BILL ANALYSIS �
SB 315
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Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 315 (Lieu) - As Amended: July 2, 2014
Policy Committee: Business,
Professions and Consumer Protection Vote: 13 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill clarifies advertising provisions for unlicensed
persons seeking work, extends the period during which the
Contractors' State License Board (CSLB) must initiate
disciplinary action against a licensee upon a finding by the
Labor Commissioner of a willful and deliberate labor code
violation, and makes other changes to CSLB enforcement
provisions. Specifically, this bill:
1)Prohibits an unlicensed person from advertising for
construction work that exceeds the $500 aggregate contract
price cap, which includes the cost for labor, materials, and
all other items on a project.
2)Provides that it is a misdemeanor for a person to engage in
the business or act in the capacity of a contractor if he or
she has a suspended license for failure to pay a civil
penalty, to comply with an order of correction, or to resolve
all outstanding liabilities.
3)Authorizes CSLB enforcement to have free access to all places
of labor when participating in the enforcement activities of
the Joint Enforcement Strike Force on the Underground Economy
(JESF).
4)Extends the time period, from 30 to 180 days after
notification of a labor code violation in which CSLB must
initiate disciplinary action against a licensee.
5)Makes technical and clarifying changes.
SB 315
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FISCAL EFFECT
Minor and absorbable costs to the Contractors' State License
Board.
COMMENTS
1)Purpose . According to the author, construction is the number
one trade contributing to the underground economy. Unlicensed
contractors routinely openly advertise their services for any
and all construction services, including large-scale projects
that are clearly in excess of the $500 limit prescribed by
law. Additionally, some contractors continue to contract for
work while holding a license suspended for outstanding civil
judgments or tax liabilities.
CSLB is the state agency responsible for licensing and
regulating the construction industry. This bill, sponsored by
CSLB, addresses these and other issues by streamlining and
strengthening CSLB enforcement activities within existing
joint enforcement operations.
2)Contractors' State License Board. CSLB protects consumers by
licensing and regulating California's construction industry.
There are approximately 300,000 licensed contractors in the
state in 43 different licensing classifications. CSLB
activities include educating consumers about contractors and
construction law, administering examinations to test
prospective licensees, issuing licenses, investigating
complaints against licensed and unlicensed contractors,
issuing citations, suspending or revoking licenses, and
seeking administrative, criminal, and civil sanctions against
violators. In 2012-13, CSLB helped recover nearly $44 million
in ordered restitution for consumers.
3)Previous Legislation . SB 263 (Monning) of 2013 would have
made it a misdemeanor for a contractor with a suspended
license for failure to pay a civil penalty, comply with an
order of correction, or to resolve all outstanding
liabilities, to engage in the business or act in the capacity
of a contractor. The bill was amended to address an unrelated
topic.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
SB 315
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319-2081