California's Fire Disasters

After the unprecedented devastation to California from the fires in Northern and Southern California, the State is left with the prospect of rebuilding. Over 10,000 structures were destroyed.

This has left a huge void between how many contractors there are in the state and how much work that needs to be done. Undoubtedly, contractors from other states will move in to fill this void but new contractors right here will be needed.

If you are considering getting a contractors license, I urge you to do it now. The demand will be overwhelming.

Contractors State License Board Appoints New Registrar

Our congratulations to David Fogt for being appointed the new Registrar of Contractors. He succeeds Cindi Christensen effective May 2, 2017. He started working at the Board in February of 1990 and has held various positions. He brings a wealth of knowledge to the position. The Registrar heads the Contractors State License Board. He will oversee over 400 employees and a sixty million dollar budget.

Best of luck at your new position!

New Laws Affecting Contractors in 2017

Assembly Bill (AB) 1793 modifies the criteria the courts use to determine if a contractor substantially complied with licensing law under Business and Professions Code (BPC) section 7031. This allows a client to not pay a contractor and to demand the return of compensation paid for work completed if the contractor was unlicensed at any time during the course of work. The new legislation provides the court a modified set of criteria to use when determining if a contractor “substantially complied” with licensure requirements and acted promptly and in good faith to remedy the lapse in licensure once known.

Senate Bill (SB) 1209 provides for enhanced complaint disclosure of legal actions taken against licensees. Under the provisions of this legislation, citations issued against a licensed contractor follow that contractor if he or she is issued another license and allows for the public disclosure of these citations.

AB 2486 requires that by January 1, 2019, CLSB create a system that allows consumers to search CSLB’s website for a licensed contractor either by zip code or geographic area, which should make it easier for consumers to identify and hire properly licensed contractors.

In an effort to establish further safety measures around underground excavation, SB 661 enacts the Dig Safe Act of 2016, and makes several changes to existing requirements for excavation procedures. These include requiring that excavators delineate an area to be excavated prior to notifying an appropriate regional notification center and establishing the California Underground Facilities Safe Excavation Advisory Board within the Office of the State Fire Marshall.

AB 2286 authorizes CSLB to raise its various fees, resulting in what will be the first fee increase since 2011, and only the second fee increase since 1993. The 10 percent fee increase will ensure that CSLB has enough funds to operate in the coming years. Increases that take effect July 1, 2017 include: The application fee for an original license in a single classification will increase from $300 to $330; the renewal fee for an active license will increase from $360 to $400; and the registration and renewal fee for a Home Improvement Salesperson will increase from $75 to $83.

Military Veterans Get Preferred Application Processing for a Contractor's License

On October 13, 2016 in a show of support for our veterans, the Contractors State License Board announced that the applications received by veterans are being processed by specially trained staff for faster test date issuance. Include your DD-214 and I would suggest stapling a piece of paper on the application stating "Military Applicant".

Other documents you can submit but are not required:

Copy of ERB (Enlisted Record Brief)

Copy of ORB (Officer Record Brief)

Copy of DD2586 (Verification of Military Experience and Training form)

Copy of Joint Service Transcripts (military transcripts)

Sealed, official educational transcripts for formal civilian education

If you don't have a copy of your DD-214 (or any other document listed above) you can request one at www.archives.gov/veterans/military-service-records

There is also expedited application service for spouses/domestic partners under certain circumstances.

For more information you can visit the official website of the Contractors State License Board at:

http://www.cslb.ca.gov/Contractors/Applicants/Military/

The CSLB Streamlines The Application Process

The California State Contractors License Board has, in the last couple of months, streamlined the application process. They are now requiring less paperwork for applicants resulting in faster test dates for a large percentage of applicants.

If you were thinking about becoming a contractor, now is a great time to apply for your contractor's license.

New C-1 Classification for Handymen and Light Remodels

The Contractors State License Board is considering adding a classification of license that addresses the gap between light general work, such as handyman and light remodels, and more extensive general building such as additions and new construction. It is still in meetings and it is unsure at this point whether it will be approved. The idea is that a person who does general building work that does not include structural (load bearing) framing and is less than $15,000.00 (the new amount of a contractor's bond) will be able to legally contract. The problem currently is that a person who does construction that doesn't involve framing can't qualify for a B-General Building license but is required to be licensed to do work that is $500.00 or more. More on this issue soon.

2016 California Contractors License Bond Increase

The Governor has recently signed Senate Bill 467 increasing the bond amount for licensed contractors from $12,500.00 to $15,000.00. This will not affect the Bonds of Qualifying Individuals (bonds for RME's and RMO's who own less than 10% of the business). Although the bill itself does not set an exact time, it is my understanding that the Contractors State License Board intends to make it effective on January 1, 2016. If you are a licensed contractor, this probably means that you will be getting a supplemental bill for the increase. Since it is a 20% increase, you can expect new and renewal bonds to cost about 20% more. If you are already bonded, you will only have to pay a pro-rata increase based on the amount of time that you have left on your current bond. For example, if you purchased a 2-year bond one year ago, you will be billed approximately 10% of your original premium, or half the 20% increase.