By Shauna Krause, President, Capitol Services, Inc.
Listening is a valuable skill, and in the time I have assisted contractors with licensing law and other issues, I have learned a lot! When the CSLB wants to communicate on changes and new laws I listen and share what’s important for contractors to know…
Let’s start with a significant change in ‘handyman’ law. The Board wants everyone to know that AB 2622 effective this January 1, 2025, will “allow an unlicensed person to complete small projects up to $1,000 without obtaining a contractor’s license if they do not hire workers and no building permits are needed.” In addition, the “new law also states that a person who is not licensed may advertise for construction work if the total contract price for labor, materials, and all other items on a project is less than $1,000. The $1,000 includes all costs associated with the project. Any advertisement must state the person is not licensed.” As with any home improvement construction project, CSLB cautions that a down payment should not exceed 10 percent of the contract price, and any subsequent payments should not exceed the value of the work completed or the materials delivered.
Other new law includes Public Works project licensing and more. As follows according to the Board’s statement on key provisions of SB 1455-
First, Public Works project licensing leads off this list. What’s New? Awarding authorities must now ensure that public works project bidders hold the correct license classification for the work being performed. Why? This ensures public works projects are performed by qualified professionals under the appropriate CSLB license classifications.
The Board also wants contractors to know that ‘quality’ matters, and always has. Number two. Accountability for Workmanship Complaints Why is this news? Contractors subject to workmanship complaints that result in a letter of admonishment or citation will now be required to reimburse CSLB for industry expert costs This change encourages higher quality workmanship and ensures fairness in covering costs associated with complaint resolution.
Third, licensing of Tribal Businesses What’s New? CSLB will license tribal businesses, which must be organized under the jurisdiction of a federally recognized tribe.
Why it matters to you.This change would allow licensed tribal businesses to undertake construction projects off tribal lands, fostering economic growth in tribal communities.
Fourth, depending on many factors, this might be a ‘good news/bad news’ deal. A delay in mandatory Workers’ Compensation Insurance for all has been announced in 2025.
The CSLB says, “The full implementation of mandatory workers’ compensation insurance for all licensees regardless of whether they have employees is delayed from January 1, 2026, to January 1, 2028.” This means Licensees in all trades (except “C-39”, “C-8”, “C-20”, “C-22”, and “D-49”) can continue to claim exemptions if they have no employees, until January 1, 2028. The delay allows CSLB time to determine possible exemption eligibility.
Fifth, direct Payment for PSI Exams. Candidates will pay PSI Exams directly to schedule and reschedule exams. This eliminates CSLB’s role in handling these fees. This also means CSLB will no longer charge a $100 rescheduling fee. However, more rests on your shoulders in this change. “Eligible candidates will receive a notification from CSLB and then contact PSI to schedule exams via PSI’s website or by calling (877) 392-6422.”
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While knowledge is power, knowing where to go for the answers is half he battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write us at Capitol Services, Inc., 3609 Bradshaw Rd, Ste H, #343, Sacramento, CA 95827. Search past columns at www.cutredtape.com