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 11,
2016
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|Author: |Morrell |
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|Version: |April 6, 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) Requires that any disclosure also appear on the license
record of any other license that includes a qualifier that is
listed on the personnel of record of the license that was
issued 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."
The CSLB believes that, "SB 1209 furthers the public protection
goal of existing law, by enhancing the disclosure to the
public regarding contractors who have been discipline by
CSLB."
2. Background. The CSLB is responsible for implementation and
enforcement of the Contractors State License Law, including
SB 1209 (Morrell) Page 3
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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
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.
4. Arguments in Opposition. The California Professional
Association of Specialty Contactors (CALPASC) writes that
"CALPASC appreciates the problem SB 1209 is trying to
address, and supports a very targeted solution.
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Unfortunately, SB 1209 is written too broadly at this time.
CALPASC suggests that amendments be made in the bill to limit
the disclosure of the citation information only for licenses
where the actual license qualifier is involved, and also only
where the license holder began applying for a new license
after the circumstances giving rise to the potential citation
were incurred. If these types of amendments were made to
this bill CALPASC would strongly support it."
SUPPORT AND OPPOSITION:
Support:
Contractors State License Board (Sponsor)
Opposition:
California Professional Association of Specialty Contactors
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