BILL ANALYSIS Ó
AB 2554
Page 1
Date of Hearing: April 17, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 2554 (Bill Berryhill) - As Amended: March 27, 2012
SUBJECT : Contractors.
SUMMARY : Provides that the revocation of a license shall not
deprive the Registrar of Contractors (Registrar) of the
Contractors' State License Board (CSLB) jurisdiction to proceed
with disciplinary proceedings against CSLB licensees.
Specifically, this bill :
1)Renames the CSLB's enforcement unit as a division, and makes
conforming changes.
2)Provides that the revocation of a license by operation of law
or by order or decision of the Registrar or a court of law, or
the voluntary surrender of a license by a licensee, shall not
deprive the Registrar of jurisdiction to proceed with any
investigation, action or disciplinary proceeding against the
license, or to render a decision suspending or revoking the
license.
EXISTING LAW
1)Licenses and regulates contractors under the Contractors State
License Law by the CSLB within the Department of Consumer
Affairs (DCA). The Registrar is the CSLB's executive officer.
2)Provides for a separate enforcement unit in the CSLB, and
requires the unit to rigorously enforce the Contractors State
License Law prohibiting all forms of unlicensed activity.
3)Provides that persons employed as enforcement representatives
in the CSLB's enforcement unit and designated by the Director
of DCA are not peace officers, are not entitled to safety
member retirement benefits, and do not have the power of
arrest. However, they may issue a written notice to appear in
court for misdemeanor violations of the Contractors State
License Law.
4)Provides that the expiration, cancellation, forfeiture, or
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suspension of a license by operation of law or by order or
decision of the Registrar or a court of law, or the voluntary
surrender of a license by a licensee, shall not deprive the
Registrar of jurisdiction to proceed with any investigation of
or action or disciplinary proceeding against the license, or
to render a decision suspending or revoking the license.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal.
COMMENTS :
Purpose of this bill . According to the author, "By not having
the clear authority to file an accusation when the license is
revoked by operation of law, an individual could evade/avoid
discipline because the facts of the grounds for the accusation
were never established.
"With this proposed change, CSLB could proceed with the
accusation hearing, and put the discipline and facts of the case
on record, which would require the licensee to comply with the
order of the CSLB Registrar prior to getting the license
re-issued. The licensee, upon seeking reinstatement of the
license, is afforded due process of law and can appeal the
administrative disciplinary action by a hearing in front of an
administrative law judge."
Background . The CSLB licenses and regulates California's
construction industry. Anyone performing construction work in
California that totals $500 dollars or more in labor and
materials must be licensed by CSLB. There are about 300,000
licensed contractors in the state, in 43 different licensing
classifications.
Revoking a license by operation of law occurs when a licensee
fails to comply with a citation or an arbitration award. The
license is revoked for a minimum of one year, to a maximum of
five years. To reinstate the license, the licensee must make
restitution or comply with the order of correction, pay civil
penalties, and post a minimum disciplinary bond in the amount of
$15,000.
An accusation, which is filed after an investigation by
enforcement staff, is a public written statement of charges CSLB
has filed with the Office of the Attorney General that specifies
statutes and rules a licensee is alleged to have violated. An
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accusation may result in a hearing to determine whether a
licensee has violated the law and whether the license should be
revoked, suspended, and/or placed under some type of restriction
by CSLB.
Current law provides that CSLB maintains authority to pursue
disciplinary action despite any of the following license
conditions: expiration, cancellation, forfeiture, or suspension
of a license by operation of law or by order or decision of the
Registrar or a court of law; or the voluntary surrender of a
license. However, the law does not stipulate whether CSLB
maintains disciplinary authority if a license is revoked.
This bill clarifies that the CSLB can proceed with enforcement
action against a licensee whose license has been revoked.
This bill also changes the terms used to refer to CSLBs
enforcement entity, from "unit" to "division." This effectively
allows all enforcement representatives (ERs), not just those
with a particular unit, the authority to issue a notice to
appear (NTA).
According to the CSLB, "Allowing all ERs to issue a NTA will
enhance CSLB's enforcement efforts, particularly in the area of
workers' compensation, by allowing additional investigators to
partner with the California Department of Insurance and the
Premium Insurance Fraud Task Force to combat unlicensed and
uninsured practice. ERs will only receive this authority upon
completion of appropriate training."
Previous legislation .
SB 1694 (Wright), Chapter 413, Statutes of 1994, removes the
limitation that the CSLB enforcement unit operate as a
demonstration project only in southern California.
AB 2279 (Eastin), Chapter 1363, Statutes of 1989, establishes
the CSLB enforcement unit as a demonstration project only in
southern California.
REGISTERED SUPPORT / OPPOSITION :
Support
Contractors State License Board (sponsor)
AB 2554
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Opposition
None on file.
Analysis Prepared by : Angela Mapp / B.,P. & C.P. / (916)
319-3301