Tag Archives: California Contractors State License Board

THE CONTRACTORS STATE LICENSE BOARD (CSLB) ZERO-TOLERANCE ENFORCEMENT POLICY IN 2010 AND NOW ISSUES LEGAL ACTION AGAINST ANY C-10 ELECTRICAL CONTRACTOR WHO WILLFULLY EMPLOYS AN UNCERTIFIED ELECTRICIAN TO PERFORM WORK AS AN ELECTRICIAN

 

CSLB Announces Zero Tolerance Enforcement Policy for C-10 Electrical Contractors. 

—————————————————————————————————

SACRAMENTO – The Contractors State License Board (CSLB) established a zero-tolerance enforcement policy in 2010 and now issues legal action against any C-10 Electrical contractor who willfully employs an uncertified electrician to perform work as an electrician. CSLB is legally required to open an investigation and initiate disciplinary action against the contractor (which may include license suspension or revocation) within 60 days of receipt of a referral or complaint from the Department of Industrial Relations’ Division of Apprenticeship Standards (DAS).

Labor Code Section 3099.2 stipulates that anyone who performs work as an electrician for C-10 Electrical contractors shall hold an electrical certification card issued by DAS; DAS is required by Labor Code Section 3099.2 to report violations to CSLB.

Electricians are defined as those who engage in the connection of electrical devices for C-10 contractors. It is CSLB’s position that electrical work must be performed by either a state-licensed or a certified electrician. An indentured apprentice or state-registered electrician trainee may also perform electrical work if supervised by a state-certified electrician. Trenching, concrete, framing, and other work that does not involve connecting electrical devices may be performed by noncertified workers.

Learn more about electrician certification by visiting the Division of Apprenticeship Standards website

Contact a CSLS School Administrator to assist in purusing your C-10 License today! www.MakeMeAContractor.com

Avoid the Pinch…CSLB Fee Increase coming soon!

CSLB Fee Increase avoid it with a Contractors License now

July is steadily approaching which means fee increases from the CSLB for a Contractors License associated fees is also approaching sooner than you think. Start now in a qualified Contractors Licensing program such as the In School Law & Trade program with CSLS and avoid the pinch.  Details from the CSLB outlined to give you an idea of how enrolling now can save you from the big pinch.

Office of Administrative Law Approves CSLB Fee Increase

New fee schedule begins July 1, 2011

SACRAMENTO – Contractors State License Board (CSLB) application, licensing and registration fees transition to a new schedule on July 1, 2011, following action taken by the state Office of Administrative Law (OAL) in 2010. CSLB fees had remained the same since 1993. OAL approved increases that would represent the statutory maximum that was set by the Legislature in 2002 in response to the Enforcement Monitor report that called for increased resources for CSLB’s enforcement program.  The increase will help assure that CSLB is able to uphold its mandated protection of California consumers and the integrity of the construction industry.

 
Fee Current Amount New Amount  Increase % Increase
Application for Original Contractor License $250.00 $300.00 $50.00 20%
Application to Add a Supplemental Classification or to Replace the Responsible Managing Officer or Employee on an Existing License $50.00 $75.00 $25.00 50%
Rescheduling an Examination $50.00 $60.00 $10.00 20%
Initial License Fee $150.00 $180.00 $30.00 20%
Renewal – Contractor License (Biennial) $300.00 $360.00 $60.00 20%
Renewal – 4-Year Inactive License $150.00 $180.00 $30.00 20%
Reactivate Contractor License $300.00 $360.00 $60.00 20%
Home Improvement Salesperson (HIS) Registration Fee $50.00 $75.00 $25.00 50%
Asbestos Certification Fee $50.00 $75.00 $25.00 50%
Hazardous Substance Removal Certificate $50.00 $75.00 $25.00 50%
Delinquent Renewal – Contactor License /1 $150.00 $180.00 $30.00 20%
Delinquent Renewal – 4-Year Inactive License /1 $75.00 $90.00 $15.00 20%
Delinquent Renewal – HIS Registration /1 $25.00 $37.50 $12.50 50%

/1 Delinquent renewal fees are not included in the proposed regulation because B&P Code Section 7137 (f) sets the delinquency fee as a percentage of the applicable renewal fee: “The delinquency fee is an amount equal to 50 percent of the renewal fee, if the license is renewed after its expiration.”

