Tag Archives: CSLB

San Jose Operation Snags More Than One Dozen Unlicensed Operators


Important CSLB Bulletin: SACRAMENTO — The Contractors State License Boards (CSLB) Statewide Investigative Fraud Team (SWIFT) netted 14 suspects in a San Jose undercover sting operation this week. The Santa Clara County District Attorney’s office assisted in the December 7, 2010 sting and a sweep of construction sites on December 8, which resulted in one citation for contracting with an expired license and another for failure to carry workers compensation insurance.

“In today’s economy, it’s more important than ever for consumers to hire licensed and insured contractors,” said CSLB Registrar Steve Sands. “People put themselves and family members at risk when they hire unlicensed and uninsured individuals who can end up doing substandard work or never finish the job. They also cheat law-abiding licensees out of work.”

During the sting operation, SWIFT investigators posed as homeowners seeking bids for painting, landscaping, concrete, and roofing jobs. Suspects who bid more than $500 for labor and materials received a notice to appear (NTA) in court. 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 contractor 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.
CSLB licensees must have at least four years of journey-level experience in their license classification and must pass exams pertaining to their trade and state contracting laws. State law requires that licensees purchase a license bond for consumer protection and that their employees have workers compensation coverage to shield homeowners from liability. Roofing contractors (C-39) must purchase workers compensation for themselves, even if they do not have employees.

CSLB Sting Snatches Nine Illegal Operators in Glendora

Important CSLB Bulletin:
SACRAMENTO — The Contractors State License Board (CSLB) Statewide Investigative Fraud Team (SWIFT) caught nine people for violating state home improvement contracting laws during an undercover sting on December 13, 2010. SWIFT was assisted by the California Highway Patrol and the Los Angeles County District Attorney’a Office.

During the sting operation at a Glendora home, SWIFT investigators posed as homeowners seeking bids for painting, fencing, flooring, and cabinetry projects. Suspects who bid more than $500 for labor and materials received a notice to appear (NTA) in court. “Homeowners need to be fully aware of who they are letting into their homes,” said CSLB Registrar Steve Sands. “This operation illustrates the importance of spending a couple of minutes on CSLB website to check the license before you hire a contractor to ensure you aren’t putting your family or your home at risk.”
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 prohibits solicitation of a down payment that is greater than 10 percent of the projects value or $1,000, whichever is less, for home improvement contracts. There is an exception for about two dozen licensed contractors who purchase special consumer protection bonds and are noted on CSLB’s website. 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.

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.
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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 .

Important CSLB Bulletin: Attention C-10 Contractors


CSLB Announces Zero-Tolerance for C-10 Requirement ViolationsOnly Certified Electricians to Perform Work as Electricians
SACRAMENTO – Effective immediately, the Contractors State License Board (CSLB) establishes a zero-tolerance enforcement policy and will issue legal action against any C-10 Electrical contractor who willfully employs even one 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 Division of Apprenticeship Standards (DAS).
Subsections within Labor Code Section 3099 clearly state that certification by DAS is required for anyone who performs work as an electrician for C-10 Electrical contractors. DAS is required by Labor Code Section 3099.2 to report violations to CSLB.
Electricians are defined as all persons who engage in the connection of electrical devices for C-10 contractors. It is CSLB a position that electrical work must be performed by a certified electrician or an approved apprentice. Trenching, concrete, framing, and other work that does not involve connecting electrical devices may be performed by noncertified workers.
Questions regarding this CSLB enforcement policy should be directed to Brian Gedney (916) 255- 4435.

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.

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CSLB Fall California Blitz Stings 111 for Unlicensed Contracting


CSLB reported the California Blitz stung 111 for unlicensed contracting.
SACRAMENTO – The Contractors State License Board’s (CSLB) fall “California Blitz” puts a glaring spotlight on the importance of making sure contractors are properly licensed before allowing them into your home. A total of 111 suspected unlicensed contractors were arrested during the two-day statewide undercover operation on October 20 and 21, 2010. Three of those arrested, including a convicted sex offender, went to jail.

