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Committee advances bill to raise minimum fines and reserve cap for contractor enforcement
Summary
SB 779 (Archuleta) would set higher minimum enforcement fines for contractors and raise the Contractors State License Board's reserve cap from six to 12 months; committee passed the bill, citing consumer protection and fiscal stability for CSLB.
Sen. Susan Archuleta presented SB 779 to increase minimum enforcement fines for contractor-law violations and to raise the Contractors State License Board (CSLB) fund reserve cap from six months to 12 months.
Archuleta said penalty ranges currently have wide gaps between minimum and maximum fines because the legislature raised maximums in recent years but did not adjust minimums. She noted that the existing $200 minimum for unlicensed activity has not changed since 1990. The bill would set a $500 minimum for general violations where the maximum is $8,000 and a $1,500 minimum for significant violations, including unlicensed activity, where the maximum is $30,000.
Rebecca May, representing CSLB, said citations often include civil penalties up to $30,000 plus potential restitution, and that the reserve cap increase would allow CSLB to maintain essential services in a downturn. May told the committee CSLB projects a 6.7-month reserve next fiscal year and that raising the cap avoids an immediate shortfall if license renewals decline.
No witnesses testified in opposition. The committee voted to pass SB 779, as amended, to the Appropriations Committee. Members who spoke in favor described the measure as strengthening consumer protection and ensuring the board’s enforcement actions better reflect the seriousness of violations.
