BILL ANALYSIS
AB 1496
Page 1
Date of Hearing: April 21, 2009
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
AB 1496 (Skinner) - As Amended: April 14, 2009
(As Proposed to be Amended)
SUBJECT : Contractors: energy efficiency measures.
SUMMARY : Establishes civil penalties for unlicensed contractors
who fail to comply with energy efficiency standards, makes
specified changes to the regulation of licensed contractors, and
directs the Contractors State License Board (CSLB) to submit
specified reports to the Legislature relating to the regulation
of contractors. Specifically, this bill :
1)States the intent of the Legislature to enact legislation that
mitigates the urban heat island effect by reducing summertime
urban air temperatures. Reducing the effect of urban heat
islands will help address the impact of rising temperatures
associated with global warming, and will therefore improve air
quality, reduce energy use, and improve overall thermal
comfort.
2)Makes numerous legislative findings and declarations,
including the following:
a) The term "heat island" refers to urban air and surface
temperatures that are sometimes nearly 10 degrees
Fahrenheit higher than nearby rural areas. Pavement,
buildings, low reflective building roofs, and other
infrastructures that absorb the sun's radiation and trap
heat, result in increased temperatures in urban areas;
b) Distinguishes between urban heat islands and global
warming. Heat islands describe local-scale temperature
differences, generally between urban and rural areas.
Global warming refers to a gradual rise of the earth's
surface temperature; and,
c) California's building energy efficiency standards
include specifications for new construction, as well as
alterations and additions to existing buildings. Effective
application of these standards will increase the level of
energy efficiency of California's buildings and reduce the
AB 1496
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impacts of both urban heat islands and global warming.
Thus, California will increase its ability to cope with
warming from unavoidable climate changes.
3)Makes unlicensed contractors who fail to comply with specified
building energy efficiency standards, and responsible officers
and employees of a public entity that awards a contract to an
unlicensed contractor, subject to a civil penalty of not less
than $2,000.
4)Specifies that the failure of a licensee to comply with
building energy efficiency standards is subject to a
disciplinary action.
5)Specifies that a licensee who fails to obtain a building
permit, in specified circumstances, shall be subject to a
citation and a civil penalty of not less than $500.
6)Requires the CSLB, beginning July 1, 2011, and each fiscal
year thereafter, to compile data on the number of penalties
assessed by the board against licensees and unlicensed
contractors for failure to comply with specified standards and
to submit a report to the Legislature.
7)Requires the State Energy Resources Conservation and
Development Commission (SERCDC) to collaborate with the board
in identifying and investigating the failure of licensees and
unlicensed contractors to comply with these provisions.
EXISTING LAW :
1)Creates CSLB within the Department of Consumer Affairs, for
the purposes of licensing and regulating contractors in the
State of California.
2)Allows CSLB to bring disciplinary actions against a contractor
who willfully or deliberately violates building laws of the
state.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of the bill . According to the author's office,
"California's building energy efficiency standards specified in
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Part 6 of Title 24 of the California Code of Regulations include
specifications for cool roofing materials and other measures for
newly constructed buildings and alterations or additions to
existing buildings. Additionally it represents a state resource
for accomplishing increased building energy efficiency, not only
in newly constructed buildings but also in additions and
alterations to existing buildings. These standards are
recognized as leading the nation in energy savings and serving
as one of the primary energy policy tools that has resulted in
California's per capita energy use staying essentially constant
over the past 30 years while that of the rest of the United
States increased steadily.
"The effectiveness of the building energy efficiency standards
is dependent on the conscientious efforts of licensed
contractors in California to build buildings and install
equipment in compliance with the standards. Many buildings are
being reroofed without a permit. Contractors operating in the
underground economy are in flagrant violation of California
contracting law. In particular, contractors operating without a
license, and whether licensed or not, willfully and deliberately
fail to obtain a building permit and willfully and deliberately
fail to comply with the building laws of the state. It is
important that fines are imposed on licensed contractors who
fail to obtain a building permit on 'works of improvement' and
on individuals providing work without a contractor's license so
that we can all ensure energy efficiency standards are being
met."
Background . According to the CSLB, unlicensed contracting is
part of California's estimated annual $60-$140 billion
underground economy. Research conducted by the Department of
Industrial Relations, Economic and Employment Enforcement
Coalition (EEEC) shows that unlicensed contractors drive down
wages, undercut legitimate businesses, and avoid licensing
requirements, and it is often hard to find them and bring them
into compliance with state and local laws.
Prior Legislation. AB 2479 (Hancock) of 2008 was an identical
bill that the Governor vetoed. The Governor vetoed a
substantial number of bills that year with the same message
that, due to the delay in passing the 2008-09 State Budget, he
would only sign bills that were "the highest priority for
California." AB 2479 was vetoed for this reason.
AB 1496
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AB 785 (Hancock) of 2007 would have required the state to take
steps to minimize the energy consumption in urban areas. This
would be achieved by directing the CSLB, the State Air Resource
Board (ARB), and the SERCDC to submit specified reports to the
Legislature relating to the urban heat island effect. The bill
also made specified changes to the regulation of licensed
contractors and changed the definition of energy efficient
vehicles. AB 785 was vetoed by the Governor. AB 1496 only
contains the language from AB 785 which the Governor positively
highlighted in his veto message, as well as the recommended
penalties
Double-referred . This bill is double-referred to Assembly
Natural Resources Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B. & P. / (916) 319-3301