Senate Bill 779 raises minimum fines for California construction law violations

The Senate Business, Professions and Economic Development Committee convened on April 7, 2025, to discuss several key legislative measures, notably Senate Bill 779, aimed at enhancing accountability within the construction industry in California. The meeting began with an overview of the bill's objectives, presented by Senator Archuleta, who emphasized the need to address both good and bad actors in the contracting field.

Senator Archuleta highlighted that the bill seeks to establish minimum fines for violations of contractor laws, which have historically lacked a baseline amount. Currently, the minimum fine for unlicensed activity is set at $200, a figure that has remained unchanged since 1990. The proposed legislation would raise this minimum to $500 for general violations and $1,500 for more serious infractions, with maximum fines reaching up to $30,000 for egregious offenses.

Rebecca May, representing the Contractors State License Board (CSLB), supported the bill, noting that citations are crucial for enforcing compliance among contractors. She explained that the CSLB often resolves complaints without formal action, but citations become necessary when contractors fail to adhere to the law. The proposed minimum fines are intended to encourage compliance and deter repeat violations.

Committee members expressed their support for the bill, recognizing the importance of providing the CSLB with adequate tools to enforce regulations effectively. Senator Grayson pointed out that the fines collected would help fund further enforcement efforts, thereby enhancing consumer protection. He underscored the necessity of holding bad actors accountable, especially in light of ongoing rebuilding efforts in areas affected by wildfires.

The discussion also touched on the relationship between fines and restitution for consumers. While the bill focuses on penalties for contractors, it was noted that victims of contractor violations still have avenues for recovery through small claims or superior courts. The committee acknowledged the need for future measures to ensure that consumers are adequately protected and compensated.

After thorough deliberation, the committee voted unanimously in favor of Senate Bill 779, moving it forward to the Senate Judiciary Committee for further consideration. The meeting concluded with a commitment to continue addressing issues within the contracting industry to safeguard consumer interests and promote fair practices.