By Shauna Krause, President, Capitol Services, Inc.
Working ‘unlicensed’ in California can really ‘sting’. If you are ‘planting’ pipe are you a contractor, a farmer or both? Another contractor discovers that his ‘judgment’ has limitations that might never go away…
As 2013 winds down, we can look back at the many illegal and unlicensed individuals that were taken off the street by the CSLB. While there is no way to fully alleviate unlicensed activities in CA, the Contractor’s Board Enforcement Unit is doing its best to level the playing field for those who are properly licensed and playing by the rules.
For instance, in late July, fifteen illegal individuals were arrested and cited in Concord for working without a contractor’s license. According to the CSLB, back in May Statewide Investigative Fraud Team (SWIFT) Investigators were in Ridgecrest “doing what they do best…citing (another fifteen) illegal operators masquerading as licensed contractors”. Eight unlicensed individuals were ‘stung’ and cited by the CSLB in one San Jose neighborhood last February, while more recently in September, the Board apprehended another eight suspected illegal “contractors” bidding work in Santa Monica.
To date, SWIFT, in conjunction with various State and local government agencies, have conducted over 30 stings throughout the State. It is common knowledge that some homeowners fail to check whether a person has a valid contractors license or go with the unlicensed operator thinking they are saving money. “Unlicensed contractors put homeowners in jeopardy,” said CSLB Registrar Steve Sands. “If a contractor isn’t properly licensed and insured, the homeowner could pay more than expected to get the job done right or could be liable for accidental onsite injuries.”
Q: We are a General Building contractor and a question has been raised as to whether a contractor’s license is required for installing irrigation and drainage pipelines? All of this work is done on agricultural operations. Thank you in advance for your response.
A: B&P Code section 7049 allows for an agricultural exemption from requiring a contractor’s license for any “construction or operation incidental to the construction and repair of irrigation and drainage ditches of regularly constituted irrigation districts, reclamation districts, or to farming, dairying, agriculture, viticulture, horticulture, or stock or poultry raising, or clearing or other work upon the land in rural districts for fire prevention purposes”.
So if the work being done is strictly for agricultural operations, then it appears based on the above code section that a Contractor’s License would not be needed. However, if you would like an official determination I recommend contacting the CSLB.
Q: I had a judgment on my previous sole owner license but the judgment is over 8 years old. I recently applied for a new contractor's license in the name of my corporation. The application was denied based on the 8-year old judgment that is "unsatisfied". It was my understanding that judgments go away after a period of 7 years. Is that not true?
A: It is our understanding that the CSLB has no statute of limitations for a judgment on a license. The Superior Court of California does have a 10-year statute of limitations. After 10 years if the Superior Court does not renew the judgment, you can provide proof of non-renewal to the CSLB in order to have the judgment forgiven.
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While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write us at Capitol Services, Inc., 1225 8th St. Ste. 580, Sacramento, CA 95814. Research past columns at www.cutredtape.com.