Contractors: civil penalties.

Senator Archuleta's contractor regulation bill raises minimum civil penalties for unlicensed contracting and establishes new baseline fines for violations of California's Contractors State License Law. Starting July 1, 2026, citations for unlicensed contracting will carry minimum penalties of $1,500, up from the current $200, while maintaining the existing $15,000 maximum. The legislation also sets new minimum penalties of $500 for general licensing violations and $1,500 for specific infractions related to workers' compensation and contractor responsibilities.

The bill authorizes the Contractors State License Board to adjust these minimum penalties every five years based on Consumer Price Index changes, with increases rounded to the nearest $100 for smaller penalties and $1,000 for larger ones. Additionally, the board's reserve fund capacity would double from six to twelve months of annual authorized expenditures.

Under the citation process, the registrar must notify public entities within 72 hours when they plan to award contracts to unlicensed contractors. The registrar may then issue citations to responsible public officials who proceed with such awards after receiving notice. These enforcement mechanisms operate separately from other civil or criminal remedies available under existing law.