California Code of Regulations, Title 16, Division 8

Section 810§Sections Definitions*

(a) For purposes of this division, “battery energy storage system” means one or more devices, assembled together, capable of storing energy in order to supply electrical energy at a future time.

(b) For the purposes of this division, “Board” means the Contractors State License Board and “Code,” unless otherwise defined, means the Business and Professions Code.

Effective date temporarily stayed at time of printing

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7008, Business and Professions Code.)

Section 811§Sections Fees

(a) The fees for applications are as follows:

(1) An application for an original license in a single classification is $450.

(2) An application for each additional classification applied for in connection with an original license is $150.

(3) An application for each additional classification pursuant to Business and Professions Code Section 7059 is $230.

(4) An application to replace a responsible managing officer, responsible managing manager, responsible managing member, or responsible managing employee pursuant to Business and Professions Code Section 7068.2 is $230.

(5) An application to add personnel, other than a qualifying individual, to an existing license is $125.

(6) An application for an asbestos certification examination is $125.

(7) An application for a hazardous substance removal or remedial action certification examination is $125.

(b) The fees for scheduling examinations are as follows:

(1) Rescheduling an examination for an applicant who has applied for an original license, additional classification, a change of responsible managing officer, responsible managing manager, responsible managing member, or responsible managing employee, or for an asbestos certification or hazardous substance removal certification is $100.

(2) Scheduling or rescheduling an examination for a licensee who is required to take the examination as a condition of probation is $100.

(c) The fees for initial license and registration fees are as follows:

(1) The initial license fee for an active or inactive license for an individual owner is $200.

(2) The initial license fee for an active or inactive license for a partnership, corporation, limited liability company, or joint venture is $350.

(3) The registration fee for a home improvement salesperson is $200.

(d) The fees for license and registration renewals are as follows:

(1) The renewal fee for an active license for an individual owner is $450.

(2) The renewal fee for an inactive license for an individual owner is $300.

(3) The renewal fee for an active license for a partnership, corporation, limited liability company, or joint venture is $700.

(4) The renewal fee for an inactive license for a partnership, corporation, limited liability company, or joint venture is $500.

(5) The renewal fee for a home improvement salesperson registration is $200.

(e) Miscellaneous fees are as follows:

(1) The fee to change the business name of a license as it is recorded under Chapter 9 of Division 3 of the Business and Professions Code is $100.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7076.5 and 7137, Business and Professions Code.)

Section 812§Sections Dishonored Check Service Charge [Repealed]

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7008, Business and Professions Code; and Section 6157, Government Code.)

Section 813§Sections Abandonment of Application

(a) An application, other than a renewal application, shall be deemed abandoned whenever an applicant fails to return an application rejected for insufficiency or incompleteness within 90 days from date of original notice of rejection. This 90-day period may be extended by the Registrar for good cause.

(b) Any application so abandoned may not be reinstated; however, the applicant may file a new application accompanied by the required fee.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7067, Business and Professions Code.)

Section 816§Sections Application Form for Original License

(a) The license application form prescribed by the Registrar shall seek from each member of the personnel of the applicant the following information:

(1) A record of the previous experience in the field of construction of the member of applicant's personnel who will qualify for the classification requested.

(2) Whether the applicant or a member of applicant's personnel or whether to his or her knowledge anyone with whom he/she has been associated in the contracting field has ever been licensed or had a professional or vocational license refused or revoked.

(b) The application shall be signed, under penalty of perjury, by each member of the personnel of the applicant.

(c) Nothing in this Rule shall be interpreted to limit the Registrar's authority to require an applicant to provide any other information necessary to determine the applicant's qualifications, or to exempt the applicant therefrom, or to enforce the provisions of the Contractors License Law, except as otherwise required by law. The Registrar may exempt applicants who are eligible for waiver of examination, pursuant to Section 7065.1 of the Code, or who are not required to take the examination, pursuant to Section 7065 of the Code, from the requirement to submit information described in subsection (a)(1).

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7066, 7067.6 and 7070, Business and Professions Code.)

Section 819§Sections Requirement of Corporations

A foreign or domestic corporation, applying for a license, shall complete a certification as prescribed by the Registrar, showing that it has fulfilled the filing requirements of the California Secretary of State as set out in Sections 200 and 2105 of the Corporations Code.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7067, Business and Professions Code.)

Section 824§Sections Application Investigation Required

In addition to a review and verification of all applications for licensure, the Registrar shall conduct a comprehensive field investigation of a minimum of 3% of all such applications. Such investigation shall include those areas of experience claimed and such other areas as the Registrar deems appropriate for the protection of the public. All claimed experience shall be supportable by documentation satisfactory to the Board. The Registrar shall provide to the Board, for its approval, acceptable forms of such documentation and shall inform the applicant in the application form that such documentation may be requested by the Board.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7068, Business and Professions Code.)

Section 825§Sections Experience Requirement of Applicant

(a) Every applicant for a contractor’s license must have had, within the last 10 years immediately preceding the filing of the application, not less than four years experience as a journeyman, foreman, supervising employee or contractor in the particular class within which the applicant intends to engage as a contractor. For purposes of this section, “journeyman” means an experienced worker in the trade who is fully qualified, as opposed to a trainee, and is able to perform the trade without supervision; or one who has completed an apprenticeship program.

(b) An applicant who was formerly a qualifier on a license in the same classification applied for may compute experience without regard to the ten-year limitation.

(c) An applicant shall not be jeopardized in computing time for service in the armed forces of the United States during a National Emergency and the length of service may be added to the 10 years mentioned above.

(d) Acceptable training in an accredited school or completion of an approved apprenticeship program in accordance with the California Labor Code (commencing with Section 3070 of the Labor Code, Chapter 4, of Division 3) or its equivalent, as approved by the Registrar, in the construction trade for which application is made will be counted as experience. In no case, however, will such training or completion of an approved apprenticeship program count for more than 3 years of the experience.

(e) The required experience shall be possessed by one member of the applicant entity or by a responsible managing employee therefore, and the member or responsible managing employee shall be required to take the examination.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7068, Business and Professions Code.)

Section 825.5§Sections General Manufactured Housing Contractor Initial Installer Training Requirement

(a) Effective September 30, 2021, in addition to the experience requirements in California Code of Regulations, title 16, section 825 and other requirements for licensure in the Business and Professions Code, an applicant for a C−47 − general manufactured housing contractor license shall complete the initial installer training that is compliant with the training curriculum contained in section 3286.308(a) of the Code of Federal Regulations, title 24, subtitle B, chapter XX, subpart D.

(b) Applicants shall submit proof of compliance with subdivision (a) to the Board with their application for licensure. Proof of compliance shall be shown by the Certificate of Completion of Training identified in section 3286.303(c) of the Code of Federal Regulations, title 24, subtitle B, chapter XX, subpart D. An application submitted without the certificate prescribed by this subdivision is not complete within the meaning of section 7072 of the Business and Professions Code.

(c) The initial installer training shall be obtained through one or more qualified trainers, as confirmed by the United States Department of Housing and Urban Development under part 3286 of the Code of Federal Regulations, title 24, subtitle B, chapter XX, subpart D, commencing with section 3286.301

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7026.11, 7058, 7059, 7065 and 7068, Business and Professions Code; and part 3286 of the Code of Federal Regulations, title 24, subtitle B, chapter XX, subpart D, section 3286.301 et seq.)

Section 826§Sections Registrar to Pass on Experience

The Registrar may determine that an applicant who does not have the specific experience required in Section 825 has some comparable knowledge, training, and/or experience which is equivalent to the required experience.

Section 827§Sections Review of Application for Original License, Additional Classification, or Replacement of Qualifying Person

(a) Application Requiring Examination:

(1) The Board shall inform an applicant in writing within 60 days of receipt whether the application is complete and has been referred for examination or is deficient and what specific information is required. An application is “complete” when an acceptable application and fee have been filed by the applicant.

(2) When an application is returned which was previously rejected for deficiencies, the Board shall decide within 5 days of receipt whether the application is complete and accepted for filing.

(3) The Board shall decide within 115 days after a complete application has been referred for examination whether an applicant meets the requirements for licensure, provided that the examination has been successfully completed and the applicant has filed the bond(s), fee and other documents required by Division 3 of the Business and Professions Code.

(4) If an applicant has not successfully completed the examination as scheduled in subsection (3), or met the other requirements of that subsection (subject to the limitations of Business and Professions Code Section 7074), the Board shall decide within 45 days of the successful completion of a subsequently scheduled examination and the filing of acceptable bond(s), fee and other documents required by Division 3 of the Business and Professions Code, whether the applicant meets the requirements for licensure.

(5) The periods specified in subsection (3) and (4) shall be extended by a period of 60 days, if the application must be investigated.

(6) The minimum, median and maximum times for an application requiring examination for licensure as a contractor, for an additional classification, or for replacement of the qualifying person from the time of receipt of the application until the Board decided to issue the license, grant the additional classification or the replacement of the qualifying person, based on the Board’s past two years performance, were:

(A) Application for Original License, with Examination: Minimum ......... 11 days Median ........... 253 days Maximum ...... 726 days

(B) Application for Additional Classification, with Examination: Minimum ......... 20 days Median ............. 96 days Maximum ...... 617 days

(C) Application for Replacement of the Qualifying Person, with Examination: Minimum ......... 20 days Median ............. 78 days Maximum ...... 428 days These periods include not only the Board’s processing time, but also the time for which the applicant is responsible: e.g., the return of a rejected application, failure of and/or failure to appear at examinations, filing of the required bond(s) and fee.

(b) Applications Not Requiring Examination:

(1) The Board shall inform an applicant for licensure, without examination, as a contractor, for an additional classification, or for replacement of the qualifying person pursuant to Sections 7065 or 7065.1 of the Business and Professions Code within 50 days of receipt whether the application is complete and what the issuance or granting requirements are or that the application is deficient and what specific information is required.

(2) When an application is returned which was previously rejected for deficiencies, the Board shall decide within 5 days of receipt if the application is now complete and accepted for filing.

(3) Once the applicant has filed acceptable bond(s) and other documents required by Division 3 of the Business and Professions Code, the Board shall decide within 15 days whether the applicant meets the requirements for licensure.

(4) The period outlined in subsection (1) may be extended by 60 days if the application must be investigated.

(5) The minimum, median and maximum times for an application for licensure, without examination, as a contractor, for an additional classification, or for replacement of the qualifying person from the time of receipt of the application until the Board decided to issue the license, grant the additional classification or the replacement of the qualifying person, based on the Board’s past two years performance were:

(A) Application for Original License, without Examination: Minimum ............. 1 day Median ............. 48 days Maximum ...... 349 days

(B) Application for Additional Classification, without Examination: Minimum ......... 24 days Median .......... 58.5 days Maximum ...... 358 days

(C) Application for Replacement of the Qualifying Person, without Examination: Minimum ............. 1 day Median ............. 29 days Maximum ...... 253 days These periods include not only the Board’s processing time, but also the time for which the applicant is responsible: e.g., return of a rejected application and filing of the required bond(s) and fee.

(Authority cited: Section 7008, Business and Professions Code; and Section 15376, Government Code. Reference: Section 15376, Government Code; and Sections 7065, 7065.1 and 7074, Business and Professions Code.)

Section 828§Sections Review of Application for Home Improvement Salesman Registration

(a) The Board shall inform, in writing, an applicant for registration as home improvement salesman within 30 days of receipt whether the application is deficient and what specific information is required or whether the registration has been issued.

(b) When an application is returned which was previously rejected for deficiencies, the Board shall decide whether the applicant meets the requirements for registration within 5 days after return of the completed application. A “completed application” means that an acceptable application form together with all required information, documentation and fee has been filed by the applicant.

(c) The time periods outlined in (a) and (b) may be extended by 5 weeks if the fee is in the form of a personal or company check, or by 60 days if an application requires investigation to determine if a statement of issues must be filed.

(d) The minimum, median and maximum processing times for an application for registration as a home improvement salesman from the time of receipt of the initial application until the Board makes a final decision on the application, based on the Board’s past two years performance, are: Minimum: ............ 1 day Median: .............. 8 days Maximum: ....... 53 days

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 15376, Government Code; and Section 7153.1, Business and Professions Code.)

Section 830§Sections Classification Policy

(a) All contractors to whom licenses are issued shall be classified by the Registrar as a specialty contractor, as defined in this article; a general engineering contractor (Class A), as defined in Section 7056 of the Code; or a general building contractor (Class B), as defined in Section 7057 of the Code.

(b) Contractors licensed in one classification shall be prohibited from contracting in the field of any other classification unless they are also licensed in that classification or are permitted to do so by Section 831.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7059, Business and Professions Code.)

Section 831§Sections Incidental and Supplemental Defined

For purposes of Section 7059, work in other classifications is “incidental and supplemental” to the work for which a specialty contractor is licensed if that work is essential to accomplish the work in which the contractor is classified. A specialty contractor may use subcontractors to complete the incidental and supplemental work, or they may use their own employees to do so.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Section 7059, Business and Professions Code.)

Section 832§Sections Specialty Contractors Classified

Specialty contractors shall perform their trade using the art, experience, science and skill necessary to satisfactorily organize, administer, construct and complete projects under their classification, in accordance with the standards of their trade. They are classified into the following subclassifications: Asbestos Abatement ................................................................... C-22 Boiler, Hot Water Heating and Steam Fitting ......................... C-4 Building Moving/Demolition ..................................................... C-21 Cabinet, Mill Work and Finish Carpentry ............................... C-6 Concrete ...................................................................................... C-8 Construction Zone Traffic Control ............................................ C-31 Drywall........................................................................................ C-9 Earthwork and Paving ............................................................... C-12 Electrical ..................................................................................... C-10 Elevator ....................................................................................... C-11 Fencing ........................................................................................ C-13 Fire Protection ............................................................................ C-16 Flooring and Floor Covering ...................................................... C-15 Framing and Rough Carpentry ................................................. C-5 General Manufactured Housing ................................................ C-47 Glazing ........................................................................................ C-17 Insulation and Acoustical .......................................................... C-2 Landscaping ................................................................................ C-27 Lathing and Plastering .............................................................. C-35 Limited Specialty ....................................................................... C-61 Lock and Security Equipment ................................................... C-28 Low Voltage Systems ................................................................. C-7 Masonry ...................................................................................... C-29 Ornamental Metal ...................................................................... C-23 Painting and Decorating ............................................................ C-33 Parking and Highway Improvement ........................................ C-32 Pipeline ....................................................................................... C-34 Plumbing ..................................................................................... C-36 Refrigeration ............................................................................... C-38 Roofing ........................................................................................ C-39 Sanitation System ...................................................................... C-42 Sheet Metal ................................................................................. C-43 Sign ............................................................................................. C-45 Solar ............................................................................................ C-46 Steel, Reinforcing ....................................................................... C-50 Steel, Structural ......................................................................... C-51 Swimming Pool ........................................................................... C-53 Tile (Ceramic and Mosaic) ........................................................ C-54 Tree and Palm ............................................................................ C-49 Warm-Air Heating, Ventilating and Air Conditioning ............ C-20 Water Conditioning .................................................................... C-55 Welding ....................................................................................... C-60 Well Drilling (Water) ................................................................. C-57

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.02§Sections Class C-2—Insulation and Acoustical Contractor

An insulation and acoustical contractor installs any insulating media and preformed architectural acoustical materials for the purpose of temperature and/or sound control.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.04§Sections Class C-4—Boiler, Hot-Water Heating and Steam Fitting Contractor

