SB 561: Contractors: home improvement salespersons.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-09-08
Existing law, the Contractors State License Law, provides for the licensure and regulation of contractors, including home improvement contractors, by the Contractors State License Board within the Department of Consumer Affairs. Existing law also provides for the registration and regulation of home improvement salespersons by the board. Existing law requires the board to appoint a registrar of contractors who is the executive officer and secretary of the board and is responsible for carrying out specified administrative duties.
Under existing law, a home improvement salesperson is a person employed by a licensed home improvement contractor to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation, or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs.
This bill would provide that such a salesperson is a person who is registered and engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs on behalf of a licensed home improvement contractor. The bill would require a home improvement salesperson to register with the board in order to engage in the business of, or act in the capacity of, a home improvement salesperson.
Existing law makes it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without a registration for each of the home improvement contractors by whom he or she is employed. Existing law makes it a crime for any person to engage in the occupation of salesperson of home improvement goods or services, as defined, without a registration.
This bill would instead make it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without having, at the time of the sales transaction, a current and valid registration. The bill would instead make it a crime for any person to engage in the occupation of salesperson of home improvement goods or services without having, at the time of the sales transaction, a current and valid registration. By changing the definitions of these crimes, the bill would impose a state-mandated local program.
Under existing law, home improvement salesperson registrations expire subject to board determination, as described.
This bill would provide that these registrations expire 2 years from the last day of the month in which the registration was issued or 2 years from the date on which the renewed registration last expired.
Under existing law, a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson is subject to disciplinary action.
This bill would require a home improvement contractor to notify the registrar in writing about the employment of a registered home improvement salesperson. The bill would also require a home improvement contractor to notify the registrar when a registered home improvement salesperson ceases to be employed by the contractor. The bill would make a home improvement contractor who fails to report this information subject to disciplinary action by the registrar.
Existing law authorizes the board to make rules and regulations as are reasonably necessary to carry out the law and requires the rules and regulations to be adopted in accordance with the provisions of the Administrative Procedure Act.
This bill would authorize the board, by regulation, to implement a system to provide for the electronic transmission of contractor applications for licensure, home improvement salesperson applications for registration, and those aforementioned notices required to be made by a home improvement contractor, as specified.
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, the Contractors State License Law, provides for the licensure and regulation of contractors, including home improvement contractors, by the Contractors State License Board within the Department of Consumer Affairs. Existing law also provides for the registration and regulation of home improvement salespersons by the board. Existing law requires the board to appoint a registrar of contractors who is the executive officer and secretary of the board and is responsible for carrying out specified administrative duties.
Under existing law, a home improvement salesperson is a person employed by a licensed home improvement contractor to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation, or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs.
This bill would provide that such a salesperson is a person who is registered and engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs on behalf of a licensed home improvement contractor. The bill would require a home improvement salesperson to register with the board in order to engage in the business of, or act in the capacity of, a home improvement salesperson.
Existing law makes it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without a registration for each of the home improvement contractors by whom he or she is employed. Existing law makes it a crime for any person to engage in the occupation of salesperson of home improvement goods or services, as defined, without a registration.
This bill would instead make it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without having, at the time of the sales transaction, a current and valid registration. The bill would instead make it a crime for any person to engage in the occupation of salesperson of home improvement goods or services without having, at the time of the sales transaction, a current and valid registration. By changing the definitions of these crimes, the bill would impose a state-mandated local program.
Under existing law, home improvement salesperson registrations expire subject to board determination, as described.
This bill would provide that these registrations expire 2 years from the last day of the month in which the registration was issued or 2 years from the date on which the renewed registration last expired.
Under existing law, a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson is subject to disciplinary action.
This bill would require a home improvement contractor to notify the registrar in writing about the employment of a registered home improvement salesperson. The bill would also require a home improvement contractor to notify the registrar when a registered home improvement salesperson ceases to be employed by the contractor. The bill would make a home improvement contractor who fails to report this information subject to disciplinary action by the registrar.
Existing law authorizes the board to make rules and regulations as are reasonably necessary to carry out the law and requires the rules and regulations to be adopted in accordance with the provisions of the Administrative Procedure Act.
This bill would authorize the board, by regulation, to implement a system to provide for the electronic transmission of contractor applications for licensure, home improvement salesperson applications for registration, and those aforementioned notices required to be made by a home improvement contractor, as specified.
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, the Contractors State License Law, provides for the licensure and regulation of contractors, including home improvement contractors, by the Contractors State License Board within the Department of Consumer Affairs. Existing law also provides for the registration and regulation of home improvement salespersons by the board. Existing law requires the board to appoint a registrar of contractors who is the executive officer and secretary of the board and is responsible for carrying out specified administrative duties.
Under existing law, a home improvement salesperson is a person employed by a licensed home improvement contractor to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation, or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs.
This bill would provide that such a salesperson is a person who is registered and engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs on behalf of a licensed home improvement contractor. The bill would require a home improvement salesperson to register with the board in order to engage in the business of, or act in the capacity of, a home improvement salesperson.
Existing law makes it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without a registration for each of the home improvement contractors by whom he or she is employed. Existing law makes it a crime for any person to engage in the occupation of salesperson of home improvement goods or services, as defined, without a registration.
This bill would instead make it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without having, at the time of the sales transaction, a current and valid registration. The bill would instead make it a crime for any person to engage in the occupation of salesperson of home improvement goods or services without having, at the time of the sales transaction, a current and valid registration. By changing the definitions of these crimes, the bill would impose a state-mandated local program.
Under existing law, home improvement salesperson registrations expire subject to board determination, as described.
This bill would provide that these registrations expire 2 years from the last day of the month in which the registration was issued or 2 years from the date on which the renewed registration last expired.
Under existing law, a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson is subject to disciplinary action.
This bill would require a home improvement contractor to notify the registrar in writing about the employment of a registered home improvement salesperson. The bill would also require a home improvement contractor to notify the registrar when a registered home improvement salesperson ceases to be employed by the contractor. The bill would make a home improvement contractor who fails to report this information subject to disciplinary action by the registrar.
Existing law authorizes the board to make rules and regulations as are reasonably necessary to carry out the law and requires the rules and regulations to be adopted in accordance with the provisions of the Administrative Procedure Act.
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This bill would authorize the board, by regulation, to implement a system to provide for the electronic transmission of contractor applications for licensure, home improvement salesperson applications for registration, and those aforementioned notices required to be made by a home improvement contractor, as specified.
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, the Contractors State License Law, provides for the licensure and regulation of contractors, including home improvement contractors, by the Contractors State License Board within the Department of Consumer Affairs. Existing law also provides for the registration and regulation of home improvement salespersons by the board. Existing law requires the board to appoint a registrar of contractors who is the executive officer and secretary of the board and is responsible for carrying out specified administrative duties. Existing law requires the fees and civil penalties received under this law to be deposited in the Contractors License Fund, a continuously appropriated fund.
Under existing law, a home improvement salesperson is a person employed by a licensed home improvement contractor to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation, or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs.
This bill would provide that such a salesperson also be registered under the law. is a person who is registered and engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs. The bill would require a home improvement salesperson to register with the board in order to engage in the business of, or act in the capacity of, a home improvement salesperson.
Existing law makes it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without a registration for each of the home improvement contractors by whom he or she is employed. Existing law makes it a crime for any person to engage in the occupation of salesperson of home improvement goods or services, as defined, without a registration.
This bill would instead make it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without having, at the time of the sales transaction, a current and valid registration. The bill would instead make it a crime for any person to engage in the occupation of salesperson of home improvement goods or services without having, at the time of the sales transaction, a current and valid registration. By changing the definitions of these crimes, the bill would impose a state-mandated local program.
Under existing law, home improvement salesperson registrations expire subject to board determination, as described.
This bill would provide that these registrations expire 2 years from the last day of the month in which the registration was issued or 2 years from the date on which the renewed registration last expired.
Under existing law, a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson is subject to disciplinary action.
This bill would require a home improvement contractor to notify the registrar in writing about the pending employment of a registered home improvement salesperson. The bill would also require a home improvement contractor to notify the registrar when a registered home improvement salesperson ceases to be employed by the contractor. The bill would make a home improvement contractor who fails to report this information subject to disciplinary action by the registrar.
Existing law authorizes the board to make rules and regulations as are reasonably necessary to carry out the law and requires the rules and regulations to be adopted in accordance with the provisions of the Administrative Procedure Act.
The bill would authorize the board, by regulation, to implement a system to provide for the electronic transmission of home improvement salesperson applications and those aforementioned notices required to be made by a home improvement contractor.
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, the Contractors State License Law, provides for the licensure and regulation of contractors, including home improvement contractors, by the Contractors State License Board within the Department of Consumer Affairs. Existing law also provides for the registration and regulation of home improvement salespersons by the board. Existing law requires the board to appoint a registrar of contractors who is the executive officer and secretary of the board and is responsible for carrying out specified administrative duties. Existing law requires the fees and civil penalties received under this law to be deposited in the Contractors License Fund, a continuously appropriated fund.
Under existing law, a home improvement salesperson is a person employed by a licensed home improvement contractor to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation, or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs.
This bill would provide that such a salesperson also be registered under the law.
Existing law makes it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without a registration for each of the home improvement contractors by whom he or she is employed. Existing law makes it a crime for any person to engage in the occupation of salesperson of home improvement goods or services, as defined, without a registration.
This bill would instead make it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without having, at the time of the sales transaction, a current and valid registration. The bill would instead make it a crime for any person to engage in the occupation of salesperson of home improvement goods or services without having, at the time of the sales transaction, a current and valid registration. By changing the definitions of these crimes, the bill would impose a state-mandated local program.
Under existing law, home improvement salesperson registrations expire subject to board determination, as described. Existing law makes an application for renewal of registration delinquent if the application is not postmarked by the date on which the registration would otherwise expire. However, existing law authorizes a registration to be renewed at any time within 3 years after its expiration upon the filing of an application for renewal on a specified form, the payment of the renewal fee, and a delinquent renewal penalty in the amount of $25.
This bill would provide that these registrations expire 2 years from the last day of the month in which the registration was issued or 2 years from the date on which the renewed registration last expired. The bill would make that delinquent renewal penalty equal to 50% of the renewal fee. Because this additional delinquent amount would be deposited into the Contractors License Fund, a continuously appropriated fund, the bill would make an appropriation.
Under existing law, a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson is subject to disciplinary action.
This bill would require a home improvement contractor to notify the registrar in writing about the pending employment of a registered home improvement salesperson. The bill would also require a home improvement contractor to notify the registrar when a registered home improvement salesperson ceases to be employed by the contractor. The bill would make a home improvement contractor who fails to report this information subject to disciplinary action by the registrar.
