BILL NUMBER: SB 820	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Business, Professions and Economic
Development (Negrete McLeod (chair), Aanestad, Corbett, Correa,
Florez, Oropeza, Romero, Walters, Wyland, and Yee)

                        MARCH 10, 2009

   An act to amend Sections 139, 146, 1632.5, 1634.2, 2493, 4200.3,
4200.4, 4938, 5016, 5021, 5022, 5023, 5651, 7028.7, 7044, 7159,
7159.5, 7159.14, 7303.2, 7606, 7616, 7641, 7643, 7646, 7647, 7662,
7665, 7666, 7671, 7725.5, 7729, 9884.2, 9884.7, 9884.12, and 10146
of, to add Section 7044.01 to, and to repeal and add Section 7108.5
of, the Business and Professions Code, and to amend Section 44017.3
of the Health and Safety Code, relating to consumer affairs.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 820, as introduced, Committee on Business, Professions and
Economic Development. Consumer affairs: professions and vocations.
   Existing law provides for the licensure and regulation of various
professions and vocations by boards and bureaus within the Department
of Consumer Affairs. Existing law requires that certain examinations
for licensure be developed by or in consultation with the Office of
Examination Resources in the department, as specified.
   This bill would rename that office the Office of Professional
Examination Resources.
   Existing law prohibits a person from holding himself or herself
out to the public as a professional fiduciary without a license.
Existing law specifies that a violation of certain requirements to be
registered, licensed, or certified to engage in certain businesses
is punishable as an infraction subject to specified procedures and
fines.
   This bill would make a violation of the professional fiduciary
licensure requirement punishable as an infraction, thereby imposing a
state-mandated local program.
   Existing law, the Bagley-Keene Open Meeting Act, requires a state
body, as defined, to provide prescribed notice of its meetings to any
person who requests the notice in writing. Existing law provides for
the licensure and regulation of accountants by the California Board
of Accountancy and requires the executive officer of the board to
give at least 7 days' notice of board meetings. Existing law
authorizes the board to appoint an administrative committee and an
advisory committee for certain purposes and requires members of the
administrative committee to hold office for one year.
   This bill would designate the advisory committee as the
qualifications committee and would require members of that committee
and the administrative committee to hold office for 2 years. The bill
would require notice of each meeting of the board to be given in
accordance with the Bagley-Keene Open Meeting Act.
   Existing law provides for the licensure and regulation of
landscape architects by the California Architects Board. Existing law
requires the board to ascertain the qualifications of applicants for
a license by means of written examination. Under existing law, the
board may waive the written examination for a person licensed out of
state, as specified, if the person has passed an equivalent
examination and a supplemental examination, as specified.
   This bill would also require an out-of-state licensee to submit
proof of job experience equivalent to that required of California
applicants in order to waive the written examination.
   Existing law, the Contractors' State License Law, provides for the
licensure and regulation of contractors by the Contractors' State
License Board. Existing law imposes specified requirements on home
improvement contracts and service and repair contracts and requires
contractors to pay subcontractors within a specified period of time.
Existing law makes it a misdemeanor for a person to engage in the
business or act in the capacity of a contractor without a license and
provides certain exemptions from that licensure requirement,
including exemptions for owner-builders, as specified. Existing law
authorizes the Registrar of Contractors to issue citations for
violations of that licensure requirement, as specified.
   This bill would make various technical, nonsubstantive changes to
those provisions.
   Under existing law, a person who violates the law by engaging in
work as an owner-builder without a contractor's license or an
exemption from licensure is prohibited from obtaining a contractor's
license for a period of one year following the violation.
   This bill would delete that prohibition.
   Existing law, the Funeral Directors and Embalmers Law, provides
for the licensure and regulation of embalmers and funeral directors
by the Cemetery and Funeral Bureau. Existing law requires an
applicant for an embalmer's license to, among other things, have
successfully completed a course of instruction in a specified
embalming school and to either furnish proof of completion of a high
school course or evidence of licensure and practice for a certain
period of time prior to application.
   This bill would instead require the applicant to have graduated
from a specified mortuary science program and to furnish official
transcripts from that program. The bill would make other conforming
changes.
   Existing law requires the applicant to pass an examination
including specified subjects and requires the bureau to examine
applicants at least once annually.
   This bill would require the applicant to pass the funeral services
sciences section of a specified national examination and an
examination on the state's laws and the rules and regulations of the
bureau and would delete the requirement that the board examine
applicants at least once annually. The bill would, until June 30,
2010, authorize an applicant who failed the examination previously
administered by the bureau to retake that examination.
   Existing law, the Real Estate Law, provides for the licensure and
regulation of real estate brokers and salespersons by the Real Estate
Commissioner. Existing law authorizes the commissioner to issue
rules and regulations he or she deems necessary to regulate the
method of accounting and to accomplish certain purposes related to
advance fees, as specified.
   This bill would make certain nonsubstantive, technical changes to
those provisions.
   Existing law, the Automotive Repair Act, provides for the
registration and regulation of automotive repair dealers by the
Bureau of Automotive Repair in the Department of Consumer Affairs and
requires the Director of Consumer Affairs to validate a registration
upon receipt of a specified form and fee. Existing law authorizes
the director to refuse to validate or invalidate a registration for
specified acts.
   This bill would instead require the director to issue a
registration upon receipt of a specified form and fee and would
authorize the director to deny, suspend, revoke, or place on
probation a registration for specified acts.
   Existing, law establishes the vehicle inspection and maintenance
(smog check) program, administered by the Department of Consumer
Affairs and prescribes certain cost limits for repairs under the
program. Existing law requires a smog check station where smog check
inspections are performed to post a sign advising customers of those
cost limits.
   This bill would instead require the department to provide licensed
smog check stations with a sign informing customers about their
options when a vehicle fails a smog check inspection, as specified.
   The bill would make other technical, nonsubstantive changes.
   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 139 of the Business and Professions Code is
amended to read:
   139.  (a) The Legislature finds and declares that occupational
analyses and examination validation studies are fundamental
components of licensure programs. It is the intent of the Legislature
that the policy developed by the department pursuant to subdivision
(b) be used by the fiscal, policy, and sunset review committees of
the Legislature in their annual reviews of these boards, programs,
and bureaus.
   (b) Notwithstanding any other provision of law, the department
shall develop, in consultation with the boards, programs, bureaus,
and divisions under its jurisdiction, and the Osteopathic Medical
Board of California and the State Board of Chiropractic Examiners, a
policy regarding examination development and validation, and
occupational analysis. The department shall finalize and distribute
this policy by September 30, 1999, to each of the boards, programs,
bureaus, and divisions under its jurisdiction and to the Osteopathic
Medical Board of California and the State Board of Chiropractic
Examiners. This policy shall be submitted in draft form at least 30
days prior to that date to the appropriate fiscal, policy, and sunset
review committees of the Legislature for review. This policy shall
address, but shall not be limited to, the following issues:
   (1) An appropriate schedule for examination validation and
occupational analyses, and circumstances under which more frequent
reviews are appropriate.
   (2) Minimum requirements for psychometrically sound examination
validation, examination development, and occupational analyses,
including standards for sufficient number of test items.
   (3) Standards for review of state and national examinations.
   (4) Setting of passing standards.
   (5) Appropriate funding sources for examination validations and
occupational analyses.
   (6) Conditions under which boards, programs, and bureaus should
use internal and external entities to conduct these reviews.
   (7) Standards for determining appropriate costs of reviews of
different types of examinations, measured in terms of hours required.

