SB 315, as amended, Lieu. Contractors.
(1) The Contractors’ State License Law provides for the licensure and regulation of contractors by the Contractors’ State License Board within the Department of Consumer Affairs. The act establishes an enforcement division within the board that is required to enforce prohibitions against unlicensed activity, as specified. The act authorizes persons employed as enforcement representatives in the division to issue written notices to appear in court, as specified.
This bill would additionallybegin delete authorize these enforcement representatives to continue to participate in activities of the Joint Enforcement Strike Force on the Underground Economy, as specified.end deletebegin insert
require that the enforcement division, when participating in the activities of the Joint Enforcement Strike Force on the Underground Economy, be granted free access to all places of labor.end insert
(2) The act makes it a misdemeanor for a person to engage in the business of, or act in the capacity of, a contractor within this state without having a license, unless particularly exempted.
This bill would instead provide that, unless exempted, it is a misdemeanor for a person to engage in the business of, or act in the capacity of, a contractor within this state if the person is not licensed in accordance with the act, or if the person performs acts covered by the act under a license that is under suspension for specified violations.
(3) The act provides that it is a misdemeanor for any person to advertise for construction or work of improvement unless that person holds a valid license in the classification so advertised, except as specified. However, the act authorizes a person who is not licensed as a contractor to advertise for construction work or work of improvement if he or she states in the advertisement that he or she is not licensed, as specified. The act also exempts from its application any work or operation on one undertaking or project by one or more contracts if the aggregate contract price for labor, materials, and all other items is less than $500, and the work or operations are casual, minor, or inconsequential.
This bill would authorize a person who is not licensed as a contractor to advertise for construction work or a work of improvement only if the aggregate contract price is less than $500 and the person states in the advertisement that he or she is not licensed. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.
(4) The act authorizes the board to appoint a registrar of contractors. Existing law requires the registrar to initiate disciplinary action against a licensee within 30 days of notification by the Labor Commissioner of a finding of a willful or deliberate violation of the Labor Code.
This bill would insteadbegin delete authorizeend deletebegin insert requireend insert the registrar to initiate disciplinary action against a licensee within 180 days of notification by the Labor Commissioner.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 7011.4 of the Business and Professions
2Code is amended to read:
(a) Notwithstanding Section 7011, there is in the
4Contractors’ State License Board, a separate enforcement division
5which shall rigorously enforce this chapter prohibiting all forms
6of unlicensed activity.
7(b) Persons employed as enforcement representatives in this
8division and designated by the Director of Consumer Affairs are
9not peace officers and are not entitled to safety member retirement
10benefits. They do not have the power of arrest. However, they may
11issue a written notice to appear in court pursuant to Chapter 5c
12(commencing with Section 853.5) of Title 3 of Part 2 of the Penal begin delete13Code and may continue to participate in activities of the Joint
14Enforcement Strike Force on
the Underground Economy to carry
15out the duties specified in Section 329 of the Unemployment
16Insurance Code independent of the Division of Labor Standards
17Enforcement.end delete
18(c) When participating in the activities of the Joint Enforcement
19Strike Force on the Underground Economy pursuant to Section
20329 of the Unemployment Insurance Code, the enforcement division
21shall have free access to all places of labor.
Section 7027.2 of the Business and Professions Code
23 is amended to read:
Notwithstanding any other provision of this chapter,
25a person who is not licensed pursuant to this chapter may advertise
26for construction work or a work of improvement covered by this
27chapter only if the aggregate contract price for labor, material, and
28all other items on a project or undertaking is less than five hundred
29dollars ($500), and he or she states in the advertisement that he or
30she is not licensed under this chapter.
Section 7028 of the Business and Professions Code is
32amended to read:
(a) Unless exempted from this chapter, it is a
34misdemeanor for a person to engage in the business of, or act in
35the capacity of, a contractor within this state
under either of the
36following conditions:
37(1) The person is not licensed in accordance with this chapter.
P4 1(2) The person performs acts covered by this chapter under a
2license that is under suspension for failure to pay a civil penalty
3or to comply with an order of correction, pursuant to Section
47090.1, or for failure to resolve all outstanding final liabilities,
5pursuant to Section 7145.5.
6(b) A first conviction for the offense described in this section
7is punishable by a fine not exceeding five thousand dollars ($5,000)
8or by imprisonment in a county jail not exceeding six months, or
9by both that fine and imprisonment.
10(c) If a person has
been previously convicted of the offense
11described in this section, unless the provisions of subdivision (d)
12are applicable, the court shall impose a fine of 20 percent of the
13contract price, or 20 percent of the aggregate payments made to,
14or at the direction of, the unlicensed person, or five thousand
15dollars ($5,000), whichever is greater, and, unless the sentence
16prescribed in subdivision (d) is imposed, the person shall be
17confined in a county jail for not less than 90 days, except in an
18unusual case where the interests of justice would be served by
19imposition of a lesser sentence or a fine. If the court imposes only
20a fine or a jail sentence of less than 90 days for second or
21subsequent convictions under this section, the court shall state the
22reasons for its sentencing choice on the record.
23(d) A third or subsequent conviction for the
offense described
24in this section is punishable by a fine of not less than five thousand
25dollars ($5,000) nor more than the greater amount of ten thousand
26dollars ($10,000) or 20 percent of the contract price, or 20 percent
27of the aggregate payments made to, or at the direction of, the
28unlicensed person, and by imprisonment in a county jail for not
29more than one year or less than 90 days. The penalty provided by
30this subdivision is cumulative to the penalties available under all
31other laws of this state.
32(e) A person who violates this section is subject to the penalties
33prescribed in subdivision (d) if the person was named on a license
34that was previously revoked and, either in fact or under law, was
35held responsible for any act or omission resulting in the revocation.
36(f) If
the unlicensed person engaging in the business of or acting
37in the capacity of a contractor has agreed to furnish materials and
38labor on an hourly basis, “the contract price” for the purposes of
39this section means the aggregate sum of the cost of materials and
P5 1labor furnished and the cost of completing the work to be
2performed.
3(g) Notwithstanding any other law, an indictment for any
4violation of this section by an unlicensed person shall be found,
5or information or a complaint
shall be filed, within four years from
6the date of the contract proposal, contract, completion, or
7abandonment of the work, whichever occurs last.
8(h) For any conviction under this section, a person who utilized
9the services of the unlicensed person is a victim of crime and is
10eligible, pursuant to subdivision (f) of Section 1202.4 of the Penal
11Code, for restitution for economic losses, regardless of whether
12he or she had knowledge that the
person was unlicensed.
13(i) The changes made to this section by the act adding this
14subdivision are declaratory of existing law.
Section 7110.5 of the Business and Professions Code
16 is amended to read:
Upon receipt of a certified copy of the Labor
18Commissioner’s finding of a willful or deliberate violation of the
19Labor Code by a licensee, pursuant to Section 98.9 of the Labor
20Code, the registrarbegin delete mayend deletebegin insert shallend insert initiate disciplinary action against
21the licensee within 180 days of notification.
No reimbursement is required by this act pursuant to
23Section 6 of Article XIII B of the California Constitution because
24the only costs that may be incurred by a local agency or school
25district will be incurred because this act creates a new crime or
26infraction, eliminates a crime or infraction, or changes the penalty
27for a crime or infraction, within the meaning of Section 17556 of
28the Government Code, or changes the definition of a crime within
29the meaning of Section 6 of Article XIII B of the California
30Constitution.
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