BILL ANALYSIS
AB 1496
Page 1
Date of Hearing: April 27, 2009
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Nancy Skinner, Chair
AB 1496 (Skinner) - As Amended: April 20, 2009
SUBJECT : Contractors: energy efficiency measures.
SUMMARY : Establishes civil penalties for unlicensed contractors
who fail to comply with energy efficiency standards, strengthens
the regulation of licensed contractors, and directs the
Contractors State License Board (CSLB) to report specified
information regarding the regulation of contractors to the
Legislature.
EXISTING LAW :
1)Creates CSLB within the Department of Consumer Affairs for the
purposes of licensing and regulating contractors.
2)Allows CSLB to bring disciplinary action against a contractor
who willfully or deliberately violates building standards.
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 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.
3)Specifies that the failure of a licensee to comply with
building energy efficiency standards is subject to
disciplinary action.
4)Specifies that a licensee who fails to obtain a building
permit, in specified circumstances, shall be subject to
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citation and a civil penalty of not less than $500.
5)Requires CSLB, beginning July 1, 2011, and each fiscal year
thereafter, to compile data on the number of penalties
assessed against licensees and unlicensed contractors and to
submit a report to the Legislature.
6)Requires the California Energy Commission (CEC) to collaborate
with CSLB to identify and investigate the failure of licensees
and unlicensed contractors to comply with these provisions.
FISCAL EFFECT : Unknown
COMMENTS :
1)Background
According to 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.
2)Purpose of the bill
According to the author's office, "California's building energy
efficiency standards specified in 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 the rest of the United States increased steadily."
The author notes that the effectiveness of building energy
efficiency standards is dependent on the conscientious efforts
of licensed contractors to construct and install energy
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efficiency measures in compliance with the standards.
Contractors operating in the underground economy are in flagrant
violation of California contracting law. For example, many
buildings re-roofed without appropriate permits. "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 ensure all energy efficiency standards are being
met."
3)Prior Legislation
a) AB 2479 (Hancock) of 2008 was identical to this bill.
It was one of a substantial number of bills the Governor
vetoed with the same message, which stated that due to the
delay in passing the 2008-09 State Budget, he would only
sign bills that were "the highest priority for California."
b) 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 CSLB, the State
Air Resource Board (ARB), and CEC 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 that the Governor positively highlighted in his veto
message, as well as the recommended penalties.
4)Double referral
This bill was heard in the Assembly Committee on Business and
Professions on April 21st. It passed on a vote of 7-1.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
AB 1496
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None on file
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092