7065.  Under rules and regulations adopted by the board and approved
by the director, the registrar shall investigate, classify, and
qualify applicants for contractors' licenses by written examination.
This examination shall include questions designed to show that the
applicant has the necessary degree of knowledge required by Section
7068 and shall include pertinent questions relating to the laws of
this state, and the contracting business and trade.  Contractors'
licenses are to be issued to individual owners, copartnerships, and
corporations.  An individual owner may qualify by examination for a
contractor's license upon the appearance of the owner or a qualifying
individual appearing as a responsible managing employee on behalf of
the owner.  A copartnership may qualify by examination for a
contractor's license upon the appearance of a copartner or a
qualifying individual appearing as a responsible managing employee.
A corporation may qualify by examination for a contractor's license
upon the appearance of a qualifying individual appearing either as a
responsible managing officer or a responsible managing employee.   No
examination shall be required of a qualifying individual if, within
the five-year period immediately preceding the application for
licensure, the qualifying individual has either personally passed the
written examination for the same classification being applied for,
or has served as the qualifying individual for a licensee whose
license was in good standing at any time during the five-year period
immediately preceding the application for licensure and in the same
classification being applied for.



7065.01.  On or before May 15, 1986, the Contractors' State License
Board shall develop a written test for the certification of
contractors engaged in asbestos-related work.  The test shall be
developed according to professionally accepted psychometric
principles for licensing examinations, and with the assistance of
subject matter experts provided by the Division of Occupational
Safety and Health, the State Department of Health Services, and
subject matter experts selected from the insurance industry,
registered professional engineers, asbestos workers in California,
and from licensed contractors engaged in asbestos-related work.



7065.05.  (a) The board shall periodically review and, if needed,
revise the contents of qualifying examinations to insure that the
examination questions are timely and relevant to the business of
contracting.  The board shall, in addition, construct and conduct
examinations in such a manner as to preclude the possibility of any
applicant having prior knowledge of any specific examination
question.
   (b) The board shall establish a priority list and schedule for the
completion of an occupational analysis of its current examinations.
The board shall complete this analysis with respect to those
examinations having the highest and moderately high need for revision
by July 1, 2001, and complete this analysis with respect to all
remaining examinations for revision by July 1, 2002.



7065.1.  Notwithstanding Section 7065, the registrar may waive the
examination for a contractor's license under any of the following
circumstances:
   (a) The qualifying individual has, for five of the seven years
immediately preceding the application for licensure, been listed on
the official records of the board as a member of the personnel of any
licensee who held a license, which was active and in good standing,
in the same classification  being applied for, and who during the
period listed on the license has been actively engaged in a licensee'
s construction activities in the same classification within which the
applicant applies for a license.
   (b) The qualifying individual is an immediate member of the family
of a licensee whose individual license was active and in good
standing for five of the seven years immediately preceding the
application for licensure, and the qualifying individual is able to
show all of the following:
   (1) The qualifying individual has been actively engaged in the
licensee's business for five of the seven years immediately preceding
the application for licensure.
   (2) The license is required to continue the existing family
business in the event of the absence or death of the licensee.
   (3) An application is made for a new license in the same
classifications in which the licensee is or was licensed.
   (c) The qualifying individual is an employee of a corporation
seeking to replace its former qualifying individual and has been
employed by that corporation under the following conditions:
   (1) For five of the seven years immediately preceding the
application for licensure, the qualifying individual has been
continually employed by the corporation in a supervisory capacity in
the same classifications being applied for.
   (2) For five of the seven years immediately preceding the
application for licensure, the corporation has held an active license
in good standing in the same classifications being applied for.
   The corporation has not requested a waiver under this subdivision
within the past five years.
   For purposes of this section, employees of a corporation shall
include, but not be limited to, the officers of a corporation.



7065.2.  Notwithstanding Section 7065, the registrar may waive the
examination for a contractor's license if the applicant has
previously held a valid contractor's license in this state and has
been acting in the capacity of a contractor for the United States
government in a position exempt from licensure under this chapter.




7065.3.  Notwithstanding Section 7065, upon a conclusive showing by
a licensee that he or she possesses experience satisfactory to the
registrar in the classification applied for, an additional
classification may be added, without further examination, under all
of the following conditions:
   (a) For five of the seven years immediately preceding the
application, the qualifying individual of the licensee has been
listed as a member of the personnel of any licensee whose license was
  active and in good standing, and who during the period listed on a
license was actively engaged in the licensee's construction
activities.
   (b) The qualifying individual for the applicant has had within the
last 10 years immediately preceding the filing of the application,
not less than four years experience as a journeyman, foreman,
supervising employee or contractor in the classification within which
the licensee intends to engage in the additional classification as a
contractor.
   (c) The application is, as determined by the registrar, for a
classification which is closely related to the classification or
classifications in which the licensee is licensed, or the qualifying
individual is associated with a licensed general engineering
contractor or licensed general building contractor and is applying
for a classification which is a significant component of the licensed
contractor's construction business as determined by the registrar.
This section shall not apply to an applicant who is licensed solely
within the limited-specialty classifications.
   Pursuant to Section 7065, the registrar shall conduct a
comprehensive field investigation of no less than 3 percent of
applications filed under this section to ensure that the applicants
met the experience requirements of this section and shall make
public, at quarterly meetings of the Contractors' State License
Board, a listing of all applications approved under this section
during the previous 12 months, including, but not limited to, the
name of the applicant, license number, classification applied for,
and existing classifications.



7065.4.  The registrar may accept the qualifications of an applicant
who is licensed as a contractor in a similar classification in
another state if that state accepts the qualifications of a
contractor licensed in this state for purposes of licensure in that
other state, and if the board ascertains, on a case-by-case basis,
that the professional qualifications and conditions of good standing
for licensure and continued licensure are at least the same or
greater in that state as in California.  The registrar may waive the
trade examination for that applicant if the applicant provides
written certification from that other state in which  he or she is
licensed, that the applicant's license has been in good standing for
the previous five years.



