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New Laws - 2004

SUMMARY OF MAJOR CHANGES TO CONTRACTOR LAW EFFECTIVE JAN 1, 2005

Business & Professions Code

7028.1 – Clairfies that all contractors, whether licensed or not, are subject to discipline for asbestos related violations.

7048 – Under existing law, unlicensed contractors are required to provide a written "Unlicensed Disclosure" notice for works of improvement under $500. This notice requirement has been eliminated.

7068 – Under existing law, an applicant for licensure convicted of a violation of Section 7028 (contracting without a license) may not apply for a license for one year from the date of the conviction. This amendment eliminates the one-year prohibition.

7069.1 – As part of CSLB's new fingerprint program, CSLB will be notified when a licensee or registrant has been arrested. Under this new section, the CSLB may request proof of the disposition of the arrest. The licensee or registrant is required to provide this proof within 90 days of the disposition and is subject to disciplinary action for failing to comply.

7071.9 – Effective January 1, 2007, this amendment increases the amount of the bond of qualifying individual (BQI) to $12,500 conforming it to the amount of the license bond. Currently the license bond is $10,000. It will increase to $12,500 on January 1, 2007.

7073 – This new section authorizes denial of licensure for a period not to exceed five years if the denial is based on a criminal conviction. In addition, the section requires the CSLB to develop criteria to be used in establishing the reapplication date. It also requires CSLB to notify the applicant of the approved reapplication date.

7083 – Requires all changes to a license record to be on a form prescribed by the Registrar.

7085 – This amendment expands the type of cases that are eligible for the arbitration program by including all works of improvement, not just home improvements as defined under Section 7151.

7090.1 – This amendment reduces the reinstatement period from one year to 90 days for suspended licensees who have failed to comply with the terms of a citation. After the 90 day suspension period, the license is revoked by operation of law.

7137 – This amendment eliminates the delinquent fee grace period for licensees who fail to renew their license timely. All contractors whose license expires on or after January 31, 2005 will be subject to the delinquent fee upon expiration of the license.

7159 – Under existing law, Section 7159 provides specific requirements that must be included in home improvement contracts. Effective July 1, 2005, Senate Bill 30 (See 7159 et seq) will replace Section 7159. Under the new law, contractors are required to include various disclosures and notices in their contracts. SB 30 also creates a new service and repair contract for jobs of $750 or less. A licensed contractor using a contract that meets all the new service and repair contract requirements can perform a service and/or a repair without running afoul of the three-day right to cancel.

Related Laws

Government Code

4216 – Anyone planning to excavate in California is required to contact the appropriate regional notification center a least two working days before beginning to excavate. Amendments have been made to Section 4216. Four changes are highlighted here: 1) A utility is required only to mark its own facilities. 2) Changes has been made to the list of persons exempt from the notification requirements. 3) The steps for compliance have been clarified: each contractor should have his or her own individual USA ticket. 4) Under existing law, an identification (ticket) number issued by the regional center is valid for 14 days. Under the new law, the ticket is valid for 28 days.

Penal Code

802 – This amendment expands the statute of limitations for specified violations of the Contractors License Law, including the Home Improvement provisions.

 
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