Storm contractor rules in California: Penal Code 396, the US$1,000 licence line and the C-49 tree and palm classification
California's Attorney General explains the anti-price gouging statute, Penal Code section 396, and the Contractors State License Board publishes the licence, contract and down payment rules for disaster work. This page restates those pages and the board's tree and palm classification as they were read on October 9, 2026.
Checked against the sources at the bottom of this page on October 9, 2026. Rules, fees and pay change: the source has the last word.
This page reports what the official source says. It is not legal advice: ask the office named here. The wider picture is on the storm contractor rules page. The Attorney General page and the board pages are explanations by the offices, not the statute text. The board page on disaster rebuilding was written after the 2025 Los Angeles County wildfires, and says the rules apply to home improvement projects generally.
The sources in one table
| Source | What it says |
|---|---|
| Attorney General, Penal Code 396 | The statute applies right after the President, the Governor or a city or county executive officer declares a state of emergency from a disaster such as an earthquake, flood, fire, riot or storm. It generally bars raising the price of many goods and services by more than 10 percent. For an item or service first offered after the declaration, the limit is 50 percent over the seller's cost |
| Attorney General, covered services | The covered list includes goods and services used for emergency cleanup, building materials, and repair and reconstruction services. Protections generally run 30 days after a declaration, and 180 days for reconstruction and emergency cleanup services. The legislature and local officials may extend them |
| Attorney General, defence and penalty | A seller who proves the higher price comes directly from increased labour or materials costs may not be liable. Violations can bring up to one year in county jail and a fine of up to US$10,000, plus civil penalties of up to US$2,500 per violation in the consumer questions and US$5,000 per violation in the local officials' questions on the same page, injunctions and restitution |
| Board, disaster warning | Contractors working on a job, from debris removal to rebuilding, totalling US$1,000 or more for labour and materials must be licensed by the board. A project under US$1,000 that needs workers or permits requires a licence in the proper classification. The page says not to pay more than 10 percent down or US$1,000, whichever is less |
| Board, Disaster Help Center | Rebuilding after a declared disaster is treated as home improvement. Contractors must use a fixed-price contract, not "time and materials" or "cost plus". They may not ask for or accept a down payment of more than US$1,000 or 10 percent of the contract price, whichever is less. Other payments must be listed in the contract and tied to work completed or materials delivered |
| Board, C-49 classification | A tree and palm contractor plants, maintains and removes trees and palms, including pruning, stump grinding, and tree, palm or limb guying. The regulation says a licence is not required for incidental pruning of trees or guying of planted trees by a nurseryperson, or incidental pruning by a gardener as described in Business and Professions Code section 7026.1 |
Price rule
The statute has two prices to compare. Where the seller sold the item before the declaration, the base is the seller's own price and the limit is 10 percent above it. Where the seller did not, the limit is 50 percent above what it cost the seller. The Attorney General page lists emergency cleanup goods and services and repair and reconstruction services by name. It does not name tree work. The 180-day window for cleanup and reconstruction is longer than the 30-day window for the other items.
Licence rules
California's licence list includes a tree classification. The C-49 text above defines the trade as planting, maintaining and removing trees and palms, and sets two carve-outs for incidental work by a nurseryperson and a gardener. The board page on disasters gives the US$1,000 line. How the C-49 definition and the US$1,000 line apply to a particular storm job is a question for the Contractors State License Board. The classification page cites Business and Professions Code sections 7058 and 7059 as the reference. For how other states treat tree work, see contractor licences for tree work. The scam warnings that attorneys general issue after storms are on the storm tree scams page.
Sources
- California Department of Justice, Office of the Attorney General, FAQs on Price Gouging, read October 9, 2026
- Contractors State License Board, A Warning to Consumers About Unlicensed Contractors After Disasters, read October 9, 2026
- Contractors State License Board, Disaster Help Center, read October 9, 2026
- Contractors State License Board, Licensing Classifications Detail, C-49 Tree and Palm Contractor, read October 9, 2026