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California Gold Contractor Licensing Newsletter
GWICA PARTNERS WITH CSLB TO KEEP OUR MEMBERS "UP TO SPEED."
After the IRS and the Franchise Tax Board, the CSLB is the one government agency that most affects our livelihood. That's why a key part of GWICA's continuing efforts on behalf of our membership is bringing you important information from the California State Licensing Board that impact contractors' concerns. Open lines of communication between the government and the consumer means fewer problems that may cause you time and money later on. And serving the small, independent contractor is what we are about.
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Contractors State License Board
Ready to Begin
Phase II of New Fingerprint Program
March 15, 2005
Industry Bulletin - Fingerprint Program, Phase II
On April 1, 2005, the Contractors State License Board (CSLB) begins Phase II of its new fingerprinting program. Beginning on that date, current licensees who apply for additional classifications, as well as each officer, partner, owner, responsible managing employee and home improvement salespersons will need to provide fingerprints whenever an application is submitted for a license, registration, or to change an officer on an existing corporate license. In Phase I of the program, which started January 1, 2005, fingerprints are required for all personnel listed on an application if the qualifier is required to take an exam.
Since the fingerprint program is still new, many have questions on how it works. Below is a list of most commonly asked questions. For more information on the new requirements, please visit the CSLB Web site or call 1-800-321-CSLB (2752).
Who is not affected?
- The new program does not affect two groups of licensees. First, those already on a current or renewable California contractors license who do not apply for any changes to their license. And, second, current licensees who apply for a joint venture license.
How can applicants get a fingerprint packet?
- Once the CSLB receives an applicant's application, they will be sent a fingerprint packet that includes complete instructions.
Where can applicants get fingerprints taken?
- Fingerprint services are available at most local police departments, sheriff's offices or any public applicant Live Scan station. For the Live Scan locations and hours of operation throughout the state, read this PDF pamphlet: Live Scan Locations. Please note that fees for the service vary.
Why should applicants use Live Scan?
- The CSLB strongly encourages all applicants who are required to submit fingerprints, to use the Live Scan system. At this time the fingerprint requirement has not delayed the application process for individuals who submit their prints electronically and do not have a criminal history. Using the old "fingerprint card" system could delay an application by three to six months or more.
How are the fingerprints used?
- The Department of Justice (DOJ) uses the fingerprint information to conduct a criminal background check on the applicant. Having a criminal history does not automatically disqualify any applicant from getting a contractor's license.
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GWICA RECIEVES LATEST CSLB BULLETIN
Take a look at the latest "industry bulletin" issued by the CSLB. This was provided to GWICA by Chief of Public Affairs, Rick Lopes:
March 07, 2005
Bulletin #05-03 - Advertising: The Legal Rights and Wrongs
SACRAMENTO - Advertising is a way to catch the attention of new clients, especially during spring home improvement season. The methods to publicize a business can take many forms. Besides newspapers and radio, it can also be business cards, lettering on your truck, brochures, directories like the yellow pages and the Internet. The Contractors State License Board (CSLB) is offering some reminders about the laws in this area that effect contractors.
- Contractor's License Number must be on anything considered advertising
Licensed contractors are required to include their CSLB license numbers on everything from contracts, business cards, and yard signs to placards on commercially registered vehicles.
- False Advertising
It is a misdemeanor to use false, misleading or deceptive advertisements to sell clients home improvements and other services. It is also illegal to make misleading claims or advertise prices that you do not intend to accept contracts for.
- Advertising for work you're not licensed to do
Licensed contractors are not allowed to advertise for construction work outside of the areas for which they are licensed.
- Don't advertise about bonding
Contractors are forbidden by law to advertise the fact that they are bonded. It could lead the public to believe there is a higher level of protection than might be the case.
- Owner-Builders
If owner-builders use any signs, cards, or directories that imply they can be hired by the public for construction or home improvement, they become subject to the same laws as other contractors. B&P section 7027 also prevents owner-builders from advertising illegally.
- Unlicensed Operators
Unlicensed operators can legally advertise for construction work or improvements if the cost of the work (labor & materials) is under $500. But, they must state in the ad, that they are unlicensed and provide a written disclosure statement saying they are unlicensed. If an unlicensed operator advertises as a contractor in a directory such as the Yellow Pages, they face fines.
- Fines
Fines for licensees who violate the laws can range from $50 to $2,000 depending on how egregious the act. The fines for non-license holders get much steeper, ranging from $200 all the way up to $15,000 for acting in the capacity of a contractor without having a license.
Get more information about advertising and advertising tips from the CSLB Web site under (www.cslb.ca.gov/forms/advertising.pdf). A "Hot Lead Referral Form" can be downloaded on the CSLB Web site to report unlicensed contractors activity.
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GWICA RECIEVES LATEST CSLB BULLETIN
Take a look at the latest "industry bulletin" issued by the CSLB. This was provided to GWICA by Chief of Public Affairs, Rick Lopes, to inform our members about the new fingerprint law by answering some frequently asked questions:
December 10, 2004
Bulletin #04-01 - Contractors State License Board Ready to Implement New Fingerprint Law
Effective January 1, 2005, the Contractors State License Board (CSLB) will implement a new law that will require people seeking a new license to submit a full set of fingerprints. The information below focuses on how the program will work and whom it will affect.
Who is affected?
- Starting January 1, 2005 (Phase I)
- All personnel listed on an application if the qualifier is required to take an exam. Current licensees applying for additional classifications will not need to submit fingerprints until Phase II in the spring.
- Starting in the spring of 2005 (Phase II)
- Current licensees who apply for additional classifications, as well as each officer, partner, owner, responsible managing employee and home improvement salespersons will also need to provide fingerprints whenever an application is submitted for a license, registration or to change an officer on an existing corporate license.
