Article 5 - Licensing

California Business and Professions Code — §§ 7065-7077

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Sections (50)

Amended by Stats. 2024, Ch. 485, Sec. 7. (SB 1455) Effective January 1, 2025.

(a)Under rules and regulations adopted by the board and approved by the director, the registrar shall investigate, classify, and qualify applicants for contractors’ licenses by written examination. This examination shall include questions designed to show that the applicant has the necessary degree of knowledge required by Section 7068 and shall include pertinent questions relating to the laws of this state and the contracting business and trade.

(b)(1) Contractors’ licenses are to be issued to individual owners, partnerships, corporations, limited liability companies, and participating tribes, in accordance with this chapter.

(A) Every person who is an officer, member,

responsible manager, or director of a corporation or limited liability company seeking licensure under this chapter shall be listed on the application as a member of the personnel of record.

(B) Every person who is a member of a partnership seeking licensure under this chapter shall be listed on the application as a member of the personnel record.

(2)A corporation or limited liability company, whether foreign or domestic, seeking licensure under this chapter shall provide its identification number issued by the Secretary of State.

(3)A tribal business, including a corporation organized or chartered by a federally recognized tribe pursuant to tribally enacted laws or to Section 17 of the federal Act of June 18, 1934, popularly known as the “Indian Reorganization Act,” shall provide verification of its status as a

tribal business. Verification may include, but is not limited to, the following:

(A)Enacted resolution ratifying the charter pursuant to Section 17 of the Indian Reorganization Act.

(B)Enacted resolution authorizing the tribally chartered corporation under tribally enacted laws.

(C)Articles of incorporation or by-laws.

(D)A current list of federally recognized tribes or directory of tribal leadership published under the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. Sec. 5131) or on the internet website of the United States Bureau of Indian Affairs.

(c)An applicant shall qualify for licensure in accordance with this subdivision as follows:

(1)An individual owner may qualify by examination for a contractor’s license upon the appearance of the owner or a qualifying individual appearing as a responsible managing employee on behalf of the owner.

(2)A partnership may qualify by examination for a contractor’s license upon the appearance of a partner or a qualifying individual appearing as a responsible managing employee on behalf of the partnership.

(3)A corporation or participating tribe may qualify by examination for a contractor’s license upon the appearance of a qualifying individual appearing either as a responsible managing officer or a responsible managing employee on behalf of the corporation.

(4)A limited liability company may qualify by examination for a contractor’s license upon the

appearance of a qualifying individual appearing as a responsible managing officer, a responsible managing manager, a responsible managing member, or a responsible managing employee on behalf of the company.

(d)No examination shall be required of a qualifying individual if, within the five-year period immediately preceding the application for licensure, the qualifying individual has either personally passed the written examination for the same classification being applied for, or has served as the qualifying individual for a licensee whose license was in good standing at any time during the five-year period immediately preceding the application for licensure and in the same classification being applied for.

(e)The registrar may contract with a public or private organization to conduct or administer the examination. The registrar may also contract with a public or private

organization for materials or services related to the examination.

§ 7065.01

Repealed and added by Stats. 2002, Ch. 311, Sec. 2. Effective January 1, 2003.

Notwithstanding Section 7065, no trade examination shall be required of an applicant for the limited specialty license classification.

§ 7065.05

Amended by Stats. 2005, Ch. 280, Sec. 3. Effective January 1, 2006.

The board shall periodically review and, if needed, revise the contents of qualifying examinations to insure that the examination questions are timely and relevant to the business of contracting. The board shall, in addition, construct and conduct examinations in such a manner as to preclude the possibility of any applicant having prior knowledge of any specific examination question.

§ 7065.06

Added by Stats. 2018, Ch. 867, Sec. 2. (AB 2371) Effective January 1, 2019.

(a)Before the board revises the examination for a landscaping contractor (C-27), the board shall confer with the Department of Water Resources and the California Landscape Contractors Association to determine whether any updates or revisions to the examination are needed to reflect new and emerging landscape irrigation efficiency practices.

