Existing law, the Contractors State License Law, provides for the licensure and regulation of contractors by the Contractors State License Board. Existing law requires the board, with the approval of the Director of Consumer Affairs, to appoint a registrar of contractors to serve as the executive officer and secretary of the board. Existing law requires an applicant for licensure to qualify in regard to his or her experience depending on whether the applicant is an individual or a business entity. For purposes of the law, existing law defines members of the personnel of record as every person listed in the records of the registrar as then associated with a licensee. Existing law requires the registrar, among other things, to make available to the public the date, nature, and disposition of all legal actions against a licensee, except as specified. Existing law limits the disclosure of citations to a specified time period.

This bill would require that disclosure of citations also appear, for the period of disclosure of the citation, on the license record of any other license identified as a qualifier who is listed in the members of the personnel of record of the license that was issued the citation.

Existing law, the Contractors State License Law, provides for the licensure and regulation of contractors by the Contractors State License Board. Existing law requires the board, with the approval of the Director of Consumer Affairs, to appoint a registrar of contractors to serve as the executive officer and secretary of the board. Existing law requires an applicant for licensure to qualify in regard to his or her experience depending on whether the applicant is an individual or a business entity. For purposes of the law, existing law defines members of the personnel of record as every person listed in the records of the registrar as then associated with a licensee. Existing law requires the registrar, among other things, to make available to the public the date, nature, and disposition of all legal actions against a licensee, except as specified. Existing law limits the disclosure of citations to a specified time period.

This bill would require that disclosure of citations also appear, for the period of disclosure of the citation, on the license record of any other license identified as a qualifier who is listed in the members of the personnel of record of the license that was issued the citation.

Existing law, the Contractors State License Law, provides for the licensure and regulation of contractors by the Contractors State License Board. Existing law requires the board, with the approval of the Director of Consumer Affairs, to appoint a registrar of contractors to serve as the executive officer and secretary of the board. Existing law requires an applicant for licensure to qualify in regard to his or her experience depending on whether the applicant is an individual or a business entity. For purposes of the law, existing law defines members of the personnel of record as every person listed in the records of the registrar as then associated with a licensee. Existing law requires the registrar, among other things, to make available to the public the date, nature, and disposition of all legal actions against a licensee, except as specified. Existing law limits the disclosure of citations to a specified time period.

This bill would require that disclosure of citations also appear, for the period of disclosure of the citation, on the license record of any other license that was issued, or was associated with the license subject to the citation, on or after the date of the act or omission that led to the citation and the other license includes a member of the personnel of record who, at the time that the act or omission occurred that led to the citation, was identified as a qualifier of the license subject to the citation. identified as a qualifier who is listed in the members of the personnel of record of the license that was issued the citation.

Existing law, the Contractors State License Law, provides for the licensure and regulation of contractors by the Contractors State License Board. Existing law requires the board, with the approval of the Director of Consumer Affairs, to appoint a registrar of contractors to serve as the executive officer and secretary of the board. Existing law requires the registrar, among other things, to make available to the public the date, nature, and disposition of all legal actions against a licensee, except as specified. Existing law limits the disclosure of citations to a specified time period.

This bill would require that disclosure of citations also appear, for the period of disclosure of the citation, on the license record of any other license that was issued, or was associated with the license subject to the citation, on or after the date of the act or omission that led to the citation and the other license includes a member of the personnel of record who, at the time that the act or omission occurred that led to the citation, was identified as a qualifier of the license subject to the citation.

Date of Hearing: June 29, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 1209

Author:(Morrell) – As Amended Ver:April 6, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill provides that citations issued against a licensed contractor follow the contractor if he or she is issued another license, and authorizes the disclosure of these citations within existing disclosure timeframes.

FISCAL EFFECT:

Negligible state fiscal impact.

COMMENTS:

1. Purpose. According to the author, “This bill is a common sense consumer protection bill that closes a loophole in current law. Presently, the Contractors State License Board (CSLB) requires contractors to publicly disclose any citation they have received within the past five years. However, if a contractor obtains a new license, the citation does not follow them, allowing bad actors to hide from consumers any citations they may have received. This bill closes that loophole, providing for greater consumer confidence.”

The bill is sponsored by CSLB and is intended to enhance the disclosure to the public regarding contractors who have been disciplined by CSLB.

1. Background. Current law limits disclosure of a citation only to the license subject to a complaint substantiating that citation. Once that citation is disclosed, existing law does not extend that disclosure to licenses obtained or joined by persons thereafter. This bill requires that these disclosures follow the person to whom the citation was noticed so that they also appear on the license record of any other license he or she files.

