BILL NUMBER: SB 1953 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 24, 2002
AMENDED IN SENATE MAY 1, 2002
INTRODUCED BY Senator Figueroa
(Coauthors: Senators Johannessen and Polanco)
(Coauthors: Assembly Members Aanestad, Correa, and Thomson)
FEBRUARY 22, 2002
An act to amend Sections 144, 7000.5, 7011, 7069, 7137, 7138.1,
and 7153.1 of, and to add Sections 7000.6 and 7017.5 to, the Business
and Professions Code, and to amend Section 1095 of the Unemployment
Insurance Code, relating to contractors, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1953, as amended, Figueroa. Contractors.
(1) Existing law, the Contractors' State License Law, creates the
Contractors' State License Board within the Department of Consumer
Affairs. Existing law authorizes the board to appoint a registrar of
contractors who is responsible for all of the board's administrative
duties. Under existing law, these provisions will become inoperative
on July 1, 2003, and will be repealed on January 1, 2004.
This bill would extend these provisions to January 1, 2008. This
bill would state that the highest priority for the board, in
performing its licensing, regulatory, and disciplinary functions, is
the protection of the public.
(2) Existing law requires the board, within 30 days prior to the
meeting of the general session of the Legislature, to submit a report
to the Governor and the Legislature describing its transactions for
the preceding biennium.
This bill would require the board to submit an additional report
to the Legislature, by October 1 of each year, containing statistical
and case aging information, as specified, pertaining to complaints
the board received the previous year.
(3) Existing law prohibits an applicant, officer, director,
partner, associate, and a managing employee from committing any acts
or crimes that are grounds for denial of a license. Existing law
requires a home improvement salesman
salesperson to submit an application for licensure to the board
with the appropriate fee.
This bill would require, on and after January 1, 2004, that all
applicants for a contractor's license or a home improvement
salesman salesperson license submit a set of
fingerprints to the board with his or her application. The bill
would require the board to obtain and receive criminal history
information from the Department of Justice and the Federal Bureau of
Investigation for a criminal history records check.
(4) Existing law statutorily provides the fees that the board may
charge for, among other things, an application for an original
license, rescheduling an examination, and the renewal of an active or
an inactive license.
This bill would authorize the board to set these fees by
regulation, subject to increased fee maximums for specified licenses
and services. Because these fees would be deposited into the
Contractors' License Fund, which is continuously appropriated, the
bill would make an appropriation.
(5) Existing law provides that the board may set fees at a level
necessary to generate a 3-month reserve fund based on annual board
expenses.
This bill would authorize the board to set fees to maintain the
amount of the reserve fund at a level not to exceed approximately 6
months of annual authorized board expenditures.
(6) Existing law authorizes the Director of the Employment
Development Department to permit the use of information in his or her
possession for specified purposes.
This bill would additionally authorize the director to release
information to the board so the board may verify the employment
history of an individual applying for a contractor's license.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 144 of the Business and Professions Code is
amended to read:
144. (a) Notwithstanding any other provision of law, an agency
designated in subdivision (b) shall require an applicant to furnish
to the agency a full set of fingerprints for purposes of conducting
criminal history record checks. Any agency designated in subdivision
(b) may obtain and receive, at its discretion, criminal history
information from the Department of Justice and the United States
Federal Bureau of Investigation.
(b) Subdivision (a) applies to the following boards or committees:
(1) California Board of Accountancy.
(2) State Athletic Commission.
(3) Board of Behavioral Sciences.
(4) Court Reporters Board of California.
(5) State Board of Guide Dogs for the Blind.
(6) California State Board of Pharmacy.
(7) Board of Registered Nursing.
(8) Veterinary Medical Board.
(9) Registered Veterinary Technician Committee.
(10) Board of Vocational Nursing and Psychiatric Technicians.
(11) Respiratory Care Board of California.
(12) Hearing Aid Dispensers Advisory Commission.
(13) Physical Therapy Board of California.
(14) Physician Assistant Committee of the Medical Board of
California.
