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.
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 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, or settlement payments of 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 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
7defined in Section 6302 of the Labor Code, taken by the division
P4 1against a contractor, along with any other information the division
2may possess regarding a contractor, is timely reported to the board.
3(b) By January 1, 2018, the board shall enter into an interagency
4agreement with any other state or local agency the board deems
5to be in possession of any information relevant to its priority to
6protect the public described in
Section 7000.6.
Section 7071.18 is added to the Business and
8Professions Code, to read:
(a) Notwithstanding any other law, a licensee shall
10report to the registrar in writing the occurrence of any of the
11following within 90 days after the licensee obtains knowledge of
12the event:
13(1) The conviction of the licensee for any felony.
14(2) The conviction of the licensee for any other crime that is
15substantially related to the qualifications, functions, and duties of
16a licensed contractor.
17(b) (1) The board shall consult with licensees and consumers
18in order to prepare a study of judgments, arbitration awards,
and
19settlements that were the result of claims for construction defects
20for rental residential units and, by January 1, 2018, shall report to
21the Legislature the results of this study to determine if the board’s
22ability to protect the public as described in Section 7000.6 would
23be enhanced by regulations requiring licensees to report judgments,
24arbitration
awards, or settlement payments of those claims.
25Participation by licensees and consumers shall be voluntary. The
26study shall include, but not be limited to, criteria used by insurers
27or others to differentiate between settlements that are for nuisance
28value and those that are not, whether settlement information or
29other information can help identify licensees who may be subject
30to an enforcement action, if there is a way to separate
31subcontractors from general contractors when identifying licensees
32who may be subject to an enforcement action, whether reporting
33should be limited to settlements resulting from construction defects
34that resulted in death or injury, the practice of other boards within
35the department, and any other criteria considered reasonable by
36the board. The board shall submit the report to the Legislature in
37accordance with Section 9795 of the Government
Code.
38(2) Records or documents obtained by the board during the
39course of implementing this subdivision that are exempt from
40public disclosure under the California Public Records Act (Chapter
P5 13.5 (commencing with Section 6250) of Division 7 of Title 1 of
2the Government Code) shall remain exempt from disclosure
3pursuant to that act.
Section 18924.5 is added to the Health and Safety
5Code, to read:
(a) The California Building Standards Commission
7shall convene a working group to investigate existing building
8standards associated with the construction, inspection, and
9maintenance of exterior elevated elements.
10(b) The working group shall include, but not be limited to,
11representatives frombegin delete the Department of Housing and Community begin insert
state government entities, building
12Development, the Division of the State Architect--Structural
13Safety, the Office of the State Fire Marshal, local building officials
14and plan checkers, structural engineers, apartment owners and
15managers, building industry, wood, steel and concrete industries,
16and any other interested parties.end delete
17officials, engineers, construction industry, and any other interested
18parties.end insert
19(c) The working group shall review related documents and
20
reports, including, but not limited to, forensic reports related to
21exterior elevated element failures in California, reports and studies
22used in the development of national and state building codes, and
23any other material deemed relevant to determine if any changes
24need to be made to the construction specifications or inspection
25requirements, excluding routine inspections that occur after project
26completion, contained within the California Building Standards
27Code.
28(d) (1) By January 1, 2018, the working group shall report to
29the California Building Standards Commission any findings and
30possible recommendations for statutory changes or changes to the
31California Building Standards Code. By January 1, 2018, the
32working group shall also provide that report to the Senate
33Committee on Business, Professions
and Economic Development.
34(2) Notwithstanding paragraph (1), if, at any time, it is
35determined by the working group that one or more changes to the
36California Building Standards Code are needed as soon as possible
37in order to protect the public, the working group shall submit the
38proposed changes to the California Building Standards Commission
39for consideration as soon as possible.
The Legislature finds and declares that Section 2 of
2this act, which adds Section 7071.18 to the Business and
3Professions Code, imposes a limitation on the public’s right of
4access to the meetings of public bodies or the writings of public
5officials and agencies within the meaning of Section 3 of Article
6I of the California Constitution. Pursuant to that constitutional
7provision, the Legislature makes the following findings to
8demonstrate the interest protected by this limitation and the need
9for protecting that interest:
10By allowing records and documents exempt from disclosure to
11be shared with the Contractors’ State License Board and remain
12nonpublic
under the Public Records Act, the act adding this section
13would encourage private individuals and entities to provide the
14board with information that is vital to the success of its study and
15report to determine whether additional regulations are appropriate.
16Therefore, this act properly balances the public’s right to access
17to public records in the possession of the board with the need for
18the state to obtain otherwise private information.
If the Commission on State Mandates determines that
20this act contains costs mandated by the state, reimbursement to
21local agencies and school districts for those costs shall be made
22pursuant to Part 7 (commencing with Section 17500) of Division
234 of Title 2 of the Government Code.
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