CSLB conducted nine simultaneous sting operations in Fresno, La Mesa, Pasadena, Placerville, Porterville, San Juan Capistrano, Seaside, Visalia, and West Sacramento.

During the Blitz, investigators from CSLB’s Statewide Investigative Fraud Team (SWIFT) posed as homeowners or community organization volunteers, asking for bids on projects that ranged from swimming pool repair to painting, landscaping, and tree trimming. Those who bid more than the legal limit of $500 for labor and materials received a Notice to Appear (NTA) in court for a misdemeanor charge of contracting without a license. Other charges included illegal advertising and soliciting excessive down payments. State law also requires contractors to put their license number in all forms of advertising. Those who are not licensed can advertise and do jobs valued at less than $500, but their ads must state that they are not a licensed contractor. Also, it is illegal to ask for a down payment greater than 10 percent of the contract price or $1,000, whichever is less. There is an exception for about two dozen licensees who purchase special bonds for consumer protection. Those exceptions are noted on CSLB’s website.

Three people were booked and taken to jail on outstanding warrants in West Sacramento and Placerville. Mardardo Flores, 31, of Woodland, was booked on a no bail warrant for violating probation by failing to register as a sex offender. JosĂŠ Antonio Anguiano, 28, of Sacramento, went to jail on a no bail warrant for felony domestic violence. Carl Borrowman, 47, of Placerville, was booked on a warrant for felony fraudulent use of a contractor license number (for contracting on a license that CSLB revoked from him in 2000). Since 2005, state law has required that applicants for new licenses or those changing their classifications submit fingerprints for criminal background checks.

“This Blitz is a wake-up call for all California consumers,” said CSLB Registrar Steve Sands. “You must check out the people you’re going to hire to work on your home to make sure they’re properly licensed. Your family safety or your 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.”

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

The goal of CSLB’s twice-yearly blitz is to educate consumers about potential dangers of hiring phony contractors, and to encourage people who want to work in the construction trades and who qualify to get their contractor license to comply with California law. Local prosecutors and law enforcement agencies, as well as the California Department of Insurance, Department of Industrial Relations, and the Department of Homeland Security’s Immigration and Customs Enforcement assisted CSLB with the Fall Blitz. “The Yolo County District Attorney’s Office is always anxious to work with other agencies to ensure compliance with the law,” said Yolo County District Attorney Jeff Reisig. “We’ll make every effort to get these people into compliance and to ensure the public is safeguarded.”
In addition to the stings, CSLB investigators, along with investigators from the Department of Industrial Relations and Department of Insurance, also conducted sweep operations at construction sites in Solano and Riverside Counties. These sweeps were to verify that contractors were properly licensed and carried the necessary insurance. A number of citations were issued to contractors for not carrying workers’ compensation insurance.

Visit MakeMeAContractor.com to learn how to avoid the CSLB Stings by earning a valid Contractors License.

CSLB Takes the Cake for Sting Targeting Illegal Operators + Ten Reasons to get your License


CSLB Web Release www.CSLB.ca.gov shares the latest news regarding the legal necessity for Contractors to operate with a California Contractors License. Here at Contractors State License Services our mantra is to share the news and events that effect our prospective students and students. Just this month alone we continue to see more and more news of targets on illegal operators. In this case the CSLB stings another ten for violating California contracting laws. These news bites further illustrate the need for a valid Contractors License.

CSLB Takes the Cake for Sting Targeting Illegal Operators
Ten headed to court for violations of California contracting laws

SACRAMENTO – Members of the Contractors State License Board (CSLB)’s Statewide Investigative Fraud Team (SWIFT) received a torte and a hearty thank you from a licensed contractor for a sting operation conducted in Monterey last week. One of the ten arrested suspects said he worked for the grateful licensee, which was not the case. The sting operation, on September 30, 2010, was conducted with assistance from the Monterey Police Department and Monterey County District Attorney’s Office.

