Amended in Assembly July 8, 2015

Amended in Assembly July 1, 2015

Amended in Senate April 21, 2015

Senate BillNo. 465


Introduced by Senator Hill

February 25, 2015


An act to amend Section 7124.6 of, and to add Sections 7071.18 and 7071.20 to, the Business and Professions Code, relating to professions and vocations.

LEGISLATIVE COUNSEL’S DIGEST

SB 465, as amended, Hill. Contractors: discipline.

Existing law, the Contractors’ State License Law, provides for the licensure and regulation of contractors by the Contractors’ State License Board. Existing law requires the board, with the approval of the Director of Consumer Affairs, to appoint a registrar of contractors to serve as the executive officer and secretary of the board.

This bill would require a licensee to report to the registrar within 90 days of the date that the licensee has knowledge of the conviction of the licensee of any felony or any other crime substantially related to the qualifications, functions, and duties of a licensed contractor, or any civil action settlement or administrative action resulting in a settlement worth $50,000 or more, or a binding arbitration or administrative action resulting in binding arbitration worth $25,000 or more, resulting from specified acts. Failure to comply with this requirement would be grounds for disciplinary action. The bill would also require any insurer providing professional liability insurance to a licensee or a state or local government agency that self-insures that licensee to, within 30 days of payment of all or any portion of a civil action settlement or binding arbitration award against the licensee, report to the registrar the name of the licensee, the amount of value of the settlement or binding arbitration award, the amount paid, and the identity of the payee. The bill would make these provisions operative if the Legislature appropriates moneys from the Contractors’ License Fund for these purposes and grants sufficient hiring authority to the board.

begin insert

Existing law requires the registrar of contractors to make available to the public the date, nature, and status of complaints against a licensee that have been referred for investigation regarding allegations that if proven would present a risk of harm to the public.

end insert

The bill would require the registrar to make available to the public all civil action settlements, binding arbitration awards, and administrative actionsbegin delete reported to itend delete pursuant tobegin delete these provisionsend deletebegin insert that provisionend insert.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 7071.18 is added to the Business and
2Professions Code
, to read:

3

7071.18.  

(a) Notwithstanding any other law, a licensee shall
4report to the registrar in writing the occurrence of any of the
5following within 90 days after the licensee obtains knowledge of
6the event:

7(1) The conviction of the licensee for any felony.

8(2) The conviction of the licensee for any other crime that is
9substantially related to the qualifications, functions, and duties of
10a licensed contractor.

11(3) Any civil action settlement or administrative action resulting
12in a settlement against the licensee in any action involving fraud,
13deceit, misrepresentation, breach or violation of contract,
14negligence, incompetence, or recklessness by the licensee in the
15practice of contracting, if the amount or value of the settlement is
16fifty thousand dollars ($50,000) or greater.

17(4) A binding arbitration award or administrative action resulting
18in a binding arbitration award against the licensee in any action
19involving fraud, deceit, misrepresentation, breach or violation of
20contract, negligence, incompetence, or recklessness by the licensee
P3    1in the practice of contracting, if the amount or value of the
2settlement is twenty-five thousand dollars ($25,000) or greater.

3(b) Failure of a licensee to report to the registrar pursuant to
4subdivision (a) shall be grounds for disciplinary action.

5(c) For the purposes of this section, “conviction” means a plea
6or verdict of guilty in a criminal proceeding, or a conviction
7following a plea of nolo contendere.

8(d) This section shall become operative only if the Legislature
9appropriates moneys from the Contractors’ License Fund for the
10purposes of this section and grants sufficient hiring authority to
11the board.

12

SEC. 2.  

Section 7071.20 is added to the Business and
13Professions Code
, to read:

14

7071.20.  

(a) Within 30 days of payment of all or any portion
15of a civil action settlement or arbitration award against a licensee,
16as described in Section 7017.18, the insurer providing professional
17liability insurance to the licensee shall report to the registrar the
18name of the licensee, the amount of value of the settlement or
19binding arbitration award, the amount paid, and the identity of the
20payee.

21(b) Within 30 days of payment of all or any portion of a civil
22action settlement or arbitration award against a licensee, as
23described in Section 7017.18, a state or local government agency
24that self-insures shall report to the registrar the name of the
25licensee, the amount of value of the settlement or binding
26arbitration award, the amount paid, and the identity of the payee.

27(c) This section shall become operative only if the Legislature
28appropriates moneys from the Contractors’ License Fund for the
29purposes of this section and grants sufficient hiring authority to
30the board.

31

SEC. 3.  

Section 7124.6 of the Business and Professions Code
32 is amended to read:

33

7124.6.  

(a) The registrar shall make available to members of
34the public the date, nature, and status of all complaints on file
35against a licensee that do either of the following:

36(1) Have been referred for accusation.

37(2) Have been referred for investigation after a determination
38by board enforcement staff that a probable violation has occurred,
39and have been reviewed by a supervisor, and regard allegations
40that if proven would present a risk of harm to the public and would
P4    1be appropriate for suspension or revocation of the contractor’s
2license or criminal prosecution.

3(b) The board shall create a disclaimer that shall accompany
4the disclosure of a complaint that shall state that the complaint is
5an allegation. The disclaimer may also contain any other
6information the board determines would be relevant to a person
7evaluating the complaint.

8(c) A complaint resolved in favor of the contractor shall not be
9subject to disclosure.

10(d) Except as described in subdivision (e), the registrar shall
11make available to members of the public the date, nature, and
12disposition of all legal actions.

13(e) Disclosure of legal actions shall be limited as follows:

14(1) Citations shall be disclosed from the date of issuance and
15for five years after the date of compliance if no additional
16disciplinary actions have been filed against the licensee during the
17five-year period. If additional disciplinary actions were filed against
18the licensee during the five-year period, all disciplinary actions
19shall be disclosed for as long as the most recent disciplinary action
20is subject to disclosure under this section. At the end of the
21specified time period, those citations shall no longer be disclosed.

22(2) Accusations that result in suspension, stayed suspension, or
23 stayed revocation of the contractor’s license shall be disclosed
24from the date the accusation is filed and for seven years after the
25accusation has been settled, including the terms and conditions of
26probation if no additional disciplinary actions have been filed
27against the licensee during the seven-year period. If additional
28disciplinary actions were filed against the licensee during the
29seven-year period, all disciplinary actions shall be posted for as
30long as the most recent disciplinary action is subject to disclosure
31under this section. At the end of the specified time period, those
32accusations shall no longer be disclosed.

33(3) All revocations that are not stayed shall be disclosed
34indefinitely from the effective date of the revocation.

35(f) The registrar shall make available to the public all civil action
36settlements, binding arbitration awards, and administrative actions
37begin delete reported to it pursuant to Section 7071.18.end deletebegin insert pursuant to paragraph
38(2) of subdivision (a).end insert



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