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Architects
AB 2914
Among other things, extends the sunset date of January
1, 2007 for architecture limited liability partnerships (LLP)
and foreign LLPs to
January 1, 2012.
Contractors
AB 881
Requires all roofing contractors to have workers' compensation
insurance, whether or not having current employees.
All 6,000
licensees with an active Roofing (C-39) classification must
have on
file with the Contractor State License Board ("CSLB") by
January 1, 2007, either a valid certification of Workers'
Compensation Insurance or a valid Certification of Self Insurance.
Failure to have one of the required certifications on file
with the CSLB will result in: (1) the removal of the Roofing
( C-39) classification from a license with multiple classifications
and/or (2) the suspension of a license where the sole classification
is the Roofing (C-39) classification.
No exemptions to the
Workers' Compensation Insurance requirement will be granted
effective January 1, 2007.
Inactive roofing (C-39) contractors
will not be subject to this requirement as long as their
license remains inactive. In order to return
to active status, the contractor must obtain Workers' Compensation
Insurance and provide the required certification to the CSLB.
AB
881 also adds Section 11665 to the Insurance Code, requiring
insurers who issue workers' compensation insurance to Roofing
(C-39) contractors
to provide an annual payroll audit for the contractor. The
insurer may impose a surcharge on the policy holder for the
audit. The new workers' compensation insurance requirements
imposed by AB881 will remain in effect until January 1, 2011
AB
2073
Exempts the sale, installation, and servicing of a fire
alarm, sold in conjunction
with a security alarm system, from the home improvement contract
requirement if the cost of making the fire alarm operable
does not exceed $500.00, and other conditions are satisfied.
AB
2455
Increases the amount of money a person can seek in small
claims court from $4,000
to $7,500 against a contractor who posts a cash deposit.
This change brings the jurisdictional limit for these actions
into conformity with 2005 legislation that increased other
small claims court jurisdictional limits brought by natural
persons to $7,500.
AB 2456
Prohibits the personnel of a contractor whose license
is suspended due to outstanding liabilities, from serving
as certain types of personnel for
another licensee, and makes employment of such an individual,
in certain capacities, cause for license suspension.
Amended
California Business and Professions Code Section 714.5 defines
final liabilities as taxes, additions to tax, penalties,
interest
on any fees that may be assessed by the Contractor's State
License Board, the Department of Industrial Relations, the
Employment Development Department, or the Franchise Tax Board.
Until the debts covered by this section are satisfied, the
qualifying person and any other person of record named on
a license that has been suspended under this section shall
be prohibited from serving in any capacity that is subject
to licensure under this chapter, but shall remain suspended
until the debt has been satisfied or until the personnel
of record with the outstanding liabilities disassociates
themselves from the renewable licensed entity.
AB 2457
Exempts from registration as a home improvement sales
person a general partner on the license record of a partnership,
and clarifies that
certain individuals exempt from registering as home improvement
sales persons, must be listed as personnel of record for
the licensee responsible for soliciting, negotiating, or
contracting for a service or improvement that is subject
to regulation, at the time of the sales transaction.
AB 2457
amends California Business and Professions Code Section 7152.
AB
2658
Provides that in order for a contractor's license to
be issued, reinstated, or
reissued, satisfaction of monetary obligation or debt is
required only to the extent that those obligations were not
discharged, rather than adjudicated, in a bankruptcy proceeding
and requires licensees to satisfy all their obligations to
the extent that those obligations are not discharged under
federal law.
AB 2658 amends California Business Professions
Code Section 7713.5.
AB 2897
Prohibits a person of record of a revoked license,
who meets specified criteria, from performing acts regulated
by the Contractor State License
Law, for a licensee, except as a bona fide non-supervising
employee, and makes it a misdemeanor to violate this section,
or for someone to knowingly hire an individual who meets
the specified criteria, in any position other than a bona
fide non-supervising employee.
The specified criteria are:
- The individual is a member, officer,
director, owner, or partner of a license that was revoked.
- The
individual had knowledge of or participated in any
act or omission for which the license was revoked.
- The
individual is not eligible for reinstatement of licensure
under Section 7102.
In addition, an individual who:
1) furnished the qualifications for licensure, as
set forth under Section 7068, and that license
was revoked; and 2) the individual served in the
capacity of a qualifying
individual during the commission or omission
of any of the acts that resulted in the revocation
of the
license
(whether
or not he or she had knowledge of or participated
in those
acts), shall not perform acts regulated by
the Contractor's
State License Law except as a bona fide non-supervisory
employee. Violation of this section is a misdemeanor
and is punishable
by a fine of not less than $4,500, by imprisonment
in the county jail for not less than ninety days
and no more that
one year or by both fine and imprisonment.
AB
2897 adds a new Section 7121.6 to the California Business
and Professions Code.
Discrimination
SB 1441
Adds sexual orientation
to existing classifications protected from discrimination
by recipients of state funds and expands
the definition
of discrimination to include the perception
that the victim is a member of a protected class.
