BILL NUMBER: SB 465 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 23, 2016
AMENDED IN ASSEMBLY JUNE 8, 2016
AMENDED IN ASSEMBLY JULY 8, 2015
AMENDED IN ASSEMBLY JULY 1, 2015
AMENDED IN SENATE APRIL 21, 2015
INTRODUCED BY Senators Hill and Hancock
FEBRUARY 25, 2015
An act to add Sections 7021 and 7071.18 to the Business and
Professions Code, and to add Section 18924.5 to the Health and Safety
Code, relating to building construction.
LEGISLATIVE COUNSEL'S DIGEST
SB 465, as amended, Hill. Building construction: contractors:
discipline: reporting: building standards.
(1) Existing law, the Contractors' State License Law, provides for
the licensure, regulation, and discipline of contractors by the
Contractors' State License Board. Existing law requires the board,
with the approval of the Director of Consumer Affairs, to appoint a
registrar of contractors to serve as the executive officer and
secretary of the board. Under existing law, protection of the public
is required to be the highest priority for the Contractors' State
License Board in exercising its licensing, regulatory, and
disciplinary functions.
Under existing law, the Division of Occupational Safety and Health
has the power, jurisdiction, and supervision over every employment
and place of employment in this state, which is necessary to
adequately enforce and administer all laws and lawful standards and
orders, or special orders requiring such employment and place of
employment to be safe, and requiring the protection of the life,
safety, and health of every employee in such employment or place of
employment.
This bill, by January 1, 2018, would require the board to enter
into an interagency agreement with the Division of Occupational
Safety and Health to ensure that specified disciplinary information
relating to a licensed contractor is timely reported to the board.
The bill, by January 1, 2018, would also require the board to enter
into an interagency agreement with any other state or local agency
the board deems to be in possession of information relevant to its
priority to protect the public. By requiring a local agency to enter
into an interagency agreement with the board, the bill would impose a
state-mandated local program.
This bill would require a licensee to report to the registrar
within 90 days of the date that the licensee has knowledge of the
conviction of the licensee for any felony or any other crime
substantially related to the qualifications, functions, and duties of
a licensed contractor.
By January 1, 2018, this bill would require the board to report to
the Legislature the results of a study to determine if the boards'
ability to protect the public would be enhanced by regulations
requiring licensees to report judgments, arbitration awards against
them, or settlement payments of claims for construction defects they
have made in excess of a certain amount to be determined by the
board, as provided. The bill would require the board to consult with
licensees, insurers, consumers, and other interested parties during
the development of the study. The bill would prohibit the
disclosure of confidential information received by the board in
preparing this required study.
(2) Under existing law, there exists the California Building
Standards Commission. Existing law requires the California Building
Standards Commission to, among other things, review the standards of
adopting state agencies and approve, return for amendment with
recommended changes, or reject building standards submitted to the
commission for its approval, as provided.
This bill would require the California Building Standards
Commission to convene a specified working group to investigate
existing building standards associated with the construction,
inspection, and maintenance of exterior elevated elements. By January
1, 2018, the bill would require the working group to report to the
California Building Standards Commission any findings and possible
recommendations for statutory changes or changes to the California
Building Standards Code. By January 1, 2018, the bill would also
require the working group to provide that report to a specified
legislative committee. However, if, at any time, it is determined by
the working group that one or more changes to the California Building
Standards Code are needed as soon as possible in order to protect
the public, the bill would require the working group to submit the
proposed changes to the California Building Standards Commission for
consideration as soon as possible.
(3) Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.
This bill would make legislative findings to that effect.
(3)
(4) The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7021 is added to the Business and Professions
Code, to read:
7021. (a) By January 1, 2018, the board shall enter into an
interagency agreement with the Division of Occupational Safety and
Health to ensure that any citation, fine, or any other actions taken
by the division against a licensed contractor, along with any other
information the division may possess regarding a licensed contractor,
is timely reported to the board.