   (8) Conditions under which it is appropriate to fund permanent and
limited term positions within a board, program, or bureau to manage
these reviews.
   (c) Every regulatory board and bureau, as defined in Section 22,
and every program and bureau administered by the department, the
Osteopathic Medical Board of California, and the State Board of
Chiropractic Examiners, shall submit to the director on or before
December 1, 1999, and on or before December 1 of each subsequent
year, its method for ensuring that every licensing examination
administered by or pursuant to contract with the board is subject to
periodic evaluation. The evaluation shall include (1) a description
of the occupational analysis serving as the basis for the
examination; (2) sufficient item analysis data to permit a
psychometric evaluation of the items; (3) an assessment of the
appropriateness of prerequisites for admittance to the examination;
and (4) an estimate of the costs and personnel required to perform
these functions. The evaluation shall be revised and a new evaluation
submitted to the director whenever, in the judgment of the board,
program, or bureau, there is a substantial change in the examination
or the prerequisites for admittance to the examination.
   (d) The evaluation may be conducted by the board, program, or
bureau, the Office of  Professional  Examination Resources
of the department, the Osteopathic Medical Board of California, or
the State Board of Chiropractic Examiners or pursuant to a contract
with a qualified private testing firm. A board, program, or bureau
that provides for development or administration of a licensing
examination pursuant to contract with a public or private entity may
rely on an occupational analysis or item analysis conducted by that
entity. The department shall compile this information, along with a
schedule specifying when examination validations and occupational
analyses shall be performed, and submit it to the appropriate fiscal,
policy, and sunset review committees of the Legislature by September
30 of each year. It is the intent of the Legislature that the method
specified in this report be consistent with the policy developed by
the department pursuant to subdivision (b).
  SEC. 2.  Section 146 of the Business and Professions Code is
amended to read:
   146.  (a) Notwithstanding any other provision of law, a violation
of any code section listed in subdivision (c) or (d) is an infraction
subject to the procedures described in Sections 19.6 and 19.7 of the
Penal Code when:
   (1) A complaint or a written notice to appear in court pursuant to
Chapter 5c (commencing with Section 853.5) of Title 3 of Part 2 of
the Penal Code is filed in court charging the offense as an
infraction unless the defendant, at the time he or she is arraigned,
after being advised of his or her rights, elects to have the case
proceed as a misdemeanor, or
   (2) The court, with the consent of the defendant and the
prosecution, determines that the offense is an infraction in which
event the case shall proceed as if the defendant has been arraigned
on an infraction complaint.
   (b) Subdivision (a) does not apply to a violation of the code
sections listed in subdivisions (c) and (d) if the defendant has had
his or her license, registration, or certificate previously revoked
or suspended.
   (c) The following sections require registration, licensure,
certification, or other authorization in order to engage in certain
businesses or professions regulated by this code:
   (1) Sections 2052 and 2054.
   (2) Section 2630.
   (3) Section 2903.
   (4) Section 3660.
   (5) Sections 3760 and 3761.
   (6) Section 4080.
   (7) Section 4825.
   (8) Section 4935.
   (9) Section 4980.
   (10) Section 4996.
   (11) Section 5536. 
   (12) Section 6530.  
   (12) 
    (13)  Section 6704. 
   (13) 
    (14)  Section 6980.10. 
   (14)
    (15)  Section 7317. 
   (15) 
    (16)  Section 7502 or 7592. 
   (16) 
    (17)  Section 7520. 
   (17) 
    (18)  Section 7617 or 7641. 
   (18) 
    (19)  Subdivision (a) of Section 7872. 
   (19) 
    (20)  Section 8016. 
   (20) 
    (21)  Section 8505. 
   (21) 
    (22)  Section 8725. 
   (22) 
    (23)  Section 9681. 
   (23) 
    (24)  Section 9840. 
   (24) 
    (25)  Subdivision (c) of Section 9891.24. 
   (25) 
    (26)  Section 19049.
   (d) Institutions that are required to register with the Bureau for
Private Postsecondary and Vocational Education pursuant to Section
94931 of the Education Code.
   (e) Notwithstanding any other provision of law, a violation of any
of the sections listed in subdivision (c) or (d), which is an
infraction, is punishable by a fine of not less than two hundred
fifty dollars ($250) and not more than one thousand dollars ($1,000).
No portion of the minimum fine may be suspended by the court unless
as a condition of that suspension the defendant is required to submit
proof of a current valid license, registration, or certificate for
the profession or vocation which was the basis for his or her
conviction.
  SEC. 3.  Section 1632.5 of the Business and Professions Code is
amended to read:
   1632.5.  (a) Prior to implementation of paragraph (2) of
subdivision (c) of Section 1632, the department's Office of 
Professional  Examination Resources shall review the Western
Regional Examining Board examination to assure compliance with the
requirements of Section 139 and to certify that the examination
process meets those standards. If the department determines that the
examination process fails to meet those standards, paragraph (2) of
subdivision (c) of Section 1632 shall not be implemented. The review
of the Western Regional Examining Board examination shall be
conducted during or after the Dental Board of California's
occupational analysis scheduled for the 2004-05 fiscal year, but not
later than September 30, 2005. However, an applicant who successfully
completes the Western Regional Examining Board examination on or
after January 1, 2005, shall be deemed to have met the requirements
of subdivision (c) of Section 1632 if the department certifies that
the Western Regional Examining Board examination meets the standards
set forth in this subdivision.
   (b) The Western Regional Examining Board examination process shall
be regularly reviewed by the department pursuant to Section 139.
   (c) The Western Regional Examining Board examination shall meet
the mandates of subdivision (a) of Section 12944 of the Government
Code.
   (d) As part of its next scheduled review by the Joint Committee on
Boards, Commissions, and Consumer Protection, the Dental Board of
California shall report to that committee and the department on the
pass rates of applicants who sat for the Western Regional Examining
Board examination, compared with the pass rates of applicants who sat
for the state clinical and written examination administered by the
Dental Board of California. This report shall be a component of the
evaluation of the examination process that is based on
psychometrically sound principles for establishing minimum
qualifications and levels of competency.
  SEC. 4.  Section 1634.2 of the Business and Professions Code is
amended to read:
   1634.2.  (a) An advanced education program's compliance with
subdivision (c) of Section 1634.1 shall be regularly reviewed by the
department pursuant to Section 139.
   (b) An advanced education program described in subdivision (c) of
Section 1634.1 shall meet the requirements of subdivision (a) of
Section 12944 of the Government Code.
   (c) The clinical residency program completion certification
required by subdivision (c) of Section 1634.1 shall include a list of
core competencies commensurate to those found in the board's
examinations. The board, together with the department's Office of
 Professional  Examination Resources, shall ensure the
alignment of the competencies stated in the clinical residency
program completion certification with the board's current
occupational analysis. The board shall implement use of the clinical
residency program completion certification form and use of the core
competency list through the adoption of emergency regulations by
January 1, 2008.
   (d) As part of its next scheduled review after January 1, 2007, by
the Joint Committee on Boards, Commissions and Consumer Protection,
the board shall report to that committee and to the department the
number of complaints received for those dentists who have obtained
licensure by passing the state clinical examination and for those
dentists who have obtained licensure through an advanced education
program. The report shall also contain tracking information on these
complaints and their disposition. This report shall be a component of
the evaluation of the examination process that is based on
psychometrically sound principles for establishing minimum
qualifications and levels of competency.
  SEC. 5.  Section 2493 of the Business and Professions Code is
amended to read:
   2493.  (a) An applicant for a certificate to practice podiatric
medicine shall pass an examination in the subjects required by
Section 2483 in order to ensure a minimum of entry-level competence.
   (b) The board shall require a passing score on the National Board
of Podiatric Medical Examiners Part III examination that is
consistent with the postgraduate training requirement in Section
2484. The board, as of July 1, 2005, shall require a passing score
one standard error of measurement higher than the national passing
scale score until such time as the National Board of Podiatric
Medical Examiners recommends a higher passing score consistent with
Section 2484. In consultation with the Office of  Professional
 Examination Resources of the Department of Consumer Affairs,
the board shall ensure that the part III examination adequately
evaluates the full scope of practice established by Section 2472,
including amputation and other foot and ankle surgical procedures,
pursuant to Section 139.
  SEC. 6.  Section 4200.3 of the Business and Professions Code is
amended to read:
   4200.3.  (a) The examination process shall be regularly reviewed
pursuant to Section 139.
   (b) The examination process shall meet the standards and
guidelines set forth in the Standards for Educational and
Psychological Testing and the Federal Uniform Guidelines for Employee
Selection Procedures. The board shall work with the Office of 
Professional  Examination Resources of the department or with an
equivalent organization who shall certify at minimum once every five
years that the examination process meets these national testing
standards. If the department determines that the examination process
fails to meet these standards, the board shall terminate its use of
the North American Pharmacy Licensure Examination and shall use only
the written and practical examination developed by the board.
   (c) The examination shall meet the mandates of subdivision (a) of
Section 12944 of the Government Code.
   (d) The board shall work with the Office of  Professional
 Examination Resources or with an equivalent organization to
develop the state jurisprudence examination to ensure that applicants
for licensure are evaluated on their knowledge of applicable state
laws and regulations.
   (e) The board shall annually publish the pass and fail rates for
the pharmacist's licensure examination administered pursuant to
Section 4200, including a comparison of historical pass and fail
rates before utilization of the North American Pharmacist Licensure
Examination.
   (f) The board shall report to the Joint Committee on Boards,
Commissions, and Consumer Protection and the department as part of
its next scheduled review, the pass rates of applicants who sat for
the national examination compared with the pass rates of applicants
who sat for the prior state examination. This report shall be a
component of the evaluation of the examination process that is based
on psychometrically sound principles for establishing minimum
qualifications and levels of competency.
  SEC. 7.  Section 4200.4 of the Business and Professions Code is
amended to read:
   4200.4.  An applicant who fails the national examination may not
retake the examination for at least 90 days or for a period
established by regulations adopted by the board in consultation with
the Office of  Professional  Examination Resources of the
department.
  SEC. 8.  Section 4938 of the Business and Professions Code is
amended to read:
   4938.  The board shall issue a license to practice acupuncture to
any person who makes an application and meets the following
requirements:
   (a) Is at least 18 years of age.
   (b) Furnishes satisfactory evidence of completion of one of the
following:
   (1) An educational and training program approved by the board
pursuant to Section 4939.
   (2) Satisfactory completion of a tutorial program in the practice
of an acupuncturist which is approved by the board.
   (3) In the case of an applicant who has completed education and
training outside the United States and Canada, documented educational
training and clinical experience which meets the standards
established pursuant to Sections 4939 and 4941.
   (c) Passes a written examination administered by the board that
tests the applicant's ability, competency, and knowledge in the
practice of an acupuncturist. The written examination shall be
developed by the Office of  Professional  Examination
Resources of the Department of Consumer Affairs.
   (d) Is not subject to denial pursuant to Division 1.5 (commencing
with Section 475).
   (e) Completes a clinical internship training program approved by
the board. The clinical internship training program shall not exceed
nine months in duration and shall be located in a clinic in this
state, which is approved by the board pursuant to Section 4939. The
length of the clinical internship shall depend upon the grades
received in the examination and the clinical training already
satisfactorily completed by the individual prior to taking the
examination. On and after January 1, 1987, individuals with 800 or
more hours of documented clinical training shall be deemed to have
met this requirement. The purpose of the clinical internship training
program shall be to assure a minimum level of clinical competence.
   Each applicant who qualifies for a license shall pay, as a
condition precedent to its issuance and in addition to other fees
required, the initial licensure fee.
  SEC. 9.  Section 5016 of the Business and Professions Code is
amended to read:
   5016.  A majority of the board shall constitute a quorum for the
transaction of any business at any meeting of the board  for
which a notice of at least seven days is given by the president or
executive officer. Notice of meetings may be waived in writing either
before or after the meeting by unanimous consent of all members
 .  Notice of each meeting of the board shall be given
in accordance with the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of Division 3
of Title 2 of the Government Code).  The board shall meet at the
call of the president and executive officer, but not less than twice
each year. Any two members of the board may request the executive
officer to call a special meeting, and the executive officer, upon
receiving that notice, shall call a meeting pursuant to the procedure
prescribed herein.
  SEC. 10.  Section 5021 of the Business and Professions Code is
amended to read:
   5021.  The members of the administrative  committee
  and qualifications committees  shall hold office
for  one year  two years  .
  SEC. 11.  Section 5022 of the Business and Professions Code is
amended to read:
   5022.  The  qualifications  committee shall make
recommendations and forward its report to the board for action on any
matter on which it is authorized to act.  Any  
An  applicant for registration as a certified public accountant
who is aggrieved by any action taken by the committee with respect
to his or her qualifications may appeal to the board in accordance
with rules or regulations prescribed by the board. The board on the
appeal may give an oral or written examination as an aid in
determining whether the applicant is qualified under the terms of
this chapter.
  SEC. 12.  Section 5023 of the Business and Professions Code is
amended to read:
   5023.  The board may establish  an advisory  
a qualifications  committee of its own certified public
accountant members or other certified public accountants of the state
in good standing, to perform  either of  the
following advisory duties:
   (a) To examine  the qualifications of  all applicants for
the license of certified public accountant.
   (b) To recommend to the board applicants for the certified public
accountant license who fulfill the requirements of this chapter.
  SEC. 13.  Section 5651 of the Business and Professions Code is
amended to read:
   5651.  (a) The board shall by means of examination, ascertain the
professional qualifications of all applicants for licenses to
practice landscape architecture in this state and shall issue a
license to every person whom it finds to be qualified on payment of
the initial license fee prescribed by this chapter.
   (b) The examination shall consist of a written examination. The
written examination may be waived by the board if the applicant
 (1) is   meets both of the following
requirements: 
    (1)     Is  currently licensed by a
United States jurisdiction, Canadian province, or Puerto Rico
 and   ,  has passed a written examination
equivalent to that which is required in California at the time of
application  , and  (2)  has  submitted
proof of job experience equivalent to that required of California
applicants at the time of application. 
    (2)    Has  passed the California
supplemental examination if, at the time of application, it is
required of all California applicants.
  SEC. 14.  Section 7028.7 of the Business and Professions Code is
amended to read:
   7028.7.   (a)   If upon inspection or
investigation, either upon complaint or otherwise, the registrar has
probable cause to believe that a person is acting in the capacity of
or engaging in the business of a contractor or salesperson within
this state without having a license or registration in good standing
to so act or engage, and the person is not otherwise exempted from
this chapter, the registrar shall issue a citation to that person.
 Within 
    (b)     Within  72 hours of receiving
notice that a public entity is intending to award, or has awarded, a
contract to an unlicensed contractor, the registrar shall give
written notice to the public entity that a citation may be issued if
a contract is awarded to an unlicensed contractor. If after receiving
the written notice from the registrar that the public entity has
awarded or awards the contract to an unlicensed contractor, the
registrar may issue a citation to the responsible officer or employee
of the public entity as specified in Section 7028.15.  Each

