7028 BP – Contracting Without a License

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1. What is 7028 BP – Contracting Without a License?

California Business and Professions Code 7028 BP makes it a crime to work as a contractor without a valid license. This law is in place to protect consumers from unqualified contractors and to ensure compliance with state regulations.

Under BP 7028, it is illegal to:

Operate as a contractor without a valid license issued by the Contractors State License Board (CSLB).
Perform contracting work under a license that has been suspended due to non-payment of penalties or failure to comply with a correction order.

In California, the term “contractor” is synonymous with “builder” and applies to anyone engaged in activities such as:

Constructing, altering, repairing, or improving buildings or structures.
Demolishing, excavating, or making additions to various developments or improvements.

Additionally, any contracts entered into by an unlicensed contractor are considered illegal. Furthermore, an unlicensed contractor is barred from recovering payments for work performed under these contracts.

Legal Defenses to BP 7028 Charges

A person accused of contracting without a license can defend against the charges using specific legal arguments. Hiring an experienced attorney is crucial to building an effective defense. Common defenses include:

1. Not a Contractor

BP 7028 applies only to “contractors” as defined under Business and Professions Code 7026. If a person can prove they do not meet this definition, they may avoid conviction.

2. Small Work Exemption

Under BP 7048, contracting laws do not apply to work valued under $500 or considered casual, minor, or inconsequential. This “small operations exemption” allows individuals to perform such work without a contractor’s license.

3. Employee Status

BP 7028 does not apply to individuals performing contracting work as employees of a licensed contractor. In such cases, the employer, not the employee, is subject to penalties.

2. What are examples of 7028 BP – Contracting Without a License?

California Business and Professions Code 7028 BP makes it a crime to work as a contractor without a valid license issued by the Contractors State License Board (CSLB). This law applies to a variety of activities performed by unlicensed individuals or businesses. Below, we explore examples of contracting without a license to help clarify how this law is commonly violated.

Examples of Contracting Without a License

1. Performing Construction or Renovation Without a License

A person who offers services such as building new homes, remodeling kitchens, or constructing additions without a valid contractor’s license violates BP 7028. For instance:

Example: A handyman advertises and performs a $10,000 bathroom renovation without being licensed by the CSLB.

2. Operating Under a Suspended or Revoked License

Contractors whose licenses have been suspended due to unpaid penalties or failure to comply with correction orders cannot legally operate. Continuing to take on projects in this situation is a violation.

Example: A contractor with a suspended license takes on a roofing job and completes the work under the assumption the client will not check their licensing status.

3. Signing Contracts for Work Over $500 Without a License

California law allows unlicensed individuals to perform contracting work only if the project’s value is less than $500 and the work is considered casual or minor. Contracts exceeding this amount require a valid contractor’s license.

Example: An unlicensed individual agrees to build a fence for $1,200, violating the small work exemption under BP 7048.

4. Advertising Contractor Services Without a License

It is illegal for individuals to advertise or represent themselves as contractors if they are unlicensed. This includes posting ads online or on social media platforms claiming to offer contracting services.

Example: A person posts an ad on Craigslist offering plumbing services but does not possess the appropriate license to perform the work legally.

5. Using Another Person’s Contractor License Number

It is a violation of BP 7027.3 to use another contractor’s license number fraudulently. This offense often involves misrepresentation or identity theft.

Example: A worker uses their former employer’s contractor license number to secure a project, without the employer’s knowledge or permission.

6. Hiring Employees for Contracting Work Without a License

Even if the unlicensed individual does not personally perform the work, hiring employees to complete a construction project without proper licensure is still a violation.

Example: A person contracts a landscaping project worth $10,000 and hires workers to complete it without obtaining a contractor’s license.

7. Failing to Obtain a License After Repeated Warnings

Some individuals continue to operate without a license even after being warned or penalized by the CSLB. Repeat violations often result in harsher penalties.

Example: A contractor who had their license revoked for non-compliance continues to bid on large-scale construction jobs.

3. What are the penalties for 7028 BP – Contracting Without a License?

California Business and Professions Code 7028 BP makes it a crime to operate as a contractor without a valid license from the Contractors State License Board (CSLB). Violating this law can lead to serious penalties, including fines, imprisonment, and restrictions on recovering payment for work performed. Below, we outline the penalties for violating BP 7028 and how they vary depending on the offense.

Penalties for Contracting Without a License

1. First Offense

A first-time violation of BP 7028 is classified as a misdemeanor. The penalties include:

Jail time: Up to six months in county jail.
Fines: Up to $5,000.

In addition to these criminal penalties, the court may also order the offender to pay restitution to any victims for financial losses caused by the unlicensed work.

