CaliforniaContractors License Law

& Reference Book

Contractors State License BoardState of California

Edmund G. Brown, Jr., Governor

2017 EditionWith Rules and Regulations

Matthew Bender & Company, Inc.Editorial Offices701 E. Water StreetCharlottesville, VA 22902800-446-3410www.lexisnexis.com

Product 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 Board.

The 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 www.lexisnexis.com/bookstore website. The price is $32.00, 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 recipients name. All orders are shipped by carrier and cannot be delivered to a post office box.

The 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-storescheck 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 Group.All rights reserved.LexisNexis, 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 California.

This 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; AND

THOMSON/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 USE.

CONTRACTORS STATE LICENSE BOARDOFFICERS & MEMBERS

Agustin Beltran, Chair, Public Member

Kevin J. Albanese, Vice Chair, Contractor Member

Marlo Richardson, Secretary, Public Member

Linda Clifford, Contractor Member

David De La Torre, Public Member

David Dias, Labor Member

Susan Granzella, Public Member

Joan Hancock, Contractor Member

Pastor Herrera Jr., Public Member

Ed Lang, Public Member

Michael A. Layton, Public Member

Frank Schetter, Contractor Member

Paul Schifino, Contractor Member

Johnny Simpson, Public Member

Nancy Springer, Building Official

Cindi Christenson, Registrar of Contractors

CALIFORNIA 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.

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 1742.1 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. (Chapter 244, Statutes of 2016)

viii CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOK

AB 1926 (Cooper) Amends Section 1777.5 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. (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 Chancellors 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 7071.18 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. (Chapter 372, Statutes of 2016) * The required report shall be completed by January 1, 2018

SB 661 (Hill) Amends Sections 4216, 4216.1, 4216.2, 4216.3, 4216.4, 4216.6, 4216.7 and 4216.9, and adds Sections 4216.10, 4216.12, 4216.13, 4216.14, 4216.15, 4216.16, 4216.17,

4216.18, 4216.19, 4216.21, 4216.22, 4216.23, and 4216.24 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 states 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 1773.1 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. (Chapter 231, Statutes of 2016)

SB 1039 (Hill) Amends Sections 7137 and 7153.3 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 7124.6 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 7159.5 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. (Chapter 634, Statutes of 2016) *This bill amend