7065.5.  No license shall be issued to a minor, nor to any
copartnership a member of which is a minor, nor to any corporation
any officer, director or responsible managing employee of which is a
minor, nor to any other kind of business organization in which a
minor holds a responsible official position, unless such minor shall
first have had a guardian appointed by a court of competent
jurisdiction.



7066.  To obtain an original license, an applicant shall submit to
the registrar an application in writing containing  the statement
that the applicant desires the issuance of a license under the terms
of this chapter.
   The application shall be made on a form prescribed by the
registrar in accordance with the rules and regulations adopted by the
board and shall be accompanied by the fee fixed by this chapter.




7066.5.  Any person may obtain blank license application, renewal,
or reinstatement forms from the Department of Consumer Affairs, or
may cause to be printed forms used by or approved by the Registrar of
Contractors.


7067.5.  Every applicant for an original license, or for the
reactivation of an inactive license, or for the reissuance or
reinstatement of a revoked license shall possess and every such
applicant, other than one applying under Section 7029 unless required
by the registrar, shall evidence financial solvency.  The registrar
shall deny the application of any applicant who fails to comply with
this section.  For purposes of this section financial solvency shall
mean that the applicant's operating capital shall exceed two thousand
five hundred dollars ($2500).
   The applicant shall provide answers to questions contained in a
standard form of questionnaire as required by the registrar relative
to his financial ability and condition and signed by the applicant
under penalty of perjury.
   In any case in which further financial information would assist
the registrar in an investigation, the registrar may obtain such
information or may require any licensee or applicant under
investigation pursuant to this chapter to provide such additional
financial information as the registrar may deem necessary.
   The financial information required by the registrar shall be
confidential and not a public record, but, where relevant, shall be
admissible as evidence in any administrative hearing or judicial
action or proceeding.
   The registrar may destroy any financial information which has been
on file for a period of at least three years.



7067.6.  Every application form for an original license, for renewal
thereof, for reinstatement or for reissuance, including both active
and inactive licenses, shall be signed by both the applicant and by
the person qualifying on behalf of an individual or firm as referred
to in Section 7068.1.


7068.  (a) The board shall require an applicant to show such degree
of knowledge and experience in the classification applied for, and
such general knowledge of the building, safety, health, and lien laws
of the state and of the administrative principles of the contracting
business as the board deems necessary for the safety and protection
of the public.
   (b) An applicant shall qualify in regard to his or her experience
and knowledge in one of the following ways:
   (1) If an individual, he or she shall qualify by personal
appearance or by the appearance of his or her responsible managing
employee who is qualified for the same license classification as the
classification being applied for.
   (2) If a copartnership or a limited partnership, it shall qualify
by the appearance of a general partner or by the appearance of a
responsible managing employee who is qualified for the same license
classification as the classification being applied for.
   (3) If a corporation, or any other combination or organization, it
shall qualify by the appearance of a responsible managing officer or
responsible managing employee who is qualified for the same license
classification as the classification being applied for.
   (c) An applicant who has been convicted of a violation of Section
7028 may not apply for a license for a one-year period from the date
of conviction. Upon submittal of an application the applicant shall
be subject to Section 7071.6.
   (d) A responsible managing employee for the purpose of this
chapter shall mean an individual who is a bona fide employee of the
applicant and is actively engaged in the classification of work for
which that responsible managing employee is the qualifying person in
behalf of the applicant.
   (e) The board shall, in addition, require an applicant who
qualifies by means of a responsible managing employee under either
paragraph (1) or (2) of subdivision (b) to show his or her general
knowledge of the building, safety, health, and lien laws of the state
and of the administrative principles of the contracting business as
the board deems necessary for the safety and protection of the
public.
   (f) Except in accordance with Section 7068.1, no person qualifying
on behalf of an individual or firm under paragraph (1), (2), or (3)
of subdivision (b) shall hold any other active contractor's license
while acting in the capacity of a qualifying individual pursuant to
this section.
   (g) At the time of application for renewal of a license, the
responsible managing individual shall file a statement with the
registrar, on a form prescribed by the registrar, verifying his or
her capacity as a responsible managing individual to the licensee.
   (h) Statements made by or on behalf of an applicant as to the
applicant's experience in the classification applied for shall be
verified by a qualified and responsible person.  In addition, the
registrar shall, as specified by board regulation, randomly review a
percentage of such statements for their veracity.
   (i) The registrar shall review experience gained by applicants
from other states to determine whether all of that experience was
gained in a lawful manner in that state.



7068.1.  The person qualifying on behalf of an individual or firm
under paragraph (1), (2), or (3) of subdivision (b) of Section 7068
shall be responsible for exercising that direct supervision and
control of his or her employer's or principal's construction
operations as is necessary to secure full compliance with the
provisions of this chapter and the rules and regulations of the board
relating to the construction operations.  This person shall not act
in the capacity of the qualifying person for an additional individual
or firm unless one of the following conditions exists:
   (a) There is a common ownership of at least 20 percent of the
equity of each individual or firm for which the person acts in a
qualifying capacity.
   (b) The additional firm is a subsidiary of or a joint venture with
the first.  "Subsidiary," as used in this subdivision, means any
firm at least 20 percent of the equity of which is owned by the other
firm.
   (c) With respect to a firm under paragraph (2) or (3) of
subdivision (b) of Section 7068, the majority of the partners or
officers are the same.
   (d) Notwithstanding subdivisions (a), (b), and (c), a qualifying
individual may act as the qualifier for no more than three firms in
any one-year period.  Any qualifier, on January 1, 1992, who is
acting as the qualifier for more than three firms shall comply with
this section by January 1, 1993.
   (e) Failure to comply with the requirement set forth in
subdivision (d) shall result in the disassociation of the qualifying
individual and automatic suspension of the licensee's contractor's
license effective January 1, 1993.
   "Firm," as used in this section, means a copartnership, a limited
partnership, a corporation, or any other combination or organization
described in Section 7068.
   "Person," as used in this section, is limited to persons natural,
notwithstanding the definition of "person" in Section 7025 of this
chapter.
   The board shall require every applicant or licensee qualifying by
the appearance of a qualifying individual to submit detailed
information on the qualifying individual's duties and
responsibilities for supervision and control of the applicant's
construction operations.


