Califor nia Contractors Li cense Law & Referenc e Book

1 CaliforniaContractors License Law & Reference BookContractors State License BoardState of CaliforniaEdmund G. Brown, Jr., Governor2017 EditionWith Rules and RegulationsMatthew Bender & Company, Offices701 E. Water StreetCharlottesville, VA Number 2970023 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 California Contractors License Law & Reference Book (2017 Edition) is available from Matthew Bender & Company, Inc. Copies may be purchased by calling 1-800-223-1940; by writing to Matthew Bender & Company, Attn. Inbound Sales, 9443 Springboro Pike, Miamisburg, OH 45342; or through the website. The price is $ , plus $ 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.

2 All orders are shipped by carrier and cannot be delivered to a post office California Contractors License Law & Reference Book is not sold at any office of the Contractors State License Board. Copies may be available from specialty book-stores check your local telephone directory.(Pub. 29700)ISBN: 978-1-5221-2760-4 2016 California Contractors State License Board 2016 Matthew Bender & Company, Inc., a member of the LexisNexis rights , the knowledge burst logo, and Michie are trademarks of Reed Elsevier Properties Inc., used under license. Matthew Bender is a registered trademark of Matthew Bender Properties Inc. The California regulations appearing in this publication have been extracted from Barclays Official California code of Regulations, copyright 2016, State of material may not be commercially reproduced or sold in printed or electronic form without written permission of Thomson/West, and is subject to the following disclaimer:THOMSON/WEST MAKES NO WARRANTY OR REPRESENTATION WHATSO-EVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE INFORMA-TION CONTAINED IN THIS PUBLICATION; ANDTHOMSON/WEST ASSUMES NO LIABILITY WHATSOEVER WITH RESPECT TO ANY USE OF THIS PUBLICATION OR ANY PORTION THEREOF OR WITH RE-SPECT TO ANY DAMAGES WHICH MAY RESULT FROM SUCH STATE LICENSE BOARDOFFICERS & MEMBERSA gustin Beltran, Chair, Public Member Kevin J.

3 Albanese, Vice Chair, contractor MemberMarlo Richardson, Secretary, 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 A. Layton, Public MemberFrank Schetter, contractor MemberPaul Schifino, contractor Member Johnny Simpson, Public MemberNancy Springer, Building OfficialCindi Christenson, Registrar of ContractorsCALIFORNIA Contractors LICENSE LAW & REFERENCE BOOK v ABOUT THIS BOOK The California Contractors License Law & Reference Book begins with several narrative chapters that describe required licensing and legal processes affecting Contractors . California contracting laws, rules, and regulations are detailed in the later chapters; laws and regulations are those in effect on January 1, 2017, unless otherwise noted. _____ DEDICATION The Contractors State License Board dedicates this edition to the 290,000 licensed Contractors who abide by California contracting laws and guidelines set forth in this publication, and whose hard work and professionalism help fuel our state economy.

4 CALIFORNIA Contractors LICENSE LAW & REFERENCE BOOK vii SUMMARY OF MAJOR CHANGES TO contractor LAW EFFECTIVE JANUARY 1, 2017 unless indicated otherwise AB 326 (Frazier) Adds Section to the Labor code , relating to public works This bill requires that funds held as collateral by the Department of Industrial Relations pending a prevailing wage proceeding be released back to the Contractors who deposited them within 30 days of the conclusion of the proceeding. (Chapter 345, Statutes of 2016) AB 1793 (Holden) Amends Section 7031 of the Business and Professions code , relating to substantial compliance This bill revises the criteria for the court to consider when determining if a contractor substantially complied with licensing law. It replaces the requirement that a contractor did not know or reasonably should not have known that he or she was not duly licensed with the requirement that the contractor acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of that failure.

5 (Chapter 244, Statutes of 2016) viii CALIFORNIA Contractors LICENSE LAW & REFERENCE BOOK AB 1926 (Cooper) Amends Section of the Labor code , relating to public works This bill requires that when Contractors request an apprentice to perform work on a public works project and require that person to fill out an application, or undergo testing, training, an examination, or other pre-employment process as a condition of employment, they pay him or her for time spent on the required activity at the prevailing wage rate for apprentices. (Chapter 746, Statutes of 2016) AB 2486 (Baker) Adds Section 7018 to the Business and Professions code , relating to Contractors This bill requires the Contractors State License Board to add a feature to its online license lookup feature to allow for a search by either ZIP code or geographic location. (Chapter 270, Statutes of 2016) AB 2859 (Low) Adds Section 464 to the Business and Professions code , relating to professions and vocations This bill authorizes boards within the Department of Consumer Affairs to create a retired license category.

6 (Chapter 473, Statutes of 2016) SB 66 (Leyva) Amends Section 30 of the Business and Professions code , relating to career technical education This bill requires the Department of Consumer Affairs, upon request from the Chancellor s Office of the California Community Colleges, to collect identifying CALIFORNIA Contractors LICENSE LAW & REFERENCE BOOK ix information on all licensees in order to measure outcomes of career technical training programs. (Chapter 770, Statutes of 2016) SB 465 (Hill) Adds Sections 7021 and to the Business and Professions code , relating to building construction* This bill (1) requires the Division of Occupational Safety and Health, after consultation with the Contractors State License Board (CSLB), to forward to CSLB copies of any citations or other actions involving a serious illness or injury taken by the division against a contractor ; (2) requires a licensee to report to CSLB the occurrence of any conviction of any felony or crime; and (3) requires CSLB to conduct a study to determine if its public protection mission would be enhanced by requiring licensees to report settlement information to CSLB.

