AB 2622: Contractors: exemptions: work and advertisements.

Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law makes it a misdemeanor for a person to act as a contractor without a license, unless exempted. Existing law exempts from the Contractors State License Law a work or operation on one undertaking or project by one or more contracts, if the aggregate contract price for labor, material, and all other items is under $500, except as specified.

This bill would revise the exemption by increasing the maximum aggregate contract price to $1,000 and specifying that the exemption would apply if the work or operation does not require a building permit. The bill would specify that the exemption would not apply to a person who employs another person to perform, or assist in performing, the work or operation. By narrowing the exemption from the licensing requirement, the bill would expand a crime and, thereby, impose a state-mandated local program.

Existing law makes it a misdemeanor for a person to advertise for construction work or work of improvement without a license. Existing law authorizes a person who is not licensed to advertise for construction work or work of improvement if the aggregate contract price for labor, material, and all other items on a project or undertaking is under $500 and the person states in the advertisement that the person is not licensed.

This bill would expand the advertising authorization by increasing the aggregate contract price to $1,000.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.