BILL NUMBER: AB 2897	CHAPTERED
	BILL TEXT

	CHAPTER  171
	FILED WITH SECRETARY OF STATE  AUGUST 28, 2006
	APPROVED BY GOVERNOR  AUGUST 28, 2006
	PASSED THE SENATE  AUGUST 10, 2006
	PASSED THE ASSEMBLY  MAY 18, 2006
	AMENDED IN ASSEMBLY  APRIL 19, 2006

INTRODUCED BY   Assembly Member Daucher

                        FEBRUARY 24, 2006

   An act to add Sections 7121.6, 7121.65, 7121.7, and 7121.8 to the
Business and Professions Code, relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2897, Daucher  Contractors: revoked licenses.
   Under existing law, the Contractors' State License Law, the
Contractors' State License Board licenses and regulates contractors,
and authorizes the board to revoke a license for specified reasons.
   This bill would prohibit an individual who was a member, officer,
director, owner, or partner of a license that was revoked and who
meets specified criteria from performing acts regulated by the law on
behalf of a licensee, except as a bona fide nonsupervising employee,
as defined. The bill would require those individuals to notify a
prospective employer of the license revocation prior to becoming
employed by an entity subject to licensure by the board. The bill
would also prohibit a licensee from knowingly hiring those
individuals, except as bona fide nonsupervising employees.  Because a
violation of this bill's provisions would be a crime, the bill would
impose a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


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


  SECTION 1.  Section 7121.6 is added to the Business and Professions
Code, to read:
   7121.6.  (a) An individual who meets all of the following criteria
shall not perform any act regulated under this chapter for or on
behalf of a licensee, other than as a bona fide nonsupervising
employee:
   (1) The individual was a member, officer, director, owner, or
partner of a license that was revoked.
   (2) The individual had knowledge of or participated in any act or
omission for which the license was revoked.
   (3) The individual is not eligible for reinstatement for licensure
under Section 7102.
   (b) An individual who meets all of the following criteria shall
not perform any act regulated under this chapter for or on behalf of
a licensee, other than as a bona fide nonsupervising employee:
   (1) The individual furnished the qualifications for licensure, as
set forth under Section 7068, and that license was revoked.
   (2) The individual served in the capacity of the qualifying
individual during the commission or omission of any of the acts that
resulted in the revocation of the license, whether or not he or she
had knowledge of or participated in those acts.
   (3) The individual is not eligible for reinstatement for licensure
under Section 7102.
   (c) A violation of this section is a misdemeanor punishable by a
fine of not less than four thousand five hundred dollars ($4,500), by
imprisonment in a county jail for not less than 90 days nor more
than one year, or by both the fine and imprisonment. The penalty
provided by this subdivision is cumulative to the penalties available
under other laws of this state.
   (d) Notwithstanding any other provision of law to the contrary, an
indictment for any violation of this section shall be found or an
information or complaint filed within four years from the performance
of any act that is prohibited under this section.
  SEC. 2.  Section 7121.65 is added to the Business and Professions
Code, to read:
   7121.65.  Prior to becoming employed in any capacity by an entity
that is subject to licensure under this chapter, an individual who is
described in subdivision (a) or (b) of Section 7121.6 shall provide
the prospective employer with written notice of the license
revocation.
  SEC. 3.  Section 7121.7 is added to the Business and Professions
Code, to read:
   7121.7.  (a) A qualifying individual, officer, partner, or other
person named on a license shall not knowingly employ an individual
who is described in subdivision (a) or (b) of Section 7121.6, except
as a bona fide nonsupervising employee.
   (b) A violation of this section is a misdemeanor punishable by a
fine of not less than four thousand five hundred dollars ($4,500), by
imprisonment in a county jail for not less than 30 days nor more
than one year, or by both the fine and imprisonment.
   (c) Notwithstanding any other provision of law to the contrary, an
indictment for any violation of this section shall be found or an
information or complaint filed within four years from the performance
of any act that is prohibited under this section.
  SEC. 4.  Section 7121.8 is added to the Business and Professions
Code, to read:
   7121.8.  For purposes of this article, "bona fide nonsupervising
employee" means a person who is exempt from the provisions of this
chapter under Section 7053, and who does not otherwise meet the test
of an independent contractor, as set forth under Section 2750.5 of
the Labor Code.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.