CSLB and Butte County District Attorney Continue Effort to Protect Camp Fire Survivors from Unlicensed Contractors
Agencies joined forces to conduct undercover sting operation in declared disaster area
SACRAMENTO, Calif.– As Camp Fire survivors in the Paradise area of Butte County continue to rebuild, the Contractors State License Board (CSLB) Statewide Investigative Fraud Team (SWIFT) and Butte County District Attorney’s Office (DA’s Office) remain alert to unlicensed or unscrupulous contractors who take advantage of the situation. The agencies collaborated recently to conduct an undercover sting operation.
Bids received during the operation ranged from $2,200 for tree removal to $12,700 for the installation of concrete.
A total of seven individuals were caught in the operation with three suspects now facing felony charges of contracting without a license in a declared disaster area (Business and Professions Code (BPC) § 7028.16). In California, a contractor license is required for home improvement projects valued over $500. The penalty for this violation increases from a misdemeanor to a felony charge in disaster areas and has a potential penalty of up to three years in state prison and a fine of up to $10,000.
One of the three suspects facing this felony charge provided a bid of $4,020, a down payment of $1,500, and advertised without a license. The suspect may face additional misdemeanor charges for illegal advertising (BPC §7027.1) and requiring an excessive down payment (BPC § 7159.5). It’s illegal for contractors to ask for more than 10 percent down or $1,000 for home improvement projects, whichever is less.
“Consumers should be sure to take some simple steps before hiring anyone to work in or around their home," said CSLB Registrar David Fogt. “The fastest way is to make sure they have a state license and to check the license status using CSLB's License Check. Homeowners should also use CSLB's Find My Licensed Contractor feature to download and/or print a list of qualified licensed contractors in their area."
Last month, with local law enforcement's help, SWIFT went undercover in Kern and Los Angeles counties to catch unlicensed contractors in the act. Bids from 27 suspects ranged from $2,010 for tile work to $12,000 for painting – well over the legal threshold for contracting without a license.
In addition, nine Stop Orders were issued that halted all employee labor at active job sites where contractors did not have workers’ compensation insurance for their employees. California law requires that all employers carry workers' compensation insurance, even if they have only one employee (Labor Code section 3700.5).
Tips for Hiring a Contractor
Hire only California-licensed contractors. Ask to see the license. The license number must be on all ads, contracts, and business cards.
Get three bids, check references, and get a written contract.
Don't rush into decisions and don't hire the first contractor who comes along.
Don't pay more than 10 percent down or $1,000 — whichever is less.
Don't pay cash, and don't let the payments get ahead of the work. Only pay for work as it is completed to your satisfaction.
Keep a job file of all project papers, including correspondence and copies of all payments.
Avoid making the final payment until you’re satisfied with the job.
Remodeling Licensing Options for Contractors
CSLB developed a B-2 Residential Remodeling Classification last year. It is available to qualified individuals working on home improvement work, including bathroom and kitchen remodels, replacement of cabinets, flooring, plumbing and electrical fixtures and other home improvement projects. However, the work can’t involve structural alterations on load-bearing walls. Learn more about the B-2 license here.
Video Footage: No video of this sting operation is available; however, the video clips below are from a January 2020 sting operation in Paradise, California.
About CSLB: CSLB operates under the umbrella of the Department of Consumer Affairs and licenses and regulates nearly 285,000 contractors in California. In 2021, CSLB helped consumers recover more than $44 million in ordered restitution.