(15) Speech-Language Pathology and Audiology Board.
(16) Medical Board of California.
(17) State Board of Optometry.
(18) Acupuncture Board.
(19) Cemetery and Funeral Programs.
(20) Bureau of Security and Investigative Services.
(21) Division of Investigation.
(22) Board of Psychology.
(23) The California Board of Occupational Therapy.
(24) Contractors' State License Board.
SEC. 2. Section 7000.5 of the Business and Professions Code is
amended to read:
7000.5. (a) There is in the Department of Consumer Affairs a
Contractors' State License Board, which consists of 15 members.
(b) The repeal of this section renders the board subject to the
review required by Division 1.2 (commencing with Section 473).
However, the review of this board by the department shall be limited
to only those unresolved issues identified by the Joint Legislative
Sunset Review Committee.
(c) This section shall become inoperative on July 1, 2007, and, as
of January 1, 2008, is repealed, unless a later enacted statute,
which becomes effective on or before January 1, 2008, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 3. Section 7000.6 is added to the Business and Professions
Code, to read:
7000.6. Protection of the public shall be the highest priority
for the Contractors' State License Board in exercising its licensing,
regulatory, and disciplinary functions. Whenever the protection of
the public is inconsistent with other interests sought to be
promoted, the protection of the public shall be paramount.
SEC. 4. Section 7011 of the Business and Professions Code is
amended to read:
7011. The board by and with the approval of the director shall
appoint a registrar of contractors and fix his or her compensation.
The registrar shall be the executive officer and secretary of the
board and shall carry out all of the administrative duties as
provided in this chapter and as delegated to him or her by the board.
For the purpose of administration of this chapter, there may be
appointed a deputy registrar, a chief reviewing and hearing officer
and, subject to Section 159.5, other assistants and subordinates as
may be necessary.
Appointments shall be made in accordance with the provisions of
civil service laws.
This section shall become inoperative on July 1, 2007, and, as of
January 1, 2008, is repealed, unless a later enacted statute, which
becomes effective on or before January 1, 2008, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 5. Section 7017.5 is added to the Business and Professions
Code, to read:
7017.5. The Contractors' State License Board shall report
annually to the Legislature, no later than October 1 of each year,
the following statistical and case aging information for the prior
fiscal year. Data shall be gathered on complaints against licensed
contractors, registered home improvement salespersons, and unlicensed
persons acting as licensees or registrants. This information shall
include, but not be limited to, the following:
(a) The number of complaints received by the board. The
complaints shall be itemized by source, such as public, trade,
profession, government agency, or board-initiated, and by type of
complaint, such as workmanship, abandonment, financial, technical,
nonlicensee, or other type of complaint.
(b) The disposition of these complaints, which shall include the
following:
(1) The number of complaints closed prior to referral for field
investigation, itemized by the reason for the closure, such as lack
of jurisdiction, insufficient evidence to proceed, no violation,
closed after intervention or mediation, referred for mandatory
arbitration, or referred for voluntary arbitration.
(2) The number of complaints referred for field investigation,
itemized by the type of complaint, such as workmanship, abandonment,
nonlicensee, or other type of complaint.
(3) For all cases reported under paragraphs (1) and (2), a further
identification of cases closed and referred alleging a violation of
Section 7159 concerning excessive down payments on home improvement
contracts, a violation of Section 7121.5 concerning qualifiers on
revoked or suspended licenses, or a violation of Section 7121
concerning employment of unlicensed executives.
(c) The investigation of these complaints, which shall include:
(1) The number of complaints closed after referral for field
investigation, itemized by the reason for the closure, such as
insufficient evidence to proceed, no violation, closed after
intervention or mediation, referred for mandatory arbitration, or
referred for voluntary arbitration.
(2) The number of citations issued to licensees, itemized by the
type of violation, such as workmanship, abandonment, contract
violation, or other violation, and by the type of citation, such as
order of abatement only or order of abatement and fine. This
information shall also include the total amount of fines assessed,
the total amount of fines collected, and the number of citations
vacated or withdrawn.
