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New Laws - 2001

Summary of contractor law changes resulting from the 2001 Legislative Session

This is a summary of significant legislation that the Contractors State License Board (CSLB or Board) followed during the 2001 Legislative session. The bills in the summary have been signed into law (chaptered), and will become effective January 1, 2002 unless otherwise noted. Copies of chaptered bills are available from the Legislative Bill Room by calling (916) 445-2323 or on the Internet at

AB 678 – ACTIONS IN COURT (Papan- Chapter 226, Statutes of 2001) Amend Section 7031 of the Business and Professions Code, relating to contractors. Approved by the Governor September 1, 2001. Pre-existing law prohibited an unlicensed contractor from bringing or maintaining an action to recover compensation in any court in this state. This bill authorizes a person who utilizes an unlicensed contractor to bring an action in any court of competent jurisdiction in this state for recovery of compensation paid to the unlicensed contractor for performance of any act or contract.

SB 135 – COMPLAINT DISCLOSURE (Figueroa- Chapter 494, Statutes of 2001) Amend, repeal and add Section 7124.6 of the Business and Professions Code, relating to contractors. Approved by the Governor October 4, 2001. Pre-existing law allowed the Registrar to make available to the public the nature and disposition of all complaints on file against a licensee that have been referred for legal action. This bill will allow CSLB to maintain an information system making available to the public the date, nature, and status of all complaints on file that have been referred for investigation due to a determination by an enforcement representative that a probable violation of law has occurred, and that, if proven, would be appropriate for suspension or revocation of the contractor's license or criminal prosecution.

The bill will also limit the amount of time certain legal actions are disclosed.

SB 724 – CODE CLARIFICATIONS (Figueroa- Chapter 728, Statutes of 2001) Amend Sections 7006, 7026, 7027.3, 7028.7, 7028.13, 7059.1, 7071.11, 7074, 7091, 7112, 7153, 17910.5, 17913, 17917, 17923, 22355 and 22453.1 of, and to add Sections 5080.5, 5536.26 and 7112.1 to, the Business and Professions Code, relating to the regulation of businesses. Approved by Governor October 10, 2001.This bill authorizes the Contractors State License Board to meet once each quarter, allows contractors to deal with underground storage tanks, allows the registrar to issue citations to unlicensed individuals and unregistered salespersons the registrar believes violated the Contractors' State License Law, and authorizes the registrar to use collection agencies to collect civil penalties. It also provides that a licensee can only conduct business under one name per license, extend the time in which a claim can be made against a licensee's cash deposit to 3 years after the expiration of the license, revises licensing examination procedures, and expands the grounds for disciplinary action during the license application and renewal process concerning misrepresentations or omissions made on the application or renewal form.

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