HIGHLIGHTS OF
THE CONTRACTORS STATE LICENSE BOARD
LEGISLATIVE COMMITTEE AND EXECUTIVE COMMITTEE MEETINGS
Sacramento, CA
November 6, 2008
By Sam K. Abdulaziz
The Contractors’ State License Board held a
two Committee Meetings on Thursday, November 6, 2008, in Sacramento,
California. James Miller acted as the chair. The Legislative Committee Meeting
was to start at 1:30 p.m. followed by the Executive Committee Meeting.
I.
REQUIREMENT OF FINGERPRINTING
The Department of
Consumer Affairs in its infinite wisdom, proposes to require licensees of
various boards including the Contractors' State License Board, who have not
previously submitted fingerprints or the fingerprints no longer exist, to submit
to the Department of Justice, fingerprint images.
The effective date
for renewal would be on or after January 1, 2011. This would require the
Contractors' State License Board to expend upwards of $1 million. We do not
know what it will do to other Boards.
This new proposal
is approximately four days old. Lets wait and see.
II.
LEGISLATIVE COMMITTEE
The following
Committee Members were present:
Chair, Stephen Matich; Eddie Barnes; and Joan Hancock.
Committee Members that were absent were:
Bob Brown and Lisa Miller-Strunk.
1.
Legislation
a.
Vetoed Bill
SB 1698 (Romero)
Contractors: Public Works – This would have amended the Contractors’ License
Law. It would have required a Public Works Certification in order to do work as
a contractor on Public Works in addition to other things. This was opposed by
the CSLB and the Governor vetoed.
b.
Bills Signed into Law
AB 2335
(Nakanishi) Building Permits – This is a law that was supported by the CSLB and
clarifies the owner-builder responsibilities relative to the permit process. It
also requires the owner-builder to acknowledge the risks of contracting with
unlicensed contractors.
SB 797
(Ridley-Thomas) Professions and Vocations – This had an urgency clause and among
other things, the law increases penalties against individuals who contract
without a license if they were named on a license that was revoked and found to
be culpable for the acts that resulted in the license revocation. It was
supported by the CSLB and signed into law.
SB 963
(Ridley-Thomas) Department of Consumer Affairs: Regulatory Boards – The CSLB
along with many other agencies, would have been suspended very soon. However,
this law extended the sunset dates governing the CSLB and some other Boards and
Bureaus to January 1, 2011. It was signed by the Governor.
SB 1362 (Margett)
Electrician Certification – This law deals with electrical certification and
authorizes a new fee for C-10 and C-7 contractors for licensure or renewal to be
used to enforce provisions of the Labor Code.
2.
Legislative Proposals
Mike Brown has
been working very hard to work with the contractors in their legislative
requests as well as coming forward with his thoughts dealing with consumer
protection. The following is a summary of what we believe to be the most
important portions.
a.
Tree Trimming and Removal – Amendment
The present law
states that the term “contractor” includes all of the following… “(d) Any person
not otherwise exempt by this chapter, who performs tree removal, tree pruning,
stump removal, or engages in tree or limb cabling or guying.” I had
specifically asked Mike Brown facetiously what a guying guy does and he told me
that a guying guy does guying. I guess that is accurate.
Note that the
licensing requirements are applicable only for work being performed on trees
that are at least 15 feet tall.
The problem arises
in that the law only applies to a contractors who “performs” those services.
The provisions of
this law need to be amended to be consistent with present law, which more
accurately reflects the full range of qualifications, functions, and duties of
the profession, the offer to perform work, that is what is going to be
added if passed.
b.
Intent to Defraud – Using a number as though it
were a contractor’s license number
Currently, there is a penalty for
using a “contractor’s license number” of another person if the perpetrator’s
intent in using the number is to defraud. The proposed language would delete
the “contractor’s license” so that it would then read, “any person, licensed or
unlicensed who willfully and intentionally uses, with intent to defraud, a
number that does not correspond to the number on a currently valid contractor’s
license held by that person, is punishable by a fine not exceeding ten thousand
dollars ($10,000), or by imprisonment in state prison, or in county jail for not
more than one year, or by both that fine and imprisonment.”
Most of this is clean up
language.
c.
Citations for Contracting Without a License
(Business and Professions Code section 7028.7)
The present law is
somewhat convoluted and complex. The Contractors' State License Board merely
wants to break up the long, multi-subject paragraphs into sections.
d.
