Bill Text: CA AB2267 | 2009-2010 | Regular Session | Amended

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Bill Title: Contractors: license requirements: bond.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-05-04 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2267 Detail]

Download: California-2009-AB2267-Amended.html

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BILL NUMBER: AB 2267	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 15, 2010

INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 18, 2010

   An act to amend Section 7071.6 of the Business and Professions
Code, relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2267, as amended, Eng. Contractors: license requirements: bond.

   Existing law, the Contractors' State License Law, provides for the
licensure and regulation of contractors by the Contractors' State
License Board. Existing law requires the board, as condition to the
issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee file or have
on file a bond for $12,500. Except  as specified 
 for certain claims brought by homeowners relating to personal
family residences  , existing law  permits any specified
beneficiaries from claiming or recovering the full measure of this
bond   provides that a claim against the bond may not
  exceed $7,500  .
   This bill would  specify that   expand the
exception to also include certain property owners related to
single-family dwellings. The bill would also limit the recovery by
 a material supplier  may recover   to
 an amount not exceeding $4,000.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 7071.6 of the Business and Professions Code is
amended to read:
   7071.6.  (a) The board shall require as a condition precedent to
the issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee file or have
on file a contractor's bond in the sum of twelve thousand five
hundred dollars ($12,500).
   (b) (1) Excluding the claims brought by the beneficiaries
specified in  subdivision (a)  subdivisions (a)
and (b)  of Section 7071.5, the aggregate liability of a surety
on claims brought against a bond required by this section shall not
exceed the sum of seven thousand five hundred dollars ($7,500). The
bond proceeds in excess of seven thousand five hundred dollars
($7,500) shall be reserved exclusively for the claims of the
beneficiaries specified in  subdivision (a)  
subdivisions (a) and (b)  of Section 7071.5. However, nothing in
this section shall be construed so as to prevent any beneficiary
specified in  subdivision (a)  subdivisions (a)
and (b)  of Section 7071.5 from claiming or recovering the full
measure of the bond required by this section.
   (2) With respect to the bond required by this section, a material
supplier may recover an amount not exceeding four thousand dollars
($4,000).
   (c) No bond shall be required of a holder of a license that has
been inactivated on the official records of the board during the
period the license is inactive.
   (d) Notwithstanding any other provision of law, as a condition
precedent to licensure, the board may require an applicant to post a
contractor's bond in twice the amount required pursuant to
subdivision (a) until the time that the license is renewed, under the
following conditions:
   (1) The applicant has either been convicted of a violation of
Section 7028 or has been cited pursuant to Section 7028.7.
   (2) If the applicant has been cited pursuant to Section 7028.7,
the citation has been reduced to a final order of the registrar.
   (3) The violation of Section 7028, or the basis for the citation
issued pursuant to Section 7028.7, constituted a substantial injury
to the public.