BILL NUMBER: SB 1914 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Business and Professions (Senators
Figueroa (Chair), Brulte, Cedillo, Machado, Murray, and Vincent)
MARCH 17, 2004
An act to amend Sections 7011.4, 7028.1, 7048, 7068, 7071.9,
7071.11, 7083, 7085, 7090.1, 7121, 7137, 8024, 8024.1, 8024.2, and
8027 of, and to repeal Sections 7019.5, 7021, and 7124.5 of, the
Business and Professions Code, relating to professions and vocations.
LEGISLATIVE COUNSEL'S DIGEST
SB 1914, as introduced, Committee on Business and Professions.
Contractors: court reporters.
(1) Existing law, the Contractors' State License Law, creates the
Contractors' State License Board within the Department of Consumer
Affairs and provides for the licensure and regulation of contractors.
Existing law requires the board to conduct certain studies and
reviews. Existing law requires an unlicensed person engaging in a
project under $500 to give notice to the consumer regarding his or
her nonlicensee status. Existing law prohibits an applicant for
licensure convicted of certain acts from applying for licensure for a
one year period following the conviction. Existing law allows a
30-day grace period for a delinquency fee, with regards to delinquent
application for a license. Existing law requires a copy of a
complaint in a civil action against a contractor's bond to be served
on the register of the clerk of court, who must maintain a record.
Existing law prohibits the board from making public disclosure of
complaints against a licensee, except as specified.
This bill would delete these provisions and requirements.
Existing law requires a qualifying individual to file a bond in
the amount of $7,500.
This bill would, on and after January 1, 2007, require the bond
amount to be $12,500. The bill would also establish the aggregate
surety on claims brought against the bond at an amount of $7,500.
Existing law provides for a contractor's licensure examination,
and exempts certain persons from the examination. Existing law
requires contractors changing certain information, including business
name or address, to notify the registrar within 90 days of the
change. Existing law makes employment of certain person who have
been denied a license or had action taken against their license, or
the license of an entity that they were associated with, grounds for
disciplinary action.
This bill would revise the conditions for exemption from
licensure. The bill would require notice of a change in information
to be given on a form prescribed by the registrar. The bill would
exempt employment as a bona fide employee from the disciplinary
action provisions related to employing persons who have been denied
or had action taken against their license or the license of an entity
they were associated with.
(2) Existing law provides for the certification and regulation of
shorthand reporters by the Court Reporters Board of California in the
Department of Consumer Affairs. Existing law requires the payment
of an initial certification fee prior to certification. Existing law
also requires a certificate holder applying for renewal to meet
requirements that include notifying the board if he or she has been
convicted of a misdemeanor substantially related to the functions and
duties of a court reporter.
This bill would authorize the board to issue an interim permit of
specified duration to a candidate eligible for certification, prior
to receipt of the initial certification fee. The bill would also
require a certificate holder applying for renewal to notify the board
if he or she has been convicted of any misdemeanor.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7011.4 of the Business and Professions Code is
amended to read:
7011.4. (a) Notwithstanding Section 7011, there is in the
Contractors' State License Board, a separate enforcement unit which
shall rigorously enforce this chapter prohibiting all forms of
unlicensed activity.
(b) Persons employed as deputy registrars
enforcement representatives in this unit and designated by the
Director of Consumer Affairs are not peace officers and are not
entitled to safety member retirement benefits. They do not have the
power of arrest. However, they may issue a written notice to appear
in court pursuant to Chapter 5c (commencing with Section 853.5) of
Title 3 of Part 2 of the Penal Code.
SEC. 2. Section 7019.5 of the Business and Professions Code is
repealed.
7019.5. The board shall contract for a feasibility study relating
to the development of a system for joint enforcement actions with
respect to contractors by the board, the Department of Industrial
Relations, the Employment Development Department, and the Franchise
Tax Board. The study should include, but not be limited to, the
means of accomplishing the following:
(a) Establishment of a common identification number which may be
utilized by all those agencies.
(b) Assessment of the current state of technology in the affected
departments.
(c) Assessment of the ability, and any impediments, of the
affected departments to share information.
(d) Comparison of the standards of proof in the issuance of
citations and other administrative enforcement actions.
(e) Ways to consolidate enforcement actions and procedures among
the departments.
SEC. 3. Section 7021 of the Business and Professions Code is
repealed.
7021. The board shall conduct the following studies and reviews,
and shall report to the department and the Legislature no later than
October 1, 2001.
(a) The board shall conduct a comprehensive study of the issues
surrounding home improvement contracts that involve home equity
lending fraud and scams, and provide recommendations to deal with
this problem.
(b) The board shall conduct a comprehensive study of its
reorganization ("reengineering") plan to restructure intake,
mediation, and investigation services, and evaluate the impact this
effort has had on consumer and industry access to board staff, its
ability to reduce timeframes for complaint processing and
investigations, increasing mediations, investigations, and legal
actions, productivity of staff, and overall costs to the board.
(c) The board shall conduct a comprehensive study and review of
recovery fund programs in California and other states which provide
compensation to consumers for financial injury caused by a licensed
professional. It should evaluate the effectiveness of these programs
and whether such a recovery fund could benefit consumers who are
harmed as a result of contractor fraud, poor workmanship,
malfeasance, abandonment, failure to perform, or other illegal acts.