A boiler, hot-water heating and steam fitting contractor installs, services and repairs power boiler installations, hot-water heating systems and steam fitting, including fire-tube and water-tube steel power boilers and hot-water heating low pressure boilers, steam fitting and piping, fittings, valves, gauges, pumps, radiators, convectors, fuel oil tanks, fuel oil lines, chimneys, flues, heat insulation and all other equipment, including solar heating equipment, associated with these systems.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.05§Sections Class C-5—Framing and Rough Carpentry Contractor

A framing and rough carpentry contractor performs any form work, framing or rough carpentry necessary to construct framed structures; installs or repairs individual components of framing systems and performs any rough carpentry or associated work, including but not limited to the construction or installation of: sub-flooring, siding, exterior staircases and railings, overhead doors, roof decking, truss members, and sheathing.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.06§Sections Class C-6—Cabinet, Millwork and Finish Carpentry Contractor

A cabinet, millwork and finish carpentry contractor makes cabinets, cases, sashes, doors, trims, nonbearing partitions and other items of “finish carpentry’’ by cutting, surfacing, joining, gluing and fabricating wood or other products to provide a functional surface. This contractor also places, erects, and finishes such cabinets and millwork in structures.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.07§Sections Class C-7—Low Voltage Systems Contractor

A communication and low voltage contractor installs, services and maintains all types of communication and low voltage systems which are energy limited and do not exceed 91 volts. These systems include, but are not limited to telephone systems, sound systems, cable television systems, closed-circuit video systems, satellite dish antennas, instrumentation and temperature controls, and low voltage landscape lighting. Low voltage fire alarm systems are specifically not included in this section.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.08§Sections Class C-8—Concrete Contractor

A concrete contractor forms, pours, places, finishes and installs specified mass, pavement, flat and other concrete work; and places and sets screeds for pavements or flatwork. This class shall not include contractors whose sole contracting business is the application of plaster coatings or the placing and erecting of steel or bars for the reinforcing of mass, pavement, flat and other concrete work.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.09§Sections Class C-9—Drywall Contractor

A drywall contractor lays out and installs gypsum wall board and gypsum wallboard assemblies including nonstructural metal framing members, and performs the taping and texturing operations including the applications of compounds that adhere to wall board to produce a continuous smooth or textured surface.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.10§Sections Class C-10—Electrical Contractor*

An electrical contractor places, installs, erects or connects any electrical wires, fixtures, appliances, apparatus, raceways, conduits, battery energy storage systems, photovoltaic solar energy systems or any part thereof, which generate, transmit, transform or utilize electrical energy in any form or for any purpose.

Effective date temporarily stayed at time of printing

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.11§Sections Class C-11—Elevator Contractor

An elevator contractor fabricates, erects, installs and repairs elevators, including sheave beams, motors, sheaves, cable and wire rope, guides, cab, counterweights, doors (including sidewalk elevator doors), automatic and manual controls, signal systems, and all other devices and equipment associated with the safe and efficient installation and operation of electrical, hydraulic and manually operated elevators.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.12§Sections Class C-12—Earthwork and Paving Contractors

An earthwork and paving contractor digs, moves, and places material forming the surface of the earth, other than water, in such a manner that a cut, fill, excavation, grade, trench, backfill, or tunnel (if incidental thereto) can be executed, including the use of explosives for these purposes. This classification includes the mixing, fabricating and placing of paving and any other surfacing materials.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.13§Sections Class C-13—Fencing Contractor

A fencing contractor constructs, erects, alters, or repairs all types of fences, corrals, runs, railings, cribs, game court enclosures, guard rails and barriers, playground game equipment, backstops, posts, flagpoles, and gates, excluding masonry walls.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.15§Sections Class C-15—Flooring and Floor Covering Contractors

A flooring and floor covering contractor prepares any surface for the installation of flooring and floor coverings, and installs carpet, resilient sheet goods, resilient tile, wood floors and flooring (including the finishing and repairing thereof), and any other materials established as flooring and floor covering material, except ceramic tile.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.16§Sections Class C-16—Fire Protection Contractor

A fire protection contractor lays out, fabricates and installs all types of fire protection systems; including all the equipment associated with these systems, excluding electrical alarm systems.

(Authority cited: Section 7008 and 7059 of the Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.17§Sections Class C-17—Glazing Contractor

A glazing contractor selects, cuts, assembles and/or installs all makes and kinds of glass, glass work, mirrored glass, and glass substitute materials for glazing; executes the fabrication and glazing of frames, panels, sashes and doors; and/or installs these items in any structure.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.20§Sections Class C-20—Warm-Air Heating, Ventilating and Air-Conditioning Contractor

A warm-air heating, ventilating and air-conditioning contractor fabricates, installs, maintains, services and repairs warm-air heating systems and water heating heat pumps, complete with warm-air appliances; ventilating systems complete with blowers and plenum chambers; air-conditioning systems complete with air-conditioning unit; and the ducts, registers, flues, humidity and thermostatic controls and air filters in connection with any of these systems. This classification shall include warm-air heating, ventilating and air-conditioning systems which utilize solar energy.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7026.1, 7058 and 7059, Business and Professions Code.)

Section 832.21§Sections Class C-21—Building Moving/Demolition Contractor

A building moving/demolition contractor raises, lowers, cribs, underpins, demolishes and moves or removes structures, including their foundations. This classification does not include the alterations, additions, repairs or rehabilitation of the permanently retained portions of such structures.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.22§Sections Class C–22—Asbestos Abatement Contractor

(a) An asbestos abatement contractor performs abatement, including containment, encapsulation, or removal, and disposal of asbestos containing construction materials, as defined in Section 6501.8 of the Labor Code, in and on buildings and structures. All work performed and all documentation prepared by an asbestos abatement contractor shall be done in accordance with regulations and requirements of the Division of Occupational Safety and Health (DOSH) of the Department of Industrial Relations.

(b) The Board shall not issue an asbestos abatement contractor license unless the applicant or contractor is duly registered with DOSH pursuant to Section 6501.5 of the Labor Code or has an active application for registration in process with DOSH. All holders of the C-22—asbestos abatement contractor classification shall have completed DOSH registration training requirements, as contained in Title 8, California Code of Regulations, Section 1529.

(c) Within 90 days after the asbestos abatement contractor license is issued, the contractor shall submit to the Board proof that he or she is duly registered with DOSH pursuant to Section 6501.5 of the Labor Code. No asbestos abatement work shall be performed nor documentation prepared until the contractor has submitted proof of his or her DOSH registration to the Board. Failure of a licensee to provide proof of current registration with DOSH within 90 days after issuance shall result in the automatic suspension of the license or removal of the C-22—asbestos abatement contractor classification at the end of the 90 days.

(d) Every applicant for the C-22—asbestos abatement contractor classification must have had, within the last 10 years immediately preceding the filing of the application, not less than four years of experience performing asbestos abatement duties as a journeyman, foreman, supervising employee, or contractor working for or as any of the following:

(1) A licensed contractor who holds the C-22—asbestos abatement contractor classification or the asbestos certification, as defined in Section 7058.5 of the Code, and DOSH registration;

(2) A contractor who provides asbestos abatement services and is licensed in another state or federal jurisdiction;

(3) A utility company operating under the laws of a state or federal regulatory agency;

(4) A division of a state or the federal government; or

(5) The armed forces of the United States.

(e) The Board shall require as a condition precedent to the renewal of an asbestos abatement contractor license that the licensee have on file proof of current registration with DOSH pursuant to Section 6501.5 of the Labor Code.

(f) This classification does not include any addition to or alteration, repair, or rehabilitation of the permanently retained portions of such buildings and structures. Hazardous substance removal and remediation, as defined in Section 7058.7 of the Code, are specifically not included in this classification.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058, 7058.5, 7058.7 and 7059, Business and Professions Code; and Sections 6501.5 and 6501.8, Labor Code.)

Section 832.23§Sections Class C-23—Ornamental Metal Contractor

An ornamental metals contractor assembles, casts, cuts, shapes, stamps, forges, welds, fabricates and installs, sheet, rolled and cast, brass, bronze, copper, cast iron, wrought iron, monel metal, stainless steel, steel, and/or any other metal for the architectural treatment and ornamental decoration of structures. This classification does not include the work of a sheet metal contractor.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.27§Sections Class C-27—Landscaping Contractor

A landscape contractor constructs, maintains, repairs, installs, or subcontracts the development of landscape systems and facilities for public and private gardens and other areas which are designed to aesthetically, architecturally, horticulturally, or functionally improve the grounds within or surrounding a structure or a tract or plot of land. In connection therewith, a landscape contractor prepares and grades plots and areas of land for the installation of any architectural, horticultural and decorative treatment or arrangement.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.28§Sections Class C-28—Lock and Security Equipment Contractor

A lock and security equipment contractor evaluates, sets up, installs, maintains and repairs all doors and door assemblies, gates, locks and locking devices, panic and fire rated exit devices, manual and automatic operated gate and door closures and releases, jail and prison locking devices and permanently installed or built in safes and vaults. This classification includes but is not limited to master key systems, metal window guards, security doors, card activated and electronic access control systems for control equipment, motion and other types of detectors and computer systems for control and audit of control systems and other associated equipment. Fire alarm systems are specifically not included in this section.

(Authority Cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.29§Sections Class C-29—Masonry Contractor

A masonry contractor installs concrete units and baked clay products; concrete, glass and clay block; natural and manufactured stone; terra cotta; and fire brick or other material for refractory work. This classification includes the fabrication and installation of masonry component units for structural load bearing and non-load bearing walls for structures and fences installed with or without mortar; ceramic veneer (not tile) and thin brick that resembles full brick for facing; paving; and clear waterproofing, cleaning and caulking incidental to masonry construction.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.31§Sections Class C-31—Construction Zone Traffic Control Contractor

A construction zone traffic control contractor prepares or removes lane closures, flagging or traffic diversions, utilizing portable devices, such as cones, delineators, barricades, sign stands, flashing beacons, flashing arrow trailers, and changeable message signs, on roadways, including, but not limited to, public streets, highways, or any public conveyance.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.32§Sections Class C-32—Parking and Highway Improvement Contractor

A parking and highway improvement contractor applies and installs protective coatings, vehicle stops, guard rails and mechanical devices, directional lines, buttons, markers, signs and arrows on the horizontal surface of any game court, parking facility, airport, highway or roadway constructed of concrete, asphalt or similar material. This classification includes the surface preparatory work necessary for the application of protective coatings but does not include the re-paving of these surfaces.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.33§Sections Class C-33—Painting and Decorating Contractors

A painting and decorating contractor prepares by scraping, sandblasting or other means and applies any of the following: paints, papers, textures, fabrics, pigments, oils, turpentines, japans, driers, thinners, varnishes, shellacs, stains, fillers, waxes, adhesives, water and any other vehicles, mediums and materials which adhere by evaporation and may be mixed, used and applied to the surfaces of structures and the appurtenances thereto for purposes of decorating, protecting, fireproofing and waterproofing.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.34§Sections Class C-34—Pipeline Contractor

A pipeline contractor fabricates and installs pipelines for the conveyance of fluids, such as water, gas, or petroleum, or for the containment or protection of any other material, including the application of protective coatings or systems and the trenching, boring, shoring, backfilling, compacting, paving and surfacing necessary to complete the installation of such pipelines.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.35§Sections Class C-35—Lathing and Plastering Contractor

(a) A lathing and plastering contractor coats surfaces with a mixture of sand, gypsum plaster, quick-lime or hydrated lime and water, or sand and cement and water, or a combination of such other materials that create a permanent surface coating, including coatings for the purpose of soundproofing and fireproofing. These coatings are applied with a plasterer’s trowel or sprayed over any surface which offers a mechanical means for the support of such coating, and will adhere by suction. This contractor also installs lath (including metal studs) or any other material prepared or manufactured to provide a base or bond for such coating.

(b) A lathing and plastering contractor also applies and affixes wood and metal lath, or any other material prepared or manufactured to provide key or suction bases for the support of plaster coatings. This classification includes the channel work and metal studs for the support of metal or any other lathing material and for solid plaster partitions.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.36§Sections Class C-36—Plumbing Contractor

A plumbing contractor provides a means for a supply of safe water, ample in volume and of suitable temperature for the purpose intended and the proper disposal of fluid waste from the premises in all structures and fixed works. This classification includes but is not limited to:

(a) Complete removal of waste from the premises or the construction and connection of on-site waste disposal systems;

(b) Piping, storage tanks and venting for a safe and adequate supply of gases and liquids for any purpose, including vacuum, compressed air and gases for medical, dental, commercial and industrial uses;

(c) All gas appliances, flues and gas connections for all systems including suspended space heating units. This does not include forced warm air units;

(d) Water and gas piping from the property owner’s side of the utility meter to the structure or fixed works;

(e) Installation of any type of equipment to heat water, or fluids, to a temperature suitable for the purposes listed in this section, including the installation of solar equipment for this purpose; and

(f) The maintenance and replacement of all items described above and all health and safety devices such as, but not limited to, gas earthquake valves, gas control valves, back flow preventors, water conditioning equipment and regulating valves.

(Authority Cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.38§Sections Class C-38—Refrigeration Contractor

A refrigeration contractor constructs, fabricates, erects, installs, maintains, services and repairs refrigerators, refrigerated rooms, and insulated refrigerated spaces, temperature insulation, air-conditioning units, ducts, blowers, registers, humidity and thermostatic controls for the control of air, liquid, and/or gas temperatures below fifty degrees Fahrenheit (50°), or ten degrees Celsius (10°).

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7026.1, 7058 and 7059, Business and Professions Code.)

Section 832.39§Sections Class C-39—Roofing Contractor

A roofing contractor installs products and repairs surfaces that seal, waterproof and weatherproof structures. This work is performed to prevent water or its derivatives, compounds or solids from penetrating such protection and gaining access to material or space beyond. In the course of this work, the contractor examines and/or prepares surfaces and uses the following material: asphaltum, pitch, tar, felt, glass fabric, urethane foam, metal roofing systems, flax, shakes, shingles, roof tile, slate or any other roofing, waterproofing, weatherproofing or membrane material(s) or a combination thereof.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.42§Sections Class C-42—Sanitation System Contractor

A sanitation system contractor fabricates and installs cesspools, septic tanks, storm drains, and other sewage disposal and drain structures. This classification includes the laying of cast-iron, steel, concrete, vitreous and non-vitreous pipe and any other hardware associated with these systems.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.43§Sections Class C-43—Sheet Metal Contractor

A sheet metal contractor selects, cuts, shapes, fabricates and installs sheet metal such as cornices, flashings, gutters, leaders, pans, kitchen equipment, duct work (including insulation, patented chimneys, metal flues, metal roofing systems and any other installations requiring sheet metal).

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.45§Sections Class C-45—Sign Contractor

A sign contractor fabricates, installs, and erects electrical signs, including the wiring of such electrical signs, and non-electrical signs, including but not limited to: post or pole supported signs, signs attached to structures, painted wall signs, and modifications to existing signs.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.46§Sections Class C-46—Solar Contractor*

(a) A solar contractor installs, modifies, maintains, and repairs thermal and photovoltaic solar energy systems. A licensee classified in this section shall not undertake or perform building or construction trades, crafts, or skills, except when required to install a thermal or photovoltaic solar energy system.

(b) For the purposes of this section, a battery energy storage system, as defined in section 810, shall not be considered part of a photovoltaic solar energy system or required to install a photovoltaic solar energy system. Except as provided in subdivision (c), a licensee classified in this section shall not install, connect, modify, maintain, or repair a battery energy storage system.

(c) For purposes of Section 7059 of the Code and this division, a licensee classified in this section may install a battery energy storage system as “incidental and supplemental” to the installation of a photovoltaic solar energy system if the battery energy storage system does not exceed a rating of 80 kilowatt-hours (kWh).