Owner-Builder Exemption to Licensure (Business and
Professions Code section 7044)
This section has a
similar problem with respect to convoluted sections.
e.
Business and Professions Code section 7124.6.
Under current law,
licensees who fail to comply with an arbitration award or citation will be
revoked by operation of law in accordance with provisions of 7085.6 and 7090.1.
However, the way this is written, the revocation will be disclosed indefinitely
on the public license record, even though the licensee eventually complies with
the arbitration award or citation. The Contractors' State License Board and I
agree that these people should be treated with more leniency than contractors
whose licenses are revoked without conditions. The terms of disclosure, etc.,
should be limited.
f.
Mechanic’s Liens – Private Works of Improvement
This is probably
the most important item on the agenda. However, it is interesting that the
language that is proposed is to “work with industry representatives, legislative
staff, and other interested parties in developing a solution and finding an
author to carry a bill to resolve this issue in the upcoming legislative
session.” The issues are enacting a process that will require the lien
(mechanic’s lien) to be removed or expunged from the record that would provide a
simpler, quicker and less expensive solution.
g.
There are other measures that are merely clean-up
legislation.
III.
EXECUTIVE COMMITTEE
The following
Committee Members were present:
Chair, Jim Miller; Cindy Mitchell; Eddie
Barnes; and Matt Kelly.
There were no Committee Members absent.
1.
Administrative Program Update
a.
Personnel Delegation
DCA has delegated
various personnel functions to the CSLB. CSLB personnel are working with
several control agencies, such as the State Personnel Board and State
Controllers Office, to gain access to materials and equipment needed to give
CSLB personnel staff the ability to perform the delegated functions.
b.
Positions
As of October 27,
2008, there were 37 vacant positions at the Board. Between August 1, 2008, and
October 15, 2008, the Board was prevented from filling its vacancies due to the
Governor’s Executive Order, which imposed a statewide hiring freeze. The Board
resumed its recruitment and hiring efforts to fill vacant positions effective
October 15, 2008, upon being notified by the Department of Consumer Affairs that
non-General Funded agencies were released from the constraints of the Executive
Order.
The largest
vacancy is in Enforcement with a total number of vacancies being 37.
2.
Information Technology Update
a.
Home Improvement Salesperson Cards/Pocket Cards
The CSLB has
started research on various technologies to produce Home Improvement Salesperson
cards with photos and to improve the design of the pocket cards.
b.
Infrastructure Upgrade for Disaster Recovery Site
The CSLB is
working with the State Data Center and AT&T to design and implement a disaster
recovery site in their Fresno office. However, the Fresno site will not be
available for two years. In the interim, disaster recovery will be handled in
the Norwalk office.
3.
Budget Briefing
a.
Fiscal Year 2008/09 Approved Budget and
Expenditures
CSLB’s approved
budget (as approved in the 2008 Budget Bill) for Fiscal Year 2008/09 contains a
net appropriation of $59.6 million (including the scheduled reimbursements).
Through September 2008, CSLB has spent or encumbered $15.2 million.
Significantly, the
total personnel budget is almost $30,000,000.00. Expenses as of September 30,
2008, hit $7,370,233.00. The balance is $22,523,939.00. The percent of the
budget remaining is 75.3%.
The Board made
sure that the fees already approved do not have to go through the legislature.
4.
Proposed Regulatory Changes
a.
Section 811 – Increase Fees Charged by the CSLB.
Section 811 would
increase the various fees charged by the CSLB for processing applications and
license renewals and rescheduling a license and certification examination
starting January 1, 2011. The proposal would increase the fees to their
statutory maximum. The fee increases are said to be necessary to insure
that the CSLB has sufficient revenue to continue to fund its operations and/or
projected to maintain the CSLB fund reserve through at least Fiscal Year
2014/15. One wonders why they do not just turn this over to Abdulaziz,
Grossbart & Rudman.
5.
Strategic Plan Update
a.
Program Priorities
The Board has
established the following priorities that direct program activities:
i.
Focus on early intervention and on serious (health
and safety) complaints.
ii.
Keep licensees in business and maintain the
collection of revenue by keeping renewals and license maintenance current.
iii.
License applicants by reviewing qualifications and
criminal background, and administer legal and effective exams.
iv.
