California Senate Bill SB262 Introduced / Bill

 BILL NUMBER: SB 262INTRODUCED BILL TEXT 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, as introduced, 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 provide that failure of the qualifying individual to exercise direct supervision and control in accordance with these provisions and the regulations adopted by the board shall constitute grounds for disciplinary action, and shall be punishable as a misdemeanor. 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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. 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 as is necessary to secure full compliance with this chapter and the rules and regulations of the board relating to the construction operations. 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:  (a)   (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.  (b)   (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.  (c)   (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.  (d)   (b)  Notwithstanding  subdivisions (a), (b), and (c),   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.  "Firm," as used in this section,   (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.  "Person," as used in this section,   (2)     "Person"  is limited to natural persons, notwithstanding the definition of "person" in Section 7025.  The   (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.  The failure of the qualifying individual to exercise direct supervision and control in accordance with this section and the regulations adopted by the board shall constitute grounds for disciplinary action, and shall be punishable as a misdemeanor by imprisonment in a county jail, by a fine of not less than three thousand dollars ($3,000), but not to exceed five thousand dollars ($5,000), or by both that imprisonment and fine.  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.