(b)The board shall ensure that the examination includes questions that are specific to water use efficiency and sustainable practices to help ensure that the state’s water efficiency needs identified in the California Water Plan, described in Section 10004 of the Water Code, are sufficiently supported.

(c)The board shall ensure that the

reference study material for the examination continues to include the most current version of the Model Water Efficient Landscape Ordinance (23 Cal. Code Regs. 490, et seq.) and shall add other collateral material specific to water use efficiency and sustainability.

§ 7065.1

Amended by Stats. 2010, Ch. 698, Sec. 6. (SB 392) Effective January 1, 2011.

Notwithstanding Section 7065, the registrar may waive the examination for a contractor’s license under any of the following circumstances:

(a)The qualifying individual has, for five of the seven years immediately preceding the application for licensure, been listed on the official records of the board as a member of the personnel of any licensee who held a license, which was active and in good standing, in the same classification being applied for, and who during the period listed on the license has been actively engaged in a licensee’s construction activities in the same classification within which the applicant applies for a license.

(b)The qualifying individual is an immediate member of the family of a licensee whose individual license was active and in good standing for five of the seven years immediately preceding the application for licensure, and the qualifying individual is able to show all of the following:

(1)The qualifying individual has been actively engaged in the licensee’s business for five of the seven years immediately preceding the application for licensure.

(2)The license is required to continue the existing family business in the event of the absence or death of the licensee.

(3)An application is made for a new license in the same classifications in which the licensee is or was licensed.

(c)The qualifying individual is an employee of a corporation

or a limited liability company seeking to replace its former qualifying individual and has been employed by that corporation or limited liability company under the following conditions:

(1)For five of the seven years immediately preceding the application for licensure, the qualifying individual has been continually employed by the corporation or limited liability company in a supervisory capacity in the same classifications being applied for.

(2)For five of the seven years immediately preceding the application for licensure, the corporation or limited liability company has held an active license in good standing in the same classifications being applied for.

(3)The corporation or limited liability company has not requested a waiver under this subdivision within the past five years.

For purposes of this section, employees of a corporation or limited liability company shall include, but not be limited to, the officers of a corporation and the officers and managers of a limited liability company.

§ 7065.2

Added by Stats. 1987, Ch. 630, Sec. 1.

Notwithstanding Section 7065, the registrar may waive the examination for a contractor’s license if the applicant has previously held a valid contractor’s license in this state and has been acting in the capacity of a contractor for the United States government in a position exempt from licensure under this chapter.

§ 7065.3

Amended by Stats. 2013, Ch. 319, Sec. 7. (SB 822) Effective January 1, 2014.

Notwithstanding Section 7065, upon a conclusive showing by a licensee that he or she possesses experience satisfactory to the registrar in the classification applied for, an additional classification may be added, without further examination, under all of the following conditions:

(a)For five of the seven years immediately preceding the application, the qualifying individual of the licensee has been listed as a member of the personnel of any licensee whose license was active and in good standing, and who during the period listed on a license was actively engaged in the licensee’s construction activities.

(b)The qualifying individual for the applicant has had within the last 10 years immediately preceding the filing of the application, not less than four years experience as a journeyman, foreman, supervising employee, or contractor in the classification within which the licensee intends to engage in the additional classification as a contractor.

(c)The application is, as determined by the registrar, for a classification that is closely related to the classification or classifications in which the licensee is licensed, or the qualifying individual is associated with a licensed general engineering contractor or licensed general building contractor and is applying for a classification that is a significant component of the licensed contractor’s construction business as determined by the registrar. This section shall not apply to an

applicant who is licensed solely within the limited-specialty classifications.

Pursuant to Section 7065, the registrar shall conduct a comprehensive investigation of no less than 3 percent of applications filed under this section to ensure that the applicants met the experience requirements of this section.

§ 7065.4

Added by Stats. 1990, Ch. 1326, Sec. 2. Effective September 26, 1990.

