SBE News

GSBE Business Update 12/30/2019

New Contracting Laws Go into Effect January 1, 2020
CSLB Summarizes New Laws for Licensees

SACRAMENTO – The Contractors State License Board (CSLB) has summarized the new laws that will go into effect this January. Take note of these laws as they may change the way you do business.

Assembly Bill (AB) 754 requires solar contractors that excavate or put in a ground rod to call “811” prior to obtaining a permit to install a solar energy system. (Chapter 494, Statutes of 2019)

Assembly Bill (AB) 178 specifies that residential construction to repair or replace a residential building damaged or destroyed in a declared disaster must comply with any photovoltaic requirements in effect at the time the building was constructed, not at the time of repair of replacement.

This bill’s provisions apply to emergencies declared before January 1, 2020 and self-repeals on January 1, 2023. (Chapter 259, Statutes of 2019).

AB 1076 requires the Department of Justice, on a monthly basis, to review the records in the statewide criminal justice databases and identify those eligible for relief by not disclosing their arrest or conviction records, as specified.

This bill’s provisions do not apply to offenses requiring sex offender registration or to any pending criminal charges. The bill extends its requirements to the criminal information provided by the department to other entities for employment, licensing, or certification. (Chapter 578, Statutes of 2019)

AB 1296 empowers agencies participating in the Joint Enforcement Strike Force (JESF) on the Underground Economy to request specified information from the Employment Development Department, the California Department of Tax and Fee Administration, and the Franchise Tax Board, for the purposes of investigating tax or fee related crimes.

This bill also adds the Department of Justice, the California Department of Tax and Fee Administration, and the Franchise Tax Board to JESF, and authorizes the Department of Motor Vehicles and California Highway Patrol and other agencies to serve JESF in an advisory capacity. The bill authorizes JESF representatives to exchange intelligence, data, documents, confidential information, or lead referrals and authorizes sharing such information with the Labor Enforcement Task Force. (Chapter 626, Statutes of 2019)

AB 1475 clarifies that a construction manager on Department of Transportation projects be a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code. (Chapter 289, Statutes of 2019)

Senate Bill (SB) 601 authorizes specified state agencies to establish a process for a person or business either displaced or experiencing economic hardship as a result of an emergency to apply for a fee reduction or waiver required to obtain a license, renew or activate a license, or replace a physical license for display. (Chapter 854, Statutes of 2019)

SB 610 extends the Contractors State License Board sunset date from January 1, 2020, to January 1, 2024. Among other provisions, this bill requires CSLB to conduct a study on whether or not the current contractor bond amount is sufficient and report the findings to the Legislature by January 1, 2021.

This bill also requires CSLB to charge C-10 (Electrician) contractors a $20 fee to enforce electrician certification requirements, and authorizes CSLB to automatically suspend a contractor’s license for an unsatisfied construction-related judgment entered against a member of the personnel of record of a licensee. (Chapter 378, Statutes of 2019)