Article 7 - Disciplinary Proceedings

California Business and Professions Code — §§ 7090-7124.6

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Sections (71)

Amended by Stats. 2010, Ch. 698, Sec. 25. (SB 392) Effective January 1, 2011.

The registrar may upon his or her own motion and shall upon the verified complaint in writing of any person, investigate the actions of any applicant, contractor, or home improvement salesperson within the state and may deny the licensure or the renewal of licensure of, or cite, temporarily suspend, or permanently revoke any license or registration if the applicant, licensee, or registrant, is guilty of or commits any one or more of the acts or omissions constituting causes for disciplinary action.

The registrar may proceed to take disciplinary action as in this article provided against an applicant or a person licensed or registered under the provisions of this chapter even though the grounds or cause for such disciplinary

action arose upon projects or while the applicant, licensee, or registrant was acting in a capacity or under circumstances or facts which, under the provisions of Sections 7044, 7045, 7046, and 7048, would otherwise exempt the person or his or her operations from the provisions of this chapter.

Notwithstanding any provision of this chapter, if the registrar finds that any contractor licensed or registered under the provisions of this chapter has willfully and deliberately violated any state or local law relating to the issuance of building permits, other than failure to obtain a county or city permit for repair, maintenance, and adjustment of equipment where such repair, maintenance, or adjustment is valued at less than five hundred dollars ($500) for labor or materials, or where the repair of a part or component part of mechanical equipment consists of replacing such part or component part of mechanical equipment in need of repair with the identical part or

component part, the registrar shall take disciplinary action against the contractor’s license in accordance with this chapter.

For the purpose of this section, there shall be a rebuttable presumption affecting the burden of proof that construction performed without a permit is a willful and deliberate violation.

For the purposes of this section, with respect to administrative proceedings or hearings to suspend or revoke a contractor’s license, the registrar at all times shall have the burden of proof to establish by clear and convincing evidence that he or she is entitled to the relief sought in the petition.

Amended by Stats. 2010, Ch. 698, Sec. 26. (SB 392) Effective January 1, 2011.

(a)(1) Notwithstanding any other provisions of law, the failure to pay a civil penalty, or to comply with an order of correction or an order to pay a specified sum to an injured party in lieu of correction once the order has become final, shall result in the automatic suspension of a license by operation of law 30 days after noncompliance with the terms of the order.
(2)The registrar shall notify the licensee in writing of the failure to comply with the final order and that the license shall be suspended 30 days from the date of the notice.
(3)The licensee may contest the determination of

noncompliance within 15 days after service of the notice, by written notice to the registrar. Upon receipt of the written notice, the registrar may reconsider the determination and after reconsideration may affirm or set aside the suspension.

(4)Reinstatement may be made at any time following the suspension by complying with the final order of the citation. If no reinstatement of the license is made within 90 days of the date of the automatic suspension, the cited license and any other contractor’s license issued to the licensee shall be automatically revoked by operation of law for a period to be determined by the registrar pursuant to Section 7102.
(5)The registrar may delay, for good cause, the revocation of a contractor’s license for failure to comply with the final order of the citation. The delay in the revocation of the license shall not exceed one year. When seeking a

delay of the revocation of his or her license, a licensee shall apply to the registrar in writing prior to the date of the revocation of the licensee’s license by operation of law and state the reasons that establish good cause for the delay. The registrar’s power to grant a delay of the revocation shall expire upon the effective date of the revocation of the licensee’s license by operation of law.

(b)The cited licensee shall also be automatically prohibited from serving as an officer, director, associate, partner, manager, or qualifying individual of another licensee, for the period determined by the registrar, and the employment, election, or association of that person by a licensee shall constitute grounds for disciplinary action. A qualifier disassociated pursuant to this section shall be replaced within 90 days of the date of disassociation. Upon failure to replace the qualifier within 90 days of the prohibition, the license of the other

licensee shall be automatically suspended or the qualifier’s classification removed at the end of the 90 days.

Amended by Stats. 1978, Ch. 985.

In the event a licensee commits a fraudulent act which is a ground for disciplinary action under Section 7116 of this article, the correction of any condition resulting from such act shall not in and of itself preclude the registrar from taking disciplinary action under this article.

If the registrar finds a licensee has engaged in repeated acts which would be grounds for disciplinary action under this article, and if by correction of conditions resulting from those acts the licensee avoided disciplinary action as to each individual act, the correction of those conditions shall not in and of itself preclude the registrar from taking disciplinary action under this article.