7068.2.  If the responsible managing officer or responsible managing
employee disassociates from the licensed entity, the licensee, or
the qualifier shall notify the registrar in writing, and the licensee
shall replace the qualifier, within 90 days from the date of
disassociation.
   To replace a responsible managing officer or responsible managing
employee, the licensee shall file an application as prescribed by the
registrar, accompanied by the fee fixed by this chapter, designating
an individual to qualify as required by this chapter.
   Upon failure to replace the qualifier within 90 days of the
disassociation the license shall be automatically suspended or the
classification removed at the end of the 90 days.
   The registrar may review and accept the petition of a licensee who
disputes the date of disassociation or who has failed to notify and
replace the qualifier within the prescribed time, upon a showing of
good cause by the contractor.  This petition shall be received within
90 days from the date of the board's notice  that the license will
be suspended if the qualifier is not replaced.  The registrar may
grant only one 90-day extension to replace the qualifier.
   Upon failure of the licensee or the qualifier to notify the
registrar of the disassociation within 90 days from the date of
disassociation, the license shall be automatically suspended or the
classification removed and the qualifier removed from the license
effective the date the written notification is received at the board'
s headquarters office.
   The person qualifying on behalf of an individual or firm under
subdivision (a), (b), or (c) of Section 7068 shall be responsible for
the licensee's construction operations until the board receives the
written notification of disassociation.
   Failure of the licensee or the qualifier to notify the registrar
of the qualifier's disassociation within 90 days of the
disassociation is grounds for disciplinary action.



7068.5.  It is a misdemeanor for any person other than the examinee
named in the application to take the qualifying examination on behalf
of an applicant for a contractor's license.



7068.7.  Any person who obtains and provides for another the
qualifying examination, or any part thereof, when not authorized to
do so, is guilty of a misdemeanor.



7069.  An applicant, and each officer, director, partner, associate
and responsible managing employee thereof, shall not have committed
acts or crimes which are grounds for denial of licensure under
Section 480.


7070.  An applicant shall show that he or she has never been denied
a license or had a license revoked for reasons that would preclude
the granting of the license applied for.  Where the board has denied
an application for license under this chapter or Chapter 2
(commencing with Section 480) of Division 1.5, it shall, in its
decision, or in its notice under subdivision (b) of Section 485,
inform the applicant of the earliest date that the applicant may
reapply for a license, which shall be one year from the effective
date of the decision or service of notice under subdivision (b) of
Section 485, unless the board prescribes an earlier date.




7071.  No license shall be issued to a corporation, copartnership,
or other combination or organization if any responsible officer or
director of such corporation, or other combination or organization,
or any member of such copartnership does not meet the qualifications
required of an applicant other than those qualifications relating to
knowledge and experience.



7071.3.  Notwithstanding any other provision of this code, the
holder of a current valid license under this chapter who has entered
or enters the armed forces of the United States may designate a
responsible managing person or persons to act for him while in the
armed forces and until one year after his discharge therefrom, after
which time the authority to so act for the licensee shall terminate.
The renewal fee shall be paid for any such licensee so designating
others to act for him.
   Any license shall remain in full force and effect for 30 days
after the entrance of the licensee into the armed forces, but he
shall prior to the expiration of such 30-day period provide the
registrar with the name or names of the persons so designated to
conduct his business. The registrar may qualify such persons in any
manner he may adopt. Persons so designated shall not have committed
acts or crimes constituting grounds for denial of licensure under
Section 480.
   Persons so designated committing any of the acts or crimes
constituting grounds for denial of licensure under Section 480 shall
be removed from the business of such licensee after a hearing as
provided in this chapter.


7071.5.  The contractor's bond required by this article shall be
executed by an admitted surety in favor of the State of California,
in a form acceptable to the registrar and filed with the registrar by
the licensee or applicant.  The contractor's bond shall be for the
benefit of the following:
   (a) Any homeowner contracting for home improvement upon the
homeowner's personal family residence damaged as a result of a
violation of this chapter by the licensee.
   (b) Any person damaged as a result of a willful and deliberate
violation of this chapter by the licensee, or by the fraud of the
licensee in the execution or performance of a construction contract.

   (c) Any employee of the licensee damaged by the licensee's failure
to pay wages.
   (d) Any person or entity, including an express trust fund
described in Section 3111 of the Civil Code, to whom a portion of the
compensation of an employee of a licensee is paid by agreement with
that employee or the collective bargaining agent of that employee,
damaged as the result of the licensee's failure to pay fringe
benefits for its employees, including, but not limited to, employer
payments described in Section 1773.1 of the Labor Code and
regulations thereunder (without regard to whether the work was
performed on a private or public work).  Damage to an express trust
fund is limited to actual employer payments required to be made on
behalf of employees of the licensee, as part of the overall
compensation of those employees, which the licensee fails to pay.




7071.6.  (a) Except as provided in Section 7071.8 and subdivision
(b), the board shall require as a condition precedent to the
issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee file or have
on file a contractor's bond in the sum of seven thousand five
hundred dollars ($7,500).
   (b) Notwithstanding subdivision (a), the board shall require as a
condition precedent to the issuance, reinstatement, reactivation,
renewal, or continued maintenance of a license for the license
classification of swimming pool contractor, that the applicant or
licensee file or have on file a contractor's bond in the sum of ten
thousand dollars ($10,000).
   (c) No bond shall be required of a holder of a license that has
been inactivated on the official records of the board during the
period the license is inactive.
   (d) Notwithstanding any other provision of law, as a condition
precedent to licensure, the board may require an applicant to post a
contractor's bond in twice the amount required pursuant to
subdivision (a) until the time that the license is renewed, under the
following conditions:
   (1) The applicant has either been convicted of a violation of
Section 7028 or has been cited pursuant to Section 7028.7.
   (2) If the applicant has been cited pursuant to Section 7028.7,
the citation has been reduced to a final order of the registrar.
   (3) The violation of Section 7028, or the basis for the citation
issued pursuant to Section 7028.7, constituted a substantial injury
to the public.


