SECTIONS 7025-7034 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 7025-7034

7025. (a) "Members of the personnel of record" as used in this
chapter means every person listed in the records of the registrar as
then associated with a licensee.
(b) "Person" as used in this chapter includes an individual, a
firm, partnership, corporation, limited liability company,
association or other organization, or any combination thereof.
(c) "Qualifying person," "qualifying individual," or "qualifier,"
as used in this chapter, means a person who qualifies for a license
pursuant to Section 7068.

7026. "Contractor," for the purposes of this chapter, is synonymous
with "builder" and, within the meaning of this chapter, a contractor
is any person who undertakes to or offers to undertake to, or
purports to have the capacity to undertake to, or submits a bid to,
or does himself or herself or by or through others, construct, alter,
repair, add to, subtract from, improve, move, wreck or demolish any
building, highway, road, parking facility, railroad, excavation or
other structure, project, development or improvement, or to do any
part thereof, including the erection of scaffolding or other
structures or works in connection therewith, or the cleaning of
grounds or structures in connection therewith, or the preparation and
removal of roadway construction zones, lane closures, flagging, or
traffic diversions, or the installation, repair, maintenance, or
calibration of monitoring equipment for underground storage tanks,
and whether or not the performance of work herein described involves
the addition to, or fabrication into, any structure, project,
development or improvement herein described of any material or
article of merchandise. "Contractor" includes subcontractor and
specialty contractor. "Roadway" includes, but is not limited to,
public or city streets, highways, or any public conveyance.

7026.1. The term "contractor" includes all of the following:
(a) Any person not exempt under Section 7053 who maintains or
services air-conditioning, heating, or refrigeration equipment that
is a fixed part of the structure to which it is attached.
(b) Any person, consultant to an owner-builder, firm, association,
organization, partnership, business trust, corporation, or company,
who or which undertakes, offers to undertake, purports to have the
capacity to undertake, or submits a bid, to construct any building or
home improvement project, or part thereof.
(c) A temporary labor service agency that, as the employer,
provides employees for the performance of work covered by this
chapter. The provisions of this subdivision shall not apply if there
is a properly licensed contractor who exercises supervision in
accordance with Section 7068.1 and who is directly responsible for
the final results of the work. Nothing in this subdivision shall
require a qualifying individual, as provided in Section 7068, to be
present during the supervision of work covered by this chapter. A
contractor requesting the services of a temporary labor service
agency shall provide his or her license number to that temporary
labor service agency.
(d) Any person not otherwise exempt by this chapter, who performs
tree removal, tree pruning, stump removal, or engages in tree or limb
cabling or guying. The term contractor does not include a person
performing the activities of a nurseryperson who in the normal course
of routine work performs incidental pruning of trees, or guying of
planted trees and their limbs. The term contractor does not include a
gardener who in the normal course of routine work performs
incidental pruning of trees measuring less than 15 feet in height
after planting.
(e) Any person engaged in the business of drilling, digging,
boring, or otherwise constructing, deepening, repairing,
reperforating, or abandoning any water well, cathodic protection
well, or monitoring well.

7026.2. (a) For the purposes of this chapter, "contractor" includes
any person engaged in the business of the construction,
installation, alteration, repair, or preparation for moving of a
mobilehome or mobilehome accessory buildings and structures upon a
site for the purpose of occupancy as a dwelling.
(b) "Contractor" does not include the manufacturer of the
mobilehome or mobilehome accessory building or structure if it is
constructed at a place other than the site upon which it is installed
for the purpose of occupancy as a dwelling, and does not include the
manufacturer when the manufacturer is solely performing work in
compliance with the manufacturer's warranty. "Contractor" includes
the manufacturer if the manufacturer is engaged in onsite
construction, alteration, or repair of a mobilehome or mobilehome
accessory buildings and structures pursuant to specialized plans,
specifications, or models, or any work other than in compliance with
the manufacturer's warranty.
(c) "Contractor" does not include a seller of a manufactured home
or mobilehome who holds a retail manufactured home or mobilehome
dealer's license under Chapter 7 (commencing with Section 18045) of
Part 2 of Division 13 of the Health and Safety Code, if the
installation of the manufactured home or mobilehome is to be
performed by a licensed contractor and the seller certifies that fact
in writing to the buyer prior to the performance of the
installation. The certification shall include the name, business
address, and contractor's license number of the licensed contractor
by whom the installation will be performed.
(d) For the purposes of this chapter, the following terms have the
following meanings:
(1) "Mobilehome" means a vehicle defined in Section 18008 of the
Health and Safety Code.
(2) "Mobilehome accessory building or structure" means a building
or structure defined in Section 18008.5 of the Health and Safety
Code.
(3) "Manufactured home" means a structure defined in Section 18007
of the Health and Safety Code.