The CSLB licenses approximately 300,000 contractors in 44 license classifications and two certifications. A license may be issued to an individual, partnership, corporation, limited liability company, or joint venture. All licenses must have a qualifying individual listed on CSLB records who satisfies the experience and examination requirements for a license. The same person may serve as the qualifier for more than one classification.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: June 14, 2016

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Rudy Salas, Chair

SBPCA Bill Id:SB 1209

Author:(Morrell) – As Amended Ver:April 6, 2016

SENATE VOTE: 37-0

SUBJECT: Contractors: discipline

SUMMARY: Provides that citations issued against a licensed contractor follow the contractor if he or she is issued another license and authorizes the disclosure of these citations within existing disclosure timeframes.

EXISTING LAW:

1. Establishes the Contractors State License Board (CSLB) within the Department of Consumer Affairs (DCA) to implement and enforce the Contractors State License Law (CSLL); the laws and regulations related to the licensure, practice and discipline of the construction industry in California. All businesses and individuals who construct or alter, or offer to construct or alter, any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the CSLB if the total cost (labor and materials) of one or more contracts on the project is $500 or more. (Business and Professions Code (BPC) Section 7000, et seq.)
2. Requires that citations be disclosed from the date of issuance and for five years after the date of compliance if no additional disciplinary actions have been filed against the licensee during the five-year period. If additional disciplinary actions were filed against the licensee during the five-year period, all disciplinary actions are required to be disclosed for as long as the most recent disciplinary action is subject to disclosure under the section. At the end of the specified time period, those citations will no longer be disclosed. (BPC Section 7124.6 (e)(1))
3. Requires that accusations that result in suspension, stayed suspension, or stayed revocation of the contractor’s license be disclosed from the date the accusation is filed and for seven years after the accusation has been settled, including the terms and conditions of probation if no additional disciplinary actions have been filed against the licensee during the seven-year period. If additional disciplinary actions were filed against the licensee during the seven-year period, all disciplinary actions will be posted for as long as the most recent disciplinary action is subject to disclosure under this section. At the end of the specified time period, those accusations will no longer be disclosed. (BPC Section 7124.6 (e)(2))

THIS BILL:

1. Requires that any disclosure pursuant to BPC Section 7124.6(e) also appear on the license record of any other license that includes a qualifier that is listed on the personnel of record of the license that was issued the citation.
2. Extends existing disclosure timeframes to this requirement.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, this bill will result in negligible state costs.

COMMENTS:

Purpose. This bill is sponsored by the Contractors State License Board. This bill provides that citations issued against a licensed contractor follow the contractor if he or she is issued another license and authorizes the disclosure of these citations within existing disclosure timeframes.

According to the author, “[This bill] is a common sense consumer protection bill that closes a loophole in current law. Presently, the [CSLB] requires contractors to publicly disclose any citation they have received within the past five years. However, if a contractor obtains a new license, the citation does not follow them, allowing bad actors to hide from consumers any citations they may have received. This bill closes that loophole, providing for greater consumer confidence.”

Background. The CSLB licenses approximately 300,000 contractors in 44 license classifications and two certifications. A license may be issued to an individual, partnership, corporation, limited liability company, or joint venture. All licenses must have a qualifying individual (also referred to as “qualifier”). A qualifying individual is the person listed on CSLB records who satisfies the experience and examination requirements for a license. Depending on the type of license, the qualifying individual must be designated as an owner, responsible managing employee, responsible managing officer, responsible managing manager, responsible managing member, or qualifying partner in the license records. A qualifying individual is required for every classification and on each license issued by CSLB; the same person may serve as the qualifier for more than one classification. The Board also registers some 9,600 home improvement salespersons who are engaged in the sale of home improvement goods and services.

Disclosure. Current law limits disclosure of a citation only to the license subject to a complaint substantiating that citation. Once that citation is disclosed, existing law does not extend that disclosure to licenses obtained or joined by persons thereafter. This bill requires that these disclosures follow the person to whom the citation was noticed so that they also appear on the license record of any other license he or she files.

ARGUMENTS IN SUPPORT:

The Contractors State License Board writes in support, “[This bill] furthers the public protection goal of existing law, by enhancing the disclosure to the public regarding contractors who have been discipline by CSLB.”

REGISTERED SUPPORT:

Contractors State License Board (sponsor)

REGISTERED OPPOSITION:

None on file.