During the operation, SWIFT investigators posed as homeowners who were looking for a contractor to do fencing work on their home. Those who bid more than $500 were arrested and issued an issued a Notice to Appear (NTA) in court for contracting without a license. California law requires all home improvement jobs valued at greater than $500 for labor and materials be undertaken by a state-licensed contractor. Those without licenses may advertise their services and work on jobs valued at less than $500, but their ads must state that they are not licensed. Licensees are required to put their license number in all ads. Some of those who will be going to court will also face charges of soliciting an excessive down payment. State law prohibits asking for down payments greater than $1,000 or ten percent of the contract price, whichever is less. There is an exception for about two dozen contractors who purchase special consumer protection bonds that are noted on CSLB’s website.

“Many consumers don’t realize the risks they take when they let an unlicensed operator into their home,” said CSLB Registrar Steve Sands. “Those who are violating the state’s license laws are also not complying with important consumer protection requirements, such as purchasing workers’ compensation coverage for their employees.”
State law requires licensed contractors to carry workers’ compensation coverage for all employees. That ensures the homeowner isn’t stuck with medical bills if a worker is injured on their property.

Top ten reasons we hear for getting a Contractors License:
1. To legally operate in California
2. To protect yourself
3. To gain respect from your colleagues and prospective customers
4. To be competitive
5. To be self employed
6. To gain prestige as a professional and avoid the negative connotation that follow unlicensed contractors
7. To enter into larger contracts & advertise without being worried
8. To avoid being arrested and fined by the State
9. To network with other licensed contractors for more business
10. To be able to legally collect for work performed

View A CSLB Sting Operation Video here!
http://www.facebook.com/pages/Contractors-State-License-Services/137797582916767?v=wall

CSLB Warns to Prevent Scams People Should Hire Only State-Licensed Contractors

“The California State Licensing Board (CSLB) says to help prevent scams, people should hire only state-licensed contractors on projects of $500 or more for labor and material.” 

More news continues to flood marketplace surrounding arrest, fines, and unlawful activity surrounding contracting without a license. Just today News 10 ABC’s Michelle Ponto reported the following:   AUBURN, CA — A Roseville contractor was arrested after ripping off an 87-year-old Auburn woman. 

According to the Placer County district attorney, 30-year-old Leron Anthony Stephenson from Roseville bilked the elderly woman out of $13,500 for a tree removal project on her property. Stephenson cashed six checks, including four blank checks given by the victim.

Stephenson was given a one-year jail sentence and must pay back the $13,500 to the family of his victim.  The elderly woman died before the defendant changed his plea to guilty in April, said prosecutor Jim Deslaurier.

Stephenson, who pleaded to theft charges and contracting without a license, was also placed on five years probation and was given a suspended prison sentence of five years and four months when sentenced May 26 in Placer County Superior Court.

The California State Licensing Board (CSLB) says to help prevent these kinds of scams, people should hire only state-licensed contractors on projects of $500 or more for labor and material.

A contractor’s license number can be checked online at www.cslb.ca.gov or by calling (800) 321-2752.

More tips include:

— Get at least three bids and three references for past work from each bidder.

— Make sure all project expectations are in writing.

— Only sign the contract if you completely understand all terms. 

— Do not pay more than 10 percent down or $1,000, whichever is less.

— Do not pay in cash and do not let payments get ahead of the work.

By Michelle Ponto, News10 http://www.news10.net/news/story.aspx?storyid=90343&catid=2

To understand more on who needs a contractor’s license visit  http://makemeacontractor.com/California-contractors-license-cslb.cfm

CSLB Sting Operations How To Not Get Stung

Daily we see reports of the CSLB’s Statewide Investigative Fraud Team (SWIFT) sending unlicensed operators to jail.  Just recently in July 2010 CSLB stings stung 13 illegal operators, including violators of state energy-saving programs. We thought it best to share an overview of what the CSLB -Contractors State License Board, considers an illegal contractor and share what penalties these operators are potentially subject to. 

According to the CSLB…

Who is considered an illegal contractor?

It is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in labor and materials. Besides being illegal, unlicensed contractors lack accountability and have a high rate of involvement in construction scams. They also are unfair competition for licensed contractors who operate with bonds, insurance and other responsible business practices.

What is the CSLB doing to stop illegal activity?

