AB 1204: Contractors: contracts: restrictions.

Existing law, the Contractors State License Law, defines and regulates the activities of contractors and provides for their licensure, regulation, and discipline by the Contractors State License Board within the Department of Consumer Affairs. Existing law classifies the contracting business to include general engineering contracting, general building contracting, residential remodeling contracting, and specialty contracting. Existing law authorizes the issuance of contractors licenses to individual owners, partnerships, corporations, and limited liability companies, and authorizes those persons and entities to qualify for a license by the appearance of specified individuals. Existing law prohibits contractors from performing specified acts and provides that a violation of those acts may constitute a cause for disciplinary action.

This bill would prohibit a specialty contractor, as defined, from entering into a contract for the performance of work on the same single project or undertaking with more than one subcontractor in the same license classification unless the subcontractor employs persons who are classified as employees to perform work in that license classification on the single project or undertaking or the specialty contractor is a signatory to a bona fide collective bargaining agreement, as specified. The bill would provide that a violation of this provision constitutes a cause for disciplinary action.