    (c)     Each  citation  authorized
under this section  shall be in writing and  shall
 describe with particularity the basis of the citation. Each
citation shall contain an order of abatement and an assessment of a
civil penalty in an amount not less than two hundred dollars ($200)
 nor   or  more than fifteen thousand
dollars ($15,000).  With 
    (d)     With  the approval of the
Contractors' State License Board, the registrar shall prescribe
procedures for the issuance of a citation  a   uthorized
 under this section. The Contractors' State License Board shall
adopt regulations covering the assessment of a civil penalty that
shall give due consideration to the gravity of the violation, and any
history of previous violations.  The 
    (e)     The  sanctions authorized
under this section shall be separate from, and in addition to, all
other remedies either civil or criminal.
  SEC. 15.  Section 7044 of the Business and Professions Code is
amended to read:
   7044.   (a)    This chapter does not apply to
any of the following: 
   (a) An owner of property, building or improving structures
thereon, or appurtenances thereto, who does the work himself or
herself or through his or her own employees with wages as their sole
compensation, provided none of the structures, with or without the
appurtenances thereto, are intended or offered for sale. 

   (b) An owner of property, building or improving structures
thereon, or appurtenances thereto, who contracts for such a project
with a subcontractor or subcontractors licensed pursuant to this
chapter.  
   However, this exemption shall apply to the construction of
single-family residential structures only if four or fewer of these
structures are intended or offered for sale in a calendar year. This
limitation shall not apply if the owner of property contracts with a
general contractor for the construction.  
   (1) An owner who builds or improves a structure on his or her
property, provided that both of the following conditions are met:
 
   (A) None of the improvements are intended or offered for sale.
 
   (B) The property owner personally performs all of the work or any
work not performed by the owner is performed by the owner's employees
with wages as their sole compensation.  
   (2) An owner who builds or improves a structure on his or her
property, provided that both of the following conditions are met:
 
   (A) The owner directly contracts with licensees who are duly
licensed to contract for the work of the respective trades involved
in completing the project.  
   (B) For projects involving single-family residential structures,
no more than four of these structures are intended or offered for
sale in a calendar year. This subparagraph shall not apply if the
owner contracts with a general contractor for the construction. 

   (c) 
    (3)  A homeowner improving his or her principal place of
residence or appurtenances thereto, provided that all of the
following conditions exist: 
   (1) 
    (A)  The work is performed prior to sale. 
   (2) 
    (B)  The homeowner has actually resided in the residence
for the 12 months prior to completion of the work. 
   (3) 
    (C)  The homeowner has not availed himself or herself of
the exemption in this  subdivision   paragraph
 on more than two structures more than once during any
three-year period. 
   In 
    (b)     In  all actions brought under
this chapter,  proof   both of the following
shall apply: 
    (1)     Except as provided in paragraph
(2), proof  of the sale or offering for sale of  any
such   a  structure by  or for  the
owner-builder within one year after completion of  same
  the structure  constitutes a rebuttable
presumption affecting the burden of proof that  such
  the  structure was undertaken for purposes of
sale.  Except as otherwise provided in this section, proof

    (2)     Proof  of the sale or offering
for sale of five or more structures by the owner-builder within one
year after completion constitutes a conclusive presumption that the
structures were undertaken for purposes of sale. 
   In addition to all other remedies, any (1) licensed contractor, or
association of contractors, (2) labor organization, (3) consumer
affected by the violation, (4) district attorney, or (5) the Attorney
General, shall be entitled to seek injunctive relief prohibiting any
violation of this chapter by an owner-builder who is neither
licensed nor exempted from licensure by this section or any other
section according to the provisions specified in Section 7028.3 or
Section 7028.4. The plaintiff in any such action shall not be
required to prove irreparable injury and shall be entitled to
attorneys' fees and all costs incurred in the prosecution of such
action, provided the plaintiff is the prevailing party. The defendant
in any such action, shall be entitled to attorneys' fees and all
costs incurred in the defense against such action, provided the
defendant is the prevailing party.  