(d) The board shall conduct a comprehensive study in consultation
with the Department of Insurance, on the use of surety bonds to
compensate homeowners for financial injury sustained as a result of a
contractor's fraud, poor workmanship, malfeasance, abandonment,
failure to perform, or other illegal acts. This study shall include
consideration of the payout criteria of bonds, increasing the bond
amount, a "step-bonding" approach based on the amount of the prime
contract, and the requirement of performance or payment bonds. This
study shall additionally consider whether to require contractors to
carry general liability insurance and whether to establish a
guarantee program in order to provide the appropriate insurance and
bond coverage in connection with a homeowner's employment of a
contractor.
(e) The board shall review its current disclosure policy and
provide recommended changes.
SEC. 4. Section 7028.1 of the Business and Professions Code is
amended to read:
7028.1. It is a misdemeanor for any contractor , whether
licensed or unlicensed, to perform or engage in
asbestos-related work, as defined in Section 6501.8 of the Labor
Code, without certification pursuant to Section 7058.5 of this code,
or to perform or engage in a removal or remedial action, as defined
in subdivision (d) of Section 7058.7, or, unless otherwise exempted
by this chapter, to bid for the installation or removal of, or to
install or remove, an underground storage tank, without certification
pursuant to Section 7058.7. A contractor in violation of this
section is subject to one of the following penalties:
(a) Conviction of a first offense is punishable by a fine of not
less than one thousand dollars ($1,000) or more than three thousand
dollars ($3,000), and by possible revocation or suspension of any
contractor's license.
(b) Conviction of a subsequent offense requires a fine of not less
than three thousand dollars ($3,000) or more than five thousand
dollars ($5,000), or imprisonment in the county jail not exceeding
one year, or both the fine and imprisonment, and a mandatory action
to suspend or revoke any contractor's license.
SEC. 5. Section 7048 of the Business and Professions Code is
amended to read:
7048. (a) This chapter does not apply to any
work or operation on one undertaking or project by one or more
contracts, the aggregate contract price which for labor, materials,
and all other items, is less than five hundred dollars ($500), that
work or operations being considered of casual, minor, or
inconsequential nature.
This exemption does not apply in any case wherein the work of
construction is only a part of a larger or major operation, whether
undertaken by the same or a different contractor, or in which a
division of the operation is made in contracts of amounts less than
five hundred dollars ($500) for the purpose of evasion of this
chapter or otherwise.
This exemption does not apply to a person who advertises or puts
out any sign or card or other device which might indicate to the
public that he or she is a contractor or that he or she is qualified
to engage in the business of a contractor.
(b) Any person performing work costing less than five hundred
dollars ($500) who is not licensed under this chapter shall disclose
to the purchaser of the work the fact that he or she is not licensed
by the Contractors' State License Board.
At the time of making a bid or prior to entering into a contract
to perform work for less than five hundred dollars ($500), whichever
occurs first, the person performing the work shall provide the
following notice in capital letters in at least 10-point roman
boldface type or in contrasting red print in at least 8-point roman
boldface type:
"I, (individual's name), AM NOT LICENSED BY THE CONTRACTORS' STATE
LICENSE BOARD.
STATE LAW REQUIRES ANYONE WHO CONTRACTS TO DO CONSTRUCTION WORK TO BE
LICENSED BY THE CONTRACTORS' STATE LICENSE BOARD IN THE LICENSE
CATEGORY IN WHICH THE CONTRACTOR IS GOING TO BE WORKING--IF THE TOTAL
PRICE OF THE JOB IS $500 OR MORE (INCLUDING LABOR AND MATERIALS).
LICENSED CONTRACTORS ARE REGULATED BY LAWS DESIGNED TO PROTECT THE
PUBLIC. IF YOU CONTRACT WITH SOMEONE WHO DOES NOT HAVE A LICENSE,
THE CONTRACTORS' STATE LICENSE BOARD MAY BE UNABLE TO ASSIST YOU WITH
A COMPLAINT. YOUR ONLY REMEDY AGAINST AN UNLICENSED CONTRACTOR MAY
BE IN CIVIL COURT, AND YOU MAY BE LIABLE FOR DAMAGES ARISING OUT OF
ANY INJURIES TO THE CONTRACTOR OR HIS OR HER EMPLOYEES."
The person performing the work shall maintain for four years a
copy of the above notice signed by the purchaser of the work
acknowledging receipt of this notice.
The exemption provided by this section does not apply to any
person failing to provide the required notice to the purchaser of the
work.
This notice need only be provided once to the same purchaser of
subsequent work.
SEC. 6. Section 7068 of the Business and Professions Code is
amended to read:
7068. (a) The board shall require an applicant to show such
degree of knowledge and experience in the classification applied for,
and such general knowledge of the building, safety, health, and lien
laws of the state and of the administrative principles of the
contracting business as the board deems necessary for the safety and
protection of the public.
(b) An applicant shall qualify in regard to his or her experience
and knowledge in one of the following ways:
(1) If an individual, he or she shall qualify by personal
appearance or by the appearance of his or her responsible managing
employee who is qualified for the same license classification as the
classification being applied for.
