Tag Archives: California State License Board

CSLB Bulletin: CSLB and Partners Sting 15 for Contracting Without Licenses

CSLB and Partners Sting 15 for Contracting Without Licenses

 SACRAMENTO — The Contractors State License Board (CSLB) teamed up with the Orange County District Attorney’s Office and La Habra Police Department for a two-day sting operation in La Habra where 15 individuals received notices to appear in court for contracting without a license and other, related charges.

On June 29-30, 2011, members of CSLB’s Statewide Investigative Fraud Team (SWIFT) posed as owners of a home (June 29) and a business (June 30) and sought bids from suspected unlicensed operators for painting, concrete, drywall, cabinet installation, and flooring. Those who bid more than the legal threshold of $500 for labor and materials received notices to appear in court for violating California contracting laws.

Some of the suspects will also face charges for failure to carry workers’ compensation insurance, soliciting an excessive down payment, and illegal advertising. State law requires contractors to have workers’ compensation coverage for all employees. Contractors are also prohibited from soliciting a down payment larger than $1,000 or 10 percent of the project, whichever is less. There is an exception for about two dozen contractors who purchase special bonds for consumer protection and may ask for larger down payments. The law also requires contractors to put their license number in all advertisements. Those who are not state-licensed and work on projects valued at less than $500 must state that they are not licensed in their ads.

The first suspect caught contracting without a license was on parole for drug crimes. During the second day of the operation a licensed contractor arrived at the commercial building. He thanked CSLB for conducting the sting and for other enforcement efforts aimed at unlicensed, uninsured individuals who he says are cutting into his business.

“CSLB routinely conducts operations like this one in La Habra as part of its mission to protect the state’s consumers and the integrity of the construction industry,” said CSLB Registrar Steve Sands. “Many of the complaints received by the board after a project has gone awry could have been avoided had homeowners taken a few minutes to check the license first, and followed CSLB’s Ten Tips available in English and several other languages.”

Contractors State License Services hosts Open House statewide in recognition of Earth Day and Green Construction

FOR IMMEDIATE RELEASE

http://www.contractorslicensingschools.com/

 Contractors State License Services hosts Open House statewide in recognition of Earth Day and Green Construction.

 Contractors State License Services (CSLS) will be hosting an open house at all school locations throughout California on April 29th, 2011 in recognition of Earth Day and Green Construction.  A variety of speakers and vendors offering construction related information; green products and construction business services are scheduled at 20 plus locations throughout the state. CSLS and strategic partners are working together to educate Contractors and Construction workers on available services and products that can help them take advantage of value-added green offerings that they can integrate into their construction business. “Green construction starts with getting your contractor’s license so assisting students and graduates to get connected in this growing part of the industry is a wonderful opportunity for Contractors”, says David Mizener, CSLS CEO.

At many of the Contractors State License Services school locations Green industry experts, speakers and vendors will participate including American Home Inspection Training (AHIT), Home Depot, HD Supply, Dunn-Edwards Paints, Global HVAC/Ruud, Lowes, Harbor Freight Tools, Jem Industrial Coatings, CBIA Insurance Services, Ewaste Recycler, Contractor Manager, Deep Blue Pool Service, Corp 911 and Solar Seminars.

For this event topics of discussion will cover Zero VOC Paint products, Green insulation, Energy Audit Training, Solar Installation, Sustainable building, Energy Tax Rebates for consumers, Energy efficient appliances, Tankless water heaters, Greenscaping including native landscaping, and much more.  CSLS will also present information on the recently required EPA-Renovation, Repair and Painting certification. Promotions, giveaways and special offers will also be part of this statewide event. Schedules and presenters vary by location. For details on individual school events interested contractors can contact the corporate offices at Contractor State License Services 800-331-4691.

