Bill Text: CA AB2622 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Contractors: exemptions: work and advertisements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-09-14 - Chaptered by Secretary of State - Chapter 240, Statutes of 2024. [AB2622 Detail]

Download: California-2023-AB2622-Amended.html

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Amended  IN  Senate  June 27, 2024

Amended  IN  Assembly  April 24, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2622

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Introduced by Assembly Member Juan Carrillo

February 14, 2024

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An act to amend Sections 7027.2 and 7048 of the Business and Professions Code, relating to contractors.

LEGISLATIVE COUNSEL'S DIGEST

AB 2622, as amended, Juan Carrillo. Contractors: license requirement exemptions: work and advertisements.

Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law makes it a misdemeanor for a person to act as a contractor without a license, unless exempted. Existing law exempts from the licensing requirement Contractors State License Law a work or operation on one undertaking or project by one or more contracts, if the aggregate contract price for labor, material, and all other items is under $500, except as specified.

This bill would revise the licensing exemption by increasing the maximum aggregate contract price to $1,000, as adjusted for inflation by the board, as specified, $1,000 and specifying that the exemption would apply if the work or operation meets specified requirements, including, among other things, that the work or operation does not include certain trades or crafts. does not require a building permit. The bill would additionally specify that the exemption would not apply to a person who employs another person to perform, or assist in performing, the work or operation. By narrowing the licensing exemption, exemption from the licensing requirement, the bill would expand a crime and, thereby, impose a state-mandated local program.

Existing law makes it a misdemeanor for a person to advertise for construction work or work of improvement without a license. Existing law authorizes a person who is not licensed to advertise for construction work or work of improvement if the aggregate contract price for labor, material, and all other items on a project or undertaking is under $500 and the person states in the advertisement that the person is not licensed.

This bill would expand the advertising authorization by increasing the aggregate contract price to $1000, as adjusted for inflation by the board, as specified. $1,000.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 7027.2 of the Business and Professions Code is amended to read:

7027.2.

 (a)Notwithstanding any other provision of this chapter, a person who is not licensed pursuant to this chapter may advertise for construction work or a work of improvement covered by this chapter only if the aggregate contract price for labor, material, and all other items on a project or undertaking is less than one thousand dollars ($1,000), as adjusted pursuant to subdivision (b), ($1,000) and the person states in the advertisement that the person is not licensed under this chapter.

(b)Commencing on January 1, 2026, and annually thereafter, the board shall adjust the amount specified in subdivision (a) to reflect the rate of inflation, as measured by the California Consumer Price Index as compiled and reported by the Department of Industrial Relations.

SEC. 2.

 Section 7048 of the Business and Professions Code is amended to read:

7048.

 (a) This chapter does not apply to a work or operation on one undertaking or project by one or more contracts, if the aggregate contract price for labor, materials, and all other items, is less than one thousand dollars ($1,000), as adjusted pursuant to subdivision (d), ($1,000) that work or operation being considered of casual, minor, or inconsequential nature, and the work or operation meets all of the following: does not require a building permit.

(1)The work or operation does not require a building permit.

(2)The work or operation does not include one of the following trades or crafts:

(A)C-16 Fire Protection.

(B)C-22 Asbestos Abatement.

(C)C-57 Well Drilling.

(3)The person performing the work or operation does not do any of the following:

(A)Make structural changes to load bearing portions of an existing structure, including, but not limited to, footings, foundations, load bearing walls, partitions, and roof structures.

(B)Install, replace, substantially alter, or extend electrical, mechanical, or plumbing systems or their component parts, or the mechanisms or devices that are part of those systems.

(b) This section does not apply in a case wherein the work of construction is only a part of a larger or major operation, whether undertaken by the same or a different contractor, or in which a division of the operation is made in contracts of amounts less than one thousand dollars ($1,000), as adjusted pursuant to subdivision (d), ($1,000) for the purpose of evasion of this chapter or otherwise.

(c) This section does not apply to a person who does either of the following:

(1) Advertises or puts out a sign or card or other device that might indicate to the public that the person is a contractor or that the person is qualified to engage in the business of a contractor.

(2) Employs another person to perform, or assist in performing, the work or operation.

(d)Commencing on January 1, 2026, and annually thereafter, the board shall adjust the amount specified in subdivisions (a) and (b) to reflect the rate of inflation, as measured by the California Consumer Price Index as compiled and reported by the Department of Industrial Relations.

SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution.