Sharpe

BACKGROUND

A.

Under California law, persons engaged in, or offering to engage in, structural pest control are generally required to obtain licenses from the Board. (§ 8550; Merrifield v. Lockyer (9th Cir. 2008) 547 F.3d 978, 980.) Corporations similarly engaged are required to register with the Board. (§§ 8514, subd. (c), 8550, subds. (b), (e), 8610, subd. (a).)

B.

In June 2018, Precise successfully bid on a contract to perform structural pest control work for the United States Department of Veteran Affairs (the department) at its facilities in California.

The department required Precise and any personnel be licensed in California before beginning work under the contract. At the time Precise was awarded the contract, neither Sharpe nor Precise held California licenses to perform structural pest control.

In early July 2018, Precise began performing the contracted pest control work—using subcontracted local pest control companies—at the department’s California facilities. About two weeks later, the Board sent Sharpe and Precise a “cease and desist” letter. The Board directed Sharpe and Precise to stop pest control operations until they were properly licensed and registered, as…