2. Second Offense

A second conviction for contracting without a license carries harsher penalties to discourage repeat violations. These penalties include:

Jail time: A mandatory 90 days in county jail.
Fines:
- 20% of the total contract price, or
- 20% of all payments made to or at the direction of the unlicensed contractor, or
- A minimum fine of $5,000.

The court determines which fine amount is greater and imposes that amount.

3. Third or Subsequent Offense

For a third or any subsequent violation of BP 7028, the penalties increase significantly. These include:

Jail time: Between 90 days and one year in county jail.
Fines:
- 20% of the contract price, or
- 20% of all payments made to or at the direction of the unlicensed contractor, or
- A fine ranging from $5,000 to $10,000.

Defendants whose contractor licenses were previously revoked will automatically face these third-offense penalties, even if it is their first time being charged under BP 7028.

Additional Consequences of Violating BP 7028

1. Inability to Recover Payment for Work Performed

Under California law, unlicensed contractors cannot legally enforce contracts or recover payment for any work performed under those contracts. This applies even if the work was completed to the customer’s satisfaction.

2. Restitution to Victims

In many cases, courts require offenders to pay restitution to clients who suffered financial losses due to unlicensed work. This could include refunds for payments made or the cost of correcting substandard work.

3. Civil Lawsuits

Clients may also pursue civil lawsuits against unlicensed contractors. These lawsuits could result in significant financial liabilities, including damages and legal fees.

Why Are the Penalties So Severe?

The penalties for contracting without a license are designed to protect consumers and ensure that construction work in California meets high professional standards. Licensed contractors are required to meet specific qualifications, carry insurance, and adhere to state regulations, which provides a level of accountability and protection for homeowners.

Unlicensed contractors, on the other hand, operate outside of this system, increasing the risk of poor workmanship, fraud, and financial disputes. The strict penalties aim to deter unlicensed activity and promote compliance with state licensing laws.

Related Offenses

Violating BP 7028 often overlaps with other offenses, including:

Fraudulent use of a contractor’s license number (BP 7027.3): This involves using someone else’s license number or a fictitious one. Penalties include jail time and fines, with the offense being classified as a misdemeanor or felony.
False advertising (BP 17500): Advertising contractor services without a license can lead to additional fines and jail time.

Facing Charges Under BP 7028? Contact Grace Legal Group

If you are accused of contracting without a license, the penalties can be severe and have long-lasting consequences on your professional and personal life. At Grace Legal Group, our experienced attorneys in Los Angeles specialize in defending individuals charged under BP 7028. We can help build a strong defense, negotiate reduced penalties, or seek dismissal of charges.

Contact us today for a free consultation to discuss your case and explore your legal options. Protect your future with the help of a trusted legal team.

4. What are legal defenses for 7028 BP – Contracting Without a License?

California Business and Professions Code 7028 BP makes it a crime to operate as a contractor without a valid license. While the penalties for this offense can be severe, individuals accused of violating BP 7028 have the right to defend themselves in court. Employing the right legal defense can lead to reduced charges, a dismissal, or minimized penalties. Below, we outline the most effective defenses for those facing accusations of contracting without a license.

Legal Defenses to Contracting Without a License

1. Not a Contractor

A key element of a BP 7028 violation is that the accused must be a “contractor” as defined under California law. According to Business and Professions Code 7026, a contractor is someone who:

Constructs, alters, repairs, adds to, subtracts from, improves, moves, wrecks, or demolishes buildings, structures, or other developments.

If the accused can demonstrate that they do not meet this definition, they cannot be convicted under BP 7028. For example:

A homeowner performing their own home improvement project would not be considered a contractor.
An individual performing only advisory or administrative tasks without engaging in construction work might not meet the definition.

2. Small Work Exemption

California law provides an exemption for small-scale work under Business and Professions Code 7048, commonly known as the “small operations exemption.” This exemption applies if:

The total contract price is less than $500, including labor and materials.
The work is casual, minor, or inconsequential in nature.

For instance, a person who fixes a broken fence for $400 may fall under this exemption and avoid penalties under BP 7028.

3. Employee, Not a Contractor

BP 7028 applies specifically to contractors, not employees. If the accused was working as an employee for a licensed contractor and earning wages, they cannot be charged under BP 7028. In such cases:

The licensed contractor is legally responsible for ensuring compliance with California licensing laws, not the employee.
Proof of employment, such as pay stubs or a signed contract, can serve as evidence for this defense.

4. Lack of Knowledge or Intent

In some cases, an individual may argue that they lacked the knowledge or intent to violate BP 7028. For example:

A person may have believed they were working under the supervision of a licensed contractor.
Miscommunication or errors regarding the status of a contractor’s license may also serve as a basis for this defense.

