BILL NUMBER: SB 465	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 21, 2015

INTRODUCED BY   Senator Hill

                        FEBRUARY 25, 2015

   An act to amend Sections  7000.5 and 7011 of 
 7000.5, 7011, and 7071.6 of, and to repeal Section 7067.5 of,
 the Business and Professions Code, relating to professions and
vocations.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 465, as amended, Hill. Contractors' State License 
Board.   Board: licensees: bond requirement. 
   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. 

   Existing 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.  
   This bill would repeal that evidence of financial solvency
requirement and would instead require that bond to be in the sum of
$15,000. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 7000.5 of the Business and Professions Code is
amended to read:
   7000.5.  (a) There is in the Department of Consumer Affairs a
Contractors' State License Board, which consists of 15 members.
   (b) Notwithstanding any other provision of law, the repeal of this
section renders the board subject to review by the appropriate
policy committees of the Legislature.
   (c) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
  SEC. 2.  Section 7011 of the Business and Professions Code is
amended to read:
   7011.  (a) The board, by and with the approval of the director,
shall appoint a registrar of contractors and fix his or her
compensation.
   (b) The registrar shall be the executive officer and secretary of
the board and shall carry out all of the administrative duties as
provided in this chapter and as delegated to him or her by the board.

   (c) For the purpose of administration of this chapter, there may
be appointed a deputy registrar, a chief reviewing and hearing
officer, and, subject to Section 159.5, other assistants and
subordinates as may be necessary.
   (d) Appointments shall be made in accordance with the provisions
of civil service laws.
   (e) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
   SEC. 3.    Section 7067.5 of the   Business
and Professions Code   is repealed.  
   7067.5.  Every applicant for an original license, or for the
reactivation of an inactive license, or for the reissuance or
reinstatement of a revoked license shall possess and every such
applicant, other than one applying under Section 7029 unless required
by the registrar, shall evidence financial solvency. The registrar
shall deny the application of any applicant who fails to comply with
this section. For purposes of this section financial solvency shall
mean that the applicant's operating capital shall exceed two thousand
five hundred dollars ($2500).
   The applicant shall provide answers to questions contained in a
standard form of questionnaire as required by the registrar relative
to his financial ability and condition and signed by the applicant
under penalty of perjury.
   In any case in which further financial information would assist
the registrar in an investigation, the registrar may obtain such
information or may require any licensee or applicant under
investigation pursuant to this chapter to provide such additional
financial information as the registrar may deem necessary.
   The financial information required by the registrar shall be
confidential and not a public record, but, where relevant, shall be
admissible as evidence in any administrative hearing or judicial
action or proceeding.
   The registrar may destroy any financial information which has been
on file for a period of at least three years. 
   SEC. 4.    Section 7071.6 of the  Business
and Professions Code   is amended to read: 
   7071.6.  (a) The board shall require as a condition precedent to
the issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee file or have
on file a contractor's bond in the sum of  twelve thousand
five hundred dollars ($12,500).   fifteen thousand
dollars ($15,000). 
   (b) Excluding the claims brought by the beneficiaries specified in
subdivision (a) of Section 7071.5, the aggregate liability of a
surety on claims brought against a bond required by this section
shall not exceed the sum of seven thousand five hundred dollars
($7,500). The bond proceeds in excess of seven thousand five hundred
dollars ($7,500) shall be reserved exclusively for the claims of the
beneficiaries specified in subdivision (a) of Section 7071.5.
However, nothing in this section shall be construed so as to prevent
any beneficiary specified in subdivision (a) of Section 7071.5 from
claiming or recovering the full measure of the bond required by this
section.
   (c) No bond shall be required of a holder of a license that has
been inactivated on the official records of the board during the
period the license is inactive.
   (d) Notwithstanding any other  provision of  law,
as a condition precedent to licensure, the board may require an
applicant to post a contractor's bond in twice the amount required
pursuant to subdivision (a) until the time that the license is
renewed, under the following conditions:
   (1) The applicant has either been convicted of a violation of
Section 7028 or has been cited pursuant to Section 7028.7.
   (2) If the applicant has been cited pursuant to Section 7028.7,
the citation has been reduced to a final order of the registrar.
   (3) The violation of Section 7028, or the basis for the citation
issued pursuant to Section 7028.7, constituted a substantial injury
to the public.