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Minor Works | 29
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Minor Works
CA Bill Enables the Unlicensed to Perform Construction Work
SACRAMENTO, CA
 
Unlicensed "handymen" will soon be able to perform "casual, minor or inconsequential work" totalling $500 or less. Prior to Governor Wilson's signature on Senate Bill 2217, unlicensed individuals could perform construction work only if labor and materials come to less than $300. Authored by Senator Jack O'Connell (D-Carpinteria) and sponsored by the California Association of Realtors, SB 2217 went into effect this January. The Realtors asserted that the $300 exemption amount, which was enacted in 1986, should be adjusted for inflation.
 
The California Landscape Contractors Association (CLCA) and other construction industry associations vehemently opposed the bill. CLCA maintained that it was harmful to consumers and placed licensed contractors at a disadvantage when competing with unlicensed operators for small repair jobs. Licensed contractors must purchase a license bond and workers' compensation insurance, and comply with numerous laws. Unlicensed home improvement "handymen" can charge significantly lower prices because they generally do not have to do any of these things.
 
In an effort to torpedo the bill, CLCA suggested an amendment to provide for discipline against a real estate broker or sales agent's license for referring an unlicensed individual to perform repairs in connection with a property transaction involving work over the exemption limit. Other construction industry associations tried to thwart the bill with "poison pill" amendments of their own. These efforts were unsuccessful, and the bill moved through the legislature.
 
CLCA was able to include an amendment that requires unlicensed individuals to disclose to the purchaser that: they are not licensed; that state law requires appropriate licensure for anyone who contracts for construction work over $500; and the state board may be unable to assist in disputes with unlicensed handymen.
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