Bill Text: CA AB2622 | 2023-2024 | Regular Session | Amended
Bill Title: Contractors: exemptions: work and advertisements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-07-01 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (July 1). Re-referred to Com. on APPR. [AB2622 Detail]
Download: California-2023-AB2622-Amended.html
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Amended
IN
Senate
June 27, 2024 |
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Amended
IN
Assembly
April 24, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2622
| Introduced by Assembly Member Juan Carrillo |
February 14, 2024 |
An act to amend Sections 7027.2 and 7048 of the Business and Professions Code, relating to contractors.
LEGISLATIVE COUNSEL'S DIGEST
AB 2622, as amended, Juan Carrillo.
Contractors: license requirement exemptions: work and advertisements.
Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law makes it a misdemeanor for a person to act as a contractor without a license, unless exempted. Existing law exempts from the licensing requirement Contractors State License Law a work or operation on one undertaking or project by one or more contracts, if the aggregate contract price for labor, material, and all other items is under $500, except as specified.
This bill would revise the licensing
exemption by increasing the maximum aggregate contract price to $1,000, as adjusted for inflation by the board, as specified, $1,000 and specifying that the exemption would apply if the work or operation meets specified requirements, including, among other things, that the work or operation does not include certain trades or crafts. does not require a building permit. The bill would additionally specify that the exemption would not apply to a person who employs another person to perform, or assist in performing, the work or operation. By
narrowing the licensing exemption, exemption from the licensing requirement, the bill would expand a crime and, thereby, impose a state-mandated local program.
Existing law makes it a misdemeanor for a person to advertise for construction work or work of improvement without a license. Existing law authorizes a person who is not licensed to advertise for construction work or work of improvement if the aggregate contract price for labor, material, and all other items on a project or undertaking is under $500 and the person states in the advertisement that the person is not licensed.
This bill would expand the advertising authorization by increasing the aggregate contract price to $1000, as
adjusted for inflation by the board, as specified. $1,000.
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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 7027.2 of the Business and Professions Code is amended to read:7027.2.
(b)Commencing on January 1, 2026, and annually thereafter, the board shall adjust the amount specified in subdivision (a) to reflect the rate of inflation, as measured by the California Consumer Price Index as compiled and reported by the Department of Industrial Relations.
SEC. 2.
Section 7048 of the Business and Professions Code is amended to read:7048.
(a) This chapter does not apply to a 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 one thousand dollars(1)The work or operation does not require a building permit.
(2)The work or operation does not include one of the following trades or crafts:
(A)C-16 Fire Protection.
(B)C-22 Asbestos Abatement.
(C)C-57 Well Drilling.
(3)The person performing the work or operation does not do any of the following:
(A)Make structural changes to load bearing portions of an existing structure, including, but not limited to, footings, foundations, load bearing walls, partitions, and roof structures.
(B)Install, replace, substantially alter, or extend electrical, mechanical, or plumbing systems or their component parts, or the mechanisms or devices that are part of those systems.
(b) This section does not apply in a case wherein the work of construction is only a part of a larger or major operation, whether undertaken by the same or a different contractor, or in which a division of the operation is made in contracts of amounts less than one thousand dollars ($1,000), as adjusted pursuant to subdivision (d),
($1,000) for the purpose of evasion of this chapter or otherwise.
(c) This section does not apply to a person who does either of the following:
(1) Advertises or puts out a sign or card or other device that might indicate to the public that the person is a contractor or that the person is qualified to engage in the business of a contractor.
(2) Employs another person to perform, or assist in performing, the work or operation.
(d)Commencing on January 1, 2026, and annually thereafter, the board shall adjust the amount specified in subdivisions (a) and (b) to reflect the rate of inflation, as measured by the California Consumer Price Index as compiled and reported by the Department of Industrial Relations.
