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