September 23, 2014

The Contractors' State License Board held a Board Meeting in Monterey on September 23, 2014.

Board Members Present:

Chair, David Dias; Vice Chair, Ed Lang; Agustin Beltran; Kevin Albanese; Linda Clifford; Joan Hancock; Pastor Herrera Jr.; Paul Schifino; and Frank Schetter.

Board Members Absent:

Robert Lamb; John O'Rourke; Bruce Rust; and Nancy Springer.

PUBLIC COMMENT SESSION

Representative of Newton Plumbing talked about ways in which to stop the unlicensed contractor attack the supplier who supplied the materials to an unlicensed person.

CSLB RESPONSE TO NAPA EARTHQUAKE

Disaster response efforts began after the 6.0 earthquake that occurred in the Napa region on August 24, 2014, in order to protect property owners from being victimized by unscrupulous contractors.

CALIFORNIA DEPARTMENT OF INSURANCE PARTNERSHIP

The CSLB and the California Department of Insurance (CDI) collaborated to educate earthquake victims and enforce licensee and consumer protection laws.

CONSUMER OUTREACH

The CSLB immediately issued a news release in order to warn victims that unlicensed and unscrupulous contractors may attempt to scam them as well as to warn unlicensed contractors that they may face felony charges if caught contracting without a license after the declaration of a state of emergency.

Both the CSLB and CDI met with property owners and provided outreach materials. The media accompanied the three outreach teams which helped the educational message reach tens of thousands of additional earthquake victims.

Yard signs were placed throughout the earthquake area. Educational material was also distributed at the Red Cross Disaster Relief Center.

The CSLB and CDI continue to maintain a presence in the area following the earthquake.

DISASTER HOTLINE

The Disaster Hotline was activated in order to assist and answer questions from earthquake victims and is available Monday through Friday from 8:00 a.m. to 5:00 p.m.

ASSISTANCE CENTERS

Staff from the Sacramento Intake and Mediation Center was on duty during the week of September 1, 2014, at an information center set up at the Vallejo City Hall. The following week, staff from the Statewide Investigative Fraud Team and the Santa Rosa Branch Office, staffed a table at a Local Assistance Center that was set up by the Governor's Office of Emergency Services.

MEDIA OUTREACH

Thanks to the Public Affairs Office, two local cable companies now air the CSLB video "Rebuilding After a Natural Disaster." In addition to the weekly air times, the video is also available "On Demand."

The Public Affairs Office also provided language for the Public Service Announcements to all local English and Spanish radio stations in the earthquake area.

LEGISLATOR, GOVERNMENT OFFICIALS, AND BUILDING OFFICIAL OUTREACH

The CSLB sent post-disaster educational materials to all Senate and Assembly legislative offices in the affected region as well as all Napa and Sonoma County Building Departments. An e-blast was also sent to area Chambers of Commerce with a request to distribute post-disaster rebuilding information to their membership or to utilize the CSLB's online resources.

Outreach efforts also extended to builders' exchanges, as well as city and county code enforcement officers, to educate them about the Contractors State License Law, and to partner on enforcement of construction laws in the earthquake area.

ENFORCEMENT ACTIVITIES

Unlicensed and predatory individuals are drawn to disasters in order to make a quick buck. Business and Professions Code section 7028.16 provides for felony prosecution of unlicensed people who act as contractors in a state or federally declared disaster area.

The CSLB will continue to monitor construction sites in the earthquake area for unlicensed and other illegal activity. The CSLB performed a sweep with a Napa County District Attorney's Office investigator and identified an unlicensed operator and felony charges will be filed.

The CSLB staff has also compiled illegal advertisements and will partner with the Napa County District Attorney to conduct an undercover sting operation during September.

CSLB RESPONSE TO C-57 WELL DRILLING CONTRACTOR SHORTAGE

CSLB PARTICIPATION IN DROUGHT RELIEF EFFORTS

The CSLB is supporting the Governor's Office of Emergency Services efforts to mitigate issues associated with California's drought by streamlining processes to licensed C-57 Well Drilling contractors and "A" General Engineering contractors who want to add a C-57 classification to their license. The CSLB also determined that it will expedite licensing for the C-61 Limited Specialty, D-21 Machinery and Pumps classifications.

There have been numerous discussions amongst the CSLB, the Governor's Office of Emergency Services, the Governor's Office of Planning and Research, the Air Resources Board, and the Department of Water Resources. The CSLB has released numerous Industry Bulletins and other literature regarding California drought conditions and the shortage of C-57 and C-61/D-21 contractors.

ENFORCEMENT COMMITTEE REPORT

ENFORCEMENT PROGRAM UPDATE

INTAKE / MEDIATION CENTERS (IMCS)

The Intake / Mediation Centers financial settlement amount from June of 2013 through July of 2014 was almost $10 million.

Some of the highlights are:

• Elderly Homeowner Receives Price Reduction
• Underperforming Solar System Warrants Full Refund
• Excessive Down Payment Fully Refunded
• Solar Company Loses Job Over Price Match Claim
• Dispute Over Remodel Leads to Full Refund
• 2004 Stucco Job Repaired by Builder

INVESTIGATIVE CENTERS (ICS)

The Investigative Centers financial settlement amount from July of 2013 through July of 2014 was just over $4 million.