Amended by Stats. 2018, Ch. 925, Sec. 5. (AB 3126) Effective January 1, 2019.

(a)(1) A complaint against a licensee alleging commission of any patent acts or omissions that may be grounds for legal action shall be filed in writing with the registrar within four years after the act or omission alleged as the ground for the disciplinary action.
(2)A disciplinary action against a licensee relevant to this subdivision shall be filed or a referral to the arbitration program outlined in Section 7085 shall be referred within four years after the patent act or omission alleged as the ground for disciplinary action or arbitration or within 18 months from the date of the filing of the complaint with the registrar, whichever is later.
(b)(1) A complaint against a licensee alleging commission of any latent acts or omissions that may be grounds for legal action pursuant to subdivision (a) of Section 7109 regarding structural defects, as defined by regulation, shall be filed in writing with the registrar within 10 years after the act or omission alleged as the ground for the disciplinary action.
(2)A disciplinary action against a licensee relevant to this subdivision shall be filed within 10 years after the latent act or omission alleged as the ground for disciplinary action or within 18 months from the date of the filing of the complaint with the registrar, whichever is later. As used in this subdivision “latent act or omission” means an act or omission that is not apparent by reasonable inspection.
(c)A disciplinary action alleging a violation of Section 7112 shall be filed

within two years after the discovery by the registrar or by the board of the alleged facts constituting the fraud or misrepresentation prohibited by the section.

(d)With respect to a licensee who has been convicted of a crime and, as a result of that conviction is subject to discipline under Section 7123, the disciplinary action shall be filed within two years after the discovery of the conviction by the registrar or by the board.
(e)A disciplinary action regarding an alleged breach of an express, written warranty issued by the contractor shall be filed not later than 18 months from the expiration of the warranty.
(f)The proceedings under this article shall be conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the

registrar shall have all the powers granted therein.

(g)Nothing in this section shall be construed to affect the liability of a surety or the period of limitations prescribed by law for the commencement of actions against a surety or lawful money or cashier’s check deposited pursuant to paragraph (1) of subdivision (a) of Section 995.710 of the Code of Civil Procedure.

Amended by Stats. 2023, Ch. 153, Sec. 2. (SB 630) Effective January 1, 2024.

(a)The decision may:
(1)Provide for the immediate complete suspension by the licensee of all operations as a contractor during the period fixed by the decision.
(2)Permit the licensee to complete any or all contracts shown by competent evidence taken at the hearing to be then uncompleted.
(3)Impose upon the licensee compliance with such specific terms and conditions as may be just in connection with

the licensee’s operations as a contractor disclosed at the hearing and may further provide that until those terms and conditions are complied with no application for restoration of the suspended or revoked license shall be accepted by the registrar.

(4)(A) Provide for the stay of execution of the decision pending completion of specified terms and conditions of probation.
(B)Failure to fully comply with the terms and conditions of probation set pursuant to subparagraph (A) may result in automatic termination of the stay of execution without

further notice. If a stay of execution is terminated pursuant to this subparagraph, the decision shall be considered a disciplinary action within the meaning of this chapter.

(b)The specific terms and conditions imposed pursuant to paragraph (3) or (4) of subdivision (a) may include, but are not limited to, any of the following:
(1)Payment of restitution to persons injured as a result of the violation.
(2)Payment of the costs of investigation and enforcement pursuant to Section 125.3.
(3)Enrollment in, and completion of, specified administrative or trade-specific coursework.
(4)Successful completion of the board’s law and business examination or trade examination, as appropriate.
(5)Any further terms and conditions as are set forth for specified violations in the board’s disciplinary guidelines in Section 871 of Title 16 of the California Code of Regulations.

Amended by Stats. 2010, Ch. 698, Sec. 27. (SB 392) Effective January 1, 2011.

For the purposes of this chapter, the term “licensee” shall include an individual, partnership, corporation, limited liability company, joint venture, or any combination or organization licensed under this chapter, and shall also include any named responsible managing officer, responsible managing manager, responsible managing member, or personnel of that licentiate whose appearance has qualified the licentiate under the provisions of Section 7068.

Amended by Stats. 1995, Ch. 467, Sec. 11. Effective January 1, 1996.

Notwithstanding the provisions of Sections 7121 and 7122, when any license has been suspended by a decision of the registrar pursuant to an accusation or pursuant to subdivision (b) of Section 7071.17, Section 7085.6 or 7090.1, any additional license issued under this chapter in the name of the licensee or for which the licensee furnished qualifying experience and appearance under the provisions of Section 7068, may be suspended by the registrar without further notice.

