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

Plain English Breakdown

The bill text does not explicitly mention audits by the California Department of Tax and Fee Administration, only that it can prescribe regulations for enforcement.

Contractor Licenses and Tax Liabilities

This bill updates California's Contractor State License Law to include references to outstanding tax liabilities assessed by the California Department of Tax and Fee Administration, allowing for license suspension or refusal if these liabilities are not resolved.

What This Bill Does

• Updates the law to allow the registrar to suspend or refuse licenses if a contractor has unpaid taxes or fees from the California Department of Tax and Fee Administration.
• Requires written installment payment agreements between contractors and the department for outstanding tax liabilities.
• Gives the department authority to request license suspensions or refusals unless an agreement is in place.

Who It Names or Affects

• Contractors who have outstanding tax liabilities with the California Department of Tax and Fee Administration.
• The Contractors State License Board and its registrar.
• The Franchise Tax Board and the California Department of Tax and Fee Administration.

Terms To Know

Contractor State License Law

A law that sets rules for licensing and regulating contractors in California.

Registrar of Contractors

The executive officer who manages the licensing process for contractors in California.

Limits and Unknowns

• It is unclear how this bill will be enforced or what specific penalties may apply.
• The exact details of the regulations that the department can prescribe are not specified and will need to be determined later.

Official Summary Text

SB 1165, as amended, Caballero.
Contractor licenses: outstanding liabilities assessed by the California Department of Tax and Fee Administration.
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 contractor’s 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.

Current Bill Text

Download Bill PDF