5. Invalid Contract or Agreement

If the contract in question is invalid for reasons unrelated to licensing, the accused may argue that they were not technically operating under an enforceable contract. For example:

If the agreement lacks necessary terms or signatures, it may not qualify as a valid contract.
This defense focuses on procedural errors rather than the contractor’s licensing status.

6. Mistaken Identity

In some cases, the accused may argue that they were not the person performing or managing the unlicensed work. For instance:

A property owner may mistakenly identify the accused as the contractor when the actual contractor is someone else.
Witness testimony, contracts, or other documentation can be used to prove mistaken identity.

7. Constitutional Violations

If law enforcement violated the accused’s constitutional rights during an investigation, the evidence gathered may be inadmissible in court. Examples include:

Illegal search and seizure without a warrant or probable cause.
Failure to provide Miranda warnings during an arrest.

An attorney can file motions to suppress evidence obtained unlawfully, which may weaken the prosecution’s case.

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5. What are related offenses to 7028 BP – Contracting Without a License?

California Business and Professions Code (BP) § 7028 makes it a crime to work as a contractor without a valid license. However, this offense is often associated with other violations under California law. Understanding these related offenses can provide clarity about the broader legal implications for unlicensed contracting and similar activities.

Below, we outline the most common offenses related to contracting without a license, their definitions, and their potential penalties.

1. Fraudulent Use of a Contractor’s License Number – BP 7027.3

Under BP § 7027.3, it is a crime to fraudulently use someone else’s contractor license number or a fictitious license number. This includes:

Using another contractor’s license to perform work.
Advertising or presenting yourself as licensed when you are not.

Penalties:

Misdemeanor:
- Up to 6 months in jail.
- Fines of up to $1,000.
Felony (for more severe cases):
- 16 months, 2 years, or 3 years in county jail.

Example:

An unlicensed contractor uses a legitimate contractor’s license number on business cards to secure jobs. This act can lead to both BP 7028 and BP 7027.3 charges.

2. False Advertising – BP 17500

California Business and Professions Code § 17500 makes it illegal to engage in false or misleading advertising. This can include:

Falsely claiming to hold a contractor’s license.
Misrepresenting the scope or quality of services offered.

Penalties:

Misdemeanor:
- Up to 6 months in jail.
- Fines of up to $2,500.
Civil Penalties:
- Victims of false advertising can file lawsuits for damages.

Example:

A person advertises services as a licensed contractor but fails to mention their lack of a valid license. This could result in charges under both BP 7028 and BP 17500.

3. Unauthorized Practice of Law – BP 6125

While not directly related to contracting, BP § 6125 prohibits individuals from practicing law without being an active member of the California State Bar. This offense parallels BP 7028 in that both involve operating in a regulated profession without proper credentials.

Penalties:

Misdemeanor:
- Up to 1 year in jail.
- Fines of up to $1,000.
Felony (for severe cases):
- 16 months, 2 years, or 3 years in jail.

Example:

A person advertises legal services or provides legal advice without being a licensed attorney, similar to how someone might claim to be a contractor without proper credentials.

4. Unauthorized Practice of Medicine – BP 2052

Under BP § 2052, it is illegal to practice medicine without a valid medical license. Like BP 7028, this offense involves performing regulated services without authorization.

Penalties:

Misdemeanor:
- Up to 1 year in jail.
- Fines of up to $1,000.
Felony:
- 16 months, 2 years, or 3 years in jail.

Example:

A person offers medical advice or services, such as minor procedures, without a medical license. This offense mirrors unlicensed contracting in its violation of professional licensing laws.

5. Failure to Secure Workers’ Compensation Insurance – Labor Code 3700.5

Employers in California are required to secure workers’ compensation insurance for employees. Contractors who fail to do so are subject to penalties under Labor Code § 3700.5. This offense is often connected to unlicensed contracting, as unlicensed contractors may neglect their obligations to provide proper employee protections.

Penalties:

Misdemeanor:
- Up to 1 year in jail.
- Fines of up to $10,000.
Civil Penalties:
- Additional fines of up to $100,000.

Example:

An unlicensed contractor hires workers for a project but fails to secure workers’ compensation insurance. They can be charged under BP 7028 and Labor Code 3700.5.

6. Construction Fraud – Penal Code 484 and 487 PC

Unlicensed contracting often overlaps with construction fraud under California Penal Code §§ 484 and 487. Fraud occurs when a contractor intentionally deceives clients, such as:

Taking payment without completing the work.
Misrepresenting the quality or scope of services.

Penalties:

Petty Theft (Value under $950):
- Up to 6 months in jail.
- Fines of up to $1,000.
Grand Theft (Value over $950):
- Up to 3 years in jail.
- Fines of up to $10,000.

Example:

An unlicensed contractor collects payment upfront for a project but never completes the work. This could result in charges for both BP 7028 and construction fraud.

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