BILL NUMBER: AB 2412	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 21, 2008

   An act to amend Section 7028 of the Business and Professions Code,
relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2412, as introduced, Eng. Unlicensed contractors.
   Existing law, the Contractors' State License Law, provides for the
licensure and regulation of contractors by the Contractors' State
License Board. Existing law makes it a misdemeanor for a person to
engage in the business or act in the capacity of a contractor without
having a license and makes a first offense punishable by
imprisonment in the county jail for no more than 6 months, or by a
fine not exceeding $1,000, or both. Existing law requires a court to
impose upon a person who has been previously convicted of that
offense a fine of 20% of the price of the contract, as specified, or
$4,500, whichever is greater, and imprisonment in the county jail for
at least 90 days, except as specified. Existing law specifies that a
3rd or subsequent conviction is punishable by a fine of not less
than $4,500 nor more than the greater of $10,000 or 20% of the
contract price or by imprisonment in the county jail, as specified,
or both. Existing law requires a court to order a defendant convicted
of a crime to pay restitution to the victim, as specified.
   This bill would make a first conviction punishable by a fine not
exceeding $5,000 or by imprisonment in a county jail for no more than
6 months, as specified, or both. The bill would require that the
fine for 2nd convictions be the greater of 20% of the price of the
contract, 20% of the aggregate payments made to, or at the direction
of, the unlicensed contractor, or $5,000. The bill would also require
that a fine imposed for 3rd or subsequent convictions be no less
than $5,000 and no more than the greater of $10,000, 20% of the price
of the contract, or 20% of the aggregate payments made to, or at the
direction of, the unlicensed contractor. The bill would require that
restitution ordered following one of these convictions include all
payments made to, or at the direction of, the unlicensed contractor
and not be offset or reduced by any act or performance.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 7028 of the Business and Professions Code is
amended to read:
   7028.  (a) It is a misdemeanor for  any   a
 person to engage in the business or act in the capacity of a
contractor within this state without having a license therefor,
unless the person is particularly exempted from the provisions of
this chapter. 
   (b) A first conviction for the offense described in this section
is punishable by a fine not exceeding five thousand dollars ($5,000)
or by imprisonment in a county jail not exceeding six months, or by
both that fine and imprisonment.  
   (b) 
    (c)    If a person has been previously
convicted of the offense described in this section, unless the
provisions of subdivision  (c)   (d)  are
applicable, the court shall impose a fine of 20 percent of the price
of the contract under which the unlicensed person performed
contracting work,  or 20 percent of the aggregate payments made
to, or at the direction of, the unlicensed contractor,  or
 four   five  thousand  five
hundred  dollars  ($4,500)   ($5,000)
 , whichever is greater, and, unless the sentence prescribed in
subdivision  (c)   (d)  is imposed, the
person shall be confined in a county jail for not less than 90 days,
except in an unusual case where the interests of justice would be
served by imposition of a lesser sentence or a fine. If the court
imposes only a fine or a jail sentence of less than 90 days for
second or subsequent convictions under this section, the court shall
state the reasons for its sentencing choice on the record. 
   (c) 
    (d)    A third or subsequent conviction for the
offense described in this section is punishable by a fine of not
less than  four   five  thousand 
five hundred  dollars  ($4,500)  
($5,000)  nor more than the greater amount of  either
 ten thousand dollars ($10,000) or 20 percent of the
contract price under which the unlicensed person performed
contracting work  , or 20 percent of the aggregate payments made
to, or at the direction of, the unlicensed contractor,  or by
imprisonment in a county jail for not more than one year or less than
90 days, or by both that fine and imprisonment. The penalty provided
by this subdivision is cumulative to the penalties available under
all other laws of this state. 
   (d) 
    (e)    In the event the person performing the
contracting work has agreed to furnish materials and labor on an
hourly basis, "the price of the contract" for the purposes of this
section means the aggregate sum of the cost of materials and labor
furnished and the cost of completing the work to be performed.

   (e) 
    (f)    Notwithstanding any other provision of
law to the contrary, an indictment for any violation of this section
by the unlicensed contractor shall be found or an information or
complaint filed within four years from the date of the contract
proposal, contract, completion, or abandonment of the work, whichever
occurs last. 
   ((g) For any conviction under this section, restitution ordered
pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of
Section 1202.4 of the Penal Code shall include, but not be limited
to, all payments made to, or at the direction of, the unlicensed
contractor and shall not be offset or reduced by any act or
performance.