Regulations . 517CA Code of Regulations: Title 16. Division 8 . 520Definitions . 520Revenue . 520Application for License . 521Classification . 527Examinations . 544Renewal of License . 544Bonds . 545Special Provisions . 559Disciplinary Guidelines . 572Citation . 609Arbitration . 614History Notes for Current Board Rules andRegulations . 615History Notes for Repealed Board Rules andRegulations . 629AppendixExtracts from Laws Related to CSLB . 637California Constitution . 637Business and Professions Code. 637Civil Code . 650Code of Civil Procedure . 745Family Code . 779Financial Code . 789Government Code . 791Health and Safety Code . 837Insurance Code . 873PreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxiPageLabor Code . 876Penal Code . 1093Public Contract Code . 1108Public Resources Code. 1144Public Utilities Code. 1149Revenue and Taxation Code . 1158Streets and Highways Code . 1162Unemployment Insurance Code . 1178Vehicle Code. 1197Water Code. 1203Additional Resources . 1207Index. 1217PreviousNext 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, 2022, unless otherwise noted.PreviousNext Page
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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxvSUMMARY OF RECENT CHANGES TOCONSTRUCTION OR CONTRACTORS’ LAWEffective January 1, 2022Unless indicated otherwiseAB 107 (Salas)Amends many sections of California state codes; as itrelates to CSLB, amends, repeals, and adds Sections115.6, 115.8, and 115.9 to the Business and ProfessionsCodeEffective July 1, 2023, this bill requires boards within theDepartment of Consumer Affairs to, after appropriateinvestigation, issue a temporary license to an applicantmarried to or otherwise in union or partnership with anactive-duty military member when the applicant has acurrent similar license in another state. The bill identifiesspecified requirements to be met as a condition of issuingthe temporary license and it requires a board to issue thetemporary license within 30 days of confirming theapplicant has met those requirements. The bill providesthat the temporary license is not renewable and expires12 months after issuance or when an original license isissued. The bill additionally requires boards within theDepartment of Consumer Affairs to publish on theirinternet websites information about the licensing optionsavailable to military spouses.(Chapter 693, Statutes of 2021)PreviousNext Page
xviCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKAB 137 (Committee on Budget)Amends many sections of California state codes; as itrelates to CSLB, adds Article 6.5 (commencing withSection 7086) of Chapter 9 of Division 3, of the Businessand Professions CodeThis bill creates the Solar Energy System RestitutionProgram within the Contractors State License Law.Together with the 2021 Budget Act, this bill makesavailable a 5 million General Fund appropriation forCSLB expenditure until June 30, 2024, for the purposes ofthe program. The bill makes restitution available for anyperson who used a contractor after January 1, 2016, toinstall a solar energy system on a single-family residencewho can demonstrate a financial loss or injury to CSLB asa result of that transaction. The bill provides proceduresand criteria for implementation of the program.(Chapter 77, Statutes of 2021)AB 246 (Quirk)Repeals and adds Section 7110 to the Business andProfessions CodeThis bill makes a licensed contractor’s unlawful dumpingof debris a cause for disciplinary action against thecontractor. The bill also reorganizes Section 7110 fromparagraph form to an enumerated form to provide clarityand improve readability.(Chapter 46, Statutes of 2021)AB 569 (Grayson)Amends Section 7099.2 and 7099.9 of the Business andProfessions CodePreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxviiThis bill increases from 5,000 to 8,000 the maximumcivil penalty CSLB can assess against a licensedcontractor for most violations, and from 15,000 to 30,000 for the most serious violations. This bill alsoauthorizes CSLB to issue a Letter of Admonishment formore than one violation at a time.(Chapter 94, Statutes of 2021)AB 830 (Flora)Amends multiple sections of California state codes; as itrelates to CSLB, amends Sections 7068 and 7068.1 of theBusiness and Professions CodeThis bill defines the responsibilities of the qualifyingmembers of personnel on a contractor’s license as itrelates to their duty to supervise the constructionoperations of the license entity. The bill providesdefinitions of “bona fide employee” and “actively engaged”for the purposes of a responsible managing employee'sduty on a contractor’s license. The bill defines thequalifier’s duty of “supervision and control” to mean“direct supervision or control or monitoring and beingavailable to assist others to whom direct supervision andcontrol has been delegated.” The bill authorizes CSLB torequire an applicant for a contractor’s license to providethe qualifier’s current employment duty statementdescribing their responsibilities under the license andallows CSLB to take disciplinary action for failing to doso.(Chapter 376, Statutes of 2021)PreviousNext Page
xviiiCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKSB 607 (Min)Amends multiple sections of California state codes. As itrelates to CSLB, amends Section 7137, and amends,repeals, and adds Sections 115.5, 7071.6, 7071.8, and7071.9 of the Business and Professions Code.Effective January 1, 2022, this bill increases existing aswell as adds new licensing and application maintenanceand service fees for support of CSLB. The bill additionallyrevises and recasts CSLB’s fee statute and organizes feesby fee type, including different renewal fee amountsdependent on license entity type. In addition, effectiveJuly 1, 2022, this bill requires Department of ConsumerAffairs boards and bureaus to waive application andlicense fees for military family members. Also, effectiveJanuary 1, 2023, this bill increases the CSLB license,qualifier, and disciplinary bonds to 25,000.(Chapter 367, Statutes of 2021)SB 757 (Limón)Amends Sections 7151, 7152, 7156, 7159.5, 7162, and7170 of the Business and Professions CodeThis bill clarifies that a contract for a residential solarenergy system is considered home improvement wheninstalled on a residential building or property, for thepurposes of the home improvement contract requirementsunder the Contractors State License Law. The bill furtherensures home improvement salespersons must beregistered to the contractor they are soliciting,negotiating, or executing contracts for and they mustinform the homeowner on whose behalf they are soliciting.Where existing law prohibits a contractor from acceptingpayment for work not performed or materials notPreviousNext Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxixdelivered, this bill extends that prohibition to any suchpayments from lenders or financiers. Finally, the billrequires any representations made to a consumer about asolar energy product or performance to be included in thehome improvement contract.