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New Laws - 2002

Summary of contractor law changes resulting from the 2002 Legislative Session

This is a summary of significant legislation that the Contractors State License Board (CSLB or Board) followed during the 2002 Legislative session. The bills in the summary have been signed into law (chaptered), and will become effective January 1, 2003 unless otherwise noted. Copies of chaptered bills are available from the Legislative Bill Room by calling (916) 445-2323 or on the Internet at

Business & Professions Code
7000.5 Extends the Board's sunset date to January 1, 2008.
7000.6 Clarifies that the Board's legal mandate gives highest priority to public protection.
7019 Clarifies that the Board may contract with licensed professionals whose skills and expertise are needed for complex investigations.
7065 Clarifies that no trade exam is required for the C-61 Limited Specialty classification.
7069 Requires license applicants to submit fingerprints for criminal history checks beginning in 2004.
7071.6 Requires licensees and license applicants, regardless of classification, to have on file by January 1, 2004, a contractor's bond in the amount of $10,000; reserves $2,500 of that bond exclusively for consumers; and increases the bond requirement to $12,500 and the reserved amount to $5,000 on January 1, 2007.
7071.11 Specifies that no license may be renewed, reissued, or reinstated while any judgment or admitted claim for loss and expense remains unreimbursed on any bond issued for the license.
7085 Increases the amount of contracts or damages eligible for mandatory arbitration from $5,000 to $7,500 and allows complaints to be referred to arbitration, when appropriate, even if the license was not "in good standing" at the time of referral.
7091 Clarifies the statute of limitations for disclosure purposes to include complaints referred to the Board's arbitration program.
7122 Holds license qualifiers responsible for complying with arbitration awards.
7125 Clarifies that a licensee's failure to maintain workers' compensation insurance coverage whenever such insurance is required by law, will result in a license suspension as specified;
7137 Gives the Board authority to raise fees in regulations.

Other industry-related legislation signed by Governor Davis includes:
Civil Code
SB 800 Gives homebuilders an opportunity to repair problems that may arise in newly constructed homes before homeowners sue; establishes a fair and balanced system for resolving construction disputes in California; specifies builder's right to make repairs, defines construction defects, reduces statute of limitations and preserves alternative dispute resolution (arbitration).


Unemployment Insurance Code
1095 Gives the Board access to Employment Development Department (EDD) data base to check license applicant experience.


California Code of Regulations
811 Added fee schedule.
832.5 Amended existing section 832.05, Carpentry, Cabinet and Millwork Contractor so that the C-5 license classification is only for framing and rough carpentry.
832.6 Added new C-6 classification, Cabinet, Millwork and Finish Carpentry.
832.9 Amended existing section 832.09, Dry Wall Contactor, to clarify the scope of work being performed by drywall contactors.
834.54 Amended existing section 834.54, Ceramic and Mosaic Tile Contractors to clarify the scope of work performed.
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