An unlicensed person performs $12,000 worth of electrical work. A complaint is filed with CSLB. What is the potential criminal penalty?
Correct Answer
D) Misdemeanor with up to $15,000 fine and/or 6 months jail
Contracting without a license for amounts over $500 is a misdemeanor under B&P Code Section 7028, punishable by up to $15,000 fine and/or 6 months imprisonment.
Why This Is the Correct Answer
Under B&P Code Section 7028, performing work that requires a contractor's license without holding one (for projects over $500) is a misdemeanor. The penalty includes a fine of up to $15,000 and/or up to 6 months in county jail. The $12,000 project far exceeds the $500 threshold, making this a clear violation.
Why the Other Options Are Wrong
Option A: Civil penalty only, no criminal charges
Unlicensed contracting is a criminal offense, not merely a civil matter. Section 7028 specifically establishes criminal misdemeanor liability, which can include jail time — not just civil penalties.
Option B: Felony with up to $25,000 fine
Unlicensed contracting is a misdemeanor, not a felony. Felony classification would require different statutory authority. The $25,000 fine figure is also incorrect — the maximum fine under Section 7028 is $15,000.
Option C: Misdemeanor with up to $5,000 fine
While unlicensed contracting is correctly identified as a misdemeanor, the $5,000 fine cap is too low. B&P Code Section 7028 sets the maximum fine at $15,000, not $5,000.
Memory Technique
Think '$15,000 fine = 15 thousand reasons to get licensed.' Or remember '7028 = 7 digits (misdemeanor, not felony) + $15K fine + 6 months.' The 6 months jail is a half-year — misdemeanor, not a multi-year felony sentence.
More California Questions
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According to B&P Code Section 7125, what is the maximum penalty the CSLB can impose for contracting without a license?
A home improvement contract for $8,500 requires a 3-day right to cancel notice. The contract is signed on Tuesday at 2 PM. When does the cancellation period expire?
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