BILL NUMBER: AB 243	CHAPTERED  07/17/07

	CHAPTER  85
	FILED WITH SECRETARY OF STATE  JULY 17, 2007
	APPROVED BY GOVERNOR  JULY 17, 2007
	PASSED THE SENATE  JULY 2, 2007
	PASSED THE ASSEMBLY  APRIL 9, 2007

INTRODUCED BY   Assembly Member Nakanishi

                        FEBRUARY 1, 2007

   An act to amend Section 7091 of the Business and Professions Code,
relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 243, Nakanishi. Contractors: filing complaints and disciplinary
actions.
   Existing law, the Contractors' State License Law, provides for the
licensure and regulation of contractors by the Contractors' State
License Board. Existing law establishes timeframes for filing various
complaints and accusations, which are grounds for disciplinary
action against a licensed contractor. Existing law requires an
accusation regarding an alleged breach of an express, written
warranty by a licensee to be filed within the duration of the
warranty.
   This bill would require a disciplinary action to be filed against
a licensee convicted of crimes related to the qualifications,
functions, and duties of a contractor within 2 years after discovery
of the conviction by the registrar of contractors or the board. The
bill would also require a disciplinary action regarding an alleged
breach of an express, written warranty by a licensee to be filed
within 18 months from the expiration of the warranty.


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

  SECTION 1.  Section 7091 of the Business and Professions Code is
amended to read:
   7091.  (a) (1) A complaint against a licensee alleging commission
of any patent acts or omissions that may be grounds for legal action
shall be filed in writing with the registrar within four years after
the act or omission alleged as the ground for the disciplinary
action.
   (2) A disciplinary action against a licensee relevant to this
subdivision shall be filed or a referral to the arbitration program
outlined in Section 7085 shall be referred within four years after
the patent act or omission alleged as the ground for disciplinary
action or arbitration or within 18 months from the date of the filing
of the complaint with the registrar, whichever is later.
   (b) (1) A complaint against a licensee alleging commission of any
latent acts or omissions that may be grounds for legal action
pursuant to subdivision (a) of Section 7109 regarding structural
defects, as defined by regulation, shall be filed in writing with the
registrar within 10 years after the act or omission alleged as the
ground for the disciplinary action.
   (2) A disciplinary action against a licensee relevant to this
subdivision shall be filed within 10 years after the latent act or
omission alleged as the ground for disciplinary action or within 18
months from the date of the filing of the complaint with the
registrar, whichever is later. As used in this subdivision "latent
act or omission" means an act or omission that is not apparent by
reasonable inspection.
   (c) A disciplinary action alleging a violation of Section 7112
shall be filed within two years after the discovery by the registrar
or by the board of the alleged facts constituting the fraud or
misrepresentation prohibited by the section.
   (d) With respect to a licensee who has been convicted of a crime
and, as a result of that conviction is subject to discipline under
Section 7123, the disciplinary action shall be filed within two years
after the discovery of the conviction by the registrar or by the
board.
   (e) A disciplinary action regarding an alleged breach of an
express, written warranty issued by the contractor shall be filed not
later than 18 months from the expiration of the warranty.
   (f) The proceedings under this article shall be conducted in
accordance with the provisions of Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code, and
the registrar shall have all the powers granted therein.
   (g) Nothing in this section shall be construed to affect the
liability of a surety or the period of limitations prescribed by law
for the commencement of actions against a surety or cash deposit.