CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 899

Introduced by Assembly Member Cunningham

February 17, 2021

An act to amend Section 7027.2 of the Business and Professions Code, relating to contractors.


LEGISLATIVE COUNSEL'S DIGEST


AB 899, as introduced, Cunningham. Contractors: unlicensed work: inflation adjustment.
Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors.
Existing law authorizes a person who is not licensed as a contractor to advertise for construction work or a work of improvement covered by existing law only if the aggregate contract price for labor, material, and all other items on a project or undertaking is less than $500, and the person states in the advertisement that they are not a licensed contractor.
This bill would require the board to annually adjust the $500 amount by regulation to reflect the rate of inflation, as measured by the Consumer Price Index or other method of measuring the rate of inflation that the board determines is reliable and generally accepted.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 7027.2 of the Business and Professions Code is amended to read:

7027.2.
 (a) Notwithstanding any other provision of this chapter, a person who is not licensed pursuant to this chapter may advertise for construction work or a work of improvement covered by this chapter only if the aggregate contract price for labor, material, and all other items on a project or undertaking is less than five hundred dollars ($500), and he or she as adjusted pursuant to subdivision (b), and the person states in the advertisement that he or she is they are not licensed under this chapter.
(b) Commencing January 1, 2022, and annually thereafter, the board, by regulation, shall annually adjust the amount specified in subdivision (a) to reflect the rate of inflation, as measured by the Consumer Price Index or other method of measuring the rate of inflation that the board determines is reliable and generally accepted.