BILL NUMBER: SB 561	INTRODUCED
	BILL TEXT


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 the Business and Professions Code, relating to
professions and vocations, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 561, as introduced, 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.
   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. Existing law
makes an application for renewal of registration delinquent if the
application is not postmarked by the date on which the registration
would otherwise expire. However, existing law authorizes a
registration to be renewed at any time within 3 years after its
expiration upon the filing of an application for renewal on a
specified form, the payment of the renewal fee, and a delinquent
renewal penalty in the amount of $25.
    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. The bill would make that delinquent renewal penalty equal to
50% of the renewal fee. Because this additional delinquent amount
would be deposited into the Contractors' License Fund, a continuously
appropriated fund, the bill would make an appropriation.
   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.
   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: yes. 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  , who
is registered under this chapter,  employed by a home
improvement contractor licensed under this chapter 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.
   (b) 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) The exemption to registration provided under paragraphs (1),
(2), and (3) of subdivision (b) 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  a 
 , at the time of the sales transaction, a current and valid home
improvement salesperson  registration issued by the 
registrar for each of the home improvement contractors by whom he or
she is employed as a home improvement salesperson  
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  a   , 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  on
a date established pursuant to Section 152.6.   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 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 
 an  amount  of twenty-five dollars ($25). 
 equal to 50 percent of the renewal fee, if the registration is
renewed after its expiration.  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 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 
such   that  person is not registered by the
registrar as a home improvement  salesman  
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 
constitutes a   constitute  cause for disciplinary
action against the contractor  by whom he or she was employed at
the time the violation occurred  , whether or not  he or
she   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.  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.