California Senate Bill SB315 Amended / Bill

 BILL NUMBER: SB 315AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 29, 2014 AMENDED IN SENATE APRIL 30, 2013 INTRODUCED BY Senator Lieu FEBRUARY 15, 2013 An act to amend  Section 367.5 of the Code of Civil Procedure, relating to civil procedure.   Sections 7011.4, 7027.2, 7028, and 7110.5 of the Business and Professions Code, relating to cont   ractors.  LEGISLATIVE COUNSEL'S DIGEST SB 315, as amended, Lieu.  Civil actions: telephonic appearances.   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 additionally authorize these enforcement representatives to continue to participate in activities of the Joint Enforcement Strike Force on the Underground Economy, as specified.   (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 instead authorize 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.   Existing law provides that courts should, to the extent feasible, permit parties to appear by telephone at appropriate conferences, hearings, and proceedings in civil cases to improve access to the courts and reduce litigation costs. Existing law permits a party to make appearances by telephone at specified conferences, hearings, and proceedings.   This bill would expand the circumstances under which a party may appear by telephone to include all conferences, hearings, and proceedings except a trial and a trial readiness conference.  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 7011.4 of the   Business and Professions Code   is amended to read:  7011.4. (a) Notwithstanding Section 7011, there is in the Contractors' State License Board, a separate enforcement division which shall rigorously enforce this chapter prohibiting all forms of unlicensed activity. (b) Persons employed as enforcement representatives in this division and designated by the Director of Consumer Affairs are not peace officers and are not entitled to safety member retirement benefits. They do not have the power of arrest. However, they may issue a written notice to appear in court pursuant to Chapter 5c (commencing with Section 853.5) of Title 3 of Part 2 of the Penal Code  and may continue to participate in activities of the Joint Enforcement Strike Force on   the Underground Economy to carry out the duties specified in Section 329 of the Unemployment Insurance Code independent of the Division of Labor Standards Enforcement  .  SEC. 2.  Section 7027.2 of the   Business and Professions Code   is amended to read:  7027.2. Notwithstanding any other provision of this chapter,  any person   a person who is  not licensed pursuant to this chapter may advertise for construction work or  a  work of improvement covered by this chapter  , provided that   only if the aggregate contract price for labor, material, and all other items on a project or undertaking is less than five hundred   dollars ($500), and  he or she  shall state   states  in the advertisement that he or she is not licensed under this chapter.  SEC. 3.   Section 7028 of the   Business and Professions Code   is amended to read:  7028. (a)  It   Unless exempted from this chapter, it  is a misdemeanor for a person to engage in the business  of,  or act in the capacity  of   of,  a contractor within this state  without having a license therefor, unless the person is particularly exempted from the provisions of this chapter.   under either of the following conditions:   (1) The person is not licensed in accordance with this chapter.   (2) The person performs acts covered by this chapter under a license that is under suspension for failure to pay a civil penalty or to comply with an order of correction, pursuant to Section 7090.1, or for failure to resolve all outstanding final liabilities, pursuant to Section 7145.5.  (b) A first conviction for the offense described in this section is punishable by a fine not exceeding five thousand dollars ($5,000) or by imprisonment in a county jail not exceeding six months, or by both that fine and imprisonment. (c) If a person has been previously convicted of the offense described in this section, unless the provisions of subdivision (d) are applicable, the court shall impose a fine of 20 percent of the contract price, or 20 percent of the aggregate payments made to, or at the direction of, the unlicensed  contractor,   person,  or five thousand dollars ($5,000), whichever is greater, and, unless the sentence prescribed in subdivision (d) is imposed, the person shall be confined in a county jail for not less than 90 days, except in an unusual case where the interests of justice would be served by imposition of a lesser sentence or a fine. If the court imposes only a fine or a jail sentence of less than 90 days for second or subsequent convictions under this section, the court shall state the reasons for its sentencing choice on the record. (d) A third or subsequent conviction for the offense described in this section is punishable by a fine of not less than five thousand dollars ($5,000) nor more than the greater amount of ten thousand dollars ($10,000) or 20 percent of the contract price, or 20 percent of the aggregate payments made to, or at the direction of, the unlicensed  contractor,   person,  and by imprisonment in a county jail for not more than one year or less than 90 days. The penalty provided by this subdivision is cumulative to the penalties available under all other laws of this state. (e) A person who violates this section is subject to the penalties prescribed in subdivision (d) if the person was named on a license that was previously revoked and, either in fact or under law, was held responsible for any act or omission resulting in the revocation. (f) If the  unlicensed  person engaging in the business of or acting in the capacity of  an unlicensed   a  contractor has agreed to furnish materials and labor on an hourly basis, "the contract price" for the purposes of this section means the aggregate sum of the cost of materials and labor furnished and the cost of completing the work to be performed. (g) Notwithstanding any other  provision of  law, an indictment for any violation of this section by  the   an  unlicensed  contractor   person  shall be  found   found,  or  an  information or  a  complaint  filed   shall be filed,  within four years from the date of the contract proposal, contract, completion, or abandonment of the work, whichever occurs last. (h) For any conviction under this section, a person who utilized the services of the unlicensed  contractor   person  is a victim of crime and is eligible, pursuant to subdivision (f) of Section 1202.4 of the Penal Code, for restitution for economic losses, regardless of whether  that person   he or she  had knowledge that the  contractor   person  was unlicensed.  (i) The changes made to this section by the act adding this subdivision are declaratory of existing law.   SEC. 4.   Section 7110.5 of the   Business and Professions Code   is amended to read:  7110.5. Upon receipt of a certified copy of the Labor Commissioner's finding of a willful or deliberate violation of the Labor Code by a licensee, pursuant to Section 98.9 of the Labor Code, the registrar  shall   may  initiate disciplinary action against the licensee within  30   180  days of notification.  SEC. 5.   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 367.5 of the Code of Civil Procedure is amended to read: 367.5. (a) It is the intent of this section to promote uniformity in the procedures and practices relating to telephone appearances in civil cases. To improve access to the courts and reduce litigation costs, courts should, to the extent feasible, permit parties to appear by telephone at appropriate conferences, hearings, and proceedings in civil cases. (b) Except as provided in subdivision (c), in all general civil cases, as defined in the California Rules of Court, a party that has provided notice may appear by telephone at any conference, hearing, or proceeding, except a trial or trial readiness conference. (c) The court may require a party to appear in person at a hearing, conference, or proceeding if the court determines on a hearing-by-hearing basis that a personal appearance would materially assist in the determination of the proceedings or in the effective management or resolution of the particular case. (d) Consistent with its constitutional rulemaking authority, the Judicial Council shall adopt rules effectuating the policies and provisions in this section by January 1, 2008, and may adopt rules relating to matters not covered by subdivision (a). The rules may prescribe, but are not limited to prescribing, the notice to be given by a party requesting a telephone appearance under subdivision (a), the manner in which telephone appearances are to be conducted, the conditions required for a party to be permitted to appear by telephone, and provisions relating to the courts' use of private vendors to provide telephone services. (e) This section does not apply to any types of cases or types of conferences, hearings, and proceedings except those specified in subdivision (b). Consistent with its constitutional rulemaking authority, the Judicial Council may by rule provide for the procedures and practices, and for the administration of, telephone appearances for all types of cases and matters not specified in subdivision (b). For these other cases and matters, the Judicial Council may specify the types of cases and matters in which parties may appear by telephone, the types of cases and matters in which parties shall appear personally, the conditions under which a party may be permitted to appear by telephone, and any other rules governing telephone and personal appearances that are within its rulemaking authority.