RMO World – Issue 39: January 2025 New Year Edition

SACRAMENTO, CA – A new law will raise the threshold for work requiring a contractor’s license from $500 to $1,000.

Assembly Bill 2622 (Carrillo, Chapter 240, Statutes of 2024), effective January 1, 2025, will allow an unlicensed person to complete small projects up to $1,000 without obtaining a contractor’s  license if they do not hire workers and no building permits are needed. If a consumer’s project under $1,000 requires workers or permits, a contractor’s license in the appropriate license classification is required.

The new law states that a person who is not licensed may advertise for construction work if the total contract price for labor, materials, and all other items on a project is less than $1,000 The $1,000 includes all costs associated with the project. The advertisement must state the person is not licensed.

As with any home improvement construction project, CSLB cautions that a down payment should not exceed 10 percent of the contract price, and any subsequent payments should not exceed the value of the work completed or the materials delivered.

If an unlicensed person provides a bid greater than $1,000, performs work requiring a permit, or employs any workers, that person is subject to legal action. Penalties for unlicensed contracting include administrative fines of up to $15,000, jail sentences of up to six months, and fines up to $5,000. Repeat offenders may face a mandatory 90-day jail sentence and a fine of $5,000 or 20 percent of the contract price, whichever is greater.

For more information, visit CSLB’s website, or connect with them on Facebook, X/Twitter, Instagram, and YouTube.

If you, a subcontractor or anyone you know needs help getting their Contractor License, we’ll be happy to find them an RMO and help with the licensing process.

It’s easy and we’ve been doing it since 2006!

Don’t take the risk of working unlicensed when there is an easy and legal alternative solution that requires no exam.

Call us today 800-818-4962 ext 101 or email [email protected]

New Law Changes in 2025 Affecting Licensees, Applicants and Stakeholders

Sacramento, CA – The Contractors State License Board (CSLB) is advising licensees, applicants, and other stakeholders of key legislative updates following the implementation of Senate Bill 1455 (Ashby, 2024).

This bill, effective January 1, 2025, extends the Board’s “sunset” date from 2025 to 2029 and makes other changes to the law, which are described below.
Key Provisions of SB 1455

1. Public Works Project Licensing
   • What’s New?
     Awarding authorities must now ensure that public works project bidders hold the correct license classification for the work being performed.
   • Why It Matters: 
     This ensures public works projects are performed by qualified professionals under the appropriate CSLB license classifications.
2. Accountability for Workmanship Complaints
   • What’s New?
     Contractors subject to workmanship complaints that result in a letter of admonishment or citation will now be required to reimburse CSLB for industry expert costs.
   • Why It Matters:
     This change encourages higher quality workmanship and ensures fairness in covering costs associated with complaint resolution.
3. Licensing of Tribal Businesses
   • What’s New?
     CSLB will license tribal businesses, which must be organized under the jurisdiction of a federally recognized tribe.
   • Why It Matters:
     This change would allow licensed tribal businesses to undertake construction projects off tribal lands, fostering economic growth in tribal communities.
4. Delay in Mandatory Workers’ Compensation Insurance Law
   • What’s New?
     The full implementation of mandatory workers’ compensation insurance for all licensees regardless of whether they have employees is delayed from January 1, 2026, to January 1, 2028.
   • What It Means:
     • Licensees in all trades (except C-39, C-8, C-20, C-22, and D-49) can continue to claim exemptions if they have no employees, until January 1, 2028.
     • The delay allows CSLB time to determine possible exemption eligibility.
5. Direct Payment for PSI Exams
   • What’s New?
     Candidates will pay PSI Exams directly to schedule and reschedule exams. This eliminates CSLB’s role in handling these fees.
   • Cost Details:
     • $45.65 per exam or $91.30 for two exams.
     • CSLB will no longer charge a $100 rescheduling fee.
   • Process Overview:
     Eligible candidates will receive a notification from CSLB and then contact PSI to schedule exams via PSI’s website or by calling (877) 392-6422.

Download PDF of this information HERE

If you are operating as a corporation, LLC or other legal entity, you are likely required to file beneficial ownership information with the U.S. Treasury Department by January 13, 2025.  This requirement was temporarily suspended by a preliminary injunction, but that was lifted by a December 23, 2024, federal Court of Appeals decision, reinstating the reporting requirment. 

To accommodate reporting companies, FinCen has adjusted the filing schedule as follows:

• Companies created or registered before January 1, 2024, now have until January 13, 2025, to submit their initial beneficial ownership information reports.
• Companies created or registered in the U.S. on or after September 4, 2024, with filing deadlines between December 3, 2024, and December 23, 2024, also have until January 13, 2025, to file their reports.
• Companies registered between December 3, 2024, and December 23, 2024, have an additional 21 days from their original deadline.
• Companies eligible for disaster relief may have extended deadlines beyond January 13, 2025.
• Companies established on or after January 1, 2025, must file within 30 days of their creation or registration notice.

You may prepare your filing using the following link: HERE