(3) The number of citations issued to nonlicensees, itemized by
type of citation, such as the following: (A) citation, order of
abatement, cease and desist order only, or (B) citation, order of
abatement, cease and desist order with a fine. This information
shall also include the total amount of fines assessed, the total
amount of fines collected, and the number of citations vacated or
withdrawn.
(4) The number of complaints referred to local prosecutors for
criminal investigation or prosecution, itemized by the type of case.
(5) The number of complaints referred to the Attorney General for
the filing of an accusation.
(6) For all cases reported under paragraphs (1) to (5), inclusive,
a further identification of cases closed, referred, or cited for a
violation of Section 7159 concerning excessive down payments on home
improvement contracts, a violation of Section 7121.5 concerning
qualifiers on revoked or suspended licenses, or a violation of
Section 7121 concerning employment of unlicensed executives.
(d) The prosecution data, including the number of accusations and
petitions to revoke probation filed by the Attorney General, and an
itemization of all cases alleging a violation of Section 7159
concerning excessive down payments on home improvement contracts, a
violation of Section 7121.5 concerning qualifiers on revoked or
suspended licenses, and a violation of Section 7121 concerning
employment of unlicensed executives.
(e) The actions taken by the board regarding each of the
following:
(1) The number of disciplinary actions taken by way of accusation,
itemized by type of action, such as revocation, suspension,
probation, or other disciplinary action.
(2) The number of accusations dismissed or withdrawn.
(3) An itemization of all actions taken for a violation of Section
7159 concerning excessive down payments on home improvement
contracts, a violation of Section 7121.5 concerning qualifiers on
revoked or suspended licenses, and a violation of Section 7121
concerning employment of unlicensed executives.
(f) Automatic disciplinary actions, such as the following:
(1) The number of automatic disciplinary actions for failure to
pay an arbitration award, itemized by suspension or revocation.
(2) The number of automatic disciplinary actions for failure to
pay a citation, itemized by suspension or revocation.
(3) The number of all other automatic suspensions and revocations,
itemized by suspension or revocation.
(g) The number of interim suspension orders issued pursuant to
Section 494 and temporary restraining orders issued pursuant to
Sections 125.5, 125.7, and any other applicable section of law,
including the number of orders sought and granted.
(h) The amount of cost recovery sought pursuant to Section 125.3,
the amount ordered, and the amount collected.
(i) The average caseload for program technicians, consumer
services representatives, and enforcement representatives at the
beginning of the fiscal year and quarterly updates throughout the
fiscal year, itemized by the board office.
(j) Case aging data, including aging data from each of the major
stages of the enforcement process including, but not limited to, the
following:
(1) The average and median number of days from the filing of a
complaint to the closure of a case or other disposition by intake or
mediation, itemized by the intake mediation centers in northern and
southern California and by the type of case, such as workmanship,
abandonment, nonlicensee, or other type of case.
(2) The average and median number of days from the filing of a
complaint to the completion of an investigation, itemized by the
investigation centers and by the type of case, such as workmanship,
abandonment, nonlicensee, or other type of case.
(3) The average and median number of days from the filing of a
complaint to the referral of the completed investigation to the
Attorney General, itemized by the investigation centers and by the
type of case, such as workmanship, abandonment, nonlicensee, or other
type of case.
(4) The average and median number of days from the referral of a
completed investigation to the Attorney General to the filing of an
accusation, itemized by the major metropolitan offices of the
Attorney General.
(5) The average and median number of days from the filing of an
accusation to the first day of the hearing.
(6) The average number of days from the filing of an accusation to
the submission of an administrative law judge's proposed decision to
the registrar.
(7) The average and median number of days from the receipt of the
registrar's proposed decision to the final decision.
(k) The number of cases pending that are over 180 days old,
itemized by month.
(l) The number of cases pending at the end of the fiscal year,
itemized by 60-day increments, and the percentage of total cases
pending, represented by the number of cases in each of those
increments.
(m) Staff productivity measured by the total number of complaints
closed divided by the number of personnel dedicated to the
enforcement program.
