Legislative Update 2022

Sometimes it’s hard for busy contractors to keep up on the new rules and regulations. That’s just one reason we provide this resource for readers and when called on can provide the latest expert opinions in a hurry! Just check out some of what’s new this year 2022…

First up is AB 569 on penalties. This bill increases from $5,000 to $8,000 the maximum administrative civil penalty CSLB can assess against a licensed contractor for most violations, and from $15,000 to $30,000 for the most serious violations relating to unlicensed practice and workers compensation insurance violations. This bill also authorizes CSLB to issue a Letter of Admonishment for more than one violation at a time. The bill amends Business and Professions Code (BPC) sections 7099.2 and 7099.9. (Chapter 94, Statutes of 2021) 

AB 830, as it relates to CSLB, this bill defines the responsibilities of the qualifying members of personnel on a contractor’s license regarding their duty to supervise the construction operations of the license entity. The bill provides definitions of “bona fide employee” and “actively engaged” for the purposes of a responsible managing employee’s duty on a contractor’s license. The bill defines the qualifier’s duty of “supervision and control” to mean “direct supervision or control or monitoring and being available to assist others to whom direct supervision and control has been delegated.” The bill authorizes CSLB to require an applicant for a contractor’s license to provide the qualifier’s current employment duty statement describing their responsibilities under the license and allows CSLB to take disciplinary action for failing to do so. As it relates to the Contractors State License Law, this bill amends BPC sections 7068 and 7068.1. (Chapter 376, Statutes of 2021) SB 757 and SB 826 are of particular interest to solar contractors this year, but not detailed here. Neither is SB 607, as it relates to changes in how fees are structured, but good news, no increase in Sole Owner renewals! Military members interested in becoming licensed contractors should study up on AB 107 as it relates to licensing, and SB 607 previously mentioned regarding fee waivers for serving the country. Questions on new law can always be directed to the CSLB or give me a call for help as our space here is limited.