The registrar may accept the qualifications of an applicant who is licensed as a contractor in a similar classification in another state if that state accepts the qualifications of a contractor licensed in this state for purposes of licensure in that other state, and if the board ascertains, on a case-by-case basis, that the professional qualifications and conditions of good standing for licensure and continued licensure are at least the same or greater in that state as in California. The registrar may waive the trade examination for that applicant if the applicant provides written certification from that other state in which he or she is licensed, that the applicant’s license has been in good standing for the previous five years.

§ 7065.5

Amended by Stats. 2010, Ch. 698, Sec. 7. (SB 392) Effective January 1, 2011.

No license shall be issued to a minor, nor to any partnership a partner of which is a minor, nor to any corporation any officer, director or responsible managing employee of which is a minor, nor to any limited liability company any officer, manager, or responsible managing employee of which is a minor, nor to any other kind of business organization in which a minor holds a responsible official position, unless the minor shall first have had a guardian appointed by a court of competent jurisdiction.

§ 7066

Added by Stats. 1939, Ch. 37.

To obtain an original license, an applicant shall submit to the registrar an application in writing containing the statement that the applicant desires the issuance of a license under the terms of this chapter.

The application shall be made on a form prescribed by the registrar in accordance with the rules and regulations adopted by the board and shall be accompanied by the fee fixed by this chapter.

§ 7066.5

Amended by Stats. 2011, Ch. 432, Sec. 13. (SB 944) Effective January 1, 2012.

Any person may obtain blank license application forms from the board or may cause to be printed forms used by or approved by the Registrar of Contractors.

§ 7067.6

Amended by Stats. 2015, Ch. 281, Sec. 1. (SB 561) Effective January 1, 2016.

(a)Every application form for an original license, for renewal thereof, for reinstatement or for reissuance, including both active and inactive licenses, shall be signed by both the applicant and by the person qualifying on behalf of an individual or firm as referred to in Section 7068.1.

(b)(1) Notwithstanding any other law, the board may implement a system that provides for the electronic transmission of an application described in

subdivision (a) and the acceptance of a digital or electronic signature as part of the filing of those applications.

(2)The board by regulation may specify the form and manner of these transmissions and acceptances, including, but not limited to, the adoption of any protocols necessary to ensure the validity and security of any information, signature, data, or document transmitted electronically or digitally. Upon the effective date of the regulations, the electronic submission of an initial license application or a renewal application, including a digital or electronic signature, shall satisfy the requirements of this article.

§ 7068

Amended by Stats. 2021, Ch. 376, Sec. 5. (AB 830) Effective January 1, 2022.

(a)The board shall require an applicant to show the degree of knowledge and experience in the classification applied for, and the general knowledge of the building, safety, health, and lien laws of the state and of the administrative principles of the contracting business that the board deems necessary for the safety and protection of the public.

(b)An applicant shall qualify in regard to their experience and knowledge in one of the following ways:

(1)If an individual, they shall qualify by personal appearance or by the appearance of their responsible managing employee who is qualified for the same license classification

as the classification being applied for.

(2)If a partnership or a limited partnership, it shall qualify by the appearance of a general partner or by the appearance of a responsible managing employee who is qualified for the same license classification as the classification being applied for.

(3)If a corporation, or any other combination or organization, it shall qualify by the appearance of a responsible managing officer or responsible managing employee who is qualified for the same

license classification as the classification being applied for.

(4)If a limited liability company, it shall qualify by the appearance of a responsible managing officer, a responsible managing manager, responsible managing member, or a responsible managing employee who is qualified for the same license classification as the classification being applied for.

(c)(1) For purposes of this chapter, “a responsible managing employee” means an individual who is a bona fide employee of the applicant and is actively engaged in the classification of work for which that responsible managing employee is the qualifying person on behalf of the applicant.

(2)For purposes of this subdivision,

the following definitions apply:

(A)“Bona fide employee of the applicant” means an employee who is permanently employed by the applicant.

(B)“Actively engaged” means working 32 hours per week, or 80 percent of the total hours per week that the applicant’s business is in operation, whichever is less.

