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Bulletin

CSLB stings and its 2025-26 enforcement numbers

CSLB's part in a 15-state sting effort, the Arroyo Grande sting, and its FY 2025/26 enforcement report: 21,166 complaints received and 677 licenses revoked.

Published
2026-11-10

The Contractors State License Board (CSLB) ran 39 stings and sweeps that produced 73 enforcement actions as California’s part in a multi-state effort against unlicensed contracting, it said in news release #26-03 on November 2, 2026. The effort was organized by the National Association of State Contractors Licensing Agencies (NASCLA), and California was one of 15 states that took part. A separate release on September 30, 2026 described a two-day sting in Arroyo Grande, and the board’s enforcement statistical report for FY 2025/26 carries a report date of September 16, 2026.

Stings and sweeps

CSLB describes its stings as undercover operations. In the three stings of the NASCLA effort, investigators contacted suspected unlicensed people through advertisements, and those people came to set locations to bid on projects ranging from $1,100 to $35,000. CSLB says the stings led to 25 misdemeanor Notices to Appear in criminal court for unlicensed contracting and illegal advertising, 10 administrative citations, and six people to be referred to district attorneys’ offices for possible prosecution.

CSLB also ran sweep operations in 18 counties. They included 182 site visits, 11 cases referred to local district attorneys, 13 citations to licensees, six to non-licensees and two Letters of Admonishment. It also issued 11 stop work orders and 20 advisory notices.

The Arroyo Grande sting, run with the San Luis Obispo County District Attorney’s Office, was undercover too. Six people were issued notices to appear in court for alleged misdemeanor unlicensed contracting, and four more suspects will be referred to the district attorney. CSLB says every person cited had bid landscaping or tree service work above the $1,000 limit, one at $40,000, and that they may face further charges for illegal advertising. Those are allegations, and no court has ruled on them.

The law the stings enforce

A bid is enough to make someone a contractor: the definition in Bus. & Prof. Code s. 7026 covers any person who “submits a bid to” do the work. Under s. 7028, engaging in the business of a contractor, or acting in the capacity of one, without a license is a misdemeanor. A first conviction carries a fine of up to $5,000, up to six months in county jail, or both, and the fines and jail terms climb for a second and a third conviction.

The $1,000 line is s. 7048, as it reads since its last amendment took effect on January 1, 2026. The license law does not apply to work on one project where the aggregate contract price for labor, materials and everything else is less than $1,000 and no building permit is needed. The exemption is lost by anyone who advertises as a contractor or employs someone to do or help with the work, and it does not cover a job split into small contracts to evade the law. The NASCLA release puts the same rule as three triggers: a project that needs a building permit, uses employee labor, or is valued at $1,000 or more in combined labor and material.

The advertising charge is its own offense. Under s. 7027.1, advertising construction work without a license in the classification advertised is a misdemeanor with a fine of $700 to $1,000 on top of any other punishment.

The administrative citations are the registrar’s. Under s. 7028.7, a citation to an unlicensed person carries an order of abatement and a civil penalty of $1,500 to $15,000, the range in force since July 1, 2026 (the July 2026 fine changes cover the old floor).

FY 2025/26 in numbers

The enforcement report’s headline figures for the fiscal year, as the report states them:

MeasureFY 2025/26
Complaints received21,166
Licenses revoked677
Licenses suspended556
Licensee citations, order of correction and fine809
Non-licensee citations, order of correction and fine635
Complaints referred to a prosecutor1,107
Cost recovery ordered$3,587,193
Cost recovery paid$525,081

The report adds a note: “An individual disciplinary case can have multiple entities and multiple outcomes.”

One row reaches straight into contract law. The report counts 193 violations of s. 7159(e) or s. 7159.5(a)(5) that resulted in a citation to a licensee. Section 7159.5(a)(5) bars a home improvement contractor from requesting or accepting any payment, other than the down payment, that exceeds the value of the work performed or material delivered, the payment rule CSLB pointed to in its release on the Anchored Tiny Homes charges.

CSLB’s unlicensed practice study counted 27 investigators for 58 counties, and one of its recommendations was a Budget Change Proposal to increase investigator staffing and expand sting operations.

Sources