7026.3. For the purpose of this chapter, "contractor" includes any
person who installs or contracts for the installation of carpet
wherein the carpet is attached to the structure by any conventional
method as determined by custom and usage in the trade; except that a
seller of installed carpet who holds a retail furniture dealer's
license under Chapter 3 (commencing with Section 19000) of Division 8
shall not be required to have a contractor's license if the
installation of the carpet is performed by a licensed contractor and
the seller so certifies in writing to the buyer prior to the
performance of the installation, which certification shall include
the name, business address, and contractor's license number of the
licensed contractor by whom the installation will be performed.

7026.11. Notwithstanding any other provision of law, the
permissible scope of work for the General Manufactured Housing
Contractor (C-47) license classification set forth in Section 832.47
of Division 8 of Title 16 of the California Code of Regulations shall
include manufactured homes, as defined in Section 18007 of the
Health and Safety Code, mobilehomes, as defined in Section 18008 of
the Health and Safety Code, and multifamily manufactured homes, as
defined in Section 18008.7 of the Health and Safety Code.

7026.12. The installation of a fire protection system, excluding an
electrical alarm system, shall be performed only by a contractor
holding a fire protection contractor classification as defined in the
regulations of the board or by an owner-builder of an
owner-occupied, single-family dwelling, if not more than two
single-family dwellings on the same parcel are constructed within one
year, plans are submitted to and approved by the city, county, or
city and county authority, and the city, county, or city and county
authority inspects and approves the installation.

7027. Any person who advertises or puts out any sign or card or
other device after the effective date of this section which would
indicate to the public that he or she is a contractor, or who causes
his or her name or business name to be included in a classified
advertisement or directory after the effective date of this section
under a classification for construction or work of improvement
covered by this chapter is subject to the provisions of this chapter
regardless of whether his or her operations as a builder are
otherwise exempted.

7027.1. (a) It is a misdemeanor for any person to advertise for
construction or work of improvement covered by this chapter unless
that person holds a valid license under this chapter in the
classification so advertised, except that a licensed building or
engineering contractor may advertise as a general contractor.
(b) "Advertise," as used in this section, includes, but not by way
of limitation, the issuance of any card, sign, or device to any
person, the causing, permitting, or allowing of any sign or marking
on or in any building or structure, or in any newspaper, magazine, or
by airwave or any electronic transmission, or in any directory under
a listing for construction or work of improvement covered by this
chapter, with or without any limiting qualifications.
(c) A violation of this section is punishable by a fine of not
less than seven hundred dollars ($700) and not more than one thousand
dollars ($1,000), which fine shall be in addition to any other
punishment imposed for a violation of this section.
(d) If upon investigation, the registrar has probable cause to
believe that an unlicensed individual is in violation of this
section, the registrar may issue a citation pursuant to Section
7028.7 or 7099.10.

7027.2. Notwithstanding any other provision of this chapter, any
person not licensed pursuant to this chapter may advertise for
construction work or work of improvement covered by this chapter,
provided that he or she shall state in the advertisement that he or
she is not licensed under this chapter.

7027.3. Any person, licensed or unlicensed, who willfully and
intentionally uses, with intent to defraud, a contractor's license
number that does not correspond to the number on a currently valid
contractor's license held by that person, is punishable by a fine not
exceeding ten thousand dollars ($10,000), or by imprisonment in
state prison, or in county jail for not more than one year, or by
both that fine and imprisonment. The penalty provided by this section
is cumulative to the penalties available under all other laws of
this state. If, upon investigation, the registrar has probable cause
to believe that an unlicensed individual is in violation of this
section, the registrar may issue a citation pursuant to Section
7028.7.

7027.4. (a) It is a cause for discipline for any contractor to
advertise that he or she is "insured" or has insurance without
identifying in the advertisement the type of insurance, including,
for example, "commercial general liability insurance" or "workers'
compensation insurance" that is carried by the contractor. The
contractor may abbreviate the title of the type of insurance.
(b) It is cause for discipline for a contractor to advertise that
he or she is "bonded" if the reference is to a contractor's license
bond required pursuant to Section 7071.6 or to a disciplinary bond
required pursuant to Section 7071.8.
(c) "Advertise," as used in this section, includes, but is not
limited to, the issuance of any card, sign, or device to any person,
the causing, permitting, or allowing of any sign or marking on or in
any building or structure or business vehicle or in any newspaper,
magazine, or by airwave or any electronic transmission, or in any
directory under a listing for construction or work of improvement
covered by this chapter, for the direct or indirect purpose of
performing or offering to perform services that require a contractor'
s license.

