Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1114

Introduced by Assembly Member Achadjian

February 22, 2013

An act to amend Section begin delete 5000 end delete begin insert 7157 end insert of the Business and Professions Code, relating to begin delete accountants end delete begin insert contractors end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 1114, as amended, Achadjian. begin delete California Board of Accountancy. end delete begin insert Contractors: home improvement contracts. end insert

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The Contractors’ State License Law provides for the licensure and regulation of contractors by the Contractors’ State License Board within the Department of Consumer Affairs. That law prohibits a salesperson or contractor’s agent from accepting compensation of any kind for, or on account of, a home improvement transaction, or any other transaction involving a work of improvement, from a person other than the contractor whom he or she represents with respect to the transaction, and from making a payment to any person other than his or her employer on account of the sales transaction. The law also prohibits a contractor from paying, crediting, or allowing any consideration or compensation of any kind to any other contractor or salesperson other than a licensee for, or on account of, the performance of a work of improvement or services, including, but not limited to, home improvement work or services, except as specified.

end insert begin insert

This bill would delete the latter provision prohibiting contractors from paying, crediting, or allowing any consideration or compensation, as described above.

end insert begin delete

Existing law, until January 1, 2016, establishes the California Board of Accountancy, which is comprised of 15 members, to be appointed as specified. Under existing law, the board licenses and regulates the practice of accountancy in the State of California.

end delete begin delete

This bill would make technical, nonsubstantive changes to these provisions.

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Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 7157 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

7157.  

(a) Except as otherwise provided in subdivision (b), as
a part of begin insert , end insert or in connection with begin insert , end insert the inducement to enter into begin delete any end delete
begin insert a end insert home improvement contract or other contract, begin delete which end delete begin insert that end insert may
be performed by a contractor, begin delete no end delete begin insert a end insert person begin delete may end delete begin insert shall not end insert promise
or offer to pay, credit, or allow to any owner, compensation or
reward for the procurement or placing of home improvement
business with others.

(b) A contractor or his or her agent or salesperson may give
tangible items to prospective customers for advertising or sales
promotion purposes begin delete where end delete begin insert if end insert the gift is not conditioned upon
obtaining a contract for home improvement work begin delete if end delete begin insert , end insert the gift does
not exceed a value of five dollars ($5) begin insert , end insert and only one begin delete such end delete gift is
given in connection with any one transaction.

(c)  begin delete No end delete begin insert A end insert salesperson or contractor’s agent begin delete may end delete begin insert shall not end insert accept
begin delete any end delete compensation of any kind, for or on account of a home
improvement transaction, or any other transaction involving a work
of improvement, from begin delete any end delete begin insert a end insert person other than the contractor whom
he or she represents with respect to the transaction, nor shall the
salesperson or agent make begin delete any end delete begin insert a end insert payment to any person other than
his or her employer on account of the sales transaction.

begin delete

(d) No contractor shall pay, credit, or allow any consideration
or compensation of any kind to any other contractor or salesperson
other than a licensee for or on account of the performance of any
work of improvement or services, including, but not limited to,
home improvement work or services, except: (1) where the person
to or from whom the consideration is to be paid is not subject to
or is exempted from the licensing requirements of this chapter, or
(2) where the transaction is not subject to the requirements of this
chapter.

As

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begin insert (d) end insert begin insert   end insert begin insert As end insert begin insert end insert used in this section begin delete “owners” end delete begin insert “owner end insert begin insert ” end insert shall also mean
“tenant.”

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Commission of any act prohibited by

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begin insert (e) end insert begin insert   end insert begin insert Any violation of end insert begin insert end insert this section is a misdemeanor and constitutes
a cause for disciplinary action.

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SECTION 1.  

Section 5000 of the Business and Professions
Code is amended to read:

5000.  

(a) There is in the Department of Consumer Affairs the
California Board of Accountancy, which consists of 15 members,
7 of whom shall be licensees, and 8 of whom shall be public
members who shall not be licentiates of the board or registered by
the board. The board has the powers and duties conferred by this
chapter.

(b) The Governor shall appoint four of the public members, and
the seven licensee members as provided in this section. The Senate
Committee on Rules and the Speaker of the Assembly shall each
appoint two public members. In appointing the seven licensee
members, the Governor shall appoint members representing a cross
section of the accounting profession with at least two members
representing a small public accounting firm. For the purposes of
this chapter, a small public accounting firm shall be defined as a
professional firm that employs a total of no more than four
licensees as partners, owners, or full-time employees in the practice
of public accountancy within the State of California.

(c) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

(d) Notwithstanding any other law, the repeal of this section
renders the board subject to review by the appropriate policy
committees of the Legislature. However, the review of the board
shall be limited to reports or studies specified in this chapter and
those issues identified by the appropriate policy committees of the
Legislature and the board regarding the implementation of new
licensing requirements.

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