Effective date temporarily stayed at time of printing

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.47§Sections Class C-47—General Manufactured Housing Contractor

(a) A general manufactured housing contractor installs, alters, repairs, or prepares for moving any type of manufactured home as defined in Section 18007 of the Health and Safety Code, any; type of mobilehome as defined in Section 18008 of the Health and Safety Code, and any type of multifamily manufactured home as defined in Section 18008.7 of the Health and Safety Code, including the accessory buildings or structures, and the foundations. A manufactured home does not include any recreational vehicle, commercial coach, or factory-built housing as defined in Section 19971 of the Health and Safety Code.

(b) A general manufactured housing contractor may provide utility services on a single-family individual site placement. Utility services mean the connection of gas, water, sewer, and electrical utilities to the home.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7026.11, 7058 and 7059, Business and Professions Code.)

Section 832.49§Sections Class C-49—Tree and Palm Contractor

(a) A tree and palm contractor plants, maintains, and removes trees and palms. The duties include pruning, stump grinding, and tree, palm, or limb guying.

(b) Effective January 1, 2024, this regulation shall become operative.

(c) This regulation does not apply to, and a license shall not be required for, incidental pruning of trees or guying of planted trees and their limbs by a nurseryperson or incidental pruning of trees by a gardener as described in Section 7026.1 of the Code.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7026.1, 7058 and 7059, Business and Professions Code.)

Section 832.50§Sections Class C-50—Reinforcing Steel Contractor

A reinforcing steel contractor fabricates, places and ties steel mesh or steel reinforcing bars (rods), of any profile, perimeter, or cross-section, that are or may be used to reinforce concrete structures.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.51§Sections Class C-51—Structural Steel Contractor

A structural steel contractor fabricates and erects structural steel shapes and plates, of any profile, perimeter or cross-section, that are or may be used as structural members for buildings and structures, including the riveting, welding, rigging, and metal roofing systems necessary to perform this work.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.53§Sections Class C-53—Swimming Pool Contractor

A swimming pool contractor constructs swimming pools, spas or hot tubs, including installation of solar heating equipment using those trades or skills necessary for such construction.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.54§Sections Class C-54—Tile Contractors (Ceramic and Mosaic)

A ceramic and mosaic tile contractor prepares surfaces as necessary and installs glazed wall, ceramic, mosaic, quarry, paver, faience, glass mosaic and stone tiles; thin tile that resembles full brick, natural or simulated stone slabs for bathtubs, showers and horizontal surfaces inside of buildings, or any tile units set in the traditional or innovative tile methods, excluding hollow or structural partition tile.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.55§Sections Class C-55—Water Conditioning Contractor

A water conditioning contractor installs water conditioning equipment with the use of only such pipe and fittings as are necessary to connect the water conditioning equipment to the water supply system and to by-pass all those parts of the water supply system within the premises from which conditioned water is to be excluded.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.57§Sections Class C-57—Well Drilling Contractor

A well drilling contractor installs and repairs water wells and pumps by boring, drilling, excavating, casing, cementing and cleaning to provide a supply of uncontaminated water.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7026.3, 7058 and 7059, Business and Professions Code.)

Section 832.60§Sections Class C-60—Welding Contractor

A welding contractor causes metals to become permanently attached, joined and fabricated by the use of gases and electrical energy, which creates temperatures of sufficient heat to perform this work.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.61§Sections Classification C-61—Limited Specialty

(a) Limited specialty is a specialty contractor classification limited to a field and scope of operations of specialty contracting for which an applicant is qualified other than any of the specialty contractor classifications listed and defined in this article.

(b) An applicant classified and licensed in the classification Limited Specialty shall confine activities as a contractor to that field or fields and scope of operations set forth in the application and accepted by the Registrar or to that permitted by Section 831.

(c) Upon issuance of a C-61 license, the Registrar shall endorse upon the face of the original license certificate the field and scope of operations in which the licensee has demonstrated qualifications.

(d) A specialty contractor, other than a C-61 contractor, may perform work within the field and scope of the operations of Classification C-61, provided the work is consistent with established usage and procedure in the construction industry and is related to the specialty contractor’s classification.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 832.62§Sections Solar System Work Within Scope of Class A, Class B, and Class C-61 (Swimming Pool Maintenance)

(a) The phrase “in connection with fixed works requiring specialized engineering knowledge and skill” in Section 7056 of the Business and Professions Code shall include but not be limited to an active solar energy system.

(b) An active solar energy system constitutes use of more than two unrelated building trades or crafts within the meaning of Section 7057 of the Business and Professions Code.

(c) C-61 (Swimming Pool Maintenance Contractors) currently holding the SC-44 supplemental solar classification may continue to perform solar work authorized by Class SC-44 until one year after the implementation of the C-46 Solar Classification. Thereafter, classification C-61 (Swimming Pool Maintenance) is authorized to repair active solar heating systems for swimming pools.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7056, 7057 and 7058, Business and Professions Code.)

Section 833§Sections Asbestos Classification and Certification Limitations and Examination Requirement

(a) The C-22—asbestos abatement contractor classification shall operate as a stand-alone specialty contractor classification for asbestos abatement work, notwithstanding any other classification held by the licensed contractor.

(b) No general building contractor, as defined in Section 7057 of the Code, shall contract for any project that includes asbestos abatement work unless the general building contractor holds the C-22—asbestos abatement contractor classification or the asbestos certification, as defined in Section 7058.5 of the Code, and DOSH registration or unless the general building contractor subcontracts with an appropriately licensed contractor.

(c) The asbestos certification, as defined in Section 7058.5 of the Code, shall operate in conjunction with other classification(s) held by the licensed contractor. No licensed contractor who holds the asbestos certification shall contract for any project that includes asbestos abatement work in a trade for which the contractor is not licensed, unless the licensee also holds the C-22—asbestos abatement contractor classification.

(d) The Registrar may waive the trade examination, pursuant to Section 7065.3 of the Code, for the C-22—asbestos abatement contractor classification for a licensed contractor who holds the asbestos certification, as defined in Section 7058.5 of the Code, upon application and conclusive showing by the licensee that he or she possesses not less than four years journey-level experience in the C-22—asbestos abatement contractor classification within the last 10 years immediately preceding the filing of the application. The licensee shall have obtained the asbestos certification after having passed the written asbestos certification examination and shall have held the asbestos certification in active and good standing throughout the four-year experience period at a minimum.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7057, 7058, 7058.5, 7059 and 7065.3, Business and Professions Code.)

Section 834§Sections Limitation of Classification

(a) A licensee classified as a general engineering contractor shall operate only within those areas defined in Section 7056 of the Code.

(b) A licensee classified as a general building contractor, as defined in Section 7057 of the Code, shall take a prime contract or subcontract only as authorized by Section 7057.

(c) A licensee classified as a specialty contractor, as defined in Section 7058 of the Code, shall not act in the capacity of a contractor in any classification other than one in which he/she is classified except on work incidental or supplemental to the performance of a contract in a classification in which any contractor is licensed by the Board.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7056, 7057, 7058 and 7059, Business and Professions Code.)

Section 840§Sections Written Examinations Required of All Applicants

Except as provided in Section 7065.1 of the Code, an applicant, including an applicant for an additional classification or classifications, must pass the written examination prescribed by the Registrar. No oral examination shall be given to any applicant. The reading of the examination instructions or questions or the explanation of the wording or intent of any of the questions to an examinee by any Board personnel authorized to conduct examinations, or by any duly sworn translators, shall not be considered an oral examination.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7065 and 7068, Business and Professions Code.)

Section 841§Sections Elimination and Revision of Examination Questions

The Registrar shall, under the Board’s direction, prepare and revise the written examinations for contractors’ licenses. The Registrar shall replace, eliminate or change any examination question or answer thereto brought to his/her attention if, in the Registrar’s opinion, the question is misleading or unfair, or the approved answer is incorrect.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7011, 7065, 7065.05 and 7068, Business and Professions Code.)

Section 853§Sections Renewal Application Form

(a) The Registrar shall mail to each licensee, prior to the expiration of the license, a renewal form with complete instructions for renewal of the license.

(b) A renewal application and fee must be postmarked or hand delivered to the Board's headquarters office on or before the expiration date of the license. Failure to comply with the requirements of this subsection shall result in the renewal application being deemed delinquent.

(c) An incomplete renewal application shall be returned to the licensee by the Registrar with an explanation of the reasons for its rejection. The licensee shall resubmit the completed renewal application to the Board, postmarked or hand delivered to the Board's headquarters office on or before the expiration date of the license. Failure to comply with this subsection shall result in the expiration of the license as provided in Section 7140 of the Code.

(d) An expired license shall not be renewed until any accrued delinquency fee has been paid.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7137, 7140 and 7141, Business and Professions Code.)

Section 856§Sections Security in Lieu of Bond

(a) A certificate of deposit, submitted pursuant to Section 7071.12(a) of the code, shall:

(1) When filed in lieu of a contractor’s bond

(A) by an applicant, show the name style as set out on page one of the application.

(B) by a licensee, show the name style as currently recorded in the official files of the Board.

(2) When filed in lieu of a bond of qualifying individual, show the name style as in (1) above and the name of the responsible managing individual.

(3) Be made payable to the Contractors State License Board. The word “trustee” shall not be included.

(4) Be issued for a period of not less than one year.

(5) Be automatically renewable at each maturity date.

(6) Provide that any interest earned shall be paid to the depositor.

(b) Assignment of a savings and loan association investment certificate or share account, or of a credit union certificate for funds or share account shall be upon a form prescribed and approved by the Registrar.

(1) The form shall show:

(A) The assignment of the account to the board.

(B) The name style as prescribed in subsection (a) above.

(C) The current address of the applicant or licensee.

(D) The name and address of the savings and loan association or credit union having custody of such funds.

(E) A declaration signed by an officer of the savings and loan association or the credit union that it received written notice of the assignment. This declaration shall include the title of the officer signing it.

(F) A receipt for the assignment from the Board with direction to the savings and loan association or the credit union that the earnings on the assigned account or certificate shall be paid to the assignor.

(2) The assignment form shall be accompanied by the savings and loan association pass book or investment certificate, the credit union certificate for funds or share account pass book of the assignor which shall show the name of the depositor-investor, that of the licensee or applicant, and the responsible managing individual, if applicable, and the amount of the assignment required by law.

(c) Eligible bearer bonds submitted pursuant to Section 7071.12(c) of the code shall be delivered to a bank in Sacramento, California, which shall act as agent for the applicant, licensee or responsible managing employee. The bank shall deliver the bonds to the Treasurer of the State of California only on order of the Registrar or an employee designated by the Registrar.

(1) The Registrar shall prescribe and approve the forms for the deposit or withdrawal of bearer bonds.

(2) Interest coupons shall remain attached to bearer bonds deposited with the Treasurer until such bonds are permanently withdrawn from the depository, not be resubmitted for deposit.

(3) In order to insure that sufficient security is on deposit, the bid price of bearer bonds, as recorded in the bond securities listed on the Pacific Coast Stock Exchange or some other authoritative source on the first day of the month in which such bonds are submitted for deposit, shall be at least 25% in excess of the amount of the surety bond or cash deposit required to be submitted. The Registrar shall prescribe such procedures and forms, and issue such orders as necessary to accept and process any cash deposit submitted pursuant to Section 7071.12(d) of the code. Personal checks shall not be accepted as cash.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7071.5, 7071.6, 7071.8, 7071.9, 7071.10 and 7071.12, Business and Professions Code.)

Section 858§Sections Blanket Performance and Payment Bond Defined

(a) The purpose of these sections is to establish requirements for contractors seeking to obtain approval from the Registrar for a blanket performance and payment bond (hereafter referred to as “blanket bond”) as specified under the provisions of paragraph (a)(8) of Section 7159.5 of the Code.

(b) For the purposes of this Article, the term “blanket bond” means a single surety instrument, executed by an admitted surety that is conditioned for the payment in full of all claims that arise from the obligations created by a licensee under any contract that is subject to the provisions of Section 7159 of the Code (hereafter referred to as “home improvement contract”) and as set forth in Section 858.1 of this Article.

(c) For the purposes of this Article, the term “obligation” has the same meaning as set forth under Section 1427 of the Civil Code: “An obligation is a legal duty, by which a person is bound to do or not to do a certain thing.”

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7151, 7159 and 7159.5, Business and Professions Code.)

Section 858.1§Sections Blanket Performance and Payment Bond Requirements

(a) A blanket bond that is filed on behalf of a licensee to satisfy the provisions of Section 858 shall be underwritten for a dollar amount that is sufficient to cover one-hundred percent (100%) of the home improvement contracts for which the licensee has an obligation.

(b) Upon written request by a licensee, the Registrar is authorized to approve a blanket bond that is capped according to the schedule listed under subsection (c) provided the following conditions are met:

(1) The licensee, or the parent company of the licensee, is required to submit annual reports (Form 10-K) to the United States Securities and Exchange Commission (U.S. SEC).

(2) Upon the filing of a request that the blanket bond be capped, a copy of the most recently filed Form 10-K shall be submitted to the Registrar. Thereafter, a copy of any Form 10-K report shall be submitted to the Registrar within 10 days of filing with the U.S. SEC.

(3) The net worth of the applicable firm shall, initially and annually thereafter, be not less than 10 times the sum of the blanket bond as determined by the Registrar. Each net worth calculation shall be applicable to the period for which the most recent Form 10-K report was submitted to the U.S. SEC.

(c) The blanket bonds for which a request has been submitted under subsection (b) shall comply with the following schedule:

(1) If a licensee, or the parent company of a licensee, is classified as a “large accelerated filer” by the U.S. SEC, the amount of the blanket bond shall be $10 million.

(2) If a licensee, or the parent company of a licensee, is classified as an “accelerated filer” by the U.S. SEC, the amount of the blanket bond shall be $5 million.

(3) If a licensee, or the parent company of a licensee, is classified as a “non-accelerated filer” by the U.S. SEC, the amount of the blanket bond shall be $1 million.

(d) A licensee who is granted approval of a blanket bond pursuant to subsections (b) and (c) is not subject to the biennial financial reporting requirement specified under Section 858.4(a)(2). However, the qualifier’s certification statement must be submitted biennially as specified under that section.

(e) For the purpose of executing the qualifier’s certification statement required under Section 858.2(a)(4), the provisions of subsections (a), (b), and (c) of Section 858.1 shall be referenced collectively as “the 100% rule.” On the date that this section becomes effective, any licensee that has a blanket bond on file with the Board that fails to comply with the 100% rule shall achieve compliance not later than 90 days after the effective date of the section. The Registrar is authorized to rescind the approval of the blanket bond in accordance with the provisions of Section 858.8 of this Article if the licensee fails to comply with any provision of this section.