(2) If a copartnership or a limited partnership, it shall qualify
by the appearance of a general partner or by the appearance of a
responsible managing employee who is qualified for the same license
classification as the classification being applied for.
(3) If a corporation, or any other combination or organization, it
shall qualify by the appearance of a responsible managing officer or
responsible managing employee who is qualified for the same license
classification as the classification being applied for.
(c) An applicant who has been convicted of a violation of
Section 7028 may not apply for a license for a one-year period from
the date of conviction. Upon submittal of an application the
applicant shall be subject to Section 7071.6.
(d) A responsible managing employee for the purpose of
this chapter shall mean an individual who is a bona fide employee of
the applicant and is actively engaged in the classification of work
for which that responsible managing employee is the qualifying person
in behalf of the applicant.
(e)
(d) The board shall, in addition, require an applicant who
qualifies by means of a responsible managing employee under either
paragraph (1) or (2) of subdivision (b) to show his or her general
knowledge of the building, safety, health, and lien laws of the state
and of the administrative principles of the contracting business as
the board deems necessary for the safety and protection of the
public.
(f)
(e) Except in accordance with Section 7068.1, no person
qualifying on behalf of an individual or firm under paragraph (1),
(2), or (3) of subdivision (b) shall hold any other active contractor'
s license while acting in the capacity of a qualifying individual
pursuant to this section.
(g)
(f) At the time of application for renewal of a license, the
responsible managing individual shall file a statement with the
registrar, on a form prescribed by the registrar, verifying his or
her capacity as a responsible managing individual to the licensee.
(h)
(g) Statements made by or on behalf of an applicant as to
the applicant's experience in the classification applied for shall be
verified by a qualified and responsible person. In addition, the
registrar shall, as specified by board regulation, randomly review a
percentage of such statements for their veracity.
(i)
(h) The registrar shall review experience gained by
applicants from other states to determine whether all of that
experience was gained in a lawful manner in that state.
SEC. 7. Section 7071.9 of the Business and Professions Code is
amended to read:
7071.9. (a) If the qualifying individual, as referred to in
Sections 7068 and 7068.1, is not either the proprietor, a general
partner, or joint licensee, he or she shall file or have on file a
qualifying individual's bond as provided in Section 7071.10 in the
sum of seven thousand five hundred dollars ($7,500). This bond is
in addition to, and may not be combined with, any contractor's bond
required by Sections 7071.5 to 7071.8, inclusive, and is required for
the issuance, reinstatement, reactivation, or continued valid use of
a license. However, on and after January 1, 2007, the sum of
the bond that a qualifying individual is required to have on file
shall be twelve thousand five hundred dollars ($12,500).
(b) Excluding the claims brought by the beneficiaries
specified in paragraph (1) of subdivision (a) of Section 7071.10, the
aggregate liability of a surety on claims brought against the bond
required by this section shall not exceed the sum of seven thousand
five hundred dollars ($7,500). The bond proceeds in excess of seven
thousand five hundred dollars ($7,500) shall be reserved exclusively
for the claims of the beneficiaries specified in paragraph (1) of
subdivision (a) of Section 7071.10. However, nothing in this section
shall be construed to prevent any beneficiary specified in paragraph
(1) of subdivision (a) of Section 7071.10 from claiming or
recovering the full measure of the bond required by this section.
This bond is in addition to, and may not be combined with, any
contractor's bond required by Sections 7071.5 to 7071.8, inclusive,
and is required for the issuance, reinstatement, reactivation, or
continued valid use of a license.
(c) The responsible managing officer of a corporation shall
not be required to file or have on file a qualifying individual's
bond, if he or she owns 10 percent or more of the voting stock of the
corporation and certifies to that fact on a form prescribed by the
registrar.
SEC. 8. Section 7071.11 of the Business and Professions Code is
amended to read:
7071.11. (a) A copy of the complaint in a civil action
commenced by a person claiming against a bond required by this
article shall be served by registered or certified mail upon the
registrar by the clerk of the court at the time the action is
commenced and the registrar shall maintain a record, available for
public inspection, of all actions so commenced. The
aggregate liability of a surety on a claim for wages and fringe
benefits brought against any bond required by this article, other
than a bond required by Section 7071.8, shall not exceed the sum of
four thousand dollars ($4,000). If any bond which may be required is
insufficient to pay all claims in full, the sum of the bond shall be
distributed to all claimants in proportion to the amount of their
respective claims. Any action, other than an action to recover wages
or fringe benefits, against a contractor's bond or a bond of a
qualifying individual filed by an active licensee shall be brought
within two years after the expiration of the license period during
which the act or omission occurred, or within two years of the date
the license of the active licensee was inactivated, canceled, or
revoked by the board, whichever first occurs. Any action, other than
an action to recover wages or fringe benefits, against a
disciplinary bond filed by an active licensee pursuant to Section
7071.8 shall be brought within two years after the expiration of the
license period during which the act or omission occurred, or within
two years of the date the license of the active licensee was
inactivated, canceled, or revoked by the board, or within two years
after the last date for which a disciplinary bond filed pursuant to
Section 7071.8 was required, whichever date is first. A claim to
recover wages or fringe benefits shall be brought within six months
from the date that the wage or fringe benefit delinquencies were
discovered, but in no event shall a civil action thereon be brought
later than two years from the date the wage or fringe benefit
contributions were due.
