SECTIONS 7000-7020 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 7000-7020

7000. This chapter constitutes, and may be cited as, the
Contractors' State License Law.

7000.2. Nothing in this code shall be interpreted to prohibit
cities, counties, and cities and counties from requiring contractors
to show proof that they are in compliance with local business tax
requirements of the entity prior to issuing any city, county, or city
and county permit. Nothing in this code shall be interpreted to
prohibit cities, counties, and cities and counties from denying the
issuance of a permit to a licensed contractor who is not in
compliance with local business tax requirements.
Any business tax required or collected as part of this process
shall not exceed the amount of the license tax or license fee
authorized by Section 37101 of the Government Code or Section 16000
of the Business and Professions Code.

7000.5. (a) There is in the Department of Consumer Affairs a
Contractors' State License Board, which consists of 15 members.
(b) The repeal of this section renders the board subject to the
review required by Division 1.2 (commencing with Section 473).
However, the review of this board by the department shall be limited
to only those unresolved issues identified by the Joint Committee on
Boards, Commissions, and Consumer Protection.
(c) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
The repeal of this section renders the board subject to the review
required by Division 1.2 (commencing with Section 473).

7000.6. Protection of the public shall be the highest priority for
the Contractors' State License Board in exercising its licensing,
regulatory, and disciplinary functions. Whenever the protection of
the public is inconsistent with other interests sought to be
promoted, the protection of the public shall be paramount.

7000.6. Protection of the public shall be the highest priority for
the Contractors' State License Board in exercising its licensing,
regulatory, and disciplinary functions. Whenever the protection of
the public is inconsistent with other interests sought to be
promoted, the protection of the public shall be paramount.

7001. All members of the board, except the public members, shall be
contractors actively engaged in the contracting business, have been
so engaged for a period of not less than five years preceding the
date of their appointment and shall so continue in the contracting
business during the term of their office. No one, except a public
member, shall be eligible for appointment who does not at the time
hold an unexpired license to operate as a contractor.
The public members shall not be licentiates of the board.

7002. (a) One member of the board shall be a general engineering
contractor, two members shall be general building contractors, two
members shall be specialty contractors, one member shall be a member
of a labor organization representing the building trades, one member
shall be an active local building official, and eight members shall
be public members, one of whom shall be from a statewide senior
citizen organization.
(b) No public member shall be a current or former licensee of the
board or a close family member of a licensee or be currently or
formerly connected with the construction industry or have any
financial interest in the business of a licensee of the board. Each
public member shall meet all of the requirements for public
membership on a board as set forth in Chapter 6 (commencing with
Section 450) of Division 1. Notwithstanding the provisions of this
subdivision and those of Section 450, a representative of a labor
organization shall be eligible for appointment to serve as a public
member of the board.
(c) Each contractor member of the board shall be of recognized
standing in his or her branch of the contracting business and hold an
unexpired license to operate as a contractor. In addition, each
contractor member shall, as of the date of his or her appointment, be
actively engaged in the contracting business and have been so
engaged for a period of not less than five years. Each contractor
member shall remain actively engaged in the contracting business
during the entire term of his or her membership on the board.
(d) Each member of the board shall be at least 30 years of age and
of good character. In addition, each member shall have been a
citizen and resident of the State of California for at least five
years next preceding his or her appointment.
(e) For the purposes of construing this article, the terms
"general engineering contractor," "general building contractor," and
"specialty contractor" shall have the meanings given in Article 4
(commencing with Section 7055) of this chapter.

7003. Except as otherwise provided, an appointment to fill a
vacancy caused by the expiration of the term of office shall be for a
term of four years and shall be filled, except for a vacancy in the
term of a public member, by a member from the same branch of the
contracting business as was the branch of the member whose term has
expired. A vacancy in the term of a public member shall be filled by
another public member. Each member shall hold office until the
appointment and qualification of his or her successor or until the
office is deemed to be vacant pursuant to Section 1774 of the
Government Code, whichever first occurs.
Vacancies occurring in the membership of the board for any cause
shall be filled by appointment for the balance of the unexpired term.
No person shall serve as a member of the board for more than two
consecutive terms.
The Governor shall appoint four of the public members, including
the public member who is from a statewide senior citizen
organization, the local building official, the member of a labor
organization representing the building trades, and the five
contractor members qualified as provided in Section 7002. The Senate
Rules Committee and the Speaker of the Assembly shall each appoint
two public members.

7005. The Governor may remove any member of the board for
misconduct, incompetency or neglect of duty.

7006. The board shall meet at least once each calendar quarter for
the purpose of transacting business as may properly come before it.
Special meetings of the board may be held at times as the board
may provide in its bylaws. Four members of the board may call a
special meeting at any time.

