California B&P Code: Licensing, Prohibited Acts & Discipline

The California Business and Professions Code is the body of state law that governs licensed professions and regulated commercial activity, from doctors and attorneys to contractors, cosmetologists, and cannabis retailers. It sets who needs a license, what conduct is off-limits, and what penalties apply when the rules are broken. Those penalties range from administrative fines of up to $5,000 per violation to felony charges that carry state prison time.

Who the Code Applies To

If you work in a regulated profession or run a regulated business in California, the code reaches you. That covers licensed professionals such as physicians, lawyers, real estate agents, and contractors, along with industries like automotive repair, private security, and cosmetology. Corporations, partnerships, LLCs, and sole proprietors are all included once their activities fall within a regulated area. People who perform licensed work without the license are also subject to the code, as are out-of-state companies serving California consumers.

Enforcement is spread across dozens of boards and bureaus inside the Department of Consumer Affairs. The Medical Board oversees physicians, the Contractors State License Board handles builders, and the Department of Real Estate regulates brokers and salespersons. Each board runs its own complaint intake and discipline process, but all of them operate under the same statutory framework.¹

Licensing Requirements

The specific requirements vary by profession, but most licenses involve some combination of examinations, verified education, experience, background checks, and fees.

Attorneys must be at least 18, hold a law degree from an accredited or approved school (or complete an equivalent course of study), show good moral character, and pass the California Bar Exam.² Contractors have to demonstrate knowledge and experience in a specific trade classification, pass the licensing exam, and present a qualifying individual to the Contractors State License Board.³ Contractors also need a $25,000 surety bond to obtain or keep their license.⁴

Some industries require permits from specialized agencies on top of (or instead of) a professional license. Selling alcohol requires a license from the Department of Alcoholic Beverage Control, which can refuse to issue one if the applicant has violated the Alcoholic Beverage Control Act or has a disqualifying criminal history.⁵ Cannabis businesses need a permit from the Department of Cannabis Control before any commercial activity. Operating without one carries civil penalties of up to three times the license fee for every day of unlicensed operation.⁶

Licenses expire. Most require periodic renewal, and many professions tie renewal to continuing education. Real estate brokers and salespersons, for example, must complete 45 hours of approved continuing education before each renewal.⁷ Miss a renewal deadline and the license lapses. Reinstatement can mean restarting the application process, and in some fields, retaking exams.

What the Code Prohibits

Three categories drive most enforcement: false advertising, unfair competition, and practicing a regulated profession without a license.

False Advertising

Section 17500 makes it illegal to make or distribute any statement about goods, services, or property that is untrue or misleading when the person knew, or should have known, it was false. It applies across every medium, from print and broadcast to websites, social posts, and verbal pitches. You don’t have to intend to deceive. If a reasonable consumer could be misled and you failed to take reasonable care in checking the claim, you’re exposed.⁸ Courts can also issue injunctions and order the return of money or property lost through deceptive advertising.⁹

Unfair Competition

California’s Unfair Competition Law, Section 17200, is one of the broadest consumer protection statutes in the country. It covers any unlawful, unfair, or fraudulent business practice, along with any deceptive or misleading advertising.¹⁰ Because “unlawful” means a violation of any other law, almost any statutory breach can anchor an unfair competition claim: price-fixing, bait-and-switch schemes, deceptive billing. Prosecutors don’t have to prove a specific consumer was harmed. The conduct itself is enough. Civil penalties reach $2,500 per violation, with courts weighing the seriousness of the misconduct, the number of violations, how long the behavior continued, and whether it was intentional.¹¹

Unlicensed Practice

Working in a regulated field without a current license is one of the most aggressively pursued violations. The penalty depends on the profession. Practicing medicine without a license is a public offense carrying up to $10,000 in fines, up to a year in county jail, or state prison time.¹² Practicing law without being an active State Bar member is a misdemeanor with up to a year in jail and a $1,000 fine. A second conviction triggers a mandatory 90-day minimum, and a disbarred or suspended attorney who keeps practicing can face state prison.¹³

Unlicensed contracting carries one of the most unforgiving civil consequences in the code. Any customer who hired an unlicensed contractor can sue to recover every dollar they paid. The contractor has no right to keep compensation for work performed without a license, regardless of how well the job was done.¹⁴

