BILL NUMBER: AB 880AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 5, 2009 INTRODUCED BY Assembly Member Niello FEBRUARY 26, 2009 An act to amend Section 7027.3 of the Business and Professions Code, relating to contractors. An act to amend Section 7026.2 of the Business and Professions Code, and to add Section 18007.5 to the Health and Safety Code, relating to manufactured housing. LEGISLATIVE COUNSEL'S DIGEST AB 880, as amended, Niello. Contractors: license fraud penalty. Manufactured housing: prefabricated panelized homes. (1) Existing law, the Contractors' State License Law, provides for the licensure and regulation of contractors by the Contractors' State License Board. Existing law specifies that a violation of various provisions of the Contractors' State License Law is a misdemeanor. Existing law includes in the definition of the term "contractor" any person engaged in the business of the construction, installation, alteration, repair, or preparation for moving of a mobilehome or mobilehome accessory buildings and structures upon a site for the purpose of occupancy. This bill would, except as specified, include any person engaged in the business of the construction, installation, alteration, repair, or preparation for the moving of a prefabricated panelized home in the definition of the term "contractor." By expanding the definition of a crime, the bill would impose a state-mandated local program. (2) The Mobilehomes-Manufactured Housing Act of 1980 requires the Department of Housing and Community Development to enforce various laws pertaining to the structural, fire safety, plumbing, heat-producing, or electrical systems and installations or equipment of a manufactured home, mobilehome, special purpose commercial coach, or commercial coach. The act defines several terms for its purposes. This bill would define the term "prefabricated panelized home" for purposes of the act. (3) 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. Existing law provides for the licensure and regulation of contractors by the Contractor's State License Board within the Department of Consumer Affairs, and specifies that contractor's license fraud is punishable by a fine of up to $10,000, imprisonment, as specified, or by both that fine and imprisonment. This bill would raise the maximum fine to $15,000. Vote: majority. Appropriation: no. Fiscal committee: no yes . State-mandated local program: no yes . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 7026.2 of the Business and Professions Code is amended to read: 7026.2. (a) For the purposes of this chapter, "contractor" includes any person engaged in the business of the construction, installation, alteration, repair, or preparation for moving of a prefabricated panelized home, mobilehome , or mobilehome accessory buildings and structures upon a site for the purpose of occupancy as a dwelling. (b) "Contractor" does not include the manufacturer of the mobilehome or mobilehome accessory building or structure if it is constructed at a place other than the site upon which it is installed for the purpose of occupancy as a dwelling, and does not include the manufacturer when the manufacturer is solely performing work in compliance with the manufacturer's warranty. "Contractor" includes the manufacturer if the manufacturer is engaged in onsite construction, alteration, or repair of a mobilehome or mobilehome accessory buildings and structures pursuant to specialized plans, specifications, or models, or any work other than in compliance with the manufacturer's warranty. (c) "Contractor" does not include a seller of a manufactured home or mobilehome who holds a retail manufactured home or mobilehome dealer's license under Chapter 7 (commencing with Section 18045) of Part 2 of Division 13 of the Health and Safety Code, if the installation of the manufactured home or mobilehome is to be performed by a licensed contractor and the seller certifies that fact in writing to the buyer prior to the performance of the installation. The certification shall include the name, business address, and contractor's license number of the licensed contractor by whom the installation will be performed. (d) "Contractor" does not include a seller of a prefabricated panelized home who holds a retail manufactured home or mobilehome dealer's license under Chapter 7 (commencing with Section 18045) of Part 2 of Division 13 of the Health and Safety Code, if the installation of the prefabricated panelized home is to be performed by a licensed contractor and the seller certifies that fact in writing to the buyer prior to the performance of the installation. The certification shall include the name, business address, and contractor's license number of the licensed contractor by whom the installation will be performed. (d) (e) For the purposes of this chapter, the following terms have the following meanings: (1) "Mobilehome" means a vehicle defined in Section 18008 of the Health and Safety Code. (2) "Mobilehome accessory building or structure" means a building or structure defined in Section 18008.5 of the Health and Safety Code. (3) "Manufactured home" means a structure defined in Section 18007 of the Health and Safety Code. (4) "Prefabricated panelized home" means a structure as defined in Section 18007.5 of the Health and Safety Code. SEC. 2. Section 18007.5 is added to the Health and Safety Code , to read: 18007.5. (a) For purposes of this part, "prefabricated panelized home" means a structure that meets all of the following requirements: (1) Is transportable in one or more sections or panels, including exterior siding. (2) Is eight feet or more in width, or 40 feet or more in length. (3) Is built to be permanently attached to a piece of real property. (4) Is designed to be used as a single-family dwelling with or without a foundation when connected to the required utilities. (b) "Prefabricated panelized home" includes, but is not limited to, any structure that meets all of the requirements of subdivision (a), with the exception of paragraph (2), and complies with the standards established under the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. Sec. 5041 et seq.). SEC. 3. 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. SECTION 1. Section 7027.3 of the Business and Professions Code is amended to read: 7027.3. Any person, licensed or unlicensed, who willfully and intentionally uses, with intent to defraud, a contractor's license number that does not correspond to the number on a currently valid contractor's license held by that person, is punishable by a fine not exceeding fifteen thousand dollars ($15,000), or by imprisonment in state prison, or in county jail for not more than one year, or by both that fine and imprisonment. The penalty provided by this section is cumulative to the penalties available under all other laws of this state. If, upon investigation, the registrar has probable cause to believe that an unlicensed individual is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7.