(Chapter 249, Statutes of 2021)SB 826 (Committee on Business, Professions andEconomic Development)Amends multiple sections of the Business and ProfessionsCode; as it relates to CSLB, amends Sections 7011.4,7017.3, 7058.5, 7058.6, 7124.6, and 7169 of the Businessand Professions Code.This bill makes technical, non-substantive changes to theContractors State License Law. The bill clarifies thatCSLB employs investigators and special investigators, notenforcement representatives. The bill also clarifies thatthe C-22 Asbestos Abatement Contractor License is anappropriate license classification to engage in asbestosrelated work. The bill additionally replaces an incorrectreference to law in the section of the Business andProfessions Code regulating letters of admonishment.Finally, the bill clarifies that the right to cancel periodreferenced in the solar disclosure document required byBusiness and Professions Code section 7169 is three daysfor contracts, and five days for contracts with a seniorcitizen.(Chapter 188, Statutes of 2021)PreviousNext Page
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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxxiSECTIONS AFFECTED BY 2021 LEGISLATIONBusiness & Professions CodeSection AffectedInformation to be provided on internet;Entities in Department of Consumer27Affairs required to complyInformation to be provided on internet;Entities in Department of Consumer27Affairs required to complyInformation to be provided on internet;Entities in Department of Consumer27Affairs required to complyInformation to be provided on internet;Entities in Department of Consumer27Affairs required to complyInformation to be provided on internet;Entities in Department of Consumer27Affairs required to complyProvision of federal employeridentification number or social security30number by licensee101Composition of department101Composition of departmentBoard required to expedite licensureprocess for certain applicants; Adoption115.5of regulationsRequirements for expedited licensure115.5processTemporary licensure process forspouses of active duty members of115.6Armed ForcesTemporary licensure process forspouses of active duty members of115.6Armed ForcesAnnual report on military, veteran,115.8and spouse licensurePublishing information on licensing115.9options available to military spouses130144144144161Terms of office of agency membersRequirement of fingerprints forcriminal record checks; ApplicabilityRequirement of fingerprints forcriminal record checks; ApplicabilityRequirement of fingerprints forcriminal record checks; ApplicabilityAvailability of public records at chargesufficient to pay costsPreviousType Amended615230Next Page
xxiiCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKBusiness & Professions CodeSection AffectedNotice of vacancy of department chiefor executive officer of any bureau or308boardEnforcement division for licensingprovisions and workers’ compensation7011.4insurance; Special investigatorsReport on complaints and case aging7017.3statisticsClassification or certification ofcontractors performing asbestos7058.5related workRegistration with Division ofOccupational Safety and Health ascondition of asbestos certification;Certification examination; Proof of7058.6current registration7068QualificationsDuty of individual qualifying on behalfof another; Acting as qualifyingindividual for additional person orfirm; Violation as cause for disciplinary7068.1action and misdemeanorBond as condition precedent to license;Aggregate liability of a surety against7071.6such bonds; Bond requirementsBond as condition precedent to license;Aggregate liability of a surety against7071.6such bonds; Bond requirementsBond required for restoration of7071.8suspended or revoked licenseBond required for restoration of7071.8suspended or revoked licenseRequirement of qualifying individual’s7071.9bond as condition precedent to licenseRequirement of qualifying individual’s7071.9bond as condition precedent to licenseReport to registrar of convictions;Study of judgments, arbitrationawards, settlements for constructiondefects in rental residential units;Contents of study7071.187086Administration upon appropriation7086.1Definitions7086.2Scope of article7086.3Awards limited to eligible claimants7086.4Eligilbity criteriaExceptions to ineligibility under7086.5Section § 7086.4PreviousType 06Added77406Next Page
CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKBusiness & Professions CodeSection Affected“Solar Energy System RestitutionProgram Claim” form; Additional7086.6information; Denial7086.7Documentation required for payment7086.8Payment limitations; ExpendituresApproval and disbursement timelines;7086.9Annual accounting statementNotice of licensee subject of program7086.10payment7086.11Repeal of articleRegulations for assessment of civilpenalties; Factors; Maximum amount;7099.2Letter of admonishment7099.9Letter of admonishment7110Disregard or violation of statutes7110Disregard or violation of statutesPublic access to complaints againstlicensees; Disclaimer; Limitations of7124.6disclosure7125Reports to registrar; Exemptions7137Fee schedule“Home improvement”; “Home7151improvement goods or services”7152“Home improvement salesperson”7156Misdemeanors; Grounds for disciplineContract amount; Finance charges;Downpayment; Violations; Restitution7159.5and punishment.Contents of contract; Representations7162as to goods and materialsDevelopment and availability of “solar7169energy system disclosure documentComplaints regarding solar energysystems companies and solar7170contractors7197Unfair practices7590.1DefinitionsActing as controlling person for a11345.2registrant; Reporting specified actsPreviousType 431648Next Page
xxivCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKCivil CodeSection AffectedForm of home solicitation contract or1689.7offer; Notice of cancellation1770Unlawful acts and practicesException for professional engineer or2782.6geologist; “Hazardous materials”Type d173804ChapterNumberPageGovernment CodeSection AffectedPenalties for violation; Enforcement;Annual report of statewide4216.6information regarding
This book is an official publication of the State of California. It may not be reproduced in whole or in part without the express permission of the California Contractors State License Board. The California Contractors License Law & Reference Book (2022 Edition) is available from