Who is not affected?
- People who are already licensed by the CSLB and do not apply for any changes to his/her license will not be required to submit fingerprints. The only exception is in a case where the license expired more than 5 years ago and therefore is no longer renewable. Applicants for a joint venture license do not have to submit fingerprints.
How will applicants get a fingerprint packet?
- Once applicants submit a license application, CSLB will send out a fingerprint packet. This packet must be used to submit fingerprints.
Where do applicants get fingerprints taken?
- Fingerprint services are available at most local police departments, sheriff's offices or any public applicant Live Scan station. There are fees for the service.
How will the fingerprints be used?
- The fingerprint information will be used by the Department of Justice (DOJ) to conduct a criminal background check on the applicant. Having a criminal history will not automatically disqualify any applicant from getting a CSLB license.
Why should applicants use Live Scan?
- The CSLB strongly encourages all applicants who are required to submit fingerprints, to utilize the Live Scan system. By doing so, CSLB expects that the new requirement will not add any additional time to the application process for individuals who do not have a criminal history. Utilizing the old "fingerprint card" system could delay an application by three to six months or more.
For more information on the new fingerprinting requirements, please visit the CSLB Web site: California State License Board or call 1-800-321-CSLB (2752).
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GWICA Meets with Secretary of Consumer Affairs
Left to right:
Ron Givens; GWICA, CEO Contractor Services Company, Inc.
Fred Aguiar; Secretary of Consumer Affairs.
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October 7th, 2004
Sacramento, CA. - The Secretary of the Consumer Affairs Agency, Fred Aguiar, met with GWICA founders Ron Givens and Jeff Thompson this morning to discuss the new "private sector initiative" to assist small independent contractors. As Secretary, Mr. Aguiar occupies a cabinet level position for the State of California which oversees scores of boards and departments, including the Contractors State Licensing Board.
Secretary Aguiar immediately locked on to the need for the services of GWICA, offering his own personal experience with a small independent cabinet maker who has been given a job in the home of the Secretary and his wife. "I am sure he is in need of a medical plan. The small guys are also forced to stay small as the cost of worker's comp makes hiring an employee an impossibility," he observed.
Secretary Aguiar seemed genuinely impressed with the direction of GWICA's plans for services and actions. We have pledged to keep him in the loop as we move forward.
The Governor is a "tone-setter and delegater" according to Fred. "He covers a tremendous amount of ground this way. He is amazingly positive. He wants to know what you are doing as an agency and when you fill him in (during our bi-weekly cabinet meetings) he wants to know what problem you are grappling with. He is the antithesis of former Governor Gray Davis' micro-management." Davis had a horrible reputation for insisting that he be consulted with issues and give the final "go or no go." As a result much of State management stagnated as he studied issues from afar and pondered their solutions. Schwarzenegger is just the opposite. He wants things to get done. You may remember his pledge in his campaign: "Action! Action! Action!" And Governor Schwarzenegger trusts his appointees to act.
The Secretary's key challenges at present are "asset management" for the gargantuan Department of General Services, and (closer to home) the improvement of customer services of the Department of Consumer Affairs. For example, the initiative to attack and service the huge backlog of applications and casework with the CSLB (and other boards) came from a plan generated under the leadership of the Secretary and his Director, Charlene Zettel. Zettel has implemented "A teams" to assist various State Boards in streamlining their business.
As a former member of the State Assembly, Fred Aguiar, is well aware of the State's budget challenges and has witnessed the shenanigans of the majority party (Democrats) over the years. These misguided efforts robbed the Boards of their licensure fees and loaded them into the general fund for use as general tax revenue. As a consequence of these earlier games, many State Boards (the CSLB included) found themselves under funded because they could not keep the revenue they generated to do their work and service the public purpose for which they were created.
Under Governor Schwarzenegger and Secretary Aguiar, this "shell game" is finding strong opposition. The refreshing intention to keep fees generated by specific boards within their own budgets to support the work of those specific boards is good news indeed!
Source-California Gold Report
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GWICA Meets with Director of Consumer Affairs
Left to right:
Ron Givens; GWICA, CEO Contractor Services Company, Inc.
Charlene Zettel; Director of Consumer Affairs.
Jeffery Thompson; GWICA.
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September 26th, 2004
Sacramento, CA. - Golden West Independent Contractor Association (GWICA) co-founders, Ron Givens and Jeff Thompson, met with Charlene Zettel, Director of the Department of Consumer Affairs (DCA) for California on September 27, 2004 on behalf of the licensing and bonding industry members of GWICA. The meeting addressed, among other issues, “administrative actions” taken by the Contractor’s State License Board (CSLB) which make it harder for consumers to contact applicants and licensees by telephone.
As a result of the meeting, the DCA is working with CSLB Legal Counsel and Board Member Don Chang and other industry interests, to determine the nature and business relationships of applicants for licenses and industry groups. Specifically how current law affects privacy rights of business versus individuals. Larry Booth, Chairman of the CSLB has directed Steve Sands, CSLB Registrar, to respond to information requests made by Ron Givens at the Boards Executive Committee Meeting held on September, 23, 2004. According to Givens, no such response had been received at the time this article was printed.
Ron Givens is President and CEO of Contractor Services Company, Inc., and has successfully helped the CSLB with legislation this year (AB2216, Nakanishi) that was signed by Governor Schwarzenegger on September 18, 2004.
Ron Givens stated “we (GWICA) will continue to fight for the small businesses in California. Every one of them is vital to the economy of this State. If a single job is lost because of a bureaucratic ‘administrative decision,’ we want someone to tell us why.” Mr. Givens has been in the business of “helping the little guy” for most of his professional career.
More meetings with Agency Executives and Legislature are scheduled.
Source-California Gold Report
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