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, the Contractors State License Law, provides for the licensure and regulation of contractors, including home improvement contractors, by the Contractors State License Board within the Department of Consumer Affairs. Existing law also provides for the registration and regulation of home improvement salespersons by the board. Existing law requires the board to appoint a registrar of contractors who is the executive officer and secretary of the board and is responsible for carrying out specified administrative duties. Existing law requires the fees and civil penalties received under this law to be deposited in the Contractors License Fund, a continuously appropriated fund.
Under existing law, a home improvement salesperson is a person employed by a licensed home improvement contractor to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation, or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs.
This bill would provide that such a salesperson also be registered under the law.
Existing law makes it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without a registration for each of the home improvement contractors by whom he or she is employed. Existing law makes it a crime for any person to engage in the occupation of salesperson of home improvement goods or services, as defined, without a registration.
This bill would instead make it a crime for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without having, at the time of the sales transaction, a current and valid registration. The bill would instead make it a crime for any person to engage in the occupation of salesperson of home improvement goods or services without having, at the time of the sales transaction, a current and valid registration. By changing the definitions of these crimes, the bill would impose a state-mandated local program.
Under existing law, home improvement salesperson registrations expire subject to board determination, as described. Existing law makes an application for renewal of registration delinquent if the application is not postmarked by the date on which the registration would otherwise expire. However, existing law authorizes a registration to be renewed at any time within 3 years after its expiration upon the filing of an application for renewal on a specified form, the payment of the renewal fee, and a delinquent renewal penalty in the amount of $25.
This bill would provide that these registrations expire 2 years from the last day of the month in which the registration was issued or 2 years from the date on which the renewed registration last expired. The bill would make that delinquent renewal penalty equal to 50% of the renewal fee. Because this additional delinquent amount would be deposited into the Contractors License Fund, a continuously appropriated fund, the bill would make an appropriation.
Under existing law, a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson is subject to disciplinary action.
This bill would require a home improvement contractor to notify the registrar in writing about the pending employment of a registered home improvement salesperson. The bill would also require a home improvement contractor to notify the registrar when a registered home improvement salesperson ceases to be employed by the contractor. The bill would make a home improvement contractor who fails to report this information subject to disciplinary action by the registrar.
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.
(a)Every application form for an original license, for renewal thereof, for reinstatement or for reissuance, including both active and inactive licenses, shall be signed by both the applicant and by the person qualifying on behalf of an individual or firm as referred to in Section 7068.1.
(b)(1)Notwithstanding any other law, the board may implement a system that provides for the electronic transmission of an application described in subdivision (a) and the acceptance of a digital or electronic signature as part of the filing of those applications.
(2)The board by regulation may specify the form and manner of these transmissions and acceptances, including, but not limited to, the adoption of any protocols necessary to ensure the validity and security of any information, signature, data, or document transmitted electronically or digitally. Upon the effective date of the regulations, the electronic submission of an initial license application or a renewal application, including a digital or electronic signature, shall satisfy the requirements of this article.
SEC. 2.Section 7152 of the Business and Professions Code is amended to read:7152.(a)Home improvement salesperson is a person who is registered under this chapter and engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs on behalf of a home improvement contractor licensed under this chapter.
(b)A home improvement salesperson shall register with the board in order to engage in the business of, or act in the capacity of, a home improvement salesperson.
(c)The following shall not be required to be registered as home improvement salespersons:
(1)An officer of record of a corporation licensed pursuant to this chapter, or a manager, member, or officer of record of a limited liability company licensed pursuant to this chapter.
(2)A general partner listed on the license record of a partnership licensed pursuant to this chapter.
(3)A qualifying person, as defined in Section 7025.
(4)A salesperson whose sales are all made pursuant to negotiations between the parties if the negotiations are initiated by the prospective buyer at or with a general merchandise retail establishment that operates from a fixed location where goods or services are offered for sale.
(5)A person who contacts the prospective buyer for the exclusive purpose of scheduling appointments for a registered home improvement salesperson.
(6)A bona fide service repairperson who is in the employ of a licensed contractor and whose repair or service call is limited to the service, repair, or emergency repair initially requested by the buyer of the service.
(d)The exemption to registration provided under paragraphs (1), (2), and (3) of subdivision (c) shall apply only to those individuals who, at the time of the sales transaction, are listed as personnel of record for the licensee responsible for soliciting, negotiating, or contracting for a service or improvement that is subject to regulation under this article.
SEC. 3.Section 7153 of the Business and Professions Code is amended to read:7153.(a)It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar. If, upon investigation, the registrar has probable cause to believe that a salesperson is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7.
It is a misdemeanor for any person to engage in the occupation of salesperson of home improvement goods or services within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar.
(b)Any security interest taken by a contractor, to secure any payment for the performance of any act or conduct described in Section 7151 that occurs on or after January 1, 1995, is unenforceable if the person soliciting the act or contract was not a duly registered salesperson or was not exempt from registration pursuant to Section 7152 at the time the homeowner signs the home improvement contract solicited by the salesperson.
SEC. 4.Section 7153.2 of the Business and Professions Code is amended to read:7153.2.All home improvement salesperson registrations issued under the provisions of this article shall expire two years from the last day of the month in which the registration was issued, or two years from the date on which the renewed registration last expired.
SEC. 5.Section 7153.3 of the Business and Professions Code is amended to read:7153.3.(a)To renew a home improvement salesperson registration, which has not expired, the registrant shall before the time at which the registration would otherwise expire, apply for renewal on a form prescribed by the registrar and pay a renewal fee prescribed by this chapter. Renewal of an unexpired registration shall continue the registration in effect for the two-year period following the expiration date of the registration, when it shall expire if it is not again renewed.
(b)An application for renewal of registration is delinquent if the application is not postmarked or received via electronic transmission as authorized by Section 7156.6 by the date on which the registration would otherwise expire. A registration may, however, still be renewed at any time within three years after its expiration upon the filing of an application for renewal on a form prescribed by the registrar and the payment of the renewal fee prescribed by this chapter and a delinquent renewal penalty in the amount of twenty-five dollars ($25). If a registration is not renewed within three years, the person shall make a new application for registration pursuant to Section 7153.1.
(c)The registrar may refuse to renew a registration for failure by the registrant to complete the application for renewal of registration. If a registrant fails to return the application rejected for insufficiency or incompleteness within 90 days from the original date of rejection, the application and fee shall be deemed abandoned. Any application abandoned may not be reinstated. However, the person may file a new application for registration pursuant to Section 7153.1.
The registrar may review and accept the petition of a person who disputes the abandonment of his or her renewal application upon a showing of good cause. This petition shall be received within 90 days of the date the application for renewal is deemed abandoned.
SEC. 6.Section 7154 of the Business and Professions Code is amended to read:7154.(a)A home improvement contractor licensed under this chapter shall notify the registrar in writing, on a form prescribed by the registrar, about the employment of a registered home improvement salesperson, pursuant to the terms of this article. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who is employed by the contractor. The form shall be submitted prior to the home improvement salesperson beginning work for the contractor.
(b)A home improvement contractor shall notify the registrar in writing, on a form prescribed by the registrar, when a registered home improvement salesperson ceases to be employed by the contractor. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who had been employed by the contractor. The form shall be submitted within 90 days after the home improvement salesperson ceases to be employed by the contractor.
(c)A home improvement contractor who employs a registered home improvement salesperson to sell home improvement contracts, but who fails to report to the registrar pursuant to subdivision (a) or (b), is subject to disciplinary action by the registrar.
(d)A home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson as provided in this article, is subject to disciplinary action by the registrar.
SEC. 7.Section 7155.5 of the Business and Professions Code is amended to read:7155.5.Violations of any provisions of this chapter by a home improvement salesperson likewise constitute cause for disciplinary action against the contractor by whom he or she was employed at the time the violation occurred, whether or not the contractor had knowledge of or participated in the act or omission constituting violations of this chapter.
SEC. 8.Section 7156 of the Business and Professions Code is amended to read:7156.It shall be a misdemeanor and a cause for disciplinary action to commit any of the following acts:
(a)For any home improvement salesperson to fail to account for or to remit to his or her employing contractor any payment received in connection with any home improvement transaction or any other transaction involving a work of improvement.
(b)For any person to use a contract form in connection with any home improvement transaction or any other transaction involving a work of improvement if the form fails to disclose the name of the contractor principal by whom he or she is employed.
SEC. 9.Section 7156.6 is added to the Business and Professions Code, to read:7156.6.(a)Notwithstanding any other law, the board may implement a system that provides for the electronic transmission of an initial application or renewal application for the registration required by this article and the electronic transmission of the notices required by Section 7154.
(b)The board by regulation may specify the form and manner of these transmissions, including the adoption of any protocols necessary to ensure the validity and security of any information, data, or document transmitted electronically. Upon the effective date of the regulations, the electronic submission of an initial registration application, a renewal application, or the electronic transmission of a notice required by Section 7154 shall satisfy the requirements of this article.
SEC. 10.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
(a)Every application form for an original license, for renewal thereof, for reinstatement or for reissuance, including both active and inactive licenses, shall be signed by both the applicant and by the person qualifying on behalf of an individual or firm as referred to in Section 7068.1.
(b)(1)Notwithstanding any other law, the board may implement a system that provides for the electronic transmission of an application described in subdivision (a) and the acceptance of a digital or electronic signature as part of the filing of those applications.
(2)The board by regulation may specify the form and manner of these transmissions and acceptances, including, but not limited to, the adoption of any protocols necessary to ensure the validity and security of any information, signature, data, or document transmitted electronically or digitally. Upon the effective date of the regulations, the electronic submission of an initial license application or a renewal application, including a digital or electronic signature, shall satisfy the requirements of this article.
SEC. 2.Section 7152 of the Business and Professions Code is amended to read:7152.(a)Home improvement salesperson is a person who is registered under this chapter and engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs on behalf of a home improvement contractor licensed under this chapter.
(b)A home improvement salesperson shall register with the board in order to engage in the business of, or act in the capacity of, a home improvement salesperson.
(c)The following shall not be required to be registered as home improvement salespersons:
(1)An officer of record of a corporation licensed pursuant to this chapter, or a manager, member, or officer of record of a limited liability company licensed pursuant to this chapter.
(2)A general partner listed on the license record of a partnership licensed pursuant to this chapter.
(3)A qualifying person, as defined in Section 7025.
(4)A salesperson whose sales are all made pursuant to negotiations between the parties if the negotiations are initiated by the prospective buyer at or with a general merchandise retail establishment that operates from a fixed location where goods or services are offered for sale.
(5)A person who contacts the prospective buyer for the exclusive purpose of scheduling appointments for a registered home improvement salesperson.
(6)A bona fide service repairperson who is in the employ of a licensed contractor and whose repair or service call is limited to the service, repair, or emergency repair initially requested by the buyer of the service.
(d)The exemption to registration provided under paragraphs (1), (2), and (3) of subdivision (c) shall apply only to those individuals who, at the time of the sales transaction, are listed as personnel of record for the licensee responsible for soliciting, negotiating, or contracting for a service or improvement that is subject to regulation under this article.
