BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: AB 2486 Hearing Date: June 20,
2016
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|Author: |Baker |
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|Version: |April 25, 2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Mark Mendoza |
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Subject: Contractors' State License Board: license search by
location
SUMMARY: Requires the Contractors State License Board, by January 1,
2019, to update its website to allow consumers to search for a
licensed contractor by zip code or geographic locator.
Existing law:
1) Creates the Contractors State License Board (CSLB), within
the Department of Consumer Affairs, and provides that the
protection of the public shall be its highest priority in
exercising its licensing, regulatory, and disciplinary
functions.
(Business and Professions Code (BPC) § 7000; 7000.1)
2) Requires the CSLB to investigate complaints and enforce the
provisions of the Contractors State License law, prohibit all
forms of unlicensed activity, and enforce the obligation to
secure the payment of valid and current workers' compensation
insurance in accordance with Section 3700.5 of the Labor
Code. (BPC § 7011.4, 7011.7)
AB 2486 (Baker) Page 2
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3) Defines "contractor" to include any person , consultant to an
owner-builder, firm, association, organization, partnership,
business, trust, corporation, or company, who or which
undertakes, offers to undertake, purports to have the
capacity to undertake, or submits a bid to construct any
building or home improvement project, or part thereof. (BPC
§ 7026.1(a)(2)(A)))
This bill: Requires the Contractors' State License Board, by
January 1, 2019, to update its website to allow consumers to
search for a licensed contractor by zip code or geographic
locator.
FISCAL
EFFECT: This bill has been keyed "fiscal" by Legislative
Counsel. According to the May 18, 2016 Assembly Appropriations
Committee analysis, this bill would impose minor and absorbable
costs to hire two internal IT staff to complete the custom
programming changes to the CSLB's IT system and website. The
analysis notes that alternatively, CSLB could hire one person,
with a higher salary. According the analysis, CSLB estimates the
work proposed in this bill would take four to six months in
either scenario.
COMMENTS:
1. Purpose. The Associated Builders and Contractors of
California (ABC) is the Sponsor of this bill. According to
the Author, "This bill will help combat the use of unlicensed
contractors operating in the multi-billion dollar underground
economy and will help further the Board's mission of consumer
protection by making it easier for consumers to get
information about licensed contractors in their area. This
bill also will support the Board's 2015/2016 Strategic Plan
recommendation to develop ways to make their website more
user-friendly by providing a search by location function."
AB 2486 (Baker) Page 3
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2. Background. The CSLB is the regulatory entity responsible
for licensing contractors and enforcing the Contractors State
License Law. The mission of CSLB is to, "protect consumers
by regulating the construction industry through policies that
promote the health, safety, and general welfare of the public
in matters relating to construction." The CSLB licenses 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. The CSLB licenses approximately 290,000
contractors in 44 license classifications and two
certifications. California requires licensed contractors to
be used on any construction project that costs more than five
hundred dollars. The CSLB currently collects information
about its licensees that it in turn, publishes to its
website.
Currently, the CSLB's website only permits a consumer to
search for a contractor by personal name, business name, or
license number. The Author asserts that as a result, unless
the consumer searching for a reputable licensed contractor
already has a specific contractor's name or license number,
the consumer cannot fully and efficiently utilize the CSLB's
consumer protection resources. The CSLB has published a
strategic plan for the current 2015/2016 fiscal year. Under
the "Public Affairs Objectives", the CSLB outlined a goal to
add a licensee search feature to the CSLB's website, similar
to the feature proposed by this bill. The CSLB planned to
have a schedule adopted by February of 2016, for the
implementation of an opt-in "Find a Contractor" feature to
help consumers locate nearby licensees. Currently, the
project is still outstanding.
Under DCA, the Bureau of Private Postsecondary Education,
Court Reporters Board, and the Cemetery and Funeral Bureau
have a search by county feature. CSLB notes that, either
under their current website or incorporation into BreEZe, the
Board would disclosure licensee complaint or disciplinary
information.
3. The Underground Economy. The CSLB has attested to the
prevalence of unlicensed activity and an underground economy
that affects the construction industry. Unscrupulous
businesses are able to underbid law abiding businesses by
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failing to obtain required licenses and building permits,
failing to pay payroll or other taxes, subverting insurance
laws, and by various other means. When consumers do not use
a licensed contractor, the consumer may be left with little
recourse for fraud, financial losses, and incomplete or
unsafe work. The CSLB currently combats this issue with
various task forces, such as the Statewide Investigative
Fraud Team. This bill aims to additionally mitigate the
problem of an underground economy by making it easier for
consumers to find contractors in good standing in the
consumer's local region.
4. Arguments in Support. The Associated Builders and
Contractors of California (Sponsor) underscore that, "More
and more, Californians are asking for tools that help them
find local sources for a variety of services in order to
support their local communities. AB 2486 addresses that need
by adding in a new tool for consumers to use to find local
licensed contractors."
SUPPORT AND OPPOSITION:
Support:
The Associated Builders and Contractors of California (Sponsor)
California Landscape Contractors Association
The California Pool and Spa Association
The Contractors State License Board
Opposition:
None on file as of June 14, 2016.
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