BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 560|
|Office of Senate Floor Analyses | |
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UNFINISHED BUSINESS
Bill No: SB 560
Author: Monning (D)
Amended: 8/17/15
Vote: 21
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 4/13/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 35-0, 4/30/15
AYES: Allen, Anderson, Bates, Beall, Berryhill, Block,
Cannella, De León, Fuller, Gaines, Galgiani, Hall, Hancock,
Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu,
McGuire, Mendoza, Mitchell, Monning, Moorlach, Nguyen,
Nielsen, Pan, Pavley, Roth, Stone, Wieckowski, Wolk
NO VOTE RECORDED: Hernandez, Morrell, Runner, Vidak
ASSEMBLY FLOOR: 78-0, 8/27/15 (Consent) - See last page for
vote
SUBJECT: Licensing boards: unemployment insurance
SOURCE: Contractors State License Board
DIGEST: This bill requires a licensing board, including the
State Bar and the Bureau of Real Estate, to provide personal
information regarding licensees to the Employment Development
Department (EDD) upon request. This bill also authorizes the
Contractors State License Board's enforcement representatives to
issue a written notice to appear before a court to unlicensed
individuals who fail to secure workers' compensation insurance.
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Assembly Amendments add the provisions related to personal
information about licensees being provided to EDD and make other
technical changes.
ANALYSIS:
Existing law:
1)Establishes an enforcement division in the Contractor's State
License Board (CSLB) and requires the unit to rigorously
enforce the Contractors Law prohibiting all forms of
unlicensed activity. (BPC § 7011.4 (a))
2)Authorizes an unlicensed contractor to advertise for
construction work only if the advertisement states that he or
she is not licensed. (BPC § 7027.2)
3)Makes it a misdemeanor for an unlicensed contractor to
advertise for construction or work or improvements or act in
the capacity of a contractor. Imposes specified civil
penalties, including fines and imprisonment against the
unlicensed contractor and authorizes CSLB to cite the
unlicensed contractor. (BPC § 7028)
4)Requires CSLB to initiate a disciplinary action against a
licensee within 180 days of receipt of a certified copy of the
Labor Commissioner's finding of a willful or deliberate
violation of the Labor Code by a licensee. (BPC § 7110.5)
5)Authorizes CSLB enforcement division to have free access to
all places of labor when participating in the enforcement
activities of the Joint Enforcement Strike Force on the
Underground Economy (JESF). (BPC § 7011.4 (c))
6)Establishes the JESF to coordinate efforts in targeting tax
evasion and cash-pay violations, and authorizes the sharing of
investigative and enforcement capabilities between JESF
participants. (Unemployment Insurance Code § 329)
This bill:
1)Requires a licensing board, including the State Bar and the
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Page 3
Bureau of Real Estate, to provide personal information
regarding licensees to the EDD upon request.
2)Authorizes the CSLB Enforcement Division to additionally issue
written notices to unlicensed contractors to appear in court
for failure to secure workers' compensation insurance.
3)Makes other technical changes.
Background
Statewide Investigative Fraud Team (SWIFT). Unlicensed
contractor activity comprises part of an estimated $60 to $140
billion annual underground economy that takes money away from
healthcare, roads, and schools. To combat unlicensed activity,
CSLB developed SWIFT. This team seeks to identify and shut down
unlicensed operators in the construction industry by setting up
stings throughout the state. The unit has the authority to
visit any job site without evidence, and ask contractors to
produce proof of licensure in good standing, citing those who
are not properly licensed. While SWIFT enforcement
representatives are able to issue written notices to appear when
it is found that a contractor is operating without a license,
they do not have the authority to issue one when it is
discovered that the unlicensed contractor does not have workers'
compensation insurance. This bill seeks to ensure that CSLB can
issue a notice to appear for this violation.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Assembly Appropriations Committee, this bill
results in minor and absorbable costs to the licensing boards to
provide information to EDD and minor and absorbable costs to
CSLB to enhance their enforcement activities.
SUPPORT: (Verified8/28/15)
Contractors' State License Board (source)
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Page 4
Air Conditioning Sheet Metal Association
Air-Conditioning & Refrigeration Contractors Association
California Chapters of the National Electrical Contractors
Association
California Legislative Conference of the Plumbing, Heating, and
Piping Industry
California Professional Association of Specialty Contractors
Construction Employers' Association
Finishing Contractors Association of Southern California
United Contractors
Western Line Constructers
OPPOSITION: (Verified8/28/15)
None received
ARGUMENTS IN SUPPORT: CSLB supports this bill, noting that it
will allow CSLB to additionally cite for not having Workers
Compensation insurance to allow that violation of law to become
part of the case that is forwarded to the local district
attorney for prosecution. The CSLB believes that failure to
adequately insure employees against work-related injuries is a
significant component of the underground economy and this bill
provides an additional tool to help address this problem.
ASSEMBLY FLOOR: 78-0, 8/27/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Beth Gaines, Gallagher, Cristina Garcia,
Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,
Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,
Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,
Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Wood, Atkins
NO VOTE RECORDED: Frazier, Williams
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Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
8/28/15 15:34:59
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