Amended in Assembly May 29, 2014

Amended in Senate April 30, 2013

Senate BillNo. 315


Introduced by Senator Lieu

February 15, 2013


An act to amendbegin delete Section 367.5 of the Code of Civil Procedure, relating to civil procedure.end deletebegin insert Sections 7011.4, 7027.2, 7028, and 7110.5 of the Business and Professions Code, relating to contractors.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 315, as amended, Lieu. begin deleteCivil actions: telephonic appearances. end deletebegin insertContractors.end insert

begin insert

(1) 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 act establishes an enforcement division within the board that is required to enforce prohibitions against unlicensed activity, as specified. The act authorizes persons employed as enforcement representatives in the division to issue written notices to appear in court, as specified.

end insert
begin insert

This bill would additionally authorize these enforcement representatives to continue to participate in activities of the Joint Enforcement Strike Force on the Underground Economy, as specified.

end insert
begin insert

(2) The act makes it a misdemeanor for a person to engage in the business of, or act in the capacity of, a contractor within this state without having a license, unless particularly exempted.

end insert
begin insert

This bill would instead provide that, unless exempted, it is a misdemeanor for a person to engage in the business of, or act in the capacity of, a contractor within this state if the person is not licensed in accordance with the act, or if the person performs acts covered by the act under a license that is under suspension for specified violations.

end insert
begin insert

(3) The act provides that it is a misdemeanor for any person to advertise for construction or work of improvement unless that person holds a valid license in the classification so advertised, except as specified. However, the act authorizes a person who is not licensed as a contractor to advertise for construction work or work of improvement if he or she states in the advertisement that he or she is not licensed, as specified. The act also exempts from its application any work or operation on one undertaking or project by one or more contracts if the aggregate contract price for labor, materials, and all other items is less than $500, and the work or operations are casual, minor, or inconsequential.

end insert
begin insert

This bill would authorize a person who is not licensed as a contractor to advertise for construction work or a work of improvement only if the aggregate contract price is less than $500 and the person states in the advertisement that he or she is not licensed. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.

end insert
begin insert

(4) The act authorizes the board to appoint a registrar of contractors. Existing law requires the registrar to initiate disciplinary action against a licensee within 30 days of notification by the Labor Commissioner of a finding of a willful or deliberate violation of the Labor Code.

end insert
begin insert

This bill would instead authorize the registrar to initiate disciplinary action against a licensee within 180 days of notification by the Labor Commissioner.

end insert
begin insert

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.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin delete

Existing law provides that courts should, to the extent feasible, permit parties to appear by telephone at appropriate conferences, hearings, and proceedings in civil cases to improve access to the courts and reduce litigation costs. Existing law permits a party to make appearances by telephone at specified conferences, hearings, and proceedings.

end delete
begin delete end deletebegin delete

This bill would expand the circumstances under which a party may appear by telephone to include all conferences, hearings, and proceedings except a trial and a trial readiness conference.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 7011.4 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

7011.4.  

(a) Notwithstanding Section 7011, there is in the
4Contractors’ State License Board, a separate enforcement division
5which shall rigorously enforce this chapter prohibiting all forms
6of unlicensed activity.

7(b) Persons employed as enforcement representatives in this
8division and designated by the Director of Consumer Affairs are
9not peace officers and are not entitled to safety member retirement
10benefits. They do not have the power of arrest. However, they may
11issue a written notice to appear in court pursuant to Chapter 5c
12(commencing with Section 853.5) of Title 3 of Part 2 of the Penal
13Codebegin insert and may continue to participate in activities of the Joint
14Enforcement Strike Force on the Underground Economy to carry
15out the duties specified in Section 329 of the Unemployment
16Insurance Code independent of the Division of Labor Standards
17Enforcementend insert
.

18begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 7027.2 of the end insertbegin insertBusiness and Professions Codeend insert
19begin insert is amended to read:end insert

20

7027.2.  

Notwithstanding any other provision of this chapter,
21begin delete any personend deletebegin insert a person who isend insert not licensed pursuant to this chapter
22may advertise for construction work orbegin insert aend insert work of improvement
23covered by this chapterbegin delete, provided thatend deletebegin insert only if the aggregate contract
24price for labor, material, and all other items on a project or
25undertaking is less than five hundred dollars ($500), andend insert
he or she
26begin delete shall stateend deletebegin insert statesend insert in the advertisement that he or she is not licensed
27under this chapter.

28begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 7028 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
29amended to read:end insert

30

7028.  

(a) begin deleteIt end deletebegin insertUnless exempted from this chapter, it end insertis a
31misdemeanor for a person to engage in the businessbegin insert of,end insert or act in
32the capacitybegin delete ofend deletebegin insert of,end insert a contractor within this statebegin delete without having a
33license therefor, unless the person is particularly exempted from
34the provisions of this chapter.end delete
begin insert under either of the following
35conditions:end insert

begin insert

P4    1(1) The person is not licensed in accordance with this chapter.

end insert
begin insert

2(2) The person performs acts covered by this chapter under a
3license that is under suspension for failure to pay a civil penalty
4or to comply with an order of correction, pursuant to Section
57090.1, or for failure to resolve all outstanding final liabilities,
6pursuant to Section 7145.5.

end insert

7(b) A first conviction for the offense described in this section
8is punishable by a fine not exceeding five thousand dollars ($5,000)
9or by imprisonment in a county jail not exceeding six months, or
10by both that fine and imprisonment.