7027.5. (a) A landscape contractor working within the
classification for which the license is issued may design systems or
facilities for work to be performed and supervised by that
contractor.
(b) Notwithstanding any other provision of this chapter, a
landscape contractor working within the classification for which the
license is issued may enter into a prime contract for the
construction of any of the following:
(1) A swimming pool, spa, or hot tub, provided that the
improvements are included within the landscape project that the
landscape contractor is supervising and the construction of any
swimming pool, spa, or hot tub is subcontracted to a single licensed
contractor holding a Swimming Pool (C-53) classification, as set
forth in Section 832.53 of Title 16 of the California Code of
Regulations, or performed by the landscape contractor if the
landscape contractor also holds a Swimming Pool (C-53)
classification. The contractor constructing the swimming pool, spa,
or hot tub may subcontract with other appropriately licensed
contractors for the completion of individual components of the
construction.
(2) An outdoor cooking center, provided that the improvements are
included within a residential landscape project that the contractor
is supervising. For purposes of this subdivision, "outdoor cooking
center" means an unenclosed area within a landscape that is used for
the cooking or preparation of food or beverages.
(3) An outdoor fireplace, provided that it is included within a
residential landscape project that the contractor is supervising and
is not attached to a dwelling.
(c) Work performed in connection with a residential landscape
project specified in paragraph (2) or (3) of subdivision (b) that is
outside of the field and scope of activities authorized to be
performed under the Landscape Contractor classification (C-27), as
set forth in Section 832.27 of Title 16 of the California Code of
Regulations, may only be performed by a landscape contractor if the
landscape contractor also either holds an appropriate specialty
license classification to perform the work or is licensed as a
general building contractor. If the landscape contractor neither
holds an appropriate specialty license classification to perform the
work nor is licensed as a general building contractor, the work shall
be performed by a specialty contractor holding the appropriate
license classification or by a general building contractor performing
work in accordance with the requirements of subdivision (b) of
Section 7057.
(d) A violation of this section shall be cause for disciplinary
action.

7028. (a) It is a misdemeanor for a person to engage in the
business or act in the capacity of a contractor within this state
without having a license therefor, unless the person is particularly
exempted from the provisions of this chapter.
(b) A first conviction for the offense described in this section
is punishable by a fine not exceeding five thousand dollars ($5,000)
or by imprisonment in a county jail not exceeding six months, or by
both that fine and imprisonment.
(c) If a person has been previously convicted of the offense
described in this section, unless the provisions of subdivision (d)
are applicable, the court shall impose a fine of 20 percent of the
contract price, or 20 percent of the aggregate payments made to, or
at the direction of, the unlicensed contractor, or five thousand
dollars ($5,000), whichever is greater, and, unless the sentence
prescribed in subdivision (d) is imposed, the person shall be
confined in a county jail for not less than 90 days, except in an
unusual case where the interests of justice would be served by
imposition of a lesser sentence or a fine. If the court imposes only
a fine or a jail sentence of less than 90 days for second or
subsequent convictions under this section, the court shall state the
reasons for its sentencing choice on the record.
(d) A third or subsequent conviction for the offense described in
this section is punishable by a fine of not less than five thousand
dollars ($5,000) nor more than the greater amount of ten thousand
dollars ($10,000) or 20 percent of the contract price, or 20 percent
of the aggregate payments made to, or at the direction of, the
unlicensed contractor, and by imprisonment in a county jail for not
more than one year or less than 90 days. The penalty provided by this
subdivision is cumulative to the penalties available under all other
laws of this state.
(e) A person who violates this section is subject to the penalties
prescribed in subdivision (d) if the person was named on a license
that was previously revoked and, either in fact or under law, was
held responsible for any act or omission resulting in the revocation.
(f) If the person engaging in the business of or acting in the
capacity of an unlicensed contractor has agreed to furnish materials
and labor on an hourly basis, "the contract price" for the purposes
of this section means the aggregate sum of the cost of materials and
labor furnished and the cost of completing the work to be performed.
(g) Notwithstanding any other provision of law, an indictment for
any violation of this section by the unlicensed contractor shall be
found or an information or complaint filed within four years from the
date of the contract proposal, contract, completion, or abandonment
of the work, whichever occurs last.
(h) For any conviction under this section, a person who utilized
the services of the unlicensed contractor is a victim of crime and is
eligible, pursuant to subdivision (f) of Section 1202.4 of the Penal
Code, for restitution for economic losses, regardless of whether
that person had knowledge that the contractor was unlicensed.

