California lawmakers just passed a bill to raise minimum fines for unlicensed contractors by as much as 650 percent, a move that received nearly unanimous bipartisan support.
With the signing of Senate Bill 779, California lawmakers rewrote the consequences of violating the Contractors State License Law.
The bill doesn’t add new rules or redefine what’s legal.
Instead, it makes breaking the rules more expensive.
Starting July 1, 2026, the Contractors State License Board (CSLB) will have a much heavier hammer — and for pool and spa professionals, the impact could be immediate and personal.
Under current law, the CSLB can fine unlicensed operators as little as $200, often treated as a cost of doing business by repeat offenders.
SB 779 changes that calculus overnight.
The minimum civil penalty for unlicensed activity jumps to $1,500. Not a maximum. A floor.
Even more significant, the bill establishes new minimum penalties of $1,500 for what the state considers serious violations, including:
• Aiding or abetting an unlicensed
https://thedcapage.blog/2023/07/13/get-to-know-the-contractors-state-license-board/ contractor.
• Contracting with an unlicensed person.
• Falsifying workers’ compensation coverage.
For all other violations, the minimum fine becomes $500, ensuring there’s no longer a “cheap” way to ignore the rules.
SB 779 was authored by Senator Bob Archuleta, a Democrat — but its path through the legislature was emphatically bipartisan. It passed easily through key Senate committees, and the Assembly approved it overwhelmingly.
The primary supporter throughout was the Contractors State License Board (CSLB), which sponsored the bill and pushed it as a consumer protection and fairness policy — not as a revenue grab.
Rebecca May, speaking for the CSLB in committee, explained why the change was needed: “CSLB’s minimum civil penalty amounts are either non-existent or exceedingly low … resulting in administrative law judges frequently and significantly reducing enforcement fines … This undermines the deterrent effect and corrective intent of the civil penalty.”
Senate committee members also voiced strong support, acknowledging that low historical minimums — some as low as $200, unchanged since the early 1990s — simply weren’t enforcing the law in a meaningful way.
California’s new law ties the civil penalty for unlicensed contracting to inflation, an unusual move given that most states do not set inflationadjusted minimums.
Higher penalties do exist in many states, but there is no universal U.S. standard that authorizes inflationlinked minimums like California now does. In that sense, SB 779 puts California on the stricter end of the spectrum for civil enforcement penalties.
Why This Matters to Licensed California Swimming Pool Pros On paper, SB 779 targets bad actors. In reality, it will reshape how everyone in the industry operates.
That’s because licensed pool professionals can find themselves exposed when they sub out work to a helper who isn’t properly licensed, take on small construction tasks outside their classification, or partner with another contractor who turns out to be noncompliant.
Under the new penalty structure, those mistakes are no longer minor.
The bill also authorizes the CSLB to adjust penalties every five years based on the Consumer Price Index, meaning fines won’t quietly erode over time. An inflation-adjustment mechanism is now built into the law.
This is a signal: California intends to make compliance hurt less than noncompliance — permanently.
Lawmakers backing SB 779 were explicit about the goal: deterrence.
Unlicensed contracting doesn’t just undercut legitimate businesses; it creates real consumer harm — incomplete projects, unsafe installations, unpaid workers, and insurance nightmares. Pools and spas, with their mix of structural, electrical, and hydraulic risks, sit right in the danger zone.
By raising minimum penalties instead of maximums, the state limits discretion in the early enforcement stages. Inspectors and judges will have far less room to reduce penalties at the low end.
SB 779 has already been signed by the governor and chaptered into law as Chapter 233, Statutes of 2025. There’s no uncertainty about whether it’s coming — only how prepared contractors will be when it does.
Between now and July 2026, pool and spa businesses would be wise to:
• Reconfirm license classifications.
• Audit subcontractor relationships.
• Verify workers’ compensation coverage.
• Tighten documentation and contracts.
Because once the clock runs out, the era of “we didn’t know” gets very expensive.
The state isn’t changing the rules of the game — it’s changing the consequences of ignoring them.
And for pool and spa professionals who have worked hard to stay licensed, insured, and compliant, that might finally level the playing field.