Amended by Stats. 1995, Ch. 467, Sec. 12. Effective January 1, 1996.

Notwithstanding the provisions of Sections 7121 and 7122, when any license has been revoked under the provisions of this chapter, any additional license issued under this chapter in the name of the licensee or for which the licensee furnished qualifying experience and appearance under the provisions of Section 7068, may be revoked by the registrar without further notice.

Amended by Stats. 1987, Ch. 930, Sec. 7. Effective September 22, 1987.

If, upon investigation, the registrar has probable cause to believe that a licensee, or an applicant for a license under this chapter, has committed any acts or omissions which are grounds for denial, revocation, or suspension of license, he or she may, in lieu of proceeding pursuant to this article, issue a citation to the licensee or applicant. Each citation shall be in writing and shall describe with particularity the nature of the violation, including a reference to the provisions alleged to have been violated. In addition, each citation may contain an order of correction fixing a reasonable time for correction of the violation or an order, against the licensee only, for payment of a specified sum to an injured party in lieu of correction, and may contain an assessment of a civil penalty.

Added by Stats. 1979, Ch. 1013, Sec. 18.

The board shall promulgate regulations covering the formulation of an order of correction which gives due consideration to the time required to correct and the practical feasibility of correction.

Amended by Stats. 1992, Ch. 294, Sec. 3. Effective January 1, 1993.

(a)If, upon investigation, the registrar has probable cause to believe that a licensee, an applicant for a license, or an unlicensed individual acting in the capacity of a contractor who is not otherwise exempted from the provisions of this chapter, has violated Section 7027.1 by advertising for construction or work of improvement covered by this chapter in an alphabetical or classified directory, without being properly licensed, the registrar may issue a citation under Section 7099 containing an order of correction which requires the violator to cease the unlawful advertising and to notify the telephone company furnishing services to the violator to disconnect the telephone service furnished to any telephone number contained in the unlawful advertising, and that subsequent calls to that number shall not be referred by the telephone company to any new telephone number obtained by that person.
(b)If the person to whom a citation is issued under subdivision (a) notifies the registrar that he or she intends to contest the citation, the registrar shall afford an opportunity for a hearing, as specified in Section 7099.5, within 90 days after receiving the notification.
(c)If the person to whom a citation and order of correction is issued under subdivision (a) fails to comply with the order of correction after the order is final, the registrar shall inform the Public Utilities Commission of the violation, and the Public Utilities Commission shall require the telephone corporation furnishing services to that person to disconnect the telephone service furnished to any telephone number contained in the unlawful advertising.
(d)The good faith compliance by a telephone corporation with an order of the Public Utilities Commission to terminate service issued pursuant to this section shall constitute a complete defense to any civil or criminal action brought against the telephone corporation arising from the termination of service.

Amended by Stats. 1992, Ch. 294, Sec. 4. Effective January 1, 1993.

(a)No person shall advertise, as that term is defined in Section 7027.1, to promote his or her services for the removal of asbestos unless he or she is certified to engage in asbestos-related work pursuant to Section 7058.5, and registered for that purpose pursuant to Section 6501.5 of the Labor Code. Each advertisement shall include that person’s certification and registration numbers and shall use the same name under which that person is certified and registered.
(b)The registrar shall issue a notice to comply with the order of correction provisions of subdivision (a) of Section 7099.10, to any person who is certified and registered, as described in subdivision (a), and who fails to include in any advertisement his or her certification and registration numbers.
(c)The registrar shall issue a citation pursuant to Section 7099 to any person who fails to comply with the notice required by subdivision (b), or who advertises to promote his or her services for the removal of asbestos but does not possess valid certification and registration numbers as required by subdivision (a), or who fails to use in that advertisement the same name under which he or she is certified and registered.

Citations shall be issued and conducted pursuant to Sections 7099 to 7099.10, inclusive.

Current Version

Amended by Stats. 2025, Ch. 455, Sec. 2.1. (SB 291) Effective January 1, 2026. Repealed as of July 1, 2026, by its own provisions. See later operative version added by Sec. 2.2 of Stats. 2025, Ch. 455.

(a)The board shall promulgate regulations covering the assessment of civil penalties under this article that give due consideration to the appropriateness of the penalty with respect to the following factors:
(1)The gravity of the violation.
(2)The good faith of the licensee or applicant for licensure being charged.
(3)The history of previous violations.
(b)Notwithstanding Section 125.9, and except as otherwise provided by this chapter, a civil penalty shall not be assessed in an amount greater than eight thousand dollars ($8,000). Notwithstanding Section 125.9, a

civil penalty not to exceed thirty thousand dollars ($30,000) may be assessed for a violation of Section 7110, 7114, or 7118.

