BILL ANALYSIS �
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THIRD READING
Bill No: AB 2554
Author: Bill Berryhill (R)
Amended: 3/27/12 in Assembly
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 9-0, 6/11/12
AYES: Price, Emmerson, Corbett, Correa, Hernandez, Negrete
McLeod, Strickland, Vargas, Wyland
ASSEMBLY FLOOR : 74-0, 4/26/12 (Consent) - See last page
for vote
SUBJECT : Contractors
SOURCE : Author
DIGEST : This bill provides that the revocation of a
license shall not deprive the Contractors State License
Board jurisdiction to proceed with disciplinary proceedings
against a licensee; makes technical updating and conforming
changes.
ANALYSIS :
Existing law:
1. Licenses and regulates contractors by the Contractors
State License Board (CSLB) within the Department of
Consumer Affairs (DCA) under the Contractors State
License Law. The registrar of contractors (Registrar)
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is the executive officer of the CSLB.
2. Establishes a separate enforcement unit in the CSLB and
requires the unit to rigorously enforce the Contractors
State License Law prohibiting all forms of unlicensed
activity.
3. Provides that persons employed as enforcement
representatives in the enforcement unit and designated
by the Director of DCA are not peace officers, are not
entitled to safety member retirement benefits, and do
not have the power of arrest. However, they may issue a
written notice to appear in court for misdemeanor
violations of the Contractors State License Law.
4. Specifies that the expiration, cancellation, forfeiture,
or suspension of a license by operation of law or by
order or decision of the Registrar or a court of law, or
the voluntary surrender of a license by a licensee,
shall not deprive the Registrar of jurisdiction to
proceed with any investigation of or action or
disciplinary proceeding against the license, or to
render a decision suspending or revoking the license.
This bill:
1. Renames the CSLB's enforcement unit as a division, and
makes conforming changes.
2. In addition to expiration, cancellation, forfeiture, or
suspension of a license, as described above, further
provides that the revocation of a license shall not
deprive the Registrar of jurisdiction to proceed with an
investigation, action or disciplinary proceeding against
the license, or to render a decision suspending or
revoking the license.
Background
The CSLB is responsible for implementation and enforcement
of the Contractors State License Law; the laws and
regulations related to the licensure, practice and
discipline of the construction industry in California. All
businesses and individuals who construct or alter, or offer
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to construct or alter, any building, highway, road, parking
facility, railroad, excavation, or other structure in
California must be licensed by the Board if the total cost
(labor and materials) of one or more contracts on the
project is $500 or more. The CSLB licenses approximately
310,000 contractors in 43 license classifications.
The current law authorizes the CSLB to proceed with an
investigation of a complaint even though the license has
been expired, cancelled, forfeited, or suspended by
operation of law, or voluntarily surrendered. However, the
statute does not provide for pursuing an accusation to
revoke the license when the license has already been
revoked by operation of law.
Revoking a license by operation of law occurs when a
licensee fails to comply with a citation or arbitration
award. The license is revoked for a minimum of one year,
to a maximum of five years. To reinstate the license, the
licensee must make restitution or comply with the order of
correction, pay civil penalties, and post a minimum
disciplinary bond in the amount of $15,000. Often, the
amount of restitution is minimal and the civil penalties
cannot exceed $5,000.
An accusation is not a bare complaint. An accusation is a
formal allegation of wrongdoing that a regulatory agency
files against a licensee only after the case has been
investigated by enforcement staff. The accusation is a
public written statement of charges CSLB has filed with the
Office of the Attorney General that specifies statutes and
rules a contractor or home improvement salesperson is
alleged to have violated; it is filed after an
investigation by enforcement staff of one or more
complaints of egregious actions in violation of the
Contractors State License Law filed against a licensee. It
may result in a hearing to determine whether a licensee has
violated the law and whether the license should be revoked,
suspended, and/or placed under some type of restriction by
CSLB.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
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SUPPORT : (Verified 6/13/12)
Contractors State License Board
California Spa & Pool Industry Education Council
ASSEMBLY FLOOR : 74-0, 4/26/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Hall, Hayashi, Roger Hern�ndez, Hill, Huber,
Hueso, Huffman, Jeffries, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Portantino, Silva, Skinner,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Cedillo, Furutani, Halderman, Harkey,
Jones, Smyth
JJA:do 6/13/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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