Business and Professions Code 7028: Contracting Without a License

Legal Definition: (a) Unless exempted from this chapter, it is a misdemeanor for a person to engage in the business of, or act in the capacity of, a contractor within this state under either of the following conditions:(1) The person is not licensed in accordance with this chapter; OR(2) The person performs acts covered by this chapter under a license that is under suspension for failure to pay a civil penalty or to comply with an order of correction, pursuant to Section 7090.1, or for failure to resolve all outstanding final liabilities.To be found guilty under BP 7028, the prosecution must prove that:

1. You entered into or began contracting work;
2. When you began this contracting work, you either:

a. Were not properly licensed by the state of California; or
b. Your license that was previously valid, is currently suspended or revoked by the state.

What does this mean?

To engage in contracting work within the state of California, it is imperative to hold a valid license. Ensuring that you possess an up-to-date license, pay the required fees, avoid any suspension resulting from civil penalties, and maintain a high standard of licensure before each job is crucial. In California, the term “contractor” encompasses individuals involved in various activities such as construction, alteration, repair, addition, subtraction, improvement, relocation, wrecking, or demolition of buildings, excavations, or other projects.

It is important to note that engaging in a contract without proper licensure is considered a criminal offense according to this section. However, it should be clarified that this charge does not apply to employees, people undertaking smaller projects, or those not involved in contractual arrangements as contractors. Typically, the identification of unlicensed contractors is carried out through undercover sting operations, where individuals are hired to visit multiple job sites to ensure compliance with contracting laws and regulations.

By demonstrating extensive experience, expertise, authority, and trustworthiness, contractors can build a solid reputation in the industry.

Penalties

A conviction under BP 7028 is a straight misdemeanor offense. If you are to be convicted of this charge for the first time, you could be sentenced to upwards of six months in a County Jail. You would be required to serve at least 50% o that time in custody. If you are charged with this offense, and already have a prior conviction, the statutory minimum time you must do in jail is 90 days. This means, that if you have a prior conviction and are caught again, the least amount of jail time you could do is 90 days.On a first offense, you could also face a fine of up to $5,000, in addition to any outstanding Restitution from damages done from your work. For your second offense, the fine is either $5,000 or 20% of what the contract work that you did was, whichever is greater. This means you could be paying five to six figures in fines and fees to the Court upon a conviction under this section. On a third offense, the minimum fine becomes $5,000, and the maximum fine becomes $10,000, or 20% of the contract price, whichever is greater. Your maximum jail term also goes from six months to one year in County Jail on your third offense under this section.This is not a strike offense under the California Three Strikes law, and it is not a Sex Offense under PC 290. You would also suffer the consequences of trying to actually obtain your license if you are going to continue in the Construction line of work and being possibly denied or turned down since you have prior convictions of not following the regulation that is laid out for you.

Common Defenses

1. Statute of Limitations
2. Violation of Rights
3. Insufficient Evidence
4. Entrapment

A major defense under this section is determining if the role you were playing throughout the contract was that of a contractor. If it cannot be shown that your work performed was not that of a contractor, but rather you were only an employee, then you cannot be found guilty of this charge. BP 7028 does not apply to you if you are doing contracting work as an employee, while you are still earning wages from a contracting company. Here, it is the company, not you, that is subject to the penalties under BP 7028.
Failing to show that a person is actually an employee, and not the contractor, is a defense to show there is insufficient evidence for you to be convicted under this section. If there is a missing element as defined above, then you cannot be convicted for this offense. Another smaller example is for a person who possesses sufficient experience, expertise, and authority rather than being an employee or contractor. This is under BP 7048, which explains, in short, that a person can act under a small operations exemption, aka contract without a license, if the work to be performed under the contract is minimal, and the price of the contract is less than $500. The exemption also applies to people doing casual, minor, or relatively inconsequential work on a job site. This is another example of a person being found not guilty under this section because they are not actually “contractors”.

Call Today

Facing allegations under BP 7028 can pose a significant threat to your professional stability and future, particularly for contractors without a license or with a suspended license. The potential financial repercussions from the hefty fines, among the most severe under California Criminal Law, can be devastating. Moreover, the impact on your ability to renew or obtain a professional license can jeopardize your career continuity and growth.

Why Choose Inland Empire Defense?

• Specialized Expertise: Our Ontario-based BP 7028 attorney brings a wealth of knowledge to the table, specializing in defending professionals against charges of unlicensed contracting. Our experience spans a broad spectrum of scenarios, from suspended licenses to operating without a license.
• Proven Track Record: Inland Empire Defense prides itself on a history of successful case outcomes. Our strategic legal interventions have consistently protected our clients from the potential career-ending consequences of BP 7028 violations, restoring their professional standing and securing their livelihoods.
• Comprehensive Support: Beyond legal representation, we provide our clients with the guidance and support necessary to navigate the complex legal and regulatory landscape. Our goal is to not only address the immediate legal challenge but also to ensure a stable and secure professional future for our clients.

Facing BP 7028 Violations? Take Action Now

The stakes are high, but with the right legal partner, the path forward can lead to recovery and continued professional success. Don’t let a BP 7028 violation derail your career as a contractor. Reach out to Inland Empire Defense for dedicated and effective legal representation.

Secure Your Professional Future Today

For immediate assistance and to learn how we can help protect your career against the consequences of a BP 7028 violation, contact Inland Empire Defense at 909-939-7126. Our team, located in Ontario, is ready to provide you with the expert legal counsel and support you need to overcome this challenge and safeguard your future.