Changes to CA Contractors License Law

California Senate Bill 1914, authored by the state Senate Business and Professions Committee and signed by Gov. Arnold Schwarzenegger, makes several important changes to Contractors' License Law. SB 1914 eliminates the 30-day grace period that has allowed licensed contractors to renew their expired licenses without a delinquent fee. The new law requires that licenses expiring on or after January 31 will no longer have a renewal grace period and will be subject to a delinquent fee if a renewal application is not acceptable by the Contractors State License Board and postmarked by the expiration date of the license.

The CSLB, which requested the change, felt that the grace period in previous law was confusing in that it led contractors to believe that their licenses had not expired during the 30-day grace period, when it fact the licenses had expired.

The fee for a delinquent active license renewal is $450 ($300 for the renewal fee and $150 for the delinquent fee). The fee for a delinquent inactive license renewal is $225 ($150 for the renewal fee and $75 for the delinquent fee).

Effective January 1, SB 1914 also removes from law a required ?EUR??,,????'??minor works?EUR??,,????'?? notice for unlicensed individuals who do construction work under $500. This notice, required by law only a few years ago, was intended to alert owners that:

• the person making the bid or entering into a contract to perform work for less than $500 was not a licensed contractor,
• state law requires a license if the job is $500 or more, and
• the CSLB may be unable to assist if a complaint is filed against an unlicensed person.

The CSLB requested this change because the notice requirement was too difficult to enforce and hardly anyone doing work under $500 was complying with it.

Effective January 1, SB 1914 additionally shortens the time period in which a license can be reinstated after being suspended for failure to pay a civil penalty, or noncompliance with an order of correction or an order to pay a specified sum to an injured party in lieu of correction. The time period was a year. It is now 90 days.

If the license is not reinstated within 90 days, the license and all licenses issued to the licensee are revoked.