  About CSLS (http://contractorslicensingschools.com/) @contractorslic  #Contractors#License

Contractors State License Services (CSLS) is the largest school in California devoted to the Construction professional. For over 25 years, CSLS has helped its students pass the exam to become licensed contractors in the State of California, licensing more students than any other school. In fact, 1 in 3 applicants to the California State Licensing Board (CSLB) have used CSLS to successfully pass the exam. Contractors State License Services offers licensing classes for all types of contractor licenses, including: General Engineering Contractor | General Building Contractor | Specialty Contractor | Insulation and Acoustical Contractor | Framing and Rough Carpentry Contractor | Cabinet, Millwork and Finish Carpentry Contractor | Concrete Contractor | Drywall Contractor | Electrical Contractor | Elevator Contractor | Landscaping Contractor | Warm-Air Heating | Ventilating and Air-Conditioning Contractor, and many others. Contractors State License Services also provides CSLS Contractors with Business Development Services to assist in every aspect of sustaining a strong Construction Business. These include Bonds, Corporation Services, DBA’s, Application Processing, Fingerprint Services, Home Inspection training courses, BPI Energy Audit training courses, NAPCEP Solar PV Photovoltaic Installer training courses, Locksmithing training courses, and Insurance Services.

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CSLB Press Release: Repeat Offender Caught in CSLB Tehama County Undercover Sting

Revoked licensee could face 90 days in jail after continuing to disregard law

SACRAMENTO – Tuesday, February 8, 2011, was not a good day for Randy Wade Dueck. The 50-year-old from Red Bluff was again caught contracting without a license and arrested during an undercover operation conducted by the Contractors State License Board’s (CSLB) Statewide Investigative Fraud Team (SWIFT), this time in downtown Red Bluff.  The sting was conducted in cooperation with the Tehama County District Attorney’s Office and California Department of Industrial Relations.

            SWIFT investigators posed as owners of a commercial property near the Sacramento River, seeking painting, flooring, and tile work. A total of eight unlicensed operators who bid more than $500 for labor and materials were arrested and received a Notice to Appear (NTA) in Tehama County Superior Court to face misdemeanor charges of contracting without a license (Business & Professions Code 7028). Six will face an additional charge for illegal advertising (Business & Professions Code 7027.1). A ninth person was not arrested, but did receive a $3,000 citation from the Department of Industrial Relations for employing two people without having workers’ compensation insurance (Labor Code 3722).

“We cannot stress enough how important it is to make sure the people you hire to work in and around your home are properly license by the state of California,” said CSLB Registrar Steve Sands.  “It’s a level of protection that can keep you from becoming a victim of fraud.”

Dueck is no stranger to CSLB investigators.  His painting license (#589514) was revoked in 1995 after failing to comply with terms of two administrative citations and failing to pay back claims against his license bond. Dueck was cited by CSLB in 2000 after a consumer complaint and also failed to pay the $1,500 citation.  Last April, Dueck was arrested in an undercover sting and plead guilty to a charge of contracting without a license.  He was on probation at the time of his arrest this week and even told the undercover investigator before he was arrested that he was nervous about being caught again.

CSLB will ask the Tehama County District Attorney’s Office to charge Dueck for violating Business & Professions Code 7028c, which raises the penalties for a second offense of contracting without a license to a $5,000 fine and 90 days in jail.

California law requires all home improvement jobs valued at more than $500 to be undertaken by a licensed contractor. Contractors also must place their state license number in all advertisements. Unlicensed individuals may advertise and accept jobs valued at less than $500, but their ads must state that they are not a licensed contractor. State law also requires those selling home improvement services for licensed contractors to register with CSLB.

Since 2005, state law has required criminal background checks for anyone applying for a new license or adding a license classification. California law also requires contractors to have workers’ compensation coverage for all of their employees to protect homeowners from liability.  License bond information is available when checking the status of a contractor license.

CSLB urges all California consumers to follow these tips before hiring a home improvement contractor:

  • Verify the contractor’s license online at www.cslb.ca.gov, or via CSLB’s automated phone system at 1-800-321-CSLB (2752).
  • Ask to see a photo identification to verify the contractor’s identity.
  • Don’t pay more than 10% down or $1,000, whichever is less.  There is an exception to this rule for about two dozen contractors who purchase special bonds and are noted on CSLB’s website.
  • Don’t pay in cash, and don’t let the payments get ahead of the work.
  • Get at least three bids and insist on a written contract before your project begins.

           

            The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs.  More information and publications about hiring contractors are available on the CSLB website or by calling 800-321-CSLB (2752).  You can also sign up for CSLB e-mail alerts, and follow us on Twitter and Facebook.  CSLB licenses and regulates California’s more than 300,000 contractors, and is regarded as one of the leading consumer protection agencies in the United States.  In fiscal year 2009-10, CSLB helped recover nearly $42 million in ordered restitution for consumers.

