Cal. Bus. & Prof. Code § 8663

(a) This section only applies to work conducted under a Branch 1 license.
(b) A copy of a notice of violation issued for any violation committed by a subcontractor shall be sent to the prime contractor responsible for the work by the issuing authority within 30 days from the date the violation was committed or discovered. In circumstances where the violation is classified as serious or moderate, notification shall be performed by certified mail with a return receipt requested.
(c) The board or county agricultural commissioners, when acting pursuant to Section 8616.4, may levy a fine of up to five thousand dollars ($5,000) against a registered company acting as a prime contractor for any serious or moderate violation committed by any licensee with whom the prime contractor has subcontracted if, before that violation occurred, the prime contractor had been notified by certified mail, return receipt requested, of two or more serious or moderate violations committed by that subcontractor within 12 consecutive months.
Fines collected pursuant to this section shall be paid to the Education and Enforcement Account in the Structural Pest Control Education and Enforcement Fund.
(d) For purposes of this section, “serious or moderate” violation includes, but is not limited to, a violation of any of the following provisions of this code or of the California Code of Regulations that poses a serious hazard to humans:
1. (1) A violation of subdivision (a) or (b) of Section 1970.4 of Title 16 of, or Section 6454 of Title 3 of, the California Code of Regulations, or a violation of Section 8505.5.
2. (2) Any violation of the structural pest control law that results in a serious injury to any person.
3. (3) A violation of Section 8505.2 or 8505.3, relating to direct and personal supervision.
4. (4) A violation of Section 8505.7, relating to vacating and securing structures.
5. (5) A violation of Section 6780 of Title 3 of the California Code of Regulations.
6. (6) A violation of Section 6454 of Title 3 of the California Code of Regulations.
7. (7) A violation of Section 8505.12, relating to warning agents.
8. (8) A violation of Section 8505.9 or 8505.10, relating to warning signs.
(e) Notwithstanding subdivision (c), a prime contractor may be fined for a subcontractor’s first violation for failing to have a signed Occupants Fumigation Notice, pursuant to Section 1970.4 of Title 16 of the California Code of Regulations, on the premises being treated, or for failure to provide advance notice of a fumigation pursuant to Section 8538 to the occupants of the premises being treated.