BILL NUMBER: AB 2456	CHAPTERED
	BILL TEXT

	CHAPTER  122
	FILED WITH SECRETARY OF STATE  JULY 24, 2006
	APPROVED BY GOVERNOR  JULY 24, 2006
	PASSED THE SENATE  JUNE 29, 2006
	PASSED THE ASSEMBLY  MAY 4, 2006
	AMENDED IN ASSEMBLY  APRIL 19, 2006
	AMENDED IN ASSEMBLY  MARCH 27, 2006

INTRODUCED BY   Assembly Member Nakanishi

                        FEBRUARY 23, 2006

   An act to amend Section 7145.5 of the Business and Professions
Code, relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2456, Nakanishi  Contractors: licenses.
   Under existing law, the Contractors' State License Board licenses
and regulates contractors, and authorizes the registrar of the board
to suspend a license for failure of the licensee to resolve
outstanding final liabilities.
   This bill would prohibit a qualifying person and personnel of
record of a licensee whose license has been suspended for this
purpose from serving in any capacity that is subject to licensure
under the Contractors' State License Law other than a nonsupervising
bona fide employee, until the covered debts are satisfied. The bill
would also provide for suspension of a licensee's license if he or
she employs any personnel of record that have been assessed an
outstanding liability, until the debt has been satisfied or the
personnel of record disassociate themselves from the licensee.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 7145.5 of the Business and Professions Code is
amended to read:
   7145.5.  (a) The registrar may refuse to issue, reinstate,
reactivate, or renew a license or may suspend a license for the
failure of a licensee to resolve all outstanding final liabilities,
which include taxes, additions to tax, penalties, interest and any
fees that may be assessed by the board, the Department of Industrial
Relations, the Employment Development Department, or the Franchise
Tax Board.
   (1) Until the debts covered by this section are satisfied, the
qualifying person and any other personnel of record named on a
license that has been suspended under this section shall be
prohibited from serving in any capacity that is subject to licensure
under this chapter, but shall be permitted to act in the capacity of
a nonsupervising bona fide employee.
   (2) The license of any other renewable licensed entity with any of
the same personnel of record that have been assessed an outstanding
liability covered by this section shall be suspended until the debt
has been satisfied or until the same personnel of record disassociate
themselves from the renewable licensed entity.
   (b) The refusal to issue a license or the suspension of a license
as provided by this section shall be applicable only if the registrar
has mailed a notice preliminary to the refusal or suspension that
indicates that the license will be refused or suspended by a date
certain. This preliminary notice shall be mailed to the licensee at
least 60 days before the date certain.
   (c) In the case of outstanding final liabilities assessed by the
Franchise Tax Board, this section shall be operative within 60 days
after the Contractor's State Licensing Board has provided the
Franchise Tax Board with the information required under Section 30,
relating to licensing information which includes the federal employee
identification number or social security number.
   (d) All versions of the application for contractor's licenses
shall include, as part of the application, an authorization by the
applicant, in the form and manner mutually agreeable to the Franchise
Tax Board and the board, for the Franchise Tax Board to disclose the
tax information that is required for the registrar to administer
this section.  The Franchise Tax Board may from time to time audit
these authorizations.