7007. Eight members constitute a quorum at a board meeting.
Due notice of each meeting and the time and place thereof shall be
given each member in the manner provided by the bylaws.

7008. The board may appoint such committees and make such rules and
regulations as are reasonably necessary to carry out the provisions
of this chapter. Such rules and regulations shall be adopted in
accordance with the provisions of the Administrative Procedure Act.

7009. Any member or committee of the board may administer oaths and
may take testimony and proofs concerning all matters within the
jurisdiction of the board.

7010. The board is vested with all functions and duties relating to
the administration of this chapter, except those functions and
duties vested in the director under the provisions of Division I of
this code.

7011. The board, by and with the approval of the director, shall
appoint a registrar of contractors and fix his or her compensation.
The registrar shall be the executive officer and secretary of the
board and shall carry out all of the administrative duties as
provided in this chapter and as delegated to him or her by the board.
For the purpose of administration of this chapter, there may be
appointed a deputy registrar, a chief reviewing and hearing officer,
and, subject to Section 159.5, other assistants and subordinates as
may be necessary.
Appointments shall be made in accordance with the provisions of
civil service laws.
This section shall remain in effect only until January 1, 2012,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2012, deletes or extends that date.

7011.3. The registrar shall not assess a civil penalty against a
licensed contractor who has been assessed a specified civil penalty
by the Labor Commissioner under Section 1020 or 1022 of the Labor
Code for the same offense.

7011.4. (a) Notwithstanding Section 7011, there is in the
Contractors' State License Board, a separate enforcement unit which
shall rigorously enforce this chapter prohibiting all forms of
unlicensed activity.
(b) Persons employed as enforcement representatives in this unit
and designated by the Director of Consumer Affairs are not peace
officers and are not entitled to safety member retirement benefits.
They do not have the power of arrest. However, they may issue a
written notice to appear in court pursuant to Chapter 5c (commencing
with Section 853.5) of Title 3 of Part 2 of the Penal Code.

7011.5. Persons employed as investigators of the Special
Investigations Unit of the Contractors' State License Board and
designated by the Director of Consumer Affairs have the authority of
peace officers while engaged in exercising the powers granted or
performing the duties imposed upon them in investigating the laws
administered by the Contractors' State License Board or commencing
directly or indirectly any criminal prosecution arising from any
investigation conducted under these laws. All persons herein referred
to shall be deemed to be acting within the scope of employment with
respect to all acts and matters in this section set forth.

7011.7. (a) The registrar shall review and investigate complaints
filed in a manner consistent with this chapter and the Budget Act. It
is the intent of the Legislature that complaints be reviewed and
investigated as promptly as resources allow.
(b) The board shall set as a goal the improvement of its
disciplinary system so that an average of no more than six months
elapses from the receipt of a complaint to the completion of an
investigation.
(c) Notwithstanding subdivision (a), the goal for completing the
review and investigation of complaints that, in the opinion of the
board, involve complex fraud issues or complex contractual
arrangements, should be no more than one year.

7011.8. (a) Any person who reports to, or causes a complaint to be
filed with, the Contractors' State License Board that a person
licensed by that entity has engaged in professional misconduct,
knowing the report or complaint to be false, is guilty of an
infraction punishable by a fine not to exceed one thousand dollars
($1,000).
(b) The board may notify the appropriate district attorney or city
attorney that a person has made or filed what the entity believes to
be a false report or complaint against a licensee.

7012. The registrar, with the approval of the board and the
director, may, when funds are available, cooperate in the enforcement
of governmental legislation relating to the construction industry,
and, except as provided by Section 159.5, shall appoint such
assistants as may be necessary therefor.

7013. The board may in its discretion review and sustain or reverse
by a majority vote any action or decision of the registrar.
This section shall apply to any action, decision, order, or
proceeding of the registrar conducted in accordance with the
provisions of Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.

7013.5. In all application, citation, or disciplinary proceedings
pursuant to this chapter and conducted in accordance with the
provisions of Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code, the testimony of a
witness given in any contested civil or criminal action or special
proceeding, in any state or before any governmental body or agency,
to which the licensee or person complained against is a party, or in
whose behalf the action or proceeding is prosecuted or defended, may
be received in evidence, so far as relevant and material to the
issues in the proceedings, by means of a duly authenticated
transcript of that testimony and without proof of the unavailability
of the witness; provided that the registrar may order the production
of and testimony by that witness, in lieu of or in addition to
receiving a transcript of his or her testimony and may decline to
receive in evidence the transcript of testimony, in whole or in part,
when it appears that the testimony was given under circumstances
that did not require or allow an opportunity for full
cross-examination.

7014. The board may procure equipment and records necessary to
carry out the provisions of this chapter.

7015. The board shall adopt a seal for its own use. The seal shall
have the words "Contractors' State License Board, State of
California, Department of Consumer Affairs," and the care and custody
thereof shall be in the hands of the registrar.

