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 require the qualifying individual to meet specified requirements with respect to his or her employer’s or principal’s construction operations. The
bill would alsoend delete make violation of these provisions grounds for disciplinary action, andbegin delete punishable as a misdemeanor.end deletebegin insert a misdemeanor punishable by imprisonment in a county jail not to exceed 6 months, by a fine of not less than $3,000, but not to exceed $5,000, or by both that imprisonment and fine.end insert 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 shallbegin delete be responsible for meeting the requirements of begin insert exercise that direct supervision and control ofend insert his or her
6Section 823 of Title 16 of the California Code of Regulations with
7respect toend delete
8employer’s or principal’s construction operationsbegin insert as is necessaryend insert
9 to secure full compliance with this chapterbegin insert
and the rules and
10regulations of the board relating to the construction operationsend insert.
11This person shall not act in the capacity of the qualifying person
12for an additional individual or firm unless one of the following
13conditions exists:
14(1) There is a common ownership of at least 20 percent of the
15equity of each individual or firm for which the person acts in a
16qualifying capacity.
17(2) 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(3) With respect to a firm under paragraph (2), (3), or (4) of
22subdivision (b) of Section 7068, the
majority of the partners,
23officers, or managers are the same.
24(b) Notwithstanding paragraphs (1) to (3), inclusive, of
25subdivision (a), a qualifying individual may act as the qualifier for
26no more than three firms in any one-year period.
P3 1(c) The following definitions shall apply for purposes of this
2section:
3(1) “Firm” means a partnership, a limited partnership, a
4corporation, a limited liability company, or any other combination
5or organization described in Section 7068.
6(2) “Person” is limited to natural persons, notwithstanding the
7definition of “person” in Section 7025.
8(d) The board shall
require every applicant or licensee qualifying
9by the appearance of a qualifying individual to submit detailed
10information on the qualifying individual’s duties and
11responsibilities for supervision and control of the applicant’s
12construction operations.
13(e) Violation of this section shall constitute a cause for
14disciplinary action and shall be punishable as a misdemeanor by
15imprisonment in a county jailbegin insert
not to exceed six monthsend insert, by a fine
16of not less than three thousand dollars ($3,000), but not to exceed
17five thousand dollars ($5,000), or by both the fine and
18imprisonment.
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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