Bills

SB 1165: Contractor licenses: outstanding liabilities assessed by the California Department of Tax and Fee Administration.

  • Session Year: 2025-2026
  • House: Senate
  • Latest Version Date: 2026-04-16

Current Status:

In Progress

(2026-04-16: Set for hearing April 22.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

Existing law, the Contractors State License Law, establishes the Contractors State License Board and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law requires the board to appoint a registrar of contractors, as specified, to serve as the executive officer and secretary of the board. Existing law permits the registrar to suspend or refuse to issue, reinstate, reactivate, or renew a license for a failure to resolve all outstanding final liabilities, including taxes and any fees that may be assessed by, among others, the State Board of Equalization, except for licensees who have Equalization and the Franchise Tax Board. Existing law exempts from that provision the outstanding final liabilities assessed by the State Board of Equalization of a licensee who has entered into an installment payment agreement with the State Board of Equalization, as provided.

Existing law, on July 1, 2017, transferred to the California Department of Tax and Fee Administration various duties, powers, and responsibilities of the State Board of Equalization.

This bill would permit the registrar to suspend or refuse to issue, reinstate, reactivate, or renew a license for a failure to resolve outstanding liabilities assessed by update the above-described outstanding liability enforcement provisions of the Contractors State License Law to include references to the California Department of Tax and Fee Administration. The bill would authorize the department to request that the registrar suspend or refuse to issue, reinstate, reactivate, or renew a license unless the licensee has entered into an installment payment agreement with the department, as specified. The bill would require the department to give written notice to the licensee of that request, as provided. The bill would authorize the department to prescribe, adopt, and enforce regulations relating to the administration and enforcement of these provisions. Administration, as specified. The bill would require the installment payment agreements with the State Board of Equalization or the California Department of Tax and Fee Administration department to be in writing.

The Contractors State License Law requires the application for a contractors license to include an authorization by the applicant for the Franchise Tax Board to disclose the tax information that is required for the registrar to administer the outstanding liability enforcement provisions, as specified. Existing law authorizes the Franchise Tax Board to audit these authorizations.

This bill would revise the application requirements to include a similar tax information disclosure authorization for the department, as specified. The bill would also authorize the department to audit these authorizations.

Discussed in Hearing

Senate Standing Committee on Business, Professions and Economic Development2MIN
Apr 13, 2026

Senate Standing Committee on Business, Professions and Economic Development

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News Coverage:

SB 1165: Contractor licenses: outstanding liabilities assessed by the California Department of Tax and Fee Administration. | Digital Democracy