7028.1. It is a misdemeanor for any contractor, whether licensed or
unlicensed, to perform or engage in asbestos-related work, as
defined in Section 6501.8 of the Labor Code, without certification
pursuant to Section 7058.5 of this code, or to perform or engage in a
removal or remedial action, as defined in subdivision (d) of Section
7058.7, or, unless otherwise exempted by this chapter, to bid for
the installation or removal of, or to install or remove, an
underground storage tank, without certification pursuant to Section
7058.7. A contractor in violation of this section is subject to one
of the following penalties:
(a) Conviction of a first offense is punishable by a fine of not
less than one thousand dollars ($1,000) or more than three thousand
dollars ($3,000), and by possible revocation or suspension of any
contractor's license.
(b) Conviction of a subsequent offense requires a fine of not less
than three thousand dollars ($3,000) or more than five thousand
dollars ($5,000), or imprisonment in the county jail not exceeding
one year, or both the fine and imprisonment, and a mandatory action
to suspend or revoke any contractor's license.

7028.2. A criminal complaint pursuant to this chapter may be
brought by the Attorney General or by the district attorney or
prosecuting attorney of any city, in any county in the state with
jurisdiction over the contractor or employer, by reason of the
contractor's or employer's act, or failure to act, within that
jurisdiction. Any penalty assessed by the court shall be paid to the
office of the prosecutor bringing the complaint.

7028.3. In addition to all other remedies, when it appears to the
registrar, either upon complaint or otherwise, that a licensee has
engaged in, or is engaging in, any act, practice, or transaction
which constitutes a violation of this chapter whereby another person
may be substantially injured, or that any person, who does not hold a
state contractor's license in any classification, has engaged in, or
is engaging in, any act, practice, or transaction which constitutes
a violation of this chapter, whether or not there is substantial
injury, the registrar may, either through the Attorney General or
through the district attorney of the county in which the act,
practice, or transaction is alleged to have been committed, apply to
the superior court of that county or any other county in which such
person maintains a place of business or resides, for an injunction
restraining such person from acting in the capacity of a contractor
without a license in violation of this chapter, or from acting in
violation of this chapter when another person may be substantially
injured, and, upon a proper showing, a temporary restraining order, a
preliminary injunction, or a permanent injunction shall be granted.

7028.4. In addition to the remedies set forth in Section 7028.3, on
proper showing by (1) a licensed contractor, or an association of
contractors, (2) a consumer affected by the violation, (3) a district
attorney, or (4) the Attorney General, of a continuing violation of
this chapter by a person who does not hold a state contractor's
license in any classification, an injunction shall issue by a court
specified in Section 7028.3 at the request of any such party,
prohibiting such violation. The plaintiff in any such action shall
not be required to prove irreparable injury.

7028.5. It is unlawful for a person who is or has been a partner,
officer, director, manager, responsible managing employee,
responsible managing member, responsible managing manager, or
responsible managing officer of, or an individual who is listed in
the personnel of record of, a licensed partnership, corporation,
limited liability company, firm, association or other organization to
individually engage in the business or individually act in the
capacity of a contractor within this state without having a license
in good standing to so engage or act.

7028.6. The Registrar of Contractors is hereby empowered to issue
citations containing orders of abatement and civil penalties against
persons acting in the capacity of or engaging in the business of a
contractor within this state without having a license in good
standing to so act or engage.

7028.7. (a) If upon inspection or investigation, either upon
complaint or otherwise, the registrar has probable cause to believe
that a person is acting in the capacity of or engaging in the
business of a contractor or salesperson within this state without
having a license or registration in good standing to so act or
engage, and the person is not otherwise exempted from this chapter,
the registrar shall issue a citation to that person.
(b) Within 72 hours of receiving notice that a public entity is
intending to award, or has awarded, a contract to an unlicensed
contractor, the registrar shall give written notice to the public
entity that a citation may be issued if a contract is awarded to an
unlicensed contractor. If after receiving the written notice from the
registrar that the public entity has awarded or awards the contract
to an unlicensed contractor, the registrar may issue a citation to
the responsible officer or employee of the public entity as specified
in Section 7028.15.
(c) Each citation shall be in writing and shall describe with
particularity the basis of the citation. Notwithstanding Sections
125.9 and 148, each citation shall contain an order of abatement and
an assessment of a civil penalty in an amount not less than two
hundred dollars ($200) nor more than fifteen thousand dollars
($15,000).
(d) With the approval of the Contractors' State License Board, the
registrar shall prescribe procedures for the issuance of a citation
under this section. The board shall adopt regulations covering the
assessment of a civil penalty that shall give due consideration to
the gravity of the violation, and any history of previous violations.
(e) The sanctions authorized under this section shall be separate
from, and in addition to, all other remedies either civil or
criminal.

