Tag Archives: Contractor License

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. 

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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

CSLB Scheduled to Increase Rates in 2011.

Scheduled CSLB 2011 Fee Increases

We knew that this was coming and now it’s official. CSLB is scheduled to increase licensing fees begining July 1, 2011. If you’re thinking about getting your license or making changes to your license now is the time to do it.
Changes to existing regulations that would increase contractor licensing fees 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 contractor 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.

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.

CARLSBAD: Kelly Elementary hero construction workers get scholarships

Kelly Construction workers receiving information on CSLS Programs

Five men working at Kelly during shooting to get $1,000 for classes

By STACY BRANDT – [email protected] | Posted: Saturday, January 8, 2011 6:00 am

The construction workers who tackled a gunman at Kelly Elementary School in October will be able to further their own education soon with some help from a statewide contractors training program.

Contractors State License Services, a private vocational school, has offered the men —- Mario Contreras, Steven Kane, Carlos Partida, Toby Wiest and Edward Dominguez —- free tuition and materials for one of its courses, up to $1,000.

Most of the men said they want to study to get a state contractors license and the scholarship would cover the cost of that course, or another course offered by the school.

The men, who work for San Diego-based Randall Construction, said the offer was appreciated, especially because they haven’t had steady work since the job at Kelly Elementary ended in October. Becoming licensed contractors will help them get more work or branch out on their own, they said.

The class to prepare them for taking the contractors test can take anywhere from six weeks to four months to finish, depending on how quickly they do the work.

In the end, the school will help them get their license, set up a business name and help process paperwork, said Alex Avelar, state license consultant for the Van Nuys-based school.

The five men were pouring concrete at the school the day 41-year-old Brendan O’Rourke allegedly opened fire on children in the playground. Contreras and Kane chased after the gunman on foot while Partida clipped him with his truck.

Kane returned to work the same day with Dominguez and Wiest, while Partida and Contreras took a few days off. Partida said he wanted to collect his thoughts before returning to work, and Contreras was nursing his hand, which he broke during the scuffle.

The school offered the scholarships to reward the workers for their heroism, said Cyndi Beaver, marketing coordinator at the school.

“It was an opportunity for us to kind of give back,” she said.

O’Rourke allegedly shot two second-grade girls in the arm before the men chased him out of the playground. Both children recovered and returned to school quickly, school officials said.

Kane said he was overwhelmed initially by all of the attention the men got after the incident, but now it feels as if it happened long ago. More importantly, he said, he’s thankful that nobody was more seriously hurt.

Call staff writer Stacy Brandt at 760-901-4009 begin_of_the_skype_highlighting              760-901-4009      end_of_the_skype_highlighting.

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

FIX THINGS BEFORE THEY’RE BROKEN?

Helpful Tips from IPSSA

By Ray Arouesty/ IPSSA Aug 2010 Newsletter
Ray Arouesty is an attorney at law and president of Arrow Insurance Service, IPSSA’s insurance provider since 1988.

My client had been servicing commercial pools for more than ten years. On a day much like any other, he received a phone call informing him that water from the pool filter was spraying into one of the apartments. The problem was clear: the filter O-ring had split, allowing a stream of water to be directed toward the building. My client was shocked when the client’s homeowner’s insurance company demanded reimbursement for more than $100,000 in water damage. After all, he was only the service technician. As it turns out, my client never changed the filter O-ring and stated that he never even checked the O-ring for wear or deterioration. Had he done so, the damages probably would have been avoided. A pool service tech will be held responsible for damages caused by his failure to exercise ordinary care. We routinely change the brake pads on our cars before they fail because we know that they will eventually fail if we don’t. The same logic applies to swimming pool equipment. Service techs should have a practice of routinely checking wear on parts and advising their customers before these items break. This includes not only Orings, but plastic hoses and seals as well. It takes little effort and you may be responsible for the resulting damage if you fail to do so.

Page 10 The IPSSAN August 2010
Coverage Corner
Fix things before they’re broken?

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