SEC. 6. Section 7069 of the Business and Professions Code is
amended to read:
7069. (a) An applicant, and each officer, director, partner,
associate and responsible managing employee thereof, shall not have
committed acts or crimes which are grounds for denial of licensure
under Section 480.
(b) As part of an application for a contractor's license, the
board shall require an applicant to furnish a full set of
fingerprints for purposes of conducting a criminal history record
check. Fingerprints furnished pursuant to this subdivision shall be
submitted in an electronic format where readily available. Requests
for alternative methods of furnishing fingerprints are subject to the
approval of the registrar. The board shall use the fingerprints
furnished by an applicant to obtain criminal history information on
the applicant from the Department of Justice and the United States
Federal Bureau of Investigations
Investigation , including any subsequent arrest information
available. This subdivision shall become operative on January 1,
2004.
SEC. 7. Section 7137 of the Business and Professions Code is
amended to read:
7137. The board shall set fees by regulation. These fees shall
not exceed the following schedule:
(a) The application fee for an original license in a single
classification shall not be more than three hundred dollars ($300).
The application fee for each additional classification applied for
in connection with an original license shall not be more than
seventy-five dollars ($75).
The application fee for each additional classification pursuant to
Section 7059 shall not be more than seventy-five dollars ($75).
The application fee to replace a responsible managing officer or
employee pursuant to Section 7068.2 shall not be more than
seventy-five dollars ($75).
(b) The fee for rescheduling an examination for an applicant who
has applied for an original license, additional classification, a
change of responsible managing officer or responsible managing
employee, or for an asbestos certification or hazardous substance
removal certification, shall not be more than sixty dollars ($60).
(c) The fee for scheduling or rescheduling an examination for a
licensee who is required to take the examination as a condition of
probation shall not be more than sixty dollars ($60).
(d) The initial license fee for an active or inactive license
shall not be more than one hundred eighty dollars ($180).
(e) The renewal fee for an active license shall not be more than
three hundred sixty dollars ($360).
The renewal fee for an inactive license shall not be more than one
hundred eighty dollars ($180).
(f) The delinquency fee is an amount equal to 50 percent of the
renewal fee, if the license is renewed more than 30 days after its
expiration.
(g) The registration fee for a home improvement salesperson shall
not be more than seventy-five dollars ($75).
(h) The renewal fee for a home improvement salesperson
registration shall not be more than seventy-five dollars ($75).
(i) The application fee for an asbestos certification examination
shall not be more than seventy-five dollars ($75).
(j) The application fee for a hazardous substance removal or
remedial action certification examination shall not be more than
seventy-five dollars ($75).
SEC. 8. Section 7138.1 of the Business and Professions Code is
amended to read:
7138.1. Notwithstanding Section 7137, the board shall fix fees to
be collected pursuant to that section in order to generate revenues
sufficient to maintain the board's reserve fund at a level not to
exceed approximately six months of annual authorized board
expenditures.
SEC. 9. Section 7153.1 of the Business and Professions Code is
amended to read:
7153.1. (a) The home improvement salesman
salesperson shall submit to the registrar an application in
writing containing the statement that he desires the issuance of a
registration under the terms of this article.
The application shall be made on a form prescribed by the
registrar and shall be accompanied by the fee fixed by this chapter.
(b) The registrar may refuse to register the applicant under the
grounds specified in Section 480.
(c) As part of an application for a home improvement
salesman salesperson , the board shall require
an applicant to furnish a full set of fingerprints for purposes of
conducting criminal history record checks. Fingerprints furnished
pursuant to this subdivision shall be submitted in an electronic
format where readily available. Requests for alternative methods of
furnishing fingerprints are subject to the approval of the registrar.
The board shall use the fingerprints furnished by an applicant to
obtain criminal history information on the applicant from the
Department of Justice and the United States Federal Bureau of
Investigation, including any subsequent arrest information available.
This subdivision shall become operative on January 1, 2004.