(b) Whenever the surety makes payment on any claim against a bond
required by this article, whether or not payment is made through a
court action or otherwise, the surety shall, within 30 days of the
payment, provide notice to the registrar. The notice required by
this subdivision shall provide the following information by
declaration on a form prescribed by the registrar:
(1) The name and license number of the contractor.
(2) The surety bond number.
(3) The amount of payment.
(4) The statutory basis upon which the claim is made.
(5) The names of the person or persons to whom payments have been
made.
(6) Whether or not the payments were the result of a good faith
action by the surety.
The notice shall also clearly indicate whether or not the licensee
filed a protest in accordance with this section.
(c) Prior to the settlement of a claim through a good faith
payment by the surety, a licensee shall have not less than 15 days in
which to provide a written protest. This protest shall instruct the
surety not to make payment from the bond on the licensee's account
upon the specific grounds that the claim is opposed by the licensee,
and provide the surety a specific and reasonable basis for the
licensee's opposition to payment.
(1) Whenever a licensee files a protest in accordance with this
subdivision, the board shall investigate the matter and file
disciplinary action as set forth under this chapter if there is
evidence that the surety has sustained a loss as the result of a good
faith payment made for the purpose of mitigating any damages
incurred by any person or entity covered under Section 7071.5.
(2) Any licensee that fails to file a protest as specified in this
subdivision shall have 90 days from the date of notification by the
board to submit proof of payment of the actual amount owed to the
surety and, if applicable, proof of payment of any judgement or
admitted claim in excess of the amount of the bond or, by operation
of law, the license shall be suspended at the end of the 90 days. A
license suspension pursuant to this subdivision shall be disclosed
indefinitely as a failure to settle outstanding final liabilities in
violation of this chapter. The disclosure specified by this
subdivision shall also be applicable to all licenses covered by the
provisions of subdivision (d).
(d) No license may be renewed, reissued, or reinstated while any
judgment or admitted claim in excess of the amount of the bond
remains unsatisfied. Further, no license may be renewed, reissued,
or reinstated while any surety remains unreimbursed for any loss or
expense sustained on any bond issued for the licensee or for any
entity of which any officer, director, member, partner, or qualifying
person was an officer, director, member, partner, or qualifying
person of the licensee while the licensee was subject to suspension
or disciplinary action under this section.
(e) The licensee may provide the board with a notarized copy of an
accord, reached with the surety to satisfy the debt in lieu of full
payment. By operation of law, failure to abide by the accord shall
result in the automatic suspension of any license to which this
section applies. A license that is suspended for failure to abide by
the accord may only be renewed or reinstated when proof of
satisfaction of all debts is made.
(f) Legal fees may not be charged against the bond by the board.
(g) In any case in which a claim is filed against a deposit given
in lieu of a bond by any employee or by an employee organization on
behalf of an employee, concerning wages or fringe benefits based upon
the employee's employment, claims for the nonpayment shall be filed
with the Labor Commissioner. The Labor Commissioner shall, pursuant
to the authority vested by Section 96.5 of the Labor Code, conduct
hearings to determine whether or not the wages or fringe benefits
should be paid to the complainant. Upon a finding by the
commissioner that the wages or fringe benefits should be paid to the
complainant, the commissioner shall notify the registrar of the
findings. The registrar shall not make payment from the deposit on
the basis of findings by the commissioner for a period of 10 days
following determination of the findings. If, within the period, the
complainant or the contractor files written notice with the registrar
and the commissioner of an intention to seek judicial review of the
findings pursuant to Section 11523 of the Government Code, the
registrar shall not make payment, if an action is actually filed,
except as determined by the court. If, thereafter, no action is
filed within 60 days following determination of findings by the
commissioner, the registrar shall make payment from the deposit to
the complainant.
(h) Any action, other than an action to recover wages or fringe
benefits, against a deposit given in lieu of a contractor's bond or
bond of a qualifying individual filed by an active licensee shall be
brought within three years after the expiration of the license period
during which the act or omission occurred, or within three years
after the date the license was inactivated, canceled, or revoked by
the board, whichever first occurs. Any action, other than an action
to recover wages or fringe benefits, against a deposit given in lieu
of a disciplinary bond filed by an active licensee pursuant to
Section 7071.8 shall be brought within three years after the
expiration of the license period during which the act or omission
occurred, or within three years of the date the license of the active
licensee was inactivated, canceled, or revoked by the board, or
within three years after the last date for which a deposit given in
lieu of a disciplinary bond filed pursuant to Section 7071.8 was
required, whichever date is first. If the board is notified of a
complaint relative to a claim against the deposit, the deposit shall
not be released until the complaint has been adjudicated.
SEC. 9. Section 7083 of the Business and Professions Code is
amended to read:
7083. All licensees shall notify the registrar , on a form
prescribed by the registrar, in writing within 90 days of any
change to information recorded under this chapter. This notification
requirement shall include, but not be limited to, changes in
business address, personnel, business name, qualifying
individual bond exemption pursuant to Section 7071.9, or exemption to
qualify multiple licenses pursuant to Section 7068.1.
Failure of the licensee to notify the registrar of any change to
information within 90 days shall cause the change to be effective the
date the written notification is received at the board's
headquarters office.