(d)The board shall, in addition, require an applicant who qualifies by means of a responsible managing employee under either paragraph (1) or (2) of subdivision (b) to show their general knowledge of the building, safety, health, and lien laws of the state and of the administrative principles of the contracting business as the board deems necessary for the safety and protection of the public.

(e)Except in accordance with Section 7068.1, no person qualifying on behalf of an individual or firm under paragraph (1), (2), (3), or (4) of subdivision (b) shall hold any other active contractor’s license while acting in the capacity of a qualifying individual pursuant to this section.

(f)At the time of application for renewal of a license, the current qualifying individual shall file a statement with the registrar, on a form prescribed by the registrar, verifying their capacity as a qualifying individual to the licensee.

(g)Statements made by or on behalf of an applicant as to the applicant’s experience in the classification applied for shall be verified by a qualified and responsible person. In addition, the registrar

shall, as specified by board regulation, randomly review a percentage of such statements for their veracity.

(h)The registrar shall review experience gained by applicants from other states to determine whether all of that experience was gained in a lawful manner in that state.

§ 7068.1

Amended by Stats. 2024, Ch. 485, Sec. 8. (SB 1455) Effective January 1, 2025.

(a)The person qualifying on behalf of an individual or firm under paragraph (1), (2), (3), or (4) of subdivision (b) of Section 7068 shall be responsible for exercising supervision and control of their employer’s or principal’s construction operations to secure compliance with this chapter and the rules and regulations of the board. This person shall not act in the capacity of the qualifying person for an additional individual or firm unless one of the following conditions exists:

(1)There is a common ownership of at least 20 percent of the equity of each individual or firm for which the person acts in a qualifying capacity.

(2)The additional firm is a subsidiary of or a joint venture with the

first. “Subsidiary,” as used in this subdivision, means any firm at least 20 percent of the equity of which is owned by the other firm.

(3)With respect to a firm under paragraph (2), (3), or (4) of subdivision (b) of Section 7068, the majority of the partners, officers, or managers are the same.

(b)Notwithstanding paragraphs (1) to (3), inclusive, of subdivision (a), a qualifying individual may act as the qualifier for no more than three firms in any one-year period.

(c)The following definitions shall apply for purposes of this section:

(1)“Firm” means a partnership, a limited partnership, a corporation, a limited liability company, or any other combination or organization described in Section 7068.

(2)“Person” is limited to natural persons, notwithstanding the definition of “person” in Section 7025.

(3)“Supervision and control” means direct supervision or control or monitoring and being available to assist others to whom direct supervision and control has been delegated.

(4)“Direct supervision or control” means any of the following:

(A)Supervising construction operations.

(B)Managing construction activities by making technical and administrative decisions.

(C)Checking jobs for proper workmanship.

(D)Supervision on construction sites.

(d)The board shall require every applicant or licensee qualifying by the appearance of a qualifying individual to submit detailed information on the qualifying individual’s duties and responsibilities for supervision and control of the applicant’s construction operations.

(e)Violation of this section shall constitute a cause for disciplinary action and shall be punishable as a misdemeanor by imprisonment in a county jail not to exceed six months, by a fine of not less than three thousand dollars ($3,000), but not to exceed five thousand dollars ($5,000), or by both the fine and imprisonment.

§ 7068.2

Amended by Stats. 2012, Ch. 162, Sec. 2. (SB 1171) Effective January 1, 2013.

(a)If the responsible managing officer, responsible managing employee, responsible managing member, or responsible managing manager disassociates from the licensed entity, the licensee or the qualifier shall notify the registrar in writing within 90 days after the date of disassociation. The licensee shall have 90 days after the date of disassociation in which to replace the qualifier. Upon failure to replace the qualifier within 90 days after the date of disassociation, the license shall be automatically suspended or the classification removed at the end of the 90 days.

(b)To replace a responsible managing officer, responsible managing employee, responsible managing member, or responsible managing manager, the licensee shall file an application as prescribed by

the registrar, accompanied by the fee fixed by this chapter, designating an individual to qualify as required by this chapter.