(c)This section shall remain in effect only until July 1, 2026, and as of that date is repealed.
Future Version

Repealed (in Sec. 2.1) and added by Stats. 2025, Ch. 455, Sec. 2.2. (SB 291) Effective January 1, 2026. Operative July 1, 2026, by its own provisions.

(a)The board shall promulgate regulations covering the assessment of civil penalties under this article that give due consideration to the appropriateness of the penalty with respect to the following factors:
(1)The gravity of the violation.
(2)The good faith of the licensee or applicant for licensure being charged.
(3)The history of previous violations.
(b)(1) Notwithstanding Section 125.9, and except as otherwise provided by this chapter, a civil penalty shall be assessed in an amount not less than five hundred dollars ($500)

nor greater than eight thousand dollars ($8,000). Notwithstanding Section 125.9, a civil penalty shall be assessed in an amount not less than one thousand five hundred dollars ($1,500) nor greater than thirty thousand dollars ($30,000) for a violation of Section 7110, 7114, or 7118.

(2)The board may adjust all minimum civil penalties imposed by this section for inflation every five years. The adjustment shall be equivalent to the percentage, if any, that the Consumer Price Index, as determined pursuant to Section 2212 of the Revenue and Taxation Code, exceeds the Consumer Price Index at the time this subdivision goes into effect. Any increase determined under this paragraph shall be rounded as follows:
(A)In multiples of one hundred dollars ($100) for penalties greater than one hundred dollars ($100) but less than or equal to one thousand dollars ($1,000).
(B)In multiples of one thousand dollars ($1,000) for penalties greater than one thousand dollars ($1,000).
(c)This section shall become operative on July 1, 2026.

Amended by Stats. 1984, Ch. 606, Sec. 2.

Any licensee or applicant for licensure served with a citation pursuant to Section 7099, may appeal to the registrar within 15 working days from service of the citation with respect to violations alleged by the registrar, correction periods, amount of penalties, and the reasonableness of the change required by the registrar to correct the condition.

Amended by Stats. 1984, Ch. 606, Sec. 3.

If within 15 working days from service of the citation issued by the registrar, the licensee or applicant for licensure fails to notify the registrar that he or she intends to contest the citation, the citation shall be deemed a final order of the registrar and not be subject to review by any court or agency. The 15-day period may be extended by the registrar for cause.

Amended by Stats. 1984, Ch. 606, Sec. 4.

If a licensee or applicant for licensure notifies the registrar that he or she intends to contest a citation issued under Section 7099, the registrar shall afford an opportunity for a hearing. The registrar shall thereafter issue a decision, based on findings of fact, affirming, modifying, or vacating the citation or penalty, or directing other appropriate relief. The proceedings under this section shall be conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the registrar shall have all the powers granted therein.

Amended by Stats. 1986, Ch. 1205, Sec. 2.

(a)The failure of a licensee to comply with a citation after it is final is a ground for suspension or revocation of license.
(b)The failure of an applicant for licensure to comply with a citation after it is final is a ground for denial of license.

Added by Stats. 1979, Ch. 1013, Sec. 24.

No order for payment of a civil penalty shall be made against any bond required pursuant to Sections 7071.5 to 7071.8.

Amended by Stats. 2019, Ch. 497, Sec. 12. (AB 991) Effective January 1, 2020.

(a)Notwithstanding any other law, if a person cited pursuant to Section 7028.7 or 7099 wishes to contest the citation, that person shall, within 15 days after service of the citation, file in writing a request for an administrative hearing as provided pursuant to Section 7028.12 or 7099.5.
(b)(1) In addition to, or instead of, requesting an administrative hearing pursuant to subdivision (a), the person cited pursuant to Section 7028.7 or 7099 may, within 15 days after service of the citation, contest the citation by submitting a written request for an informal citation conference to the chief of the enforcement division or a designee.
(2)Upon receipt of a written request for

an informal citation conference, the chief of the enforcement division or a designee shall, within 60 days of the request, hold an informal citation conference with the person requesting the conference. The cited person may be accompanied and represented by an attorney or other authorized representative.

