SB 465,
as amended, Hill. Contractors’ State Licensebegin delete Board.end deletebegin insert Board: licensees: bond requirement.end insert
Under existing law, the Contractors’ State License Law, the Contractors’ State License Board is responsible for the licensure and regulation of contractors and is required to appoint a registrar of contractors. Existing law repeals these provisions establishing the board and requiring it to appoint a registrar on January 1, 2016.
This bill would extend these repeal dates to January 1, 2020.
begin insertExisting law requires every applicant for an original license, the reactivation of an inactive license, or the reissuance or reinstatement of a revoked license to evidence financial solvency, as specified, and requires the registrar to deny the application of any applicant who fails to comply with that requirement. Existing law, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, requires the applicant or licensee to file or have on file a contractor’s bond in the sum of $12,500.
end insertbegin insertThis bill would repeal that evidence of financial solvency requirement and would instead require that bond to be in the sum of $15,000.
end insertVote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 7000.5 of the Business and Professions
2Code is amended to read:
(a) There is in the Department of Consumer Affairs
4a Contractors’ State License Board, which consists of 15 members.
5(b) Notwithstanding any other provision of law, the repeal of
6this section renders the board subject to review by the appropriate
7policy committees of the Legislature.
8(c) This section shall remain in effect only until January 1, 2020,
9and as of that date is repealed, unless a later enacted statute, that
10is enacted before January 1, 2020, deletes or extends that date.
Section 7011 of the Business and Professions Code is
12amended to read:
(a) The board, by and with the approval of the director,
14shall appoint a registrar of contractors and fix his or her
15compensation.
16(b) The registrar shall be the executive officer and secretary of
17the board and shall carry out all of the administrative duties as
18provided in this chapter and as delegated to him or her by the
19board.
20(c) For the purpose of administration of this chapter, there may
21be appointed a deputy registrar, a chief reviewing and hearing
22officer, and, subject to Section 159.5, other assistants and
23subordinates as may be necessary.
24(d) Appointments shall be made in accordance with the
25provisions of civil service laws.
26(e) This section shall remain in effect only until January 1,
2020,
27and as of that date is repealed, unless a later enacted statute, that
28is enacted before January 1, 2020, deletes or extends that date.
begin insertSection 7067.5 of the end insertbegin insertBusiness and Professions Codeend insert
30begin insert is repealed.end insert
Every applicant for an original license, or for the
32reactivation of an inactive license, or for the reissuance or
33reinstatement of a revoked license shall possess and every such
34applicant, other than one applying under Section 7029 unless
35required by the registrar, shall evidence financial solvency. The
36registrar shall deny the application of any applicant who fails to
37comply with this section. For purposes of this section financial
P3 1solvency shall mean that the applicant’s operating capital shall
2exceed two thousand five hundred dollars ($2500).
3The applicant shall provide answers to questions contained in a
4standard form of questionnaire as required by the registrar relative
5to his financial ability and condition and signed by the applicant
6under penalty of perjury.
7In any case in which further financial information would assist
8the registrar in an investigation, the registrar may obtain such
9information or may require any licensee or applicant under
10investigation pursuant to this chapter to provide such additional
11financial information as the registrar may deem necessary.
12The financial information required by the registrar shall be
13confidential and not a public record, but, where relevant, shall be
14admissible as evidence in any administrative hearing or judicial
15action or proceeding.
16The registrar may destroy any financial information which has
17been on file for a period of at least three years.
begin insertSection 7071.6 of the end insertbegin insertBusiness and Professions Codeend insert
19begin insert is amended to read:end insert
(a) The board shall require as a condition precedent
21to the issuance, reinstatement, reactivation, renewal, or continued
22maintenance of a license, that the applicant or licensee file or have
23on file a contractor’s bond in the sum ofbegin delete twelve thousand five begin insert fifteen thousand dollars ($15,000).end insert
24hundred dollars ($12,500).end delete
25(b) Excluding the claims brought by the beneficiaries specified
26in subdivision (a) of Section 7071.5, the aggregate liability of a
27surety on claims brought against a bond required by this section
28shall not exceed the sum
of seven thousand five hundred dollars
29($7,500). The bond proceeds in excess of seven thousand five
30hundred dollars ($7,500) shall be reserved exclusively for the
31claims of the beneficiaries specified in subdivision (a) of Section
327071.5. However, nothing in this section shall be construed so as
33to prevent any beneficiary specified in subdivision (a) of Section
347071.5 from claiming or recovering the full measure of the bond
35required by this section.
36(c) No bond shall be required of a holder of a license that has
37been inactivated on the official records of the board during the
38period the license is inactive.
39(d) Notwithstanding any otherbegin delete provision ofend delete law, as a condition
40precedent to licensure, the board may require an applicant to post
P4 1a contractor’s bond in twice the amount required pursuant to
2
subdivision (a) until the time that the license is renewed, under the
3following conditions:
4(1) The applicant has either been convicted of a violation of
5Section 7028 or has been cited pursuant to Section 7028.7.
6(2) If the applicant has been cited pursuant to Section 7028.7,
7the citation has been reduced to a final order of the registrar.
8(3) The violation of Section 7028, or the basis for the citation
9issued pursuant to Section 7028.7, constituted a substantial injury
10to the public.
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