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CaliforniaContractors License Law& Reference Book2018 EditionWith Rules and RegulationsContractors State License BoardState of CaliforniaEdmund G. Brown, Jr., 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 (2018 Edition) is available fromMatthew Bender & Company, Inc. Copies may be purchased by calling 1-800-2231940; by writing to Matthew Bender & Company, Attn. Inbound Sales, 9443 SpringboroPike, Miamisburg, OH 45342; or through the www.lexisnexis.com/bookstore website. Theprice is 33.50, plus 10.44 Shipping & Handling, and is available as follows:Mail order:Send a check or money order, payable to Matthew Bender & Company, Inc.,and include a street address and the recipient’s name. All orders are shipped bycarrier and cannot be delivered to a post office box.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: 978-1-5221-4970-5 2018 California Contractors State License Board 2018 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 ofMatthew Bender Properties Inc.The California regulations appearing in this publication have been extracted fromBarclays Official California Code of Regulations, copyright 2018, 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 ORFITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE INFORMATION CONTAINED IN THIS PUBLICATION; ANDTHOMSON/WEST ASSUMES NO LIABILITY WHATSOEVER WITH RESPECT TOANY USE OF THIS PUBLICATION OR ANY PORTION THEREOF OR WITH RESPECT TO ANY DAMAGES WHICH MAY RESULT FROM SUCH USE.Matthew Bender & Company, Inc.Editorial Offices701 E. Water StreetCharlottesville, VA 22902800-446-3410www.lexisnexis.comProduct Number 2970024(Pub. 29700)PreviousNext Page

CONTRACTORS STATE LICENSE BOARDOFFICERS & MEMBERSKevin J. Albanese, Chair, Contractor MemberMarlo Richardson, Vice Chair, Public MemberJohnny Simpson, Secretary, Public MemberAgustin Beltran, Public MemberLinda Clifford, Contractor MemberDavid De La Torre, Public MemberDavid Dias, Labor MemberSusan Granzella, Public MemberJoan Hancock, Contractor MemberPastor Herrera Jr., Public MemberEd Lang, Public MemberMichael Layton, Public MemberFrank Schetter, Contractor MemberNancy Springer, Building OfficialDavid R. Fogt, Registrar of ContractorsPreviousNext Page

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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKvABOUT 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, 2018, unless otherwise noted.PreviousNext Page

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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKviiSUMMARY OF MAJOR CHANGES TOCONTRACTOR LAWEFFECTIVE JANUARY 1, 2018unless indicated otherwiseAB 92 (Bonta)Amends Sections 7201 and 10261 of the Public ContractCode, relating to public contractsThis bill extends from January 1, 2018 to January 1,2023, the sunset date on existing statutes governing theamount of money a public agency can retain from acontractor or subcontractor prior to completion of a publicworks project. The existing statutes prohibit a publicagency from retaining more than 5 percent of a contractprice until final completion of a project, with certainexceptions.(Chapter 37, Statutes of 2017)AB 1070 (Gonzalez Fletcher)Adds Sections 7169 and 7170 to the Business andProfessions Code, and Section 2854.6 to the PublicUtilities CodeThis bill requires the Contractors State License Board(CSLB), in collaboration with the Public UtilitiesCommission (PUC), develop and make available on itswebsite a "solar energy system disclosure document" forsolar energy customers (by July 1, 2018), compile anannual report documenting consumer complaints relatingto solar contractors (by July 1, 2019), and developPreviousNext Page

viiiCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKstandardized inputs and assumptions to be used in thecalculation and presentation of electric utility bill savingsto a consumer (by July 1, 2019).(Chapter 662, Statutes of 2017)AB 1278 (Low)Amends Section 7071.17 of the Business and ProfessionsCode, relating to contractorsThis bill clarifies that, if a judgment is entered against alicensed contractor, the licensee's qualifying individual orpersonnel of record at the time the activities occurred onwhich the judgment is based, rather than only when thejudgment is entered, is prohibited from serving onanother license as a qualifying individual or otherpersonnel of record, and makes other clarifying changes.(Chapter 506, Statutes of 2017)AB 1284 (Dababneh)Amends, repeals, and adds Section 10133.1 of theBusiness and Professions Code, and amends, repeals, oradds multiple sections of the Finance Code.*This bill establishes requirements for Property AssessedClean Energy (PACE) program administrators that mustbe met before PACE assessment contracts may be fundedand recorded by a public agency, renames the CaliforniaFinance Lenders Law as the California Financing Law(CFL), requires program administrators to be licensedunder the CFL, and establishes a regulatory scheme forthe oversight of PACE solicitors and PACE solicitoragents.*This bill was declared urgent and therefore takes effectimmediately, though certain prohibitions affectingprogram administrator approval of assessment contractsfor funding and recording by a public agency commencePreviousNext Page

CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKixApril 1, 2018, and the requirement that a programadministrator administering a PACE program on behalfof a public agency be licensed by the commissioner underthe California Financing Law commences January 1,2019.(Chapter 475, Statutes of 2017)AB 1357 (Chu)Amends Section 7197 of the Business and ProfessionsCode and Section 1102.4 of the Civil Code, relating tohome inspectorsThis bill exempts a licensed roofing contractor, if certainconditions are met, from the provisions relating to a homeinspector that prohibit repairs to a structure on which theinspector, or the inspector’s company, has prepared ahome inspection report in the past 12 months.(Chapter 508, Statutes of 2017)SB 242 (Skinner)Adds Chapter 29.1 (commencing with Section 5900) toPart 3 of Division 7 of the Streets and Highways Code,relating to the Property Assessed Clean Energy programThis bill establishes requirements for third-party programadministrators of Property Assessed Clean Energy(PACE) programs. It provides that it is unlawful tocommence work under a home improvement contract andthat the contract is unenforceable if the property ownerentered into the home improvement contract based on thereasonable belief that the work would be covered by thePACE program and the property owner applies for,accepts, and cancels PACE financing within the three-dayright to cancel period established in existing law.(Chapter 484, Statutes of 2017)PreviousNext Page

xCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKSB 486 (Monning)Amends Sections 7099.2 and 7124.6 of the Business andProfessions Code, relating to professions and vocationsThis bill authorizes the Contractors State License Boardto issue letters of admonishment to an applicant, licensee,or registrant rather than issuing a citation, and it setsspecific conditions for issuing letters. The bill wouldrequire the letter to inform the applicant, licensee, orregistrant that he or she may submit a written request foran office conference to contest the letter of admonishment,subject to specified procedures, including a process toappeal a decision, or comply with the letter, as provided.(Chapter 308, Statutes of 2017)PreviousNext Page

CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKxiSECTIONS AFFECTED BY 2017 LEGISLATIONBusiness & Professions CodeSection Affected27Information to be provided on Internet;Entities in Department of ConsumerAffairs required to comply30Provision of federal employer identificationnumber or social security number bylicensee (First of two; Repealed July 1, 2018)30Provision of federal employer identificationnumber or social security number bylicensee (Second of two; Operative July 1,2018)101Composition of department (First of two;Repealed July 1, 2018)101Composition of department (Second of two;Operative July 1, 2018)144Requirement of fingerprints for criminalrecord checks; Applicability156Contractual authority205Professions and Vocations Fund (First oftwo; Operative until July 2, 2018)205Professions and Vocations Fund (Second oftwo; Operative July 1, 2018)303Division of Consumer Services; Chief[Repealed]7071.17Bond 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; Disciplinaryaction7075.1Nontransferability of license7099.2Regulations for assessment of civilpenalties; Factors; Maximum amount;Letter of admonishment7124.6Public access to complaints againstlicensees; Disclaimer; Limitations ofdisclosurePreviousType , ed308396Next Page

xiiCALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOKBusiness & Professions CodeSection Affected7145.5Failure to resolve outstanding liabilities asgrounds for refusal to renew license7169Development and availability of “solarenergy system disclosure document”7170Complaints regarding solar energy systemscompanies and solar contractors7195Definitions7197Unfair practices7590.1Definitions (First of two; Repealed January1, 2019)7590.1Definitions (Second of two; OperativeJanuary 1, 2019)10133.1Inapplicability of certain provisions todesignated persons and organizations(First of two; Repealed January 1, 2019)10133.1Inapplicability of certain provisions todesignated persons and organizations(Second of two; Operative January 1, 2019)Civil CodeSection Affected1102.4Liability for errors or omissions2782.8Contracts for design professional services;Limitations on indemnity; Applicability8119Delivery of notices and claims for work oncommon area within common interestdevelopmentGovernment CodeSection Affected4216Definitions4216.2Delineation of area; Required notificationand response; Ticket prerequisites, periodof validity, and expiration; Records;Special access sites4216.6Penalties for violation; Enforcement;Annual report of statewide informationregarding incident events4216.7Liability of excavator; Liability of operatorof subsurface installation; Savingsprovisions (First of two; Inoperative July 1,2020; Repealed January 1, 2021)PreviousType e dded44678Type mended26741Amended26743Next Page