(f) The form of the blanket bond specified under this section is subject to the approval of the Registrar and shall conform to the following with regard to content: This bond shall be filed with the Registrar of Contractors State of California Contractors State License Board Surety Code: __________ Bond No.: _____________ License No.: ___________ BLANKET PERFORMANCE AND PAYMENT BOND (Business and Professions Code Section 7159.5) The term of this bond is ____________ to __________________________. KNOW ALL BY THESE PRESENTS: That ________________________ (Business Name as Shown on the License) whose address for service is ________________________________________________________________ (Street Address) (City) (State) (Zip Code) as Principal, and ________________________________________________ (Name of Surety) a corporation organized under the laws of the State of __________ and authorized to transact a general surety business in the State of California, as Surety, are held and firmly bound unto each owner or tenant of a residence or dwelling unit as the beneficiaries with whom the Principal, as of the date of this bond and thereafter, enters into a home improvement contract as defined in Section 7151.2 of the Business and Professions Code for repairing, remodeling, altering, converting, or modernizing such building or structure; and the aggregate contract price specified in one or more improvement contracts including all labor services and materials to be furnished by the Principal as the contractor exceeds the dollar amount prescribed in subdivision (b) of Section 7759. of the Business and Professions Code in the just and full sum of the amount of each individual contract for which sum, well and truly to be paid, we bind ourselves, our heirs, executors, successors, and assigns, jointly and severally, firmly by these presents. blanket performance and payment bond is issued in the amount of _______________________________________________($____________). (Bond Dollar Amount) THE CONDITION OF THE OBLIGATION IS SUCH, That, WHEREAS, Sections 7159 and 7159.5 of the Business and Professions Code provide for bonding requirements for contractors entering into contracts covered by these provisions of law, AND, WHEREAS, the Principal desires to file a blanket guarantee to operate as security in accordance with Section 995.020 of the Code of Civil Procedure, to cover the performance and payment of all obligations resultant from such contracts in order to conduct business under the exemptions specified under paragraph (8) of subdivision (a) of Section 7159.5 of the Business and Professions Code. NOW THEREFORE, if the Principal shall well and truly perform and fulfill all the understandings, covenants, terms, conditions, and agreements of said contracts, and shall also well and truly perform and fulfill all the undertakings, covenants, terms, conditions, and agreements of any and all duly authorized modifications of said contracts; and if the Principal shall promptly make payments to all persons, whether or not in direct contractual relationship with Principal, supplying labor or material or both for the prosecution of the work provided in said contracts, then this obligation is to be void; otherwise, it is to remain in full force and effect as though separate bonds in the full amount of the contract price had been written on the individual contracts. PROVIDED, HOWEVER, this bond is issued subject to the following express conditions:

1. This bond may be cancelled by the Surety in accordance with the provisions of Sections 996.310 et seq. of the Code of Civil Procedure.

2. This bond shall be deemed continuous in form and shall remain in full force and effect and shall run concurrently with the license period for which the license is granted and shall continue beyond that period and every succeeding license period or periods for which said Principal may hold this license or until the effective date of rescission of the Registrar’s approval of the bond, after which liability hereunder shall cease in accordance with provisions of Section 996.360 of the Code of Civil Procedure.

3. This bond to become effective __________________________________ (Date)

4. Even though this bond may be in effect for more than one year, the Surety’s aggregate liability for all contracts covered hereunder shall in no event exceed the amount set forth above.

5. The Surety signing this bond is jointly and severally liable on the obligations of the bond, the obligations of the statutes providing for this bond, and the applicable provisions of the Code of Civil Procedure regarding bonds. ________________________________________________________________ (Name of Surety) (Address for Service) I declare under penalty of perjury under the laws of the State of California that I have executed the foregoing bond under an unrevoked power of attorney. I further declare that I have relied upon the “Qualifier’s Certification Statement” to determine that, as of the date of execution, the penal sum of this bond is a good faith valuation of the funds required to safeguard the financial interests of the beneficiaries relative to the obligations for which this bond is posted. Executed in ______________________, ______________ on ____________, (City and State) (Date) under the laws of the State of California. Certificate of Authority # ________________________________________ Signature of Attorney-in-Fact ____________________________________ Printed or Typed Name of Attorney-in-Fact _______________________ Address of Attorney-in-Fact _____________________________________ Telephone Number of Attorney-in-Fact (___) _______________________ Signature of Principal (Qualifier for the License) __________________ 13B-39 rev. 07/2021

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7151.2, 7159 and 7159.5, Business and Professions Code.)

Section 858.2§Sections Application for Approval of Blanket Performance and Payment Bond

(a) A licensee seeking approval of a blanket bond shall meet the applicable conditions specified under this Article and submit to the Board an Application for Approval of Blanket Performance and Payment Bond, form 13B-35 (rev. 9/2022), that includes the following information:

(1) The name and address of the licensee as listed on the license record and the license number.

(2) The name of every person listed on the license record of the applicant who, as specified under Section 7068 of the Code, is acting as a qualifier for the license.

(3) The reviewed year-end financial statements and a report prepared by a certified public accountant (CPA) duly licensed by the California Board of Accountancy or licensed by another state board of accountancy. The reviewed financial statements shall include supplemental information related to the liquidity ratios of the licensee's business and shall particularly include the current ratio and the quick ratio, the calculations for which are specified under subparagraphs (A) and (B) below. The review report, or a separate supplementary report, shall include an explanation that the information has been subject to the review of the CPA. The review report shall cover the two fiscal years immediately preceding application for approval of the blanket bond and should be prepared in accordance with the current Statements of Standards for Accounting and Review Services issued by the American Institute of Certified Public Accounts.

(A) Current ratio calculation: current assets; divided by current liabilities.

(B) Quick ratio calculation: current assets minus inventory; divided by current liabilities.

(4) A certification statement, signed under penalty of perjury by the qualifier for the license, that shall conform to the following language: QUALIFIER’S CERTIFICATION STATEMENT (Unless otherwise noted, all section references are to the California Business and Professions Code.) The undersigned declares that, in accordance with Sections 7068 and 7068.1 of the Code, they are a qualifier for the licensee identified below (hereafter referred to as “licensee”) and are responsible for exercising the direct supervision and control of the licensee's operations as is necessary to secure full compliance with the laws and regulations that are under the jurisdiction of the Contractors State License Board. As a qualifier of the licensee, the undersigned has reviewed sufficient financial information to execute this certification as it pertains to the licensee's home improvement sales and services that are subject to the home improvement contract requirements specified under Section 7159 of the Code. As of close of business on

(Date) ____________________, the blanket performance and payment bond (bond) number (Bond Number) ____________________ issued by (Name of Surety Company) ___________________________________ as Surety is, according to the qualifier's comprehension of the data derived from the licensee, in an aggregate amount that is sufficient to comply with the “100% rule” as specified in the provisions of Section 858.1 of Title 16, Division 8 of the California Code of Regulations. The undersigned also certifies that they will monitor the relevant business activity of the licensee, exercise due diligence to secure ongoing compliance with the 100% rule, and notify the Registrar within 30 days of the licensee's refusal, failure, or inability to comply with the 100% rule. The undersigned also certifies that, upon approval of the blanket bond by the Registrar, the contract forms that will be used by the licensee for all transactions that are subject to Section 7159 of the Code will contain a notice that informs the property owner that a blanket performance and payment bond is on file with the Registrar of Contractors, or in lieu thereof, a notice that clearly identifies the name and address of the Surety that has issued the blanket performance and payment bond. As a qualifying individual for the licensee, the undersigned declares under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration was executed on (Date) _______________ at (City and State) ______________________________, _____. _______________________________ ___________________ (Name of Licensee as it Appears on the License) (License Number) _______________________________ ___________________ (Printed Name of Qualifier) (Signature of Qualifier)

(b) A licensee shall be licensed in this state in an active status for not less than two years prior to submitting the application provided for by this section.

(c) Except as otherwise provided under this subsection, an application for approval of a blanket bond shall not be accepted for consideration if any member of the personnel of record of the licensee, or any home improvement salespersons registered to the licensee, was found to have been responsible for, participated in, or otherwise culpable relative to any legal action that is subject to disclosure under Section 7124.6(e)(2) or 7124.6(e)(3) of the Code, or is named on a license that is suspended pursuant to Section 7071.17 of the Code.

(1) Any person who, after the effective date of the most recent disciplinary order applicable to that individual, is listed on an active license for three consecutive years with no violations resulting in disciplinary action may make application as provided under this Article.

(d) The application shall be signed by the person qualifying on behalf of the licensee who has executed the qualifier's certification statement required under this section. In the case of a responsible managing employee qualifier, the application shall also be signed by the owner, partner, or current corporate officer.

(e) The application shall be accompanied by a blanket bond that complies with the provisions of Section 858.1 of this Article and is underwritten by a surety that has been admitted in the State of California.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7068, 7068.1, 7071.17, 7124.6, 7159 and 7159.5, Business and Professions Code.)

Section 858.3§Sections Minimum Standards for Blanket Performance and Payment Bond Approval—Cause for Denial

(a) For each of the year-end financial statements for which a report is required under Section 858.2, the following standards must be met in order to qualify for blanket bond approval:

(1) The quick ratio shall not be less than 1:1, or, in lieu thereof, the current ratio shall not be less than 2:1.

(b) In addition to any other cause for denial, the Registrar may deny or rescind approval of the blanket bond based on information in the reviewed report or the information contained in the supplemental information required under subparagraph (a)(3) of Section 858.2 if the information demonstrates the licensee will be unable to meet current liabilities.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7159.5, Business and Professions Code.)

Section 858.4§Sections Blanket Performance and Payment Bond Biennial Certification and Financial Reporting Requirements

(a) Except as otherwise provided under this Article, a licensee that maintains a blanket bond under this Article shall comply with the following:

(1) A certification statement as specified in Section 858.2 of this Article, signed under penalty of perjury by the member of the personnel of record who is listed as the qualifier for the license in accordance with Section 7068 of the Code, shall be submitted biennially to the Registrar as specified under subsection (b).

(2) With each application to renew the license for which the blanket bond has been posted, reviewed year-end financial statements and a report prepared in accordance with the provisions of Section 858.2(a)(3) shall be submitted to the Registrar as follows:

(A) If it has been one calendar year or more since the Registrar’s approval of the blanket bond, the licensee shall submit a copy of a review report and the accompanying financial statements covering the entire period that is subsequent to the approval, but not more than the two fiscal years immediately preceding the license renewal date.

(B) If it has been less than one calendar year since the Registrar’s initial approval of the blanket bond, the reviewed report required by this subsection shall be submitted at next renewal period that is more than one calendar year subsequent to the initial approval of the blanket bond.

(b) The due date for the qualifier’s certification statement and any reports required under this section shall coincide with the license renewal period of the license for which blanket bond approval has been granted. For each subsequent renewal cycle, the certification statement and reports of financial statements shall be submitted to the Registrar no later than the date the license is due to expire.

(c) The Registrar may rescind approval of the blanket bond based on information in the reviewed report or in the supplemental information that demonstrates the licensee’s business may not be able to meet its current liabilities.

(d) If a licensee fails to submit the certification statement or comply with the financial reporting requirements as specified by this section, the Registrar may rescind approval of the blanket bond in accordance with the provisions of Section 858.8 of this Article.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7068, 7068.1 and 7159.5, Business and Professions Code.)

Section 858.5§Sections Blanket Performance and Payment Bond Audit Authorization and Procedures

(a) The Registrar may order an audit of a licensee that has an approved blanket bond on file if he or she deems an audit is necessary to ensure that the sum for which the blanket bond has been filed is sufficient to protect the public.

(1) The Registrar shall provide a licensee with not less than 30 days written notification that an audit is to be conducted pursuant to this section. The notice shall specify the period to be covered by the audit and set a date for the audit to begin. The audit period shall not exceed the period that is specified for the retention of licensee records under Section 7111 of the Code. Delivery of the notice shall be by certified mail to the current business address of record listed on the license record. Upon written request, the Registrar may grant the licensee an additional 30 days to prepare for the audit.

(2) For any audit conducted pursuant to this section, the licensee shall, pursuant to the receipt of the audit notice, provide access to the licensee’s books, business records, and documents in accordance with the provisions of Section 7111 of the Code.

(b) Upon completion and review of the audit and all relevant information, the Registrar shall determine if the licensee is in compliance with the 100% rule specified under Section 858.1.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7111 and 7159.5, Business and Professions Code.)

Section 858.6§Sections Authorization and Procedures for Ordering the Amount of Blanket Performance and Payment Bond to Be Increased

(a) Pursuant to an audit conducted in accordance with Section 858.5 of this Article, the Registrar is authorized to order an increase in the dollar amount of the blanket bond to an amount that meets the requirements specified in Section 858.1 of this Article. The adjustment determination shall be based on the information contained in records of the licensee that are required to be made available for an audit as specified under this Article.

(b) An order to increase the sum of the blanket bond pursuant to this section shall be sent by certified and regular mail to the licensee’s address of record. The order shall include a notice that failure to increase the dollar amount of the blanket bond within 30 days of the date of the order is cause for rescission of approval of the blanket bond.

(c) If a licensee fails to comply within 30 days of the date of an order that is issued pursuant to this section, the Registrar shall rescind approval of the blanket bond in accordance with the provisions of Section 858.8 of this Article.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7159.5, Business and Professions Code.)

Section 858.7§Sections Maintenance of the Blanket Performance and Payment Bond

(a) In order for any licensee to maintain the Registrar’s approval of a blanket bond in accordance with this Article, all provisions of this section are applicable:

(1) No member of the personnel of record of the licensee, nor home improvement salesperson registered to the licensee, shall have been found to have been responsible for, participated in, or otherwise culpable relative to any acts or omissions that resulted in any discipline that is subject to disclosure under Section 7124.6(e)(2) or 7124.6(e)(3) of the Code. The approval of the blanket bond posted by a licensee found to be in violation of this section is subject to rescission in accordance with the provisions of Section 858.8 of this Article. In determining whether or not to rescind approval of the blanket bond for violations of this section, the Registrar shall give due consideration to protection of the public as set forth in Section 7000.6 of the Code.

(2) No member of the personnel of record of the licensee, nor home improvement salespersons registered to the licensee, shall be named on a license that is suspended pursuant to Section 7071.17 of the Code. The approval of the blanket bond posted by a licensee found to be in violation of this section is subject to rescission in accordance with the provisions of Section 858.8 of this Article. In determining whether or not to rescind approval of the blanket bond for violations of this section, the Registrar shall give due consideration to protection of the public as set forth in Section 7000.6 of the Code.

(3) Whenever any qualifier who has executed and filed the qualifier’s certification statement required under this Article disassociates from the licensee, a subsequent qualifier for the licensee shall complete, execute, and file the qualifier’s certification statement contained in the application form specified under Section 858.2 of this Article. The qualifier’s certification statement required by this paragraph must be filed within 90 days of the date that the former qualifier who executed the qualifier’s certification statement disassociated from the license, as noted on the official license record of the Board.

(4) The failure to file an acceptable qualifier’s certification statement within 90 days as specified under subdivision (3) of this subsection is cause for rescission of approval of the bond in accordance with the provisions of Section 858.8 of this Article. If a licensee files a written request prior to the date the qualifier’s certification statement is due, the Registrar may grant an additional 30 days within which to file the certification statement. The licensee’s request shall clearly state the reason(s) why additional time is needed to file the qualifier’s certification statement.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7000.6, 7071.17, 7124.6 and 7159.5, Business and Professions Code.)

Section 858.8§Sections Rescission of Blanket Performance and Payment Bond Approval

(a) The Registrar may rescind the approval of any blanket bond (also referenced as “approval rescission” under this section) if any provision or condition specified under this Article is not satisfied.

(b) To rescind the approval of a blanket bond, the Registrar shall send written notice by certified and regular mail to the licensee’s address of record that specifies the date of and the reasons for the Registrar’s decision to rescind approval of the blanket bond. When appropriate, the notice shall also contain the conditions that must be met to prevent the rescission.

(c) The rescission shall, as of the date specified, extinguish the licensee’s authorization to use the blanket bond in satisfaction of the provisions under subsection (a)(8) of Section 7159.5 of the Code.

