Bill Text: CA SB779 | 2025-2026 | Regular Session | Chaptered
Bill Title: Contractors: civil penalties.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2025-10-01 - Chaptered by Secretary of State. Chapter 233, Statutes of 2025. [SB779 Detail]
Download: California-2025-SB779-Chaptered.html
Senate Bill
No. 779
CHAPTER 233
An act to amend Section 7138.1 of, and to amend, repeal, and add Sections 7028.7 and 7099.2 of, the Business and Professions Code, relating to contractors.
[
Approved by
Governor
October 01, 2025.
Filed with
Secretary of State
October 01, 2025.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 779, Archuleta.
Contractors: civil penalties.
Existing law, the Contractors State License Law, provides for the licensure and regulation of contractors by the Contractors State License Board in the Department of Consumer Affairs. Under existing law, willful or deliberate disregard by a licensed contractor of various state building, labor, and safety laws constitutes a cause for disciplinary action by the board. Existing law provides for related disciplinary proceedings and requires the board to promulgate regulations covering the assessment of civil penalties under those disciplinary provisions, as prescribed. Existing law authorizes a civil penalty not less than $200 and not to exceed $15,000 for certain violations relating to unlicensed persons, as specified. Existing law authorizes a civil penalty not to exceed $8,000 or $30,000 for
other violations of the Contractors State License Law, as provided.
This bill, commencing July 1, 2026, would increase the minimum civil penalties for violations related to unlicensed persons to at least $1,500 and would impose minimum civil penalties of at least $500 or $1,500 for other specified violations, as provided. The bill would also authorize the Contractors State License Board to adjust the amounts of these minimum civil penalties for inflation every 5 years, as provided.
Existing law authorizes the board to set specified fees according to a prescribed schedule. Existing law, notwithstanding this fee schedule, authorizes the board to set fees to maintain the amount of the reserve fund at a level not to exceed approximately 6 months of annual authorized board expenditures.
This bill would increase the above-described limit on the reserve fund to a level not to exceed
approximately 12 months of annual authorized board expenditures.
This bill would incorporate additional changes to Section 7099.2 of the Business and Professions Code proposed by SB 291 to be operative only if this bill and SB 291 are enacted and this bill is enacted last.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 7028.7 of the Business and Professions Code is amended to read:7028.7.
(a) If upon inspection or investigation, either upon complaint or otherwise, the registrar has probable cause to believe that a person is acting in the capacity of or engaging in the business of a contractor or salesperson within this state without having a license or registration in good standing to so act or engage, and the person is not otherwise exempted from this chapter, the registrar shall issue a citation to that person.(b) Within 72 hours of receiving notice that a public entity is intending to award, or has awarded, a contract to an unlicensed contractor, the registrar shall give written notice to the public entity that a citation may be issued if a contract is awarded to an unlicensed
contractor. If after receiving the written notice from the registrar that the public entity has awarded or awards the contract to an unlicensed contractor, the registrar may issue a citation to the responsible officer or employee of the public entity as specified in Section 7028.15.
(c) Each citation shall be in writing and shall describe with particularity the basis of the citation. Notwithstanding Sections 125.9 and 148, each citation shall contain an order of abatement and an assessment of a civil penalty in an amount not less than two hundred dollars ($200) nor more than fifteen thousand dollars ($15,000).
(d) With the approval of the Contractors State License Board, the registrar shall prescribe procedures for the issuance of a citation under this section. The board shall
adopt regulations covering the assessment of a civil penalty that shall give due consideration to the gravity of the violation, and any history of previous violations.
(e) The sanctions authorized under this section shall be separate from, and in addition to, all other remedies either civil or criminal.
(f) This section shall remain in effect only until July 1, 2026, and as of that date is repealed.
SEC. 2.
Section 7028.7 is added to the Business and Professions Code, to read:7028.7.
(a) If upon inspection or investigation, either upon complaint or otherwise, the registrar has probable cause to believe that a person is acting in the capacity of or engaging in the business of a contractor or salesperson within this state without having a license or registration in good standing to so act or engage, and the person is not otherwise exempted from this chapter, the registrar shall issue a citation to that person.(b) Within 72 hours of receiving notice that a public entity is intending to award, or has awarded, a contract to an unlicensed contractor, the registrar shall give written notice to the public entity that a citation may be issued if a contract is awarded to an unlicensed
contractor. If after receiving the written notice from the registrar that the public entity has awarded or awards the contract to an unlicensed contractor, the registrar may issue a citation to the responsible officer or employee of the public entity as specified in Section 7028.15.
(c) Each citation shall be in writing and shall describe with particularity the basis of the citation. Notwithstanding Sections 125.9 and 148, each citation shall contain an order of abatement and an assessment of a civil penalty in an amount not less than fifteen hundred dollars ($1,500) nor more than fifteen thousand dollars ($15,000).
(d) With the approval of the Contractors State License Board, the registrar shall prescribe procedures for the issuance of a citation under this section. The board
shall adopt regulations covering the assessment of a civil penalty that shall give due consideration to the gravity of the violation, and any history of previous violations.
(e) The sanctions authorized under this section shall be separate from, and in addition to, all other remedies either civil or criminal.
(f) The board may adjust the 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 in multiples of one hundred dollars ($100) for penalties greater than one
hundred dollars ($100).
(g) This section shall become operative on July 1, 2026.
SEC. 3.
Section 7099.2 of the Business and Professions Code is amended to read:7099.2.
(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, 7118, or 7125.4.
(c) This section shall remain in effect only until July 1, 2026, and as of that date is repealed.
SEC. 3.5.
Section 7099.2 of the Business and Professions Code is amended to read:7099.2.
(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.
SEC. 4.
Section 7099.2 is added to the Business and Professions Code, to read:7099.2.
(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, 7118, or 7125.4.
(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.
SEC. 4.5.
Section 7099.2 is added to the Business and Professions Code, to read:7099.2.
(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.