SEC. 10. Section 1095 of the Unemployment Insurance Code is
amended to read:
1095. The director shall permit the use of any information in his
or her possession to the extent necessary for any of the following
purposes and may require reimbursement for all direct costs incurred
in providing any and all information specified in this section,
except information specified in subdivisions (a) to (e), inclusive:
(a) To enable the director or his or her representative to carry
out his or her responsibilities under this code.
(b) To properly present a claim for benefits.
(c) To acquaint a worker or his or her authorized agent with his
or her existing or prospective right to benefits.
(d) To furnish an employer or his or her authorized agent with
information to enable him or her to fully discharge his or her
obligations or safeguard his or her rights under this division or
Division 3 (commencing with Section 9000).
(e) To enable an employer to receive a reduction in contribution
rate.
(f) To enable federal, state, or local government departments or
agencies, subject to federal law, to verify or determine the
eligibility or entitlement of an applicant for, or a recipient of,
public social services provided pursuant to Division 9 (commencing
with Section 10000) of the Welfare and Institutions Code, or Part A
of Title IV of the Social Security Act, where the verification or
determination is directly connected with, and limited to, the
administration of public social services.
(g) To enable county administrators of general relief or
assistance, or their representatives, to determine entitlement to
locally provided general relief or assistance, where the
determination is directly connected with, and limited to, the
administration of general relief or assistance.
(h) To enable state or local governmental departments or agencies
to seek criminal, civil, or administrative remedies in connection
with the unlawful application for, or receipt of, relief provided
under Division 9 (commencing with Section 10000) of the Welfare and
Institutions Code or to enable the collection of expenditures for
medical assistance services pursuant to Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
(i) To provide any law enforcement agency with the name, address,
telephone number, birth date, social security number, physical
description, and names and addresses of present and past employers,
of any victim, suspect, missing person, potential witness, or person
for whom a felony arrest warrant has been issued, when a request for
this information is made by any investigator or peace officer as
defined by Sections 830.1 and 830.2 of the Penal Code, or by any
federal law enforcement officer to whom the Attorney General has
delegated authority to enforce federal search warrants, as defined
under Sections 60.2 and 60.3 of Title 28 of the Code of Federal
Regulations, as amended, and when the requesting officer has been
designated by the head of the law enforcement agency and requests
this information in the course of and as a part of an investigation
into the commission of a crime when there is a reasonable suspicion
that the crime is a felony and that the information would lead to
relevant evidence. The information provided pursuant to this
subdivision shall be provided to the extent permitted by federal law
and regulations, and to the extent the information is available and
accessible within the constraints and configurations of existing
department records. Any person who receives any information under
this subdivision shall make a written report of the information to
the law enforcement agency that employs him or her, for filing under
the normal procedures of that agency.
(1) This subdivision shall not be construed to authorize the
release to any law enforcement agency of a general list identifying
individuals applying for or receiving benefits.
(2) The department shall maintain records pursuant to this
subdivision only for periods required under regulations or statutes
enacted for the administration of its programs.
(3) This subdivision shall not be construed as limiting the
information provided to law enforcement agencies to that pertaining
only to applicants for, or recipients of, benefits.
(4) The department shall notify all applicants for benefits that
release of confidential information from their records will not be
protected should there be a felony arrest warrant issued against the
applicant or in the event of an investigation by a law enforcement
agency into the commission of a felony.
(j) To provide public employee retirement systems in California
with information relating to the earnings of any person who has
applied for or is receiving a disability income, disability
allowance, or disability retirement allowance, from a public employee
retirement system. The earnings information shall be released only
upon written request from the governing board specifying that the
person has applied for or is receiving a disability allowance or
disability retirement allowance from its retirement system. The
request may be made by the chief executive officer of the system or
by an employee of the system so authorized and identified by name and
title by the chief executive officer in writing.
(k) To enable the Division of Labor Standards Enforcement in the
Department of Industrial Relations to seek criminal, civil, or
administrative remedies in connection with the failure to pay, or the
unlawful payment of, wages pursuant to Chapter 1 (commencing with
Section 200) of Part 1 of Division 2 of, and Chapter 1 (commencing
with Section 1720) of Part 7 of Division 2 of, the Labor Code.
