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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