SEC. 3.Section 7153 of the Business and Professions Code is amended to read:7153.(a)It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar. If, upon investigation, the registrar has probable cause to believe that a salesperson is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7.
It is a misdemeanor for any person to engage in the occupation of salesperson of home improvement goods or services within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar.
(b)Any security interest taken by a contractor, to secure any payment for the performance of any act or conduct described in Section 7151 that occurs on or after January 1, 1995, is unenforceable if the person soliciting the act or contract was not a duly registered salesperson or was not exempt from registration pursuant to Section 7152 at the time the homeowner signs the home improvement contract solicited by the salesperson.
SEC. 4.Section 7153.2 of the Business and Professions Code is amended to read:7153.2.All home improvement salesperson registrations issued under the provisions of this article shall expire two years from the last day of the month in which the registration was issued, or two years from the date on which the renewed registration last expired.
SEC. 5.Section 7153.3 of the Business and Professions Code is amended to read:7153.3.(a)To renew a home improvement salesperson registration, which has not expired, the registrant shall before the time at which the registration would otherwise expire, apply for renewal on a form prescribed by the registrar and pay a renewal fee prescribed by this chapter. Renewal of an unexpired registration shall continue the registration in effect for the two-year period following the expiration date of the registration, when it shall expire if it is not again renewed.
(b)An application for renewal of registration is delinquent if the application is not postmarked or received via electronic transmission as authorized by Section 7156.6 by the date on which the registration would otherwise expire. A registration may, however, still be renewed at any time within three years after its expiration upon the filing of an application for renewal on a form prescribed by the registrar and the payment of the renewal fee prescribed by this chapter and a delinquent renewal penalty in the amount of twenty-five dollars ($25). If a registration is not renewed within three years, the person shall make a new application for registration pursuant to Section 7153.1.
(c)The registrar may refuse to renew a registration for failure by the registrant to complete the application for renewal of registration. If a registrant fails to return the application rejected for insufficiency or incompleteness within 90 days from the original date of rejection, the application and fee shall be deemed abandoned. Any application abandoned may not be reinstated. However, the person may file a new application for registration pursuant to Section 7153.1.
The registrar may review and accept the petition of a person who disputes the abandonment of his or her renewal application upon a showing of good cause. This petition shall be received within 90 days of the date the application for renewal is deemed abandoned.
SEC. 6.Section 7154 of the Business and Professions Code is amended to read:7154.(a)A home improvement contractor licensed under this chapter shall notify the registrar in writing, on a form prescribed by the registrar, about the employment of a registered home improvement salesperson, pursuant to the terms of this article. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who is employed by the contractor. The form shall be submitted prior to the home improvement salesperson beginning work for the contractor.
(b)A home improvement contractor shall notify the registrar in writing, on a form prescribed by the registrar, when a registered home improvement salesperson ceases to be employed by the contractor. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who had been employed by the contractor. The form shall be submitted within 90 days after the home improvement salesperson ceases to be employed by the contractor.
(c)A home improvement contractor who employs a registered home improvement salesperson to sell home improvement contracts, but who fails to report to the registrar pursuant to subdivision (a) or (b), is subject to disciplinary action by the registrar.
(d)A home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson as provided in this article, is subject to disciplinary action by the registrar.
SEC. 7.Section 7155.5 of the Business and Professions Code is amended to read:7155.5.Violations of any provisions of this chapter by a home improvement salesperson likewise constitute cause for disciplinary action against the contractor by whom he or she was employed at the time the violation occurred, whether or not the contractor had knowledge of or participated in the act or omission constituting violations of this chapter.
SEC. 8.Section 7156 of the Business and Professions Code is amended to read:7156.It shall be a misdemeanor and a cause for disciplinary action to commit any of the following acts:
(a)For any home improvement salesperson to fail to account for or to remit to his or her employing contractor any payment received in connection with any home improvement transaction or any other transaction involving a work of improvement.
(b)For any person to use a contract form in connection with any home improvement transaction or any other transaction involving a work of improvement if the form fails to disclose the name of the contractor principal by whom he or she is employed.
SEC. 9.Section 7156.6 is added to the Business and Professions Code, to read:7156.6.(a)Notwithstanding any other law, the board may implement a system that provides for the electronic transmission of an initial application or renewal application for the registration required by this article and the electronic transmission of the notices required by Section 7154.
(b)The board by regulation may specify the form and manner of these transmissions, including the adoption of any protocols necessary to ensure the validity and security of any information, data, or document transmitted electronically. Upon the effective date of the regulations, the electronic submission of an initial registration application, a renewal application, or the electronic transmission of a notice required by Section 7154 shall satisfy the requirements of this article.
SEC. 10.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
(a)Every application form for an original license, for renewal thereof, for reinstatement or for reissuance, including both active and inactive licenses, shall be signed by both the applicant and by the person qualifying on behalf of an individual or firm as referred to in Section 7068.1.
(b)(1)Notwithstanding any other law, the board may implement a system that provides for the electronic transmission of an application described in subdivision (a) and the acceptance of a digital or electronic signature as part of the filing of those applications.
(2)The board by regulation may specify the form and manner of these transmissions and acceptances, including, but not limited to, the adoption of any protocols necessary to ensure the validity and security of any information, signature, data, or document transmitted electronically or digitally. Upon the effective date of the regulations, the electronic submission of an initial license application or a renewal application, including a digital or electronic signature, shall satisfy the requirements of this article.
SECTION 1.SEC. 2.Section 7152 of the Business and Professions Code is amended to read:7152.(a)Home improvement salesperson is a person who is registered under this chapter and engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs on behalf of a home improvement contractor licensed under this chapter.
(b)A home improvement salesperson shall register with the board in order to engage in the business of, or act in the capacity of, a home improvement salesperson.
(c)The following shall not be required to be registered as home improvement salespersons:
(1)An officer of record of a corporation licensed pursuant to this chapter, or a manager, member, or officer of record of a limited liability company licensed pursuant to this chapter.
(2)A general partner listed on the license record of a partnership licensed pursuant to this chapter.
(3)A qualifying person, as defined in Section 7025.
(4)A salesperson whose sales are all made pursuant to negotiations between the parties if the negotiations are initiated by the prospective buyer at or with a general merchandise retail establishment that operates from a fixed location where goods or services are offered for sale.
(5)A person who contacts the prospective buyer for the exclusive purpose of scheduling appointments for a registered home improvement salesperson.
(6)A bona fide service repairperson who is in the employ of a licensed contractor and whose repair or service call is limited to the service, repair, or emergency repair initially requested by the buyer of the service.
(d)The exemption to registration provided under paragraphs (1), (2), and (3) of subdivision (c) shall apply only to those individuals who, at the time of the sales transaction, are listed as personnel of record for the licensee responsible for soliciting, negotiating, or contracting for a service or improvement that is subject to regulation under this article.
SEC. 2.SEC. 3.Section 7153 of the Business and Professions Code is amended to read:7153.(a)It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar. If, upon investigation, the registrar has probable cause to believe that a salesperson is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7.
It is a misdemeanor for any person to engage in the occupation of salesperson of home improvement goods or services within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar.
(b)Any security interest taken by a contractor, to secure any payment for the performance of any act or conduct described in Section 7151 that occurs on or after January 1, 1995, is unenforceable if the person soliciting the act or contract was not a duly registered salesperson or was not exempt from registration pursuant to Section 7152 at the time the homeowner signs the home improvement contract solicited by the salesperson.
SEC. 3.SEC. 4.Section 7153.2 of the Business and Professions Code is amended to read:7153.2.All home improvement salesperson registrations issued under the provisions of this article shall expire two years from the last day of the month in which the registration was issued, or two years from the date on which the renewed registration last expired.
SEC. 4.SEC. 5.Section 7153.3 of the Business and Professions Code is amended to read:7153.3.(a)To renew a home improvement salesperson registration, which has not expired, the registrant shall before the time at which the registration would otherwise expire, apply for renewal on a form prescribed by the registrar and pay a renewal fee prescribed by this chapter. Renewal of an unexpired registration shall continue the registration in effect for the two-year period following the expiration date of the registration, when it shall expire if it is not again renewed.
(b)An application for renewal of registration is delinquent if the application is not postmarked or received via electronic transmission as authorized by Section 7156.6 by the date on which the registration would otherwise expire. A registration may, however, still be renewed at any time within three years after its expiration upon the filing of an application for renewal on a form prescribed by the registrar and the payment of the renewal fee prescribed by this chapter and a delinquent renewal penalty in the amount of twenty-five dollars ($25). If a registration is not renewed within three years, the person shall make a new application for registration pursuant to Section 7153.1.
(c)The registrar may refuse to renew a registration for failure by the registrant to complete the application for renewal of registration. If a registrant fails to return the application rejected for insufficiency or incompleteness within 90 days from the original date of rejection, the application and fee shall be deemed abandoned. Any application abandoned may not be reinstated. However, the person may file a new application for registration pursuant to Section 7153.1.
The registrar may review and accept the petition of a person who disputes the abandonment of his or her renewal application upon a showing of good cause. This petition shall be received within 90 days of the date the application for renewal is deemed abandoned.
SEC. 5.SEC. 6.Section 7154 of the Business and Professions Code is amended to read:7154.(a)A home improvement contractor licensed under this chapter shall notify the registrar in writing, on a form prescribed by the registrar, about the employment of a registered home improvement salesperson, pursuant to the terms of this article. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who is employed by the contractor. The form shall be submitted prior to the home improvement salesperson beginning work for the contractor.
(b)A home improvement contractor shall notify the registrar in writing, on a form prescribed by the registrar, when a registered home improvement salesperson ceases to be employed by the contractor. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who had been employed by the contractor. The form shall be submitted within 90 days after the home improvement salesperson ceases to be employed by the contractor.
(c)A home improvement contractor who employs a registered home improvement salesperson to sell home improvement contracts, but who fails to report to the registrar pursuant to subdivision (a) or (b), is subject to disciplinary action by the registrar.
(d)A home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson as provided in this article, is subject to disciplinary action by the registrar.
SEC. 6.SEC. 7.Section 7155.5 of the Business and Professions Code is amended to read:7155.5.Violations of any provisions of this chapter by a home improvement salesperson likewise constitute cause for disciplinary action against the contractor by whom he or she was employed at the time the violation occurred, whether or not the contractor had knowledge of or participated in the act or omission constituting violations of this chapter.
SEC. 7.SEC. 8.Section 7156 of the Business and Professions Code is amended to read:7156.It shall be a misdemeanor and a cause for disciplinary action to commit any of the following acts:
(a)For any home improvement salesperson to fail to account for or to remit to his or her employing contractor any payment received in connection with any home improvement transaction or any other transaction involving a work of improvement.
