Bill Text: CA SB601 | 2023-2024 | Regular Session | Amended

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

---

Bill Title: Professions and vocations: contractors: home improvement contracts: prohibited business practices: limitation of actions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-07 - Chaptered by Secretary of State. Chapter 403, Statutes of 2023. [SB601 Detail]

Download: California-2023-SB601-Amended.html

---

Amended  IN  Senate  March 22, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 601

---

Introduced by Senator McGuire

February 15, 2023

---

An act to add Section 7159.3 to the Business and Professions Code, and to amend Section 802 of the Penal Code, relating to contractors. professions and vocations.

LEGISLATIVE COUNSEL'S DIGEST

SB 601, as amended, McGuire. Contractors’ State License Board. Professions and vocations: contractors: home improvement contracts: prohibited business practices: limitation of actions.

Existing

(1) Existing law, the Contractors’ Contractors State License Law, defines and regulates the activities of contractors and provides for their licensure, regulation, and discipline by the Contractors’ Contractors State License Board within the Department of Consumer Affairs. Affairs (department). Existing law identifies the projects for which a home improvement contract, as defined, is required, and outlines those contract requirements. Existing law also lists those items that are required to be in that contract or may be provided as an attachment.

This bill would require that a home improvement contract by a prime contractor for the reconstruction, restoration, or rebuilding of a residential property that was damaged or destroyed by a natural disaster, as specified, include a specified provision requiring the prime contractor to file separate performance and payment bonds that meet prescribed criteria. The bill would provide that failure of a prime contractor to comply with these provisions would be cause for disciplinary action.

(2) Existing law makes any person who commits specified acts involving a license, certificate, permit, or registration issued by the department guilty of a misdemeanor. Existing law, except as provided, limits the time for beginning prosecution for commission of specified offenses to one year after commission of the offense.

This bill would authorize prosecution for a misdemeanor violation of the provisions described above involving use of a license issued by the department to begin within 3 years after discovery of the commission of the offense, or within 3 three years after completion of the offense, whichever is later. Because the bill would make more people subject to prosecution for commission of a crime, the bill would impose a state-mandated local program.

(3) 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.

This bill would state that it is the intent of the Legislature to enact legislation that would relate to the Contractors’ State License Board.

Digest Key

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

---

Bill Text

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

SECTION 1.

 Section 7159.3 is added to the Business and Professions Code, to read:

7159.3.

 (a) A home improvement contract by a prime contractor for the reconstruction, restoration, or rebuilding of a residential property that was damaged or destroyed by a natural disaster for which a state of emergency is proclaimed by the Governor pursuant to Section 8625 of the Government Code, or for which an emergency or major disaster is declared by the President of the United States, shall include a provision that requires the prime contractor to file separate performance and payment bonds.

(b) Any performance and payment bond shall meet all of the following criteria:

(1) A bond shall be in a form executed by an admitted surety insurer and shall not be a deposit in lieu of a bond.

(2) Each bond shall be in a sum equal to at least one-half of the contract price.

(3) The payment bond shall secure the payment of any claim of a laborer, mechanic, or materialperson employed on the work under the contract and shall contain any other provision required by law.

(4) The performance bond shall guarantee the faithful performance of the contract by the prime contractor.

(c) This section operates independently of any other bonding provision in this chapter.

(d) The failure of a prime contractor to comply with this section is cause for disciplinary action.

SEC. 2.

 Section 802 of the Penal Code is amended to read:

802.

 (a) Except as provided in subdivision (b), (c), (d), or (e), prosecution for an offense not punishable by death or imprisonment in the state prison or pursuant to subdivision (h) of Section 1170 shall be commenced within one year after commission of the offense.

(b) Prosecution for a misdemeanor violation of Section 647.6 or former Section 647a committed with or upon a minor under the age of 14 years shall be commenced within three years after commission of the offense.

(c) Prosecution of a misdemeanor violation of Section 729 of the Business and Professions Code shall be commenced within two years after commission of the offense.

(d) Prosecution of a misdemeanor violation of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code shall be commenced as follows:

(1) With respect to Sections 7028.17, 7068.5, and 7068.7 of the Business and Professions Code, within one year of the commission of the offense.

(2) With respect to Sections 7027.1, 7028.1, 7028.15, 7118.4, 7118.5, 7118.6, 7126, 7153, 7156, 7157, 7158, 7159.5 (licensee only), 7159.14 (licensee only), 7161, and 7189 of the Business and Professions Code, within two years of the commission of the offense.

(3) With respect to Sections 7027.3 and 7028.16 of the Business and Professions Code, within three years of the commission of the offense.

(4) With respect to Sections 7028, 7159.5 (nonlicensee only), and 7159.14 (nonlicensee only) of the Business and Professions Code, within four years of the commission of the offense.

(e) Prosecution for a misdemeanor violation of Section 119, 6126, 10085.6, 10139, or 10147.6 of the Business and Professions Code or Section 2944.6 or 2944.7 of the Civil Code shall be commenced within three years after discovery of the commission of the offense, or within three years after completion of the offense, whichever is later.

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.

SECTION 1.

It is the intent of the Legislature to enact legislation relating to the Contractors’ State License Board.