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 ----------------------------------------------------------------- |Author: |Morrell | |----------+------------------------------------------------------| |Version: |February 18, 2016 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Mark Mendoza | |: | | ----------------------------------------------------------------- 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)) SB 1209 (Morrell) Page 2 of ? 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 of ? 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 SB 1209 (Morrell) Page 4 of ? 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. -- END --