(b)For any person to use a contract form in connection with any home improvement transaction or any other transaction involving a work of improvement if the form fails to disclose the name of the contractor principal by whom he or she is employed.
SEC. 8.SEC. 9.Section 7156.6 is added to the Business and Professions Code, to read:7156.6.(a)Notwithstanding any other law, the board may implement a system that provides for the electronic transmission of an initial application or renewal application for the registration required by this article and the electronic transmission of the notices required by Section 7154.
(b)The board by regulation may specify the form and manner of these transmissions, including the adoption of any protocols necessary to ensure the validity and security of any information, data, or document transmitted electronically. Upon the effective date of the regulations, the electronic submission of an initial registration application, a renewal application, or the electronic transmission of a notice required by Section 7154 shall satisfy the requirements of this article.
SEC. 9.SEC. 10.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
(a)Home improvement salesperson is a person, person who is registered under this chapter, employed by a home improvement contractor licensed under this chapter to solicit, sell, negotiate, or execute and engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs.
(b)A home improvement salesperson shall register with the board in order to engage in the business of, or act in the capacity of, a home improvement salesperson.
(b)
(c)The following shall not be required to be registered as home improvement salespersons:
(1)An officer of record of a corporation licensed pursuant to this chapter, or a manager, member, or officer of record of a limited liability company licensed pursuant to this chapter.
(2)A general partner listed on the license record of a partnership licensed pursuant to this chapter.
(3)A qualifying person, as defined in Section 7025.
(4)A salesperson whose sales are all made pursuant to negotiations between the parties if the negotiations are initiated by the prospective buyer at or with a general merchandise retail establishment that operates from a fixed location where goods or services are offered for sale.
(5)A person who contacts the prospective buyer for the exclusive purpose of scheduling appointments for a registered home improvement salesperson.
(6)A bona fide service repairperson who is in the employ of a licensed contractor and whose repair or service call is limited to the service, repair, or emergency repair initially requested by the buyer of the service.
(c)
(d)The exemption to registration provided under paragraphs (1), (2), and (3) of subdivision (b) (c) shall apply only to those individuals who, at the time of the sales transaction, are listed as personnel of record for the licensee responsible for soliciting, negotiating, or contracting for a service or improvement that is subject to regulation under this article.
SEC. 2.Section 7153 of the Business and Professions Code is amended to read:7153.(a)It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar. If, upon investigation, the registrar has probable cause to believe that a salesperson is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7.
It is a misdemeanor for any person to engage in the occupation of salesperson of home improvement goods or services within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar.
(b)Any security interest taken by a contractor, to secure any payment for the performance of any act or conduct described in Section 7151 that occurs on or after January 1, 1995, is unenforceable if the person soliciting the act or contract was not a duly registered salesperson or was not exempt from registration pursuant to Section 7152 at the time the homeowner signs the home improvement contract solicited by the salesperson.
SEC. 3.Section 7153.2 of the Business and Professions Code is amended to read:7153.2.All home improvement salesperson registrations issued under the provisions of this article shall expire two years from the last day of the month in which the registration was issued, or two years from the date on which the renewed registration last expired.
SEC. 4.Section 7153.3 of the Business and Professions Code is amended to read:7153.3.(a)To renew a home improvement salesperson registration, which has not expired, the registrant shall before the time at which the registration would otherwise expire, apply for renewal on a form prescribed by the registrar and pay a renewal fee prescribed by this chapter. Renewal of an unexpired registration shall continue the registration in effect for the two-year period following the expiration date of the registration, when it shall expire if it is not again renewed.
(b)An application for renewal of registration is delinquent if the application is not postmarked or received via electronic transmission as authorized by Section 7156.6 by the date on which the registration would otherwise expire. A registration may, however, still be renewed at any time within three years after its expiration upon the filing of an application for renewal on a form prescribed by the registrar and the payment of the renewal fee prescribed by this chapter and a delinquent renewal penalty in the amount of twenty-five dollars ($25). If a registration is not renewed within three years, the person shall make a new application for registration pursuant to Section 7153.1.
(c)The registrar may refuse to renew a registration for failure by the registrant to complete the application for renewal of registration. If a registrant fails to return the application rejected for insufficiency or incompleteness within 90 days from the original date of rejection, the application and fee shall be deemed abandoned. Any application abandoned may not be reinstated. However, the person may file a new application for registration pursuant to Section 7153.1.
The registrar may review and accept the petition of a person who disputes the abandonment of his or her renewal application upon a showing of good cause. This petition shall be received within 90 days of the date the application for renewal is deemed abandoned.
SEC. 5.Section 7154 of the Business and Professions Code is amended to read:7154.(a)A home improvement contractor licensed under this chapter shall notify the registrar in writing, on a form prescribed by the registrar, about the pending employment of a registered home improvement salesperson, pursuant to the terms of this article. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who is pending employment employed by the contractor. The form shall be submitted prior to the home improvement salesperson beginning work for the contractor.
(b)A home improvement contractor shall notify the registrar in writing, on a form prescribed by the registrar, when a registered home improvement salesperson ceases to be employed by the contractor. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who had been employed by the contractor. The form shall be submitted within 90 days after the home improvement salesperson ceases to be employed by the contractor.
(c)A home improvement contractor who employs a registered home improvement salesperson to sell home improvement contracts, but who fails to report to the registrar pursuant to subdivision (a) or (b), is subject to disciplinary action by the registrar.
(d)A home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson as provided in this article, is subject to disciplinary action by the registrar.
SEC. 6.Section 7155.5 of the Business and Professions Code is amended to read:7155.5.Violations of any provisions of this chapter by a home improvement salesperson likewise constitute cause for disciplinary action against the contractor by whom he or she was employed at the time the violation occurred, whether or not the contractor had knowledge of or participated in the act or omission constituting violations of this chapter.
SEC. 7.Section 7156 of the Business and Professions Code is amended to read:7156.It shall be a misdemeanor and a cause for disciplinary action to commit any of the following acts:
(a)For any home improvement salesperson to fail to account for or to remit to his or her employing contractor any payment received in connection with any home improvement transaction or any other transaction involving a work of improvement.
(b)For any person to use a contract form in connection with any home improvement transaction or any other transaction involving a work of improvement if the form fails to disclose the name of the contractor principal by whom he or she is employed.
SEC. 8.Section 7156.6 is added to the Business and Professions Code, to read:7156.6.(a)Notwithstanding any other law, the board may implement a system that provides for the electronic transmission of an initial application or renewal application for the registration required by this article and the electronic transmission of the notices required by Section 7154.
(b)The board by regulation may specify the form and manner of these transmissions, including the adoption of any protocols necessary to ensure the validity and security of any information, data, or document transmitted electronically. Upon the effective date of the regulations, the electronic submission of an initial registration application, a renewal application, or the electronic transmission of a notice required by Section 7154 shall satisfy the requirements of this article.
SEC. 8.SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
(a)Home improvement salesperson is a person, who is registered under this chapter, employed by a home improvement contractor licensed under this chapter to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs.
(b)The following shall not be required to be registered as home improvement salespersons:
(1)An officer of record of a corporation licensed pursuant to this chapter, or a manager, member, or officer of record of a limited liability company licensed pursuant to this chapter.
(2)A general partner listed on the license record of a partnership licensed pursuant to this chapter.
(3)A qualifying person, as defined in Section 7025.
(4)A salesperson whose sales are all made pursuant to negotiations between the parties if the negotiations are initiated by the prospective buyer at or with a general merchandise retail establishment that operates from a fixed location where goods or services are offered for sale.
(5)A person who contacts the prospective buyer for the exclusive purpose of scheduling appointments for a registered home improvement salesperson.
(6)A bona fide service repairperson who is in the employ of a licensed contractor and whose repair or service call is limited to the service, repair, or emergency repair initially requested by the buyer of the service.
(c)The exemption to registration provided under paragraphs (1), (2), and (3) of subdivision (b) shall apply only to those individuals who, at the time of the sales transaction, are listed as personnel of record for the licensee responsible for soliciting, negotiating, or contracting for a service or improvement that is subject to regulation under this article.
SEC. 2.Section 7153 of the Business and Professions Code is amended to read:7153.(a)It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar. If, upon investigation, the registrar has probable cause to believe that a salesperson is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7.
It is a misdemeanor for any person to engage in the occupation of salesperson of home improvement goods or services within this state without having, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar.
(b)Any security interest taken by a contractor, to secure any payment for the performance of any act or conduct described in Section 7151 that occurs on or after January 1, 1995, is unenforceable if the person soliciting the act or contract was not a duly registered salesperson or was not exempt from registration pursuant to Section 7152 at the time the homeowner signs the home improvement contract solicited by the salesperson.
SEC. 3.Section 7153.2 of the Business and Professions Code is amended to read:7153.2.All home improvement salesperson registrations issued under the provisions of this article shall expire two years from the last day of the month in which the registration was issued, or two years from the date on which the renewed registration last expired.
SEC. 4.Section 7153.3 of the Business and Professions Code is amended to read:7153.3.(a)To renew a home improvement salesperson registration, which has not expired, the registrant shall before the time at which the registration would otherwise expire, apply for renewal on a form prescribed by the registrar and pay a renewal fee prescribed by this chapter. Renewal of an unexpired registration shall continue the registration in effect for the two-year period following the expiration date of the registration, when it shall expire if it is not again renewed.
(b)An application for renewal of registration is delinquent if the application is not postmarked by the date on which the registration would otherwise expire. A registration may, however, still be renewed at any time within three years after its expiration upon the filing of an application for renewal on a form prescribed by the registrar and the payment of the renewal fee prescribed by this chapter and a delinquent renewal penalty in an amount equal to 50 percent of the renewal fee, if the registration is renewed after its expiration. the amount of twenty-five dollars ($25). If a registration is not renewed within three years, the person shall make a new application for registration pursuant to Section 7153.1.
(c)The registrar may refuse to renew a registration for failure by the registrant to complete the application for renewal of registration. If a registrant fails to return the application rejected for insufficiency or incompleteness within 90 days from the original date of rejection, the application and fee shall be deemed abandoned. Any application abandoned may not be reinstated. However, the person may file a new application for registration pursuant to Section 7153.1.
The registrar may review and accept the petition of a person who disputes the abandonment of his or her renewal application upon a showing of good cause. This petition shall be received within 90 days of the date the application for renewal is deemed abandoned.
SEC. 5.Section 7154 of the Business and Professions Code is amended to read:7154.(a)A home improvement contractor licensed under this chapter shall notify the registrar in writing, on a form prescribed by the registrar, about the pending employment of a registered home improvement salesperson, pursuant to the terms of this article. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who is pending employment by the contractor. The form shall be submitted prior to the home improvement salesperson beginning work for the contractor.
(b)A home improvement contractor shall notify the registrar in writing, on a form prescribed by the registrar, when a registered home improvement salesperson ceases to be employed by the contractor. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who had been employed by the contractor. The form shall be submitted within 90 days after the home improvement salesperson ceases to be employed by the contractor.