7016. Each member of the board shall receive a per diem and
expenses as provided in Section 103.

7017.3. The Contractors' State License Board shall report annually
to the Legislature, not later than October 1 of each year, the
following statistical information for the prior fiscal year. The
following data shall be reported on complaints filed with the board
against licensed contractors, registered home improvement
salespersons, and unlicensed persons acting as licensees or
registrants:
(a) The number of complaints received by the board categorized by
source, such as public, trade, profession, government agency, or
board-initiated, and by type of complaint, such as licensee or
nonlicensee.
(b) The number of complaints closed prior to referral for field
investigation, categorized by the reason for the closure, such as
settled, referred for mandatory arbitration, or referred for
voluntary arbitration.
(c) The number of complaints referred for field investigation
categorized by the type of complaint, such as licensee or
nonlicensee.
(d) The number of complaints closed after referral for field
investigation categorized by the reason for the closure, such as
settled, referred for mandatory arbitration, or referred for
voluntary arbitration.
(e) For the board's Intake/Mediation Center and the board's
Investigation Center closures, respectively, the total number of
complaints closed prior to a field investigation per consumer
services representative, and the total number of complaints closed
after referral for a field investigation per enforcement
representative. Additionally, the board shall report the total number
of complaints closed by other board staff during the year.
(f) The number of complaints pending at the end of the fiscal year
grouped in 90-day increments, and the percentage of total complaints
pending, represented by the number of complaints in each grouping.
(g) The number of citations issued to licensees categorized by the
type of citation such as order of correction only or order of
correction and fine, and the number of citations issued to licensees
that were vacated or withdrawn.
(h) The number of citations issued to nonlicensees and the number
of these citations that were vacated or withdrawn.
(i) The number of complaints referred to a local prosecutor for
criminal investigation or prosecution, the number of complaints
referred to the Attorney General for the filing of an accusation, and
the number of complaints referred to both a local prosecutor and the
Attorney General, categorized by type of complaint, such as licensee
and nonlicensee.
(j) Actions taken by the board, including, but not limited to, the
following:
(1) The number of disciplinary actions categorized by type, such
as revocations or suspensions, categorized by whether the
disciplinary action resulted from an accusation, failure to comply
with a citation, or failure to comply with an arbitration award.
(2) The number of accusations dismissed or withdrawn.
(k) For subdivisions (g) and (j), the number of cases containing
violations of Sections 7121 and 7121.5, and paragraph (5) of
subdivision (a) of Section 7159.5, categorized by section.
(l) The number of interim suspension orders sought, the number of
interim suspension orders granted, the number of temporary
restraining orders sought, and the number of temporary restraining
orders granted.
(m) The amount of cost recovery ordered and the amount collected.
(n) Case aging data, including data for each major stage of the
enforcement process, including the following:
(1) The average number of days from the filing of a complaint to
its closure by the board's Intake/Mediation Center prior to the
referral for an investigation categorized by the type of complaint,
such as licensee or nonlicensee.
(2) The average number of days from the referral of a complaint
for an investigation to its closure by the Investigation Center
categorized by the type of complaint, such as licensee or
nonlicensee.
(3) The average number of days from the filing of a complaint to
the referral of the completed investigation to the Attorney General.
(4) The average number of days from the referral of a completed
investigation to the Attorney General to the filing of an accusation
by the Attorney General.
(5) The average number of days from the filing of an accusation to
the first hearing date or date of a stipulated settlement.
(6) The average number of days from the receipt of the
Administrative Law Judge's proposed decision to the registrar's final
decision.

7017.5. By the close of the first business day of each week, the
board shall post the following home improvement salesperson
registration information on its Web site:
(a) The earliest enrolled date of the unprocessed applications on
file at the close of the prior business day.
(b) The earliest enrolled date of an application for which a
registration number has been issued at the time of the posting
required by this section.

7019. (a) If funding is made available for that purpose, the board
may contract with licensed professionals, as appropriate, for the
site investigation of consumer complaints.
(b) The board may contract with other professionals, including,
but not limited to, interpreters and manufacturer's representatives,
whose skills or expertise are required to aid in the investigation or
prosecution of a licensee, registrant, applicant for a license or
registration, or those subject to licensure or registration by the
board.
(c) The registrar shall determine the rate of reimbursement for
those individuals providing assistance to the board pursuant to this
section. All reports shall be completed on a form prescribed by the
registrar.
(d) As used in this section, "licensed professionals" means, but
is not limited to, engineers, architects, landscape architects,
geologists, and accountants licensed, certificated, or registered
pursuant to this division.

7020. The board shall maintain a computerized enforcement tracking
system for consumer complaints.