BILL NUMBER: SB 315	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 22, 2014
	PASSED THE ASSEMBLY  AUGUST 14, 2014
	AMENDED IN ASSEMBLY  JULY 2, 2014
	AMENDED IN ASSEMBLY  JUNE 18, 2014
	AMENDED IN ASSEMBLY  MAY 29, 2014
	AMENDED IN SENATE  APRIL 30, 2013

INTRODUCED BY   Senator Lieu

                        FEBRUARY 15, 2013

   An act to amend Sections 7011.4, 7027.2, 7028, and 7110.5 of the
Business and Professions Code, relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 315, Lieu. 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 all forms of unlicensed activity, as specified.
The act authorizes persons employed as enforcement representatives in
the division and designated by the Director of Consumer Affairs to
issue written notices to appear in court, as specified.
   This bill would additionally require that the enforcement
division, when participating in the activities of the Joint
Enforcement Strike Force on the Underground Economy, be granted free
access to all places of labor. The bill would make other technical,
nonsubstantive changes to these provisions.
   (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 require 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.


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
that shall rigorously enforce this chapter prohibiting all forms of
unlicensed activity.
   (b) Persons employed as enforcement representatives of the
Contractors' State License Board and designated by the Director of
Consumer Affairs shall have the authority to 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. An employee so
designated is not a peace officer and is not entitled to safety
member retirement benefits as a result of that designation. He or she
does not have the power of arrest.
   (c) When participating in the activities of the Joint Enforcement
Strike Force on the Underground Economy pursuant to Section 329 of
the Unemployment Insurance Code, the enforcement division shall have
free access to all places of labor.
  SEC. 2.  Section 7027.2 of the Business and Professions Code is
amended to read:
   7027.2.  Notwithstanding any other provision of this chapter, a
person who is not licensed pursuant to this chapter may advertise for
construction work or a work of improvement covered by this chapter
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 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) Unless exempted from this chapter, it is a misdemeanor
for a person to engage in the business of, or act in the capacity of,
a contractor within this state 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 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
information or a complaint 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 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.
  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 initiate disciplinary action against the
licensee within 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.