(3)If an informal citation conference is held, the request for an administrative hearing shall be deemed withdrawn and the chief of the enforcement division, or a designee, may affirm, modify, or dismiss the citation at the conclusion of the informal citation conference. If so affirmed or modified, the citation originally issued shall be considered withdrawn and an affirmed or modified citation, including reasons for the decision, shall be issued. The affirmed or modified citation shall be mailed to the cited person and that person’s counsel, if any, within 10 days of the date of the informal citation conference.
(4)If a cited person wishes to contest a citation affirmed or modified pursuant to paragraph (3), the person shall, within 30 days after service of the modified or affirmed citation, contest the affirmed or modified citation by submitting a written request for an administrative hearing to the chief of the enforcement division or a designee. An informal citation conference shall not be held for affirmed or modified citations.
(c)The citation conference is informal and shall not be subject to the Administrative Procedure Act (Chapter 4.5 (commencing with Section 11400) of, or Chapter 5 (commencing with Section 11500) of Part 1 of, Division 3 of Title 2 of the Government Code).

Amended by Stats. 2021, Ch. 94, Sec. 2. (AB 569) Effective January 1, 2022.

(a)If, upon investigation, the registrar has probable cause to believe that a licensee, registrant, or applicant has committed acts or omissions that are grounds for denial, suspension, or revocation of a license or registration, the registrar, or their designee, may issue a letter of admonishment to an applicant, licensee, or registrant in lieu of issuing a citation. Nothing in this article shall in any way limit the registrar’s discretionary authority or ability to issue a letter of admonishment as prescribed by this subdivision.
(b)The letter of admonishment shall be in writing and shall describe in detail the nature and facts of the violation, including a reference to the statutes or regulations violated. The letter of admonishment shall inform the licensee,

registrant, or applicant that within 30 days of service of the letter of admonishment the licensee, registrant, or applicant may do either of the following:

(1)Submit a written request for an office conference to the registrar to contest the letter of admonishment. Upon a timely request, the registrar, or their designee, shall hold an office conference with the licensee, registrant, or applicant and, if applicable, their legal counsel or authorized representative.
(A)No individual other than the legal counsel or authorized representative of the licensee, registrant, or applicant may accompany the licensee, registrant, or applicant to the office conference.
(B)Prior to or at the office conference, the licensee, registrant, or applicant may submit to the registrar declarations and documents pertinent to the subject

matter of the letter of admonishment.

(C)The office conference is intended to be informal and shall not be subject to the Administrative Procedure Act (Chapter 4.5 (commencing with Section 11400) or Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code).
(D)After the office conference, the registrar, or their designee, may affirm, modify, or withdraw the letter of admonishment. Within 14 calendar days from the date of the office conference, the registrar, or their designee, shall personally serve or send the written decision by certified mail to the licensee’s, registrant’s, or applicant’s address of record. This decision shall be deemed the final administrative decision concerning the letter of admonishment.
(E)Judicial review of the decision may be had by filing a

petition for a writ of mandate in accordance with the provisions of Section 1094.5 of the Code of Civil Procedure within 30 days after the date the decision was personally served or sent by certified mail. The judicial review shall extend to the question of whether or not there was a prejudicial abuse of discretion in the issuance of the letter of admonishment or in the decision after the office conference.

(2)Comply with the letter of admonishment and, if required, submit a written corrective action plan to the registrar documenting compliance. If an office conference is not requested pursuant to this section, compliance with the letter of admonishment shall not constitute an admission of the violation noted in the letter of admonishment.
(c)The letter of admonishment shall be served upon the licensee, registrant, or applicant personally or by certified mail at their address of

record with the board. If the licensee, registrant, or applicant is served by certified mail, service shall be effective upon deposit in the United States mail.

(d)The licensee, registrant, or applicant shall maintain and have readily available a copy of the letter of admonishment and corrective action plan, if any, for at least one year from the date of issuance of the letter of admonishment.
(e)Nothing in this subdivision shall in any way limit the board’s authority or ability to do either of the following:
(1)Issue a citation pursuant to Section 125.9, 148, or 7099.
(2)Institute disciplinary proceedings pursuant to this article.
(f)The issuance of a letter of admonishment shall not

be construed as a disciplinary action or discipline for purposes of licensure or the reporting of discipline for licensure.

(g)The board shall not issue a letter of admonishment when any one of the following factors is present:
(1)The licensee, registrant, or applicant was unlicensed at the time of the violation.
(2)The licensee, registrant, or applicant has a history of the same or similar violations.
(3)The violation resulted in financial harm to another.
(4)The victim is an elder or dependent adult as defined in Section 368 of the Penal Code.
(5)The violation is related to the repair of damage caused by a natural disaster.
(h)The board may adopt regulations to further define the circumstances under which a letter of admonishment may be issued.

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