BILL ANALYSIS Ó SB 1209 Page 1 Date of Hearing: June 29, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1209 (Morrell) - As Amended April 6, 2016 ----------------------------------------------------------------- |Policy |Business and Professions |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: 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. FISCAL EFFECT: SB 1209 Page 2 Negligible state fiscal impact. COMMENTS: 1)Purpose. According to the author, "This bill is a common sense consumer protection bill that closes a loophole in current law. Presently, the Contractors State License Board (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." The bill is sponsored by CSLB and is intended to enhance the disclosure to the public regarding contractors who have been disciplined by CSLB. 2)Background. 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. 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 listed on CSLB records who satisfies the experience and examination requirements for a license. The same person may serve as the qualifier for more than one classification. SB 1209 Page 3 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081