Failure to notify the registrar of the changes within the 90 days
is grounds for disciplinary action.
SEC. 10. Section 7085 of the Business and Professions Code is
amended to read:
7085. (a) After investigating any verified complaint alleging a
violation of Section 7107, 7109, 7110, 7113, 7119, or 7120, and any
complaint arising from a contract involving works of improvement
as defined in Section 7151 and finding a possible
violation, the registrar may, with the concurrence of both the
licensee and the complainant, refer the alleged violation, and any
dispute between the licensee and the complainant arising thereunder,
to arbitration pursuant to this article, provided the registrar finds
that:
(1) There is evidence that the complainant has suffered or is
likely to suffer material damages as a result of a violation of
Section 7107, 7109, 7110, 7113, 7119, or 7120, and any complaint
arising from a contract involving works of improvement as
defined in Section 7151 .
(2) There are reasonable grounds for the registrar to believe that
the public interest would be better served by arbitration than by
disciplinary action.
(3) The licensee does not have a history of repeated or similar
violations.
(4) The licensee was in good standing at the time of the alleged
violation.
(5) The licensee does not have any outstanding disciplinary
actions filed against him or her.
(6) The parties have not previously agreed to private arbitration
of the dispute pursuant to contract or otherwise.
(7) The parties have been advised of the provisions of Section
2855 of the Civil Code.
For the purposes of paragraph (1), "material damages" means
damages greater than seven thousand five hundred dollars ($7,500) and
less than fifty thousand dollars ($50,000).
(b) In all cases in which a possible violation of the sections set
forth in paragraph (1) of subdivision (a) exists and the contract
price is equal to or less than seven thousand five hundred dollars
($7,500), or the demand for damages is equal to or less than seven
thousand five hundred dollars ($7,500) regardless of the contract
price, the complaint shall be referred to arbitration, utilizing the
criteria set forth in paragraphs (2) to (6), inclusive, of
subdivision (a).
SEC. 11. Section 7090.1 of the Business and Professions Code is
amended to read:
7090.1. (a) (1) Notwithstanding any other provisions of law, the
failure to pay a civil penalty, or to comply with an order of
correction or an order to pay a specified sum to an injured party in
lieu of correction once the order has become final, shall result in
the automatic suspension of a license by operation of law 30 days
after noncompliance with the terms of the order.
(2) The registrar shall notify the licensee in writing of the
failure to comply with the final order and that the license shall be
suspended 30 days from the date of the notice.
(3) The licensee may contest the determination of noncompliance
within 15 days after service of the notice, by written notice to the
registrar. Upon receipt of the written notice, the registrar may
reconsider the determination and after reconsideration may affirm or
set aside the suspension.
(4) Reinstatement may be made at any time following the suspension
by complying with the final order of the citation. If no
reinstatement of the license is made within one year
90 days of the date of the automatic suspension,
the cited license and any other contractors' license issued to the
licensee shall be automatically revoked by operation of law for a
period to be
determined by the registrar pursuant to Section 7102.
(5) The registrar may delay, for good cause, the revocation of a
contractor's license for failure to comply with the final order of
the citation. The delay in the revocation of the license shall not
exceed one year. When seeking a delay of the revocation of his or her
license, a licensee shall apply to the registrar in writing prior to
the date of the revocation of the licensee's license by operation of
law and state the reasons that establish good cause for the delay.
The registrar's power to grant a delay of the revocation shall expire
upon the effective date of the revocation of the licensee's license
by operation of law.
(b) The cited licensee shall also be automatically prohibited from
serving as an officer, director, associate, partner, or qualifying
individual of another licensee, for the period determined by the
registrar, and the employment, election, or association of that
person by a licensee shall constitute grounds for disciplinary
action. Any qualifier disassociated pursuant to this section shall
be replaced within 90 days of the date of disassociation. Upon
failure to replace the qualifier within 90 days of the prohibition,
the license of the other licensee shall be automatically suspended or
the qualifier's classification removed at the end of the 90 days.
SEC. 12. Section 7121 of the Business and Professions Code is
amended to read:
7121. Any person who has been denied a license for a reason other
than failure to document sufficient satisfactory experience for a
supplemental classification for an existing license, or who has had
his or her license revoked, or whose license is under suspension, or
who has failed to renew his or her license while it was under
suspension, or who has been a member, officer, director, or associate
of any partnership, corporation, firm, or association whose
application for a license has been denied for a reason other than
failure to document sufficient satisfactory experience for a
supplemental classification for an existing license, or whose license
has been revoked, or whose license is under suspension, or who has
failed to renew a license while it was under suspension, and while
acting as a member, officer, director, or associate had knowledge of
or participated in any of the prohibited acts for which the license
was denied, suspended, or revoked, shall be prohibited from serving
as an officer, director, associate, partner, or qualifying individual
of a licensee, and the employment, election, or association of this
type of person by a licensee in any capacity other than as a
nonsupervising bona fide employee shall constitute grounds for
disciplinary action.
SEC. 13. Section 7124.5 of the Business and Professions Code is
repealed.
