Changes to California Construction Laws

By December 17, 2013 October 25th, 2018 Construction Litigation Blog, Patty League
Patty League

Patty League

Another year has rapidly passed.  In California alone, over 800 bills were signed into law, many involving the construction industry.  Below is a summary of a few significant bills and the changes made to each:

SB 7

Charter cities receiving state funding or financial assistance for a construction project require that contractors pay prevailing wages on projects exceeding $25,000.00 for construction work or $15,000.00 for alteration, demolition, repair or maintenance work.  This Bill was backed by labor unions who argued prevailing wage requirements protect middle-class jobs and ensure high-quality public works projects.  About 50 charter cities in California have provisions exempting contractors from paying prevailing wages.

AB 44 – Public Bidding

Direct contractors must disclose California Contractors State License Board’s license numbers of subcontractors who will provide work on public works projects beginning July 1, 2014.

AB 433 –Fire Protection Systems and Fire Safety:

Existing law provides that contractors with a C-16 fire protection license or owner-builders of owner-occupied, single-family dwellings may only install fire protection systems.  The new law will in addition authorize contractors with a C-36 plumbing license to install fire protection systems for one or two-family dwelling units until January 1, 2017.

AB 1386 – Labor Commission

Existing law allows the California Labor Commissioner to obtain a judgment against a contractor with the superior court once the Labor Commissioner’s award or decision is made final.  The Labor Commissioner will additionally be authorized to record a certificate of lien on property owned by a contractor once that award or decision becomes final.

SB 261 – Fraudulent Use of a License

The California Contractors State License Board may take disciplinary action against any person who uses a suspended, canceled or altered contractor’s license.  Additionally, disciplinary action may also be taken for those that use a forged contractor’s license or allows another individual to use a contractor’s license that has not been issued to that individual.

SB 262 – Qualifiers

This bill authorizes the California Contractors State License Board to take disciplinary action against a qualifier and the licensee if the qualifier is not actively involved in the construction activities of the licensee.  Misdemeanor criminal charges can be filed against the qualifier and he/she could receive imprisonment in the county jail for up to six months, a fine of up to $5,000.00 or both, in addition to administrative penalties.

SB 822 – Contractor’s Application

Licensees who submit an incomplete renewal application to the California Contractor’s State License Board on or before expiration of their license will now have 30 days to correct and resubmit their renewal application and not be required to pay a renewal delinquency fee.