BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1496
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 1496 (Skinner) - As Amended:  April 20, 2009 

          Policy Committee:                              Business and  
          Profession   Vote:                            7-1
                        Natural Resources                     8-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill establishes sanctions for contractors who fail to  
          comply with energy efficiency standards. Specifically, this  
          bill:

          1)Subjects an unlicensed contractor who fails to comply with  
            building energy efficiency to a civil penalty of at least  
            $2,000 in addition to any other penalties allowable under  
            current law.

          2)Makes failure of a licensed contractor to comply with energy  
            efficiency standards grounds for disciplinary action.

          3)Makes a licensee, who fails to obtain a permit prior to  
            performing work involving energy efficiency standards, subject  
            to a citation and civil penalty of at least $500.

          4)Requires the Contractors' State License Board (CSLB),  
            commencing January 1, 2010 and annually thereafter, to report  
            the number of civil penalties issued pursuant to (1) and (3)  
            above.

          5)Requires the California Energy Commission (CEC) to collaborate  
            with the CSLB to identify and investigate the failure of  
            contractors to comply with building energy efficiency  
            standards.

           FISCAL EFFECT  

          1)Minor absorbable special costs to the CSLB for additional  








                                                                  AB 1496
                                                                  Page  2

            enforcement and the annual report, offset to some extent by  
            additional revenue from civil penalties.

          2)Ongoing special fund costs of about $250,000 to the CEC for  
            two staff to assist the CSLB with enforcement. [Energy  
            Resources Programs Account]

           COMMENTS  

           1)Purpose  . According to the author, effective application of  
            California's building energy efficiency standards will  
            increase energy efficiency and reduce the impact of global  
            warming.

            "To realize this goal, energy efficiency standards must be  
            enforced.  Contractors should be installing products that help  
            reduce energy consumption, such as cool roofing material or  
            having ducts tested for leaks when a central air conditioner  
            or furnace is installed or replaced as is required by  
            California regulations."

           2)Prior Legislation  .  In 2008, an almost identical bill, AB 2479  
            (Hancock) was one of numerous bills summarily vetoed by the  
            governor without a stated objection.

            In 2007, a bill that included similar provisions, AB 785  
            (Hancock) was vetoed due to other provisions that the governor  
            found objectionable. In his veto message, the governor  
            positively commented on the provisions of that bill that are  
            included in AB 1496.
           
          Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081