      The registrar pursuant to Section 7090 may take disciplinary
action as provided in this chapter against any person whenever the
grounds or cause for disciplinary action arose upon any project
undertaken by him or her as a licensee licensed pursuant to this
chapter.  
   Any person, firm, or corporation which has violated Section 7028
by engaging in contracting work as an owner-builder without having a
license or an exemption from licensure under this section or any
other section shall not be entitled to become a licensee under this
chapter for a period of one year following the violation. 
  SEC. 16.  Section 7044.01 is added to the Business and Professions
Code, to read:
   7044.01.  In addition to all other remedies, any (a) licensed
contractor or association of contractors, (b) labor organization, (c)
consumer affected by the violation, (d) district attorney, or (e)
the Attorney General shall be entitled to seek injunctive relief
prohibiting any violation of this chapter by an owner-builder who is
neither licensed nor exempted from licensure under this chapter. The
plaintiff in that action shall not be required to prove irreparable
injury and shall be entitled to attorney's fees and all costs
incurred in the prosecution of the action, provided the plaintiff is
the prevailing party. The defendant in that action shall be entitled
to attorney's fees and all costs incurred in the defense against the
action, provided the defendant is the prevailing party.
  SEC. 17.  Section 7108.5 of the Business and Professions Code is
repealed. 
   7108.5.  A prime contractor or subcontractor shall pay to any
subcontractor, not later than 10 days of receipt of each progress
payment, unless otherwise agreed to in writing, the respective
amounts allowed the contractor on account of the work performed by
the subcontractors, to the extent of each subcontractor's interest
therein. In the event that there is a good faith dispute over all or
any portion of the amount due on a progress payment from the prime
contractor or subcontractor to a subcontractor, then the prime
contractor or subcontractor may withhold no more than 150 percent of
the disputed amount.
   Any violation of this section shall constitute a cause for
disciplinary action and shall subject the licensee to a penalty,
payable to the subcontractor, of 2 percent of the amount due per
month for every month that payment is not made. In any action for the
collection of funds wrongfully withheld, the prevailing party shall
be entitled to his or her attorney's fees and costs.
   The sanctions authorized under this section shall be separate
from, and in addition to, all other remedies either civil,
administrative, or criminal.
   This section applies to all private works of improvement and to
all public works of improvement, except where Section 10262 of the
Public Contract Code applies. 
  SEC. 18.  Section 7108.5 is added to the Business and Professions
Code, to read:
   7108.5.  (a) This section applies to all private works of
improvement and to all public works of improvement, except where
Section 10262 of the Public Contract Code applies.
   (b) Except as provided in subdivision (c), a prime contractor or
subcontractor shall pay to any subcontractor, not later than 10 days
of receipt of each progress payment, unless otherwise agreed to in
writing, the respective amounts allowed the contractor on account of
the work performed by the subcontractors, to the extent of each
subcontractor's interest therein. A prime contractor or subcontractor
that fails to comply with this subdivision shall be subject to a
penalty, payable to the subcontractor, of 2 percent of the amount due
per month for every month that payment is not made as required under
this subdivision.
   (c) If there is a good faith dispute over all or any portion of
the amount due on a progress payment from the prime contractor or
subcontractor to a subcontractor, the prime contractor or
subcontractor may withhold no more than 150 percent of the disputed
amount.
   (d) A violation of this section shall constitute a cause for
disciplinary action.
   (e) In any action for the collection of funds wrongfully withheld,
the prevailing party shall be entitled to his or her attorney's fees
and costs.
   (f) The sanctions authorized under this section shall be separate
from, and in addition to, all other remedies, either civil,
administrative, or criminal.
  SEC. 19.  Section 7159 of the Business and Professions Code is
amended to read:
   7159.  (a) (1) This section identifies the projects for which a
home improvement contract is required, outlines the contract
requirements, and lists the items that shall be included in the
contract, or may be provided as an attachment.
   (2) This section does not apply to service and repair contracts
that are subject to Section 7159.10, if the contract for the
applicable services complies with Sections 7159.10 to 7159.14,
inclusive.
   (3) This section does not apply to the sale, installation, and
servicing of a fire alarm sold in conjunction with an alarm system,
as defined in subdivision (n) of Section 7590.1, if all costs
attributable to making the fire alarm system operable, including sale
and installation costs, do not exceed five hundred dollars ($500),
and the licensee complies with the requirements set forth in Section
7159.9.
   (4) This section does not apply to any costs associated with
monitoring a burglar or fire alarm system.
   (5) Failure by the licensee, his or her agent or salesperson, or
by a person subject to be licensed under this chapter, to provide the
specified information, notices, and disclosures in the contract, or
to otherwise fail to comply with any provision of this section, is
cause for discipline.
   (b) For purposes of this section, "home improvement contract"
means an agreement, whether oral or written, or contained in one or
more documents, between a contractor and an owner or between a
contractor and a tenant, regardless of the number of residence or
dwelling units contained in the building in which the tenant resides,
if the work is to be performed in, to, or upon the residence or
dwelling unit of the tenant, for the performance of a home
improvement, as defined in Section 7151, and includes all labor,
services, and materials to be furnished and performed thereunder, if
the aggregate contract price specified in one or more improvement
contracts, including all labor, services, and materials to be
furnished by the contractor, exceeds five hundred dollars ($500).
"Home improvement contract" also means an agreement, whether oral or
written, or contained in one or more documents, between a
salesperson, whether or not he or she is a home improvement
salesperson, and an owner or a tenant, regardless of the number of
residence or dwelling units contained in the building in which the
tenant resides, which provides for the sale, installation, or
furnishing of home improvement goods or services.
   (c) In addition to the specific requirements listed under this
section, every home improvement contract and any person subject to
licensure under this chapter or his or her agent or salesperson shall
comply with all of the following:
   (1) The writing shall be legible.
   (2) Any printed form shall be readable. Unless a larger typeface
is specified in this article, text in any printed form shall be in at
least 10-point typeface and the headings shall be in at least
10-point boldface type.
   (3) (A) Before any work is started, the contractor shall give the
buyer a copy of the contract signed and dated by both the contractor
and the buyer. The buyer's receipt of the copy of the contract
initiates the buyer's rights to cancel the contract pursuant to
Sections 1689.5 to 1689.14, inclusive, of the Civil Code.
   (B) The contract shall contain on the first page, in a typeface no
smaller than that generally used in the body of the document, both
of the following:
   (i) The date the buyer signed the contract.
   (ii) The name and address of the contractor to which the
applicable "Notice of Cancellation" is to be mailed, immediately
preceded by a statement advising the buyer that the "Notice of
Cancellation" may be sent to the contractor at the address noted on
the contract.
   (4)  A   The contract shall include a 
statement that, upon satisfactory payment being made for any portion
of the work performed, the contractor, prior to any further payment
being made, shall furnish to the person contracting for the home
improvement or swimming pool work a full and unconditional release
from any  potential lien claimant  claim or mechanic's lien
 au   thorized  pursuant to Section  3114
  3110  of the Civil Code for that portion of the
work for which payment has been made.
   (5) A change-order form for changes or extra work shall be
incorporated into the contract and shall become part of the contract
only if it is in writing and signed by the parties prior to the
commencement of any work covered by a change order.
   (6) The contract shall contain, in close proximity to the
signatures of the owner and contractor, a notice stating that the
owner or tenant has the right to require the contractor to have a
performance and payment bond.
   (7) If the contract provides for a contractor to furnish joint
control, the contractor shall not have any financial or other
interest in the joint control.
   (8) The provisions of this section are not exclusive and do not
relieve the contractor from compliance with any other applicable
provision of law.
   (d) A home improvement contract and any changes to the contract
shall be in writing and signed by the parties to the contract prior
to the commencement of work covered by the contract or an applicable
change order and, except as provided in paragraph (8) of subdivision
(a) of Section 7159.5, shall include or comply with all of the
following:
   (1) The name, business address, and license number of the
contractor.
   (2) If applicable, the name and registration number of the home
improvement salesperson that solicited or negotiated the contract.
   (3) The following heading on the contract form that identifies the
type of contract in at least 10-point boldface type: "Home
Improvement."
   (4) The following statement in at least 12-point boldface type:
"You are entitled to a completely filled in copy of this agreement,
signed by both you and the contractor, before any work may be
started."
   (5) The heading: "Contract Price," followed by the amount of the
contract in dollars and cents.
   (6) If a finance charge will be charged, the heading: "Finance
Charge," followed by the amount in dollars and cents. The finance
charge is to be set out separately from the contract amount.
   (7) The heading: "Description of the Project and Description of
the Significant Materials to be Used and Equipment to be Installed,"
followed by a description of the project and a description of the
significant materials to be used and equipment to be installed. For
swimming pools, the project description required under this paragraph
also shall include a plan and scale drawing showing the shape, size,
dimensions, and the construction and equipment specifications.
   (8) If a downpayment will be charged, the details of the
downpayment shall be expressed in substantially the following form,
and shall include the text of the notice as specified in subparagraph
(C):
   (A) The heading: "Downpayment."
   (B) A space where the actual downpayment appears.
   (C) The following statement in at least 12-point boldface type:

   "THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE
CONTRACT PRICE, WHICHEVER IS LESS."
   (9) If payments, other than the downpayment, are to be made before
the project is completed, the details of these payments, known as
progress payments, shall be expressed in substantially the following
form, and shall include the text of the statement as specified in
subparagraph (C):
   (A) A schedule of progress payments shall be preceded by the
heading: "Schedule of Progress Payments."

   (B) Each progress payment shall be stated in dollars and cents and
specifically reference the amount of work or services to be
performed and materials and equipment to be supplied.
   (C) The section of the contract reserved for the progress payments
shall include the following statement in at least 12-point boldface
type:

   "The schedule of progress payments must specifically describe each
phase of work, including the type and amount of work or services
scheduled to be supplied in each phase, along with the amount of each
proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO
COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET
DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT."

   (10) The contract shall address the commencement of work to be
performed in substantially the following form:
   (A) A statement that describes what constitutes substantial
commencement of work under the contract.
   (B) The heading: "Approximate Start Date."
   (C) The approximate date on which work will be commenced.
   (11) The estimated completion date of the work shall be referenced
in the contract in substantially the following form:
   (A) The heading: "Approximate Completion Date."
   (B) The approximate date of completion.
   (12) If applicable, the heading: "List of Documents to be
Incorporated into the Contract," followed by the list of documents
incorporated into the contract.
   (13) The heading: "Note about Extra Work and Change Orders,"
followed by the following statement:

   "Extra Work and Change Orders become part of the contract once the
order is prepared in writing and signed by the parties prior to the
commencement of work covered by the new change order. The order must
describe the scope of the extra work or change, the cost to be added
or subtracted from the contract, and the effect the order will have
on the schedule of progress payments."

