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Construction,
Administrative/Regulatory

Nov. 17, 2023

A dangerous loophole in CSLB’s mechanical suspension policy

There are far too many cases in which the Contractor’s State License Board has wrongly failed to suspend related licenses, instead letting the offenders unlawfully maintain related licenses while shirking their responsibility to pay judgments against them.

The Contractor’s State License Board (CSLB) current mechanical and uniform policy regarding suspending related licenses has created a dangerous loophole that is being taken advantage of by unscrupulous contractors. If a judgment is entered against a contractor, the CSLB is supposed to suspend related licenses based on “the time of the activities on which the judgment is based.” Business and Professions Code §7071(j)(1). Currently, however, the CSLB’s policy is to mec...

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