BILL NUMBER: AB 2267	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 18, 2010

   An act to amend Section 7071.6 of the Business and Professions
Code, relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2267, as introduced, Eng. Contractors: license requirements:
bond.
   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, as condition to the
issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee file or have
on file a bond for $12,500. Except as specified, existing law
permits any specified beneficiaries from claiming or recovering the
full measure of this bond.
   This bill would specify that a material supplier may recover an
amount not exceeding $4,000.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  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).
   (b)  (1)    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. 
   (2) With respect to the bond required by this section, a material
supplier may recover an amount not exceeding four thousand dollars
($4,000). 
   (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.