7071.7.  (a) Except as provided in subdivision (b), the registrar
shall accept a bond required by Section 7071.6, 7071.8, or 7071.9 as
of the effective date shown on the bond, if the bond is received by
the registrar within 90 days after that date,  and shall reinstate
the license to which the bond pertains, if otherwise eligible,
retroactive to the effective date of the bond.
   (b) Notwithstanding subdivision (a), the registrar shall accept a
bond as of the effective date shown on the bond, even if the bond is
not received by the registrar within 90 days after that date, upon a
showing by the licensee, on a form acceptable to the registrar, that
the failure to have a bond on file was due to circumstances beyond
the control of the licensee.  The registrar shall reinstate the
license to which the bond pertains, if otherwise eligible,
retroactive to the effective date of the bond.



7071.8.  (a) This section applies to an application for a license,
for renewal or restoration of a license, an application to change
officers of a corporation, or for continued valid use of a license
which has been disciplined, whether or not the disciplinary action
has been stayed, made by any of the following persons or firms:
   (1) Any person whose license has been suspended or revoked as a
result of disciplinary action, or any person who was a qualifying
individual for a licensee at any time during which cause for
disciplinary action occurred resulting in suspension or revocation of
the licensee's license, whether or not the qualifying individual had
knowledge or participated in the prohibited act or omission.
   (2) Any person who was an officer, director, member, or partner of
a licensee at any time during which cause for disciplinary action
occurred resulting in suspension or revocation of the licensee's
license and who had knowledge of or participated in the act or
omission which was the cause for the disciplinary action.
   (3) Any partnership, corporation, firm, or association of which
any existing or new officer, director, member, partner, or qualifying
person has had a license suspended or revoked as a result of
disciplinary action.
   (4) Any partnership, corporation, firm, or association of which
any officer, director, member, partner, or qualifying person was a
member, officer, director, or partner of a licensee at any time
during which cause for disciplinary action occurred resulting in
suspension or revocation of the license, and who had knowledge of or
participated in the act or omission which was the cause for the
disciplinary action.
   (b) The board shall require as a condition precedent to the
issuance, reissuance, renewal, or restoration of a license to the
applicant, or to the approval of an application to change officers of
a corporation, or removal of suspension, or to the continued valid
use of a license which has been suspended or revoked, but which
suspension or revocation has been stayed, that the applicant or
licensee file or have on file a contractor's bond in a sum to be
fixed by the registrar based upon the seriousness of the violation,
but which sum shall not be less than fifteen thousand dollars
($15,000) nor more than 10 times that amount required by Section
7071.6.
   (c) The bond is in addition to, may not be combined with, and does
not replace any other type of bond required by this chapter.  The
bond shall remain on file with the registrar for a period of at least
two years and for such additional time as the registrar may
determine. The bond period shall run only while the license is
current, active, and in good standing, and shall be extended until
such time as the license has been current, active, and in good
standing for the required period.  Each applicant or licensee shall
be required to file only one disciplinary contractor's bond of the
type described in this section for each application or license
subject to this bond requirement.



7071.9.  (a) If the qualifying individual, as referred to in
Sections 7068 and 7068.1, is not either the proprietor, a general
partner, or joint licensee, he or she shall file or have on file a
qualifying individual's bond as provided in Section 7071.10 in the
sum of seven thousand five hundred dollars  ($7,500).  This bond is
in addition to, and may not be combined with, any contractor's bond
required by Sections 7071.5 to 7071.8, inclusive, and is required for
the issuance, reinstatement, reactivation, or continued valid use of
a license.
   (b) The responsible managing officer of a corporation shall not be
required to file or have on file a qualifying individual's bond, if
he or she owns 10 percent or more of the voting stock of the
corporation and certifies to that fact on a form prescribed by the
registrar.



7071.10.  (a) The qualifying individual's bond required by this
article shall be executed by an admitted surety insurer in favor of
the State of California, in a form acceptable to the registrar and
filed with the registrar by the qualifying individual.  The
qualifying individual's bond shall be for the benefit of the
following persons:
   (1) Any homeowner contracting for home improvement upon the
homeowner's personal family residence damaged as a result of a
violation of this chapter by the licensee.
   (2) Any person damaged as a result of a willful and deliberate
violation of this chapter by the licensee, or by the fraud of the
licensee in the execution or performance of a construction contract.

   (3) Any employee of the licensee damaged by the licensee's failure
to pay wages.
   (4) Any person or entity, including an express trust fund
described in Section 3111 of the Civil Code, to whom a portion of the
compensation of an employee of a licensee is paid by agreement with
that employee or the collective bargaining agent of that employee,
that is damaged as the result of the licensee's failure to pay fringe
benefits for its employees including, but not limited to, employer
payments described in Section 1773.1 of the Labor Code and
regulations adopted thereunder (without regard to whether the work
was performed on a public or private work).  Damage to an express
trust fund is limited to employer payments required to be made on
behalf of employees of the licensee, as part of the overall
compensation of those employees, which the licensee fails to pay.
   (b) The qualifying individual's bond shall not be required in
addition to the contractor's bond when the qualifying individual is
himself or herself the proprietor under subdivision (a) or a general
partner under subdivision (b) of Section 7068.


