BILL ANALYSIS Ó
AB 1091
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Date of Hearing: April 5, 2011
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 1091 (Morrell) - As Introduced: February 18, 2011
SUBJECT : Contractors.
SUMMARY : Revises and recasts provisions on notification
requirements when a qualifier disassociates from a contractors'
license. Specifically, this bill :
1)Revises and recasts provisions requiring a licensed contractor
to notify the Contractors' State License Board (CSLB) and
replace a qualifier within 90 days after a qualifier
disassociates from a contractors' license.
2)Specifies the date up to which the disassociating qualifier is
responsible for the licensee's construction operations be
until the date of disassociation or the date the CSLB receives
the written notification of disassociation, whichever is
later.
3)Authorizes the CSLB registrar, upon a showing of good cause by
the licensee, to review and accept a petition for one 90-day
extension to replace the qualifier immediately following the
initial 90-day period only under the following circumstances:
a) If the licensee is disputing the date of disassociation;
b) If the responsible managing officer, employee, member,
or manager has died; or,
c) If there has been delay in processing the application to
replace the qualifier that is out of the applicant's
control and CSLB or another state or federal agency is
responsible.
4)Requires the petition for one 90-day extension to be received
within 90 days after the date of disassociation or death or
delay, and requires the petition to be considered only if an
application to replace the qualifier is on file with CSLB.
AB 1091
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5)Clarifies that the licensee shall have no more than a total of
180 days after the date of disassociation or death in which to
replace the qualifier.
EXISTING LAW :
1)Provides for the licensing and regulation of contractors by
CSLB.
2)Requires a licensee or qualifier to notify CSLB in writing and
replace the disassociating qualifier within 90 days from the
date of disassociation. Upon failure to replace the qualifier
within 90 days, the license shall be automatically suspended
or the classification removed at the end of those 90 days.
3)Authorizes the CSLB registrar to review and accept the
petition of one 90-day extension of a licensee who disputes
the date of disassociation or who has failed to notify and
replace the qualifier within 90 days, upon a showing of good
cause by the contractor. Requires that this petition be
received within 90 days from CSLB's notice that the license
will be suspended if the qualifier is not replaced. The CSLB
registrar may grant only one 90-day extension to replace the
qualifier.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "There
is inequity between the treatment of licensees who comply with
and those who do not comply with the 90-day notification
requirement Ýwhen a qualifier disassociates from a license] -
inadvertently providing more time for those who do not comply.
For example, if a licensee notifies CSLB that their qualifier
disassociated one year prior, their license is suspended
immediately upon that notification, but they would have already
had one year of active license status without the qualifier in
place and they would have had one year of opportunity to replace
that qualifier. Based on the existing language, someone in this
situation could also request a 90-day extension if they request
it within 90 days after their notification of the disassociation
which would have come about well after the initial 90-day
notification period."
AB 1091
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Background . Business and Professions Code Section 7068.2
stipulates that when a qualifier (the qualifying individuals, or
qualifier, is the person listed in the CSLB records who meets
the experience and examination requirements) disassociates from
a license, the qualifier or the licensee shall notify CSLB
within 90 days after the disassociation date, and they have 90
days after the disassociation date in which to replace the
qualifier or the license is suspended. The CSLB registrar may
grant one and only one 90-day extension for good cause. If the
qualifier and licensee fail to notify CSLB of the disassociation
within the 90-day deadline, the license shall be suspended upon
written notification of the disassociation.
This bill specifies a timeframe by which a licensee must submit
petitions for a one-time 90-day extension to replace a
qualifier. This bill also specifies the circumstances when
CSLB will review and accept a petition, and that licensees only
have up to 180 days after the date of disassociation or death of
a qualifier to replace the qualifier.
Support . According to the sponsor, CSLB, "There is little to
discourage a licensee from failing to notify CSLB Ýin a] timely
Ýmanner] when Ýa] qualifier disassociates, and it has the
potential to cause consumer harm. If the license is suspended
for lack of a qualifier and the licensee has a project in the
works, a consumer could be harmed; that is, the project would
have to stop, or if work continued, it would technically be
Ýperformed] by an unlicensed contractor. Further, if the
license was suspended while a project was underway and a
consumer had a problem and made a claim against the bond, the
bonding company may reject the claim since the contractor was
not properly licensed."
REGISTERED SUPPORT / OPPOSITION :
Support
Contractors State License Board (sponsor)
California Fence Contractors' Association
California Professional Association of Specialty Contractors
Engineering Contractors' Association
Flasher Barricade Association
Marin Builders' Association
Southern California Contractors Association
AB 1091
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Opposition
None on file.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301