BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 370
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 370 (Eng)
          As Amended  June 29, 2009
          Majority vote
           
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          |ASSEMBLY:  |77-0 |(May 11, 2009)  |SENATE: |38-0 |(August 27,    |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:   B. & P  . 

           SUMMARY  :  Increases the maximum criminal penalties for  
          unlicensed contractors, imposes a mandatory jail sentence for a  
          third or subsequent conviction for unlicensed contracting, and  
          requires the court to order an unlicensed contractor to pay  
          restitution to its victims.  

           The Senate amendments  make technical, clarifying changes to the  
          bill.

           EXISTING LAW  :
           
          1)Creates the Contractors State License Board (CSLB) within the  
            Department of Consumer Affairs for the purposes of licensing  
            and regulating contractors in California.

          2)Allows CSLB to bring disciplinary actions against a contractor  
            who willfully or deliberately violates building laws of the  
            state.

          3)Makes it a misdemeanor for a person to engage in the business  
            or act in the capacity of a contractor without having a  
            license and makes a first offense punishable by imprisonment  
            in the county jail for no more than six months, or by a fine  
            not exceeding $1,000, or both.

          4)Requires that a second conviction be punishable by both a fine  
            and imprisonment in the county jail for not less than 90 days,  
            except as specified.  The fine must be the greater of 20% of  
            the price of the contract or $4,500.

          5)Requires that a third or subsequent conviction be punishable  
            by a fine or imprisonment in the county jail for between 90  
            days and one year, or both.  The fine must be no less than  








                                                                  AB 370
                                                                  Page  2

            $4,500 and no more than the greater of $10,000 or 20% of the  
            price of the contract. 

           AS PASSED BY THE ASSEMBLY  , this bill is substantially similar to  
          the version approved by the Senate.
           
          FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


           Analysis Prepared by  :    Rebecca May / B. & P. / (916) 319-3301 

                                                               FN:  0001960