Analysis Prepared by: Gabby Nepomuceno / B. & P. / (916) 319-3301

 THIRD READING  

Bill No: SB 1209

Author:

:

Vote:

SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 8-0, 4/11/16

AYES: Hill, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski

NO VOTE RECORDED: Bates

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT:

SOURCE: Contractors State License Board

DIGEST: This bill provides that citations issued against a licensed contractor follow the contractor if issued another license, and authorizes the disclosure of these citations within existing disclosure timeframes.

ANALYSIS:

Existing law:

1. Provides for the licensure and regulation of more than 300,000 contractors under the Contractors State License Law (Contractors Law) by the Contractors State License Board (CSLB) within the Department of Consumer Affairs. The CSLB is under the direction of the registrar of contractors. (Business and Professions Code (BPC) § 7000 et seq.)
2. Requires that citations be disclosed from the date of issuance and for five years after the date of compliance if no additional disciplinary actions have been filed against the licensee during the five-year period. If additional disciplinary actions were filed against the licensee during the five-year period, all disciplinary actions are required to be disclosed for as long as the most recent disciplinary action is subject to disclosure under the section. At the end of the specified time period, those citations will no longer be disclosed.
   (BPC § 7124.6 (e)(1))
3. Requires that accusations that result in suspension, stayed suspension, or stayed revocation of the contractor’s license be disclosed from the date the accusation is filed and for seven years after the accusation has been settled, including the terms and conditions of probation if no additional disciplinary actions have been filed against the licensee during the seven-year period. If additional disciplinary actions were filed against the licensee during the seven-year period, all disciplinary actions will be posted for as long as the most recent disciplinary action is subject to disclosure under this section. At the end of the specified time period, those accusations will no longer be disclosed.
   (BPC § 7124.6 (e)(2))

This bill:

1. Requires that any disclosure also appear on the license record of any other license that includes a qualifier that is listed on the personnel of record of the license that was issued the citation.
2. Extends existing disclosure timeframes to this requirement.

Background

The CSLB is responsible for implementation and enforcement of the Contractors Law, including the laws and regulations related to the licensure, practice, and discipline of the construction industry in California. All businesses and individuals who construct or alter, or offer to construct or alter, any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the CSLB if the total cost (labor and materials) of one or more contracts on the project is $500 or more.

The CSLB licenses approximately 300,000 contractors in 44 license classifications and two certifications. The CSLB issues some 15,000 licenses each year, and more than 121,000 licenses are renewed each year. A license may be issued to an individual, partnership, corporation, limited liability company, or joint venture. All licenses must have a qualifying individual (also referred to as “qualifier”). A qualifying individual is the person listed on the CSLB records who satisfies the experience and examination requirements for a license. Depending on the type of license, the qualifying individual must be designated as an owner, responsible managing employee, responsible managing officer, responsible managing manager, responsible managing member, or qualifying partner in the license records. A qualifying individual is required for every classification and on each license issued by the CSLB; the same person may serve as the qualifier for more than one classification. The CSLB also registers some 9,600 home improvement salespersons who are engaged in the sale of home improvement goods and services.

The CSLB is the sponsor of this bill. According to the author, “BPC § 7124.6 (e)(1) limits disclosure of a citation only to the license subject to a complaint substantiating that citation. Once that citation is disclosed, BPC § 7124.6 does not extend that disclosure to licenses obtained or joined by persons thereafter.”

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 4/25/16)

Contractors State License Board (source)

California Chapters of the National Electrical Contractors Association

California Legislative Council of the Plumbing

Heating and Piping Industry

Northern California Allied Traders

United Contractors

Wall and Ceiling Alliance

OPPOSITION: (Verified 4/25/16)

California Professional Association of Specialty Contactors

ARGUMENTS IN SUPPORT: The CSLB believes that, “SB 1209 furthers the public protection goal of existing law, by enhancing the disclosure to the public regarding contractors who have been discipline by CSLB.”

ARGUMENTS IN OPPOSITION: The California Professional Association of Specialty Contactors (CPLPASC) writes that “CALPASC appreciates the problem SB 1209 is trying to address, and supports a very targeted solution. Unfortunately, SB 1209 is written too broadly at this time. CALPASC suggests that amendments be made in the bill to limit the disclosure of the citation information only for licenses where the actual license qualifier is involved, and also only where the license holder began applying for a new license after the circumstances giving rise to the potential citation were incurred. If these types of amendments were made to this bill CALPASC would strongly support it.”