7124.5. The board shall not make public disclosure of complaints
against a licensee except pursuant to a uniform policy if adopted by
the Department of Consumer Affairs, after public hearings, which is
applicable to all boards, bureaus, commissions, divisions, offices,
or officers subject to the jurisdiction of the department.
SEC. 14. Section 7137 of the Business and Professions Code is
amended to read:
7137. The board shall set fees by regulation. These fees shall
not exceed the following schedule:
(a) The application fee for an original license in a single
classification shall not be more than three hundred dollars ($300).
The application fee for each additional classification applied for
in connection with an original license shall not be more than
seventy-five dollars ($75).
The application fee for each additional classification pursuant to
Section 7059 shall not be more than seventy-five dollars ($75).
The application fee to replace a responsible managing officer or
employee pursuant to Section 7068.2 shall not be more than
seventy-five dollars ($75).
(b) The fee for rescheduling an examination for an applicant who
has applied for an original license, additional classification, a
change of responsible managing officer or responsible managing
employee, or for an asbestos certification or hazardous substance
removal certification, shall not be more than sixty dollars ($60).
(c) The fee for scheduling or rescheduling an examination for a
licensee who is required to take the examination as a condition of
probation shall not be more than sixty dollars ($60).
(d) The initial license fee for an active or inactive license
shall not be more than one hundred eighty dollars ($180).
(e) The renewal fee for an active license shall not be more than
three hundred sixty dollars ($360).
The renewal fee for an inactive license shall not be more than one
hundred eighty dollars ($180).
(f) The delinquency fee is an amount equal to 50 percent of the
renewal fee, if the license is renewed more than 30 days
after its expiration.
(g) The registration fee for a home improvement salesperson shall
not be more than seventy-five dollars ($75).
(h) The renewal fee for a home improvement salesperson
registration shall not be more than seventy-five dollars ($75).
(i) The application fee for an asbestos certification examination
shall not be more than seventy-five dollars ($75).
(j) The application fee for a hazardous substance removal or
remedial action certification examination shall not be more than
seventy-five dollars ($75).
SEC. 15. Section 8024 of the Business and Professions Code is
amended to read:
8024. All certificates issued under this chapter shall be valid
for a period of one year, except for the initial period of licensure
as prescribed by the board, and shall expire at 12 midnight on the
last day of the month of birth of the licensee unless renewed.
To renew an unexpired certificate, the certificate holder shall,
on or before each of the dates on which it would otherwise expire, do
all of the following:
(a) Apply for renewal on a form prescribed by the board.
(b) Pay the renewal fee prescribed by this chapter.
(c) Notify the board whether he or she has been convicted of any
felony or any misdemeanor if the misdemeanor is
substantially related to the functions and duties of a court reporter
and whether any disciplinary action by any regulatory or
licensing board in this or any other state was taken against the
licensee subsequent to the licensee's last renewal.
SEC. 16. Section 8024.1 of the Business and Professions Code is
amended to read:
8024.1. Every person to whom a certificate is issued shall, as a
condition precedent to its issuance, and in addition to any other fee
which may be payable, pay the initial certificate fee prescribed by
this chapter. Prior to receipt of an initial certificate fee,
the board may issue an interim permit of a limited duration, but only
to candidates eligible for certification under Section 8020. A
limited permit shall be valid for 45 days, or until the board issues
a certificate to the limited permitholder. If the board issues
interim permits, the initial certificate fee, and any other fee that
may be payable, shall be paid prior to the issuance of the
certificate.
SEC. 17. Section 8024.2 of the Business and Professions Code is
amended to read:
8024.2. (a) Except as otherwise provided in this article, a
certificate that has expired may be renewed at any time within the
period set forth in Section 8024.5 by doing all of the following:
(1) Applying for renewal on a form prescribed by the board.
(2) Paying the renewal fee prescribed by this chapter.
(3) Notifying the board whether the licensee has been convicted of
any felony or any misdemeanor if the misdemeanor is
substantially related to the functions and duties of a court reporter
and whether any disciplinary action was taken against the
licensee by any regulatory or licensing board in this or any other
state, subsequent to the licensee's last renewal.
(b) If the certificate is not renewed within 30 days after its
expiration, the certificate holder, as a condition precedent to
renewal, shall also pay the delinquency fee set forth in Section
163.5. Renewal under this section shall be effective on the date on
which the renewal fee is paid, or on the date on which the
delinquency fee, if any, is paid, whichever last occurs. If so
renewed, the certificate shall continue in effect through the date
provided in Section 8024 which next occurs after the effective date
of the renewal, when it shall expire if it is not again renewed.
The certificate shall not be renewed if the certificate holder has
failed to pay monetary sanctions identified in subdivision (g) of
Section 8025.
SEC. 18. Section 8027 of the Business and Professions Code is
amended to read:
8027. (a) As used in this section, "school" means a court
reporter training program or an institution that provides a course of
instruction approved by the board and the Bureau for Private
Postsecondary and Vocational Education, is a public school in this
state, or is accredited by the Western Association of Schools and
Colleges.