7028.8. Service of a citation issued under Section 7028.7 may be
made by certified mail at the last known business address or
residence address of the person cited.

7028.9. A citation under Section 7028.7 shall be issued by the
registrar within four years after the act or omission that is the
basis for the citation or within 18 months after the date of the
filing of the complaint with the registrar, whichever is later.

7028.10. Any person served with a citation under Section 7028.7 may
appeal to the registrar within 15 working days after service of the
citation with respect to violations alleged, scope of the order of
abatement, or amount of civil penalty assessed.

7028.11. If within 15 working days after service of the citation,
the person cited fails to notify the registrar that he or she intends
to appeal the citation, the citation shall be deemed a final order
of the registrar and not subject to review by any court or agency.
The 15-day period may be extended by the registrar for good cause.

7028.12. If the person cited under Section 7028.7 timely notifies
the registrar that he or she intends to contest the citation, the
registrar shall afford an opportunity for a hearing. The registrar
shall thereafter issue a decision, based on findings of fact,
affirming, modifying, or vacating the citation or directing other
appropriate relief. The proceedings under this section shall be
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, and the registrar shall have all the powers granted
therein.

7028.13. (a) After the exhaustion of the review procedures provided
for in Sections 7028.10 to 7028.12, inclusive, the registrar may
apply to the appropriate superior court for a judgment in the amount
of the civil penalty and an order compelling the cited person to
comply with the order of abatement. The application, which shall
include a certified copy of the final order of the registrar, shall
constitute a sufficient showing to warrant the issuance of the
judgment and order. If the cited person did not appeal the citation,
a certified copy of the citation and proof of service, and a
certification that the person cited is not or was not a licensed
contractor or applicant for a license at the time of issuance of the
citation, shall constitute a sufficient showing to warrant the
issuance of the judgment and order.
(b) Notwithstanding any other provision of law, the registrar may
delegate the collection of the civil penalty for any citation issued
to any person or entity legally authorized to engage in collections.
Costs of collection shall be borne by the person cited. The registrar
shall not delegate the authority to enforce the order of abatement.
(c) Notwithstanding any other provision of law, the registrar
shall have the authority to assign the rights to the civil penalty,
or a portion thereof, for adequate consideration. The assignee and
the registrar shall have all the rights afforded under the ordinary
laws of assignment of rights and delegation of duties. The registrar
shall not assign the order of abatement. The assignee may apply to
the appropriate superior court for a judgment based upon the assigned
rights upon the same evidentiary showing as set forth in subdivision
(a).
(d) Notwithstanding any other provision of law, including
subdivisions (a) and (b) of Section 340 of the Code of Civil
Procedure, the registrar or his or her designee or assignee shall
have four years from the date of the final order to collect civil
penalties except that the registrar or his or her designee or
assignee shall have 10 years from the date of the judgment to enforce
civil penalties on citations that have been converted to judgments
through the process described in subdivisions (a) and (c).

7028.14. Notwithstanding any other provision of the law, the
registrar may waive part of the civil penalty if the person against
whom the civil penalty is assessed satisfactorily completes all the
requirements for, and is issued, a contractor's license. Any
outstanding injury to the public shall be satisfactorily settled
prior to issuance of the license.

