BILL NUMBER: SB 465 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 15, 2016
AMENDED IN ASSEMBLY AUGUST 1, 2016
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 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 This bill
would require the board to 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, report to
the Legislature the results of a the
study to determine if the board's ability to protect the public would
be enhanced by regulations requiring licensees to report judgments,
arbitration awards against them, awards,
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. those
claims. This bill would specify that participation in the study by
licensees and consumers is voluntary. 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 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
potentially involving or involving a serious injury or illness, as
defined in Section 6302 of the Labor Code, taken by the division
against a contractor, along with any other information the division
may possess regarding a 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 The
board shall 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, shall
report to the Legislature the results of a
this study to determine if the board's 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, awards, 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.
those claims. Participation by licensees and consumers
shall be voluntary. 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, whether settlement information or other information can help
identify licensees who may be subject to an enforcement action, if
there is a way to separate subcontractors from general contractors
when identifying licensees who may be subject to an enforcement
action, whether reporting should be limited to settlements resulting
from construction defects that resulted in death or injury, 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) Records or documents obtained by the board during the course
of implementing this subdivision that are exempt from public
disclosure under the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) shall remain exempt from disclosure pursuant to that
act.
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:
By allowing records and documents exempt from disclosure to be
shared with the Contractors' State License Board and remain nonpublic
under the Public Records Act, the act adding this section would
encourage private individuals and entities to provide the board with
information that is vital to the success of its study and report to
determine whether additional regulations are appropriate. Therefore,
this act properly balances the public's right to access to public
records in the possession of the board with the need for the state to
obtain otherwise private information.
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.