As in many states, new statutes in California often take effect Jan. 1. The California Pool & Spa Association has identified a handful of new contractor laws that will likely affect the pool/spa industry:
• AB 2705: This new law expands the period during which agencies can prosecute unlicensed contractors for failing to obtain workers’ compensation insurance. The statute of limitations is now two years rather than one.
• SB 1465: Contractors and insurers now must report to the Contractors State License Board (CSLB) all final civil judgments, settlements or arbitration awards resulting from damage claims of more than $1 million for construction defects in multi-family residential structures.
• AB 3126: With this law on the books, contractors can no longer provide a cash deposit with CSLB in lieu of a contractor license bond, bond of qualifying individual, or disciplinary bond. This is meant to protect consumers by ensuring funds are available if a valid claim is filed against a bond. Contractors can pay with a cashier’s check.
• AB 2138: Effective July 1, 2020, this law limits CSLB’s ability to deny a license based on the conviction for specific crimes. However, it also authorizes the agency to deny a license based on a conviction if it occurred within seven years from the date of application. Applicants cannot be denied a license if they were pardoned, show rehabilitation, or if the conviction was dismissed. An arrest alone cannot serve as the basis for denial.
• SB 1042: This new law may make it easier to resolve citations filed against contractors by the CSLB. In the case of lesser administrative charges, CSLB has the option of engaging in an informal citation resolution process, which is not subject to procedural requirements involved with an administrative hearing. Contractors can still request an administrative hearing if they request.
