BILL NUMBER: SB 465	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 8, 2015
	AMENDED IN ASSEMBLY  JULY 1, 2015
	AMENDED IN SENATE  APRIL 21, 2015

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. 
   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. 
   The bill would require the registrar to make available to the
public all civil action settlements, binding arbitration awards, and
administrative actions  reported to it  pursuant to
 these provisions   that provision  .
   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 7071.18 is added to the Business and
Professions Code, to read:
   7071.18.  (a) Notwithstanding any other law, a licensee shall
report to the registrar in writing the occurrence of any of the
following within 90 days after the licensee obtains knowledge of the
event:
   (1) The conviction of the licensee for any felony.
   (2) The conviction of the licensee for any other crime that is
substantially related to the qualifications, functions, and duties of
a licensed contractor.
   (3) Any civil action settlement or administrative action resulting
in a settlement against the licensee in any action involving fraud,
deceit, misrepresentation, breach or violation of contract,
negligence, incompetence, or recklessness by the licensee in the
practice of contracting, if the amount or value of the settlement is
fifty thousand dollars ($50,000) or greater.
   (4) A binding arbitration award or administrative action resulting
in a binding arbitration award against the licensee in any action
involving fraud, deceit, misrepresentation, breach or violation of
contract, negligence, incompetence, or recklessness by the licensee
in the practice of contracting, if the amount or value of the
settlement is twenty-five thousand dollars ($25,000) or greater.
   (b) Failure of a licensee to report to the registrar pursuant to
subdivision (a) shall be grounds for disciplinary action.
   (c) For the purposes of this section, "conviction" means a plea or
verdict of guilty in a criminal proceeding, or a conviction
following a plea of nolo contendere.
   (d) This section shall become operative only if the Legislature
appropriates moneys from the Contractors' License Fund for the
purposes of this section and grants sufficient hiring authority to
the board.
  SEC. 2.  Section 7071.20 is added to the Business and Professions
Code, to read:
   7071.20.  (a) Within 30 days of payment of all or any portion of a
civil action settlement or arbitration award against a licensee, as
described in Section 7017.18, the insurer providing professional
liability insurance to the licensee shall 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.
   (b) Within 30 days of payment of all or any portion of a civil
action settlement or arbitration award against a licensee, as
described in Section 7017.18, a state or local government agency that
self-insures shall 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.
   (c) This section shall become operative only if the Legislature
appropriates moneys from the Contractors' License Fund for the
purposes of this section and grants sufficient hiring authority to
the board.
  SEC. 3.  Section 7124.6 of the Business and Professions Code is
amended to read:
   7124.6.  (a) The registrar shall make available to members of the
public the date, nature, and status of all complaints on file against
a licensee that do either of the following:
   (1) Have been referred for accusation.
   (2) Have been referred for investigation after a determination by
board enforcement staff that a probable violation has occurred, and
have been reviewed by a supervisor, and regard allegations that if
proven would present a risk of harm to the public and would be
appropriate for suspension or revocation of the contractor's license
or criminal prosecution.
   (b) The board shall create a disclaimer that shall accompany the
disclosure of a complaint that shall state that the complaint is an
allegation. The disclaimer may also contain any other information the
board determines would be relevant to a person evaluating the
complaint.
   (c) A complaint resolved in favor of the contractor shall not be
subject to disclosure.
   (d) Except as described in subdivision (e), the registrar shall
make available to members of the public the date, nature, and
disposition of all legal actions.
   (e) Disclosure of legal actions shall be limited as follows:
   (1) Citations shall be disclosed from the date of issuance and for
five years after the date of compliance if no additional
disciplinary actions have been filed against the licensee during the
five-year period. If additional disciplinary actions were filed
against the licensee during the five-year period, all disciplinary
actions shall be disclosed for as long as the most recent
disciplinary action is subject to disclosure under this section. At
the end of the specified time period, those citations shall no longer
be disclosed.
   (2) Accusations that result in suspension, stayed suspension, or
stayed revocation of the contractor's license shall be disclosed from
the date the accusation is filed and for seven years after the
accusation has been settled, including the terms and conditions of
probation if no additional disciplinary actions have been filed
against the licensee during the seven-year period. If additional
disciplinary actions were filed against the licensee during the
seven-year period, all disciplinary actions shall be posted for as
long as the most recent disciplinary action is subject to disclosure
under this section. At the end of the specified time period, those
accusations shall no longer be disclosed.
   (3) All revocations that are not stayed shall be disclosed
indefinitely from the effective date of the revocation.
   (f) The registrar shall make available to the public all civil
action settlements, binding arbitration awards, and administrative
actions  reported to it pursuant to Section 7071.18.
  pursuant to paragraph (2) of subdivision (a).