BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 262
                                                                  Page  1

          Date of Hearing:   July 3, 2013


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 262 (Monning) - As Amended:  June 12, 2013  

          Policy Committee:                             Business and  
          Professions  Vote:                            12 - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill provides that failure on the part of a licensed  
          contractor to exercise direct supervision and control over a  
          construction operation shall constitute a cause for disciplinary  
          action and shall be punishable as a misdemeanor by imprisonment  
          in county jail, by a fine of not less than $3,000, but not more  
          than $5,000, or by both a fine and imprisonment.

           FISCAL EFFECT  

          1)Workload costs for the Contractors State License Board (CSLB)  
            should be minor and absorbable within existing resources. 

          2)Potential nonreimbursable costs to local government for  
            additional enforcement, offset to some extent by additional  
            fine revenues because this bill creates a new misdemeanor. 

           COMMENTS  

           1)Background and Purpose  . State law requires that every  
            construction operation be directed and supervised by a  
            qualifying individual who is listed on CSLB records as having  
            demonstrated his or her knowledge and experience in  
            construction and possesses a contractor's license.  However,  
            CSLB has found that qualifying individuals often do not  
            exercise direct supervision and control of construction  
            operations as required.  While the CSLB can take disciplinary  
            action against the qualifier for non-compliance with the  
            Contractors' Law and CSLB regulations, this bill, sponsored by  
            CSLB, would make the failure of a qualifier to exercise direct  








                                                                  SB 262
                                                                  Page  2

            supervision and control of construction operations a  
            misdemeanor punishable by fine, imprisonment or both.  

           2)Related Legislation  . SB 261 (Monning) of 2013 would authorize  
            CSLB to take administrative action against an individual who  
            commits a misdemeanor for the improper use of a contractor's  
            license, as specified.  This bill is pending in this  
            committee. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081