(d) The licensee shall be given not less than 30 days notice prior to the effective date of the rescission of the blanket bond. Prior to the effective date of the rescission, the licensee may file a written appeal of the rescission of the blanket bond with the Registrar. A written appeal is considered timely if it is postmarked prior to the date the rescission would otherwise become effective. Where a rescission is not appealed timely, the blanket bond shall be rescinded on the effective date specified by the Registrar. If the rescission is appealed timely, the effective date of the rescission shall be delayed until a decision on the appeal is issued, and a notice regarding the appeal and the pending decision of the Registrar shall be posted as specified under subsection (b) of Section 858.9.

(e) Upon cancellation of the blanket bond, the Registrar’s approval shall be automatically rescinded effective on the date of the cancellation.

(f) Upon the effective date of the Registrar’s approval rescission, the licensee shall be subject to and comply with the provisions of subsections (a)(3), (4), and (5) of Section 7159.5 of the Code and shall, in addition to complying with all other requirements specified under Section 7159 of the Code, include the Mechanics’ Lien Warning disclosure as part of all home improvement contracts that are subject to that section.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7159 and 7159.5, Business and Professions Code.)

Section 858.9§Sections Posting of Blanket Performance and Payment Bond Information to License Records

(a) Upon approval of a blanket bond by the Registrar, regardless of the effective date of the blanket bond, the following information shall be posted to the public license record of the licensee named as principal on the blanket bond:

(1) A statement indicating that the licensee has an approved blanket performance and payment bond on file with the Board.

(2) The date that the blanket bond was approved.

(3) The number of the blanket bond.

(4) The dollar amount for which the blanket bond has been filed.

(5) The name and address of the surety company on the blanket bond.

(b) Whenever a licensee is notified of a decision to rescind the approval of the licensee’s blanket bond, the Registrar shall post a notice on the public license record indicating that the rescission is pending. The notice shall be posted to the license record no earlier than 5 calendar days and no later than 10 calendar days after the date that written notification of the rescission is sent to the licensee. If the rescission is appealed timely by the licensee, the Registrar shall also post a notice that an appeal has been filed and indicate that the decision to rescind the approval of the blanket bond is delayed pending the outcome of the licensee’s appeal.

(c) Upon rescission of approval of a blanket bond or its cancellation, the statement specified in paragraph (1) of subsection (a) shall be changed to indicate the disposition of the blanket bond and the effective date thereof. The information in paragraphs (2), (3), (4), and

(5) of subsection (a) shall remain on the license record for not less than five years after the date the blanket bond was rescinded or cancelled.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7159.5, Business and Professions Code.)

Section 860§Sections Penalty for Failure to Comply with Rules

Licensees and applicants for licenses shall comply with all rules and regulations of the Board and regulations issued by the Registrar. Violation of such rules and regulations shall constitute grounds for disciplinary action, or for the denial of a license.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7008, Business and Professions Code.)

Section 861§Sections “Advertising” Defined

As used in Section 7030.5 of the Code, the term “advertising” includes but is not limited to the following: any card, contract proposal, sign, billboard, lettering on vehicles registered in this or any other state, brochure, pamphlet, circular, newspaper, magazine, airwave or any electronic transmission, and any form of directory under any listing denoting “Contractor” or any word or words of a similar import or meaning requesting any work for which a license is required by the Contractors License Law.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7030.5, Business and Professions Code.)

Section 861.5§Sections Definition of “Structural Defect”

For the purpose of subdivision (b) of Section 7091 of the Code, “structural defect” is defined as meaning:

(1) A failure or condition that would probably result in a failure in the load bearing portions of a structure,

(2) which portions of the structure are not constructed in compliance with the codes in effect at the time for the location of the structure, provided that,

(3) such failure or condition results in the inability to reasonably use the affected portion of the structure for the purpose for which it was intended.

(Authority cited: Sections 7008, 7091, Business and Professions Code. Reference: Section 7091, Business and Professions Code.)

Section 863§Sections Public Access to Information

The Registrar shall establish a system whereby members of the public may obtain from board records information regarding complaints made against licensed contractors, their history of legal actions taken by the board, and license status, as hereafter specified. For purposes of this section, “complaint” means a written allegation which has been investigated and has been referred for legal action against the licensee. For purposes of this section, “legal action” means referral of the complaint for the issuance of a citation, accusation, statement of issues, or for the initiation of criminal action or injunctive proceedings.

(a) The Registrar shall maintain records showing the complaints received against licensees and, with respect to such complaints, shall make available to members of the public, upon request, the following information:

(1) The nature of all complaints on file against a licensee which have been investigated by a Deputy Registrar and referred for legal action against the licensee by the District Office. Information regarding complaints which are in the process of being screened, mediated, arbitrated or investigated shall not be disclosed.

(2) Such general cautionary statements as may be considered appropriate regarding the usefulness of complaint information to individual consumers in their selection of a contractor.

(3) Whenever complaint information is requested, the information disclosable under subsections (c) and (d) below shall also be released.

(b) If a complaint results in a legal action and is subsequently determined by the registrar, the Office of the Attorney General or a court of competent jurisdiction not to have merit, it shall be deleted from the complaint disclosure system.

(c) The Registrar shall maintain records showing a history of any legal actions taken by the board against all current license holders and shall make available to members of the public, upon request, all the following information:

(1) Whether any current license holder has ever been disciplined by the registrar and, if so, when and for what offense; and

(2) Whether any current licensee has ever been cited, and, if so, when and for what offense, and, whether such citation is on appeal or has been complied with;

(3) Whether any current license holder is named as a respondent in any currently pending disciplinary or legal action.

(d) The Registrar shall maintain records showing certain licensing and bonding information for all current license holders and shall make available to members of the public, upon request, all the following information regarding current license holders:

(1) The name of the licensee as it appears in the board’s records; and

(2) The license number; and

(3) The classification(s) held; and

(4) The address of record; and

(5) The personnel of the licensee; and

(6) The date of original licensure; and

(7) Whether a bond or cash deposit is maintained and, if so, its amount; and

(8) If the licensee maintains a bond, the name and address of the bonding company and the bond’s identification number, if any.

(e) Limitation of access to information. Further, the Registrar may set reasonable limits upon the number of requests for information responded per month from any one requestor.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7124.5 and 7124.6, Business and Professions Code.)

Section 864§Sections Continuance of License Under Section 7068.2

When a notice of disassociation of the responsible managing officer, responsible managing employee, responsible managing member, or responsible managing manager is given within the time and in the manner prescribed by Section 7068.2 of the code, the license shall remain in force for a period of 90 days from the date of such disassociation.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7068.2, Business and Professions Code.)

Section 865§Sections Continuance of License Under Section 7076

(a) An application for the continuation of a business under an existing license may be submitted to the Registrar within 90 days of:

(1) the death of a person licensed as an individual,

(2) the death or the disassociation of a partner of a licensed partnership, or

(3) the death of an individual member or the disassociation of any entity of a licensed joint venture. If the application is approved by the Registrar, the license shall remain in force for a period of up to one year from the date of death or disassociation.

(b) The Registrar may approve an extension to the one-year provision outlined in subsection (a) if additional time is necessary to complete projects contracted for or commenced before the disassociation or death.

(c) A license so extended is subject to all the provisions of the Contractors License Law including those relating to renewal and bond requirements.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7076, Business and Professions Code.)

Section 867§Sections Procedure to Reactivate an Inactive License

(a) A reactivation of an inactive license shall be effective on the date on which an acceptable form is received by the Registrar, on the date on which the full renewal fee for an active license provided for in Section 7137 of the Code is paid, or on the date, if any, requested by the licensee, whichever last occurs.

(b) When an inactive license is reactivated, the Registrar shall issue to the licensee an active pocket license.

(c) The name, address, license number and classification of the reactivated licensee shall be posted publicly as prescribed by the Registrar.

(Authority cited: Section 7008, Business and Professions Code. Reference: Section 7076.5, Business and Professions Code.)

Section 868§Sections Criteria to Aid in Determining if Crimes, Professional Misconduct, or Acts Are Substantially Related to Qualifications, Functions, or Duties of a Licensee or Registrant.

(a) For the purposes of denial, suspension, or revocation of a license or registration pursuant to Section 141, Division 1.5 (commencing with Section 475), or Sections 7073 or 7123 of the Code, a crime, professional misconduct, or act shall be considered to be substantially related to the qualifications, functions, or duties of a licensee or registrant (under Division 3, Chapter 9 of the Code) if it evidences present or potential unfitness of an applicant, licensee, or registrant to perform the functions authorized by the license or registration in a manner consistent with the public health, safety, and welfare.

(b) In making the substantial relationship determination required under subdivision (a) for a crime, the Board or Registrar shall consider the following criteria:

(1) The nature and gravity of the offense,

(2) The number of years elapsed since the date of the offense, and

(3) The nature and duties of a contractor or home improvement salesperson.

(c) For purposes of subdivision (a), substantially-related crimes, professional misconduct, or acts shall include, but are not limited to, the following:

(1) Any violation of the provisions of Chapter 9 of Division 3 of the Code or other state or federal laws governing contractors or home improvement salespersons.

(2) Failure to comply with the provisions of the California Code of Regulations, Title 16, Division 8.

(3) Crimes, professional misconduct, or acts involving dishonesty, fraud, deceit, or theft with the intent to substantially benefit oneself or another or to substantially harm another.

(4) Crimes, professional misconduct, or acts involving physical violence against persons.

(5) Crimes, professional misconduct, or acts that indicate a substantial or repeated disregard for the health, safety, or welfare of the public.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 141, 480, 481, 490, 493, 7066, 7069, 7073, 7090, 7123 and 7124, Business and Professions Code.)

Section 868.1§Sections Criteria to Aid in Determining if Financial Crimes Are Directly and Adversely Related to Fiduciary Qualifications, Functions, or Duties of a Licensee or Registrant for the Purpose of Considering Denials of Applications.

For the purpose of determining whether there are grounds to deny a license or registration to an applicant who has been convicted of a financial crime currently classified as a felony pursuant to Section 480 of the Code, the crime shall be considered to be directly and adversely related to the fiduciary qualifications, functions, or duties of a licensee or registrant if it involves dishonesty, fraud, deceit, or theft that resulted in: (i) direct financial benefit to the applicant or another person or entity, (ii) direct financial harm to another person or entity, or (iii) an attempt to obtain direct financial benefit or cause direct financial harm to another person or entity. The felony financial crimes shall include, but not be limited to, the following:

(a) Crimes involving the acquisition or provision of false, altered, forged, counterfeit, or fraudulent document(s), or the acquisition or provision of false or fraudulent statement(s).

(b) Crimes involving the use of personal identifying information for an unlawful purpose, including for the purpose of illegally obtaining money, credit, goods, services, real property, or medical information of another person (also known as identify theft).

(c) Crimes involving stolen property, embezzlement, grand theft, larceny, burglary, monetary transactions in property derived from a specified unlawful activity (also known as money laundering), or crimes related to obtaining money, labor, or property under false or fraudulent pretenses.

(d) Crimes involving an attempt or conspiracy to commit such crimes listed in subsections (a), (b), or (c).

(e) For the purposes of this section, “personal identifying information” has the meaning set forth in Penal Code section 530.55.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7.5, 480, 7069, 7073, 7090 and 7124, Business and Professions Code.)

Section 869§Sections Criteria for Rehabilitation

(a) When considering the denial, suspension, or revocation of a license or registration pursuant to Division 1.5 (commencing with Section 475) of the Code on the ground that the individual has been convicted of a crime, the Board or Registrar shall consider whether the applicant, licensee, or registrant made a showing of rehabilitation if the applicant, licensee, or registrant completed the criminal sentence at issue without a violation of parole or probation. In making this determination, the Board or Registrar shall consider the following criteria:

(1) The nature and gravity of the crime(s);

(2) The length(s) of the applicable parole or probation period(s);

(3) The extent to which the applicable parole or probation period was shortened or lengthened, and the reason(s) the period was modified;

(4) The terms or conditions of parole or probation, and the extent to which they bear on the applicant's rehabilitation; and

(5) The extent to which the terms or conditions of parole or probation were modified, and the reason(s) for modification.

(b) If subsection (a) is inapplicable, or the Board or Registrar determines that an applicant, licensee, or registrant did not make a showing of rehabilitation based on the criteria in subsection (a), the Board or Registrar shall apply the following criteria in evaluating an applicant's, licensee's, or registrant's rehabilitation:

(1) The Board or Registrar shall find that an applicant, licensee, or registrant made a showing of rehabilitation if, after considering the following criteria and the provisions of subsection (b)(2), the Board or Registrar finds that the individual is rehabilitated:

(A) Denial Based on Felony Convictions Within Seven Years of Application When considering the denial of a license or registration, the Board or Registrar may consider the applicant rehabilitated if the applicant was convicted of a felony within the preceding seven (7) years from the date of application that is substantially related to the qualifications, functions, or duties of a licensee or registration as defined in Section 868, and five (5) years have passed from the time of the applicant's release from incarceration or completion of probation if no incarceration was imposed, without the occurrence of additional substantially-related criminal activity, professional misconduct, acts, or omissions that also could be grounds for denial. This subsection does not apply to any crimes listed in subsection (b)(1)(B).

(B) Denial Based on Serious Felonies, Felonies Requiring Sex Offender Registration, or Felony Financial Crimes Directly and Adversely Related to the Qualifications, Functions, or Duties of a Licensee or Registrant When considering the denial of a license or registration on the ground that the applicant was convicted of a crime identified in Section 480(a)(1)(A) of the Code or a felony financial crime as defined in Section 868.1, the Board or Registrar may consider an applicant rehabilitated if seven (7) years have passed from the time of the applicant's release from incarceration or completion of probation if no incarceration was imposed, and the applicant committed no additional substantially-related criminal activity, professional misconduct, acts, or omissions that also could be grounds for denial.

(C) Discipline Based on Felony Convictions When considering the suspension or revocation of a license or registration, the Board or Registrar may consider a licensee or registrant rehabilitated if the licensee or registrant was convicted of a felony that is substantially related to the qualifications, functions, or duties of a licensee or registrant as defined in Section 868, and seven (7) years have passed from the time of release from incarceration or completion of probation if no incarceration was imposed, without the occurrence of additional substantially-related criminal activity, acts, or omissions that also could be grounds for suspension or revocation.

(D) Denial or Discipline Based on Misdemeanor Convictions When considering the denial, suspension, or revocation of a license or registration, the Board or Registrar may consider an applicant, licensee, or registrant rehabilitated if the applicant, licensee, or registrant was convicted of a misdemeanor that is substantially related to the qualifications, functions, or duties of a licensee or registrant as defined in Section 868, and three (3) years have passed from the time of release from incarceration or completion of probation if no incarceration was imposed, without the occurrence of additional substantially-related criminal activity, act(s), or omission(s) that also could be grounds for denial, suspension, or revocation.

(E) Denial or Discipline Based on Professional Misconduct, Acts, or Omissions For professional misconduct or acts that are substantially related to the qualifications, functions, or duties of a licensee or registrant as defined in Section 868, or for other acts or omissions that are grounds for denial, suspension, or revocation, the Board or Registrar may consider the applicant, licensee, or registrant rehabilitated if three (3) years have passed from the time of commission of the professional misconduct, act(s), or omission(s) without the occurrence of additional substantially-related criminal activity, professional misconduct, act(s), or omission(s) that also could be grounds for denial, suspension, or revocation.

(2) The amount of time needed to demonstrate rehabilitation under subsection (b)(1) may be increased or decreased by taking into account the following:

(A) The nature and gravity of the crime(s), professional misconduct, act(s), or omission(s) that are under consideration as, or that were, the grounds for denial, suspension, or revocation.

