AB-1278: DON'T GET NAILED!

New California Law for Licensed Contractors. -Stephen J. Guichard, Esq. In October 2017, Governor Brown signed AB 1278 into law. Previously, licensed contractors who failed to pay a final court judgment entered against them could simply avoid the judgment by not working under their license issued by the Contractor's State License Board ("Board"); form a new entity; or work under another contractor's license. Further Implications for Contractors This Bill reduces the possibility of avoiding a judgment by suspending a contractor's license until the contractor: (1) Pays the judgment and notifies the Board, (2) Submits a notarized settlement agreement to the Board, or (3) Files a bond equal to all outstanding judgments against the contractor. Caution! Hiring the suspended contractor to work under your contractor's license or hiring personnel of the suspended contractor to work under your contractor's license may result in suspension of your…

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