7 (Chapter 372, Statutes of 2016) * The required report shall be completed by January 1, 2018 SB 661 (Hill) Amends Sections 4216, , , , , , and , and adds Sections , , , , , , , , , , , , and of the Government code , relating to excavations This bill enacts the Dig Safe Act of 2016 and makes several changes to existing requirements for excavation procedures. It also establishes the California Underground Facilities Safe Excavation Advisory Board within the Office of the State Fire Marshall to investigate violations of the state s excavation and subsurface x CALIFORNIA Contractors LICENSE LAW & REFERENCE BOOK installation laws, coordinate education and outreach, and develop standards. (Chapter 809, Statutes of 2016) SB 954 (Hertzberg) Amends Section of the Labor code , relating to prevailing wage This bill clarifies which employer payments may be included as per diem wages to fulfill an employer's obligation to pay prevailing wages on public works projects.

8 (Chapter 231, Statutes of 2016) SB 1039 (Hill) Amends Sections 7137 and of the Business and Professions code , relating to contractor fees* This bill, effective July 1, 2018, raises by 15 percent most fees the Contractors State License Board is authorized to charge applicants and licensees. *This bill amends numerous other sections of law, unrelated to the Contractors State License Board SB 1209 (Morrell) Amends Section of the Business and Professions code , relating to Contractors This bill provides that citations issued against a licensed contractor follow the contractor if he or she is issued another license, and authorizes the disclosure of these citations within existing disclosure timeframes. (Chapter 152, Statutes of 2016) CALIFORNIA Contractors LICENSE LAW & REFERENCE BOOK xi SB 1479 (Business, Professions and Economic Development Committee) Amends Sections 7074 and of the Business and Professions code , relating to Contractors * This bill eliminates two provisions of law related to test scheduling that could render an application for licensure void.

9 (Chapter 634, Statutes of 2016) *This bill amends other sections of law, unrelated to the Contractors State License Board CALIFORNIA Contractors LICENSE LAW & REFERENCE BOOK xiii SECTIONS AFFECTED BY 2016 LEGISLATION Business & Professions code Section Affected Type of Change Chapter Number Page Spouse to include registered domestic partner Added 50 163 27 Information to be provided on Internet; Entities in Department of Consumer Affairs required to comply Amended 32, 489 165 30 Provision of federal employer identification number or social security number by licensee Amended 770 168 101 Composition of department Amended 32 178 Military service; Posting of information on Web site about application of military experience and training towards licensure Amended 174 188 144 Requirement of fingerprints for criminal record checks; Applicability Amended 32 209 205 Professions and Vocations Fund (Third of three) Amended 800 222 325 Actionable complaints Amended 593 230 464 Retired category of licensure Added 473 235 7018 contractor license search by ZIP code or geographic location Added 270 286 7021 Interagency agreement for information to protect the public Added 372 287 7031 Allegation and proof of license in action on contract; Recovery of compensation paid to unlicensed contractor ; Substantial compliance; Exceptions Amended 244 307 7044 Property owner making own improvements Amended 714 312 Report to registrar of convictions; Study of judgments, arbitration awards, settlements for construction defects in rental residential units; Contents of study Added 372 347 7074 When application becomes void; Disposition of application.

10 Fee for reapplication Amended 634 351 Public access to complaints against licensees; Disclaimer; Limitations of disclosure Amended 152 393 7137 Fee schedule (First of two; Inoperative July 1, 2017; Repealed January 1, 2018) Amended 799 399 xiv CALIFORNIA Contractors LICENSE LAW & REFERENCE BOOK Business & Professions code Section Affected Type of Change Chapter Number Page 7137 Fee schedule (Second of two; Operative July 1, 2017) Added 799 401 Renewal of registration; Delinquent renewal penalty; Abandonment of application; Petition (First of two; Inoperative July 1, 2017; Repealed January 1, 2018) Amended 799 415 Renewal of registration; Delinquent renewal penalty; Abandonment of application; Petition (Second of two; Operative July 1, 2017) Added 799 416 Contract amount; Finance charges; Down payment; Violations; Restitution and punishment Amended 634 432 Civil code Section Affected Type of Change Chapter Number Page 1770 Unlawful acts and practices Amended 86 630 Government code Section Affected Type of Change Chapter Number Page 4216 Definitions Amended 809 722 Participation in center by operators of subsurface installations; Fees Amended 809 725 Delineation of area; Required notification and response; Ticket prerequisites, period of validity, and expiration; Records; Special access sites Amended 809 725 Location and field marking of subsurface installations; Records; Relocation and remarking; Operator response; Notification of failure to comply Amended 809 727 Manual location of subsurface installations in conflict with excavation; Use of vacuum excavation devices; Use of power operated or boring equipment; Duty of care; Notification of damage.