BILL NUMBER: AB 1091	CHAPTERED
	BILL TEXT

	CHAPTER  168
	FILED WITH SECRETARY OF STATE  AUGUST 3, 2011
	APPROVED BY GOVERNOR  AUGUST 3, 2011
	PASSED THE SENATE  JULY 11, 2011
	PASSED THE ASSEMBLY  JULY 14, 2011
	AMENDED IN SENATE  JUNE 8, 2011

INTRODUCED BY   Assembly Member Morrell

                        FEBRUARY 18, 2011

   An act to amend Section 7068.2 of the Business and Professions
Code, relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1091, Morrell. Contractors.
   Existing law, the Contractors' State License Law, provides for the
licensure and regulation of contractors by the Contractors' State
License Board. Existing law requires the board to appoint a registrar
to carry out administrative duties delegated by the board. Existing
law authorizes an applicant for a license to qualify his or her
knowledge and experience with a responsible managing officer,
employee, member or manager who has certain qualifications. Under
existing law, if the responsible managing officer, employee, member,
or manager disassociates from the licensed entity, the licensee or
the qualifier, as defined, is required to notify the registrar, as
specified. Existing law authorizes the registrar to accept petitions
from licensees disputing matters related to the disassociation.
   This bill would revise and recast those provisions by specifying
that the notification be provided within 90 days after the date of
disassociation. The bill would authorize the registrar to accept a
petition for one 90-day extension to replace the qualifier under
limited circumstances and would impose specified requirements related
to that submittal. The bill would make other conforming changes.


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

  SECTION 1.  Section 7068.2 of the Business and Professions Code is
amended to read:
   7068.2.  (a) If the responsible managing officer, responsible
managing employee, responsible managing member, or responsible
managing manager, disassociates from the licensed entity, the
licensee, or the qualifier shall notify the registrar in writing
within 90 days after the date of disassociation. The licensee shall
have 90 days after the date of disassociation in which to replace the
qualifier. Upon failure to replace the qualifier within 90 days
after the date of disassociation, the license shall be automatically
suspended or the classification removed at the end of the 90 days.
   (b) To replace a responsible managing officer, responsible
managing employee, responsible managing member, or responsible
managing manager, the licensee shall file an application as
prescribed by the registrar, accompanied by the fee fixed by this
chapter, designating an individual to qualify as required by this
chapter.
   (c) Upon failure of the licensee or the qualifier to notify the
registrar of the disassociation of the qualifier within 90 days after
the date of disassociation, the license shall be automatically
suspended or the classification removed and the qualifier removed
from the license effective the date the written notification is
received at the board's headquarters office.
   (d) The person qualifying on behalf of a licensee under Section
7068 shall be responsible for the licensee's construction operations
until the date of disassociation or the date the board receives the
written notification of disassociation, whichever is later.
   (e) (1) Upon a showing of good cause by the licensee, the
registrar may review and accept a petition for one 90-day extension
to replace the qualifier immediately following the initial 90-day
period described in subdivision (a) only under one or more of the
following circumstances:
   (A) If the licensee is disputing the date of disassociation.
   (B) If the responsible managing officer, employee, member, or
manager has died.
   (C) If there has been delay in processing the application to
replace the qualifier that is out of the applicant's control and it
is the responsibility of the board or another state or federal agency
that is relied upon in the application process.
   (2) This petition shall be received within 90 days after the date
of disassociation or death or delay. The petition shall only be
considered if an application to replace the qualifier as prescribed
by the registrar is on file with the board. Under the circumstances
described in subparagraphs (A) and (B) of paragraph (1), the licensee
shall have no more than a total of 180 days after the date of
disassociation or death in which to replace the qualifier.
   (f) Failure of the licensee or the qualifier to notify the
registrar of the qualifier's disassociation within 90 days after the
date of disassociation shall constitute grounds for disciplinary
action.