Statewide sting nets 19 suspected unlicensed contractors in San Diego County

By Tanya Mannes/www.signonsandiego.com
Wednesday, March 16, 2011

Nineteen contractors in San Diego County were among 135 arrested last week during a statewide undercover operation seeking to identify people working without proper licensing.

The Contractors State License Board conducted the operation to spotlight the severe risks California consumers take when they hire unlicensed operators to work in and around their home.

Consumers often don’t realize the risk they run when hiring someone who is not licensed. Because these phony contractors don’t carry workers’ compensation insurance, the homeowner could be liable if a worker is hurt on the job. Also, if something goes wrong or the project is abandoned, homeowners have few options for getting back their money.

“Consumers must check out the people they’re going to hire to work on their home to make sure they’re properly licensed,” said CSLB Registrar Steve Sands. “A family’s safety or finances could be jeopardized by not taking a few minutes to verify the contractor on CSLB’s website or through our toll-free phone system. We hope this blitz is a wake-up call for consumers to check the license first.”

To verify licensing, visit www.cslb.ca.gov or call 1-800-321-CSLB.

Of those arrested statewide, some were registered sex offenders and others had warrants for arrest on suspicion of burglary, domestic violence or driving under the influence. (None of those cases were in San Diego County.)

The San Diego County operation received support from the District Attorney’s Office, the Sheriff’s Department and the California Department of Insurance.

Investigators from CSLB’s Statewide Investigative Fraud Team posed as homeowners or landlords, asking for bids on projects that ranged from landscaping, concrete and fencing to painting, gutters, garage doors, cabinets, tile work and tree trimming. Those who bid more than the legal limit of $500 for labor and materials received a notice to appear in Superior Court on suspicion of a misdemeanor charge of contracting without a license.

Other charges included illegal advertising and soliciting excessive down payments.

CSLB Press Release 1/13/2011 : Monterey Residents Face Criminal Charges for Fraudulently Using Contractor License Numbers

Suspects using business names “Window Design” and “Fresh Paint” arraigned on 146 counts

SACRAMENTO —Daniel Kenneth Furness, 58, and Colleen Gsell, 55, pleaded not guilty in Monterey County Superior Court on January 10, 2011, to 146 criminal charges relating to fraudulent use of other contractors’ license numbers, and adverting and contracting without their own license. The charges were filed following an investigation by the Contractors State License Board’s (CSLB) Central Valley Statewide Investigative Fraud Team (SWIFT), Monterey County District Attorney’s Office, and the Monterey and Marina Police Departments.

Furness and Gsell are suspected of using contractor license numbers not held by them, instead of obtaining their own licenses from the Contractors State License Board. For example, they allegedly used license numbers belonging to other people whose business names are “Window Design” and “Fresh Paint.” Furness and Gsell have not been issued a contractor license in either of their individual names, or a license to do business in the name of a company.

“We encourage homeowners to check their contractor’s license number on the CSLB website before any work is done,” said CSLB Registrar Steve Sands. “Consumers should ask to see the state-issued pocket license and a photo identification to make sure the person they are dealing with is the person who holds the contractor license in the appropriate work classification.”

Furness and Gsell are also suspected of illegal advertising and taking excessive down payments. Contractors must display their license number when advertising for jobs valued at more than $500 for labor and materials. It is also illegal to take down payments greater than 10 percent or $1,000, whichever is less, for any home improvement project. There is an exception for about two dozen contractors who purchase special consumer protection bonds and are noted on CSLB’s website.

