SB 1165: Contractor licenses: outstanding liabilities assessed by the California Department of Tax and Fee Administration.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 17, 2026Chaptered by Secretary of State. Chapter 111, Statutes of 2026.
2. August 17, 2026Approved by the Governor.
3. August 11, 2026Enrolled and presented to the Governor at 3 p.m.
4. August 6, 2026In Senate. Ordered to engrossing and enrolling.
5. August 6, 2026Read third time. Passed. (Ayes 76. Noes 0. Page 6080.) Ordered to the Senate.
6. July 2, 2026Read second time. Ordered to third reading.
7. July 1, 2026From committee: Do pass. (Ayes 11. Noes 0.) (July 1).
8. June 23, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 22). Re-referred to Com. on APPR.
9. June 16, 2026From committee: Do pass and re-refer to Com. on REV. & TAX. with recommendation: To consent calendar. (Ayes 17. Noes 0.) (June 16). Re-referred to Com. on REV. & TAX.
10. May 18, 2026Referred to Coms. on B. & P. and REV. & TAX.
11. May 7, 2026In Assembly. Read first time. Held at Desk.
12. May 7, 2026Read third time. Passed. (Ayes 36. Noes 0. Page 4167.) Ordered to the Assembly.