C-27 LAW

C-27 LAW Contractors State License Board ️Division within the dept. of Consumer Affairs How many members CSLB? ️13: 7 public, 5 licensed contractor, 1 labor rep. CSLB appoints the Registrar ️Not a board member, executive secretary Salaried Registrar ️Issue licenses, all records of apps, official seal, changes in exam procedure Journeyman ️18 years old, 4 yrs experience in last 10 yrs. Financial Solvency ️must be able to prove $2,500 in cash or assets Individual Business ️Sole proprietor owns 100% of business and license Partnership ️2 or more persons share ownership Qualifying individual ️Reguired to supervise all activities of business. If the qualifying individual owns 10% or more of the licensee, he/she is not required to post bond Corporation ️Its own entity consisting of one or more shareholders Corporation ️Must have President, Secretary, and Treasurer Responsible Managing Officer RMO ️The qualifying individual for a corporation Responsible Managing Employee RME ️This person obtains license for the business they are full time employee Contractor's Bond ️Guarantee funds to those deserving of compensation for damages done by contractor Required bond ️$15,000 issued by insurance company, admitted surety company, or cash deposit filed with the Registrar. Joint Venture License ️Two or more licensees able to work together, new application required, additional bond required. Penalty for unlicensed work ️First offense: $4,500, Second: criminal charges and 20% of contract price, up to 6 months of prison. Unlicensed person may not bring any legal action. How long is a license effective for? ️2 years, mail in renewal with fee by the last day of the month in which it was issued or suspension, needs to be renewed within 3 years of the expiration date with registration fee and late penalty fee or becomes void. Retroactive Renewal ️License not renewed for circumstances beyond their control, petition includes reasons why, 90 days of license expiration date. Home Improvement Salesperson ️Must register with the Contractors State License Board, misdemeanor for not registering, separate registrations for multiple contractors, must be renewed every 2 years. Issue a citation ️not to exceed $2,000, include a time period in which violation should be corrected. 15 working days to notify Registrar of appeal Change business name or address ️Must notify Registrar within 90 days Armed Forces ️Licensee may designate a responsible managing person to act in their place for up to one year Inactivate License ️Complete and sign Application to Inactivate, with the plastic pocket size license copy. Must be renewed every 4 years. Considered "on hold" and no bond or proof of workers comp. required. A partner has died or disassociated ️Remaining partners may, within 90 days, apply for continuance. If died, the continuance would allow for entering into new contracts, if disassociated, continuance would only allow for completion of projects. New Partner has joined the partnership ️A new license must be obtained within 90 days Changes in officers of a corporation ️Will not affect the status of the license, however must be reported to CSLB within 90 days The qualifying member has disassociated from the licensee ️The qualifying individual must be replaced within 90 days A business has withdrawn from joint venture license ️within 90 days, apply for continuance of completion of projects only. To be permitted to enter into new contracts, a new joint venture license must be obtained within 90 days Prime Contractor ️Any contractor who has entered into a contract directly with the owner of property, their authorized agent, or awarding authority of a Public Works project. Must include note from CSLB on all contracts. Subcontractor ️Any contractor who has entered into a contract with another contractor Notice to Owner ️Clearly explains mechanic lien laws and all rights and responsibilities of the owner and contractor Change Order ️Explains changes to be made, materials to be used, cost of the work, and revised total price of the contract. Require that the owner was aware of all costs and changes made.