7071.11.  (a) A copy of the complaint in a civil action commenced by
a person claiming against a bond required by this article shall be
served by registered or certified mail upon the registrar by the
clerk of the court at the time the action is commenced and the
registrar shall maintain a record, available for public inspection,
of all actions so commenced.  The aggregate liability of a surety on
a claim for wages and fringe benefits brought against any bond
required by this article, other than a bond required by Section
7071.8, shall not exceed the sum of four thousand dollars ($4,000).
If any bond which may be required is insufficient to pay all claims
in full, the sum of the bond shall be distributed to all claimants in
proportion to the amount of their respective claims.  Any action,
other than an action to recover wages or fringe benefits, against a
contractor's bond or a bond of a qualifying individual filed by an
active licensee shall be brought within two years after the
expiration of the license period during which the act or omission
occurred, or within two years of the date the license of the active
licensee was inactivated, canceled, or revoked by the board,
whichever first occurs.  Any action, other than an action to recover
wages or fringe benefits, against a disciplinary bond filed by an
active licensee pursuant to Section 7071.8 shall be brought within
two years after the expiration of the license period during which the
act or omission occurred, or within two years of the date the
license of the active licensee was inactivated, canceled, or revoked
by the board, or within two years after the last date for which a
disciplinary bond filed pursuant to Section 7071.8 was required,
whichever date is first.  A claim to recover wages or fringe benefits
shall be brought within six months from the date that the wage or
fringe benefit delinquencies were discovered, but in no event shall a
civil action thereon be brought later than two years from the date
the wage or fringe benefit contributions were due.
   (b) When the surety makes payment on any claim against a bond
required by this article, whether or not payment is made through a
court action or otherwise, the surety shall, within 30 days of the
payment, notify the registrar.  The notice shall contain, on a form
prescribed by the registrar, the name and license number of the
contractor, the surety bond number, the amount of payment, the
statutory basis upon which the claim is made, and the names of the
person or persons to whom payments are made.
   (c) Any judgment or admitted claim against, or good faith payment
from, a bond required by this article shall constitute grounds for
disciplinary action against the licensee, except in those cases of
good faith payment where the licensee has, in writing, timely
instructed the surety not to make payment from the bond on his or her
account, upon the specific grounds that (1) the claim is opposed by
the licensee, and (2) the licensee has, in writing, previously
directed to the surety a specific and reasonable basis for his or her
opposition to payment.  The license may not be reissued or
reinstated while any judgment or admitted claim in excess of the
amount of the bond remains unsatisfied.  Further, the license may not
be reissued or reinstated while any surety remains unreimbursed for
loss and expense sustained on any bond issued for the licensee or for
any entity of which any officer, director, member, partner, or
qualifying person was an officer, director, member, partner, or
qualifying person of the licensee while the licensee was subject to
disciplinary action under this section.  The board shall require the
licensee to file a new bond in an amount as required pursuant to
Section 7071.8.
   (d) Legal fees may not be charged against the bond by the board.
   (e) In any case in which a claim is filed against a deposit given
in lieu of a bond by any employee or by an employee organization on
behalf of an employee, concerning wages or fringe benefits based upon
the employee's employment, claims for the nonpayment shall be filed
with the Labor Commissioner.  The Labor Commissioner shall, pursuant
to the authority vested by Section 96.5 of the Labor Code, conduct
hearings to determine whether or not the wages or fringe benefits
should be paid to the complainant.  Upon a finding by the
commissioner that the wages or fringe benefits should be paid to the
complainant, the commissioner shall notify the registrar of the
findings.  The registrar shall not make payment from the deposit on
the basis of findings by the commissioner for a period of 10 days
following determination of the findings.  If, within the period, the
complainant or the contractor files written notice with the registrar
and the commissioner of an intention to seek judicial review of the
findings pursuant to Section 11523 of the Government Code, the
registrar shall not make payment, if an action is actually filed,
except as determined by the court.  If, thereafter, no action is
filed within 60 days following determination of findings by the
commissioner, the registrar shall make payment from the deposit to
the complainant.
   (f) Any action, other than an action to recover wages or fringe
benefits, against a deposit given in lieu of a contractor's bond or
bond of a qualifying individual filed by an active licensee shall be
brought within three years after the expiration of the license period
during which the act or omission occurred, or within three years
after the date the license was inactivated, canceled, or revoked by
the board, whichever first occurs.  Any action, other than an action
to recover wages or fringe benefits, against a deposit given in lieu
of a disciplinary bond filed by an active licensee pursuant to
Section 7071.8 shall be brought within three years after the
expiration of the license period during which the act or omission
occurred, or within three years of the date the license of the active
licensee was inactivated, canceled, or revoked by the board, or
within three years after the last date for which a deposit given in
lieu of a disciplinary bond filed pursuant to Section 7071.8 was
required, whichever date is first.  If the board is notified of a
complaint relative to a claim against the deposit, the deposit shall
not be released until the complaint has been adjudicated.



7071.12.  Instead of the bond provided by this article a deposit may
be given pursuant to Article 7 (commencing with Section 995.710) of
Chapter 2 of Title 14 of Part 2 of the Code of Civil Procedure.



7071.13.  Any reference by a contractor in his advertising,
soliciting, or other presentments to the public to any bond required
to be filed pursuant to this chapter is a ground for the suspension
of the license of such contractor.


7071.14.  No licensee or applicant for a license under this chapter
shall be denied a contractor's license bond solely because of his
race, religious creed, color, national origin, ancestry, or sex.
Whoever denies a contractor's license bond solely on the grounds
specified herein is liable for each and every such offense for the
actual damages, and two hundred fifty dollars ($250) in addition
thereto, suffered by the licensee or applicant for a license.



7071.15.  If a licensee fails to maintain a sufficient bond required
by this article, the license is subject to suspension or revocation
pursuant to Section 996.020 of the Code of Civil Procedure.



