Section 20103.5 Of Article 1. Title From California Public Contract Code >> Division 2. >> Part 3. >> Chapter 1. >> Article 1.
20103.5
. In all contracts subject to this part where federal funds
are involved, no bid submitted shall be invalidated by the failure of
the bidder to be licensed in accordance with the laws of this state.
However, at the time the contract is awarded, the contractor shall
be properly licensed in accordance with the laws of this state. The
first payment for work or material under any contract shall not be
made unless and until the Registrar of Contractors verifies to the
agency that the records of the Contractors' State License Board
indicate that the contractor was properly licensed at the time the
contract was awarded. Any bidder or contractor not so licensed shall
be subject to all legal penalties imposed by law, including, but not
limited to, any appropriate disciplinary action by the Contractors'
State License Board. The agency shall include a statement to that
effect in the standard form of prequalification questionnaire and
financial statement. Failure of the bidder to obtain proper and
adequate licensing for an award of a contract shall constitute a
failure to execute the contract and shall result in the forfeiture of
the security of the bidder.