BILL ANALYSIS
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|Hearing Date:June 14, 2010 |Bill No:AB |
| |2419 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Gloria Negrete McLeod, Chair
Bill No: AB 2419Author:Cook
As Amended:May 6, 2010 Fiscal: Yes
SUBJECT: Contractors.
SUMMARY: Makes minor, non-substantive and technical changes relating
to the Contractors' State License Law and in other related state laws.
Existing law:
1)Licenses and regulates more than 250,000 contractors under the
Contractors' State License Law by the Contractors' State License
Board (CSLB) within the Department of Consumer Affairs (DCA). The
CSLB is under the direction of the registrar of contractors
(Registrar).
2)Authorizes the CSLB to issue licenses to a contracting business in
three different branches, generally identified by letter
identification; A - general engineering contracting, B - general
building contracting, and C - specialty contracting.
3)Provides that a specialty contractor is a contractor whose operations
involve the performance of construction work requiring special skill
and whose principal contracting business involves the use of
specialized building trades or crafts, and authorizes CSLB to adopt
reasonably necessary rules and regulations for the classification of
specialty contractors in a manner consistent with established usage
and procedure as found in the construction business, and to limit
their field and scope of operations to those to which he or she is
classified and qualified to engage, as defined.
4)Makes inoperative and repeals (sunsets) the provisions providing for
the CSLB and the Registrar on January 1, 2011.
AB 2419
Page 2
This bill:
1)Renames the Contractors' State License Law the "Contractors State
License Law," and renames the Contractors' State License Board the
"Contractors State License Board."
2)Revises and renames contractor classification titles to conform with
current usage.
3)Makes technical, nonsubstantive, and conforming changes related to
these provisions.
FISCAL EFFECT: The Assembly Appropriations Committee analysis, dated
April 28, 2010, indicates that there are no significant costs
associated with this bill.
COMMENTS:
1)Purpose. This bill is sponsored by the CSLB in order to make minor,
technical changes to the Contractors State License Law.
2)Background. CSLB issues licenses to contractors who meet safety and
experience requirements within their field, as well as home
improvement salespersons. There are more than 316,000 licensed
contractors in the state in 43 different licensing classifications.
In addition to educating consumers about contractors and
construction law, the CSLB administers examinations to test
prospective licensees, issues licenses, investigates complaints
against licensed and unlicensed contractors, issues citations,
suspends or revokes licenses, and seeks administrative, criminal,
and civil sanctions against violators.
The CSLB was established in 1929 as the Contractors License Bureau
under the Department of Professional and Vocational Standards.
Today it is part of the DCA. A 15-member board appoints the CSLB's
executive officer (the Registrar of Contractors) and directs
administrative policy for the agency's operations. The board
includes nine public members (eight noncontractors and one local
building official), five contractors and one labor representative.
Appointments are made by the Governor and the Legislature.
The Registrar oversees more than 400 employees, who are distributed
among the headquarters office in Sacramento and field offices
throughout the state.
AB 2419
Page 3
The CSLB's Statewide Investigative Fraud Team (SWIFT) focuses on the
underground economy and on unlicensed contractors. This unit
conducts stings and sweeps to help curtail illegal contracting by
citing those who are not licensed.
During the upcoming Interim Recess (Fall of 2010) the Chair of this
Committee has expressed the intention of conducting sunset review
hearings of the CSLB, as well as several other boards and bureaus
under DCA.
3)This Measure Does Not Inadvertently Repeal the Protection of the
Public Provision. Committee staff has been asked about the
provision in this bill which repeals Section 7000.6 of the Business
and Professions Code as added by AB 269 (Chapter 107, Statutes of
2002). That section declares that protection of the public shall be
the highest priority of the CSLB in exercising its licensing,
regulatory and disciplinary functions; and that whenever protection
of the public is inconsistent with other interests sought to be
promoted, the protection of the public shall be paramount.
It is important to note that in reality the bill does not repeal this
provision. The bill's basic purpose is to change the term in the
board's name from Contractors' to Contractors (remove the
apostrophe). In making this amendment, Legislative Counsel noted
that there are technically two identical Sections 7000.6. One added
by SB 1953 (Figueroa, Chapter 744, Statutes of 2002) and one added
the same year by AB 269 (Correa, Chapter 107, Statutes of 2002).
Both bills separately added the new section and neither were made
contingent upon the enactment of the section in the other bill.
Therefore, amending one section 7000.6 does not amend the other.
Therefore, Counsel drafted the bill to amend one section and repeal
the other one. The bill amends Section 7000.6 as added by SB 1953
(Chapter 744, Statutes of 2002) and repeals the earlier chaptered
Section 7000.6 as added by AB 269 (Chapter 107, Statutes of 2002).
Therefore the "protection of the public" declaration in Section
7000.6 will remain in the licensing law if this bill is enacted.
4)Arguments in Support. According to the sponsor, CSLB, "Very simply
stated, AB 2419 is cleanup legislation. It would correct
grammatical and spelling errors that have accumulated in the
Contractors State License Law over many years. It would also change
the punctuation within CSLB's formal title so that it is consistent
with established usage, and provides other clarifying amendments in
the license law."
5)Technical Amendments to be Made After this Committee. Committee
AB 2419
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Staff notes that this bill needs several technical amendments. Due
to their nature and coordination with other legislation, it is
recommended that the amendments be made later in the legislative
process.
a) Chaptering Amendments . Legislative Counsel has identified a
number of bills that are in conflict with this bill. As these
bills move through the legislative process, it will be necessary
to amend this, and perhaps other bills to protect provisions of
the various bills and to resolve chaptering issues.
b) Conforming Amendments . The bill changes the name of the CSLB
in Section 26509 of the Government Code. That section also makes
reference to a number of other regulatory boards and bureaus, and
should be corrected to accurately reflect the names of the
Cemetery and Funeral Bureau; the Bureau of Electronic and
Appliance Repair, Home Furnishings, Thermal Insulation, and the
Board for Geologists and Geophysicists.
SUPPORT AND OPPOSITION:
Support:
Contractors State License Board (Sponsor)
Opposition:
None received as of June 9, 2010
Consultant:G. V. Ayers