BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 1209 Hearing Date: April 4,
2016
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|Author: |Morrell |
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|Version: |February 18, 2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Mark Mendoza |
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Subject: Contractors: discipline
SUMMARY: Provides that citations issued against a licensed
contractor follow the contractor if issued another license;
authorizes the disclosure of these citations within existing
disclosure timeframes.
Existing law:
1) Provides for the licensure and regulation of more than
300,000 contractors under the Contractors State License Law
(Contractors Law) by the Contractors State License Board
(CSLB) within the Department of Consumer Affairs (DCA). The
CSLB is under the direction of the registrar of contractors
(Registrar). (Business and Professions Code (BPC) § 7000 et
seq.)
2) Requires that citations be disclosed from the date of
issuance and for five years after the date of compliance if
no additional disciplinary actions have been filed against
the licensee during the five-year period. If additional
disciplinary actions were filed against the licensee during
the five-year period, all disciplinary actions are required
to be disclosed for as long as the most recent disciplinary
action is subject to disclosure under the section. At the
end of the specified time period, those citations will no
longer be disclosed. (BPC § 7124.6 (e)(1))
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3) Requires that accusations that result in suspension, stayed
suspension, or stayed revocation of the contractor's license
be disclosed from the date the accusation is filed and for
seven years after the accusation has been settled, including
the terms and conditions of probation if no additional
disciplinary actions have been filed against the licensee
during the seven-year period. If additional disciplinary
actions were filed against the licensee during the seven-year
period, all disciplinary actions will be posted for as long
as the most recent disciplinary action is subject to
disclosure under this section. At the end of the specified
time period, those accusations will no longer be disclosed.
(BPC § 7124.6 (e)(2))
This bill:
1) Expands CSLB's existing citation disclosure requirements for
licensees if the following criteria are met:
a) The other license was issued, or was associated with the
license subject to the citation, on or after the date of
the act or omission that led to the issuance of the
citation; and
b) The other license includes a member of the personnel of
record who, at the time of the act or omission that led to
the issuance of the citation, was identified as a qualifier
of the license subject to the citation.
2) Extends existing disclosure timeframes to this requirement.
FISCAL
EFFECT: Unknown. This bill is keyed "fiscal" by Legislative
Counsel.
COMMENTS:
1. Purpose. The CSLB is the sponsor of the bill. According to
the Author, "BPC § 7124.6 (e)(1) limits disclosure of a
citation only to the license subject to a complaint
substantiating that citation. Once that citation is
disclosed, BPC § 7124.6 does not extend that disclosure to
licenses obtained or joined by persons thereafter."
SB 1209 (Morrell) Page 3
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The CSLB believes that, "this bill extends CSLB's existing
citation disclosure requirements, by requiring the disclosure
to additionally appear on a license that was issued, or
associated with the license subject to the citation, on or
after the act that led to the issuance of the citation, if
that other license includes a member of the personnel of
record that was identified as a qualifier on the original
license when the act that led to the citation occurred."
2. Background. The CSLB is responsible for implementation and
enforcement of the Contractors State License Law, including
the laws and regulations related to the licensure, practice,
and discipline of the construction industry in California.
All businesses and individuals who construct or alter, or
offer to construct or alter, any building, highway, road,
parking facility, railroad, excavation, or other structure in
California must be licensed by the Board if the total cost
(labor and materials) of one or more contracts on the project
is $500 or more.
The Board licenses approximately 300,000 contractors in 44
license classifications and two certifications. CSLB issues
some 15,000 licenses each year, and more than 121,000
licenses are renewed each year. A license may be issued to
an individual, partnership, corporation, limited liability
company, or joint venture. All licenses must have a
qualifying individual (also referred to as "qualifier"). A
qualifying individual is the person listed on CSLB records
who satisfies the experience and examination requirements for
a license. Depending on the type of license, the qualifying
individual must be designated as an owner, responsible
managing employee, responsible managing officer, responsible
managing manager, responsible managing member, or qualifying
partner in the license records. A qualifying individual is
required for every classification and on each license issued
by CSLB; the same person may serve as the qualifier for more
than one classification. The Board also registers some 9,600
home improvement salespersons who are engaged in the sale of
home improvement goods and services.
3. Disclosure Issue. Current law limits disclosure of a
citation only to the license subject to a complaint
substantiating that citation. Once that citation is
disclosed, existing law does not extend that disclosure to
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licenses obtained or joined by persons thereafter.
By allowing complaints to follow a licensee who may drop an
existing license and apply for a new license, CSLB can inform
and protect the public by disclosing citations issued to that
contractor.
SUPPORT AND OPPOSITION:
Support:
Contractors State License Board (Sponsor)
Opposition:
None on file as of March 29, 2016.
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