7071.17.  (a) Notwithstanding any other provision of law, the board
shall require, as a condition precedent to accepting an application
for licensure, renewal, reinstatement, or to change officers or other
personnel of record, that an applicant, previously found to have
failed or refused to pay a contractor, subcontractor, consumer,
materials supplier, or employee based on an entered and unsatisfied
final judgment from a court of law, file or have on file with the
board a judgment bond sufficient to guarantee payment of an amount
equal to the unsatisfied final judgment or judgments.  The applicant
shall have 90 days from the date of notification by the board to file
the bond or the application shall become void and the applicant
shall reapply for issuance, reinstatement, or reactivation of a
license.  The board may not issue, reinstate, or reactivate a license
until the judgment bond is filed with the board.  The judgment bond
is in addition to the contractor's bond.  The bond shall be on file
for a minimum of one year, after which the bond may be removed by
submitting proof of satisfaction of all debts.  The applicant may
provide the board with a notarized copy of any accord, reached with
any individual holding an unsatisfied final judgment, to satisfy a
debt in lieu of filing the bond.  The board shall include on the
license application for issuance, reinstatement, or reactivation, a
statement, to be made under penalty of perjury, as to whether there
are any entered and unsatisfied judgments against the applicant on
behalf of contractors, subcontractors, consumers, materials
suppliers, or the applicant's employees.  Notwithstanding any other
provision of law, if it is found that the applicant falsified the
statement then the license will be retroactively suspended to the
date of issuance and the license will stay suspended until the
judgment bond, satisfaction of judgment, or notarized copy of an
accord reached with any individual holding an unsatisfied final
judgment is filed.
   (b) Notwithstanding any other provision of law, the licensee shall
notify the registrar in writing of any entered and unsatisfied
judgments within 90 days from the date of judgment.  If the licensee
fails to notify the registrar in writing within 90 days, the license
shall be automatically suspended on the date that the registrar is
informed, or is made aware of the unsatisfied judgment.  The
suspension shall not be removed until proof of satisfaction of
judgment, or in lieu thereof, a notarized copy of an accord is
submitted to the registrar.  If the licensee notifies the registrar
in writing within 90 days of the date of judgment of any entered and
unsatisfied judgments, the board shall require as a condition to the
continual maintenance of the license that the licensee file or have
on file with the board a judgment bond sufficient to guarantee
payment of an amount equal to the unsatisfied judgment or judgments.
The licensee has 90 days from date of notification by the board to
file the bond or at the end of the 90 days the license shall be
automatically suspended. The licensee may provide the board with a
notarized copy of any accord, reached with any individual holding an
unsatisfied final judgment, to satisfy a debt in lieu of filing the
bond.
   (c) By operation of law, failure to maintain the bond or failure
to abide by the accord shall result in the automatic suspension of
any license to which this section applies.
   (d) A license that is suspended for failure to file the bond,
maintain the bond, or abide by the accord, can only be reinstated
when proof of satisfaction of all debts is made, or when a notarized
copy of an accord, reached with any individual holding an unsatisfied
final judgment, has been filed.
   (e) This section applies only with respect to an unsatisfied
judgment that is substantially related to the construction activities
of a licensee licensed under this chapter, or to the qualifications,
functions, or duties of the license.
   (f) This section shall not apply to an applicant or licensee when
a bankruptcy proceeding has been filed.
   (g) Except as otherwise provided, the judgment bond shall remain
in full force in the amount posted until the entire debt is
satisfied.  If, at the time of renewal, the licensee submits proof of
partial satisfaction of the outstanding final judgment, the board
may authorize the judgment bond be reduced to the amount of the
unsatisfied portion of the outstanding judgment.  When the licensee
submits proof of satisfaction of all debts, the judgment bond
requirement may be removed.
   (h) The board shall take the actions required by this section upon
notification by any party having knowledge of the outstanding
judgment upon a showing of proof of the judgment.
   (i) For the purposes of this section, the term "judgment" includes
any final arbitration award.
   (j) The qualifying person and any member of the licensee or
personnel of the licensee named as a judgment debtor in an
unsatisfied final judgment from a court of law shall be automatically
prohibited from serving as an officer, director, associate, partner,
owner, qualifying individual, or other personnel of record of
another licensee.  This prohibition shall cause the license of any
other existing renewable licensed entity with any of the same
personnel of record as the judgment debtor licensee to be suspended
until the license of the judgment debtor is reinstated or until those
same personnel of record disassociate themselves from the renewable
licensed entity.
   (k) For purposes of this section, a cash deposit may be submitted
in lieu of the judgment bond.


7072.  Following receipt of the application fee and an application
furnishing complete information in the manner required by the
registrar, and after such examination and investigation as he may
require, the registrar, within 15 days after approval of the
application, shall notify the applicant that a license may be issued
to him on payment of the initial license fee provided in Article 8
(commencing at Section 7135), and, when the initial license fee is
paid, shall issue a license to him permitting him to engage in
business as a contractor under the terms of this chapter.



7072.5.  (a) Upon the issuance of a license, a plasticized pocket
card of a size, design, and content as may be determined by the
registrar shall be issued at no cost to each licensee, or to the
partners or officers or responsible managing officer of licensees
licensed as other than individuals, which card shall be evidence that
the licensee is duly licensed pursuant to this chapter.  All cards
issued shall be surrended upon the suspension, revocation, or denial
of renewal of the license, and shall be mailed or delivered to the
board within five days of the suspension, revocation, or denial.
   (b) When any person to whom a card is issued terminates his or her
position, office, or association with a licensee which is licensed
as other than an individual, that person shall surrender his or her
card to the licensee and within five days thereafter the card shall
be mailed or delivered by the licensee to the board for cancellation.

   (c) The Contractors' State License Board shall, prior to
production of the plasticized cards, develop a system for the
reporting and tracking of lost or stolen cards.  The cards shall be
issued to all licensees upon license renewal on and after July 1,
1989.



7073.  The registrar may deny any application where the applicant
has failed to comply with any rule or regulation adopted pursuant to
this chapter or where there are grounds for denial under Section 480.
  Procedures for denial of an application shall be conducted in
accordance with Section 485.



7074.  (a) Except as otherwise provided by this section, an
application for an original license, for an additional classification
or for a change of qualifier shall become void when:
   (1) The applicant or examinee for the applicant has failed to
appear for the scheduled qualifying examination and fails to request
and pay the fee for rescheduling within 90 days of notification of
failure to appear, or, after being rescheduled, has failed to appear
for a second examination.
   (2) The applicant or the examinee for the applicant has failed to
achieve a passing grade in the scheduled qualifying examination, and
fails to request and pay the fee for rescheduling within 90 days of
notification of failure to pass the examination.
   (3) The applicant or the examinee for the applicant has failed to
achieve a passing grade in the qualifying examination within 18
months after the application has been deemed acceptable by the board.