The Statewide Investigative Fraud Team (SWIFT) is set up to monitor and combat illegal activity. SWIFT has teams around the state that conduct stings on a regular basis and sweep construction sites.

SWIFT also conducts joint operations and sweeps with other state agencies dedicated to combating underground activity. The partnerships with other agencies raise the penalties and fines for violators by increasing the scope of violations to include taxes, illegal payrolls, and workers compensation and worker safety.

CSLB :http://www.cslb.ca.gov/Consumers/ReportUnlicensedActivity/WhatIsIllegalContractorActivity.asp 

Penalties & Fines

“If you’re caught contracting without a license, you will likely have to go in front of a judge to answer to misdemeanor charges, which carry a potential sentence of up to six months in jail and/or a $500 fine, and a potential administrative fine of $200 to $15,000. If you get caught again, the penalties get stiffer. You could face a mandatory 90 day jail sentence as well as a fine of 20 percent of the contract price of the work performed, or a $4,500 fine.”, according to the CSLB.

Don’t get stung! Protect your future:

  • Get Licensed this is critical and the law
  • Do not engage in contracting work on any project valued at $500 or more in labor and materials
  • Advertised accurately

View Video of CSLB Sting in action

[youtube=http://www.youtube.com/watch?v=9-61eZ9EH7U]

Gain The Competitive Edge

As the Construction market landscape continues to be more competitive now more than ever it is important to obtain a Contractor’s License and or additional licenses to obtain a competitive edge. With limited dollars to spend on home improvement and construction consumers are compelled to hire the best Contractor they can find and are looking for the most cost effective opportunities.

Many Consumers are not taking a chance at hiring an unlicensed Contractor for fear of potential additional cost to their projects. Consumer skepticism includes fear of unlicensed operator’s not carrying adequate insurance coverage necessary to protect them from potential claims. Unlicensed operators do not carry workers’ compensation insurance for their employees as required by California Labor Code or the contractor license bonds required by the state’s Business and Professions (B&P) Code. In this case, should a problem arise the homeowner may be liable if a worker is hurt on their property and without financial recourse if something goes wrong with the project. Many consumers want to avoid costly pitfalls such as these by hiring an experienced Licensed Contractor. For example “badly installed heating or air-conditioning units cost California families money, harm the state’s ability to meet important energy and environmental goals, and can even make people sick,” said CSLB Registrar Steve Sands. Additionally, Failure to obtain a building department permit and have proper follow-up by a California Energy Commission-certified inspector could result in additional expense and risk for the homeowner. A deficient HVAC system may affect a property’s resale value, and could harm the state’s air quality and environment. Inspections ensure that a system is safe, will produce lower utility bills, and help the state and consumer meet energy-efficiency goals. [CSLB]

B&P Code also requires licensees to place their license number in all advertisements. Unlicensed contractors can advertise and perform projects valued at less than $500 but must state in their ads that they are not licensed. A Licensed Contractor in this case would be a more competitive candidate.

The Contractors State Licensing Board works diligently to protect California Consumers from costly mistakes. Recently, four unlicensed operators contracting to replace the air-conditioning unit of a Rancho Bernardo condominium were among the 13 snared for violating California home improvement contracting laws during an undercover contractor sting operation on July 28 and 29, 2010. The Contractors State License Board’s (CSLB) Statewide Investigative Fraud Team (SWIFT) was assisted by the San Diego Police and City Attorney, San Diego County District Attorney, and the California Department of Insurance. SWIFT members posed as homeowners seeking bids for the installation of a new air conditioner, and for plumbing, painting, and tile work. “Stings like this help keep California consumers from making an expensive mistake.”

Several industries and occupations also require or prefer licensed contractors which equates to a competitive landscape:

 

 

 

 

How might you gain a competitive edge?

 Get Licensed

 Network with other contractors for more business

 Continue your education with seminars and certification programs

 Advertise effectively

 Create a Corporation or DBA to protect your company

 Network and get connected via social media outlets such as Facebook, LinkedIn, Twitter

 Price competitively

 Do the best work and build a stellar reputation

 Ask for referrals