Contractors: civil penalties.

Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Archuleta
Last action: 2025-10-01
Official status: Chaptered by Secretary of State. Chapter 233, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Contractors: Higher Penalties for Violations

This law increases the minimum civil penalties for contractors who break rules, especially those working without a license.

What This Bill Does

Increases the lowest fine for unlicensed work from $200 to at least $1,500 starting July 1, 2026.
Raises other fines to at least $500 or $1,500 depending on the violation.
Allows the Contractors State License Board to adjust these minimum fines for inflation every five years.
Increases the reserve fund limit from six months of annual board expenses to twelve months.

Who It Names or Affects

Contractors who break rules or work without a license
The Contractors State License Board

Terms To Know

Civil penalties: Fines that the government can charge for breaking laws.
Reserve fund: Money set aside by an organization to cover unexpected expenses or emergencies.

Limits and Unknowns

The exact amount of fines may change due to inflation adjustments every five years.
This law only applies if it and another bill (SB 291) are both passed, with this one being enacted last.

Bill History

2025-10-01 California Legislative Information
Chaptered by Secretary of State. Chapter 233, Statutes of 2025.
2025-10-01 California Legislative Information
Approved by the Governor.
2025-09-22 California Legislative Information
Enrolled and presented to the Governor at 11 a.m.
2025-09-11 California Legislative Information
Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2876.) Ordered to engrossing and enrolling.
2025-09-09 California Legislative Information
In Senate. Concurrence in Assembly amendments pending.
2025-09-09 California Legislative Information
Read third time. Passed. (Ayes 80. Noes 0. Page 3079.) Ordered to the Senate.
2025-09-04 California Legislative Information
Ordered to third reading.
2025-09-04 California Legislative Information
Read third time and amended.
2025-09-02 California Legislative Information
Read second time. Ordered to third reading.
2025-08-29 California Legislative Information
From committee: Do pass. (Ayes 15. Noes 0.) (August 29).
2025-07-16 California Legislative Information
July 16 set for first hearing. Placed on APPR. suspense file.
2025-07-02 California Legislative Information
Read second time and amended. Re-referred to Com. on APPR.
2025-07-01 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 17. Noes 0.) (July 1).
2025-06-17 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & P.
2025-06-09 California Legislative Information
Referred to Com. on B. & P.
2025-06-04 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-06-03 California Legislative Information
Read third time. Passed. (Ayes 39. Noes 0. Page 1471.) Ordered to the Assembly.
2025-05-06 California Legislative Information
Read second time. Ordered to third reading.
2025-05-05 California Legislative Information
From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
2025-04-25 California Legislative Information
Set for hearing May 5.
2025-04-23 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 837.) (April 22). Re-referred to Com. on APPR.
2025-04-07 California Legislative Information
From committee: Do pass and re-refer to Com. on JUD. (Ayes 10. Noes 0. Page 680.) (April 7). Re-referred to Com. on JUD.
2025-04-04 California Legislative Information
Set for hearing April 22 in JUD. pending receipt.
2025-04-01 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. P. & E.D.
2025-03-18 California Legislative Information
Set for hearing April 7.
2025-03-12 California Legislative Information
Referred to Coms. on B. P. & E.D. and JUD.
2025-02-24 California Legislative Information
Read first time.
2025-02-24 California Legislative Information
From printer. May be acted upon on or after March 24.
2025-02-21 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 779, Archuleta.
Contractors: civil penalties.
Existing law, the Contractors State License Law, provides for the licensure and regulation of contractors by the Contractors State License Board in the Department of Consumer Affairs. Under existing law, willful or deliberate disregard by a licensed contractor of various state building, labor, and safety laws constitutes a cause for disciplinary action by the board. Existing law provides for related disciplinary proceedings and requires the board to promulgate regulations covering the assessment of civil penalties under those disciplinary provisions, as prescribed. Existing law authorizes a civil penalty not less than $200 and not to exceed $15,000 for certain violations relating to unlicensed persons, as specified. Existing law authorizes a civil penalty not to exceed $8,000 or $30,000 for
other violations of the Contractors State License Law, as provided.
This bill, commencing July 1, 2026, would increase the minimum civil penalties for violations related to unlicensed persons to at least $1,500 and would impose minimum civil penalties of at least $500 or $1,500 for other specified violations, as provided. The bill would also authorize the Contractors State License Board to adjust the amounts of these minimum civil penalties for inflation every 5 years, as provided.
Existing law authorizes the board to set specified fees according to a prescribed schedule. Existing law, notwithstanding this fee schedule, authorizes the board to set fees to maintain the amount of the reserve fund at a level not to exceed approximately 6 months of annual authorized board expenditures.
This bill would increase the above-described limit on the reserve fund to a level not to exceed
approximately 12 months of annual authorized board expenditures.
This bill would incorporate additional changes to Section 7099.2 of the Business and Professions Code proposed by SB 291 to be operative only if this bill and SB 291 are enacted and this bill is enacted last.

Current Bill Text

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