SB 262, as amended, 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 wouldbegin delete provide that failure ofend deletebegin insert
requireend insert the qualifying individual tobegin delete exercise direct supervision and control in accordance with these provisions and the regulations
adopted by the board shall constituteend deletebegin insert meet specified requirements with respect to his or her employer’s or principal’s construction operations. The bill would also make violation of these provisionsend insert grounds for disciplinary action, andbegin delete shall beend delete 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:
(a) 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 forbegin delete exercising that direct begin insert meeting the
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:end delete
12
requirements of Section 823 of end insertbegin insertTitle 16 of the California Code of
13Regulations with respect to his or her employer’s or principal’s
14construction operations to secure full compliance with this chapter.
15Violation of this section shall constitute a cause for disciplinary
16action and shall be punishable as a misdemeanor by imprisonment
17in county jail, by a fine of not less than three thousand dollars
18($3,000), but not to exceed five thousand dollars ($5,000), or by
19both the fine and imprisonment.end insert
20(1) There is a common ownership of at least 20 percent of the
21equity of each individual or firm for which the person acts in a
22qualifying capacity.
23(2) The additional firm is a subsidiary of or a joint venture with
24the
first. “Subsidiary,” as used in this subdivision, means any firm
25at least 20 percent of the equity of which is owned by the other
26firm.
27(3) With respect to a firm under paragraph (2), (3), or (4) of
28subdivision (b) of Section 7068, the majority of the partners,
29officers, or managers are the same.
P3 1(b) Notwithstanding paragraphs (1) to (3), inclusive, of
2subdivision (a), a qualifying individual may act as the qualifier for
3no more than three firms in any one-year period.
4(c) The following definitions shall apply for purposes of this
5section:
6(1) “Firm” means a partnership, a limited partnership, a
7corporation, a limited liability company, or any
other combination
8or organization described in Section 7068.
9(2) “Person” is limited to natural persons, notwithstanding the
10definition of “person” in Section 7025.
11(d) The board shall require every applicant or licensee qualifying
12by the appearance of a qualifying individual to submit detailed
13information on the qualifying individual’s duties and
14responsibilities for supervision and control of the applicant’s
15construction operations.begin delete The failure of the qualifying individual
16to exercise direct supervision and control in accordance with this
17section and the regulations adopted by the board shall constitute
18grounds for disciplinary action, and shall be punishable as a
19misdemeanor by imprisonment in a county jail, by a fine of not
20less than three thousand dollars ($3,000), but not to exceed five
21thousand dollars ($5,000), or by both that imprisonment and fine.end delete
No reimbursement is required by this act pursuant to
23Section 6 of Article XIII B of the California Constitution because
24the only costs that may be incurred by a local agency or school
25district will be incurred because this act creates a new crime or
26infraction, eliminates a crime or infraction, or changes the penalty
27for a crime or infraction, within the meaning of Section 17556 of
28the Government Code, or changes the definition of a crime within
29the meaning of Section 6 of Article XIII B of the California
30Constitution.
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