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 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.
begin deleteBy January 1, 2018, this end deletebegin insertThisend insert bill would require the board tobegin insert consult with licensees and consumers in order to prepare a study of judgments, arbitration awards, and settlements that were the result of claims for construction defects for rental residential units and, by January 1, 2018,end insert report to the Legislature the results ofbegin delete aend deletebegin insert theend insert
study to determine if the board’s ability to protect the public would be enhanced by regulations requiring licensees to report judgments, arbitrationbegin delete awards against them,end deletebegin insert awards,end insert or settlement payments ofbegin delete 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.end deletebegin insert those claims. This bill would specify that participation in the study by licensees and consumers is voluntary.end insert The bill would 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.
(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
6potentially involving or involving a serious injury or illness, as
P4 1defined in Section 6302 of the Labor Code, taken by the division
2against a contractor, along with any other information the division
3may possess regarding a contractor, is timely reported to the board.
4(b) By January 1, 2018, the board shall enter into an interagency
5agreement with any other state or local agency the board deems
6to be in possession of any information relevant to its priority to
7protect the public
described in Section 7000.6.
Section 7071.18 is added to the Business and
9Professions Code, to read:
(a) Notwithstanding any other law, a licensee shall
11report to the registrar in writing the occurrence of any of the
12following within 90 days after the licensee obtains knowledge of
13the event:
14(1) The conviction of the licensee for any felony.
15(2) The conviction of the licensee for any other crime that is
16substantially related to the qualifications, functions, and duties of
17a licensed contractor.
18(b) (1) begin deleteBy January 1, 2018, the end deletebegin insertThe
end insertboard shallbegin insert consult with
19licensees and consumers in order to prepare a study of judgments,
20arbitration awards, and settlements that were the result of claims
21for construction defects for rental residential units and, by January
221, 2018, shallend insert report to the Legislature the results ofbegin delete aend deletebegin insert thisend insert study
23to determine if the board’s ability to protect the public as described
24in Section 7000.6 would be enhanced by regulations requiring
25licensees to report judgments, arbitrationbegin delete awards against them,end delete
26begin insert
awards,end insert or settlement payments ofbegin delete claims for construction defects begin insert those claims. Participation by licensees and consumers
27they have made in excess of a certain amount to be determined by
28the board. The board shall consult with licensees, insurers,
29consumers, and other interested parties during the development of
30the study.end delete
31shall be voluntary.end insert The study shall include, but not be limited to,
32criteria used by insurers or others to differentiate between
33settlements that are for nuisance value and those that are not,
34whether settlement information or other information can help
35identify licensees who may be subject to an enforcement action,
36if there is a way to separate subcontractors from
general contractors
37when identifying licensees who may be subject to an enforcement
38action, whether reporting should be limited to settlements resulting
39from construction defects that resulted in death or injury, the
40practice of other boards within the department, and any other
P5 1criteria considered reasonable by the board. The board shall submit
2the report to the Legislature in accordance with Section 9795 of
3the Government Code.
4(2) Records or documents obtained by the board during the
5course of implementing this subdivision that are exempt from
6public disclosure under the California Public Records Act (Chapter
73.5 (commencing with Section 6250) of Division 7 of Title 1 of
8the Government Code) shall remain exempt from disclosure
9pursuant to that act.
Section 18924.5 is added to the Health and Safety
11Code, to read:
(a) The California Building Standards Commission
13shall convene a working group to investigate existing building
14standards associated with the construction, inspection, and
15maintenance of exterior elevated elements.
16(b) The working group shall include, but not be limited to,
17representatives from the Department of Housing and Community
18Development, the Division of the State Architect--Structural
19Safety, the Office of the State Fire Marshal, local building officials
20and plan checkers, structural engineers, apartment owners and
21managers, building industry, wood, steel and concrete industries,
22and any other interested parties.
23(c) The working group shall review related documents and
24
reports, including, but not limited to, forensic reports related to
25exterior elevated element failures in California, reports and studies
26used in the development of national and state building codes, and
27any other material deemed relevant to determine if any changes
28need to be made to the construction specifications or inspection
29requirements, excluding routine inspections that occur after project
30completion, contained within the California Building Standards
31Code.
32(d) (1) By January 1, 2018, the working group shall report to
33the California Building Standards Commission any findings and
34possible recommendations for statutory changes or changes to the
35California Building Standards Code. By January 1, 2018, the
36working group shall also provide that report to the Senate
37Committee on Business, Professions
and Economic Development.
38(2) Notwithstanding paragraph (1), if, at any time, it is
39determined by the working group that one or more changes to the
40California Building Standards Code are needed as soon as possible
P6 1in order to protect the public, the working group shall submit the
2proposed changes to the California Building Standards Commission
3for consideration as soon as possible.
The Legislature finds and declares that Section 2 of
5this act, which adds Section 7071.18 to the Business and
6Professions Code, imposes a limitation on the public’s right of
7access to the meetings of public bodies or the writings of public
8officials and agencies within the meaning of Section 3 of Article
9I of the California Constitution. Pursuant to that constitutional
10provision, the Legislature makes the following findings to
11demonstrate the interest protected by this limitation and the need
12for protecting that interest:
13By allowing records and documents exempt from disclosure to
14be shared with the Contractors’ State License Board and remain
15nonpublic
under the Public Records Act, the act adding this section
16would encourage private individuals and entities to provide the
17board with information that is vital to the success of its study and
18report to determine whether additional regulations are appropriate.
19Therefore, this act properly balances the public’s right to access
20to public records in the possession of the board with the need for
21the state to obtain otherwise private information.
If the Commission on State Mandates determines that
23this act contains costs mandated by the state, reimbursement to
24local agencies and school districts for those costs shall be made
25pursuant to Part 7 (commencing with Section 17500) of Division
264 of Title 2 of the Government Code.
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