BILL NUMBER: SB 315 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 29, 2014
AMENDED IN SENATE APRIL 30, 2013
INTRODUCED BY Senator Lieu
FEBRUARY 15, 2013
An act to amend Section 367.5 of the Code of Civil
Procedure, relating to civil procedure. Sections
7011.4, 7027.2, 7028, and 7110.5 of the Business and Professions
Code, relating to cont ractors.
LEGISLATIVE COUNSEL'S DIGEST
SB 315, as amended, Lieu. Civil actions: telephonic
appearances. Contractors.
(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.
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.
(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.
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.
(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.
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.
(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.
This bill would instead authorize the registrar to initiate
disciplinary action against a licensee within 180 days of
notification by the Labor Commissioner.
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.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7011.4 of the
Business and Professions Code is amended to read:
7011.4. (a) Notwithstanding Section 7011, there is in the
Contractors' State License Board, a separate enforcement division
which shall rigorously enforce this chapter prohibiting all forms of
unlicensed activity.
(b) Persons employed as enforcement representatives in this
division and designated by the Director of Consumer Affairs are not
peace officers and are not entitled to safety member retirement
benefits. They do not have the power of arrest. However, they may
issue a written notice to appear in court pursuant to Chapter 5c
(commencing with Section 853.5) of Title 3 of Part 2 of the Penal
Code and may continue to participate in activities of the Joint
Enforcement Strike Force on the Underground Economy to
carry out the duties specified in Section 329 of the Unemployment
Insurance Code independent of the Division of Labor Standards
Enforcement .
SEC. 2. Section 7027.2 of the Business
and Professions Code is amended to read:
7027.2. Notwithstanding any other provision of this chapter,
any person a person who is not licensed
pursuant to this chapter may advertise for construction work or
a work of improvement covered by this chapter ,
provided that only if the aggregate contract price for
labor, material, and all other items on a project or undertaking is
less than five hundred dollars ($500), and he or she
shall state states in the
advertisement that he or she is not licensed under this chapter.
SEC. 3. Section 7028 of the Business
and Professions Code is amended to read:
7028. (a) It Unless exempted from this
chapter, it is a misdemeanor for a person to engage in the
business of, or act in the capacity of
of, a contractor within this state without having
a license therefor, unless the person is particularly exempted from
the provisions of this chapter. under either of the
following conditions:
(1) The person is not licensed in accordance with this chapter.
(2) The person performs acts covered by this chapter under a
license that is under suspension for failure to pay a civil penalty
or to comply with an order of correction, pursuant to Section 7090.1,
or for 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 contractor,
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 contractor, 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 an unlicensed
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 provision of law,
an indictment for any violation of this section by the
an unlicensed contractor
person shall be found found, or
an information or a complaint
filed shall be 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 contractor
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 that person
he or she had knowledge that the
contractor person was unlicensed.
(i) The changes made to this section by the act adding this
subdivision are declaratory of existing law.
SEC. 4. Section 7110.5 of the Business
and Professions Code is amended to read:
7110.5. Upon receipt of a certified copy of the Labor
Commissioner's finding of a willful or deliberate violation of the
Labor Code by a licensee, pursuant to Section 98.9 of the Labor Code,
the registrar shall may initiate
disciplinary action against the licensee within 30
180 days of notification.
SEC. 5. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 367.5 of the Code of Civil
Procedure is amended to read:
367.5. (a) It is the intent of this section to promote uniformity
in the procedures and practices relating to telephone appearances in
civil cases. To improve access to the courts and reduce litigation
costs, courts should, to the extent feasible, permit parties to
appear by telephone at appropriate conferences, hearings, and
proceedings in civil cases.
(b) Except as provided in subdivision (c), in all general civil
cases, as defined in the California Rules of Court, a party that has
provided notice may appear by telephone at any conference, hearing,
or proceeding, except a trial or trial readiness conference.
(c) The court may require a party to appear in person at a
hearing, conference, or proceeding if the court determines on a
hearing-by-hearing basis that a personal appearance would materially
assist in the determination of the proceedings or in the effective
management or resolution of the particular case.
(d) Consistent with its constitutional rulemaking authority, the
Judicial Council shall adopt rules effectuating the policies and
provisions in this section by January 1, 2008, and may adopt rules
relating to matters not covered by subdivision (a). The rules may
prescribe, but are not limited to prescribing, the notice to be given
by a party requesting a telephone appearance under subdivision (a),
the manner in which telephone appearances are to be conducted, the
conditions required for a party to be permitted to appear by
telephone, and provisions relating to the courts' use of private
vendors to provide telephone services.
(e) This section does not apply to any types of cases or types of
conferences, hearings, and proceedings except those specified in
subdivision (b). Consistent with its constitutional rulemaking
authority, the Judicial Council may by rule provide for the
procedures and practices, and for the administration of, telephone
appearances for all types of cases and matters not specified in
subdivision (b). For these other cases and matters, the Judicial
Council may specify the types of cases and matters in which parties
may appear by telephone, the types of cases and matters in which
parties shall appear personally, the conditions under which a party
may be permitted to appear by telephone, and any other rules
governing telephone and personal appearances that are within its
rulemaking authority.