BILL NUMBER: SB 262	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 15, 2013
	PASSED THE ASSEMBLY  AUGUST 8, 2013
	AMENDED IN ASSEMBLY  AUGUST 5, 2013
	AMENDED IN ASSEMBLY  JUNE 12, 2013
	AMENDED IN SENATE  APRIL 10, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Monning
   (Principal coauthor: Assembly Member Achadjian)

                        FEBRUARY 13, 2013

   An act to amend Section 7068.1 of the Business and Professions
Code, relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 262, Monning. Contractors.
   The Contractors' State License Law provides for the licensure and
regulation of contractors by the Contractors' State License Board.
Existing law authorizes an applicant for a license to qualify the
applicant's knowledge and experience with a responsible managing
officer, employee, member, or manager who has certain qualifications.
The person qualifying on behalf of an individual or firm is
responsible for exercising direct supervision and control of his or
her employer's or principal's construction operations as necessary to
secure full compliance with the Contractors' State License Law and
the regulations of the Contractors' State License Board relating to
construction operations.
   This bill would, instead, make the qualifying person responsible
for exercising that direct supervision and control to secure
compliance with that law and those regulations. The bill would make a
violation of these provisions grounds for disciplinary action, and a
misdemeanor punishable by imprisonment in a county jail not to
exceed 6 months, by a fine of not less than $3,000, but not to exceed
$5,000, or by both that imprisonment and fine. By creating a new
crime, the bill would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


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

  SECTION 1.  Section 7068.1 of the Business and Professions Code is
amended to read:
   7068.1.  (a) The person qualifying on behalf of an individual or
firm under paragraph (1), (2), (3), or (4) of subdivision (b) of
Section 7068 shall be responsible for exercising that direct
supervision and control of his or her employer's or principal's
construction operations to secure compliance with this chapter and
the rules and regulations of the board. This person shall not act in
the capacity of the qualifying person for an additional individual or
firm unless one of the following conditions exists:
   (1) There is a common ownership of at least 20 percent of the
equity of each individual or firm for which the person acts in a
qualifying capacity.
   (2) The additional firm is a subsidiary of or a joint venture with
the first. "Subsidiary," as used in this subdivision, means any firm
at least 20 percent of the equity of which is owned by the other
firm.
   (3) With respect to a firm under paragraph (2), (3), or (4) of
subdivision (b) of Section 7068, the majority of the partners,
officers, or managers are the same.
   (b) Notwithstanding paragraphs (1) to (3), inclusive, of
subdivision (a), a qualifying individual may act as the qualifier for
no more than three firms in any one-year period.
   (c) The following definitions shall apply for purposes of this
section:
   (1) "Firm" means a partnership, a limited partnership, a
corporation, a limited liability company, or any other combination or
organization described in Section 7068.
   (2) "Person" is limited to natural persons, notwithstanding the
definition of "person" in Section 7025.
   (d) The board shall require every applicant or licensee qualifying
by the appearance of a qualifying individual to submit detailed
information on the qualifying individual's duties and
responsibilities for supervision and control of the applicant's
construction operations.
   (e) Violation of this section shall constitute a cause for
disciplinary action and shall be punishable as a misdemeanor by
imprisonment in a county jail not to exceed six months, by a fine of
not less than three thousand dollars ($3,000), but not to exceed five
thousand dollars ($5,000), or by both the fine and imprisonment.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.