BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1209


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          Date of Hearing:  June 14, 2016


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                  Rudy Salas, Chair


                     SB 1209(Morrell) - As Amended April 6, 2016


          SENATE VOTE:  37-0


          SUBJECT:  Contractors:  discipline


          SUMMARY:  Provides that citations issued against a licensed  
          contractor follow the contractor if he or she is issued another  
          license and authorizes the disclosure of these citations within  
          existing disclosure timeframes.  


          EXISTING LAW:   


          1)Establishes the Contractors State License Board (CSLB) within  
            the Department of Consumer Affairs (DCA) to implement and  
            enforce the Contractors State License Law (CSLL); 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 CSLB if the total cost (labor and materials)  
            of one or more contracts on the project is $500 or more.   
            (Business and Professions Code (BPC) Section 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 Section 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 Section  
            7124.6 (e)(2))


          THIS BILL: 


          4)Requires that any disclosure pursuant to BPC Section 7124.6(e)  
            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.


          5)Extends existing disclosure timeframes to this requirement.


          FISCAL EFFECT:  According to the Senate Appropriations  








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          Committee, pursuant to Senate Rule 28.8, this bill will result  
          in negligible state costs.


          COMMENTS:  


          Purpose.  This bill is sponsored by the  Contractors State  
          License Board  . This bill provides that citations issued against  
          a licensed contractor follow the contractor if he or she is  
          issued another license and authorizes the disclosure of these  
          citations within existing disclosure timeframes.


          According to the author, "[This bill] is a common sense consumer  
          protection bill that closes a loophole in current law.  
          Presently, the [CSLB] requires contractors to publicly disclose  
          any citation they have received within the past five years.  
          However, if a contractor obtains a new license, the citation  
          does not follow them, allowing bad actors to hide from consumers  
          any citations they may have received. This bill closes that  
          loophole, providing for greater consumer confidence."


          Background.  The CSLB licenses approximately 300,000 contractors  
          in 44 license classifications and two certifications.  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  








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          improvement salespersons who are engaged in the sale of home  
          improvement goods and services.


          Disclosure.  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.  This bill requires that these disclosures follow  
          the person to whom the citation was noticed so that they also  
          appear on the license record of any other license he or she  
          files.


          ARGUMENTS IN SUPPORT: 


          The  Contractors State License Board  writes in support, "[This  
          bill] furthers the public protection goal of existing law, by  
          enhancing the disclosure to the public regarding contractors who  
          have been discipline by CSLB."


          REGISTERED SUPPORT:


          Contractors State License Board (sponsor)


          REGISTERED OPPOSITION:


          None on file.


          Analysis Prepared by:Gabby Nepomuceno / B. & P. / (916) 319-3301











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