(c)A home improvement contractor who employs a registered home improvement salesperson to sell home improvement contracts, but who fails to report to the registrar pursuant to subdivision (a) or (b), is subject to disciplinary action by the registrar.
(d)A home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the registrar as a home improvement salesperson as provided in this article, is subject to disciplinary action by the registrar.
SEC. 6.Section 7155.5 of the Business and Professions Code is amended to read:7155.5.Violations of any provisions of this chapter by a home improvement salesperson likewise constitute cause for disciplinary action against the contractor by whom he or she was employed at the time the violation occurred, whether or not the contractor had knowledge of or participated in the act or omission constituting violations of this chapter.
SEC. 7.Section 7156 of the Business and Professions Code is amended to read:7156.It shall be a misdemeanor and a cause for disciplinary action to commit any of the following acts:
(a)For any home improvement salesperson to fail to account for or to remit to his or her employing contractor any payment received in connection with any home improvement transaction or any other transaction involving a work of improvement.
(b)For any person to use a contract form in connection with any home improvement transaction or any other transaction involving a work of improvement if the form fails to disclose the name of the contractor principal by whom he or she is employed.
SEC. 8.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
(a)Home improvement salesperson is a person, who is registered under this chapter, employed by a home improvement contractor licensed under this chapter to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs.
(b)The following shall not be required to be registered as home improvement salespersons:
(1)An officer of record of a corporation licensed pursuant to this chapter, or a manager, member, or officer of record of a limited liability company licensed pursuant to this chapter.
(2)A general partner listed on the license record of a partnership licensed pursuant to this chapter.
(3)A qualifying person, as defined in Section 7025.
(4)A salesperson whose sales are all made pursuant to negotiations between the parties if the negotiations are initiated by the prospective buyer at or with a general merchandise retail establishment that operates from a fixed location where goods or services are offered for sale.
(5)A person who contacts the prospective buyer for the exclusive purpose of scheduling appointments for a registered home improvement salesperson.
(6)A bona fide service repairperson who is in the employ of a licensed contractor and whose repair or service call is limited to the service, repair, or emergency repair initially requested by the buyer of the service.
(c)The exemption to registration provided under paragraphs (1), (2), and (3) of subdivision (b) shall apply only to those individuals who, at the time of the sales transaction, are listed as personnel of record for the licensee responsible for soliciting, negotiating, or contracting for a service or improvement that is subject to regulation under this article.
SEC. 2.Section 7153 of the Business and Professions Code is amended to read:7153.(a)It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having a, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar for each of the home improvement contractors by whom he or she is employed as a home improvement salesperson registrar. If, upon investigation, the registrar has probable cause to believe that a salesperson is in violation of this section, the registrar may issue a citation pursuant to Section 7028.7.
It is a misdemeanor for any person to engage in the occupation of salesperson of home improvement goods or services within this state without having a, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the registrar.
(b)Any security interest taken by a contractor, to secure any payment for the performance of any act or conduct described in Section 7151 that occurs on or after January 1, 1995, is unenforceable if the person soliciting the act or contract was not a duly registered salesperson or was not exempt from registration pursuant to Section 7152 at the time the homeowner signs the home improvement contract solicited by the salesperson.
SEC. 3.Section 7153.2 of the Business and Professions Code is amended to read:7153.2.All home improvement salesperson registrations issued under the provisions of this article shall expire on a date established pursuant to Section 152.6. two years from the last day of the month in which the registration was issued, or two years from the date on which the renewed registration last expired.
SEC. 4.Section 7153.3 of the Business and Professions Code is amended to read:7153.3.(a)To renew a home improvement salesperson registration, which has not expired, the registrant shall before the time at which the registration would otherwise expire, apply for renewal on a form prescribed by the registrar and pay a renewal fee prescribed by this chapter. Renewal of an unexpired registration shall continue the registration in effect for the two-year period following the expiration date of the registration, when it shall expire if it is not again renewed.
(b)An application for renewal of registration is delinquent if the application is not postmarked by the date on which the registration would otherwise expire. A registration may, however, still be renewed at any time within three years after its expiration upon the filing of an application for renewal on a form prescribed by the registrar and the payment of the renewal fee prescribed by this chapter and a delinquent renewal penalty in the an amount of twenty-five dollars ($25). equal to 50 percent of the renewal fee, if the registration is renewed after its expiration. If a registration is not renewed within three years, the person shall make a new application for registration pursuant to Section 7153.1.
(c)The registrar may refuse to renew a registration for failure by the registrant to complete the application for renewal of registration. If a registrant fails to return the application rejected for insufficiency or incompleteness within 90 days from the original date of rejection, the application and fee shall be deemed abandoned. Any application abandoned may not be reinstated. However, the person may file a new application for registration pursuant to Section 7153.1.
The registrar may review and accept the petition of a person who disputes the abandonment of his or her renewal application upon a showing of good cause. This petition shall be received within 90 days of the date the application for renewal is deemed abandoned.
SEC. 5.Section 7154 of the Business and Professions Code is amended to read:7154.(a)A home improvement contractor licensed under this chapter shall notify the registrar in writing, on a form prescribed by the registrar, about the pending employment of a registered home improvement salesperson, pursuant to the terms of this article. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who is pending employment by the contractor. The form shall be submitted prior to the home improvement salesperson beginning work for the contractor.
(b)A home improvement contractor shall notify the registrar in writing, on a form prescribed by the registrar, when a registered home improvement salesperson ceases to be employed by the contractor. This notification requirement shall include, but not be limited to, the name and registration number of the home improvement salesperson who had been employed by the contractor. The form shall be submitted within 90 days after the home improvement salesperson ceases to be employed by the contractor.
(c)A home improvement contractor who employs a registered home improvement salesperson to sell home improvement contracts, but who fails to report to the registrar pursuant to subdivision (a) or (b), is subject to disciplinary action by the registrar.
(d)A home improvement contractor who employs a person to sell home improvement contracts while such that person is not registered by the registrar as a home improvement salesman salesperson as provided in this article, is subject to disciplinary action by the registrar.
SEC. 6.Section 7155.5 of the Business and Professions Code is amended to read:7155.5.Violations of any provisions of this chapter by a home improvement salesperson, likewise constitutes a constitute cause for disciplinary action against the contractor by whom he or she was employed at the time the violation occurred, whether or not he or she the contractor had knowledge of or participated in the act or omission constituting violations of this chapter.
SEC. 7.Section 7156 of the Business and Professions Code is amended to read:7156.It shall be a misdemeanor and a cause for disciplinary action to commit any of the following acts:
(a)For any home improvement salesperson to fail to account for or to remit to his or her employing contractor any payment received in connection with any home improvement transaction or any other transaction involving a work of improvement.
(b)For any person to use a contract form in connection with any home improvement transaction or any other transaction involving a work of improvement if the form fails to disclose the name of the contractor principal by whom he or she is employed.
SEC. 8.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
|
Date
|
Status
|
|---|---|
| May 20, 2015 | Ordered to special consent calendar. |
| Sep 8, 2015 | Chaptered by Secretary of State. Chapter 281, Statutes of 2015. |
| Sep 8, 2015 | Approved by the Governor. |
| Aug 26, 2015 | Enrolled and presented to the Governor at 4:30 p.m. |
| Aug 20, 2015 | Assembly amendments concurred in. (Ayes 38. Noes 0.) Ordered to engrossing and enrolling. |
| Aug 19, 2015 | Ordered to special consent calendar. |
| Jul 16, 2015 | Read third time. Passed. (Ayes 79. Noes 0. Page 2434.) Ordered to the Senate. |
| Jul 16, 2015 | In Senate. Concurrence in Assembly amendments pending. |
| Jul 9, 2015 | Read second time. Ordered to consent calendar. |
| Jul 8, 2015 | From committee: Do pass. Ordered to consent calendar. (Ayes 14. Noes 0.) (July 8). |
| Jun 23, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 14. Noes 0.) (June 23). Re-referred to Com. on APPR. |
| Jun 17, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & P. |
| Jun 11, 2015 | Referred to Com. on B. & P. |
| May 22, 2015 | Read third time. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly. |
| May 22, 2015 | Read third time. Passed. (Ayes 38. Noes 0. Page 1074.) Ordered to the Assembly. |
| May 22, 2015 | In Assembly. Read first time. Held at Desk. |
| Feb 26, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 19, 2015 | Read second time. Ordered to third reading. |
| May 18, 2015 | From committee: Do pass. (Ayes 7. Noes 0.) (May 18). |
| May 18, 2015 | From committee: Do pass. (Ayes 7. Noes 0. Page 1034.) (May 18). |
| May 12, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| May 8, 2015 | Set for hearing May 18. |
| May 4, 2015 | May 11 set for first hearing canceled at the request of author. |
| May 1, 2015 | Set for hearing May 11. |
| Apr 28, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0. Page 794.) (April 27). Re-referred to Com. on APPR. |
| Apr 20, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on B., P. & E.D. |
| Apr 14, 2015 | Set for hearing April 27. |
| Apr 13, 2015 | April 13 set for first hearing canceled at the request of author. |
| Mar 18, 2015 | Set for hearing April 13. |
| Mar 12, 2015 | Referred to Com. on B., P. & E.D. |
| Feb 27, 2015 | From printer. May be acted upon on or after March 29. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 20, 2015 | Special Consent #6 SB561 Monning | Senate Floor |
Passed |
|
| Jul 16, 2015 | SB 561 Monning Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Jul 8, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 23, 2015 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Business and Professions |
Passed |
|
| May 22, 2015 | Special Consent #2 SB561 Monning | Senate Floor |
Passed |
|
| May 18, 2015 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 27, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Business, Professions and Economic Development |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Fence Contractors | ** Support | May 18, 2015 |
| California Solar Energy Industries Association | * Indeterminate | May 18, 2015 |
| California Solar Energy Industry Association | * Support | May 18, 2015 |
| Contractors State License Board | ** Support | May 18, 2015 |
| Flasher Barricade Association | ** Support | May 18, 2015 |
| Gallagher's Plumbing, Heating, and Air Conditioning. | ** Support | May 18, 2015 |
| Sacramento Municipal Utility District | * Indeterminate | May 18, 2015 |
| Southern California Public Power Authority (Scppa) | * Indeterminate | May 18, 2015 |
SB 561
Page 5
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
UNFINISHED BUSINESS
Bill No: SB 561
Amended: 6/17/15
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 4/27/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/18/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SENATE FLOOR: 38-0, 5/22/15
AYES: Allen, Anderson, Bates, Beall, Berryhill, Block, Cannella, De León, Gaines, Galgiani, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Stone, Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Fuller
ASSEMBLY FLOOR: 79-0, 7/16/15 (Consent) - See last page for vote
SUBJECT: Contractors: home improvement salespersons
DIGEST: This bill eliminates the requirement that a home improvement salesperson (HIS) register separately with the Contractors State License Board (CSLB) for each home improvement contractor he or she works for, and instead allows an HIS to utilize a single registration with one or more licensed contractors; and authorizes the CSLB to adopt regulations providing for the electronic transmission of initial and renewal applications for HIS registration and for a contractor license, including the acceptance of a digital or electronic signature.