   (e) Except as provided in paragraph (8) of subdivision (a) of
Section 7159.5, all of the following notices shall be provided to the
owner as part of the contract form as specified or, if otherwise
authorized under this subdivision, may be provided as an attachment
to the contract:
   (1) A notice concerning commercial general liability insurance.
This notice may be provided as an attachment to the contract if the
contract includes the following statement: "A notice concerning
commercial general liability insurance is attached to this contract."
The notice shall include the heading "Commercial General Liability
Insurance (CGL)," followed by whichever of the following statements
is both relevant and correct:
   (A) "(The name on the license or "This contractor') does not carry
commercial general liability insurance."
   (B) "(The name on the license or "This contractor') carries
commercial general liability insurance written by (the insurance
company). You may call (the insurance company) at __________ to check
the contractor's insurance coverage."
   (C) "(The name on the license or "This contractor') is
self-insured."
   (2) A notice concerning workers' compensation insurance. This
notice may be provided as an attachment to the contract if the
contract includes the statement: "A notice concerning workers'
compensation insurance is attached to this contract." The notice
shall include the heading "Workers' Compensation Insurance" followed
by whichever of the following statements is correct:
   (A) "(The name on the license or "This contractor') has no
employees and is exempt from workers' compensation requirements."
   (B) "(The name on the license or "This contractor') carries
workers' compensation insurance for all employees."
   (3) A notice that provides the buyer with the following
information about the performance of extra or change-order work:
   (A) A statement that the buyer may not require a contractor to
perform extra or change-order work without providing written
authorization prior to the commencement of work covered by the new
change order.
   (B) A statement informing the buyer that extra work or a change
order is not enforceable against a buyer unless the change order also
identifies all of the following in writing prior to the commencement
of work covered by the new change order:
   (i) The scope of work encompassed by the order.
   (ii) The amount to be added or subtracted from the contract.
   (iii) The effect the order will make in the progress payments or
the completion date.
   (C) A statement informing the buyer that the contractor's failure
to comply with the requirements of this paragraph does not preclude
the recovery of compensation for work performed based upon legal or
equitable remedies designed to prevent unjust enrichment.
   (4) A notice with the heading "Mechanics' Lien Warning" written as
follows:


   "MECHANICS' LIEN WARNING:
   Anyone who helps improve your property, but who is not paid, may
record what is called a mechanics' lien on your property. A mechanics'
lien is a claim, like a mortgage or home equity loan, made against
your property and recorded with the county recorder.
   Even if you pay your contractor in full, unpaid subcontractors,
suppliers, and laborers who helped to improve your property may
record mechanics' liens and sue you in court to foreclose the lien.
If a court finds the lien is valid, you could be forced to pay twice
or have a court officer sell your home to pay the lien. Liens can
also affect your credit.
   To preserve their right to record a lien, each subcontractor and
material supplier must provide you with a document called a "20-day
Preliminary Notice.' This notice is not a lien. The purpose of the
notice is to let you know that the person who sends you the notice
has the right to record a lien on your property if he or she is not
paid.
   BE CAREFUL. The Preliminary Notice can be sent up to 20 days after
the subcontractor starts work or the supplier provides material.
This can be a big problem if you pay your contractor before you have
received the Preliminary Notices.
   You will not get Preliminary Notices from your prime contractor or
from laborers who work on your project. The law assumes that you
already know they are improving your property.
   PROTECT YOURSELF FROM LIENS. You can protect yourself from liens
by getting a list from your contractor of all the subcontractors and
material suppliers that work on your project. Find out from your
contractor when these subcontractors started work and when these
suppliers delivered goods or materials. Then wait 20 days, paying
attention to the Preliminary Notices you receive.
   PAY WITH JOINT CHECKS. One way to protect yourself is to pay with
a joint check. When your contractor tells you it is time to pay for
the work of a subcontractor or supplier who has provided you with a
Preliminary Notice, write a joint check payable to both the
contractor and the subcontractor or material supplier.
   For other ways to prevent liens, visit CSLB's Internet Web site at
www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).
   REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR
HOME. This can mean that you may have to pay twice, or face the
forced sale of your home to pay what you owe."


   (5) The following notice shall be provided in at least 12-point
typeface:


   "Information about the Contractors' State License Board (CSLB):
CSLB is the state consumer protection agency that licenses and
regulates construction contractors.
   Contact CSLB for information about the licensed contractor you are
considering, including information about disclosable complaints,
disciplinary actions, and civil judgments that are reported to CSLB.
   Use only licensed contractors. If you file a complaint against a
licensed contractor within the legal deadline (usually four years),
CSLB has authority to investigate the complaint. If you use an
unlicensed contractor, CSLB may not be able to help you resolve your
complaint. Your only remedy may be in civil court, and you may be
liable for damages arising out of any injuries to the unlicensed
contractor or the unlicensed contractor's employees.
   For more information:
   Visit CSLB's Internet Web site at www.cslb.ca.gov
   Call CSLB at 800-321-CSLB (2752)
   Write CSLB at P.O. Box 26000, Sacramento, CA 95826."


   (6) (A) The notice set forth in subparagraph (B) and entitled
"Three-Day Right to Cancel," shall be provided to the buyer unless
the contract is:
   (i) Negotiated at the contractor's place of business.
   (ii) Subject to the "Seven-Day Right to Cancel," as set forth in
paragraph (7).
   (iii) Subject to licensure under the Alarm Company Act (Chapter
11.6 (commencing with Section 7590)), provided the alarm company
licensee complies with Sections 1689.5, 1689.6, and 1689.7 of the
Civil Code, as applicable.

   (B) "Three-Day Right to Cancel

   You, the buyer, have the right to cancel this contract within
three business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the third business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
   If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods
delivered to you under this contract or sale. Or, you may, if you
wish, comply with the contractor's instructions on how to return the
goods at the contractor's expense and risk. If you do make the goods
available to the contractor and the contractor does not pick them up
within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the
goods available to the contractor, or if you agree to return the
goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."


   (C) The "Three-Day Right to Cancel" notice required by this
paragraph shall comply with all of the following:
   (i) The text of the notice is at least 12-point boldface type.
   (ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
   (iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
   (iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
   (v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Three-Day Right to Cancel.'
"
   (vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which also shall be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
             ""Notice of Cancellation''
                      /enter date of transaction/
                    ______________________________
                                (Date)



   "You may cancel this transaction, without any penalty or
obligation, within three business days from the above date.
   If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
   If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
   If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."

To cancel this transaction, mail or deliver a
signed and dated copy of this cancellation
notice, or any other written notice, or send a
telegram
to_____________________________________________,
                /name of       seller/
at______________________________________________
           /address of seller's place of
business/
not later than midnight of_____________________.
                           (Date)
  I hereby cancel this transaction. _____________
                             (Date)
             ____________________________________
                       (Buyer's signature)


   (7) (A) The following notice entitled "Seven-Day Right to Cancel"
shall be provided to the buyer for any contract that is written for
the repair or restoration of residential premises damaged by any
sudden or catastrophic event for which a state of emergency has been
declared by the President of the United States or the Governor, or
for which a local emergency has been declared by the executive
officer or governing body of any city, county, or city and county:


   "Seven-Day Right to Cancel
   You, the buyer, have the right to cancel this contract within
seven business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the seventh business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
   If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
                                                      substantially
as good condition as you received them, goods delivered to you under
this contract or sale. Or, you may, if you wish, comply with the
contractor's instructions on how to return the goods at the
contractor's expense and risk. If you do make the goods available to
the contractor and the contractor does not pick them up within 20
days of the date of your notice of cancellation, you may keep them
without any further obligation. If you fail to make the goods
available to the contractor, or if you agree to return the goods to
the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."


   (B) The "Seven-Day Right to Cancel" notice required by this
subdivision shall comply with all of the following:
   (i) The text of the notice is at least 12-point boldface type.
   (ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
   (iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
   (iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
   (v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Seven-Day Right to Cancel.'
"
   (vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which shall also be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
            ""Notice of Cancellation''
                      /enter date of transaction/
                    ______________________________
                                (Date)



   "You may cancel this transaction, without any penalty or
obligation, within seven business days from the above date.
   If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
   If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
   If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."

To cancel this transaction, mail or deliver
a signed and dated copy of this cancellation
notice, or any other written notice, or send a
telegram
to_____________________________________________,
                /name of seller/
at______________________________________________
           /address of seller's place of
business/
not later than midnight of_____________________.
                           (Date)
  I hereby cancel this transaction. _____________
                             (Date)
             ____________________________________
                        (Buyer's signature)


  SEC. 20.  Section 7159.5 of the Business and Professions Code is
amended to read:
   7159.5.  This section applies to all home improvement contracts,
as defined in Section 7151.2, between an owner or tenant and a
contractor, whether a general contractor or a specialty contractor,
who is licensed or subject to be licensed pursuant to this chapter
with regard to the transaction.
   (a) Failure by the licensee or a person subject to be licensed
under this chapter, or by his or her agent or salesperson, to comply
with the following provisions is cause for discipline:
   (1) The contract shall be in writing and shall include the agreed
contract amount in dollars and cents. The contract amount shall
include the entire cost of the contract, including profit, labor, and
materials, but excluding finance charges.
   (2) If there is a separate finance charge between the contractor
and the person contracting for home improvement, the finance charge
shall be set out separately from the contract amount.
   (3) If a downpayment will be charged, the downpayment may not
exceed one thousand dollars ($1,000) or 10 percent of the contract
amount, whichever is less.
   (4) If, in addition to a downpayment, the contract provides for
payments to be made prior to completion of the work, the contract
shall include a schedule of payments in dollars and cents
specifically referencing the amount of work or services to be
performed and any materials and equipment to be supplied.
   (5) Except for a downpayment, the contractor may neither request
nor accept payment that exceeds the value of the work performed or
material delivered.
   (6) Upon any payment by the person contracting for home
improvement, and prior to any further payment being made, the
contractor shall, if requested, obtain and furnish to the person a
full and unconditional release from any potential lien claimant claim
or mechanic's lien  a   uthorized  pursuant to
Section  3114   3110  of the Civil Code for
any portion of the work for which payment has been made. The person
contracting for home improvement may withhold all further payments
until these releases are furnished.
   (7) If the contract provides for a payment of a salesperson's
commission out of the contract price, that payment shall be made on a
pro rata basis in proportion to the schedule of payments made to the
contractor by the disbursing party in accordance with paragraph (4).