   (4) The applicant for an original license, after having been
notified to do so, fails to pay the initial license fee within 90
days from the date of the notice.
   (5) The applicant, after having been notified to do so, fails to
file within 90 days from the date of the notice any bond or cash
deposit or other documents that may be required for issuance or
granting pursuant to this chapter.
   (6) After filing, the applicant withdraws the application.
   (7) The applicant fails to return the application rejected by the
board for insufficiency or incompleteness within 90 days from the
date of original notice or rejection.
   (8) The application is denied after disciplinary proceedings
conducted in accordance with the provisions of this code.
   (b) The void date on an application may be extended up to 90 days
or one examination may be rescheduled without a fee upon documented
evidence by the applicant that the failure to complete the
application process or to appear for an examination was due to a
medical emergency or other circumstance beyond the control of the
applicant.
   (c) An application voided pursuant to the provisions of this
section shall remain in the possession of the registrar for the
period as he or she deems necessary and shall not be returned to the
applicant.  Any reapplication for a license shall be accompanied by
the fee fixed by this chapter.



7075.  The license shall be displayed in the licensee's main office
or chief place of business.  Satisfactory evidence of the possession
of a license and the current renewal thereof shall be provided by the
licensee upon demand.


7075.1.  (a) No license, regardless of type or classification, shall
be transferable to any other person or entity under any
circumstances.
   (b) A license number may be reissued after cancellation,
revocation, suspension, or expiration beyond the renewal period
specified in Section 7141, only under the following circumstances:
   (1) To an individual upon application.
   (2) To a partnership upon application if there is no change in the
partners or partnership structure.
   (3) To a corporation upon application if there is no change in the
status of the corporation as registered with the California
Secretary of State.
   (c) A license number may be reissued or reassigned to a different
entity only under the following conditions:
   (1) To a corporation when the parent corporation has merged or
created a subsidiary, the subsidiary has merged into the parent
corporation, or the corporation has changed its filing status with
the Secretary of State from a domestic corporation to a foreign
corporation or from a foreign corporation to a domestic corporation,
and the new entity is being formed to continue the business of the
formerly licensed corporation.
   (2) To an individual when the individual is an immediate family
member of a licensed individual who is deceased or absent and the
license is required to continue an existing family contracting
business.
   (3) To a corporation when created by immediate members of an
individual licensee's family to continue an existing deceased or
absent individual licensee's contracting business.
   (4) To a corporation when the corporation is formed by an
individual licensee and the individual licensee maintains ownership
directly or indirectly of shares evidencing more than 50 percent of
the voting power.
   For purposes of this section, an immediate family member of a
deceased or absent licensed individual is either a spouse, brother,
sister, son, daughter, stepson, stepdaughter, grandson,
granddaughter, son-in-law, or daughter-in-law.



7076.  (a) An individual license shall be canceled upon the death of
a person licensed as an individual.  An immediate member of the
family of the deceased licensee may request a continuance of the
license to complete projects in progress and undertake new work for a
reasonable amount of time to be determined by rules of the board.
The request for a continuance must be made in writing and received at
the board's headquarters office within 90 days after the death.
Approval of the continuance of an individual license may be
contingent upon meeting the bond requirements of Sections 7071.5 and
7071.6 within 90 days of notification by the board of that
requirement.  The immediate member of the family must apply for and
obtain his or her own license to continue contracting after the
continuance expires.
   (b) A partnership license shall be canceled upon the death of a
general partner.  The remaining partner or partners shall notify the
registrar in writing within 90 days of the death of a general
partner.  Failure to notify the registrar within 90 days of the death
is grounds for disciplinary action.
   The remaining general partner or partners may request a
continuance of the license to complete projects in progress and
undertake new work for a reasonable amount of time to be determined
by rules of the board.  The request for a continuance must be made in
writing and received at the board's headquarters office within 90
days after the death.  The remaining general partner or partners must
apply for and obtain a new license to continue contracting after the
continuance expires.
   (c) A partnership license shall be canceled upon the
disassociation of a general partner or upon the dissolution of the
partnership.  The disassociating partner or the remaining partner or
partners shall notify the registrar in writing within 90 days of the
disassociation of a general partner or dissolution of the
partnership.  Failure to notify the registrar of the disassociation
or dissolution within 90 days shall cause the license to be canceled
effective the date the written notification is received at the board'
s headquarters office.  Failure to notify the registrar within 90
days of the disassociation or dissolution is grounds for disciplinary
action.  The remaining general partner or partners may request a
continuance of the license to complete projects contracted for or in
progress prior to the date of disassociation or dissolution for a
reasonable length of time to be determined by rules of the board.
The request for a continuance must be made in writing and received at
the board's headquarters office within 90 days after the
disassociation or dissolution.  The remaining general partner or
partners must apply for and obtain a new license to undertake new
work and to continue contracting after the continuance expires.
   (d) The general partner or partners shall notify the registrar in
writing within 90 days of the death of a limited partner.  Failure to
notify the registrar within 90 days of the death is grounds for
disciplinary action.
   The death of a limited partner will not affect the partnership
license unless the partnership license has only one limited partner.
In this case, the license will be canceled upon the death of the
limited partner unless a new limited partner is added to the license
within 90 days of the death.
   If the license is canceled, the remaining general partner or
partners may request a continuance of the license to complete
projects in progress and to undertake new work for a reasonable
amount of time to be determined by rules of the board.  The request
for a continuance must be made in writing and received at the board's
headquarters office within 90 days after the death.  The remaining
general partner or partners must apply for and obtain a new license
to continue contracting after the continuance expires.
   (e) The general partner or partners shall notify the registrar in
writing within 90 days of the disassociation of a limited partner.
Failure to notify the registrar of the disassociation, within 90
days, shall cause the disassociation to be effective the date the
written notification is received at the board's headquarters office.
Failure to notify the registrar within 90 days of the disassociation
is grounds for disciplinary action.
   The disassociation of a limited partner will not affect the
partnership license unless the partnership license has only one
limited partner.  In this case, the license will be canceled upon the
disassociation of the limited partner unless a new limited partner
is added to the license within 90 days of the disassociation.  If the
license is canceled, the remaining general partner or partners may
request a continuance of the license to complete projects contracted
for or in progress prior to the date of disassociation for a
reasonable amount of time to be determined by rules of the board.
The request for a continuance must be made in writing and received at
the board's headquarters office within 90 days after the death.  The
remaining general partner or partners must apply for and obtain a
new license to undertake new work and to continue contracting after
the continuance expires.
   (f) A joint venture license shall be canceled upon the
cancellation, revocation, or disassociation of any of its entity
licenses or upon the dissolution of the joint venture.  The registrar
shall be notified in writing within 90 days of the disassociation of
a joint venture entity or dissolution of the joint venture.  Failure
to notify the registrar of the disassociation or dissolution within
90 days shall cause the license to be canceled effective the date the
written notification is received at the board's headquarters office.
  Failure to notify the registrar within 90 days of the
disassociation or dissolution is grounds for disciplinary action.
   Any remaining entity or entities may request a continuance of the
license to complete projects contracted for or in progress prior to
the date of disassociation or dissolution for a reasonable amount of
time to be determined by rules of the board.  The request for a
continuance must be made in writing and received at the board's
headquarters office within 90 days of the disassociation or
dissolution.  The remaining entity or entities must apply for and
obtain a new license to undertake new work and to continue
contracting after the continuance expires.
   (g) Any individual, partnership, or joint venture license
continued in accordance with this section is subject to all other
provisions of this chapter.
   (h) A corporation license shall be canceled upon the corporation's
dissolution, merger, or surrender of its right to do business in
this state.  The corporation shall notify the registrar in writing
within 90 days of the dissolution, merger, or surrender.  Failure to
notify the registrar of the dissolution, merger, or surrender within
90 days shall cause the license to be canceled effective the date
written notification is received at the board's headquarters office.
If the corporation fails to notify the board of the dissolution,
merger, or surrender, the corporation license shall be canceled 60
days after the board's discovery when researching the corporate
records of the Secretary of State.  Failure to notify the registrar
within 90 days of the dissolution, merger, or surrender is grounds
for disciplinary action.
   (i) The registrar shall review and accept the petition of a
licensee who disputes the date of cancellation upon a showing of good
cause. This petition shall be received within 90 days of the board's
official notice of cancellation.



