New Penalties for Unlicensed Contractors

Increased fines and jail time are among new laws and regulations that took effect on January 1, 2010. Another recently adopted regulation also changes the current definition of "advertising" for contractors to include any electronic transmission. Investigators from the Contractors State License Board warn residents of financial predators, such as unlicensed, uninsured contractors.

Assembly Bill 370 (Eng-Monterey Park) increases the penalties for unlicensed contracting that are identified in Business & Professions (B&P) Code Section 7028. As of January 1, 2010, a first offense will be punishable by up to a $5,000 fine and/or six months in county jail. A second offense will be punishable by 20 percent of the contract price, or aggregate payments to the unlicensed contractor, or $5,000, whichever is greater, and not less than 90 days in county jail. A third offense would be subject to a fine not less than $5,000 nor greater than $10,000 or 20 percent of the contract price, and a county jail sentence between 90 days and one year. B&P Code requires that all home improvement jobs valued at $500 or more for labor and materials must be done by a licensed contractor. The bill also amends the Code to include that anybody who uses an unlicensed contractor is a victim entitled to restitution, regardless of whether they knew the contractor was unlicensed.

Another law, AB 457 (Monning-Santa Cruz), ensures that consumers will be notified if a mechanic?EUR??,,????'?????<