7028.15. (a) It is a misdemeanor for any person to submit a bid to
a public agency in order to engage in the business or act in the
capacity of a contractor within this state without having a license
therefor, except in any of the following cases:
(1) The person is particularly exempted from this chapter.
(2) The bid is submitted on a state project governed by Section
10164 of the Public Contract Code or on any local agency project
governed by Section 20103.5 of the Public Contract Code.
(b) If a person has been previously convicted of the offense
described in this section, the court shall impose a fine of 20
percent of the price of the contract under which the unlicensed
person performed contracting work, or four thousand five hundred
dollars ($4,500), whichever is greater, or imprisonment in the county
jail for not less than 10 days nor more than six months, or both.
In the event the person performing the contracting work has agreed
to furnish materials and labor on an hourly basis, "the price of the
contract" for the purposes of this subdivision means the aggregate
sum of the cost of materials and labor furnished and the cost of
completing the work to be performed.
(c) This section shall not apply to a joint venture license, as
required by Section 7029.1. However, at the time of making a bid as a
joint venture, each person submitting the bid shall be subject to
this section with respect to his or her individual licensure.
(d) This section shall not affect the right or ability of a
licensed architect, land surveyor, or registered professional
engineer to form joint ventures with licensed contractors to render
services within the scope of their respective practices.
(e) Unless one of the foregoing exceptions applies, a bid
submitted to a public agency by a contractor who is not licensed in
accordance with this chapter shall be considered nonresponsive and
shall be rejected by the public agency. Unless one of the foregoing
exceptions applies, a local public agency shall, before awarding a
contract or issuing a purchase order, verify that the contractor was
properly licensed when the contractor submitted the bid.
Notwithstanding any other provision of law, unless one of the
foregoing exceptions applies, the registrar may issue a citation to
any public officer or employee of a public entity who knowingly
awards a contract or issues a purchase order to a contractor who is
not licensed pursuant to this chapter. The amount of civil penalties,
appeal, and finality of such citations shall be subject to Sections
7028.7 to 7028.13, inclusive. Any contract awarded to, or any
purchase order issued to, a contractor who is not licensed pursuant
to this chapter is void.
(f) Any compliance or noncompliance with subdivision (e) of this
section, as added by Chapter 863 of the Statutes of 1989, shall not
invalidate any contract or bid awarded by a public agency during
which time that subdivision was in effect.
(g) A public employee or officer shall not be subject to a
citation pursuant to this section if the public employee, officer, or
employing agency made an inquiry to the board for the purposes of
verifying the license status of any person or contractor and the
board failed to respond to the inquiry within three business days.
For purposes of this section, a telephone response by the board shall
be deemed sufficient.

7028.16. A person who engages in the business or acts in the
capacity of a contractor, without having a license therefor, in
connection with the offer or performance of repairs to a residential
or nonresidential structure for damage caused by a natural disaster
for which a state of emergency is proclaimed by the Governor pursuant
to Section 8625 of the Government Code, or for which an emergency or
major disaster is declared by the President of the United States,
shall be punished by a fine up to ten thousand dollars ($10,000), or
by imprisonment in the state prison for 16 months, or for two or
three years, or by both that fine and imprisonment, or by a fine up
to one thousand dollars ($1,000), or by imprisonment in the county
jail not exceeding one year, or by both that fine and imprisonment.
In addition, a person who utilized the services of the unlicensed
contractor is a victim of crime regardless of whether that person had
knowledge that the contractor was unlicensed.

7028.17. (a) The failure of an unlicensed individual to comply with
a citation after it is final is a misdemeanor.
(b) Notwithstanding Section 1462.5 or 1463 of the Penal Code or
any other provision of law, any fine collected upon conviction in a
criminal action brought under this section shall be distributed as
follows:
(1) If the action is brought by a district attorney, any fine
collected shall be paid to the treasurer of the county in which the
judgment was entered to be designated for use by the district
attorney.
(2) If the action is brought by a city attorney or city
prosecutor, any fine collected shall be paid to the treasurer of the
city in which the judgment was entered, to be designated for use by
the city attorney.

7029. A joint venture license is a license issued to any
combination of individuals, corporations, limited liability
companies, partnerships, or other joint ventures, each of which holds
a current, active license in good standing. A joint venture license
may be issued in any classification in which at least one of the
entities is licensed. An active joint venture license shall be
automatically suspended by operation of law during any period in
which any member of the entity does not hold a current, active
license in good standing.

7029.1. (a) Except as provided in this section, it is unlawful for
any two or more licensees, each of whom has been issued a license to
act separately in the capacity of a contractor within this state, to
be awarded a contract jointly or otherwise act as a contractor
without first having secured a joint venture license in accordance
with the provisions of this chapter.
(b) Prior to obtaining a joint venture license, contractors
licensed in accordance with this chapter may jointly bid for the
performance of work covered by this section. If a combination of
licensees submit a bid for the performance of work for which a joint
venture license is required, a failure to obtain that license shall
not prevent the imposition of any penalty specified by law for the
failure of a contractor who submits a bid to enter into a contract
pursuant to the bid.
(c) A violation of this section constitutes a cause for
disciplinary action.

7029.5. Every plumbing contractor, electrical sign contractor, and
well-drilling contractor licensed under this chapter shall have
displayed on each side of each motor vehicle used in his or her
business, for which a commercial vehicle registration fee has been
paid pursuant to Article 3 (commencing with Section 9400) of Chapter
6 of Division 3 of the Vehicle Code, his or her name, permanent
business address, and contractor's license number, all in letters and
numerals not less than 1 1/2 inches high.
The identification requirements of this section shall also apply
to any drill rig used for the drilling of water wells.
Failure to comply with this section constitutes a cause for
disciplinary action.

