BILL ANALYSIS Ó
AB 2286
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2286 (Mullin) - As Introduced February 18, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY: This bill increases the fee cap for the Contractors
State Licensing Board (CSLB) fee schedule, authorizes a fee for
making changes to the personnel associated with a license, and
provides the CSLB the authority to adopt regulations to provide
for expedited processing of applications for licensure.
Specifically, this bill:
1)Increases the maximum fees the CSLB may set by regulation for:
a) An application for an original license in a single
classification from $300 to $360;
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b) An application for each additional classification, as
specified, from $75 to $300;
c) The application fee to replace a responsible managing
officer, responsible managing manager, responsible managing
member, or responsible managing employee, from $75 to $300.
d) The initial license fee for an active and renewal for an
inactive license from $180 to $220;
e) The renewal of an active license from $360 to $430;
f) The registration of a home improvement salesperson from
$75 to $90;
g) The renewal of a home improvement salesperson
registration from $75 to $90;
h) The application for an asbestos certification
examination from $75 to $90;
i) The application for a hazardous substance removal or
remedial action certification examination from $75 to $90;
j) The delinquency penalty for a home improvement
salesperson registration renewal application that is not
postmarked or received by the registration's expiration
from $25 to 50% of the renewal fee.
FISCAL EFFECT:
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1)Anticipated increase in fee revenue of approximately $12
million (Contractor License Fund) beginning in FY 2017-18 and
on-going, if the Board's fees are increased to the proposed
statutory caps and include the new fees, and regulations are
adopted. This amount would be less to the extent that some
fees are increased to less than the proposed caps.
2)One-time cost of approximately $3,500 for IT costs associated
with increasing the fees. The Board indicates these costs are
minor and absorbable.
3)Minor and absorbable costs for adopting regulations.
COMMENTS:
1)Purpose. According to the author, "this proposal raises the
statutory cap on CSLB's authorized fees. CSLB will need to
adopt regulations to set actual fee amounts, and will continue
to work with industry and interested parties through that
process. If CSLB is able to obtain approval for a fee
increase, it will be able to continue working to provide
online license application and renewal services, which will
benefit all licensees. If CSLB is not able to implement a fee
increase, it will have to reduce costs in Enforcement. These
cuts will begin with cuts to its proactive enforcement
program. Certain positions will be held vacant which will lead
to backlogs in license application and complaint handling
processing."
2)Background. The CSLB, established in 1929, was designed to
regulate the state's construction industry and protect the
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public from irresponsible contractors. Now classified as a
board within the DCA, the CSLB operates with a 15-member board
and upholds its mission to protect consumers by regulating the
construction industry through licensure, enforcement, and
education. The CSLB regulates contractors in 43 license
classifications and two certifications, which amounts to
approximately 285,000 licensees.
The CSLB receives no General Fund support, relying solely on
fees set by statute and collected from contractors and
applicants. Renewal fees constitute the main source of
revenue, and are collected every two years from contractors
with active licenses. Active contractor licenses expire two
years from the last day of the month in which the license was
issued. Inactive licenses are valid for four years.
In FY 2012-13, the CSLB spent approximately $54 million, and
in the current budget year is expected to spend approximately
$61 million. According to the CSLB they will face a deficit of
approximately $6 million by Fiscal Year (FY) 2018-19.
3)Prior Legislation. SB 1953 (Figueroa) Chapter 744, Statutes of
2002, enacted the last statutory increase for all fees. The
CSLB promulgated regulations to implement this fee increase in
2011.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
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319-2081