(b) A court reporting school shall be primarily organized to train
students for the practice of shorthand reporting, as defined in
Sections 8016 and 8017. Its educational program shall be on the
postsecondary or collegiate level. It shall be legally organized and
authorized to conduct its program under all applicable laws of the
state, and shall conform to and offer all components of the minimum
prescribed course of study established by the board. Its records
shall be kept and shall be maintained in a manner to render them safe
from theft, fire, or other loss. The records shall indicate
positive daily and clock-hour attendance of each student for all
classes, apprenticeship and graduation reports, high school
transcripts or the equivalent or self-certification of high school
graduation or the equivalent, transcripts of other education, and
student progress to date, including all progress and counseling
reports.
(c) Any school intending to offer a program in court reporting
shall notify the board within 30 days of the date on which it
provides notice to, or seeks approval from, the California Department
of Education, the Bureau for Private Postsecondary and Vocational
Education, the Chancellor's Office of the California Community
Colleges, or the Western Association of Schools and Colleges,
whichever is applicable. The board shall review the proposed
curriculum and provide the school tentative approval, or notice of
denial, within 60 days of receipt of the notice. The school shall
apply for provisional recognition pursuant to subdivision (d) within
no more than one year from the date it begins offering court
reporting classes.
(d) The board may grant provisional recognition to a new court
reporting school upon satisfactory evidence that it has met all of
the provisions of subdivision (b) and this subdivision. Recognition
may be granted by the board to a provisionally recognized school
after it has been in continuous operation for a period of no less
than three consecutive years from the date provisional recognition
was granted, during which period the school shall provide
satisfactory evidence that at least one person has successfully
completed the entire course of study established by the board and
complied with the provisions of Section 8020, and has been issued a
certificate to practice shorthand reporting as defined in Sections
8016 and 8017. The board may, for good cause shown, extend the
three-year provisional recognition period for not more than one year.
Failure to meet the provisions and terms of this section shall
require the board to deny recognition. Once granted, recognition may
be withdrawn by the board for failure to comply with all applicable
laws and regulations.
(e) Application for recognition of a court reporting school shall
be made upon a form prescribed by the board and shall be accompanied
by all evidence, statements, or documents requested. Each branch,
extension center, or off-campus facility requires separate
application.
(f) All recognized and provisionally recognized court reporting
schools shall notify the board of any change in school name, address,
telephone number, responsible court reporting program manager, owner
of private schools, and the effective date thereof, within 30 days
of the change. All of these notifications shall be made in writing.
(g) A school shall notify the board in writing immediately of the
discontinuance or pending discontinuance of its court reporting
program or any of the program's components. Within two years of the
date this notice is sent to the board, the school shall discontinue
its court reporting program in its entirety. The board may, for good
cause shown, grant not more than two one-year extensions of this
period to a school. If a student is to be enrolled after this notice
is sent to the board, a school shall disclose to the student the
fact of the discontinuance or pending discontinuance of its court
reporting program or any of its program components.
(h) The board shall maintain a roster of currently recognized and
provisionally recognized court reporting schools, including, but not
limited to, the name, address, telephone number, and the name of the
responsible court reporting program manager of each school.
(i) The board shall maintain statistics that display the number
and passing percentage of all first-time examinees, including, but
not limited to, those qualified by each recognized or provisionally
recognized school and those first-time examinees qualified by other
methods as defined in Section 8020.
(j) Inspections and investigations shall be conducted by the board
as necessary to carry out this section, including, but not limited
to, unannounced site visits.
(k) All recognized and provisionally recognized schools shall
print in their school or course catalog the name, address, and
telephone number of the board. At a minimum, the information shall
be in 8-point bold type and include the following statement:
"IN ORDER FOR A PERSON TO QUALIFY FROM A SCHOOL TO TAKE THE STATE
LICENSING EXAMINATION, THE PERSON SHALL COMPLETE A PROGRAM AT A
RECOGNIZED SCHOOL. FOR INFORMATION CONCERNING THE MINIMUM
REQUIREMENTS THAT A COURT REPORTING PROGRAM MUST MEET IN ORDER TO BE
RECOGNIZED, CONTACT: THE COURT REPORTERS BOARD OF CALIFORNIA;
(ADDRESS); (TELEPHONE NUMBER)."
(l) Each court reporting school shall file with the board, not
later than June 30 of each year, a current school catalog that shows
all course offerings and staff, and for private schools, the owner,
except that where there have been no changes to the catalog within
the previous year, no catalog need be sent. In addition, each school
shall also file with the board a statement certifying whether the
school is in compliance with all statutes and the rules and
regulations of the board, signed by the responsible court reporting
program manager.
(m) A school offering court reporting may not make any written or
verbal claims of employment opportunities or potential earnings
unless those claims are based on verified data and reflect current
employment conditions.
(n) If a school offers a course of instruction that exceeds the
board's minimum requirements, the school shall disclose orally and in
writing the board's minimum requirements and how the course of
instruction differs from those criteria. The school shall make this
disclosure before a prospective student executes an agreement
obligating that person to pay any money to the school for the course
of instruction. The school shall also make this disclosure to all
students enrolled on January 1, 2002.
(o) Private and public schools shall provide each
prospective student with all of the following and have the
prospective student sign a document that shall become part of that
individual's permanent record, acknowledging receipt of each item:
(1) A student consumer information brochure published by the
board.
(2) A list of the school's graduation requirements, including the
number of tests, the pass point of each test, the speed of each test,
and the type of test, such as jury charge or literary.
