SB 262, as introduced, Monning. Contractors.
The Contractors’ State License Law provides for the licensure and regulation of contractors by the Contractors’ State License Board. Existing law authorizes an applicant for a license to qualify the applicant’s knowledge and experience with a responsible managing officer, employee, member, or manager who has certain qualifications. The person qualifying on behalf of an individual or firm is responsible for exercising direct supervision and control of his or her employer’s or principal’s construction operations as necessary to secure full compliance with the Contractors’ State License Law and the regulations of the Contractors’ State License Board relating to construction operations.
This bill would provide that failure of the qualifying individual to exercise direct supervision and control in accordance with these provisions and the regulations adopted by the board shall constitute grounds for disciplinary action, and shall be punishable as a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 7068.1 of the Business and Professions
2Code is amended to read:
begin insert(a)end insertbegin insert end insert The person qualifying on behalf of an individual
4or firm under paragraph (1), (2), (3), or (4) of subdivision (b) of
5Section 7068 shall be responsible for exercising that direct
6supervision and control of his or her employer’s or principal’s
7construction operations as is necessary to secure full compliance
8with this chapter and the rules and regulations of the board relating
9to the construction operations. This person shall not act in the
10capacity of the qualifying person for an additional individual or
11firm unless one of the following conditions exists:
12(a)
end delete
13begin insert(1)end insert There is a common ownership of at least 20 percent of the
14equity of each individual or firm for which the person acts in a
15qualifying capacity.
16(b)
end delete
17begin insert(2)end insert The additional firm is a subsidiary of or a joint venture with
18the first. “Subsidiary,” as used in this subdivision, means any firm
19at least 20 percent of the equity of which is owned by the other
20firm.
21(c)
end delete
22begin insert(3)end insert With respect to a firm under paragraph (2), (3), or (4) of
23subdivision (b) of Section 7068, the majority of the partners,
24officers, or managers are the same.
25(d)
end delete
26begin insert(b)end insert Notwithstandingbegin delete subdivisions (a), (b), and (c),end deletebegin insert paragraphs
27(1) to (3), inclusive, of subdivision (a),end insert a qualifying individual may
28act as the qualifier
for no more than three firms in any one-year
29period.
30“Firm,” as used in this section,
end delete
31(c) The following definitions shall apply for purposes of this
32section:
P3 1begin insert(1)end insertbegin insert end insertbegin insert“Firm”end insert means a partnership, a limited partnership, a
2corporation, a limited liability company, or any other combination
3or organization described in Section 7068.
4“Person,” as used in this section,
end delete
5begin insert(2)end insertbegin insert end insertbegin insert“Person”end insert
is limited to natural persons, notwithstanding the
6definition of “person” in Section 7025.
7The
end delete
8begin insert(d)end insertbegin insert end insertbegin insertThe end insertboard shall require every applicant or licensee
9qualifying by the appearance of a qualifying individual to submit
10detailed information on the qualifying individual’s duties and
11responsibilities for supervision and control of the applicant’s
12construction operations.begin insert
The failure of the qualifying individual
13to exercise direct supervision and control in accordance with this
14section and the regulations adopted by the board shall constitute
15grounds for disciplinary action, and shall be punishable as a
16misdemeanor by imprisonment in a county jail, by a fine of not
17less than three thousand dollars ($3,000), but not to exceed five
18thousand dollars ($5,000), or by both that imprisonment and fine.end insert
No reimbursement is required by this act pursuant to
20Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district will be incurred because this act creates a new crime or
23infraction, eliminates a crime or infraction, or changes the penalty
24for a crime or infraction, within the meaning of Section 17556 of
25the Government Code, or changes the definition of a crime within
26the meaning of Section 6 of Article XIII B of the California
27Constitution.
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