CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOK v - CSLB

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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOK

v

TABLE OF CONTENTS

Page

About this Book ................................................................................. xiii

Summary of Recent Changes to Construction or

Contractors¡¯ Law ........................................................................ xv

Sections Affected by 2020 Legislation............................................... xix

CSLB History & Background ........................................................... xxv

CSLB Mission................................................................................. xxvii

Contractors State License Board Offices & Test Centers ............... xxix

Reference Sections ................................................................................ 1

Section I. The California Contractor License

Chapter 1.

Becoming a California Licensed Contractor ............... 3

General Requirements ................................................ 3

Work Experience Requirements ................................. 5

License Classifications ................................................ 8

Applying for a License............................................... 13

Licensing Examinations............................................ 18

Issuing a License....................................................... 23

Financial Requirements ............................................ 25

Chapter 2.

Your Existing License: Maintaining

and Changing It ........................................................ 27

Bonds......................................................................... 27

Judgments and Outstanding Liabilities ................... 30

Workers¡¯ Compensation Insurance Coverage ........... 33

Liability Insurance Coverage for Limited

Liability Companies .................................................. 33

Adding a Classification to an Existing License......... 34

Changes in Personnel................................................ 35

Changes in Business Name or Address .................... 37

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THE CALIFORNIA LICENSE LAW & REFERENCE BOOK

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Changes in Business Type ........................................ 38

Inactivating and Reactivating a License................... 39

Renewing Your License ............................................. 42

Cancellation of a License .......................................... 44

Chapter 3.

Access to Licensee Information ................................. 47

Available Documents, Complaint Records,

Fees ........................................................................... 47

Information Regarding Individual License

Records ...................................................................... 47

Information Regarding Accessing Large Quantities

of License Information ............................................... 48

Information Regarding Pending Application

Records ...................................................................... 49

Information Regarding Legal Action Against

Contractors................................................................ 50

Documents Available from CSLB ............................. 51

Chapter 4.

Enforcement Procedures: Complaints and

Citations .................................................................... 55

Complaints Against Licensed Contractors................ 55

Addressing Complaints Against Unlicensed

Contractors................................................................ 58

Section II. Home Improvement

Chapter 5.

Home Improvement .................................................. 61

Home Improvement Contractor ................................ 61

Home Improvement Contracts .................................. 61

Home Warranties ...................................................... 63

Home Improvement Salesperson

Registration ............................................................... 63

Registrar-Approved Joint Control

Agreements ............................................................... 65

Joint Control Addendum ........................................... 67

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CALIFORNIA CONTRACTORS LICENSE LAW & REFERENCE BOOK

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Mechanics Lien Warning .......................................... 69

Section III. Business Management

Chapter 6.

Managing a Business ................................................ 71

The Contractor Manager........................................... 71

Principles of Management ........................................ 72

Establishing Your Business ...................................... 74

Financial Responsibility and Control ....................... 86

Financial Management ............................................. 97

Equity Funds............................................................. 98

Debt ........................................................................... 98

Operations Management........................................... 99

Legal Considerations and Remedies ....................... 105

California Mechanics Liens and Stop Notices ........ 110

Glossary of Terms Associated with

Mechanics Liens ...................................................... 116

Expert Advisors....................................................... 120

Bidding on Government Contracts ......................... 120

Section IV. Construction Standards and Safety Regulations

Chapter 7.

Safety and Health in Construction ......................... 123

Responsible Agencies .............................................. 123

Construction Safety Legal Requirements ............... 125

Multiple Employer Worksites ................................. 126

Injury and Illness Prevention Program (IIPP)........ 127

Employee Complaint Rights and Protections ......... 130

Injury and Illness Reporting and Recordkeeping

Requirements .......................................................... 130

Permits .................................................................... 132

Variances................................................................. 133

Investigations of Unsafe Conditions ....................... 133

Hazardous Substances ............................................ 135

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THE CALIFORNIA LICENSE LAW & REFERENCE BOOK

viii

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Carcinogen Control ................................................. 138

Confined Spaces ...................................................... 142

Excavations and Trenches ...................................... 142

How to Obtain Additional Information ................... 143

Chapter 8.

Regional Notification Centers: Underground

Service Alert............................................................ 147

Chapter 9.

Preservation of Native American Remains ............. 151

Reporting Requirement........................................... 151

Penalties.................................................................. 152

Additional Information ........................................... 152

Chapter 10.

Construction of Wells .............................................. 153

License Required for Water Wells........................... 153

Reporting Requirements ......................................... 153

California Department of Water Resources

Regional Offices....................................................... 155

Well Standards........................................................ 156

Law Sections .................................................................................... 157

Section V. The Department of Consumer Affairs

Chapter 11.

Laws Governing the Department of

Consumer Affairs .................................................... 159

General Provisions .................................................. 160

The Department ...................................................... 176

The Director of Consumer Affairs ........................... 210

Funds of the Department ........................................ 219

Consumer Affairs .................................................... 224

Public Members....................................................... 231

Licensee................................................................... 233

Dispute Resolution Programs ................................. 236

Joint Committee on Boards, Commissions,

and Consumer Protection........................................ 243

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