(B) Evidence of any crime(s), professional misconduct, act(s), or omission(s) committed subsequent to the crime(s), professional misconduct, act(s), or omission(s) that are under consideration as, or that were, the grounds for denial, suspension, or revocation, which also could be considered as grounds for denial, suspension, or revocation.

(C) The time that has elapsed since commission of the crime(s), professional misconduct, act(s), or omission(s) that are under consideration as, or that were, the grounds for denial, suspension, or revocation.

(D) The extent to which the applicant, licensee, or registrant has complied with any terms of parole, probation, restitution, or any other sanctions lawfully imposed against the applicant, licensee, or registrant.

(E) Consistent work history subsequent to the release from incarceration, or the completion of probation if no incarceration was imposed, or subsequent to the time of commission of the professional misconduct, act(s), or omission(s).

(F) Documents or testimony from credible individuals who have personal knowledge of the applicant's, licensee's, or registrant's life and activities subsequent to the time of commission of the crime(s), professional misconduct, act(s), or omission(s) who can attest to the applicant's, licensee's, or registrant's present fitness for licensure or registration.

(G) The acts underlying the conviction have been dismissed pursuant to Section 1203.4, 1203.4a, 1203.41, 1203.42, or 1203.425 of the Penal Code, or a comparable dismissal or expungement. An applicant who has a conviction that has been dismissed pursuant to Section 1203.4, 1203.4a, 1203.41, or 1203.42 of the Penal Code shall provide proof of the dismissal if it is not reflected on the report furnished by the Department of Justice.

(H) Other relevant evidence, if any, of rehabilitation submitted by the applicant, licensee, or registrant. For example, relevant evidence may include evidence of recovery from drug and/or alcohol addiction or abuse or completion of a drug and/or alcohol aversion or diversion program if the crime(s), professional misconduct, act(s), or omission(s) related to or involved drug and/or alcohol use; or evidence of completion of an anger management program if the crime(s), professional misconduct, act(s), or omission(s) demonstrated the applicant's, licensee's, or registrant's inability to control one's temper.

(c) When considering a petition for reinstatement of the license of a contractor or the registration of a home improvement salesperson, the Board shall evaluate evidence of rehabilitation submitted by the petitioner, considering those criteria specified in subsections (a) and

(b) relating to licensees or registrants.

(Authority cited: Sections 481, 482 and 7008, Business and Professions Code. Reference: Sections 7.5, 141, 480, 481, 482, 488, 490, 493, 496, 7066, 7069, 7073, 7090, 7102, 7123 and 7124, Business and Professions Code.)

Section 869.1§Sections Applicant Defined

(a) All applicants for licensure shall furnish a full set of fingerprints for purposes of the board conducting a criminal history record check. The fingerprints will be used to allow the California Department of Justice and the Federal Bureau of Investigation to provide criminal history to the Board.

(b) For purposes of fingerprinting, "applicant" means any individual applying to be a member of the personnel of record.

(c) For purposes of fingerprinting, "applicant" means an individual applying for a home improvement salesperson registration.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7069 and 7153.1, Business and Professions Code.)

Section 869.2§Sections Exemptions

(a) Applicants for a joint venture license who hold a current active license in good standing are not subject to fingerprinting.

(b) Individuals already fingerprinted as required by Section 869.1 and for whom subsequent arrest information remains available at the Board need not submit fingerprints when submitting a subsequent application.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7069 and 7153.1, Business and Professions Code.)

Section 869.3§Sections Methods for Submitting Fingerprints

(a) Applicants residing inside the State of California shall submit their fingerprints through the electronic format certified by the California Department of Justice but, with approval of the Registrar, may submit their fingerprints on hard copy forms provided by the Registrar.

(b) Applicants residing outside the State of California may submit their fingerprints using the electronic format certified by the California Department of Justice but also may submit their fingerprints on hard copy forms provided by the Registrar.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7069 and 7153.1, Business and Professions Code.)

Section 869.4§Sections Subsequent Arrest History

(a) Once an applicant has been fingerprinted, the Board will maintain access to the applicant’s subsequent arrest history until such time as the individual’s license is cancelled, revoked or no longer renewable.

(b) Once the Board no longer receives subsequent arrest information, an individual seeking to apply for a license must be fingerprinted as required in Section 869.1.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7069 and 7153.1, Business and Professions Code.)

Section 869.9§Sections Criteria to Aid in Determining Earliest Date a Denied Applicant May Reapply for Licensure or Registration.

(a) For an applicant who is denied licensure or registration pursuant to subsection (a) of Section 480 of the Business and Professions Code, the date of reapplication shall be set by the Registrar at not less than one (1) year nor more than five (5) years after the denial. When computing the date for reapplication, the time shall commence from the effective date of the decision if an appeal is made or from the service of the notice of denial under Section 485(b) if a request for hearing is not made. The Registrar will consider the following criteria when setting the reapplication date of an individual who was denied a license or registration:

(1) For felony convictions listed in Section 869(b)(1)(B) that are substantially related to the qualifications, functions, or duties of a licensee as defined in Section 868, seven (7) years have passed from the time of release from incarceration or completion of probation if no incarceration was imposed, without the occurrence of additional substantially-related criminal activity, professional misconduct, act(s), or omission(s) that also could be grounds for denial.

(2) For felony convictions not listed in Section 869(b)(1)(B) that are substantially related to the qualifications, functions, or duties of a licensee as defined in Section 868, five (5) years have passed from the time of the applicant's release from incarceration or completion of probation if no incarceration was imposed, without the occurrence of additional substantially-related criminal activity, professional misconduct, act(s), or omission(s) that also could be grounds for denial.

(3) For misdemeanor convictions that are substantially related to the qualifications, functions, or duties of a licensee or registrant as defined in Section 868, three (3) years have passed from the time of release from incarceration or completion of probation if no incarceration was imposed, without the occurrence of additional substantially-related criminal activity, professional misconduct, act(s), or omission(s) that also could be grounds for denial.

(4) For professional misconduct that is substantially related to the qualifications, functions, or duties of a licensee or registrant as defined in Section 868, or for other acts or omissions that are grounds for denial, three (3) years have passed from the time of commission of the professional misconduct, act(s), or omission(s), without the occurrence of substantially-related criminal activity, professional misconduct, act(s), or omission(s) that also could be grounds for denial.

(5) The nature and gravity of the crime(s), professional misconduct, act(s), or omission(s) that were the grounds for denial.

(6) Evidence of any crime(s), professional misconduct, act(s), or omission(s) committed subsequent to the crime(s), professional misconduct, act(s), or omission(s) that were the grounds for denial, which also could be considered as grounds for denial.

(7) The time that has elapsed since commission of the crime(s), professional misconduct, act(s), or omission(s) that were the grounds for denial.

(8) The extent to which the applicant has complied with any terms of parole, probation, restitution, or any other sanctions lawfully imposed against the applicant in connection with the crime(s), professional misconduct, act(s), or omission(s) that were the grounds for denial.

(9) Consistent work history subsequent to the release from incarceration, or the completion of probation if no incarceration was imposed, or subsequent to the date of commission of the crime(s), professional misconduct, act(s), or omission(s) that were the grounds for denial.

(10) Documents or testimony from credible individuals who have personal knowledge of the applicant's life and activities subsequent to the date of commission of the crime(s), professional misconduct, act(s), or omission(s) that were the grounds for denial and who can attest to the applicant's present fitness for licensure or registration.

(11) Other relevant evidence, if any, of eligibility for reapplication submitted by the applicant. For example, relevant evidence may include evidence of recovery from drug and/or alcohol addiction or abuse or completion of a drug and/or alcohol aversion or diversion program if the crime(s), professional misconduct, act(s), or omission(s) that were the grounds for denial related to or involved drug and/or alcohol use; or evidence of completion of an anger management program if the crime(s), professional misconduct, act(s), or omission(s) demonstrated the applicant's inability to control one's temper.

(b) Nothing in this section shall preclude the Registrar from denying the license or registration of an applicant who was previously denied a license or registration and who is eligible for reapplication in accordance with this section.

(Authority cited: Sections 481, 482 and 7008, Business and Professions Code. Reference: Sections 480, 482, 485, 486, 496, 7066, 7069, 7073 and 7124, Business and Professions Code.)

Section 870§Sections Factors to Apply in Determining Earliest Date a Revoked Licensee May Apply for Licensure

(1) The Registar shall have exclusive authority in setting the earliest date a revoked licensee may reapply for reissuance or reinstatement of a license.

(2) When extending the minimum one year period, the Registrar shall give due consideration to the gravity of the violation, the history of previous violations and criminal convictions and evaluate the application based on the following criteria: Reapplication Dates: 5 years License has been revoked:

(1) one or more times or

(2) for committing fraudulent acts or

(3) committing acts which have seriously endangered the public welfare and safety or

(4) for being convicted of a construction-related crime. (For the purposes of determining if a crime is construction-related, CCR Title 16, Chapter 8, Section 868 shall apply.) 4 years License has been revoked:

(1) for committing violations on multiple construction projects; or

(2) for committing multiple violations of law for reasons other than fraud, danger to the public welfare and safety and for conviction of a construction-related crime. 3 years License has been revoked and revoked licensee:

(1) has been issued more than one citation which has become final within one year immediately preceding the date of revocation or

(2) has been previously suspended by the Register as the result of a disciplinary action. 2 years License has been revoked and revoked licensee has been issued a citation, which has become final within one year immediately preceding the date of revocation. 1 year Licensee has been revoked for the first time and revoked licensee has no previous legal action history with the Board.

(Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058 and 7059, Business and Professions Code.)

Section 871§Sections Disciplinary Guidelines

In reaching a decision on a disciplinary action under the Administrative Procedure Act (Government Code Section 11400 et seq.), the board shall consider the disciplinary guidelines entitled “Disciplinary Guidelines” (rev. 12/11/96) which are hereby incorporated by reference. Deviation from these guidelines and orders, including the standard terms of probation, is appropriate where the board in its sole discretion determines that the facts of the particular case warrant such a deviation—for example, the presence of mitigating factors such as the age of the case; evidentiary problems.

(Authority cited: Section 7008, Business and Professions Code; and Sections 11400.20 and 11400.21, Government Code. Reference: Sections 7090 and 7095, Business and Professions Code; and Section 11425.50(e), Government Code.)

DISCIPLINARY GUIDELINES (Rev. 12/11/96) In assessing a disciplinary penalty against a person who has not had a previous citation, revocation, suspension nor denial of application, as the result of the filing of an accusation or a statement of issues, the Registrar shall give due consideration to the following guidelines. In addition to any penalties imposed, all persons that have had a license disciplined, whether or not the disciplinary action has been stayed, will be required to post a disciplinary bond pursuant to Section

7071.8. Unless otherwise specified, all references are to the Business and Professions Code. Factors To Be Considered In determining whether revocation, suspension or probation is to be imposed in a given case, factors such as the following should be considered:

1. Nature and severity of the act(s), offenses, or crime(s) under consideration.

2. Actual or potential harm to the public.

3. Performed work that was potentially hazardous to the health, safety, or general welfare of the public.

4. Prior disciplinary record.

5. Number and/or variety of current violations.

6. Mitigation evidence.

7. Rehabilitation evidence.

8. In case of a criminal conviction, compliance with terms of sentence and/or court-ordered probation. Sections and Disciplinary Guidelines

125. Conspiracy with an Unlicensed Person Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Submit copies of construction contracts to the Registrar upon demand during the probation period.

4. If not taken within the past 5 years, take and pass the CSLB law and business examination.

5. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

6. Community Service time as determined by the Registrar; 5-21 days.

7. Pay CSLB investigation and enforcement costs.

141. Disciplinary Action by Foreign Jurisdiction Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Pay CSLB investigation and enforcement costs.

4. Community Service as determined by the Registrar; 5-21 days.

490. Conviction of a Crime—Substantial Relationship Required Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, conviction of a crime related to the functions of a contractor is a serious offense that warrants an outright revocation.

2. Actual suspension of at least 30 days.

3. Standard terms and conditions in cases of probation. (See page 566.)

4. Make restitution.

5. If not taken within the past 5 years, take and pass the CSLB law and business examination.

6. Prohibit receipt of down payments.

7. Community Service as determined by the Registrar; 5-21 days.

8. Pay CSLB investigation and enforcement costs.

496. Violation of Section 123—Subversion of Licensee Examinations Minimum Penalty: Revocation Maximum Penalty: Revocation If warranted:

1. Pay CSLB investigation and enforcement costs.

498. Securing a License through Fraud, Deceit or Knowing Misrepresentation Minimum Penalty: Revocation Maximum Penalty: Revocation If warranted:

1. Pay CSLB investigation and enforcement costs.

499. False Statement in Support of Application Minimum Penalty: Revocation, stayed, 3 years probation If warranted:

1. Absent compelling mitigating circumstances, making a false statement in support of an application of another person, is a serious offense that warrants an outright revocation.

2. Actual suspension of at least 30 days.

3. Standard terms and conditions in cases of probation. (See page 566.)

4. If not taken within the past 5 years, take and pass the CSLB law and business examination.

5. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

6. Community Service as determined by CSLB; 5-21 days.

7. Pay CSLB investigation and enforcement costs.

860. (CCR) Penalty for Failure to Comply with Rules Minimum Penalty: 5 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7018.5. Notice to Owner; Mechanics’ Lien Law Minimum Penalty: 5 day suspension, stayed, 1 year probation Maximum Penalty: 60 day suspension, 1 year probation If warranted:

1. Standard terms and conditions in cases of probation. (See page 566.)

2. Submit copies of construction contracts to the Registrar upon demand during the probation period.

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7027.3. Fraudulent Use of a License Number Minimum Penalty: Revocation Maximum Penalty: Revocation If warranted:

1. Pay CSLB investigation and enforcement costs.

7029.1. Contracting Jointly Without a Joint Venture License Minimum Penalty: 5 day suspension, stayed, 1 year probation Maximum Penalty: 60 day suspension, 1 year probation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7029.5. Identification on Vehicle, Plumbing, Electrical Sign, and Well-drilling Minimum Penalty: 5 day suspension, stayed, 1 year probation Maximum Penalty: 60 suspension, 1 year probation If warranted:

1. Standard terms and conditions in cases of probation. (See page 566.)

2. Pay CSLB investigation and enforcement costs.

7068.2. Failure to Notify; Disassociation of RMO/RME Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Standard terms and conditions in cases of probation. (See page 566.)

2. If not taken within the past 5 years, take and pass the CSLB law and business examination.

3. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

4. Pay CSLB investigation and enforcement costs.

7071.11. Judgment, Admitted Claim or Good Faith Payment on Bond Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Pay CSLB investigation and enforcement costs.

7071.13. Reference in Advertising; Contractors Bond Minimum Penalty: 5 day suspension, stayed, 1 year probation Maximum Penalty: 60 day suspension, 1 year probation If warranted:

1. Standard terms and conditions in cases of probation. (See page 566.)

2. Submit copies of advertisements relating to contracting business to the Registrar prior to their being displayed or published during the probation period.

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7071.15. Failure to Maintain a Sufficient Bond Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7076. Failure to Notify; Death or Disassociation of Licensee Personnel Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Standard terms and conditions in cases of probation. (See page 566.)

2. If not taken within the past 5 years, take and pass the CSLB law and business examination.

3. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

4. Pay CSLB investigation and enforcement costs.

7083. Failure to Notify, Changes of Personnel, Business Name, Address, Bond Exemption, and Multiple License Exemption Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Standard terms and conditions in cases of probation. (See page 566.)