7029.6. Except for contractors identified in Section 7029.5, every
contractor licensed under this chapter shall have displayed, in or on
each motor vehicle used in his or her construction business, for
which a commercial vehicle registration fee has been paid pursuant to
Article 3 (commencing with Section 9400) of Chapter 6 of Division 3
of the Vehicle Code, his or her business name and contractors'
license number in a clearly visible location in print type of at
least 72-point font or three-quarters of an inch in height and width.

7030. (a) Except for contractors writing home improvement contracts
pursuant to Section 7151.2 and contractors writing service and
repair contracts pursuant to Section 7159.10, every person licensed
pursuant to this chapter shall include the following statement in at
least 10-point type on all written contracts with respect to which
the person is a prime contractor:

"Contractors are required by law to be licensed and regulated by
the Contractors' State License Board which has jurisdiction to
investigate complaints against contractors if a complaint regarding a
patent act or omission is filed within four years of the date of the
alleged violation. A complaint regarding a latent act or omission
pertaining to structural defects must be filed within 10 years of the
date of the alleged violation. Any questions concerning a contractor
may be referred to the Registrar, Contractors' State License Board,
P.O. Box 26000, Sacramento, CA 95826."

(b) Every person licensed pursuant to this chapter shall include
the following statement in at least 12-point type in all home
improvement contracts written pursuant to Section 7151.2 and service
and repair contracts written pursuant to Section 7159.10:

"Information about the Contractors' State License Board (CSLB):
CSLB is the state consumer protection agency that licenses and
regulates construction contractors.
Contact CSLB for information about the licensed contractor you are
considering, including information about disclosable complaints,
disciplinary actions and civil judgments that are reported to CSLB.
Use only licensed contractors. If you file a complaint against a
licensed contractor within the legal deadline (usually four years),
CSLB has authority to investigate the complaint. If you use an
unlicensed contractor, CSLB may not be able to help you resolve your
complaint. Your only remedy may be in civil court, and you may be
liable for damages arising out of any injuries to the unlicensed
contractor or the unlicensed contractor's employees.
For more information:
Visit CSLB's Web site at www.cslb.ca.gov
Call CSLB at 800-321-CSLB (2752)
Write CSLB at P.O. Box 26000, Sacramento, CA 95826."

(c) Failure to comply with the notice requirements set forth in
subdivision (a) or (b) of this section is cause for disciplinary
action.
(d) This section shall become operative on January 1, 2006.

7030.1. (a) A contractor, who has his or her license suspended or
revoked two or more times within an eight-year period, shall disclose
either in capital letters in 10-point roman boldface type or in
contrasting red print in at least 8-point roman boldface type, in a
document provided prior to entering into a contract to perform work
on residential property with four or fewer units, any disciplinary
license suspension, or license revocation during the last eight years
resulting from any violation of this chapter by the contractor,
whether or not the suspension or revocation was stayed.
(b) The disclosure notice required by this section may be provided
in a bid, estimate, or other document prior to entering into a
contract.
(c) A violation of this section is subject to the following
penalties:
(1) A penalty of one thousand dollars ($1,000) shall be assessed
for the first violation.
(2) A penalty of two thousand five hundred dollars ($2,500) shall
be assessed for the second violation.
(3) A penalty of five thousand dollars ($5,000) shall be assessed
for a third violation in addition to a one-year suspension of license
by operation of law.
(4) A fourth violation shall result in the revocation of license
in accordance with this chapter.

7030.5. Every person licensed pursuant to this chapter shall
include his license number in: (a) all construction contracts; (b)
subcontracts and calls for bid; and (c) all forms of advertising, as
prescribed by the registrar of contractors, used by such a person.