   (8) A contractor furnishing a performance and payment bond, lien
and completion bond, or a bond equivalent or joint control approved
by the registrar covering full performance and payment is exempt from
paragraphs (3), (4), and (5), and need not include, as part of the
contract, the statement regarding the downpayment specified in
subparagraph (C) of paragraph (8) of subdivision (d) of Section 7159,
the details and statement regarding progress payments specified in
paragraph (9) of subdivision (d) of Section 7159, or the Mechanics'
Lien Warning specified in paragraph (4) of subdivision (e) of Section
7159. A contractor furnishing these bonds, bond equivalents, or a
joint control approved by the registrar may accept payment prior to
completion. If the contract provides for a contractor to furnish
joint control, the contractor shall not have any financial or other
interest in the joint control.
   (b) A violation of paragraph (1), (3), or (5) of subdivision (a)
by a licensee or a person subject to be licensed under this chapter,
or by his or her agent or salesperson, is a misdemeanor punishable by
a fine of not less than one hundred dollars ($100) nor more than
five thousand dollars ($5,000), or by imprisonment in a county jail
not exceeding one year, or by both that fine and imprisonment.
   (1) An indictment or information against a person who is not
licensed but who is required to be licensed under this chapter shall
be brought, or a criminal complaint filed, for a violation of this
section, in accordance with paragraph (4) of subdivision (d) of
Section 802 of the Penal Code, within four years from the date of the
contract or, if the contract is not reduced to writing, from the
date the buyer makes the first payment to the contractor.
   (2) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this section, in accordance with paragraph (2) of
subdivision (d) of Section 802 of the Penal Code, within two years
from the date of the contract or, if the contract is not reduced to
writing, from the date the buyer makes the first payment to the
contractor.
   (3) The limitations on actions in this subdivision shall not apply
to any administrative action filed against a licensed contractor.
   (c) Any person who violates this section as part of a plan or
scheme to defraud an owner or tenant of a residential or
nonresidential structure, including a mobilehome or manufactured
home, in connection with the offer or performance of repairs to the
structure for damage caused by a natural disaster, shall be ordered
by the court to make full restitution to the victim based on the
person's ability to pay, as defined in subdivision (e) of Section
1203.1b of the Penal Code. In addition to full restitution, and
imprisonment authorized by this section, the court may impose a fine
of not less than five hundred dollars ($500) nor more than
twenty-five thousand dollars ($25,000), based upon the defendant's
ability to pay. This subdivision applies to natural disasters 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.
  SEC. 21.  Section 7159.14 of the Business and Professions Code is
amended to read:
   7159.14.  (a) This section applies to a service and repair
contract as defined in Section 7159.10. A violation of this section
by a licensee or a person subject to be licensed under this chapter,
or by his or her agent or salesperson, is cause for discipline.
   (1) The contract may not exceed seven hundred fifty dollars
($750).
   (2) The contract shall be in writing and shall state the agreed
contract amount, which may be stated as either a fixed contract
amount in dollars and cents or, if a time and materials formula is
used, as an estimated contract amount in dollars and cents.
   (3) The contract amount shall include the entire cost of the
contract including profit, labor, and materials, but excluding
finance charges.
   (4) The actual contract amount of a time and materials contract
may not exceed the estimated contract amount without written
authorization from the buyer.
   (5) The prospective buyer must have initiated contact with the
contractor to request work.
   (6) The contractor may not sell the buyer goods or services beyond
those reasonably necessary to take care of the particular problem
that caused the buyer to contact the contractor.
   (7) No payment may be due before the project is completed.
   (8) A service and repair contractor may charge only one service
charge. For purposes of this chapter, a service charge includes such
charges as a service or trip charge, or an inspection fee.
   (9) A service and repair contractor charging a service charge must
disclose in all advertisements that there is a service charge and,
when the customer initiates the call for service, must disclose the
amount of the service charge.
   (10) The service and repair contractor must offer to the customer
any parts that were replaced.
   (11) Upon any payment by the buyer, the contractor shall, if
requested, obtain and furnish to the buyer a full and unconditional
release from any potential lien claimant claim or mechanic's lien
 authorized  pursuant to Section  3114 
 3110  of the Civil Code for any portion of the work for
which payment has been made.
   (b) A violation of paragraph (1), (2), (3), (4), (5), (6), or (8)
of subdivision (a) by a licensee or a person subject to be licensed
under this chapter, or by his or her agent or salesperson, is a
misdemeanor punishable by a fine of not less than one hundred dollars
($100) nor more than five thousand dollars ($5,000), or by
imprisonment in a county jail not exceeding one year, or by both that
fine and imprisonment.
   (1) An indictment or information against a person who is not
licensed but who is required to be licensed under this chapter shall
be brought, or a criminal complaint filed, for a violation of this
section, in accordance with paragraph (4) of subdivision (d) of
Section 802 of the Penal Code, within four years from the date of the
contract or, if the contract is not reduced to writing, from the
date the buyer makes the first payment to the contractor.
   (2) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this section, in accordance with paragraph (2) of
subdivision (d) of Section 802 of the Penal Code, within two years
from the date of the contract or, if the contract is not reduced to
writing, from the date the buyer makes the first payment to the
contractor.
   (3) The limitations on actions in this subdivision shall not apply
to any administrative action filed against a licensed contractor.
   (c) Any person who violates this section as part of a plan or
scheme to defraud an owner or tenant of a residential or
nonresidential structure, including a mobilehome or manufactured
home, in connection with the offer or performance of repairs to the
structure for damage caused by a natural disaster, shall be ordered
by the court to make full restitution to the victim based on the
person's ability to pay, as defined in subdivision (e) of Section
1203.1b of the Penal Code. In addition to full restitution, and
imprisonment authorized by this section, the court may impose a fine
of not less than five hundred dollars ($500) nor more than
twenty-five thousand dollars ($25,000), based upon the defendant's
ability to pay. This subdivision applies to natural disasters 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.
  SEC. 22.  Section 7303.2 of the Business and Professions Code is
amended to read:
   7303.2.  The board shall conduct the following studies and
reviews, and shall report its findings and recommendations to the
department and the Joint Committee on Boards, Commissions, and
Consumer Protection no later than September 1, 2005:
   (a) The board, pursuant to Section 139 and in conjunction with the
Office of  Professional  Examination Resources of the
department, shall review the 1600 hour training requirement for
cosmetologists.
   (b) The board, in conjunction with the Office of  Professional
 Examination Resources of the department, shall evaluate the
equivalency of the national exam.
   (c) The board shall conduct a study to assess the costs and
benefits associated with requiring all applicants to submit
fingerprint cards for background investigations.
   (d) The board, in coordination with the Department of Industrial
Relations, shall review all components of the apprenticeship program,
including, but not limited to, the following:
   (1) Apprenticeship curriculum requirements.
   (2) The standards for the preapprentice trainers, program
sponsors, trainers, and placement establishments. The board shall pay
particular attention to ways to eliminate duplicative regulations.
   (e) The board shall review all components of the externship
program. In addition to structural changes, the board shall address
the following:
   (1) Whether the program should be eliminated.
   (2) Whether the program should be available to all students, not
just cosmetology students attending private schools.
   (3) Whether the students should be paid.
   (f) The board shall assess the costs and benefits associated with
same day licensing. If the board determines that the benefits of same
day licensing outweigh the costs, the board shall immediately plan
and implement safety measures to protect site staff and undispersed
licenses.
   (g) The board, in conjunction with the Office of  Professional
 Examination Resources of the department, shall assess the
validity of aggregate scoring for board applicants.
  SEC. 23.  Section 7606 of the Business and Professions Code is
amended to read:
   7606.  The bureau may, pursuant to the provisions of the
Administrative Procedure Act, adopt and enforce reasonably necessary
rules and regulations relating to:
   (a) The practice of embalming  ;   . 
   (b) The business of a funeral director  ;   .