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Important CSLB Bulletin: New Year Brings New Protection for California Homeowners

SACRAMENTO — New California construction laws and regulations passed during the 2009-2010 legislative session take effect January 1, 2011.

A key consumer protection law regarding mechanics liens (a claim on property that could force its foreclosure and sale to satisfy unpaid contractor or supplier debts) becomes effective on January 1, 2011. The result of Contractors State License Board (CSLB)-sponsored Assembly Bill 457 (Monning), the new law, signed in 2009, requires contractors, subcontractors or materials suppliers who intend to file a mechanics lien to serve aNotice of Mechanics Lien on the property owner. In addition to the notice, the person serving the mechanics lien must also provide a proof of service affidavit or the lien will be unenforceable. Mechanics liens are recorded with the county. Many times homeowners are unaware that a lien has even been placed on their property. Awareness of a lien is important because even if a mechanics lien is not used to foreclose on the property, its presence on the title can potentially prevent borrowing against, refinancing or selling the property.

“AB 457 provides vital protection for California property owners, plus, CSLB provides many resources and tips that consumers can easily review before a construction contract is signed to avoid the possibility of a mechanics lien altogether,” said CSLB Registrar Steve Sands

A CSLB-sponsored bill passed this year provides a valuable tool to help combat the states underground economy. Senate Bill 1254 (Leno) will enable CSLB to issue a stop work order to any licensed or unlicensed contractor who fails to carry workers compensation insurance coverage for all of his or her employees. The new law gives CSLB unprecedented authority in allowing the Boards enforcement representatives to more effectively stop unlicensed, uninsured activity, and aid in the states efforts to ensure a level playing field for licensees who follow workers compensation laws. A stop order takes effect immediately and can be appealed. Employees who lose pay due to a work stoppage will be entitled to up to 10 days pay for time lost. Failure to comply with a stop work order will be a misdemeanor, punishable by up to 60 days in jail and/or a fine of up to $10,000.
Following are additional construction-related laws that take effect January 1, 2011, unless otherwise noted:

Other Workers Compensation
SB 313 (DeSaulnier) Labor Code Section 3722 amended
This bill, signed in 2009, increases the potential penalty for failure to have a workers compensation policy from $1,000 to $1,500 for each employee not covered. Fines are administered by the director of the Department of Industrial Relations. (Amended Stats 2009 ch 640 § 1)

AB 2305 (Knight) Business and Professions Code Section 7125 and Insurance Code Section 11665 amended
The bill extends the requirement for C-39 Roofing contractors to carry a workers compensation policy, even if he or she has no employees until 2013. (Amended Stats 2010 ch 423 §1, 2 and 3)

Environmental
AB 1343 (Huffman) Public Resources Code Chapter 5 added to Part 7, Division 30
Effective April 1, 2012, contractor outreach and education will begin regarding recycling of architectural paint. Implementation of this recycling program could include an assessment on the future sale of paint. (Amended Stats 2010 ch 420 § 1 and 2)

AB 2398 (John A. PÃrez) Public Resources Code Section Chapter 20 added to Part 3, Division 30 and Section 42980 repealed
Beginning on July 1, 2011, carpet manufacturers must charge an additional one-half cent sales tax per square yard of product purchased to pay for a carpet recycling program. (Amended Stats 2010 ch 681 § 1 and 2)

Criminal
AB 2372 (Ammiano) Penal Code Section 487 amended
This law changes the threshold from $400 to $950 to charge the crime of grand theft for stealing money, labor, real or personal property. (Amended Stats 2010 ch 693 § 1 and 2)

CSLB/Consumer Protection Boards
SB 294 (Negrete McLeod) Business and Professions Code Sections 7000.5 and 7011 amended
This bill extends CSLBs existence as a consumer protection board from January 1, 2011 to January 1, 2012. (Amended Stats 2010 ch 695 §37 and 38)

SB 392 (Florez) Business and Professions Code Sections 7025, 7028.5, 7029, 7065, 7065.1, 7065.5, 7068, 7068.1, ;7068.2, 7069, 7071, 7071.1, 7071.8, 7071.9, 7071.11, 7071.17, 7072.5, 7075.1, 7076, 7076.2, 7085.6, 7090, 7090.1, 7096, 7121, 7121.1, 7121.5, 7121.6, 7122, 7122.1, 7122.2, 7122.5, 7137, 7138, 7152, 7159 and 7159.10 and 7071.6.5 and 7071.19 added; Corporations Code Section 22037amended
This bill authorizes the issuance of a contractor license to a Limited Liability Corporation (LLC) beginning January 1, 2012. Prior to passage of this law, LLCs were not able to be licensed in California. The LLC would be required to maintain liability insurance of between $1,000,000 and $5,000,000 and post a $100,000 surety bond, in addition to the $12,500 bond already required of all licensees. (Amended Stats 2010 ch 698 §1 through 43)