7031. (a) Except as provided in subdivision (e), no person engaged
in the business or acting in the capacity of a contractor, may bring
or maintain any action, or recover in law or equity in any action, in
any court of this state for the collection of compensation for the
performance of any act or contract where a license is required by
this chapter without alleging that he or she was a duly licensed
contractor at all times during the performance of that act or
contract, regardless of the merits of the cause of action brought by
the person, except that this prohibition shall not apply to
contractors who are each individually licensed under this chapter but
who fail to comply with Section 7029.
(b) Except as provided in subdivision (e), a person who utilizes
the services of an unlicensed contractor may bring an action in any
court of competent jurisdiction in this state to recover all
compensation paid to the unlicensed contractor for performance of any
act or contract.
(c) A security interest taken to secure any payment for the
performance of any act or contract for which a license is required by
this chapter is unenforceable if the person performing the act or
contract was not a duly licensed contractor at all times during the
performance of the act or contract.
(d) If licensure or proper licensure is controverted, then proof
of licensure pursuant to this section shall be made by production of
a verified certificate of licensure from the Contractors' State
License Board which establishes that the individual or entity
bringing the action was duly licensed in the proper classification of
contractors at all times during the performance of any act or
contract covered by the action. Nothing in this subdivision shall
require any person or entity controverting licensure or proper
licensure to produce a verified certificate. When licensure or proper
licensure is controverted, the burden of proof to establish
licensure or proper licensure shall be on the licensee.
(e) The judicial doctrine of substantial compliance shall not
apply under this section where the person who engaged in the business
or acted in the capacity of a contractor has never been a duly
licensed contractor in this state. However, notwithstanding
subdivision (b) of Section 143, the court may determine that there
has been substantial compliance with licensure requirements under
this section if it is shown at an evidentiary hearing that the person
who engaged in the business or acted in the capacity of a contractor
(1) had been duly licensed as a contractor in this state prior to
the performance of the act or contract, (2) acted reasonably and in
good faith to maintain proper licensure, (3) did not know or
reasonably should not have known that he or she was not duly licensed
when performance of the act or contract commenced, and (4) acted
promptly and in good faith to reinstate his or her license upon
learning it was invalid.
(f) The exceptions to the prohibition against the application of
the judicial doctrine of substantial compliance found in subdivision
(e) shall apply to all contracts entered into on or after January 1,
1992, and to all actions or arbitrations arising therefrom, except
that the amendments to subdivisions (e) and (f) enacted during the
1994 portion of the 1993-94 Regular Session of the Legislature shall
not apply to either of the following:
(1) Any legal action or arbitration commenced prior to January 1,
1995, regardless of the date on which the parties entered into the
contract.
(2) Any legal action or arbitration commenced on or after January
1, 1995, if the legal action or arbitration was commenced prior to
January 1, 1995, and was subsequently dismissed.

7031.5. Each county or city which requires the issuance of a permit
as a condition precedent to the construction, alteration,
improvement, demolition or repair of any building or structure shall
also require that each applicant for such a permit file as a
condition precedent to the issuance of a permit a statement which he
has prepared and signed stating that the applicant is licensed under
the provisions of this chapter, giving the number of the license and
stating that it is in full force and effect, or, if the applicant is
exempt from the provisions of this chapter, the basis for the alleged
exemption.
Any violation of this section by any applicant for a permit shall
be subject to a civil penalty of not more than five hundred dollars
($500).

7032. Nothing in this chapter shall limit the power of a city or
county to regulate the quality and character of installations made by
contractors through a system of permits and inspections which are
designed to secure compliance with and aid in the enforcement of
applicable state and local building laws, or to enforce other local
laws necessary for the protection of the public health and safety.
Nothing in this chapter shall limit the power of a city or county to
adopt any system of permits requiring submission to and approval by
the city or county of plans and specifications for an installation
prior to the commencement of construction of the installation.
Cities or counties may direct complaints to the registrar against
licensees based upon determinations by city or county enforcement
officers of violations by such licensees of codes the enforcement of
which is the responsibility of the complaining city or county. Such
complaints shall to the extent determined to be necessary by the
registrar be given priority in processing over other complaints.
Nothing contained in this section shall be construed as
authorizing a city or county to enact regulations relating to the
qualifications necessary to engage in the business of contracting.

7033. Every city or city and county which requires the issuance of
a business license as a condition precedent to engaging, within the
city or city and county, in a business which is subject to regulation
under this chapter, shall require that each licensee and each
applicant for issuance or renewal of such license shall file, or have
on file, with such city or city and county, a signed statement that
such licensee or applicant is licensed under the provisions of this
chapter and stating that the license is in full force and effect, or,
if such licensee or applicant is exempt from the provisions of this
chapter, he shall furnish proof of the facts which entitle him to
such exemption.

7034. (a) No contractor who is required to be licensed under this
chapter shall insert in any contract, or be a party, with a
subcontractor who is licensed under this chapter to any contract
which contains, a provision, clause, covenant, or agreement which is
void or unenforceable under Section 2782 of the Civil Code.
(b) No contractor who is required to be licensed under this
chapter shall require a waiver of lien rights from any subcontractor,
employee, or supplier in violation of Section 3262 of the Civil
Code.

7034. (a) No contractor that is required to be licensed under this
chapter shall insert in any contract, or be a party, with a
subcontractor that is licensed under this chapter to any contract
which contains a provision, clause, covenant, or agreement which is
void or unenforceable under Section 2782 of the Civil Code.
(b) No contractor that is required to be licensed under this
chapter shall require a waiver of lien rights from any subcontractor,
employee, or supplier in violation of Section 8122 of the Civil
Code.