Even though a consumer is not legally responsible for payments to an unlicensed contractor for projects valued at $500 or more for labor and materials, Furness is charged with instituting litigation against a deceased client’s estate and making inaccurate statements in a claim of lien filed against this client’s property. A licensed contractor or material supplier is entitled to file a mechanic’s lien if the contract amount is not paid as stated in the signed contract. An unlicensed operator who has contracted for work valued at more than $500 for labor and materials has no legal standing to do so. Furness is also charged with committing perjury in an application filed with CSLB.

Furness is formally charged with three counts of perjury and three counts of filing a false document. Furness and Gsell are each charged with 54 counts of illegal use of a contractor license number not issued to them; 42 counts of contracting without a contractor license; 23 counts of illegal advertising; and 21 counts of charging an excessive down payment.

“Those contracting without a license should understand that CSLB and its partners in law enforcement will not tolerate behavior that is detrimental to homeowners and licensed contractors who are complying with state laws and regulations,” added Sands.

Understanding the Contractor’s License Bond


In California, anyone who contracts to perform work that is valued at $500 or more for labor and materials must hold a current, valid license from the Contractors State License Board (hereinafter “CSLB”) and must carry a Contractor’s License Bond. Surety bonds are commonly used for this purpose, but cash or certificates of deposit may also be posted. All Contractor License Bonds must be implemented by an authorized surety company, in a manner up to the required standard of the CSLB and suitable to the State of California. Currently the CSLB requires that contractor’s bonds be in the sum of twelve thousand five hundred dollars ($12,500). At their discretion, the Board may require an applicant to carry a higher bond amount or separate bonds for contractors who have been disciplined, and the amounts of these bonds vary. The bond amount is not per job. It is the amount available for all jobs a contractor takes on during the life of the bond.

A surety bond is a contract in which a surety company promises the State of California that the contractor will comply with the Contractors’ State License Law. Generally speaking, a licensed contractor is obligated not to commit any violations of the Contractors’ State License Law. The law describes and identifies specific violations that the bond will cover and violations can result in disciplinary action against the licensed contractor. California Business and Professions Code § 7071.15 provides that failure to maintain a sufficient bond can result in a minimum penalty of suspension ranging from 60 days up to 1 year probation, and a maximum penalty of revocation. Additionally, if warranted the CSLB can impose an actual suspension of the license for 5 days or more, require contractors to retake the CSLB law and business examination if not taken within the past 5 years, impose educational course requirements, or require payment of CSLB investigation and enforcements costs.

If the contractor does not comply with the conditions of the bond, a consumer, supplier or an employee can file a claim against the bond. California Business and Professions Code § 7071.5 provides that the contractor’s bond shall be for the benefit of the following:
(a) A homeowner contracting for home improvement upon the homeowner’s personal family residence damaged as a result of a violation of this chapter by the licensee.
(b) A property owner contracting for the construction of a single-family dwelling who is damaged as a result of a violation of this chapter by the licensee. That property owner shall only recover under this subdivision if the single-family dwelling is not intended for sale or offered for sale at the time the damages were incurred.
(c) A person damaged as a result of a willful and deliberate violation of this chapter by the licensee, or by the fraud of the licensee in the execution or performance of a construction contract.
(d) An employee of the licensee damaged by the licensee’s failure to pay wages.
(e) A person or entity, including an express trust fund described in Section 3111 of the Civil Code, to whom a portion of the compensation of an employee of a licensee is paid by agreement with that employee or the collective bargaining agent of that employee, damaged as the result of the licensee’s failure to pay fringe benefits for its employees, including, but not limited to, employer payments described in Section 1773.1 of the Labor Code and regulations thereunder (without regard to whether the work was performed on a private or public work). Damage to an express trust fund is limited to actual employer payments required to be made on behalf of employees of the licensee, as part of the overall compensation of those employees, which the licensee fails to pay.

General requirements for bonds include the following:
•Bonds are NOT transferable – do not attempt to transfer a bond from
one license to another or from one qualifying individual to another;
•The business name and license number on the bond must correspond EXACTLY to the information in the records of the CSLB
•The license number on the bond of a qualifying individual must match that of the firm for whom the individual is to serve as the qualifying individual;
•Contractors bonds must be in the correct amount of $12,500;
•A bond of a qualifying individual must be in the correct amount of $12,500;
•The bond must have the signature of the attorney-in-fact ; and
•Bonds must be filed with the CSLB within 90 days of the effective date of the bond.

