Governor Brown Signs Bill Changing CSLB’s Home Improvement Salesperson Registration Requirements
SACRAMENTO — Home improvement salespersons (HIS) that represent licensed contractors when selling goods and services soon will only have to register once with the Contractors State License Board (CSLB). Governor Edmund G. Brown Jr. signed Senate Bill 561 into law yesterday, simplifying the HIS registration process to a single registration while still allowing salespeople to represent multiple employers.
Anyone who solicits, sells, negotiates, or executes home improvement contracts for a licensed contractor outside of the contractor’s normal place of business must be registered with CSLB as an HIS (Business and Professions Code section 7153).
The law takes effect January 1, 2016, and removes the current requirement that an HIS register separately with CSLB for each contractor that employs them.
The bill, authored by Sen. Bill Monning (D-Carmel) and sponsored by CSLB, will simplify and quicken the registration process in response to the rapid growth in the number of HIS applications, particularly for employees who work in the solar industry. CSLB received more than 1,000 HIS applications per month in fiscal year 2014-15, a 40 percent jump compared to the average for the previous three years.
In addition to the single registration provision, SB 561 will:
- Require a contractor to notify CSLB in writing prior to employing a registered HIS, and when employment ceases;
- Allow CSLB to accept an electronic application and signature from an HIS applicant;
- Require an HIS to have a current and valid registration with CSLB before making sales calls and transactions on behalf of a contractor; and
- Provide that registrations will be valid for two years from the month of issue.
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