While
sexual orientation discrimination has long been prohibited
in employment, SB 1441 adds "sexual orientation" to existing
law that prohibits discrimination in the conduct
or
operation of state-funded
programs and activities. The new law applies
to any program operated or funded by the state,
or
that receives any financial
assistance from the state, such as workers'
compensation and paid family leave.
Health and
Safety
AB 2067
Extends
and clarifies the prohibition on smoking in
the workplace. The California Smoke Free Workplace
Act of
1994 prohibits smoking in public
buildings and in all enclosed places of employment.
This law specifically excluded covered parking
lots, including
common areas such as lobbies, lounges, waiting
areas, elevators, stairwells and restrooms.
It also defines "enclosed places
of employment" to include the above listed
common areas.
SB 1613
Establishes the California Wireless Telephone Act
that as of July 1, 2008, limits the use of cell phones while
driving
to those having hands-free
operation except for contacts with law enforcement
and public safety agencies and certain commercial
vehicles for whom
the effective date is July 1, 2011.
Until July1,
2011, this prohibition does not apply to a person driving
a motor truck or truck tractor, an agricultural vehicle,
tow truck, or a commercial vehicle, when using
a digital 2-way radio
service that utilizes a wireless telephone
that operates by depressing a push-to-talk
feature as
long as it does not
require immediate proximity to the user's ear.
The
law does not apply to a person driving a school bus or transit
vehicle that is subject to certain existing wireless telephone
usage restrictions, or to a person while driving
a motor vehicle on private property.
AB 2977
This new law extends the safety requirements for construction of new pools (or remodeling of existing pools)
to spas.
Furthermore, this
law changes what is acceptable for the safety
features. This law also adds a new disclosure
requirement
to be given to
consumers by contractors/builders when obtaining
a permit to work on a pool or spa.
Prior law
required certain safety features whenever a building permit
is issued for construction of a new swimming pool at
a private, single-family house. Such pools
must have one of
the following five features:
- A pool enclosure;
- A safety pool
cover;
- Exit alarms on doors providing
direct access to the
pool;
- Self-closing, self-latching device
with a release mechanism
on doors providing direct access
to the pool; or
- Other means of
protection, if the degree of
protection is equal or greater than any of the four previously
specified
devices.
Under the new law, the
safety feature provision would be applicable to construction of a new pool or spa, or
remodeling to a pool or spa (when permit is required).
For
spas,
items
(1) and (2) must have
locking feature. Furthermore,
two additional safety measures
are allowed:
- Removable mesh
fencing meeting standards
of the American Society
for Testing and Materials ("ASTM");
or
- Swimming pool alarms
meeting ASTM standards.
In
addition this law requires that the building inspectors
ensure that the standards are met
and that the safety feature is working
correctly
before approving
the permit.
The
consumer notice required under prior law that must be given
when constructing new pools is now
required for new spas, and on
work on pools
or spas requiring a permit. This law also updates
the backup
safety systems
(e.g., suction outlets are to have anti-entrapment
covers),
and requires
the Building
and Standards
Commission to update the building
code for swimming pools and spas
by January
1, 2010. This
law amends
California Health
and Safety Code Sections 115922, 115924
and 11528.
Landlord/Tenant
AB
1169
This law
re-establishes
the sixty
(60) day notice which is required by landlords
to give to residential
tenants
on periodic leases (e.g month-to-month lease) when the tenants have
been living in
the property for at least one year.
This law
maintains
the exception
of a thirty (30) day
notice for certain qualifying
properties for sale.
Prior law required thirty
(30) days notice
for the landlord
or the tenant
to terminate
a month-to-month
tenancy.
AB 1169 adds
California Civil Code Section
1946.1 which
requires
that a landlord
under a residential
lease provide sixty (60) days notice
to terminate
any periodic
lease,
such as
month-to-month
rental, if all tenants and
residents has been residing in the
property for
less than one year, then
(30) days notice
is sufficient.
Thirty (30) days notice may also be
given when a residential property is being sold if all of
the
seven conditions set forth in Section
1946.1 are
met.
Landscape
Architects
AB 2256
Provides that anyone who offers to
perform professional landscape architect services,
as specified,
must be licensed by
the Landscape Architects
Technical Committee.
Miscellaneous
AB
2618
Increases
the jurisdictional
limit
in small claims court to $7,500 on certain
issues which
were left unchanged
when general
limits increased from $5,000 to $7,500. This
law conforms
the jurisdictional limit
of a number
of actions
in small claims
court, including some common
interest development actions and landlord/tenant
claims.
The areas
where small claims court jurisdiction was previously limited
to $5,000 and was increased
to $7,500 are the following:
- specified acts of
discrimination, including boycotting, blacklisting,
violence, and
a threat of violence;
- specified enforcement
actions
relating
to common
interest developments
for declaratory, injunctive or writ relief
in conjunction
with monetary damages;
- specified
actions
in landlord-tenant
law;
- a
claim or counterclaim in a class action lawsuit;
- complaints
to the
PUC (Public Utilities Commission)
through its website;
- complaints to
the PUC against electrical,
gas, water, heat or telephone companies;
and
- specified juvenile
law claims against a minor, or a minor's
parent.
