BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       SB 1209|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 1209
          Author:   Morrell (R) 
          Amended:  4/6/16  
          Vote:     21 

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  8-0, 4/11/16
           AYES:  Hill, Berryhill, Block, Galgiani, Hernandez, Jackson,  
            Mendoza, Wieckowski
           NO VOTE RECORDED:  Bates

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   Contractors:  discipline


          SOURCE:    Contractors State License Board

          DIGEST:   This bill provides that citations issued against a  
          licensed contractor follow the contractor if issued another  
          license, and authorizes the disclosure of these citations within  
          existing disclosure timeframes.    


          ANALYSIS:  

          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.  The CSLB  
             is under the direction of the registrar of contractors.   
             (Business and Professions Code (BPC) § 7000 et seq.)








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          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))

          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.  

          Background

          The CSLB is responsible for implementation and enforcement of  
          the Contractors 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,  







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          or other structure in California must be licensed by the CSLB if  
          the total cost (labor and materials) of one or more contracts on  
          the project is $500 or more. 

          The CSLB licenses approximately 300,000 contractors in 44  
          license classifications and two certifications.  The 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 the 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 the CSLB; the  
          same person may serve as the qualifier for more than one  
          classification.  The CSLB also registers some 9,600 home  
          improvement salespersons who are engaged in the sale of home  
          improvement goods and services.

          The CSLB is the sponsor of this 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."  


           FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified4/25/16)


          Contractors State License Board (source)
          California Chapters of the National Electrical Contractors  
          Association
          California Legislative Council of the Plumbing
          Heating and Piping Industry 







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          Northern California Allied Traders
          United Contractors
          Wall and Ceiling Alliance


          OPPOSITION:   (Verified4/25/16)




          California Professional Association of Specialty Contactors 


          ARGUMENTS IN SUPPORT:     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."  


           ARGUMENTS IN OPPOSITION:     The California Professional  
          Association of Specialty Contactors (CPLPASC) writes that  
          "CALPASC appreciates the problem SB 1209 is trying to address,  
          and supports a very targeted solution.  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."


          Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
          4/27/16 15:57:25


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