Penalties at a Glance

False advertising: Misdemeanor, up to six months in county jail, up to a $2,500 fine, or both, plus possible restitution and injunctions.⁸⁹
Unfair competition: Civil penalties up to $2,500 per violation, brought by the Attorney General, a district attorney, or certain city attorneys.¹¹
Unlicensed contracting, first offense: Up to $5,000 fine and up to six months in jail.¹⁵
Unlicensed contracting, second offense: Fine of 20% of the contract price or $5,000, whichever is greater, plus a 90-day mandatory jail minimum.¹⁵
Unlicensed contracting, third or later: Fine of $5,000 up to the greater of $10,000 or 20% of the contract price, plus 90 days to a year in jail.¹⁵
Unauthorized practice of law: Misdemeanor, up to a year in jail and a $1,000 fine; a second offense triggers a 90-day mandatory minimum; a disbarred attorney who continues practicing can face state prison.¹³
Unlicensed medical practice: Up to $10,000 fine, up to a year in county jail, or state prison.¹²
Selling alcohol without a license: A misdemeanor in most cases; operating an unlicensed still is a felony.¹⁶
Unlicensed cannabis activity: Civil penalty up to three times the license fee per violation, with each day counted separately.⁶
Administrative citations: Licensing boards can fine licensees up to $5,000 per inspection or investigation for violations of their licensing act.¹⁷

Repeat offenders and participants in large-scale fraud face enhanced penalties, including asset forfeiture and permanent restrictions on business activity. Courts regularly order restitution to victims on top of fines and jail time.

Investigations and Discipline

Enforcement generally starts at the board level, triggered by consumer complaints, referrals from other agencies, audits, or sting operations. Investigators can inspect business premises, interview witnesses, subpoena records, and work alongside law enforcement. Minor violations may end with an administrative citation and fine rather than full disciplinary proceedings. More serious cases get referred up, sometimes to the Attorney General’s office for criminal prosecution.

When a board substantiates a violation, it can place a license on probation (sometimes with conditions like ethics training or supervision), suspend it, revoke it, or impose an administrative fine of up to $5,000 per inspection or investigation. The amount depends on the gravity of the violation, the licensee’s good faith, and their history.¹⁷

If a board files a formal accusation, you have the right to contest it at an administrative hearing before an administrative law judge, under the Administrative Procedure Act. The standard is preponderance of the evidence, meaning the board must show it is more likely than not that the violation occurred.¹⁸ In urgent cases where continued practice would endanger the public, a board or administrative law judge can issue an interim suspension order that halts practice before the full hearing.¹⁹

Criminal Records and License Eligibility

A criminal conviction doesn’t automatically disqualify you. A board may deny a license based on a conviction only if the crime occurred within the past seven years and is substantially related to the duties of the profession. Older convictions generally cannot be the basis for denial.²⁰

Two exceptions override the seven-year window: serious felonies as defined in the Penal Code, including sex offenses requiring registration, and financial crimes classified as felonies that directly relate to fiduciary duties in professions like contracting, real estate, and private investigation. A board also cannot deny based on a conviction that has been dismissed or expunged, and applicants with a certificate of rehabilitation or a pardon are protected.²⁰

Separate grounds for denial include making a knowingly false statement on the application, committing fraud or dishonesty intended to benefit yourself or harm another, or committing an act that would be grounds for discipline if you were already licensed.²¹

Verifying a License or Filing a Complaint

If you think a business or professional is violating the code, you can file a complaint through the Department of Consumer Affairs, which routes it to the appropriate board. The department also runs a public license verification tool that lets you confirm whether someone holds an active, valid license.¹ Checking a contractor’s status with the Contractors State License Board or a doctor’s credentials with the Medical Board before you hire is one of the simplest protections available. If someone won’t give you a license number, treat that as a warning.

1
Department of Consumer Affairs. Department of Consumer Affairs
2
California Legislative Information. California Code BPC 6060 – Admission to Practice Law
3
California Legislative Information. California Code BPC 7068 – Contractor Qualifications
4
Contractors State License Board. Bond Requirements
5
Alcoholic Beverage Control. Licensing Information
6
California Legislative Information. California Code BPC 26038 – Unlawful Cannabis Activity
7
Department of Real Estate. Continuing Education Requirements
8
California Legislative Information. California Code BPC 17500 – False Advertising
9
California Legislative Information. California Code BPC 17535 – Injunctive Relief
10
California Legislative Information. California Code BPC 17200 – Unfair Competition Defined
11
California Legislative Information. California Code BPC 17206 – Civil Penalties
12
California Legislative Information. California Code BPC 2052 – Unlicensed Practice of Medicine
13
California Legislative Information. California Code BPC 6126 – Unauthorized Practice of Law
14
California Legislative Information. California Code BPC 7031 – Recovery of Compensation
15
California Legislative Information. California Code BPC 7028 – Contracting Without a License
16
California Legislative Information. California Code BPC 23301 – Penalties for Selling Without a License
17
California Legislative Information. California Code BPC 125.9 – Citations and Fines
18
Legal Information Institute. 4 CCR 12554 – Formal Hearing Process
19
California Legislative Information. California Code BPC 494 – Interim Suspension Orders
20
California Legislative Information. California Code BPC 480 – Criminal Conviction and License Denial
21
California Legislative Information. California Code BPC 475 – Grounds for License Denial