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  








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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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