Major Changes to the California Contractors Law

Effective January 1, 2005

These are major changes to the California Laws and do not reflect all current amendments.

Business& Professions Code Changes

7028.1 Clarifies that all contractors, whether licensed or not, are subject to discipline for asbestos-related violations.

7048 Eliminates the legal requirement that unlicensed contractors provide homeowners a written 'Unlicensed Disclosure' notice for works of improvement under $500, making it easier for CSLB to enforce unlicensed activity.

7068 Eliminates a prior law that prevented anyone convicted of contracting without a license from applying for a license for one year from the date of the conviction.

7069.1 Gives CSLB the authority to request proof of the disposition of the arrest when a licensee or registrant has been arrested, and requires the licensee or registrant to provide this proof within 90 days of the disposition or be subject to disciplinary action for failing to comply.

7085 Expands the type ct cases eligible for arbitration program to include all works of improvement, not just home improvements as defined under Section 7l51.

7090.1 Reduces the reinstatement period for suspended licensees who have failed to comply with the terms of a citation from one year to 90 days. After the 90 - day suspension period, the license will he revoked by operation of law.

7137 Eliminates the delinquent fee grace period for licensees who fail to renew their license timely. All contractors whose license expires on or after January 31, 2005 will be subject to the delinquent fee upon expiration of the license.

Government Code Change

4216 Anyone planning to excavate in California is required to contact the appropriate regional notification center at least two working days before beginning to excavate. Amendments to Section 4216 include but are not limited to:

• ' Requires utilities only to mark their own facilities;

• ' Changes the list of persons exempt from the notification requirement;

• ' Clarifies the steps for compliance;

• ' Requires each contractor to have his or her own individual USA ticket; and

• ' Extends the validity of identification (ticket) numbers issued by the regional center to 2 - 4 days

Penal Code Change

802 Expands the statute of limitations for specified violations of the Contractors License Law, including the Home Improvement provisions.

Law and Business Update News

We have received word that the CSLB has released a new Law and Business exam! The subject matter is still the same (the "content" section on the current CSLB study guide is virtually identical), but students are reporting that the questions are much longer and more complicated. Students are still passing, but those with language problems are having difficulty. Updating this course will, of course, be our top priority. The CONTENT of our practice questions and manuals cover the current exam, but the specific WORDING of the questions will be different, Please SEND US FEEDBACK! We've included a new "Course Scorecard in your kit" for this exam, please fill out so that we can begin the necessary revisions. Remember, the more specific the feedback, the more help we can give! In the meantime, make sure you UNDERSTAND the material you are studying. Memorizing questions is not enough! All the law test answer sheets include explanations, so be sure you make the time to study those as well. Again, the content of the exam is relatively unchanged, and there have been very few major changes in the law, so students who genuinely study the material should be fine. We'll keep you posted on all course updates. 

The use of  the term "Construction" in a Business Name

Current Procedure:

The word "construction" has been acceptable in the business name for any classification under certain conditions. The following is an example of the operating procedure that was established by a former Licensing Deputy, and has been in effect since approximately March, 2, 1981:
Example: Classification is C-10 Electrical
Acceptable: Smith Electrical Construction Smith Construction
Unacceptable: Smith Electrical and Construction (not acceptable because it indicates that they can do electrical and general building work)

New Procedure:

Legal counsel recently provided us with an opinion on the issue. Based on this opinion, effective immediately use of the word "construction" in a business name, without identifying the specific classification held by the licensee, is not acceptable. Using the above example, "Smith Electrical Construction" is the only business name that is acceptable under the new procedure.

Contractors holding the General Engineering (A) or General Building (B) license classifications my use the term "construction" in the company business name without referring to the specific license classification(s), held.

Example: Classification is the General Engineering (A)
Acceptable: Smith General Engineering Construction Co. or Smith Construction Co.
Example: Classification is the General Building (B)
Acceptable: Smith Building Construction Co. or Smith Construction Co.

If you have any questions, please contact Marianne Henkel at (916) 255?3964 or e-mail at  mhenkei@dca.cslb.ca.gov.