7076.1.  Upon the voluntary surrender of a license by a licensee,
the registrar shall order the license canceled.  Cancellation will be
effected upon receipt of the request by the registrar.  No refund
will be made of any fee which a licensee may have paid prior to the
surrender of the license.
   To reinstate a canceled license the licensee must pay all of the
fees and meet all of the qualifications and requirements set forth in
this chapter for obtaining an original license.




7076.2.  Notwithstanding any other provision of law, the failure of
a contractor licensed to do business as a corporation in this state
to be registered and in good standing with the Secretary of State
after notice from the registrar shall result in the automatic
suspension of the corporate license by operation of law.  The
registrar shall notify the corporate licensee in writing of its
failure to be registered and in good standing with the Secretary of
State and that the licensee shall be suspended 30 days from the date
of the notice if the corporate licensee does not provide proof
satisfactory to the registrar that it is properly registered and in
good standing with the Secretary of State.  Reinstatement may be made
at any time following the suspension by providing proof satisfactory
to the registrar that the corporate license is properly registered
and in good standing.



7076.5.  (a) A contractor may inactivate his or her license by
submitting a form prescribed by the registrar accompanied by the
current active license certificate.  When the current license
certificate has been lost, the licensee shall pay the fee prescribed
by law to replace the license certificate.  Upon receipt of an
acceptable application to inactivate, the registrar shall issue an
inactive license certificate to the contractor.  The holder of an
inactive license shall not be entitled to practice as a contractor
until his or her license is reactivated.
   (b) Any licensed contractor who is not engaged in work or
activities which require a contractor's license may apply for an
inactive license.
   (c) Inactive licenses shall be valid for a period of four years
from their due date.
   (d) During the period that an existing license is inactive, no
bonding requirement pursuant to Section 7071.6, 7071.8 or 7071.9 or
qualifier requirement pursuant to Section 7068 shall apply.  An
applicant for license having met the qualifications for issuance may
request that the license be issued inactive unless the applicant is
subject to the provisions of Section 7071.8.
   (e) The board shall not refund any of the renewal fee which a
licensee may have paid prior to the inactivation of his or her
license.
   (f) An inactive license shall be renewed on each established
renewal date by submitting the renewal application and paying the
inactive renewal fee.
   (g) An inactive license may be reactivated by submitting an
application acceptable to the registrar, by paying the full renewal
fee for an active license and by fulfilling all other requirements of
this chapter.  No examination shall be required to reactivate an
inactive license.
   (h) The inactive status of a license shall not bar any
disciplinary action by the board against a licensee for any of the
causes stated in this chapter.


7077.  Every original license, except an additional classification
issued pursuant to Section 7059, shall be a probationary license
until such time as the license is renewed.  If information is brought
to the attention of the registrar, during such probationary period,
regarding any act or omission of the licensee constituting grounds
for denial, revocation, or suspension of an application or license,
such that, in the registrar's discretion, it would be proper to
revoke the probationary license, the registrar shall forthwith notify
the applicant to show cause within not more than 30 days, why the
probationary license should not be revoked.  The proceedings shall be
conducted in accordance with the provisions of Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code, and the registrar shall have all the powers granted
therein.  A probationary license shall not be renewed during the
pendency of any proceedings brought pursuant to this section.