BILL NUMBER: SB 263	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 21, 2014
	AMENDED IN ASSEMBLY  JUNE 5, 2013
	AMENDED IN SENATE  APRIL 22, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Monning
    (   Principal coauthor: 
 Assembly Member   Achadjian 
 )

                        FEBRUARY 13, 2013

   An act to amend  Section 7028 of the Business and
Professions Code, relating to contractors   Section 1071
of the Labor Code, relating to employment  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 263, as amended, Monning.  Contractors: unlicensed
activity.   Private employment: public transit
employees.  
   Existing law requires a local government agency to give a 10%
preference to any bidder on a service contract to provide public
transit services who agrees to retain employees of the prior
contractor or subcontractor for a period of not less than 90 days, as
specified.  
   This bill would expand these provisions to require a state agency
to also give a 10% preference to any bidder under these provisions.
 
   The Contractors' State License Law provides for the licensure and
regulation of contractors by the Contractors' State License Board
within the Department of Consumer Affairs.  
   The Contractors' State License Law makes it a misdemeanor for a
person to engage in the business or act in the capacity of a
contractor without having a license, unless the person is
particularly exempted.  
   This bill, instead, would provide that, unless exempted, it is a
misdemeanor for a person to engage in the business or act in the
capacity of a contractor if the person either has never been licensed
pursuant to the Contractors' State License Law, or the person was a
licensee, but performed acts covered by the law under a license that
was under suspension for failure to pay a civil penalty or comply
with an order of correction, or failure to resolve all outstanding
final liabilities, as specified. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 1071 of the   Labor
Code   is amended to read: 
   1071.  The following definitions apply throughout this chapter:
   (a) "Awarding authority" means any  state or  local
government agency, including , but not limited to,  any
city, county, special district, transit district, joint powers
authority, or nonprofit corporation that awards or otherwise enters
into contracts for public transit services performed within the
 State of California   state  .
   (b) "Bidder" means any person who submits a bid to an awarding
agency for a public transit service contract or subcontract.
   (c) "Contractor" means any person who enters into a public transit
service contract with an awarding authority.
   (d) "Employee" means any person who works for a contractor or
subcontractor under a contract. "Employee" does not include an
executive, administrative, or professional employee exempt from the
payment of overtime compensation within the meaning of subdivision
(a) of Section 515 or any person who is not an "employee" as defined
under Section 2(3) of the National Labor Relations Act (29 U.S.C.
Sec. 152(3)).
   (e) "Person" means any individual, proprietorship, partnership,
joint venture, corporation, limited liability company, trust,
association, or other entity that may employ individuals or enter
into contracts.
   (f) "Public transit services" means the provision of passenger
transportation services to the general public, including paratransit
service.
   (g) "Service contract" means any contract the principal purpose of
which is to provide public transit services through the use of
service employees.
   (h) "Subcontractor" means any person who is not an employee who
enters into a contract with a contractor to assist the contractor in
performing a service contract. 
  SECTION 1.    Section 7028 of the Business and
Professions Code is amended to read:
   7028.  (a) Unless exempted from this chapter, it is a misdemeanor
for a person to engage in the business or act in the capacity of a
contractor within this state under either of the following
conditions:
   (1) The person has never been licensed in accordance with this
chapter.
   (2) The person was a licensee, as defined in Section 7096, but
performed acts covered by this chapter under a license that was under
suspension for failure to pay a civil penalty or comply with an
order of correction, pursuant to Section 7090.1, or failure to
resolve all outstanding final liabilities, pursuant to Section
7145.5.
   (b) A first conviction for the offense described in this section
is punishable by a fine not exceeding five thousand dollars ($5,000)
or by imprisonment in a county jail not exceeding six months, or by
both that fine and imprisonment.
   (c) If a person has been previously convicted of the offense
described in this section, unless the provisions of subdivision (d)
are applicable, the court shall impose a fine of 20 percent of the
contract price, or 20 percent of the aggregate payments made to, or
at the direction of, the unlicensed person, or five thousand dollars
($5,000), whichever is greater, and, unless the sentence prescribed
in subdivision (d) is imposed, the person shall be confined in a
county jail for not less than 90 days, except in an unusual case
where the interests of justice would be served by imposition of a
lesser sentence or a fine. If the court imposes only a fine or a jail
sentence of less than 90 days for second or subsequent convictions
under this section, the court shall state the reasons for its
sentencing choice on the record.
   (d) A third or subsequent conviction for the offense described in
this section is punishable by a fine of not less than five thousand
dollars ($5,000) nor more than the greater amount of ten thousand
dollars ($10,000) or 20 percent of the contract price, or 20 percent
of the aggregate payments made to, or at the direction of, the
unlicensed person, and by imprisonment in a county jail for not more
than one year or less than 90 days. The penalty provided by this
subdivision is cumulative to the penalties available under all other
laws of this state.
   (e) A person who violates this section is subject to the penalties
prescribed in subdivision (d) if the person was named on a license
that was previously revoked and, either in fact or under law, was
held responsible for any act or omission resulting in the revocation.

   (f) If the unlicensed person engaging in the business of or acting
in the capacity of a contractor has agreed to furnish materials and
labor on an hourly basis, "the contract price" for the purposes of
this section means the aggregate sum of the cost of materials and
labor furnished and the cost of completing the work to be performed.
   (g) Notwithstanding any other law, an indictment for any violation
of this section by an unlicensed person shall be found, or an
information or complaint filed, within four years from the date of
the contract proposal, contract, completion, or abandonment of the
work, whichever occurs last.
   (h) For any conviction under this section, a person who utilized
the services of the unlicensed person is a victim of crime and is
eligible, pursuant to subdivision (f) of Section 1202.4 of the Penal
Code, for restitution for economic losses, regardless of whether he
or she had knowledge that the person was unlicensed.
   (i) The changes made to this section by the act adding this
subdivision are declaratory of existing law.