(l) To enable federal, state, or local governmental departments or
agencies to administer child support enforcement programs under
Title IV of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
(m) To provide federal, state, or local governmental departments
or agencies with wage and claim information in its possession that
will assist those departments and agencies in the administration of
the victims of crime program or in the location of victims of crime
who, by state mandate or court order, are entitled to restitution
that has been or can be recovered.
(n) To provide federal, state, or local governmental departments
or agencies with information concerning any individuals who are or
have been:
(1) Directed by state mandate or court order to pay restitution,
fines, penalties, assessments, or fees as a result of a violation of
law.
(2) Delinquent or in default on guaranteed student loans or who
owe repayment of funds received through other financial assistance
programs administered by those agencies. The information released by
the director for the purposes of this paragraph shall not include
unemployment insurance benefit information.
(o) To provide an authorized governmental agency with any or all
relevant information that relates to any specific workers'
compensation insurance fraud investigation. The information shall be
provided to the extent permitted by federal law and regulations.
For the purposes of this subdivision, "authorized governmental agency"
means the district attorney of any county, the office of the
Attorney General, the Department of Industrial Relations, and the
Department of Insurance. An authorized governmental agency may
disclose this information to the State Bar, the Medical Board of
California, or any other licensing board or department whose licensee
is the subject of a workers' compensation insurance fraud
investigation. This subdivision shall not prevent any authorized
governmental agency from reporting to any board or department the
suspected misconduct of any licensee of that body.
(p) To enable the Director of the Bureau for Private Postsecondary
and Vocational Education, or his or her representatives, to access
unemployment insurance quarterly wage data on a case-by-case basis to
verify information on school administrators, school staff, and
students provided by those schools who are being investigated for
possible violations of Chapter 7 (commencing with Section 94700) of
Part 59 of the Education Code.
(q) To provide employment tax information to the tax officials of
Mexico, if a reciprocal agreement exists. For purposes of this
subdivision, "reciprocal agreement" means a formal agreement to
exchange information between national taxing officials of Mexico and
taxing authorities of the State Board of Equalization, the Franchise
Tax Board, and the Employment Development Department. Furthermore,
the reciprocal agreement shall be limited to the exchange of
information that is essential for tax administration purposes only.
Taxing authorities of the State of California shall be granted tax
information only on California residents. Taxing authorities of
Mexico shall be granted tax information only on Mexican nationals.
(r) To enable city and county planning agencies to develop
economic forecasts for planning purposes. The information shall be
limited to businesses within the jurisdiction of the city or county
whose planning agency is requesting the information, and shall not
include information regarding individual employees.
(s) To provide the State Department of Developmental Services with
wage and employer information that will assist in the collection of
moneys owed by the recipient, parent, or any other legally liable
individual for services and supports provided pursuant to Chapter 9
(commencing with Section 4775) of Division 4.5 of, and Chapter 2
(commencing with Section 7200) and Chapter 3 (commencing with Section
7500) of Division 7 of, the Welfare and Institutions Code.
(t) To enable the Contractors' State License Board to
verify the employment history of an individual applying for licensure
pursuant to Section 7068 of the Business and Professions Code.
(u) Nothing in this section shall be construed to
authorize or permit the use of information obtained in the
administration of this code by any private collection agency.
(v)
(u) The disclosure of the name and address of an individual
or business entity that was issued an assessment that included
penalties under Section 1128 or 1128.1 shall not be in violation of
Section 1094 if the assessment is final. The disclosure may also
include any of the following:
(1) The total amount of the assessment.
(2) The amount of the penalty imposed under Section 1128 or 1128.1
that is included in the assessment.
(3) The facts that resulted in the charging of the penalty under
Section 1128 or 1128.1.
(v) To enable the Contractors' State License Board to verify the
employment history of an individual applying for licensure pursuant
to Section 7068 of the Business and Professions Code.