SB 1491 (Committee on Business, Professions and Economic Development) Business and Professions Code Sections 7028.6, 7028.7, 7028.9 and 7058.5 amended
This bill requires that a citation for acting as a contractor or salesperson without a license or registration be issued within four years, or 18 months of a complaint for the violation, whichever is later. The bill also allows for contractors applying for an original license to complete and return the required open book exam about asbestos electronically. (Amended Stats 2010 ch 415 §17,18 and 19)

AB 1659 (Huber) Government Code Section 9147.7 added
This law abolishes the Joint Committee on Boards, Commissions and Consumer Protection and replaces it with the Joint Sunset Review Committee. CSLBs sunset review process remains unchanged. (Amended Stats 2010 ch 666 § 1)

AB 2130 (Huber) Business and Professions Code Section 22 amended and Section 101.1 and Division 1.2 repealed
This law is a companion bill to AB 1659, replacing the Joint Committee on Boards, Commissions and Consumer Protection and replacing it with the Joint Sunset Review Committee. (Amended Stats 2010 ch 670 § 1 through 3)

AB 2500 (Hagman) Business and Professions Code Section 114 amended and Section114.5 repealed
The bill amends current law allowing people licensed by Department of Consumer Affairs boards and bureaus to reinstate their license without examination or penalty if serving in the California National Guard or United States Military during a period of war. The new law repeals the section defining war and extends the reinstatement provision for licensees who can prove they were serving on active, military duty. Requests must come not more than one year after discharge or the end of active duty. (Amended Stats 2010 ch 389 §1 and 2)

Changes to existing regulations that would increase contractor licensing fees (PDF) received final approval from the Office of Administrative Law, effective December 18, 2010. Fee increases begin on July 1, 2011 for those applying for or changing their contractor license. Renewal fees for licenses that expire on or after July 1, 2011, will also be increased. CSLB fees have remained at their current level since 1993, and the additional revenue will assure CSLB upholds its mandated protection of California consumers and the integrity of the construction industry

Important CSLB Bulletin: Contractors State License Board Encourages Vigilance as Winter Storms Hit State

SACRAMENTO — In the wake of heavy rain, mudslides, flooding and their aftermath, the Contractors State License Board (CSLB) reminds California property owners to stay vigilant when it comes to contracting for clean-up or repairs. Sometimes what appears to be the cheapest solution to remove a fallen tree, fix a downed fence, or patch a leaky roof may not be the wisest choice.

Consumers can use CSLB™s online resources to check the license status of the contractor they plan to hire, and to get tips on home repair and improvement choices. Any construction job valued at $500 or more in labor and materials must be done by a state-licensed contractor. California Business & Professions Code requires all licensees to carry workers compensation insurance coverage for their employees and to purchase a contractor license bond.

Now that Governor Schwarzenegger has declared a State of Emergency in several coastal, Central Valley, and Southern California counties, anyone caught contracting without a California contractor license can potentially be charged with a felony and subject to up to $10,000 in fines and three years in state prison (Business and Professions Code section 7028.16). In areas that are not state or federally-declared disaster areas, penalties are generally misdemeanors.

“A state-licensed contractor is the right choice when looking for a legitimate, qualified home repairperson”especially in an urgent situation,” said CSLB Registrar Steve Sands. “A CSLB-licensed contractor who is skilled in the specific trade you are seeking is not likely to leave you in the lurch when it comes to properly completing the job at a fair price.”

For tree trimming and removal jobs where the tree is 15 feet or higher and the job is more than $500, the contractor must be state-licensed. Business & Professions Code allows a gardener to do incidental pruning on trees less than 15 feet and under a cost of $500 without a CSLB license.

CSLB urges consumers to follow these tips when soliciting bids from a home improvement contractor:

• Hire only licensed contractors, and ask to see the license and photo identification to make sure the person is who they claim to be.
• Dont rush into repairs, no matter how badly they are needed.