Prepared by:

4/27/16 15:57:25

**** END ****

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2015 - 2016 Regular

Bill No: SB 1209 Hearing Date: April 11, 2016

Subject: Contractors: discipline

SUMMARY: Provides that citations issued against a licensed contractor follow the contractor if issued another license; authorizes the disclosure of these citations within existing disclosure timeframes.

Existing law:

1. Provides for the licensure and regulation of more than 300,000 contractors under the Contractors State License Law (Contractors Law) by the Contractors State License Board (CSLB) within the Department of Consumer Affairs (DCA). The CSLB is under the direction of the registrar of contractors (Registrar). (Business and Professions Code (BPC) § 7000 et seq.)
2. Requires that citations be disclosed from the date of issuance and for five years after the date of compliance if no additional disciplinary actions have been filed against the licensee during the five-year period. If additional disciplinary actions were filed against the licensee during the five-year period, all disciplinary actions are required to be disclosed for as long as the most recent disciplinary action is subject to disclosure under the section. At the end of the specified time period, those citations will no longer be disclosed. (BPC § 7124.6 (e)(1))
3. Requires that accusations that result in suspension, stayed suspension, or stayed revocation of the contractor’s license be disclosed from the date the accusation is filed and for seven years after the accusation has been settled, including the terms and conditions of probation if no additional disciplinary actions have been filed against the licensee during the seven-year period. If additional disciplinary actions were filed against the licensee during the seven-year period, all disciplinary actions will be posted for as long as the most recent disciplinary action is subject to disclosure under this section. At the end of the specified time period, those accusations will no longer be disclosed. (BPC § 7124.6 (e)(2))

This bill:

1. Requires that any disclosure also appear on the license record of any other license that includes a qualifier that is listed on the personnel of record of the license that was issued the citation.
2. Extends existing disclosure timeframes to this requirement.

FISCAL EFFECT:

Unknown. This bill is keyed “fiscal” by Legislative Counsel.

COMMENTS:

1. Purpose. The CSLB is the sponsor of the bill. According to the Author, “BPC § 7124.6 (e)(1) limits disclosure of a citation only to the license subject to a complaint substantiating that citation. Once that citation is disclosed, BPC § 7124.6 does not extend that disclosure to licenses obtained or joined by persons thereafter.”
   
   The CSLB believes that, “SB 1209 furthers the public protection goal of existing law, by enhancing the disclosure to the public regarding contractors who have been discipline by CSLB.”
   
2. Background. The CSLB is responsible for implementation and enforcement of the Contractors State License Law, including the laws and regulations related to the licensure, practice, and discipline of the construction industry in California. All businesses and individuals who construct or alter, or offer to construct or alter, any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the Board if the total cost (labor and materials) of one or more contracts on the project is $500 or more.

The Board licenses approximately 300,000 contractors in 44 license classifications and two certifications. CSLB issues some 15,000 licenses each year, and more than 121,000 licenses are renewed each year. A license may be issued to an individual, partnership, corporation, limited liability company, or joint venture. All licenses must have a qualifying individual (also referred to as “qualifier”). A qualifying individual is the person listed on CSLB records who satisfies the experience and examination requirements for a license. Depending on the type of license, the qualifying individual must be designated as an owner, responsible managing employee, responsible managing officer, responsible managing manager, responsible managing member, or qualifying partner in the license records. A qualifying individual is required for every classification and on each license issued by CSLB; the same person may serve as the qualifier for more than one classification. The Board also registers some 9,600 home improvement salespersons who are engaged in the sale of home improvement goods and services.

1. Disclosure Issue. Current law limits disclosure of a citation only to the license subject to a complaint substantiating that citation. Once that citation is disclosed, existing law does not extend that disclosure to licenses obtained or joined by persons thereafter.

By allowing complaints to follow a licensee who may drop an existing license and apply for a new license, CSLB can inform and protect the public by disclosing citations issued to that contractor.

1. Arguments in Opposition. The California Professional Association of Specialty Contactors (CALPASC) writes that “CALPASC appreciates the problem SB 1209 is trying to address, and supports a very targeted solution. Unfortunately, SB 1209 is written too broadly at this time. CALPASC suggests that amendments be made in the bill to limit the disclosure of the citation information only for licenses where the actual license qualifier is involved, and also only where the license holder began applying for a new license after the circumstances giving rise to the potential citation were incurred. If these types of amendments were made to this bill CALPASC would strongly support it.”