Educate consumers about their rights and
responsibilities, and stress ways that consumers can protect themselves.
v.
Stress early intervention and resolution of
reactive complaints, and refer minor complaints to small claims court.
vi.
Provide services through the Licensing Information
Center and the front counter.
vii.
Ensure that Administrative Services and Information
Technology units provide the support necessary to maintain programs.
b.
Mission
The
Contractors' State License Board protects consumers by regulating the
construction industry through policies that promote health, safety, and general
welfare of the public in matters relating to construction.
The Contractors' State License
Board will accomplish this by:
i.
Requiring licensure for any person practicing or
offering to practice construction contracting;
ii.
Ensuring that construction is performed in a safe,
competent, and professional manner;
iii.
Licensing contractors and enforcing licensing laws;
iv.
Enforcing laws, regulations, and standards
governing construction contracting in a fair and uniform manner;
v.
Providing resolution to disputes that arise from
construction activities; and
vi.
Educating consumers so they make informed choices.
c.
Vision
California
consumers and contractors will have a safe, fair, and competitive marketplace.
i.
Contractors possess the knowledge, skills, and
abilities necessary to provide clients and the general public with professional
services and products.
ii.
Consumers have access to adequate redress if they
are harmed by incompetent or dishonest contractors.
iii.
Consumers have information they need to make
informed choices.
iv.
Contractors have access to information they need to
practice competently and honestly.
d.
Values
The
Contractors' State License Board will strive for the highest possible quality
throughout all of its programs. To that end:
i.
CSLB believes in treating all consumers and
contractors fairly.
ii.
CSLB supports its staff and their professional
dedication.
iii.
CSLB focuses on prevention, providing information
to consumers and contractors.
iv.
CSLB is progressive, utilizing the most advanced
means for providing services.
e.
Goals
The
Contractors' State License Board has established five goals, which provide the
framework of its mission:
i.
Licensing – Ensure
that all applicants and licensees are qualified to provide construction
services.
ii.
Enforcement – Reduce,
eliminate, or prevent unlicensed activity and unprofessional conduct that post a
threat to public health, safety, and welfare.
iii.
Public Affairs –
Educate consumers to make informed choices about construction services, and
ensure that licensed contractors strengthen their technical management and
service skills.
iv.
Legislation – Ensure
that statutes, regulations, polices, and procedures strengthen and support Board
operations.
v.
Administration –
Enhance organizational effectiveness, and improve the quality of customer
service in all programs.
f.
Challenges and Opportunities
They will also be:
i.
Engaging and working with partners;
ii.
Expanding legislators’ awareness of the
Contractors' State License Board;
iii.
Facilitating an efficient licensure application
process;
iv.
Addressing disparate pay levels within the CSLB in
comparison to similar agencies;
v.
Preventing fraudulent testing by surrogates;
vi.
Addressing the impact of unlicensed operators;
vii.
Providing state-of-the-art Web-based tools;
viii.
Losing critical staff through turn-over and
attrition;
ix.
Using the industry expert pool in a more effective
manner;
x.
Declining contractor workforce in the face of
long-term trends of declining skill bases;
xi.
Maintaining contractor qualification levels.
g.
Strategic Directions
The Board has
identified the following priorities and strategic actions in order to advance
the CSLB, meets its challenges, and capitalize on opportunities:
i.
Educate consumer base by equipping consumers with
informational tools and increased awareness of risks and benefits inherent in
construction and home improvement;
ii.
Improve awareness of CSLB with consumers,
contractors, agencies and legislators;
iii.
Advance licensing program through technology,
staffing and accessibility;
iv.
Support and strengthen the skilled contractor force
through education;
v.
Prepare for future CSLB workforce through
recruitment and staff development; and
vi.
Expand enforcement partnerships.
Abdulaziz, Grossbart & Rudman provides this information as a
service to its friends & clients. It is an attempt to highlight what
transpired. The presentation and/or documents are of a general nature and are
intended to highlight areas of the subject matter, it is not a complete analysis
or report, and should not be used as a substitute for specific advice or
content. Sam Abdulaziz can be reached at Abdulaziz, Grossbart & Rudman, P.O.
Box 15458, North Hollywood, CA 91615-5458; (818) 760-2000, Facsimile (818)
760-3908; or by E-Mail at
info@agrlaw.net . On the Internet, visit our Website at
www.agrlaw.net
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P.O. Box 15458
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