BILL NUMBER: AB 1091	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Morrell

                        FEBRUARY 18, 2011

   An act to amend Section 7068.2 of the Business and Professions
Code, relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1091, as introduced, Morrell. Contractors.
   Existing law, the Contractors' State License Law, provides for the
licensure and regulation of contractors by the Contractors' State
License Board. Existing law requires the board to appoint a registrar
to carry out administrative duties delegated by the board. Existing
law authorizes an applicant for a license to qualify his or her
knowledge and experience with a responsible managing officer,
employee, member or manager who has certain qualifications. Under
existing law, if the responsible managing officer, employee, member,
or manager disassociates from the licensed entity, the licensee or
the qualifier, as defined, is required to notify the registrar, as
specified. Existing law authorizes the registrar to accept petitions
from licensees disputing matters related to the disassociation.
   This bill would revise and recast those provisions by specifying
that the notification be provided within 90 days after the date of
disassociation. The bill would authorize the registrar to accept a
petition for one 90-day extension to replace the qualifier under
limited circumstances and would impose specified requirements related
to that submittal. The bill would make other conforming changes.
   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 7068.2 of the Business and Professions Code is
amended to read:
   7068.2.   (a)    If the responsible managing
officer, responsible managing employee, responsible managing member,
or responsible managing manager, disassociates from the licensed
entity, the licensee, or the qualifier shall notify the registrar in
writing  , and the   licensee shall replace
the qualifier, within 90 days from the date of disassociation.
  within 90 days after the date of disassociation. The
licensee shall have 90 days after the date of disassociation in which
to replace the   qualifier. Upon failure to replace the
qualifier within 90 days   after the date of disassociation,
the license shall be automatically suspended or the classification
removed at the end of the 90 days.  
   To 
    (b)     To  replace a responsible
managing officer, responsible managing employee, responsible managing
member, or responsible managing manager, the licensee shall file an
application as prescribed by the registrar, accompanied by the fee
fixed by this chapter, designating an individual to qualify as
required by this chapter. 
   Upon failure to replace the qualifier within 90 days of the
disassociation the license shall be automatically suspended or the
classification removed at the end of the 90 days.  
   The registrar may review and accept the petition of a licensee who
disputes the date of disassociation or who has failed to notify and
replace the qualifier within the prescribed time, upon a showing of
good cause by the contractor. This petition shall be received within
90 days from the date of the board's notice that the license will be
suspended if the qualifier is not replaced. The registrar may grant
only one 90-day extension to replace the qualifier. 

   Upon 
    (c)     Upon  failure of the licensee
or the qualifier to notify the registrar of the disassociation 
of the qualifier  within 90 days  from  
after  the date of disassociation, the license shall be
automatically suspended or the classification removed and the
qualifier removed from the license effective the date the written
notification is received at the board's headquarters office. 

   The 
    (d)     The  person qualifying on
behalf of a licensee under Section 7068 shall be responsible for the
licensee's construction operations until the  date of
disassociation or the date  the board receives the written
notification of disassociation  , whichever is later  . 

   (e) (1) Upon a showing of good cause by the licensee, the
registrar may review and accept a petition for one 90-day extension
to replace the qualifier immediately following the initial 90-day
period described in subdivision (a) only under the following
circumstances:  
   (A) If the licensee is disputing the date of disassociation. 

   (B) If the responsible managing officer, employee, member, or
manager has died.  
   (C) If there has been delay in processing the application to
replace the qualifier that is out of the applicant's control and it
is the responsibility of the board or another state or federal agency
that is relied upon in the application process.  
   (2) This petition shall be received within 90 days after the date
of disassociation or death or delay. The petition shall only be
considered if an application to replace the qualifier as prescribed
by the registrar is on file with the board. Under the circumstances
described in subparagraphs (A) and (B) of paragraph (1), the licensee
shall have no more than a total of 180 days after the date of
disassociation or death in which to replace the qualifier. 

   Failure 
    (f)     Failure  of the licensee or
the qualifier to notify the registrar of the qualifier's
disassociation within 90 days  of   after 
the  date of  disassociation  is  
shall constitute  grounds for disciplinary action.