(b) By January 1, 2018, the board shall enter into an interagency
agreement with any other state or local agency the board deems to be
in possession of any information relevant to its priority to protect
the public described in Section 7000.6.
SEC. 2. Section 7071.18 is added to the Business and Professions
Code, to read:
7071.18. (a) Notwithstanding any other law, a licensee shall
report to the registrar in writing the occurrence of any of the
following within 90 days after the licensee obtains knowledge of the
event:
(1) The conviction of the licensee for any felony.
(2) The conviction of the licensee for any other crime that is
substantially related to the qualifications, functions, and duties of
a licensed contractor.
(b) (1) By January 1, 2018, the board shall
report to the Legislature the results of a study to determine if the
boards' ability to protect the public as described in Section 7000.6
would be enhanced by regulations requiring licensees to report
judgments, arbitration awards against them, or settlement payments of
claims for construction defects they have made in excess of a
certain amount to be determined by the board. The board shall consult
with licensees, insurers, consumers, and other interested parties
during the development of the study. The study shall include, but not
be limited to, criteria used by insurers or others to differentiate
between settlements that are for nuisance value and those that are
not, the practice of other boards within the department, and any
other criteria considered reasonable by the board. The board shall
submit the report to the Legislature in accordance with Section 9795
of the Government Code.
(2) Confidential information, including, but not limited to,
arbitration awards, received by the board for the purposes of
completing the study or making the report required by paragraph (1)
is confidential and shall not be disclosed pursuant to any state law,
including, but not limited to, the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code).
SEC. 3. Section 18924.5 is added to the Health and Safety Code, to
read:
18924.5. (a) The California Building Standards Commission shall
convene a working group to investigate existing building standards
associated with the construction, inspection, and maintenance of
exterior elevated elements.
(b) The working group shall include, but not be limited to,
representatives from the Department of Housing and Community
Development, the Division of the State Architect- Structural Safety,
the Office of the State Fire Marshal, local building officials and
plan checkers, structural engineers, apartment owners and managers,
building industry, wood, steel and concrete industries, and any other
interested parties.
(c) The working group shall review related documents and reports,
including, but not limited to, forensic reports related to exterior
elevated element failures in California, reports and studies used in
the development of national and state building codes, and any other
material deemed relevant to determine if any changes need to be made
to the construction specifications or inspection requirements,
excluding routine inspections that occur after project completion,
contained within the California Building Standards Code.
(d) (1) By January 1, 2018, the working group shall report to the
California Building Standards Commission any findings and possible
recommendations for statutory changes or changes to the California
Building Standards Code. By January 1, 2018, the working group shall
also provide that report to the Senate Committee on Business,
Professions and Economic Development.
(2) Notwithstanding paragraph (1), if, at any time, it is
determined by the working group that one or more changes to the
California Building Standards Code are needed as soon as possible in
order to protect the public, the working group shall submit the
proposed changes to the California Building Standards Commission for
consideration as soon as possible.
SEC. 4. The Legislature finds and declares that
Section 2 of this act, which adds Section 7071.18 to the Business and
Professions Code, imposes a limitation on the public's right of
access to the meetings of public bodies or the writings of public
officials and agencies within the meaning of Section 3 of Article I
of the California Constitution. Pursuant to that constitutional
provision, the Legislature makes the following findings to
demonstrate the interest protected by this limitation and the need
for protecting that interest:
In order to allow the Contractors' State License Board to fully
accomplish its responsibilities in preparing the study described in
Section 7071.18 of the Business and Professions Code, it is
imperative to protect the interests of those persons submitting
confidential information to the board to ensure that any personal or
sensitive business information required to be submitted by those
persons is protected as confidential information.
SEC. 4. SEC. 5. If the Commission on
State Mandates determines that this act contains costs mandated by
the state, reimbursement to local agencies and school districts for
those costs shall be made pursuant to Part 7 (commencing with Section
17500) of Division 4 of Title 2 of the Government Code.