To avoid problems with the bonds filed for your license and to maintain your bonds, the following guidelines are helpful:
•Keep your required bonds, cash deposits, or bond exemptions current at all times;
•Renew your bonds promptly. Make sure that the effective date of a new bond is the same as the cancellation date of the old bond and allow for processing time;
•Only one bond is effective at any time. A second bond filed for the same period will cancel out the first bond;
•CSLB does not return any bond that has been accepted or processed for an active license; and
•Keep accurate records on your agent, surety company, bond numbers, effective dates, and terms of the bonds.

If a contractor receives notice from their surety company that a claim has been filed against his/her bond, the contractor should immediately contact the surety company to respond to the claim and explain his/her position. The contractor should also submit all documentation relevant to the claim. If a complaint is filed with the CSLB, the contractor should also respond immediately and provide the CSLB all of the requested information and documentation throughout the course of the investigation. Complaints filed with the CSLB and with surety companies are taken very seriously and a contractor’s cooperation is critical to a successful resolution.
——————————————————————————
1. See California Business and Professions Code § 7071.6.
2. The term attorney-in-fact is commonly used in the United States, to make a distinction from the term Attorney at law. An attorney-at-law in the United States is a lawyer—someone licensed to practice law in a particular jurisdiction. As an agent, an attorney-in-fact is a fiduciary for the principal, so the law requires an attorney-in-fact to be completely honest with and loyal to the principal in their dealings with each other. See Wikipedia @ http://en.wikipedia.org/wiki/Power_of_attorney .

STEPS TO BECOMING A LICENSED CONTRACTOR IN CALIFORNIA:What You Need To Know

What You Need To Know About Becoming A Licensed Contractor


Wondering how to become a Licensed Contractor or if you need to be Licensed? The following are the top questions we hear and answer guiding you and our students through becoming a Licensed Contractor successfully.

Who can become a licensed contractor?
A licensed contractor must be 18 years of age or older and have the experience and skills necessary to manage daily activities of a construction business, including field supervision, or be represented by a qualifying individual with the necessary experience and skills.

Who must be licensed as a contractor?
All businesses or individuals, who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in California, must be licensed by the California Contractors State License Board if the total cost (labor and materials) of one or more contracts on the project is $500 or more. Contractors must be licensed before submitting bids.

How much does a license cost?
In addition to the financial requirements that must be met, it costs $250 for an original application fee (nonrefundable) and $150 for the initial license fee for one classification. The license must be renewed every two years. Currently, the renewal fee is $300.

How can you apply?
The Application for Original Contractor’s License is available at any office of the Contractors State License Board. It is also possible to order or download an application form from our Website, www.cslb.ca.gov, call the CSLB’s 24-hour automated information line, (800) 321-CSLB (2752), or write to the CSLB, at: P.O. Box 26000, Sacramento, CA 95826, to request an application.

What kind of experience is required?
At least four years of journey-level experience is required to qualify for the exam. Credit is given for experience as a journeyman, foreman, supervising employee, contractor, or owner-builder.

What are the other requirements?
All applicants must be fingerprinted and undergo a criminal background check before a license is issued at an additional cost to the applicant.

Is there an examination requirement for a contractor’s license?
Yes, the qualifying individual for a contractor’s license is required to pass law and trade examinations, unless he or she meets the requirements for a waiver. An examination notice will be sent at least three weeks prior to the examination date.

Is school necessary?
Although there are no educational requirements to qualify for a contractor’s license, it is highly encouraged to seek assistance from a school that specializes in helping students pass the Contractor State License Board Exam.

For more detailed information on becoming a California licensed contractor, see the CSLB publication, Blueprint
for Becoming a California Licensed Contractor or visit our Website, www.cslb.ca.gov or visit MakeMeAContractor.com for more information today.

.