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 insert, instead, make the qualifying person responsible for exercising that direct supervision and control to secure compliance with that law and those regulations. The bill wouldend insert makebegin insert aend insert violation of these provisions grounds for disciplinary action, and 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. 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 exerciseend deletebegin insert be responsible for exercisingend insert that direct
6supervision and control of his or her employer’s or principal’s
7construction operations begin deleteas is necessaryend delete to securebegin delete fullend delete compliance
8with this chapter and the rules and regulations of the boardbegin delete relating .
This person shall not act in the
9to the construction operationsend delete
10capacity of the qualifying person for an additional individual or
11firm unless one of the following conditions exists:
12(1) There is a common ownership of at least 20 percent of the
13equity of each individual or firm for which the person acts in a
14qualifying capacity.
15(2) The additional firm is a subsidiary of or a joint venture with
16the first. “Subsidiary,” as used in this subdivision, means any firm
17at least 20 percent of the equity of which is owned by the other
18firm.
19(3) With respect to a firm under paragraph (2), (3), or (4) of
20subdivision (b) of Section 7068, the majority of the partners,
21officers, or managers are the same.
22(b) Notwithstanding paragraphs (1) to (3), inclusive, of
23subdivision (a), a qualifying individual may act as the qualifier for
24no more than three firms in any one-year period.
25(c) The following definitions shall apply for purposes of this
26section:
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 not to exceed six months, by a fine
14of not less than three thousand dollars ($3,000), but not to exceed
15five thousand dollars ($5,000), or by both the fine and
16imprisonment.
No reimbursement is required by this act pursuant to
18Section 6 of Article XIII B of the California Constitution because
19the only costs that may be incurred by a local agency or school
20district will be incurred because this act creates a new crime or
21infraction, eliminates a crime or infraction, or changes the penalty
22for a crime or infraction, within the meaning of Section 17556 of
23the Government Code, or changes the definition of a crime within
24the meaning of Section 6 of Article XIII B of the California
25Constitution.
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