BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1091
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                AB 1091 (Morrell) - As Introduced:  February 18, 2011 

          Policy Committee:                              Business and 
          Professions  Vote:                            9 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill revises the provisions which allow a licensed 
          contractor to replace the person on their license who has the 
          experience and examination requirements necessary to maintain 
          that license. Specifically, this bill:

          1)Requires a licensee to notify the Contractors' State License 
            Board (CSLB) within 90 days of a date of disassociation, if 
            the person who meets the licensing requirements is no longer 
            associated with the licensed entity. 

          2)Allows CSLB to offer one 90-day extension to allow a licensee 
            to replace the person listed in the CSLB records as meeting 
            the experience and examination requirements for the license 
            when that person is no longer associated with the license. 
           
          FISCAL EFFECT  

          Costs associated with this legislation are minor and absorbable 
          within existing CSLB resources. 

           COMMENTS 

           Rationale  . According to the sponsor, CSLB, under current law 
          there is little to discourage a licensee from failing to notify 
          CSLB in a timely manner when the individual who meets the 
          licensing requirements disassociates from that license. Under 
          current law, a licensee can notify the CSLB at any point after 
          someone disassociates from the license and that begins a 90-day 
          window for the licensee to replace that person.  In theory, a 
          licensee can notify CSLB a year after someone disassociates from 








                                                                  AB 1091
                                                                  Page  2

          their license and they still have a 90-day timeframe from that 
          point forward in which to replace the person. 

          This bill requires the licensed contractor to notify CSLB within 
          90-days of the initial date of a disassociation and then allows 
          CSLB to offer one 90-day extension. If a licensee fails to meet 
          this timeframe, their license will be suspended. 

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081