2. If not taken within the past 5 years, take and pass the CSLB law and business examination.

3. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

4. Pay CSLB investigation and enforcement costs.

7090. Failure to Obtain Building Permits Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Submit copies of building permits to the Registrar upon demand for projects undertaken during the probation period.

5. If not taken within the past 5 years, take and pass the CSLB trade examination.

6. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

7. Pay CSLB investigation and enforcement costs.

7090.5. Fraud and Repeated Acts, Despite Corrections of Conditions Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Take and pass a course in accounting, bookkeeping and/or business management at an accredited community college. All courses must be approved in advance by the Registrar.

4. Submit copies of building permits to the Registrar upon demand for projects undertaken during the probation period.

5. Submit copies of construction contracts to the Registrar upon demand during the probation period.

6. Prohibit receipt of down payments.

7. Submit to the Registrar a detailed plan setting forth the procedure to be used to provide for direct supervising and control by the qualifying individual.

8. If not taken within the past 5 years, take and pass the CSLB law and business examination.

9. Take and pass a course in Contractors License Law or a course related to business law at an accredited community college. All courses must be approved in advance by the Registrar.

10. If not taken within the past 5 years, take and pass the CSLB trade examination.

11. Take and pass a vocational course(s) related to the trade(s) employed on the project. All courses must be approved in advance by the Registrar.

12. Pay CSLB investigation and enforcement costs.

7099.6. Failure to Comply with a Citation Minimum Penalty: Revocation, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7103. Disciplinary Action by Another State Minimum Penalty: Revocation, stayed, 3 years probation. Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Pay CSLB investigation and enforcement costs.

7107. Abandonment Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, abandonment of a project is a serious offense that warrants an actual period of suspension of at least 30 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Submit copies of building permits to the Registrar upon demand for projects undertaken during the probation period.

5. Submit copies of construction contracts to the Registrar upon demand during the probation period.

6. Submit to the Registrar a detailed plan setting forth the procedure to be used to provide for direct supervision and control by the qualifying individual.

7. If not taken within the past 5 years, take and pass the CSLB law and business examination.

8. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

9. If not taken within the past 5 years, take and pass the CSLB trade examination.

10. Take and pass a vocational course(s) related to the trade(s) employed on the project. All courses must be approved in advance by the Registrar.

11. During the period of probation, provide lien releases to project owners as soon as payment is received.

12. Pay CSLB investigation and enforcement costs.

7108. Misuse of Funds Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, misuse of funds is a serious offense that warrants an actual period of suspension of at least 30 days.

2. If diversion or misuse of funds is for personal use not related to construction work, outright revocation is appropriate.

3. Standard terms and conditions in cases of probation. (See page 566.)

4. Make restitution.

5. Take and pass a course in accounting, bookkeeping and/or business management at an accredited community college. All courses must be approved in advance by the Registrar.

6. Submit copies of construction contracts to the Registrar upon demand during the probation period.

7. If not taken within the past 5 years, take and pass the CSLB law and business examination.

8. Take and pass a course in Contractors License Law or course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

9. Community Service as determined by CSLB; 5-21 days.

10. Pay CSLB investigation and enforcement costs.

7108.5. Prime Contractors and Subcontractors; Payment Required Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Take and pass a course in accounting, bookkeeping and/or business management at an accredited community college. All courses must be approved in advance by the Registrar.

5. If not taken within the past 5 years, take and pass the CSLB law and business examination.

6. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

7. Pay CSLB investigation and enforcement costs. 7109(a). Departure from Accepted Trade Standards for Workmanship Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more. If the departure from trade standards is substantial, actual suspension of at least 30 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Submit copies of building permits to the Registrar upon demand for projects undertaken during the probationary period.

5. Submit copies of construction contracts to the Registrar upon demand during the probation period.

6. Submit to the Registrar a detailed plan setting forth the procedure to be used to provide for direct supervising and control by the qualifying individual.

7. If not taken within the last 5 years, take and pass the CSLB law and business examination.

8. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

9. If not taken within the past 5 years, take and pass the CSLB trade examination.

10. Take and pass a vocational course(s) related to the trade(s) employed on the project. All courses must be approved in advance by the Registrar.

11. Pay CSLB investigation and enforcement costs. 7109(b). Departure from Plans and/or Specifications Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more. If the departure from plans and/or specifications is substantial, actual suspension of at least 30 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Submit copies of building permits to the Registrar upon demand for all projects undertaken during the probationary period.

5. Submit copies of construction contracts to the Registrar upon demand during the probation period.

6. Submit to the Registrar a detailed plan setting forth the procedure to be used to provide for direct supervising and control by the qualifying individual.

7. If not taken within the past 5 years, take and pass the CSLB law and business examination.

8. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

9. If not taken within the past 5 years, take and pass the CSLB trade examination.

10. Take and pass a vocational course(s) related to the trade(s) employed on the project. All courses must be approved in advance by the Registrar.

11. Pay CSLB investigation and enforcement costs.

7109.5. Violation of Safety Orders Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Establish a safety program.

6. Pay CSLB investigation and enforcement costs.

7110. Violations of Other Laws; Disciplinary Action Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Comply with orders or assessments of relevant agency.

5. If not taken within the past 5 years, take and pass the CSLB law and business examination.

6. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

7. Submit copies of building permits to the Registrar upon demand for projects undertaken during the probation period.

8. Establish a safety program.

9. Pay CSLB investigation and enforcement costs.

7110.1. Violation of Labor Code Section 206.5; Requiring Release of Claim for Wages Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7110.5. Violation Pursuant to Section 98.9 of the Labor Code Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7111. Preservation of Records Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Take and pass a course in accounting, bookkeeping and/or business management at an accredited community college. All courses must be approved in advance by the Registrar.

4. If not taken within the past 5 years, take and pass the CSLB law and business examination.

5. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

6. Pay CSLB investigation and enforcement costs.

7111.1. Failure of Licensee To Cooperate in an Investigation of a Complaint Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7112. Misrepresentation on an Application Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, misrepresentation is a serious offense that warrants an outright revocation.

2. Actual suspension of at least 30 days.

3. Standard terms and conditions in cases of probation. (See page 566.)

4. Community Service as determined by CSLB; 5-21 days.

5. Pay CSLB investigation and enforcement costs.

7113. Failure to Complete Project for Contract Price Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more. If injury is substantial, actual suspension of at least 30 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Complete an education course in estimating construction costs or a related course in the field of construction science. All courses must be approved in advance by the Registrar.

5. Prohibit receipt of down payments.

6. If not taken within the past 5 years, take and pass the CSLB law and business examination.

7. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

8. Pay CSLB investigation and enforcement costs.

7113.5. Settlement of Lawful Obligations Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Take and pass a course in accounting, bookkeeping and/or business management at an accredited community college. All courses must be approved in advance by the Registrar.

5. Submit a list of all subcontractors used on construction projects to the Registrar upon demand during the probation period.

6. Submit a list of all material suppliers used on construction projects to the Registrar upon demand during the probation period.

7. Pay CSLB investigation and enforcement costs.

7114. Aiding and Abetting an Unlicensed Person Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Submit a list of all subcontractors used on construction projects to the Registrar upon demand during the probation period.

6. Pay CSLB investigation and enforcement costs.

7114.1. Certifying to False Experience Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, certifying false experience is a serious offense that warrants an outright revocation.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Community Service as determined by CSLB; 5-21 days.

4. Pay CSLB investigation and enforcement costs.

7115. Violation of the Contractors License Law Minimum Penalty: 5 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in case of probation. (See page 566.)

3. Pay CSLB investigation and enforcement costs.

7116. Any Willful or Fraudulent Act Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: revocation If warranted:

1. Absent compelling circumstances, fraud is a serious offense that warrants an actual suspension of at least 60 days.

2. If the injury is substantial, outright revocation is appropriate.

3. Standard terms and conditions in case of probation. (See page 566.)

4. Make restitution.

5. If not taken within the past 5 years, take and pass the CSLB law and business examination.

6. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

7. Community Service as determined by CSLB; 5-21 days.

8. Pay CSLB investigation and enforcement costs.

7117. Variance from License as to Name or Personnel Minimum Penalty: 5 day suspension, stayed, 1 year probation Maximum Penalty: 364 day suspension, 2 years probation If warranted:

1. Standard terms and conditions in case of probation. (See page 566.)

2. If not taken within the past 5 years, take and pass the CSLB law and business examination.

3. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

4. Pay CSLB investigation and enforcement costs.

7117.5. Contracting with an Inactive, Suspended or Expired License Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in case of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7117.6. Contracting Out of Classification Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in case of probation. (See page 566.)

3. Submit copies of construction contracts to the Registrar upon demand during the probation period.

4. Submit copies of all advertisements relating to contracting business to the Registrar prior to their being displayed or published during the probation period.

5. Pay CSLB investigation and enforcement costs.

7118. Contracting with an Unlicensed Person Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Submit a list of all subcontractors used on construction projects to the Registrar upon demand during the probation period.

6. Community Service as determined by CSLB; 5-21 days.

7. Pay CSLB investigation and enforcement costs.

7118.4. Asbestos Related Inspection with Knowledge of Report being Required for Loan; Disclosure Required Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, conducting an asbestos related inspection while maintaining a financial relationship with an entity which performs corrective work without disclosing this fact is a serious offense that warrants an actual suspension of 60 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Community Service as determined by CSLB; 5-21 days.

6. Pay CSLB investigation and enforcement costs.

7118.5. Asbestos-related Work; Contracting with Uncertified Contractor Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, contracting with an uncertified asbestos contractor to perform asbestos related work is a serious offense that warrants an actual suspension of 60 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Submit a list of all subcontractors used on construction projects to the Registrar upon demand during the probation period.

4. Community Service as determined by CSLB; 5-21 days.

5. Pay CSLB investigation and enforcement costs.

7118.6. Asbestos-contracting with an Uncertified Person for Removal or Remedial Action Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, contracting with an uncertified person for removal or remedial asbestos work is a serious offense that warrants an actual suspension of 60 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Submit a list of all subcontractors used on construction projects to the Registrar upon demand during the probation period.

4. Community Service as determined by CSLB; 5-21 days.

5. Pay CSLB investigation and enforcement costs.

7119. Lack of Reasonable Diligence Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. Prohibit receipt of down payments.

5. Pay CSLB investigation and enforcement costs.

7120. Failure to Pay Money Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Take and pass a course in accounting, bookkeeping and/or business management at an accredited community college. All courses must be approved in advance by the Registrar.

4. If not taken within the past 5 years, take and pass the CSLB law and business examination.

5. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

6. Submit a list of all subcontractors used on construction projects to the Registrar upon demand during the probation period.

7. Submit a list of all material suppliers used on construction projects to the Registrar upon demand during the probation period.

8. Prohibit the receipt of down payments.

9. Provide lien releases to project owners on all future construction projects upon receipt of payments.

10. Pay CSLB investigation and enforcement costs.

7121. Prohibition against Association Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Make restitution.

4. If not taken within the past 5 years, take and pass the CSLB law and business examination.

5. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

6. Pay CSLB investigation and enforcement costs.

7123. Conviction of a Crime Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty; Revocation If warranted:

1. Absent compelling mitigating circumstances, conviction of a crime related to the functions of a contractor is a serious offense and warrants an outright revocation.

2. Actual suspension of at least 30 days.

3. Standard terms and conditions in cases of probation. (See page 566.)

4. Make restitution.

5. If not taken within the past 5 years, take and pass the CSLB law and business examination.

6. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

7. Prohibit the receipt of down payments.

8. Community Service as determined by CSLB; 5-21 days.

9. Pay CSLB investigation and enforcement costs.

7123.5. Violation of Prohibition against Overpricing Following an Emergency or Disaster (Penal Code Section 396) Minimum Penalty: 6 month suspension, 3 years probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, overpricing following an emergency or disaster is a serious offense and warrants an outright revocation.

2. Actual suspension of 6 months.

3. Standard terms and conditions in cases of probation. (See page 566.)

4. Make restitution.

5. If not taken within the past 5 years, take and pass the CSLB law and business examination.

6. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

7. Prohibit the receipt of down payments.

8. Community Service as determined by CSLB; 5-21 days.

9. Pay CSLB investigation and enforcement costs. 7125(b). Filing False Workers’ Compensation Exemption Reports Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Submit a list of persons employed on construction related projects to the Registrar upon demand during the probation period.

6. Make restitution.

7. Pay CSLB investigation and enforcement costs.

7154. Employment of a Nonregistered Home Improvement Salesperson Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Pay CSLB investigation and enforcement costs.

7155. Violation of Contractors License Law by Home Improvement Salesperson Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Submit copies of construction contracts to the Registrar upon demand during the probation period.

4. If not taken within the past 5 years, take and pass the CSLB law and business examination.

5. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

6. Pay CSLB investigation and enforcement costs.

7155.5. Liability of a Contractor for a Home Improvement Salesperson Minimum Penalty: Suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Submit copies of construction contracts to the Registrar upon demand during the probation period.

6. Prohibit the receipt of down payments.

7. Pay CSLB investigation and enforcement costs

7156. Registered Salespersons Violations Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Submit copies of construction contracts to the Registrar upon demand during the probation period.

4. Pay CSLB investigation and enforcement costs.

7157. Home Improvement Inducements Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of at least 5 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Submit copies of advertisements relating to contracting business to the Registrar prior to their being displayed or published during the probation period.

6. Prohibit the receipt of down payments.

7. Pay CSLB investigation and enforcement costs.

7158. False Completion Certificate Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Absent compelling circumstances, knowingly using a false certificate is a serious offense that warrants an actual suspension of at least 30 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Make restitution.

6. Submit copies of construction contracts to the Registrar upon demand during the probation period.

7. Prohibit receipt of down payments.

8. Community Service as determined by CSLB; 5-21 days.

9. Pay CSLB investigation and enforcement costs.

7159. Home Improvement Contract Requirements Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. If any injuries are involved, actual suspension of at least 30 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Submit copies of construction contracts to the Registrar upon demand during the probation period.

6. Prohibit receipt of down payments.

7. Community Service as determined by CSLB; 5-21 days.

8. Pay CSLB investigation and enforcement costs.

7161. Misrepresentation; False Advertisement Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, misrepresentation and false or deceptive advertising are serious offenses that warrant an actual period of suspension of at least 30 days.

2. If injury is substantial, outright revocation is appropriate.

3. Standard terms and conditions in cases of probation. (See page 566.)

4. If not taken within the past 5 years, take and pass the CSLB law and business examination.

5. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

6. Submit copies of construction contracts to the Registrar upon demand during the probation period.

7. Submit copies of advertisements relating to contracting business to the Registrar prior to their being displayed or published during the probation period.

8. Prohibit the receipt of down payments.

9. Community Service as determined by CSLB; 5-21 days.

10. Pay CSLB investigation and enforcement costs.

7162. Representation with Respect to Trademark or Brand Name; Quantity or Size Minimum Penalty: Revocation, stayed, 2 years probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Make restitution.

6. Submit copies of construction contracts to the Registrar upon demand during the probation period.

7. Submit copies of advertisements relating to contracting business to the Registrar prior to their being displayed or published during the probation period.

8. Prohibit the receipt of down payments.

9. Pay CSLB investigation and enforcement costs.

7164. Contract Form for Single Family Dwelling Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Submit copies of construction contracts to the Registrar upon demand during the probation period.

6. Pay CSLB investigation and enforcement costs.

7165. Swimming Pool Construction Contract Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. Submit copies of construction contracts to the Registrar upon demand during the probation period.

6. Pay CSLB investigation and enforcement costs.

7183.5. Asbestos; Certification Obtained under False Pretenses Minimum Penalty: Revocation, stayed, 3 years probation Maximum Penalty: Revocation If warranted:

1. Absent compelling mitigating circumstances, obtaining an asbestos certification under false pretenses is a serious offense and warrants an outright revocation.

