BILL NUMBER: SB 561 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 12, 2015
AMENDED IN SENATE APRIL 20, 2015
INTRODUCED BY Senator Monning
(Coauthor: Assembly Member Achadjian)
FEBRUARY 26, 2015
An act to amend Sections 7152, 7153, 7153.2, 7153.3, 7154, 7155.5,
and 7156 of of, and to add Section 7156.6
to, the Business and Professions Code, relating to professions
and vocations.
LEGISLATIVE COUNSEL'S DIGEST
SB 561, as amended, Monning. Home improvement salespersons.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7152 of the Business and Professions Code is
amended to read:
7152. (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 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.