SUPPORT AND OPPOSITION:

Support:

Contractors State License Board (Sponsor)

Opposition:

California Professional Association of Specialty Contactors

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2015 - 2016 Regular

Bill No: Hearing Date: April 4, 2016

Subject:

SUMMARY: Provides that citations issued against a licensed contractor follow the contractor if issued another license; authorizes the disclosure of these citations within existing disclosure timeframes.

Existing law:

1. Provides for the licensure and regulation of more than 300,000 contractors under the Contractors State License Law (Contractors Law) by the Contractors State License Board (CSLB) within the Department of Consumer Affairs (DCA). The CSLB is under the direction of the registrar of contractors (Registrar). (Business and Professions Code (BPC) § 7000 et seq.)
2. Requires that citations be disclosed from the date of issuance and for five years after the date of compliance if no additional disciplinary actions have been filed against the licensee during the five-year period. If additional disciplinary actions were filed against the licensee during the five-year period, all disciplinary actions are required to be disclosed for as long as the most recent disciplinary action is subject to disclosure under the section. At the end of the specified time period, those citations will no longer be disclosed. (BPC § 7124.6 (e)(1))
3. Requires that accusations that result in suspension, stayed suspension, or stayed revocation of the contractor’s license be disclosed from the date the accusation is filed and for seven years after the accusation has been settled, including the terms and conditions of probation if no additional disciplinary actions have been filed against the licensee during the seven-year period. If additional disciplinary actions were filed against the licensee during the seven-year period, all disciplinary actions will be posted for as long as the most recent disciplinary action is subject to disclosure under this section. At the end of the specified time period, those accusations will no longer be disclosed. (BPC § 7124.6 (e)(2))

This bill:

1. Expands CSLB’s existing citation disclosure requirements for licensees if the following criteria are met:
   1. The other license was issued, or was associated with the license subject to the citation, on or after the date of the act or omission that led to the issuance of the citation; and
   2. The other license includes a member of the personnel of record who, at the time of the act or omission that led to the issuance of the citation, was identified as a qualifier of the license subject to the citation.
2. Extends existing disclosure timeframes to this requirement.

FISCAL EFFECT:

Unknown. This bill is keyed “fiscal” by Legislative Counsel.

COMMENTS:

1. Purpose. The CSLB is the sponsor of the bill. According to the Author, “BPC § 7124.6 (e)(1) limits disclosure of a citation only to the license subject to a complaint substantiating that citation. Once that citation is disclosed, BPC § 7124.6 does not extend that disclosure to licenses obtained or joined by persons thereafter.”
   
   The CSLB believes that, “this bill extends CSLB’s existing citation disclosure requirements, by requiring the disclosure to additionally appear on a license that was issued, or associated with the license subject to the citation, on or after the act that led to the issuance of the citation, if that other license includes a member of the personnel of record that was identified as a qualifier on the original license when the act that led to the citation occurred.”
   
2. Background. The CSLB is responsible for implementation and enforcement of the Contractors State License Law, including the laws and regulations related to the licensure, practice, and discipline of the construction industry in California. All businesses and individuals who construct or alter, or offer to construct or alter, any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the Board if the total cost (labor and materials) of one or more contracts on the project is $500 or more.

The Board licenses approximately 300,000 contractors in 44 license classifications and two certifications. CSLB issues some 15,000 licenses each year, and more than 121,000 licenses are renewed each year. A license may be issued to an individual, partnership, corporation, limited liability company, or joint venture. All licenses must have a qualifying individual (also referred to as “qualifier”). A qualifying individual is the person listed on CSLB records who satisfies the experience and examination requirements for a license. Depending on the type of license, the qualifying individual must be designated as an owner, responsible managing employee, responsible managing officer, responsible managing manager, responsible managing member, or qualifying partner in the license records. A qualifying individual is required for every classification and on each license issued by CSLB; the same person may serve as the qualifier for more than one classification. The Board also registers some 9,600 home improvement salespersons who are engaged in the sale of home improvement goods and services.

1. Disclosure Issue. Current law limits disclosure of a citation only to the license subject to a complaint substantiating that citation. Once that citation is disclosed, existing law does not extend that disclosure to licenses obtained or joined by persons thereafter.

By allowing complaints to follow a licensee who may drop an existing license and apply for a new license, CSLB can inform and protect the public by disclosing citations issued to that contractor.

SUPPORT AND OPPOSITION:

Support:

Contractors State License Board (Sponsor)

Opposition:

None on file as of March 29, 2016.

-- END --