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SB 1165

BillStateCASenate
Contractor licenses: outstanding liabilities assessed by the California Department of Tax and Fee Administration.
About This Bill
Latest Action · Jul 2, 2026
Read second time. Ordered to third reading.
Session
20252026
Introduced
Feb 18, 2026
Primary Sponsor
Caballero· author

Summary

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Existing law, the Contractors State License Law, establishes the Contractors State License Board and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law requires the board to appoint a registrar of contractors, as specified, to serve as the executive officer and secretary of the board. Existing law permits the registrar to suspend or refuse to issue, reinstate, reactivate, or renew a license for a failure to resolve all outstanding final liabilities, including taxes and any fees that may be assessed by, among others, the State Board of Equalization and the Franchise Tax Board. Existing law exempts from that provision the outstanding final liabilities assessed by the State Board of Equalization of a licensee who has entered into an installment payment agreement with the State Board of Equalization, as provided. Existing law, on July 1, 2017, transferred to the California Department of Tax and Fee Administration various duties, powers, and responsibilities of the State Board of Equalization. This bill would update the above-described outstanding liability enforcement provisions of the Contractors State License Law to include references to the California Department of Tax and Fee Administration, as specified. The bill would require the installment payment agreements with the State Board of Equalization or the department to be in writing. The Contractors State License Law requires the application for a contractor's license to include an authorization by the applicant for the Franchise Tax Board to disclose the tax information that is required for the registrar to administer the outstanding liability enforcement provisions, as specified. Existing law authorizes the Franchise Tax Board to audit these authorizations. This bill would revise the application requirements to include a similar tax information disclosure authorization for the department, as specified. The bill would also authorize the department to audit these authorizations.

Subjects

ContractorlicensesoutstandingliabilitiesassessedbytheCaliforniaDepartmentofTaxandFeeAdministration

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