2. Actual suspension of at least 30 days.

3. Standard terms and conditions in cases of probation. (See page 566.)

4. Community Service as determined by CSLB; 5-21 days.

5. Pay CSLB investigation and enforcement costs.

7189. Asbestos Certification; Conflicts of Interest Minimum Penalty: 60 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Absent compelling circumstances, a person defined as an “asbestos consultant” or a “site surveillance technician,” having financial or proprietary interest in an asbestos contractor’s company is a serious offense that warrants an actual suspension period of at least 30 days.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. Submit copies of construction contracts to the Registrar upon demand during the probation period.

4. Prohibit the receipt of down payments.

5. Community Service as determined by CSLB; 5-21 days.

6. Pay CSLB investigation and enforcement costs. All Other Violations Minimum Penalty: 5 day suspension, stayed, 1 year probation Maximum Penalty: Revocation If warranted:

1. Actual suspension of 5 days or more.

2. Standard terms and conditions in cases of probation. (See page 566.)

3. If not taken within the past 5 years, take and pass the CSLB law and business examination.

4. Take and pass a course in Contractors License Law or a course related to construction law at an accredited community college. All courses must be approved in advance by the Registrar.

5. If not taken within the past 5 years, take and pass the CSLB trade examination.

6. Take and pass a vocational course(s) related to the trade(s) employed on the project. All courses must be approved in advance by the Registrar.

7. Submit copies of construction contracts to the Registrar upon demand during the probation period.

8. Make restitution

9. Pay CSLB investigation and enforcement costs. Standard Terms and Conditions to Be Included in all Cases of Probation

1. Obey All Laws: Respondent shall comply with all federal, state and local laws governing the activities of a licensed contractor in California.

2. Interviews With Regional Deputy: Respondent and any of respondent’s personnel of record shall appear in person for interviews with the Regional Deputy or designee upon request and reasonable notice.

3. Completion Of Probation: Upon successful completion of probation, the contractor’s license will be fully restored.

4. Violation Of Probation: If respondent violates probation in any respect, the Registrar, after giving notice and opportunity to be heard, may revoke probation and impose the disciplinary order that was stayed. If the decision contains an order to make restitution, the Registrar may impose the disciplinary order without giving the respondent an opportunity to be heard should the respondent fail to comply with the restitution order.

5. Respondent shall submit copies of documents directly related to the person’s construction operations to the Registrar upon demand during the probation period.

Section 872§Sections Disclosure of General Liability Insurance

(a) As used in this regulation, “home improvement contract” is defined in Code Section 7151.2 The following statement, must accompany every estimate (bid) intended to result in a home improvement contract and every home improvement contract. The heading shall be printed in at least 14-point type, the questions in at least 12-point type, and the comments in italics of at least 11-point type. The text should be bold where indicated. This is 14-point type. This is 12-point type. This is 11-point type in italics. Information About Commercial General Liability Insurance Home Improvement Pursuant to California Business & Professions Code § 7159.3 (SB 2029), home improvement contractors must provide this notice and disclose whether or not they carry commercial general liability insurance. Did your contractor tell you whether he or she carries Commercial General Liability Insurance? Home improvement contractors are required by law to tell you whether or not they carry Commercial General Liability Insurance. This written statement must accompany the bid, if there is one, and the contract. What does this insurance cover? Commercial General Liability Insurance can protect against third-party bodily injury and accidental property damage. It is not intended to cover the work the contractor performs. Is this insurance required? No. But the Contractors State License Board strongly recommends that all contractors carry it. The Board cautions you to evaluate the risk to your family and property when you hire a contractor who is not insured. Ask yourself, if something went wrong, would this contractor be able to cover losses ordinarily covered by insurance? How can you make sure the contractor is insured? If he or she is insured, your contractor is required to provide you with the name and telephone number of the insurance company. Check with the insurance company to verify that the contractor’s insurance coverage will cover your project. What about a contractor who is self-insured? A self-insured contractor has made a business decision to be personally responsible for losses that would ordinarily be covered by insurance. Before contracting with a self-insured contractor, ask yourself, if something went wrong, would this contractor be able to cover losses ordinarily covered by insurance? ■ _______________ does not carry Commercial General Liability (CONTRACTOR’S NAME) Insurance. ■ _______________ carries Commercial General Liability (CONTRACTOR’S NAME) Insurance. The insurance company is ____________________________ (COMPANY NAME) You may call the insurance company at ___________________ (TELEPHONE NUMBER) to verify coverage. For more information about Commercial General Liability Insurance, contact the Contractors State License Board at www.cslb.ca.gov or call 800-321-CSLB (2752). (This form meets the requirements of Rule 872 and Sections 7159.3 and 7164, Business and Professions Code.)

(b) The following statement must accompany every contract described in Code Section 7164. The heading shall be printed in at least 14-point type, the questions in at least 12-point type, and the comments in italics of at least 11-point type. The text should be bold where indicated. This is 14-point type. This is 12-point type. This is 11-point type in italics. Information About Commercial General Liability Insurance Single Family Home Pursuant to California Business & Professions Code §7164 (SB 2029), contractors building single-family residences for owners who intend to occupy the home for at least a year must provide this notice and disclose whether or not they carry commercial general liability insurance. Did your contractor tell you whether he or she carries Commercial General Liability Insurance? Contractors building single-family residences for owners who intend to occupy the home for at least a year are required by law to tell you whether or not they carry Commercial General Liability Insurance. This written statement must accompany the contract. What does this insurance cover? Commercial General Liability Insurance can protect against third-party bodily injury and accidental property damage. It is not intended to cover the work the contractor performs. Is this insurance required? No. But the Contractors State License Board strongly recommends that all contractors carry it. The Board cautions you to evaluate the risk to your family and property when you hire a contractor who is not insured. Ask yourself, if something went wrong, would this contractor be able to cover losses ordinarily covered by insurance? How can you make sure the contractor is insured? If he or she is insured, your contractor is required to provide you with the name and telephone number of the insurance company. Check with the insurance company to verify that the contractor’s insurance coverage will cover your project. What about a contractor who is self-insured? A self-insured contractor has made a business decision to be personally responsible for losses that would ordinarily be covered by insurance. Before contracting with a self-insured contractor, ask yourself, if something went wrong, would this contractor be able to cover losses ordinarily covered by insurance? ■ _______________ does not carry Commercial General Liability (CONTRACTOR’S NAME) Insurance. ■ _______________ carries Commercial General Liability (CONTRACTOR’S NAME) Insurance. The insurance company is ____________________________ (COMPANY NAME) You may call the insurance company at ___________________ (TELEPHONE NUMBER) to verify coverage. For more information about Commercial General Liability Insurance, contact the Contractors State License Board at www.cslb.ca.gov or call 800-321-CSLB (2752). (This form meets the requirements of Rule 872 and Sections 7159.3 and 7164, Business and Professions Code.)

Section 880§Sections Order of Correction—Practical Feasibility

Before including an order of correction in a citation, due consideration shall be given to the practical feasibility of correction in accordance with, but not limited to, the following criteria:

(a) An order of correction is appropriate where it would not result in excessive destruction of or substantial waste of existing acceptable construction.

(b) An order of correction is appropriate where the owner of the construction project is willing to allow the cited licensee to correct.

(c) An order of correction is appropriate where it appears to the Registrar that the cited licensee has competence or ability to correct.

(Authority cited: Sections 7008 and 7099.1, Business and Professions Code. Reference: Sections 7099 and 7099.1, Business and Professions Code.)

Section 881§Sections Order of Correction—Alternative Compliance

A cited licensee may comply with an order of correction by having and paying for another licensee to do the corrective work. The cited licensee remains responsible, however, for any failure to fully comply with the order of correction. An order of correction may, but need not, contain the alternative that the cited person may pay a specified sum to the owner of the construction project in lieu of correcting.

(Authority cited: Sections 7008 and 7099.1, Business and Professions Code. Reference: Sections 7099 and 7099.1, Business and Professions Code.)

Section 882§Sections Order of Correction—Time Required to Correct

Where an order of correction is included in a citation, due consideration shall be given to the time required to correct in accordance with, but not limited to, the following criteria:

(a) Accepted industry practice in that area relating to performance of such work under certain climate or weather conditions.

(b) A reasonable time in which to obtain necessary materials.

(c) The number of working days the construction project will be made accessible by the owner for corrections.

(Authority cited: Sections 7008 and 7099.1, Business and Professions Code. Reference: Sections 7099 and 7099.1, Business and Professions Code.)

Section 883§Sections Order of Correction—Extension of Time to Correct

If the cited person, after exercising substantial efforts and reasonable diligence, is unable to complete the correction within the time allowed because of conditions beyond their control, they may request an extension of time in which to correct. Such request must be made in writing, and must be made prior to the expiration of the time allowed in the order of correction. An extension may be granted upon showing of good cause which determination is within the discretion of the Registrar. If a request for extension of time is not made prior to the expiration of time allowed in the order of correction, failure to correct within the time allowed shall constitute a violation of the order of correction whether or not good cause for an extension of time existed.

(Authority cited: Sections 7008 and 7099.1, Business and Professions Code. Reference: Sections 7099 and 7099.1, Business and Professions Code.)

Section 884§Sections Assessments of Civil Penalties

(a) Civil penalties against persons who have been cited for violation of the Contractors State License Law shall be assessed in accordance with the following ranges of penalties. Section Violated Minimum Civil Penalty Maximum Civil Penalty 7027.1 $100 $1,000 7028 200 8,000 7028.1 1,000 8,000 7028.5 200 8,000 7028.7 200 15,000 7029.1 200 2,500 7029.5 100 500 7029.6 100 500 7030 500 1,500 7030.1 1,000 8,000 7030.5 100 1,000 7031.5 100 500 7034 100 1,000 7058.7 500 8,000 7068.1 100 8,000 7068.2 100 1,000 7071.1 100 1,000 7071.1 100 500 7075 100 500 7076 100 1,000 7083 100 1,000 7083.1 100 1,000 7099.1 100 1,500 7099.1 100 1,500 7107 200 8,000 7108 200 8,000 7108.5 200 2,000 7108.6 200 2,000 7109 200 8,000 7109.5 500 8,000 7110 200 30,000 7110.1 100 1,000 7111 100 1,000 Section Violated Minimum Civil Penalty Maximum Civil Penalty 7111.1 100 1,500 7113 200 8,000 7114 500 30,000 7114.1 200 2,000 7115 100 8,000 7116 100 8,000 7117 100 1,000 7117.5 200 8,000 7117.6 200 8,000 7118 500 30,000 7118.4 3,000 8,000 7118.5 1,000 8,000 7118.6 1,000 8,000 7119 200 2,000 7120 200 2,000 7123 500 8,000 7125 100 500 7125.4 200 30,000 7154 100 1,000 7157 100 1,000 7158 500 8,000 7159 100 1,000 7159.5(a)(1), (a)(3), and (a)(5), 100 8,000 7159.5(a)(2), (a)(4), (a)(6), (a)(7), and (a)(8) 100 1,000 7159.1 100 500 7159.1 100 8,000 7161 100 8,000 7162 100 1,500 7164 100 1,000

(b) When determining the amount of assessed civil penalty, the Registrar shall take into consideration whether one or more of the following or similar circumstances apply:

(1) the citation includes multiple violations;

(2) the cited person has a history of violations of the same or similar sections of the Contractors State License Law;

(3) in the judgment of the Registrar, a person has exhibited bad faith;

(4) in the judgment of the Registrar, the violation is serious or harmful;

(5) the citation involves a violation or violations perpetuated against a senior citizen or disabled person; and/or

(6) the citation involves a violation or violations involving a construction project in connection with repairs for damages caused by a natural disaster as described in Section 7158 of the Code.

(c) Where a citation lists more than one violation and each of the violations relates to the same construction project, the total penalty assessment in each citation shall not exceed $ 8,000, except as provided for violations of Section 7028.7, in which case the total penalty assessment in each citation shall not exceed $ 15,000, and for violations of Sections 7110, 7114, 7118, or 7125.4, in which case the total penalty assessment in each citation shall not exceed $ 30,000.

(d) Where a citation lists more than one violation, the amount of assessed civil penalty shall be stated separately for each section violated.

(Authority cited: Sections 7008 and 7099.2, Business and Professions Code. Reference: Sections 7099, 7099.1 and 7115, Business and Professions Code.)

Section 885§Sections Appeal of Citation

Any person served with a citation pursuant to Section 7099 of the Business and Professions Code may contest the citation by appealing to the Registrar within 15 working days from the receipt of such citation. The 15 day period may be extended upon showing of good cause which determination is within the discretion of the Registrar. The cited person may contest any or all of the following aspects of the citation:

1. The occurrence of a violation of the Contractors License Law;

2. The reasonableness of the order of correction, if an order of correction is included in the citation;

3. The period of time allowed for correction, if an order of correction is included in the citation;

4. The amount of the civil penalty, if a civil penalty is assessed in the citation.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7099.3, 7099.4 and 7099.5, Business and Professions Code.)

Section 886§Sections Service of Citation

Service of a citation shall be made in accordance with the provisions of Section 11505(c) of the Government Code, and, further, that a copy of the citation be sent by regular mail.

(Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7099.3, 7099.4 and 7099.5, Business and Professions Code.)

Section 887§Sections Criteria to Evaluate the Gravity of a Violation of Business and Professions Code Section 7028.7

Before assessing a civil penalty under Section 7028.7 of the Business and Professions Code, the Registrar shall give due consideration to the gravity of the violation, including, but not limited to, a consideration of whether the cited person did one or more of the following:

1. Falsely represented that he/she was licensed.

2. Failed to perform work for which money was received.

3. Executed or used any false or misleading documents in order to induce a person to enter into a contract or to pay money.

4. Made false or misleading statements in order to induce a person to enter into a contract or pay money.

5. Failed to apply funds which were received for the purpose of obtaining or paying for services, labor, materials, or equipment.

6. Performed work that was potentially hazardous to the health, safety, or general welfare of the public.

7. Performed work in violation of the building laws, safety laws, labor laws, compensation insurance laws, or unemployment insurance laws.

8. Performed work that did not meet acceptable trade standards for good and workmanlike construction.

9. Was convicted of a crime in connection with the violation.

10. Committed any act which would be cause for disciplinary action against a licensee.

11. Committed numerous or repeated violations.

(Authority cited: Sections 7008 and 7028.7, Business and Professions Code. Reference: Section 7028.7, Business and Professions Code.)

Section 890§Sections Minimum Qualification Standards for Arbitrators

For the purposes of Section 7085.5 of the Code, regardless of the method of appointment or selection, arbitrators shall possess the following minimum qualifications:

(a) (1) Five (5) years of experience in the construction industry as a licensed contractor or a professional in a construction related field, such as an architect or engineer, or

(2) Five (5) years of experience as an attorney, judge, administrative law judge, arbitrator, or a combination thereof, handling a minimum of 8 construction related matters.

(b) Completion of an arbitrator’s course on construction arbitration within the last 5 years including, but not limited to, training on the process, the ethics and the laws relating to arbitration. The training on the process of arbitration may include such topics as the role of the arbitrator, the use of effective questioning techniques, and the role of an expert in an arbitration proceeding.

(c) Completion of 8 hours of continuing education on construction arbitration every 5 years, including, but not limited to, the topics set forth in subsection (b).

(d) Completion of a training program related specifically to the Board’s arbitration procedures, laws and policies.

(Authority cited: Sections 7008 and 7085.5(b)(3), Business and Professions Code. Reference: Section 7085 et seq., Business and Professions Code.)