Contractor License Suspension and Criminal Convictions in California
Construction contractors in California are at risk of having their license suspended or revoked if they commit any offense “substantially related” to their contracting duties. This generally includes fraud, theft, or violent offenses.
 
Similarly, applicants for contractor licensing could have their application denied because they committed a crime that was substantially related to contracting within the last seven years. Further, the Contractors State License Board can reject applicants for having committed either of the following offenses even though it happened more than seven years prior:

• a serious crime, like rape, murder, or grand theft,
• a sex crime which requires them to submit to Tier II or Tier III registration, or
• a financial felony connected to contracting

 
Spodek Law Group’s California Criminal Defense team might be able to help. We work with California professionals, including contractors resolve license discipline issues.
 
You will learn in this article about the impact of criminal convictions on contractors’ licenses.
This overview includes:

1. What regulating body oversees contractors in California?
2. How does the 7-year rule apply to contractors?
3. Would a criminal conviction automatically trigger CSLB discipline?

 
The “Substantially Related” Standard
Conviction Defined
The Role of Rehabilitation
What is a Disciplinary Bond?
Will I be able to fight to keep my license?
 
If you still have questions after reading this article, feel free to contact us at Spodek Law Group for your free consultation.
 
What regulating body oversees contractors in California?
The regulating body that oversees Engineering Contractors, General Building Contractors and Specialty Contractors in California is called the Contractors State License Board (CSLB). The CSLB is made up of a 15-member board and an executive officer called the Registrar of Contractors.  Their mission, under the purview of California Department of Consumer Affairs, is to protect building industry customers from unscrupulous, irresponsible and dangerous contractors. They administer the Contractors’ State License Law and other administrative regulations.
This board has the responsibility of licensing more than 300,000 contractors in 43 classification categories.
 
How does the 7-year rule apply to contractors?
In general, the CSLB doesn’t deny licenses to applicants with a conviction from more than seven (7) years prior if the applicant successfully finished all the sentencing terms, including paying fines or completing community service.
That said, they can deny licenses to persons who have convictions at any time for any of these serious offenses:

• An offense which mandates Tier II or Tier III sex offender registration;
• a felony financial offense directly and adversely related to the fiduciary qualifications, functions, or responsibilities of contracting; or
• a serious felony, as defined in Section 1192.7 of the Penal Code, which includes crimes such as murder, kidnapping, child abuse, rape, assault, robbery, arson and the like.

The conviction in question must be “substantially related” to the qualifications, functions, or duties of a contractor to trigger CSLB discipline
 
Would a criminal conviction automatically trigger CSLB discipline?
The conviction needs to be “substantially related” to the qualifications, functions, or responsibilities of a contractor to trigger CSLB discipline.  As a new applicant, a past criminal conviction can preclude or get in the way of your ability to obtain a contractors’ license.  Current regulations require applicant fingerprinting and criminal background checks.
 
The “Substantially Related” Standard
For the purposes of this discussion, a “substantially related” conviction is one that implicates a contractor’s ability to perform contracting work in a safe and responsible way.
When in doubt, the best course of action is to check with a knowledgeable lawyer regarding your particular circumstances to determine whether it might be substantially related to contracting work.
 
Conviction Defined
In this context, convictions are defined as felony and misdemeanor convictions that secured through guilty pleas and verdicts, and no contest pleas.  Even expunged criminal records can be viewed as a relevant conviction for these purposes.
The Registrar can act upon your conviction when the time for appeal has passed, the judgment of conviction has been affirmed on appeal, or an order granting probation is made that suspends the imposition of sentence.
 
The Role of Rehabilitation
Rehabilitation — the idea that people can move past their crimes — is ca critical concept in contractor license discipline and license denial matters involving criminal convictions. Just because a person went through a rough season in the past does not mean that a person is unfit to do contracting work at present.
The Registrar may consider a number of factors in deciding whether a contractor or applicant has been rehabilitated, including how much time has elapsed since the conviction.
 
What is a Disciplinary Bond?
Part of a licensed contractor’s obligations is to post a disciplinary bond of at least $15,000 for license restoration following discipline, on top of any other bonds required by law.
 
Will I be able to fight to keep my license?
You put in hard work for your contractors’ license.  The CSLB is not allowed to just take it away or deny it without giving you the opportunity to challenge their decision.
There are various approaches to fighting for your license.

1. You (or your attorney) can attempt to negotiate a deal that avoids a contractors’ license suspension.
2. You can get a hearing before an administrative law judge. This works like a trial, in which you will have a chance to introduce evidence and cross-examine witnesses.
3. Should you still end up losing your license, you will be able to petition CSLB for reinstatement down the line.

A skilled attorney can help you exercise your options and build a strong defense.  We have tools, too. We will use our tools to help you keep yours working.
 
The California Criminal Defense Attorneys at Spodek Law Group Can Help.
If you or a loved one is a contractor, and you should ever get charged with a crime, please contact us at Spodek Law Group. We will give you a free consultation in office or by phone.
Plus we have a wide array of articles on criminal law topics including Common Crimes from A to Z, Domestic Violence and California Gun Laws.