Amended in Assembly August 29, 2016

Amended in Assembly August 19, 2016

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

Senate Bill No. 465

Introduced by Senators Hill and Hancock

February 25, 2015

An act to add Sections 7021 and 7071.18 to the Business and Professions Code, begin delete and end delete to add begin insert and repeal end insert Section 18924.5 begin delete to end delete begin insert of end insert the Health and Safety Code, begin insert and to amend Section 6313.5 of the Labor Code, end insert 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. begin insert Existing law requires the division to transmit to the Registrar of Contractors copies of any reports made in any investigation, as specified, and authorizes the division, upon its own motion or upon request, to transmit copies of any other reports made in any investigation conducted involving a licensed contractor. end insert

This begin delete bill, by January 1, 2018, end delete begin insert bill end insert would begin insert instead end insert require the begin delete board to enter into an interagency agreement with the end delete Division of Occupational Safety and begin delete Health to ensure that specified disciplinary information relating to a contractor is timely reported to the board. end delete begin insert Health, after consultation with the board, to transmit to the board copies of any citations or other actions taken by the division against a contractor, as defined. end insert The begin delete bill, by January 1, 2018, end delete begin insert bill end insert would begin delete also require end delete begin insert authorize end insert 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. begin delete By requiring a local agency to enter into an interagency agreement with the board, the bill would impose a state-mandated local program. end delete

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 begin delete licensees and consumers end delete begin insert licensees, consumers, and other interested stakeholders end insert 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 begin delete bill end delete begin insert bill, until January 1, 2018, end insert would require the begin insert working group formed by the end insert California Building Standards Commission to begin delete convene a specified working group to investigate existing building standards associated with the construction, inspection, and maintenance of end delete begin insert study recent end insert exterior elevated begin delete 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. end delete begin insert element failures in the state to submit a report to the appropriate policy committees of the Legislature containing any findings and possible recommendations for statutory or other changes to the California Building Standards Code and would require the working group to review related documents and reports, as specified. end insert 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 begin delete would end delete begin insert would, until January 1, 2018, end insert require the working group to submit the begin delete proposed end delete begin insert recommended end insert changes to the California Building Standards Commission for consideration as soon as begin delete possible. end delete begin insert possible, as specified. end insert

(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.

begin delete

(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.

end delete begin delete

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.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

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:

begin delete

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

end delete

begin insert

begin insert 7021. end insert   

end insert

begin insert The end insert board begin delete shall end delete begin insert may end insert 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) The board shall consult with begin delete licensees and consumers end delete
begin insert licensees, consumers, and other interested stakeholders end insert 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 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, or settlement payments of 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:

begin delete

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.

end delete

begin insert

begin insert 18924.5. end insert   

end insert begin insert

(a) By January 1, 2018, the working group formed
by the California Building Standards Commission to study recent
exterior elevated element failures in California shall submit a
report to the appropriate policy committees of the Legislature
containing any findings and possible recommendations for
statutory changes or changes to the California Building Standards
Code.

end insert begin insert

(b) The working group shall review related documents and
reports, including, but not limited to, any available 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 make
recommendations to the appropriate state agency or agencies for
the development of proposed building standards for exterior
elevated elements.

end insert begin delete

(b)

end delete

begin insert (c) end insert  The working group shall begin delete include, end delete begin insert solicit technical expertise
as appropriate from, end insert but not begin delete be end delete limited to, begin delete representatives from
state government entities, building officials, engineers, construction
industry, end delete begin insert 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, the building industry, the wood,
steel and concrete industries, end insert and any other interested parties.

begin delete

(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),

end delete

begin insert (d) end insert begin insert   end insert begin insert Notwithstanding the deadline in subdivision (a), end insert 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 begin delete proposed end delete begin insert recommended end insert changes to the begin delete California
Building Standards Commission end delete begin insert appropriate state agency or
agencies end insert for consideration as soon as begin delete possible. end delete begin insert possible according
to this part. end insert

begin insert

(e) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 6313.5 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

6313.5.  

The begin delete division end delete begin insert division, after consultation with the
Contractors’ State License Board, end insert shall transmit to the begin delete Registrar
of Contractors end delete begin insert Contractors’ State License Board end insert copies of any
begin delete reports made in any investigation conducted pursuant to subdivision
(a) of Section 6313, and may, upon its own motion or at the request
of the Registrar of Contractors, transmit copies of any other reports
made in any investigation conducted pursuant to subdivision (b)
of Section 6313 involving a contractor licensed pursuant to end delete
begin insert citations or other actions taken by the division against a contractor
as defined in end insert the begin delete Contractors end delete begin insert Contractors’ State end insert License Law
(Chapter 9 (commencing with Section 7000) of begin delete Divison end delete begin insert Division end insert
3 of the Business and Professions Code).

begin delete SEC. 4. end delete

begin insert SEC. 5. end insert   

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.

begin delete

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.

end delete