SBE News

Capitol Connection 03/31/2021

More 2021 Legislative Changes, Civil Judgements, And Out Of State Renewals

I repeat, due to COVID-19, all individuals living in the State of California are currently ordered to stay home or at their place of residence, except for permitted work, local shopping, or other permitted errands, or as otherwise authorized.  In response, the CSLB has closed all public counters and testing centers for at least three weeks, which means all exam applications will be delayed. Here’s another installment on the new law in 2021…

More from the CSLB- 

SB 1189 (McGuire): Creates a new classification of contracting business called “residential remodeling contracting,” which is defined as projects that make improvements to, on, or in an existing residential wood frame structure that use at least three unrelated building trades or crafts for a single contract; a list of trades is included in the bill.  The bill also includes in the definition of “home improvement” the reconstruction, restoration, or rebuilding of residential property damaged or destroyed by a disaster for which either the governor or president has declared a state of emergency. The bill also expands the type of contracting activity in a declared disaster zone for which a person without a contractor license can be prosecuted. (Chapter 364, Statutes of 2020)

SB 1474 (Committee on Business, Professions and Economic Development): Requires the CSLB registrar to retroactively reinstate an expired contractor license if a completed license renewal application is received with the appropriate fees within 90 days of the license expiration date.  It also makes several minor, technical, non-substantive changes to the law. (Chapter 312, Statutes of 2020)

From the mailbag! 

Q:  My company’s license was suspended due to a civil judgement.  The CSLB informed me that we would be required to comply with the decision and we would also need to obtain a ‘disciplinary’ bond.  Does the Disciplinary Bond take the place of our $15,000 Contractor’s Bond or is it in addition to our Contractor’s bond?  How long do we need to keep the extra bond in place?

A:  A disciplinary bond is filed in addition to, and does not replace any of the other bonds required for the license.  It is my understanding that Disciplinary Bonds are to be in place for two years, however in certain instances the Registrar may require a longer period.

Q:  You may remember we are a Texas corporation and you helped us get our California license years ago.  We only had a couple projects in CA and we let the license expire.  We are now ready to come back to California and do some work.  How do we go about getting our license again?  Do we need to start from scratch?

A: We, of course, remember you! We are always ready to help new faces and old friends. No, you do not need to start over!  Since it has been less than five years since your license expired, you can still renew it.  You are required to submit a Renewal Application, pay the delinquent (Active) fee of $600, and provide a new Bond and proof of Worker’s Compensation Insurance (if you still have employees).  Don’t forget the Covid rules have closed public counters and exam centers thru the end of 2020 so some delay can be expected. 

(Please note this information was correct at time of publication and changes will occur over time as pandemic rules change so please call Capitol Services, Inc. for an update as required)