   (c) The sanitary conditions of places where such practice or
business is conducted with particular regard to plumbing, sewage,
ventilation and equipment  ;   . 
   (d) Specifying conditions for approval of funeral establishments
for apprentices and for approval of  embalming schools;
  mortuary science programs. 
   (e) The scope of examinations  ;   . 
   (f) Carrying out generally the various provisions of this chapter
for the protection of the peace, health, safety, welfare and morals
of the public.
  SEC. 24.  Section 7616 of the Business and Professions Code is
amended to read:
   7616.  (a) A licensed funeral establishment is a place of business
conducted in a building or separate portion of a building having a
specific street address or location and devoted exclusively to those
activities as are incident, convenient, or related to the preparation
and arrangements, financial and otherwise, for the funeral,
transportation, burial or other disposition of human remains and
including, but not limited to, either of the following:
   (1) A suitable room for the storage of human remains.
   (2) A preparation room equipped with a sanitary flooring and
necessary drainage and ventilation and containing necessary
instruments and supplies for the preparation, sanitation, or
embalming of human remains for burial or transportation.
   (b) Licensed funeral establishments under common ownership or by
contractual agreement within close geographical proximity of each
other shall be deemed to be in compliance with the requirements of
paragraph (1) or (2) of subdivision (a) if at least one of the
establishments has a room described in those paragraphs.
   (c) Except as provided in Section 7609, and except accredited
 embalming schools and colleges   mortuary
science programs  engaged in teaching students the art of
embalming, no person shall operate or maintain or hold himself or
herself out as operating or maintaining any of the facilities
specified in paragraph (2) of subdivision (a), unless he or she is
licensed as a funeral director.
   (d) Nothing in this section shall be construed to require a
funeral establishment to conduct its business or financial
transactions at the same location as its preparation or storage of
human remains.
   (e) Nothing in this chapter shall be deemed to render unlawful the
conduct of any ambulance service from the same premises as those on
which a licensed funeral establishment is conducted, including the
maintenance in connection with the funeral establishment of garages
for the ambulances and living quarters for ambulance drivers.
   (f) Every funeral establishment holding a funeral director's
license on December 31, 1996, shall, upon application and payment of
fees for renewal of its funeral director's license, be issued a
funeral establishment license.
  SEC. 25.  Section 7641 of the Business and Professions Code is
amended to read:
   7641.  It is unlawful for any person to embalm a body, or engage
in, or hold himself or herself out as engaged in practice as an
embalmer, unless he or she is licensed by the bureau. However, this
section shall have no effect on students and instructors of embalming
in  embalming colleges   mortuary science
programs  approved by the bureau.
  SEC. 26.  Section 7643 of the Business and Professions Code is
amended to read:
   7643.  In order to qualify for a license as an embalmer, the
applicant shall comply with all of the following requirements:
   (a) Be over 18 years of age.
   (b) Not have committed acts or crimes constituting grounds for
denial of licensure under Section 480. 
   (c) Furnish proof showing completion of a high school course or
instead he or she may furnish the bureau with evidence that he or she
has been licensed and has practiced as an embalmer for a minimum of
three years within the seven years preceding his or her application
in any other state or country and that the license has never been
suspended or revoked for unethical conduct.  
   (d) 
    (c)  Have completed at least two years of apprenticeship
under an embalmer licensed and engaged in practice as an embalmer in
this state in a funeral establishment which shall have been approved
for apprentices by the bureau and while so apprenticed shall have
assisted in embalming not fewer than 100 human remains; provided,
however, that a person who has been licensed and has practiced as an
embalmer for a minimum of three years within the seven years
preceding his or her application in any other state or country and
whose license has never been suspended or revoked for unethical
conduct shall not be required to serve any apprenticeship in this
state. 
   (e) 
    (d)  Have  successfully completed a course of
instruction of not less than one academic year in an embalming school
  graduated from a mortuary science program 
approved by the bureau and accredited by the American Board of
Funeral Service Education  , or its equivalent, as determined by
the bureau, and furnish o   fficial transcripts from that
program or equivalent  .
  SEC. 27.  Section 7646 of the Business and Professions Code is
amended to read:
   7646.   (a)    The bureau shall require the
applicant to pass  an examination, which shall include the
following subjects   both of the following  : 
   (1) The funeral service sciences section of the national
examination administered by the International Conference of Funeral
Service Examining Boards, or its equivalent, as determined by the
bureau.  
   (a) Theory and practice of embalming.  
   (b) Anatomy, including histology, embryology and dissection.
 
   (c) Pathology and bacteriology.  
   (d) Hygiene, including sanitation and public health. 

   (e) Chemistry, including toxicology.  
   (f) Restorative art, including plastic surgery and demisurgery.
 
   (g) Laws, 
    (2)     An examination, administered by the
bureau, on the state's laws and the  rules and regulations of
the bureau, including those sections of the Health and Safety Code
which pertain to the funeral industry. 
   (b) An applicant who has previously passed the funeral services
sciences section of the national examination described in paragraph
(1) of subdivision (a) in another state shall be deemed to be in
compliance with that paragraph.  
   (c) An applicant who has previously failed the examination
administered by the bureau prior to the operative date of this
section may, until June 30, 2010, retake that examination. If the
applicant passes that examination, he or she shall be deemed to be in
compliance with this section. 
  SEC. 28.  Section 7647 of the Business and Professions Code is
amended to read: 
   7647.  The bureau shall examine applicants for embalmer's licenses
at least once annually.Examinations 
    7647.    Examinations  shall be  held
  administered  at  such  times
and places  as may be  determined by the bureau 
and the International Conference of Funeral Service Examining 
 Boards  . 
   Notice 
    The bureau shall give notice  of the time and place of
 such examinations shall be given as determined by the bureau
  the examination described in paragraph   (2)
of subdivision (a) of Section 7646  .
  SEC. 29.  Section 7662 of the Business and Professions Code is
amended to read:
   7662.  In order to qualify as an apprentice embalmer, an applicant
shall comply with all of the following requirements:
   (a) Be over 18 years of age.
   (b) Not have committed acts or crimes constituting grounds for
denial of licensure under Section 480.
   (c)  Furnish   Do one of the following: 

