Change in Home Improvement Salesperson Registration Requirements

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On January 1, 2016, in accordance with Senate Bill 561, certain changes in home improvement salesperson registration requirements took effect.  Under previous law, home improvement salespersons employed by one or more home improvement contractors were required to have a registration for each home improvement contractor by whom they were employed.  See Cal. Bus. & Prof. Code former § 7153(a).

The current law is less cumbersome and now requires that a home improvement salesperson working for one or more home improvement contractors have only one current and valid home improvement salesperson registration at the time of a sales transaction.  See Cal. Bus. & Prof. Code §§ 7152(a), 7153(a).  Engaging in the occupation of salesperson of home improvement goods or services within California without having a current and valid home improvement salesperson registration is a misdemeanor.   Cal. Bus. & Prof. Code § 7153(a).

Additionally, the amended laws set forth clear expiration dates for home improvement salesperson registrations: registrations expire either (1) two years from the last day of the last month in which registration was issued, or (2) two years from the date on which a renewed registration last expired.  Cal. Bus. & Prof. Code. § 7153.2.

The definition of a “home improvement salesperson” was also amended, and arguably expanded.  Previously, a home improvement salesperson was defined as being “employed” by a home improvement contractor, however, a home improvement salesperson is now defined as one “engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs on behalf of a home improvement contractor licensed under this chapter.” Cal. Bus. & Prof. Code. § 7152(a)(emphasis added).

Home improvement contractors should also be mindful of their reporting requirements under California Business and Professions Code § 7154.  A home improvement contractor must notify the registrar of (1) the employment of a home improvement salesperson, prior to the salesperson beginning work for the contractor, and (2) the cessation of employment of a registered home improvement salesperson, within 90 days after the salesperson ceases to be employed by the contractor.  Cal. Bus. & Prof. Code. § 7154(a), (b).  Information that must be reported includes the home improvement salesperson name and registration number. Cal. Bus. & Prof. Code. § 7154(a), (b).  Further, contractors are subject to disciplinary action if they fail to report the above or if they employ an unregistered salesperson.  Cal. Bus. & Prof. Code. § 7154(c), (d).

The amended law authorizes the Contractors State Licensing Board to implement a system to provide for the electronic transmission of home improvement salesperson applications for registration.  Cal. Bus. & Prof. Code. § 7156.6.  More information about applying for Home Improvement Salesperson registration can be found at the Contractors State License Board website: http://www.cslb.ca.gov/Contractors/Applicants/Home_Improvement_Registration/

For more information about this topic please contact:

Ellison-Michele

 

Michele Ellison, Esq.

Gibbs Giden Locher Turner Senet & Wittbrodt LLP

1880 Century Park East 12th Floor

Los Angeles, CA 90067

(310) 552-3400

email: mellison@gibbsgiden.com

The content contained herein is published online by Gibbs Giden Locher Turner Senet & Wittbrodt LLP (“Gibbs Giden”) for informational purposes only, may not reflect the most current legal developments, verdicts or settlements, and does not constitute legal advice. Do not act on the information contained herein without seeking the advice of licensed counsel.

Copyright 2016 Gibbs Giden Locher Turner Senet & Wittbrodt LLP ©

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