BILL ANALYSIS Ó SB 261 Page 1 Date of Hearing: July 3, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 261 (Monning) - As Introduced: February 13, 2013 Policy Committee: Business and Professions Vote: 12 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill authorizes the Contractors' State License Board (CSLB) to take administrative action against any licensed or unlicensed person for the improper use of a contractor's license. FISCAL EFFECT There are no significant costs associated with this legislation. COMMENTS 1)Purpose . Currently, CSLB only has administrative authority to enforce the Contractors' Law (commencing with Business and Professions Code (BPC) 7000). This bill expands CSLB's administrative authority to include additional instances when a licensed or unlicensed contractor has improperly or fraudulently used a contractor's license, as specified in BPC 119. According to the author, individuals who commit BPC 119 violations represent a risk to the public and legitimate licensees. Under existing law, the CSLB does not have administrative authority to impose discipline upon licensed or unlicensed persons for those specific violations. 2)Business and Professions Code 119 specifies that improper use of a Department of Consumer Affairs issued license is a misdemeanor when an individual: a) Displays, permits to be displayed or has in his or her SB 261 Page 2 possession, a cancelled, revoked, suspended or fraudulently altered license, or a fictitious license or document simulating a license. b) Lends or knowingly permits his or her license to be used by another. c) Displays or represents any license not issued to him or her as being his or her license. d) Fails or refuses to surrender to the issuing board or bureau upon a lawful written demand any license, registration, permit, or certificate which has been suspended, revoked, or canceled. e) Knowingly permits any unlawful use of a license. f) Photographs, copies, duplicates, manufactures, or in any way reproduces a license in a manner that it could be mistaken for a valid license, or displays or has in their possession a photograph, copy, duplicate, reproduction, or facsimile unless authorized by the BPC. g) Knowingly buys or receives a fraudulent, forged, or counterfeit license. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081