    (1)     Furnish  proof showing
completion of a high school course  or instead he or she may
furnish   . 
    (2)     Furnish  the bureau with
evidence that he or she has been licensed and has practiced as an
embalmer for a minimum of three years within the seven years
preceding his or her application in any other state or country and
that the license has never been suspended or revoked for unethical
conduct. 
   (3) Have graduated from a mortuary science program approved by the
bureau and accredited by the American Board of Funeral Service
Education, or its equivalent, as determined by the bureau, and
furnish official transcripts from that program or equivalent. 
  SEC. 30.  Section 7665 of the Business and Professions Code is
amended to read:
   7665.  All registered apprentice embalmers shall comply with the
following requirements during their period of apprenticeship:
   (a) Shall file a report of apprenticeship as follows:
   (1) On or before January 15 of each year covering the period of
apprenticeship ending as of December 31 preceding.
   (2) Upon change of supervising embalmer or employer, or both.
   (3) Upon completion of apprenticeship.
   (4) Upon application for leave of absence for a period in excess
of 15 days.
   (5) Upon suspending apprenticeship to attend  embalming
college   a mortuary science program  .
   (6) Upon application for reregistration after suspension or
revocation of registration if a complete report of previous
registration has not been filed.
   (b) The information contained in the report shall consist of a
concise summary of the work done by the apprentice during the period
covered thereby, shall be verified by the apprentice and certified to
as correct by his or her supervising embalmer and employer. Upon
request of the bureau, each funeral director in whose establishment
an apprenticeship is being, or has been, served, and each embalmer
under whose instruction or supervision an apprenticeship is being or
has been served, shall promptly file with the bureau a report or such
other information as may be requested relating to the
apprenticeship. Failure to comply with the request is cause for
revocation by the bureau of the approval granted to the funeral
director or embalmer for the training of apprentices and is also a
cause for disciplinary action against the funeral
                       director or embalmer.
  SEC. 31.  Section 7666 of the Business and Professions Code is
amended to read:
   7666.  (a) The term of apprenticeship shall be two years. However
if an apprentice after having served his or her apprenticeship fails
to pass the  examination   examinations required
 for an embalmer's license he or she may continue for one
additional term of apprenticeship, which shall be the maximum
apprenticeship permitted and provided further that an apprentice may,
upon filing an application therefor, be permitted to continue the
apprenticeship for a period not to exceed six months, if approved,
for any of the following reasons:
   (1) While awaiting the processing of applications submitted to the
bureau.
   (2) While awaiting notification of grades of  embalmers'
 examinations  administered by the bureau 
 required under Section 7646  .
   (3) While awaiting the commencement of a class of  an
embalming school or college   a mortuary science program
 when the apprentice intends to enroll in the  school
or college   program  .
   Applications filed for an extension of apprenticeship shall be
filed by the applicant with the bureau not fewer than 15 days prior
to the date the applicant requests the extension to commence.
   (b) Terms of apprenticeship may be served before, after, or
divided by the  embalming college course  
mortuary science program  at the option of the apprentice;
provided, however, that the term of apprenticeship must be completed,
excluding time spent in active military service, within six years
from the date of original registration, or from the date an
apprentice successfully passes the  examination 
 examinations  for an embalmer's license required in Section
7646  of this code  , whichever first occurs, and
provided further that if the term of apprenticeship is not completed
within the six-year period, the bureau may require that the applicant
serve the additional term of apprenticeship, not to exceed two
years.
   (c) A student attending  an embalming college 
 a mortuary science program  may register as an apprentice
during  his or her college   the program 
term but shall receive no credit for apprenticeship on the term
required by this code unless he or she is also a full-time employee
of a funeral director.
   (d) An apprentice while serving his or her required term of
apprenticeship shall be a full-time employee in the funeral
establishment in which he or she is employed.
  SEC. 32.  Section 7671 of the Business and Professions Code is
amended to read:
   7671.  No person who is a duly registered apprentice or a student
at an approved  embalming school   mortuary
science program  in California at the time of any amendment to
this chapter raising the requirements for apprentice embalmers or
license as an embalmer, shall be required to comply with the
provisions of such amendment.
  SEC. 33.  Section 7725.5 of the Business and Professions Code is
amended to read:
   7725.5.  A license which is not renewed within five years after
its expiration may not be renewed, restored, reissued, or reinstated
thereafter. The holder of the expired license may obtain a new
license only if the holder pays all of the fees, and meets all of the
requirements, other than requirements relating to education, set
forth in this chapter for obtaining an original license, except that
the bureau may issue a new license to the holder without  an
 examination if the holder establishes to the bureau's
satisfaction that, with due regard for the public interest, the
holder is qualified to engage in the activity in which the holder
again seeks to be licensed. The bureau may, by appropriate
regulation, provide for the waiver or refund of all or any part of
the application fee in those cases in which a license is issued
without  an  examination under this section.
   The provisions of this section do not apply to certificates of
apprenticeship.
  SEC. 34.  Section 7729 of the Business and Professions Code is
amended to read:
   7729.  The amount of the fees prescribed by this chapter shall be
fixed according to the following schedule with the minimum amount
specified being the amount fixed on January 1, 1988.
   (a) The application fee for a funeral director's license shall be
not less than one hundred dollars ($100) and not more than two
hundred dollars ($200).
   (b) The application fee for change of location of a funeral
establishment's license shall be not less than one hundred fifty
dollars ($150) and not more than two hundred fifty dollars ($250).
   (c) The application fee for permission to assign a funeral
establishment's license shall be not less than two hundred dollars
($200) and not more than three hundred dollars ($300).
   (d) The license renewal fee payable by a licensed funeral director
shall be not less than one hundred dollars ($100) and not more than
two hundred dollars ($200). The fee for a delinquent renewal of a
funeral director's license shall be 150 percent of the timely renewal
fee.
   (e) The application fee for an embalmer's license and the
examination  on the state's laws required under paragraph (2) of
subdivision (a) of Section 7646  for the license shall be not
less than one hundred dollars ($100) and not more than one hundred
fifty dollars ($150).
   (f) The renewal fee payable by a licensed embalmer shall be not
less than seventy-five dollars ($75) and not more than one hundred
twenty-five dollars ($125). The fee for a delinquent renewal of an
embalmer's license shall be 150 percent of the timely renewal fee.
   (g) The application fee for a certificate of registration as an
apprentice embalmer shall be not less than thirty dollars ($30) and
not more than sixty dollars ($60).
   (h) The fee for an application by a funeral establishment for
approval to train apprentice embalmers and for renewal of that
approval shall be not less than fifty dollars ($50) and not more than
one hundred dollars ($100).
   (i) The application fee for a funeral director's examination shall
be not less than seventy-five dollars ($75) and not more than one
hundred dollars ($100).
   (j) The fee for a timely filing of an individual report or a
combined report on preneed trust funds shall be not less than one
hundred dollars ($100) and not more than two hundred dollars ($200).
The fee for a late filing of any report on preneed trust funds shall
be 150 percent of the applicable timely fee.
   (k) The application fee for permission to change the name
appearing on a funeral establishment's license shall be not less than
one hundred dollars ($100) and not more than two hundred dollars
($200), and for permission to change the name on any other license or
certificate, not less than twenty dollars ($20) and not more than
forty dollars ($40).
   () The application fee for a duplicate funeral director's license,
a duplicate funeral establishment's license, a duplicate embalmer's
license, or a duplicate certificate of registration as an apprentice
embalmer, shall be not less than twenty dollars ($20) and not more
than forty dollars ($40).
   (m) The fee for filing a report of a change of corporate officers,
managers, or preneed trust fund trustees shall be not less than
twenty-five dollars ($25) and not more than fifty dollars ($50).
   (n) The application fee for a funeral establishment license shall
be not less than three hundred dollars ($300) and not more than four
hundred dollars ($400).
   (o) The license renewal fee for a licensed funeral establishment
shall be not less than three hundred dollars ($300) nor more than
four hundred dollars ($400).
  SEC. 35.  Section 9884.2 of the Business and Professions Code is
amended to read:
   9884.2.  Upon receipt of the form properly filled out and receipt
of the required fee, the director shall  validate 
 issue  the registration and send a proof of  such
validation   issuance  to the automotive repair
dealer. The director shall by regulation prescribe conditions
 , which  that  he  or she 
determines are necessary to insure future compliance with this
chapter, upon which a person, whose registration has previously been
 invalidated   revoked  or has previously
been  refused validation   denied  or who
has committed acts prohibited by Section 9884.7 while an automotive
repair dealer or mechanic or while an employee, partner, officer or
member of an automotive repair dealer, may have his  or her 
registration  validated   issued  .
  SEC. 36.  Section 9884.7 of the Business and Professions Code is
amended to read:
   9884.7.  (a) The director, where the automotive repair dealer
cannot show there was a bona fide error, may  refuse to
validate   deny  , or may  invalidate
temporarily or permanently,   suspend, revoke, or place
on probation  the registration of an automotive repair dealer
for any of the following acts or omissions related to the conduct of
the business of the automotive repair dealer, which are done by the
automotive repair dealer or any automotive technician, employee,
partner, officer, or member of the automotive repair dealer.
   (1) Making or authorizing in any manner or by any means whatever
any statement written or oral which is untrue or misleading, and
which is known, or which by the exercise of reasonable care should be
known, to be untrue or misleading.
   (2) Causing or allowing a customer to sign any work order that
does not state the repairs requested by the customer or the
automobile's odometer reading at the time of repair.
   (3) Failing or refusing to give to a customer a copy of any
document requiring his or her signature, as soon as the customer
signs the document.
   (4) Any other conduct which constitutes fraud.
   (5) Conduct constituting gross negligence.
   (6) Failure in any material respect to comply with the provisions
of this chapter or regulations adopted pursuant to it.
   (7) Any willful departure from or disregard of accepted trade
standards for good and workmanlike repair in any material respect,
which is prejudicial to another without consent of the owner or his
or her duly authorized representative.
   (8) Making false promises of a character likely to influence,
persuade, or induce a customer to authorize the repair, service, or
maintenance of automobiles.
   (9) Having repair work done by someone other than the dealer or
his or her employees without the knowledge or consent of the customer
unless the dealer can demonstrate that the customer could not
reasonably have been notified.
   (10) Conviction of a violation of Section 551 of the Penal Code.
   Upon  refusal to validate   denying  a
registration, the director shall notify the applicant thereof, in
writing, by personal service or mail addressed to the address of the
applicant set forth in the application, and the applicant shall be
given a hearing under Section 9884.12 if, within 30 days thereafter,
he or she files with the bureau a written request for hearing,
otherwise the  refusal   denial  is deemed
affirmed.
   (b) Except as provided for in subdivision (c), if an automotive
repair dealer operates more than one place of business in this state,
the director pursuant to subdivision (a) shall only 
invalidate temporarily or permanently   suspend, revoke,
or place on probation  the registration of the specific place
of business which has violated any of the provisions of this chapter.
This violation, or action by the director, shall not affect in any
manner the right of the automotive repair dealer to operate his or
her other places of business.
   (c) Notwithstanding subdivision (b), the director may 
invalidate temporarily or permanently,   suspend,
revoke, or pl   ace on probation  the registration for
all places of business operated in this state by an automotive repair
dealer upon a finding that the automotive repair dealer has, or is,
engaged in a course of repeated and willful violations of this
chapter, or regulations adopted pursuant to it.
  SEC. 37.  Section 9884.12 of the Business and Professions Code is
amended to read:
   9884.12.  All proceedings to  refuse to validate, or
temporarily or permanently to invalidate,   deny,
suspend, revoke, or place on probation  a registration shall be
conducted pursuant to Chapter 5 (commencing with Section 11500), Part
1, Division 3, Title 2 of the Government Code.
  SEC. 38.  Section 10146 of the Business and Professions Code is
amended to read:
   10146.  Any real estate broker who contracts for or collects an
advance fee from any other person, hereinafter referred to as the
"principal," shall deposit any such amount or amounts, when collected
in a trust account with a bank or other recognized depository. Such
funds are trust funds and not the funds of the agent. Amounts may be
withdrawn therefrom for the benefit of the agent only when actually
expended for the benefit of the principal or five days after the
verified accounts mentioned hereinafter have been mailed to the
principal. Upon request of the commissioner, a broker shall furnish
to the commissioner an authorization for examination of financial
records of the trust account in accordance with the procedures set
forth in Section 7473 of the Government Code.
   The commissioner may issue such rules and regulations as he 
or she  deems necessary to regulate the method of accounting,
and to accomplish the purpose of the provisions of this code relating
to advance fees including, but not limited to, establishing forms
for and determining information to be included in such accountings.
Each principal shall be furnished a verified copy of such accountings
at the end of each calendar quarter and when the contract has been
completely performed by the licensee. The  Real Estate
Commissioner   commissioner  shall be furnished a
verified copy of any account or all accounts on his  or her 
demand therefor.
   Where advance fees actually paid by or on behalf of any principal
are not handled in accordance with the preceding paragraph, it shall
be presumed that the agent has violated Sections 506 and 506a of the
Penal Code. The principal may recover treble damages for amounts so
misapplied and shall be entitled to reasonable attorneys' fees in any
action brought to recover the same.
  SEC. 39.  Section 44017.3 of the Health and Safety Code is amended
to read:
   44017.3.  (a)  Each   The department shall
provide a licensed  smog check station  shall have
  with a sign informing customers about options when
their vehicle fails a biennial smog check inspection, including, but
not limited to, the option for qualified consumers to retire
vehicles, receive repair assistance, or obtain repair cost waivers.
The sign shall include the department's means of contact, including,
but not limited to, its telephone number and Internet Web site. 
 This sign shall be  posted conspicuously in an area
frequented by customers a sign advising of the minimum or
maximum amounts established by law to be spent on repairs required to
cause a motor vehicle to pass a smog check  . The sign
shall be required in all  licensed smog check  stations
 where smog check inspections are performed. In stations
where licensed smog check technician repairs are not performed, the
station shall have posted conspicuously in an area frequented by
customers a statement that repair technicians are not available and
repairs are not performed  . 
   (b) The specific amounts enumerated on the sign shall be
consistent with Section 44017 and shall also refer to the exceptions
in subdivision (d) of Section 44017.  
   (c) The sign shall include language, as determined by the
department, to warn consumers of the penalties for obtaining a
certificate or economic hardship extension by means of fraud.
 
   (b) In stations where licensed smog check technician repairs are
not performed, the station shall have posted conspicuously in an area
frequented by customers a statement that repair technicians are not
available and repairs are not performed. 
  SEC. 40.  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.