Assembly Amendments (1) authorize CSLB to implement a system, through regulations, that provides for the electronic transmission of a contractor’s license application, as specified, and acceptance of a digital or electronic signature as part of the filing of those applications; and (2) make technical changes to the definition of a “home improvement salesperson”.
Existing law:
Provides for the licensure and regulation of more than 300,000 contractors under the Contractors State License Law (Contractors Law) by the CSLB
Provides that HIS registrations expire subject to board determination.
(BPC § 152.6)
Defines “home improvement salesperson” as a person employed by a home improvement contractor licensed under the Contractors Law to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs. (BPC § 7152)
Provides that it is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having a registration issued by the Registrar for each of the home improvement contractors by whom he or she is employed as an HIS.
(BPC § 7153)
Provides that an application for renewal of registration is delinquent if the application is not postmarked by the date on which the registration would otherwise expire. (BPC § 7153.3(a))
Authorizes a registration to be renewed at any time within three years after its expiration upon the filing of an application for renewal on a specified form, the payment of the renewal fee, and a delinquent renewal penalty in the amount of $25. (BPC § 7153.3(a))
Provides that a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the Registrar as an HIS, is subject to disciplinary action. (BPC § 7154)
This bill:
Authorizes CSLB to implement a system, through regulations, that provides for the electronic transmission of a contractor’s license application, as specified, and acceptance of a digital or electronic signature as part of the filing of those applications.
Makes technical changes to the definition of a “home improvement salesperson”.
Deletes the requirement that an HIS have a registration for each contractor by whom he or she is employed and instead requires the HIS to register with CSLB in order to engage in the business of an HIS.
Specifies that an HIS registration expires two years from the last day of the month in which the registration was issued, or two years from the date on which a renewed registration last expired.
Requires a licensed home improvement contractor to notify the CSLB registrar about the employment of a registered HIS, as specified, and to also notify the CSLB when a registered HIS ceases to be employed by the contractor.
Specifies that a contractor who employs a registered HIS, but fails to comply with the CSLB notification requirements, is subject to disciplinary action.
Authorizes CSLB to implement a system, through regulations, that provides for the electronic transmission of an initial or renewal application for HIS registration, and for transmission of contractor notices.
Makes other technical and clarifying changes.
Background
A “home improvement salesperson” is defined as a person employed by a home improvement contractor licensed under the Contractors Law to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs. It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having a CSLB registration for each of the home improvement contractors by whom he or she is employed. A home improvement contractor who employs a person to sell home improvement contracts while that person is not registered with CSLB is subject to disciplinary action.
According to CSLB, there are currently approximately 11,170 active HIS registrants, nearly 5,500 expired registrants, and almost 85,000 invalid registrants. In the 2013-14 fiscal year, CSLB received approximately 800 HIS applications a month, a 40% increase over the previous three years. This significant increase has led to a backlog of applications and processing delays.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, this bill creates one-time costs to the Contractors License Fund for CSLB programming and IT costs in the range of $110,000 to $130,000 in 2015-16 to provide for the changes to HIS registration and contractor notification requirements. This bill will also result in minor and absorbable costs to CSLB in 2016-17 to adopt regulations.
Contractors State License Board (source)
California Fence Contractors
California Solar Energy Industries Association
Flasher Barricade Association
Gallagher's Plumbing, Heating, and Air Conditioning
None received
ARGUMENTS IN SUPPORT: Supporters believe that the change proposed by this bill will improve the current registration process and provide increased flexibility for HIS registrants.
ASSEMBLY FLOOR: 79-0, 7/16/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Gordon
Prepared by: Mark Mendoza / B., P. & E.D. / (916) 651-1868
8/13/15 13:07:52
**** END ****
Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 561
(Monning) – As Amended June 17, 2015
Policy Committee: |
Business and Professions |
Vote: |
14 - 0 |
|
|
|
|
|
|
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill eliminates the requirement that a home improvement salesperson (HIS) register separately with the Contractors State License Board (CSLB) for each home improvement contractor he or she works for, and instead allows an HIS to utilize a single registration with one or more licensed contractors. The bill also authorizes the CSLB to adopt regulations providing for the electronic transmission of initial and renewal applications for HIS registration and for a contractor license, including the acceptance of a digital or electronic signature.
FISCAL EFFECT:
One-time CSLB programming and IT costs in the range of $110,000 to $130,000 in 2015-16 to provide for the changes to HIS registration and contractor notification requirements. (Contractors License Fund)
Minor and absorbable costs to CSLB in 2016-17 to adopt regulations.
COMMENTS:
Purpose. According to the author, "[This bill] streamlines the HIS registration process and provides a registration system that makes it easier for an HIS to work for multiple contractors while continuing to be in good standing with the CSLB." This bill is sponsored by the CSLB.
Background. The Contractors State License Law provides for the licensure and regulation of more than 300,000 contractors. A “home improvement salesperson” is defined as a person employed by a home improvement contractor licensed under the Contractors Law to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs. It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having a CSLB registration for each of the home improvement contractors by whom he or she is employed. A home improvement contractor who employs a person to sell home improvement contracts while that person is not registered with CSLB is subject to disciplinary action. Existing law authorizes a HIS registration to be renewed at any rime within three years after its expiration, if the applicant pays the renewal fee and a $25 delinquent renewal penalty.
According to CSLB, there are currently approximately 12,600 active HIS registrants, nearly 5,700 expired registrants, and over 85,000 invalid registrants. In the 2013-14 fiscal year, CSLB received approximately 800 HIS applications a month, a 40% increase over the previous three years. This significant increase has led to a backlog of applications and processing delays.
This bill would streamline the current registration process and provide increased flexibility for HIS registrants.
Prior Related Legislation.
AB 2457 (Nakanishi), Chapter 106, Statutes of 2006, exempted from HIS registration a general partner of a licensee and makes the exemption, as it applies to such a general partner or a corporate officer or qualifying person, applicable only in specified circumstances.
SB 364 (Figueroa), Chapter 789, Statutes of 2003, delayed until July 1, 2004, the requirement that an applicant for registration as a HIS furnish a full set of fingerprints to the CSLB.
SB 1953 (Figueroa), Chapter 744, Statutes of 2002, required all applicants for a HIS license to submit a set of fingerprints to the CSLB with his or her application and requires the CSLB to obtain and receive criminal history information from the Department of Justice and the Federal Bureau of Investigation for a criminal history records check.
AB 2544 (Bill Campbell), Chapter 372, Statutes of 2002, required the CSLB to post specified information on its website each week regarding HIS registration applications.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
SB 561
Page 4
Date of Hearing: June 23, 2015
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Susan Bonilla, Chair
SB 561
(Monning) – As Amended June 17, 2015
SENATE VOTE: 38-0
SUBJECT: Contractors: home improvement salespersons.
SUMMARY: Eliminates the requirement that a home improvement salesperson (HIS) register separately with the Contractors State License Board (CSLB) for each home improvement contractor he or she works for, and instead allows an HIS to utilize a single registration with one or more licensed contractors.
EXISTING LAW:
Provides for the licensure and regulation of contractors, including home improvement contractors, under the Contractors' State License Law (Contractors Law) by the CSLB within the Department of Consumer Affairs (DCA). The CSLB is under the direction of the registrar of contractors (Registrar). (Business and Professions Code (BPC) § 7000 et seq.)
Defines a HIS as a person employed by a home improvement contractor licensed under the Contractors Law to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs, except as specified. (BPC § 7152)
Provides that it is a misdemeanor for any person to engage in the occupation of a salesperson for one or more home improvement contractors within this state without having a registration issued by the Registrar for each of the home improvement contractors by whom he or she is employed as a HIS. (BPC § 7153)
Provides that HIS registrations expire subject to board determination. (BPC § 152.6)
Provides that an application for renewal of registration is delinquent if the application is not postmarked by the date on which the registration would otherwise expire. (BPC § 7153.3(a))
Provides that a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the Registrar as a HIS, is subject to disciplinary action. (BPC § 7154)
Requires that every application form for an original contractor license, for renewal thereof, for reinstatement or for reissuance, including both active and inactive licenses, shall be signed by both the applicant and by the person qualifying on behalf of an individual or firm, as specified. (BPC § 7067.6)
THIS BILL:
Specifies that it is no longer a misdemeanor for a person to engage in the occupation of a salesperson for one or more home improvement contractors without having a registration issued by the Registrar for each of the home improvement contractors by whom he or she is employed as a HIS and instead requires a HIS to have, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the Registrar.
Provides that these registrations expire two years from the last day of the month in which the registration was issued, or two years from the date on which the renewed registration last expired.
Requires a home improvement contractor to notify the Registrar, in writing, about the employment of a registered HIS prior to his or her employment, including his or her name and HIS registration number, and when that HIS ceases to be employed by the contractor, as specified, and subjects a home improvement contractor to disciplinary action if he or she fails to report that information.
Authorizes the CSLB to implement a system, by regulation, which provides for the electronic transmission of an initial application or renewal application for HIS registration and electronic transmissions of specified notices.
Authorizes the CSLB to implement a system, by regulation, which provides for the electronic transmission of an initial application or renewal application for a contractor license and the acceptance of a digital or electronic signature as part of the filing of that application.
Makes other clarifying and conforming changes.
FISCAL EFFECT: According to the Senate Appropriations Committee analysis dated May 18, 2015, this bill will result in:
"One-time CSLB programming costs in the range of $110,000 to $130,000 in 2015-16 to provide for the changes to the HIS registration and contractor notification requirements.
Estimated CSLB costs of up to $50,000 in 2016-17 to adopt regulations regarding electronic submission of HIS registration applications and contractor notifications. The CSLB indicates it can regulatory absorb costs within existing resources."
COMMENTS:
Purpose. This bill is sponsored by the CSLB. According to the author, "[This bill] streamlines the HIS registration process and provides a registration system that makes it easier for an HIS to work for multiple contractors while continuing to be in good standing with the [CSLB]."
Background. A HIS is a person employed by a home improvement contractor licensed by the CSLB who is registered to solicit, sell, negotiate, or execute contracts for home improvements on behalf of the contractor. Existing law requires that a HIS apply for, and be separately registered for each distinct contractor for which he or she works. Because HISs often work for more than one contractor, the HIS is required to register multiple times with the CSLB.
In the 2013-14 fiscal year (FY), the CSLB received 9,522 HIS registration applications, or approximately 800 applications per month, representing a nearly 30% increase from FY 2012-13, and a nearly 40% increase from FY 2011-12. According to the author, the number of applications received per month has continued to grow while the number of staff to process these requests has not increased, leading to longer processing times. The average processing time for a HIS registration has grown from 22 days in FY 2011-12, to 64 days in FY 2012-13, to 77 days in FY 2013-14, according to the 2014 CSLB Sunset Review Report.