(c)Upon failure of the licensee or the qualifier to notify the registrar of the disassociation of the qualifier within 90 days after the date of disassociation, the license shall be automatically suspended or the classification removed and the qualifier removed from the license effective the date the written notification is received at the board’s headquarters office.

(d)The person qualifying on behalf of a licensee under Section 7068 shall be responsible for the licensee’s construction operations until the date of disassociation or the date the board receives the written notification of disassociation, whichever is later.

(e)(1) Upon a showing of good cause by the

licensee, the registrar may review and accept a petition for one 90-day extension to replace the qualifier immediately following the initial 90-day period described in subdivision (a) only under one or more of the following circumstances:

(A) If the licensee is disputing the date of disassociation.

(B) If the responsible managing officer, employee, member, or manager has died.

(C) If there has been a delay in processing the application to replace the qualifier that is out of the applicant’s control and it is the responsibility of the board or another state or federal agency that is relied upon in the application process.

(2)This petition shall be received within 90 days after the date of disassociation or death or delay. The petition shall only be

considered if an application to replace the qualifier as prescribed by the registrar is on file with the board. Under the circumstances described in subparagraphs (A) and (B) of paragraph (1), the licensee shall have no more than a total of 180 days after the date of disassociation or death in which to replace the qualifier.

(f)Failure of the licensee or the qualifier to notify the registrar of the qualifier’s disassociation within 90 days after the date of disassociation shall constitute grounds for disciplinary action.

§ 7068.5

Added by Stats. 1961, Ch. 491.

It is a misdemeanor for any person other than the examinee named in the application to take the qualifying examination on behalf of an applicant for a contractor’s license.

§ 7068.7

Added by Stats. 1979, Ch. 1013.

Any person who obtains and provides for another the qualifying examination, or any part thereof, when not authorized to do so, is guilty of a misdemeanor.

§ 7069

Amended by Stats. 2010, Ch. 698, Sec. 11. (SB 392) Effective January 1, 2011.

(a)An applicant, and each officer, director, partner, manager, associate, and responsible managing employee thereof, shall not have committed acts or crimes that are grounds for denial of licensure under Section 480.

(b)As part of an application for a contractor’s license, the board shall require an applicant to furnish a full set of fingerprints for purposes of conducting a criminal history record check. Fingerprints furnished pursuant to this subdivision shall be submitted in an electronic format if readily available. Requests for alternative methods of furnishing fingerprints are subject to the approval of the registrar. The board shall use the fingerprints furnished by an

applicant to obtain criminal history information on the applicant from the Department of Justice and the United States Federal Bureau of Investigation, and the board may obtain any subsequent arrest information that is available.

§ 7069.1

Added by Stats. 2004, Ch. 586, Sec. 1. Effective January 1, 2005.

(a)Upon notification of an arrest of a member of the personnel of a licensee or a home improvement salesperson, the registrar, by first-class mail to the last official address of record, may require the arrestee to provide proof of the disposition of the matter.

(b)The proof required by this section shall be satisfactory for carrying out the purposes of this chapter, and at the registrar’s discretion may include, but is not limited to, certified court documents, certified court orders, or sentencing documents. Any proof required by this section shall be received by the registrar within 90 days of the date of the disposition, or within 90 days of the registrar’s demand for information if that date is later.

(c)Failure to comply with the provisions of this section constitutes cause for disciplinary action.

§ 7070

Amended by Stats. 1997, Ch. 334, Sec. 1. Effective January 1, 1998.

An applicant shall show that he or she has never been denied a license or had a license revoked for reasons that would preclude the granting of the license applied for. Where the board has denied an application for license under this chapter or Chapter 2 (commencing with Section 480) of Division 1.5, it shall, in its decision, or in its notice under subdivision (b) of Section 485, inform the applicant of the earliest date that the applicant may reapply for a license, which shall be one year from the effective date of the decision or service of notice under subdivision (b) of Section 485, unless the board prescribes an earlier date.

§ 7071