BILL NUMBER: SB 262	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Monning
   (Principal coauthor: Assembly Member Achadjian)

                        FEBRUARY 13, 2013

   An act to amend Section 7068.1 of the Business and Professions
Code, relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 7068.1 of the Business and Professions Code is
amended to read:
   7068.1.   (a)    The person qualifying on behalf
of an individual or firm under paragraph (1), (2), (3), or (4) of
subdivision (b) of Section 7068 shall be responsible for exercising
that direct supervision and control of his or her employer's or
principal's construction operations as is necessary to secure full
compliance with this chapter and the rules and regulations of the
board relating to the construction operations. This person shall not
act in the capacity of the qualifying person for an additional
individual or firm unless one of the following conditions exists:

   (a) 
    (1)  There is a common ownership of at least 20 percent
of the equity of each individual or firm for which the person acts in
a qualifying capacity. 
   (b) 
    (2)  The additional firm is a subsidiary of or a joint
venture with the first. "Subsidiary," as used in this subdivision,
means any firm at least 20 percent of the equity of which is owned by
the other firm. 
   (c) 
    (3)  With respect to a firm under paragraph (2), (3), or
(4) of subdivision (b) of Section 7068, the majority of the
partners, officers, or managers are the same. 
   (d) 
    (b)  Notwithstanding  subdivisions (a), (b), and
(c),   paragraphs (1) to (3), inclusive, of subdivision
(a),  a qualifying individual may act as the qualifier for no
more than three firms in any one-year period. 
   "Firm," as used in this section,  
   (c) The following definitions shall apply for purposes of this
section: 
    (1)     "Firm"  means a partnership, a
limited partnership, a corporation, a limited liability company, or
any other combination or organization described in Section 7068.

   "Person," as used in this section, 
    (2)     "Person"  is limited to
natural persons, notwithstanding the definition of "person" in
Section 7025. 
   The 
    (d)     The  board shall require every
applicant or licensee qualifying by the appearance of a qualifying
individual to submit detailed information on the qualifying
individual's duties and responsibilities for supervision and control
of the applicant's construction operations.  The failure of the
qualifying individual to exercise direct supervision and control in
accordance with this section and the regulations adopted by the board
shall constitute grounds for disciplinary action, and shall be
punishable as a misdemeanor by imprisonment in a county jail, by a
fine of not less than three thousand dollars ($3,000), but not to
exceed five thousand dollars ($5,000), or by both that imprisonment
and fine. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.