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 abegin delete licensedend delete 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 thebegin delete boards’end deletebegin insert board’send insert 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 wouldbegin delete prohibit the disclosure of confidential information received by the board in preparing this required study.end deletebegin insert require records or documents obtained by the board during the course of implementing this study that are exempt from public disclosure to remain exempt from disclosure.end insert
(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.
(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 7021 is added to the Business and
2Professions Code, to read:
(a) By January 1, 2018, the board shall enter into an
4interagency agreement with the Division of Occupational Safety
5and Health to ensure that any citation, fine, or any other actions
6begin insert potentially involving or involving a serious injury or illness, as
7defined in Section 6302 of the Labor Code,end insert taken by the division
8against abegin delete licensedend delete contractor, along with any other information the
9division may possess regarding abegin delete licensedend delete contractor, is timely
10reported to the board.
P4 1(b) By
January 1, 2018, the board shall enter into an interagency
2agreement with any other state or local agency the board deems
3to be in possession of any information relevant to its priority to
4protect the public described in Section 7000.6.
Section 7071.18 is added to the Business and
6Professions Code, to read:
(a) Notwithstanding any other law, a licensee shall
8report to the registrar in writing the occurrence of any of the
9following within 90 days after the licensee obtains knowledge of
10the event:
11(1) The conviction of the licensee for any felony.
12(2) The conviction of the licensee for any other crime that is
13substantially related to the qualifications, functions, and duties of
14a licensed contractor.
15(b) (1) By January 1, 2018, the board shall report to the
16Legislature the results of a study to determine if thebegin delete boards’end deletebegin insert
board’send insert
17 ability to protect the public as described in Section 7000.6 would
18be enhanced by regulations requiring licensees to report judgments,
19arbitration awards against them, or settlement payments of claims
20for construction defects they have made in excess of a certain
21amount to be determined by the board. The board shall consult
22with licensees, insurers, consumers, and other interested parties
23during the development of the study. The study shall include, but
24not be limited to, criteria used by insurers or others to differentiate
25between settlements that are for nuisance value and those that are
26not,begin insert whether settlement information or other information can help
27identify licensees who may be subject to an enforcement action, if
28there is a way to separate subcontractors from general contractors
29when identifying licensees who may be subject to an enforcement
30action, whether reporting should
be limited to settlements resulting
31from construction defects that resulted in death or injury,end insert the
32practice of other boards within the department, and any other
33criteria considered reasonable by the board. The board shall submit
34the report to the Legislature in accordance with Section 9795 of
35the Government Code.
36(2) Confidential information, including, but not limited to,
37arbitration awards, received by the board for the purposes of
38completing the study or making the report required by paragraph
39(1) is confidential and shall not be disclosed pursuant to any state
40law, including, but not limited to, the California Public Records
P5 1Act (Chapter 3.5 (commencing with Section 6250) of Division 7
2of Title 1 of the Government Code).
3
(2) Records or documents obtained by the board during the
4course of implementing this subdivision that are exempt from public
5disclosure under the California Public Records Act (Chapter 3.5
6(commencing with Section 6250) of Division 7 of Title 1 of the
7Government Code) shall remain exempt from disclosure pursuant
8to that act.
Section 18924.5 is added to the Health and Safety
10Code, to read:
(a) The California Building Standards Commission
12shall convene a working group to investigate existing building
13standards associated with the construction, inspection, and
14maintenance of exterior elevated elements.
15(b) The working group shall include, but not be limited to,
16representatives from the Department of Housing and Community
17Development, the Division of the State Architect--Structural
18Safety, the Office of the State Fire Marshal, local building officials
19and plan checkers, structural engineers, apartment owners and
20managers, building industry, wood, steel and concrete industries,
21and any other interested parties.
22(c) The working group shall review related documents and
23
reports, including, but not limited to, forensic reports related to
24exterior elevated element failures in California, reports and studies
25used in the development of national and state building codes, and
26any other material deemed relevant to determine if any changes
27need to be made to the construction specifications or inspection
28requirements, excluding routine inspections that occur after project
29completion, contained within the California Building Standards
30Code.
31(d) (1) By January 1, 2018, the working group shall report to
32the California Building Standards Commission any findings and
33possible recommendations for statutory changes or changes to the
34California Building Standards Code. By January 1, 2018, the
35working group shall also provide that report to the Senate
36Committee on Business, Professions and Economic Development.
37(2) Notwithstanding paragraph
(1), if, at any time, it is
38determined by the working group that one or more changes to the
39California Building Standards Code are needed as soon as possible
40in order to protect the public, the working group shall submit the
P6 1proposed changes to the California Building Standards Commission
2for consideration as soon as possible.
The Legislature finds and declares that Section 2 of
4this act, which adds Section 7071.18 to the Business and
5Professions Code, imposes a limitation on the public’s right of
6access to the meetings of public bodies or the writings of public
7officials and agencies within the meaning of Section 3 of Article
8I of the California Constitution. Pursuant to that constitutional
9provision, the Legislature makes the following findings to
10demonstrate the interest protected by this limitation and the need
11for protecting that interest:
12In order to allow the Contractors’ State License Board to fully
13accomplish its responsibilities in preparing the study described in
14
Section 7071.18 of the Business and Professions Code, it is
15imperative to protect the interests of those persons submitting
16confidential information to the board to ensure that any personal
17or sensitive business information required to be submitted by those
18persons is protected as confidential information.
19
By allowing records and documents exempt from disclosure to
20be shared with the Contractors’ State License Board and remain
21nonpublic under the Public Records Act, the act adding this section
22would encourage private individuals and entities to provide the
23board with information that is vital to the success of its study and
24report to determine whether additional regulations are appropriate.
25Therefore, this act properly balances the public’s right to access
26to public records in the possession of the board with the need for
27the state to obtain
otherwise private information.
If the Commission on State Mandates determines that
29this act contains costs mandated by the state, reimbursement to
30local agencies and school districts for those costs shall be made
31pursuant to Part 7 (commencing with Section 17500) of Division
324 of Title 2 of the Government Code.
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