Real Estate
SB1052
Changes the
deadline to appeal decisions or actions by an advisory
agency relating
to a
tentative map on
subdivisions that are conversions.
The
Subdivision Map Act prior to being amended by SB 1052, authorized
either
the developer or any tenant in the property to appeal
decisions
or actions by an advisory agency
relating to a tentative map on subdivisions
that are conversions.
Such appeals
were required
to be filed within ten
days of any decision, and then be heard by either the
appeals
board or the legislative body
( if there is no appeals
board) within
thirty (30) days. Under the new law,
if the
legislative body does not have a regularly
scheduled meeting within the
thirty (30) days, then the appeal
can be heard at the next regular
meeting
after the notice of the appeal, so
long as such period does not exceed sixty (60) days.
The
new law restates that each decision
mad by the legislative
body under this section
of the law must be supported
by consistent findings of fact.
This law amends California Government
Code Section 66452.5.
AB 2962
Provides
an alternative to the current California
withholding
tax requirement upon transfer of real property of
paying
three and
one-third
percent of the sale
price on real estate on non-exempt transactions. Under
this
law, if withholding
is required,
the seller can opt to pay the top tier (under corporate
or individual
state
tax
law) on
any recognized
gain on the
sale
of the real
property.
Before amended, the law required the payment
of three and one-third percent as withholding
on the transfers of real
estate on properties
which do not qualify for an exemption.
Some of the
more common
exemptions, among
others provided
in the statute, are:
- Sale of a principal
residence;
- Sale
as part of a 1031 Exchange;
- Loss on the sale
of property;
- Sales price of $100,000
or less; and
- A corporation
with a permanent place
of business in California.
Under the new law, if the
transferor
is not
exempt from withholding
at the
time of
the sale/transfer, the
transferor
can opt
to withhold the maximum
tax rate (under
either
individual
tax rates or corporation tax rates) on the actual
gain
on
the transferred property instead of the three
and one-third percent. Such withholding
would
be done
under
penalty of perjury which would
be subject to the penalty of
the greater of (i)
$500.00
or
(ii) 10% of the amount required to be withheld, in addition
to the withholding plus any
interest, fees and other penalties. This law amends
California Revenue & Taxation
Code Sections 18662
and 18668.
Sexual
Harassment
AB
2095
Limits mandated
sexual harassment
training to
supervisors
located in California.
Before the amendment the law required that
employers train their "supervisory
employees." Questions
arose as
to whether
supervisors
located
outside
of the
State of
California
who
supervise employees
within
the State
of California
were subject
to the
training requirements.
AB
2095 clarifies
that only
supervisors
located
in
California
must
receive the
required training.
State Government
SB 1436
Requires state
agencies to
improve their
communication regarding
regulations
and assistance
with the
business community,
with
an emphasis
on small
business.
Taxation
The IRS
announced that
beginning January
1, 2007,
the standard
mileage rate
for the
use of
a car (including
vans, pickups
or panel
trucks) will
be:
- 48.5
cents per
mile for
business miles
driven
- 20
cents per
mile driven
for
medical
or moving
purposes; and
- 14 cents
per mile
driven in
service to
a charitable
organization
Wages
AB
1835
Increases California's
minimum
wage and
exempt salary
standards for
all California
employers. This
law increases
the California
minimum wage
to $7.50
per hour
on January
1, 2007
and to
$8 per
hour on
January 1,
2008.
AB 2095
Permits reporting
of overtime
hours on
the same
payroll date
as the
hours are
paid when
overtime is
paid in
the payroll
period subsequent
to the
one in
which it
is earned.
AB 2095 amends
Labor Code
Section 204, which specifies
the periods required
for
payment
of
wages. Prior
to AB
2095 Labor
Code Section
204 required
that all
wages earned
by an
employer are
due and
payable twice
each calendar
month on
days designated
by the
employer but
that, "wages
earned
in
excess
of
the normal
work period
may be
paid
no
later than
the next
consecutive
pay
day." This
statute
is
inconsistent with
Labor Code
Section
226(a) which
requires
that
an employer
provides
each
employee
at
the
time of
each
payment
of
wages
an
itemized statement
showing
the
total
hours worked
by the
employee
during
that
pay period.
The
purpose of
AB
2095
is to
reconcile
these
two
conflicting
requirements. An
employer is
in compliance
with
Labor Code
Section
226(a) if
overtime
hours
worked in
a
current pay
period,
but
paid in
a
next
consecutive
period,
are itemized
as
corrections
on the
paystub
for
the
next
regular
pay
period.
AB
2095 also
requires
that such
correction
include the
inclusive
dates
of
the
pay
period
for which
the employer
is
correcting
its initial
report
of hours
worked.
Wage Deduction
AB 2440
Imposes
a penalty
on
an employer
that
assists an
employee
or contractor
with child
support
obligations
evade
meeting
those
obligations,
including
failure
to file
reports
upon
hiring.
Workers' Compensation
AB
2068
Permits pre-designation
of
a
medical
group
as
the
primary
treating
physician and
extends the
sunset date
of the
right of
predesignation.

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