11(c) If a person has been previously convicted of the offense
12described in this section, unless the provisions of subdivision (d)
13are applicable, the court shall impose a fine of 20 percent of the
14contract price, or 20 percent of the aggregate payments made to,
15or at the direction of, the unlicensedbegin delete contractor,end deletebegin insert person,end insert or five
16thousand dollars ($5,000), whichever is greater, and, unless the
17sentence prescribed in subdivision (d) is imposed, the person shall
18be confined in a county jail for not less than 90 days, except in an
19unusual case where the interests of justice would be served by
20imposition of a lesser sentence or a fine. If the court imposes only
21a fine or a jail sentence of less than 90 days for second or
22subsequent convictions under this section, the court shall state the
23reasons for its sentencing choice on the record.

24(d) A third or subsequent conviction for the offense described
25in this section is punishable by a fine of not less than five thousand
26dollars ($5,000) nor more than the greater amount of ten thousand
27dollars ($10,000) or 20 percent of the contract price, or 20 percent
28of the aggregate payments made to, or at the direction of, the
29unlicensedbegin delete contractor,end deletebegin insert person,end insert and by imprisonment in a county
30jail for not more than one year or less than 90 days. The penalty
31provided by this subdivision is cumulative to the penalties available
32under all other laws of this state.

33(e) A person who violates this section is subject to the penalties
34prescribed in subdivision (d) if the person was named on a license
35that was previously revoked and, either in fact or under law, was
36held responsible for any act or omission resulting in the revocation.

37(f) If thebegin insert unlicensedend insert person engaging in the business of or acting
38in the capacity ofbegin delete an unlicensedend deletebegin insert aend insert contractor has agreed to furnish
39materials and labor on an hourly basis, “the contract price” for the
40purposes of this section means the aggregate sum of the cost of
P5    1materials and labor furnished and the cost of completing the work
2to be performed.

3(g) Notwithstanding any otherbegin delete provision ofend delete law, an indictment
4for any violation of this section bybegin delete theend deletebegin insert anend insert unlicensedbegin delete contractorend delete
5begin insert personend insert shall bebegin delete foundend deletebegin insert found,end insert orbegin delete anend delete information orbegin insert aend insert complaintbegin delete filedend delete
6begin insert shall be filed,end insert within four years from the date of the contract
7proposal, contract, completion, or abandonment of the work,
8whichever occurs last.

9(h) For any conviction under this section, a person who utilized
10the services of the unlicensedbegin delete contractorend deletebegin insert personend insert is a victim of crime
11and is eligible, pursuant to subdivision (f) of Section 1202.4 of the
12Penal Code, for restitution for economic losses, regardless of
13whetherbegin delete that personend deletebegin insert he or sheend insert had knowledge that thebegin delete contractorend delete
14begin insert personend insert was unlicensed.

begin insert

15(i) The changes made to this section by the act adding this
16subdivision are declaratory of existing law.

end insert
17begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 7110.5 of the end insertbegin insertBusiness and Professions Codeend insert
18begin insert is amended to read:end insert

19

7110.5.  

Upon receipt of a certified copy of the Labor
20Commissioner’s finding of a willful or deliberate violation of the
21Labor Code by a licensee, pursuant to Section 98.9 of the Labor
22Code, the registrarbegin delete shallend deletebegin insert mayend insert initiate disciplinary action against
23the licensee withinbegin delete 30end deletebegin insert 180end insert days of notification.

24begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
25Section 6 of Article XIII B of the California Constitution because
26the only costs that may be incurred by a local agency or school
27district will be incurred because this act creates a new crime or
28infraction, eliminates a crime or infraction, or changes the penalty
29for a crime or infraction, within the meaning of Section 17556 of
30the Government Code, or changes the definition of a crime within
31the meaning of Section 6 of Article XIII B of the California
32Constitution.

end insert
begin delete
33

SECTION 1.  

Section 367.5 of the Code of Civil Procedure is
34amended to read:

35

367.5.  

(a) It is the intent of this section to promote uniformity
36in the procedures and practices relating to telephone appearances
37in civil cases. To improve access to the courts and reduce litigation
38costs, courts should, to the extent feasible, permit parties to appear
39by telephone at appropriate conferences, hearings, and proceedings
40in civil cases.

P6    1(b) Except as provided in subdivision (c), in all general civil
2cases, as defined in the California Rules of Court, a party that has
3provided notice may appear by telephone at any conference,
4hearing, or proceeding, except a trial or trial readiness conference.

5(c) The court may require a party to appear in person at a
6hearing, conference, or proceeding if the court determines on a
7hearing-by-hearing basis that a personal appearance would
8materially assist in the determination of the proceedings or in the
9effective management or resolution of the particular case.

10(d) Consistent with its constitutional rulemaking authority, the
11Judicial Council shall adopt rules effectuating the policies and
12provisions in this section by January 1, 2008, and may adopt rules
13relating to matters not covered by subdivision (a). The rules may
14prescribe, but are not limited to prescribing, the notice to be given
15by a party requesting a telephone appearance under subdivision
16(a), the manner in which telephone appearances are to be
17conducted, the conditions required for a party to be permitted to
18appear by telephone, and provisions relating to the courts’ use of
19private vendors to provide telephone services.

20(e) This section does not apply to any types of cases or types
21of conferences, hearings, and proceedings except those specified
22in subdivision (b). Consistent with its constitutional rulemaking
23authority, the Judicial Council may by rule provide for the
24procedures and practices, and for the administration of, telephone
25appearances for all types of cases and matters not specified in
26subdivision (b). For these other cases and matters, the Judicial
27Council may specify the types of cases and matters in which parties
28may appear by telephone, the types of cases and matters in which
29parties shall appear personally, the conditions under which a party
30may be permitted to appear by telephone, and any other rules
31governing telephone and personal appearances that are within its
32rulemaking authority.

end delete


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