(3) A list of requirements to qualify for the state certified
shorthand reporter licensing examination, including the number of
tests, the pass point of each test, the speed of each test, and the
type of test, such as jury charge or literary, if different than
those requirements listed in paragraph (2).
(4) A copy of the school's board-approved benchmarks for
satisfactory progress as identified in subdivision (u).
(5) A report showing the number of students from the school who
qualified for each of the certified shorthand reporter licensing
examinations within the preceding two years, the number of those
students that passed each examination, the time, as of the date of
qualification, that each student was enrolled in court reporting
school, and the placement rate for all students that passed each
examination.
(6) On and after January 1, 2005, the school shall also provide to
prospective students the number of hours each currently enrolled
student who has qualified to take the next licensing test, exclusive
of transfer students, has attended court reporting classes.
(p) All enrolled students shall have the information in
subdivisions (n) and (o) on file no later than June 30, 2005.
(q) Public schools shall provide the information in
paragraphs (1) to (6) of subdivision subdivisions (n)
and (o) , inclusive, to each new student
the first day he or she attends theory or machine speed class, if it
was not provided previously.
(q)
(r) Each enrolled student shall be provided written
notification of any change in qualification or graduation
requirements that is being implemented due to the requirements of any
one of the school's oversight agencies. This notice shall be
provided to each affected student at least 30 days before the
effective date of the change and shall state the new requirement and
the name, address, and telephone number of the agency that is
requiring it of the school. Each student shall initial and date a
document acknowledging receipt of that information and that document,
or a copy thereof, shall be made part of the student's permanent
file.
(r)
(s) Schools shall make available a comprehensive final
examination in each academic subject to any student desiring to
challenge an academic class in order to obtain credit towards
certification for the state licensing examination. The points
required to pass a challenge examination shall not be higher than the
minimum points required of other students completing the academic
class.
(s)
(t) An individual serving as a teacher, instructor, or
reader shall meet the qualifications specified by regulation for his
or her position.
(t)
(u) Each school shall provide a substitute teacher or
instructor for any class for which the teacher or instructor is
absent for two consecutive days or more.
(u)
(v) The board has the authority to approve or disapprove
benchmarks for satisfactory progress which each school shall develop
for its court reporting program. Schools shall use only
board-approved benchmarks to comply with the provisions of paragraph
(4) of subdivision (o) and subdivision (u).
(v)
(w) Each school shall counsel each student a minimum of one
time within each 12-month period to identify the level of attendance
and progress, and the prognosis for completing the requirements to
become eligible to sit for the state licensing examination. If the
student has not progressed in accordance with the board-approved
benchmarks for that school, the student shall be counseled a minimum
of one additional time within that same 12-month period.
(w)
(x) The school shall provide to the board, for each student
qualifying through the school as eligible to sit for the state
licensing examination, the number of hours the student attended court
reporting classes, both academic and machine speed classes,
including theory.
(x)
(y) The pass rate of first-time exam takers for each school
offering court reporting shall meet or exceed the average pass rate
of all first-time test takers for a majority of examinations given
for the preceding three years. Failure to do so shall require the
board to conduct a review of the program. In addition, the board may
place the school on probation and may withdraw recognition if the
school continues to place below the above described standard on the
two exams that follow the three-year period.
(y)
(z) A school shall not require more than one 10-minute
qualifying examination, as defined in the regulations of the board,
for a student to be eligible to sit for the state certification
examination.
(z)
(aa) A school shall provide the board the actual number of
hours of attendance for each applicant the school qualifies for the
state licensing examination.
(aa)
(bb) The board shall, by December 1, 2001, do the following
by regulation as necessary:
(1) Establish the format that shall be used by schools to report
tracking of all attendance hours and actual timeframes for completed
coursework.
(2) Require schools to provide a minimum of 10 hours of live
dictation class each school week for every full-time student.
(3) Require schools to provide students with the opportunity to
read back from their stenographic notes a minimum of one time each
day to his or her instructor.
(4) Require schools to provide students with the opportunity to
practice with a school-approved speed-building tape, or other
assigned material, a minimum of one hour per day after school hours
as a homework assignment and provide the notes from this tape to
their instructor the following day for review.
(5) Develop standardization of policies on the use and
administration of qualifier examinations by schools.
(6) Define qualifier exam as follows: the qualifier exam shall
consist of 4-voice testimony of 10-minute duration at 200 wpm, graded
at 97.5 percent accuracy, and in accordance with the guidelines
followed by the board. Schools shall be required to date and number
each qualifier and announce the date and number to the students at
the time of administering the qualifier. All qualifiers shall
indicate the actual dictation time of the test and the school shall
catalog and maintain the qualifier for a period of not less than
three years for the purpose of inspection by the board.
(7) Require schools to develop a program to provide students with
the opportunity to interact with professional court reporters to
provide skill support, mentoring, or counseling which they can
document at least quarterly.
(8) Define qualifications and educational requirements required of
instructors and readers that read test material and qualifiers.
(bb)
(cc) The board shall adopt regulations to implement the
requirements of this section not later than September 1, 2002.
(cc)
(dd) The board may recover costs for any additional expenses
incurred under the enactment amending this section in the 2001-02
Regular Session of the Legislature pursuant to its fee authority in
Section 8031.