I haven't done any residential projects in years, so I'm not sure, but I think this is still in effect. If a B License Holder (General Contractor) goes into Building and Safety to pull permits on residential, all he has to do is sign an affdavit that he is doing more than 2 trades (not including rough carpentry or finish carpentry) and he can pull all the permits (elec., plumbing, A/C, etc.) and get all the inspections, without hiring any specialty subs. And most cities have "combi" inspectors that look at all trades' work at each phase of work (UG, slab, rough, final).
But CA is going thru 10 years of "certifying" electricians. We are the first trade to be required to be certified. Back in 99 they said electriciain were the first (due the dangers possible if work was not up to code), then the plumbers and HVAC trades would be next. 10 years later and the state is barely up and running on making elec. certification a reality, with enforcement.
Yet there are no safeguards for the consumer who is "serviced" in a scenario like the OP laid out.
And the "they get what they deserve" opinion doesn't keep the kids from getting electrocuted in their own home/pool.
I don't know how you can ignore the big picture like this.
Wow. You are obviously well informed on what goes on here in California! I thought I was all alone in my disgust of the CSLB and California construction. Here are my complaints:
1. WTF is this $500 license exemption? No license needed if the job is under $500. This is why there are 1.2 million unlicensed contractors in California and 330,000 licensed.
2. GCs can do electrical wiring if they paint and patch afterwords. (the 2 additional trades exemption) I see GCs advertising electrical work every day.
3. The law requiring unlicensed contractors to declare their unlicensed status in all advertising was rescinded in 2005. How does this serve the public good?
4. I dare anybody to call the CSLB and speak to a real person, it's impossible. Ever try to report unlicensed activity? They need the unlicensed contractor's name, address and phone number or they will reject the complaint form. How to you get that info? "Hey amigo, un momento por favor, I'm reporting you to the CSLB, como se llama usted?"
5. Certifying electricians? This is the weirdest law ever. The law says "any person performing electrical work and in the employ of an electrical (c-10) contractor must be certified". Yet anybody doing electrical work for a GC or a school or hospital need not be certified. Also, there is no penalty for violating this law, and it seems that the obligation to comply is not with the EC, but with the electrician. Anyway, to become certified you pay $175 and take a VERY easy, OPEN book code test that is pretty much chapter 3 of the NEC. Then your name, address and phone number is put on a list and distributed to the IBEW so they can get intel on non union shops. This is a scam from top to bottom.
6. Certified Electricians, Part 2. Now that thousands of electricians are "State Certified", they are advertising on Craigslist, Google Adwords, etc and now are in direct competition with "Licensed Contractors". It was bad enough when we had to compete against unlicensed contractors but now, thanks to the State Of California, we now have to compete against "State Certified" electricians. The public sees ads for "State Certified" electricians and assumes they are licensed contractors. These "State Certified" electricians do jobs in excess of the arbitrary "$500 no-license" limit but since they do not use written contracts and are typically paid in cash, they fly under the radar.
It's gotten to the point that having an electrical contractors license is no longer a requirement to run an electrical business in California.