Business & LicensingQuestion 1454 of 1632

Why does California require home improvement salespersons to register with the CSLB?

a.To collect and remit sales tax on home improvement contracts
b.So CSLB can oversee those who solicit these contracts
c.To license them to perform home improvement work themselves
d.So each salesperson posts an individual $25,000 surety bond

Explanation

B&P §7153 requires anyone who solicits or negotiates home improvement contracts for a licensee to register, so the CSLB has a record of, and disciplinary reach over, the people doing the selling. (a) is a tax function that has nothing to do with the registration. (c) is the central misconception the registration is designed to prevent — a registered salesperson may sell, never perform, contracting work. (d) transplants the §7071.6 license bond onto the individual; the registration carries no separate bond.

Law Reference: B&P Code §7153 / §7153.1

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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
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