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New Laws - 2008

SUMMARY OF MAJOR CHANGES TO CONTRACTOR LAW EFFECTIVE JAN 1, 2009

Business & Professions Code

490 – Expands the penalties for individuals who contract without a license if they were named on a revoked license and were found to be culpable in the license revocation. (Amended Stats 2008 ch 33 § 2, effective January 1, 2009.)

7000.5 – Extends the legislative sunset date for the Contractors State License Board until January 1, 2011. The original sunset date for CSLB was July 1, 2009. (Amended Stats 2008 ch 385 §1, effective January 1, 2009.)

7071.5, 7071.10, 7071.11 – Requires that a contractor's bond and the qualifying individual's bond be available to a property owner whose single-family dwelling is damaged as the result of a violation of the state Contractors License Law, if the dwelling is not intended or offered for sale at the time the damages were incurred. (Amended Stats 2008 ch 157 §1 (1), §3 (c) (2), effective January 1, 2009.)

Related Laws

Civil Code

116.220 – Increases the small claims court filing against a defendant guarantor that charges a fee for its guarantor or surety services from $4,000 to $6,500. (Amended Stats 2008 ch 157 §4 (4) (c) (3), effective January 1, 2009.)

Health and Safety Code

19825 – Streamlines the law covering the owner-builder permit process. Expands the requirements for an owner-builder to acknowledge the risks of contracting with unlicensed contractors when obtaining permits. (Repeals Sections 19825 §1, 19830 §3, 19831 §4, and 19832 §5 of the Health and Safety Code, and Added Stat 2008 ch 66 H&S 19825 §2 (a), effective January 1, 2009.)

 
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