As of June, 2015, the CSLB has over 12,600 active registrants, over 5,700 registrants that are expired but eligible to be renewed, and over 85,000 invalid registrants (or registrations that are expired and no longer eligible to be renewed). The number of invalid registrations is due in large part to salespersons registering with new employers, and also represents a high turnover in the industry. Roughly 10% of the active registrants hold multiple registrations.
This bill would streamline the registration process for a HIS and eliminate the requirement that an HIS separately register to work for each contractor. Instead, a HIS would only have to register with the CSLB one time, and any home improvement contractor who employs the HIS would have to notify the CSLB about a HIS's pending employment, including his or her name and registration number, and when his or her employment ceases. In addition, this bill would allow the CSLB to implement a system to provide for the electronic transmission of applications for a HIS registration, and also for contractor licenses, which should further improve processing times and increase efficiency.
Prior Related Legislation. AB 2457 (Nakanishi), Chapter 106, Statutes of 2006, exempted from HIS registration a general partner of a licensee and would make the exemption, as it applies to such a general partner or a corporate officer or qualifying person, applicable only in specified circumstances.
SB 364 (Figueroa), Chapter 789, Statutes of 2003, delayed until July 1, 2004, the requirement that an applicant for registration as a HIS furnish a full set of fingerprints to the CSLB.
SB 1953 (Figueroa), Chapter 744, Statutes of 2002, required all applicants for a HIS license to submit a set of fingerprints to the CSLB with his or her application and requires the CSLB to obtain and receive criminal history information from the Department of Justice and the Federal Bureau of Investigation for a criminal history records check.
AB 2544 (Bill Campbell), Chapter 372, Statutes of 2002, required the CSLB to post specified information on its website each week regarding HIS registration applications.
ARGUMENTS IN SUPPORT:
According to the CSLB, "This bill eliminates the requirement that a[n]…HIS separately register to work for each contractor and, instead, allows a properly registered HIS to utilize his or her individual registration with one or more licensed contractors. With this change, the licensed contractor that employs an HIS would be required to notify CSLB about the pending employment of any registered HIS, prior to him or work beginning work for the contractor…. The change proposed by this bill will improve the current registration process and provide increased flexibility of HIS registrants."
According to the California Fence Contractors and the Flasher Barricade Association, "Many…members employ [HIS] in their construction companies. They are a critical component of these companies' operations and generate a significant portion of their sales. Unfortunately, current law requires that each and every salesperson who comes to work for a member company must re-register with the [CSLB] again even though most are already registered in good standing with the Board. This redundancy within the current law is costing these companies and their new salespeople literally thousands of dollars in lost revenue as they cannot legally go to work until their new registration application is processed through the CSLB. With the economy finally starting to pick-up significantly, hundreds of salespeople statewide are all attempting to register with new contractors at the same time….This measure will eliminate the need to re-register every time a salesperson goes to work for another contractor."
According to the California Solar Energy Industries Association, "[This bill] promises to reduce the amount of time and paperwork needed to properly comply with the state's [HIS] licensing procedure at the [CSLB]….As the solar industry ramps up our work to help the state meet its clean energy goals, it is imperative that we reduce soft costs wherever and whenever we can. The current delays in hiring and employing salespersons is adding to the costs of going solar. Streamlining and modernizing the process, while maintaining critically important consumer protections, is a significant step in the right direction of lowering the cost of solar power for all California consumers."
ARGUMENTS IN OPPOSITION:
None on file.
REGISTERED SUPPORT:
Contractors State License Board (sponsor)
California Fence Contractors
California Solar Energy Industries Association
Flasher Barricade Association
Gallagher's Plumbing, Heating, and Air Conditioning
REGISTERED OPPOSITION:
None on file.
Analysis Prepared by: Eunie Linden / B. & P. / (916) 319-3301
SB 561
Page 4
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 561
Amended: 5/12/15
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 4/27/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/18/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: Home improvement salespersons
DIGEST: This bill eliminates the requirement that a home improvement salesperson (HIS) be registered with the Contractors State License Board (CSLB) for each licensed contractor by whom the HIS is employed; authorizes the HIS to have a single CSLB registration and requires a licensed contractor to notify CSLB when he or she employs an HIS; authorizes CSLB to implement a system, through regulations, that provides for the electronic transmission of an initial or renewal application for HIS registration and for transmission of contractor notices.
Existing law:
Provides for the licensure and regulation of more than 300,000 contractors under the Contractors State License Law (Contractors Law) by the CSLB
Provides that HIS registrations expire subject to board determination.
(BPC § 152.6)
Defines “Home improvement salesperson” as a person employed by a home improvement contractor licensed under the Contractors Law to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs. (BPC § 7152)
Provides that it is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having a registration issued by the Registrar for each of the home improvement contractors by whom he or she is employed as an HIS.
(BPC § 7153)
Provides that an application for renewal of registration is delinquent if the application is not postmarked by the date on which the registration would otherwise expire. (BPC § 7153.3(a))
Authorizes a registration to be renewed at any time within three years after its expiration upon the filing of an application for renewal on a specified form, the payment of the renewal fee, and a delinquent renewal penalty in the amount of $25. (BPC § 7153.3(a))
Provides that a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the Registrar as an HIS, is subject to disciplinary action. (BPC § 7154)
This bill:
Deletes the requirement that an HIS have a registration for each contractor by whom he or she is employed and instead requires the HIS to register with CSLB in order to engage in the business of an HIS.
Specifies that an HIS registration expires two years from the last day of the month in which the registration was issued, or two years from the date on which a renewed registration last expired.
Requires a licensed home improvement contractor to notify the CSLB registrar about the employment of a registered HIS, as specified, and to also notify the CSLB when a registered HIS ceases to be employed by the contractor.
Specifies that a contractor who employs a registered HIS, but fails to comply with the CSLB notification requirements, is subject to disciplinary action.
Authorizes CSLB to implement a system, through regulations, that provides for the electronic transmission of an initial or renewal application for HIS registration, and for transmission of contractor notices.
Background
A “home improvement salesperson” is defined as a person employed by a home improvement contractor licensed under the Contractors Law to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs. It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having a CSLB registration for each of the home improvement contractors by whom he or she is employed. A home improvement contractor who employs a person to sell home improvement contracts while that person is not registered with CSLB is subject to disciplinary action.
According to CSLB, there are currently approximately 11,170 active HIS registrants, nearly 5,500 expired registrants, and almost 85,000 invalid registrants. In the 2013-14 fiscal year, CSLB received approximately 800 HIS applications a month, a 40% increase over the previous three years. This significant increase has led to a backlog of applications and processing delays.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee:
One-time CSLB programming costs in the range of $110,000 to $130,000 in 2015-16 to provide for the changes to HIS registration and contractor notification requirements. (Contractors License Fund)
Estimated CSLB costs of up to $50,000 in 2016-17 to adopt regulations regarding electronic submission of HIS registration applications and contractor notifications. (Contractors License Fund) CSLB indicates it can absorb regulatory costs within existing resources.
Contractors State License Board (source)
California Fence Contractors
California Solar Energy Industry Association
Flasher Barricade Association
Gallagher's Plumbing, Heating, and Air Conditioning
OPPOSITION: (Verified 5/19/15)
None received
ARGUMENTS IN SUPPORT: According to the Contractors State License Board (source), “With this change, the licensed contractor that employs a HIS would be required to notify CSLB about the pending employment of any registered HIS, prior to him or her beginning work for the contractor. Currently, CSLB has approximately 11,170 active HIS registrants, nearly 5,500 expired registrants, and almost 85,000 invalid registrants. The change proposed by this bill will improve the current registration process and provide increased flexibility for HIS registrants.”
Prepared by: Mark Mendoza / B., P. & E.D. / (916) 651-1868
5/20/15 16:22:26
**** END ****
SB 561 (Monning) Page 2 of 2
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 561 (Monning) - Home improvement salespersons
|
|
Version: May 12, 2015 |
Policy Vote: B., P. & E.D. 9 - 0 |
Urgency: No |
Mandate: Yes |
Hearing Date: May 18, 2015 |
Consultant: Mark McKenzie |
This bill does not meet the criteria for referral to the Suspense File.
Bill Summary:
SB 561 make several changes to the laws governing home improvement salespersons (HIS) that are licensed and regulated by the Contractors’ State License Board (CSLB). Specifically, the bill would eliminate a requirement that a HIS be registered with CSLB for each licensed contractor by whom the HIS is employed. The bill would instead authorize the HIS to have a single CSLB registration, and require a licensed contractor to notify CSLB when he or she employs a HIS.
Fiscal Impact:
One-time CSLB programming costs in the range of $110,000 to $130,000 in 2015-16 to provide for the changes to HIS registration and contractor notification requirements. (Contractors License Fund)
Estimated CSLB costs of up to $50,000 in 2016-17 to adopt regulations regarding electronic submission of HIS registration applications and contractor notifications. (Contractors License Fund) CSLB indicates it can regulatory absorb costs within existing resources.
Background:
Existing law, the Contractors State License Law, provides for the licensure and regulation of more than 300,000 contractors the CSLB. A “home improvement salesperson” is defined as a person employed by a home improvement contractor licensed under the Contractors Law to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs. It is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having a CSLB registration for each of the home improvement contractors by whom he or she is employed. A home improvement contractor who employs a person to sell home improvement contracts while that person is not registered with CSLB is subject to disciplinary action. Existing law also authorizes a HIS registration to be renewed at any time within 3 years after its expiration, if the applicant pays the renewal fee and a $25 delinquent renewal penalty.
According to CSLB, there are currently approximately 11,170 active HIS registrants, nearly 5,500 expired registrants, and almost 85,000 invalid registrants. In the 2013-14 fiscal year, CSLB received approximately 800 HIS applications a month, a 40% increase over the previous three years. This significant increase has led to a backlog of applications and processing delays.
Proposed Law:
SB 561 would make the following changes to the HIS statutes:
Delete the requirement that a HIS have a registration for each contractor by whom he or she is employed, and instead require the HIS to register with CSLB in order to engage in the business of a HIS.
Specify that a HIS registration expires two years from the last day of the month in which the registration was issued, or two years from the date on which a renewed registration last expired.
Require a licensed home improvement contractor to notify the CSLB registrar about the employment of a registered HIS, as specified, and to also notify the CSLB when a registered HIS ceases to be employed by the contractor.
Specify that a contractor who employs a registered HIS, but fails to comply with the CSLB notification requirements, is subject to disciplinary action.
Authorize CSLB to implement a system, through regulations, that provides for the electronic transmission of an initial or renewal application for HIS registration, and for transmission of contractor notices.
Staff Comments:
This bill would require CSLB to make changes to the current IT system to account for the issuance of a single HIS registration and to track businesses with that registration. The work would also entail consolidating and converting existing HIS registrations with multiple expiration dates to a single registration number. Total programming and IT costs are projected to be in the range of $108,000 to $129,000 in the 2015-16 fiscal year. Staff estimates that CSLB workload to develop and adopt regulations to provide for electronic submission of HIS registration applications and contractor notifications regarding HIS employment could result in additional costs of up to $50,000 in the 2016-17 fiscal year, to the extent CSLB opts to implement the electronic system. Providing for electronic transmission could also drive additional IT workload costs.
-- END --
SB 561 (Monning) Page 4 of 4
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 561 Hearing Date: April 27, 2015
Author: |
Monning |
||
Version: |
April 20, 2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Mark Mendoza |
||
Subject: Home improvement salespersons.
SUMMARY:
Eliminates the requirement that a home improvement salesperson separately needs to register to work for each contractor; allows a properly registered home improvement salesperson to utilize a single, individual registration with one or more licensed contractors; requires a contractor to notify the Contractors State License Board when employing a home improvement salesperson; requires reporting guidelines for a home improvement salesperson and home improvement contractors.
Existing law:
Provides for the licensure and regulation of more than 300,000 contractors under the Contractors State License Law (Contractors Law) by the Contractors State License Board (CSLB) within the Department of Consumer Affairs (DCA). The CSLB is under the direction of the registrar of contractors (Registrar). (Business and Professions Code (BPC) § 7000 et seq.)
Provides that HIS registrations expire subject to board determination. (BPC § 152.6)
Defines “Home improvement salesperson” (HIS) as a person employed by a home improvement contractor licensed under the Contractors Law to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs. (BPC § 7152)
Provides that it is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having a registration issued by the Registrar for each of the home improvement contractors by whom he or she is employed as a HIS. (BPC § 7153)
Provides that an application for renewal of registration is delinquent if the application is not postmarked by the date on which the registration would otherwise expire. (BPC § 7153.3(a))
Authorizes a registration to be renewed at any time within 3 years after its expiration upon the filing of an application for renewal on a specified form, the payment of the renewal fee, and a delinquent renewal penalty in the amount of $25.
(BPC § 7153.3(a))
Provides that a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the Registrar as a HIS, is subject to disciplinary action. (BPC § 7154)
This
bill:
Allows a HIS to register once and utilize a single, individual registration with one or more licensed contractors.
Provides that it is a misdemeanor for any person to engage in the occupation of HIS for one or more home improvement contractors without having, at the time of the sales transaction, a current and valid registration.
Defines that it is a misdemeanor for any person to engage in the occupation of salesperson of home improvement goods or services within this state without having a, at the time of the sales transaction, a current and valid HIS registration issued by the Registrar.
Provides that these registrations expire 2 years from the last day of the month in which the registration was issued, or 2 years from the date on which the renewed registration last expired.
Requires a home improvement contractor to notify the Registrar in writing about the pending employment of a registered HIS.
Requires a home improvement contractor to notify the Registrar when a registered HIS ceases to be employed by the contractor.
Subjects a home improvement contractor to disciplinary action if they fail to report employment information.
Provides that it is a misdemeanor and cause for disciplinary action for any HIS who fails to account for, or to remit to, his or her employing contractor, any payment received in connection with any home improvement transaction or any other transaction involving a work of improvement.
Makes other technical and conforming changes.
FISCAL EFFECT:
Unknown. This bill has been keyed “fiscal” by Legislative Counsel.
COMMENTS:
Purpose. This bill is sponsored by the Contractors State License Board (CSLB). According to the Author, “Under existing law, a HIS is required to register separately with the CSLB to work for each individual contractor. However, a HIS often works for more than one contractor, which necessitates multiple registrations. The CSLB currently has approximately 11,300 active registrants and more than 85,000 invalid registrants. The large number of invalid registrations is due in significant part to salespersons registering with a new employer.”
Backlog in Registering HIS. Last year, the California Solar Energy Industries Association sent a letter to the Governor that was forwarded to the CSLB for response, expressing concern about the amount of time it took to register new HIS program participants and the impact on the industry due to the wait times of 4-5 weeks for the CSLB to approve a new registration.
In the 2013-14 fiscal year CSLB received approximately 800 HIS applications a month, an increase of 40% over the prior 3 years. The number of applications received per month has continued to grow since then while the number of staff to process these requests has not increased, thus the processing time for requests has increased. At the time the letter was received in the Governor’s office, CSLB was already reviewing the HIS program and the new application processing delays.
Arguments in Support. According to the Contractors State License Board,
“With this change, the licensed contractor that employs a HIS would be required to notify CSLB about the pending employment of any registered HIS, prior to him or her beginning work for the contractor. Currently, CSLB has approximately 11,170 active HIS registrants, nearly 5,500 expired registrants, and almost 85,000 invalid registrants. The change proposed by this bill will improve the current registration process and provide increased flexibility for HIS registrants.”
The California Fence Contractors, Flasher Barricade Association, and Gallagher's Plumbing, Heating, and Air Conditioning highlight that “this redundancy within the current law is costing these companies and their new salespeople literally thousands of dollars in lost revenue as they cannot legally go to work until their registration application is processed through the CSLB…All of this can and will be solved simply by approving SB 561 (Monning).”
According to the California Solar Energy Industry Association, “As the solar industry ramps up our work to help the state meet its clean energy goals, it is imperative that we reduce soft costs wherever and whenever we can. The current delays in hiring and employing salespersons is adding to the cost of going solar. Streamlining and modernizing the process, while maintaining critically important consumer protections, is a significant step in the right direction of lowering the cost of solar power for all California consumers.”
SUPPORT AND OPPOSITION:
Support:
Contractors State License Board (Sponsor)
California Fence Contractors
California Solar Energy Industry Association (CALSEIA)
Flasher Barricade Association
Gallagher's Plumbing, Heating, and Air Conditioning.
Opposition: None on file as of April 21, 2015.
-- END --
SB 561 (Monning) Page 3 of 3
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 561 Hearing Date: April 13, 2015
Author: |
Monning |
||
Version: |
February 26, 2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Mark Mendoza |
||
Subject: Home improvement salespersons.
SUMMARY:
Eliminates the requirement that a home improvement salesperson (HIS) separately needs to register to work for each contractor; allows a properly registered HIS to utilize a single, individual registration with one or more licensed contractors; requires a contractor to notify the Contractors State License Board when employing a HIS; requires reporting guidelines for a HIS and home improvement contractors.
Existing law:
Provides for the licensure and regulation of more than 300,000 contractors under the Contractors State License Law (Contractors Law) by the Contractors State License Board (CSLB) within the Department of Consumer Affairs (DCA). The CSLB is under the direction of the registrar of contractors (Registrar). (Business and Professions Code (BPC) § 7000 et seq.)
Defines “Home improvement salesperson” as a person employed by a home improvement contractor licensed under the Contractors Law to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs. (BPC § 7152)
Provides that it is a misdemeanor for any person to engage in the occupation of salesperson for one or more home improvement contractors within this state without having a registration issued by the Registrar for each of the home improvement contractors by whom he or she is employed as a home improvement salesperson.
(BPC § 7153)
Provides that home improvement salesperson registrations expire subject to board determination. (BPC § 152.6)
Provides that an application for renewal of registration is delinquent if the application is not postmarked by the date on which the registration would otherwise expire. (BPC § 7153.3(a))
Authorizes a registration to be renewed at any time within 3 years after its expiration upon the filing of an application for renewal on a specified form, the payment of the renewal fee, and a delinquent renewal penalty in the amount of $25.
(BPC § 7153.3(a))
Provides that a home improvement contractor who employs a person to sell home improvement contracts while that person is not registered by the Registrar as a home improvement salesperson, is subject to disciplinary action. (BPC § 7154)
This
bill:
Allows a HIS to register once and utilize a single, individual registration with one or more licensed contractors.
Provides that it is a misdemeanor for any person to engage in the occupation of home improvement salesperson for one or more home improvement contractors without having, at the time of the sales transaction, a current and valid registration.
Defines that it is a misdemeanor for any person to engage in the occupation of salesperson of home improvement goods or services within this state without having a, at the time of the sales transaction, a current and valid home improvement salesperson registration issued by the Registrar.
Provides that these registrations expire 2 years from the last day of the month in which the registration was issued, or 2 years from the date on which the renewed registration last expired.
Redefines the delinquent renewal penalty as equal to 50% of the renewal fee.
Requires a home improvement contractor to notify the Registrar in writing about the pending employment of a registered home improvement salesperson.
Requires a home improvement contractor to notify the Registrar when a registered home improvement salesperson ceases to be employed by the contractor.
Subjects a home improvement contractor to disciplinary action if they fail to report employment information.
Provides that it is a misdemeanor and cause for disciplinary action for any home improvement salesperson who fails to account for, or to remit to his or her employing contractor, any payment received in connection with any home improvement transaction or any other transaction involving a work of improvement.
Makes other technical and conforming changes.
FISCAL EFFECT:
Unknown. This bill has been keyed “fiscal” by Legislative Counsel.
COMMENTS:
Purpose. This bill is sponsored by the Contractors State License Board (CSLB). According to the Author, “Under existing law, a HIS is required to register separately with the CSLB to work for each individual contractor. However, a HIS often works for more than one contractor, which necessitates multiple registrations. The CSLB currently has approximately 11,300 active registrants and more than 85,000 invalid registrants. The large number of invalid registrations is due in significant part to salespersons registering with a new employer.”
Backlog in Registering HIS. Last year, the California Solar Energy Industries Association sent a letter to the Governor that was forwarded to the CSLB for response, expressing concern about the amount of time it took to register new HIS program participants and the impact on the industry due to the wait times of 4-5 weeks for the CSLB to approve a new registration.
In the 2013-14 fiscal year CSLB received approximately 800 HIS applications a month, an increase of 40% over the prior 3 years. The number of applications received per month has continued to grow since then while the number of staff to process these requests has not increased, thus the processing time for requests has increased. At the time the letter was received in the Governor’s office, CSLB was already reviewing the HIS program and the new application processing delays.
Arguments in Support. According to the Contractors State License Board,
“With this change, the licensed contractor that employs a HIS would be required to notify CSLB about the pending employment of any registered HIS, prior to him or her beginning work for the contractor. Currently, CSLB has approximately 11,170 active HIS registrants, nearly 5,500 expired registrants, and almost 85,000 invalid registrants. The change proposed by this bill will improve the current registration process and provide increased flexibility for HIS registrants.”
SUPPORT AND OPPOSITION:
Support:
Contractors State License Board (Sponsor)
Opposition:
None on file as of April 6, 2015.
-- END --
Discussed in Hearing
2MIN
Senate Standing Committee on Appropriations
Bill Author
Bill Co-Author(s):