Some of the highlights are:

• Repeat Offender Guilty on All Counts
• House Flipper Cut Corners
• Planning Commissioner Failed to Obtain Permit
• Palo Alto Contractor Gets Jail Time
• Phone Records Connect Licensee to Aiding and Abetting
• Contractor Facing Revocation and Jail for Illegally Using Clients Credit Card
• Fingerprints Don't Lie
• CSLB's Most Wanted - Felony Conviction

Special Investigations Unit Update

The CSLB received final approval from the Department of Consumer Affairs to proceed with implementing the Special Investigations Unit. This Unit will consist of one Enforcement Supervisor I to provide leadership, guidance, and oversight to eleven (11) CSLB Peace Officers. The goal is to ensure standardized, professional conduct and methods of operation when investigating complex elder abuse cases. The recruitment of the Enforcement Supervisor I is expected to be complete by November.

GENERAL COMPLAINT-HANDLING STATISTICS

The determined manageable level of pending complaints for all current CSLB Enforcement staff is 3,185. July 2014, saw a pending caseload of 3,142.

It is anticipated that the caseloads will rise with time and possibly exceed current manageable levels which will increase the length of the investigation process for consumers.

The following Enforcement Objectives regarding complaint-handling and the staff's success are as follows:

• Maintain ER I production of closing 10 complaints per month - ERs are closing an average of 10.
• Increase the percentage of licensee complaints settled from 30% - 42% are being settled.
• Accomplish IMC licensee complaint closure to 70% - the average is currently 71%.
• Reduce 270-day-old complaints to 100 or less - There are only 82 aged cases.

CASE MANAGEMENT

July of 2013 through July of 2014 saw over 1,500 citations issued. There were over 400 Mandatory Settlement Conferences with over $1.3 million in civil penalties collected with the legal fee savings being over $1.8 million.

With almost 400 arbitrations and the restitution paid, the public saved almost $1.4 million.

STATEWIDE INVESTIGATIVE FRAUD TEAM (SWIFT)

Contractors State License Board Labor Enforcement Task Force Update

The Labor Enforcement Task Force was launched in January 2012 to combat the underground economy so legitimate business can compete in a fair environment, employees are afforded a safe workplace, and California receives its tax revenue in order to provide essential state services. The size of the underground economy is believed to have more than doubled from 1970 to 2000 with the estimation that it generates between $60 to $140 billion per year in economic activity and employs about 16% of the state's labor force. This leads to an annual economic loss from $8.5 to $28 billion in corporate, personal, and sales and use tax.

The CSLB has focused on the larger contractors and those engaged in public works projects who fail to pay the prevailing wage. 2013 saw CSLB Enforcement investigators achieve record success. They discovered that 80% of the construction businesses contacted at active job sites were out of compliance with state licensing, labor, health and safety, insurance, and/or tax requirements. The citation penalties and assessments exceeded $9.3 million.

Stings and Sweeps

SWIFT conducted many undercover sweep and sting operations as well as developed new strategies and partnerships to combat the underground economy. To date there have been 353 sting and sweep days with over 1600 legal actions, which include citations and written Notices to Appear in criminal court.

CSLB ENFORCEMENT ACADEMY

September 15 - 19, 2014, saw the second CSLB Enforcement Academy held in Sacramento. The Enforcement Division developed this five-day Academy in conjunction with the Attorney General's Office.

TRAINING UPDATE

Under the CSLB's Strategic Plan, the Enforcement Division has an ongoing commitment to create a training curriculum for staff that includes basic enforcement procedures, a mentoring program, and specialized training. Following is a list of training that has been conducted to date:

• Peace Officer Workshop (May 2014)
• Module 4: Code Training, Phone Tactics & Time Management (Ongoing)
• Professional Assistants Academy II (March 2014)
• Successful Promotional Interviewing Training (March 2014)
• Supervisors Training (January 2014)
• Elder Abuse Training with San Diego County DDA (August 2013)
• DCA's Division of Investigation Peace Officer Training (June 2013)
• SOLID Writing Workshop (May 2013)
• Criminal Investigation Meeting (March 2013)
• CSLB's Penal Code 832 Equivalent Course (January/February 2013)

At the meeting a very comprehensive report was given by a Monterey DA and David Leery, a CSLB Investigator, regarding workers' compensation and unlicensed contractors. This presentation also included a PowerPoint presentation.

REVIEW AND APPROVAL OF PEACE OFFICER TRAINING CURRICULUM

The Board is asked to review and approve the proposed Peace Officer Training Curriculum. This curriculum would include peace officer module training, monthly training sessions, consumer protection training provided by the California District Attorneys Association, and quarterly Defensive Tactics training provided by DCA's Division of Investigation.

BACKGROUND

The authority for a Special Investigations Unit (SIU) falls under California Business and Professions Code section 7011.5.

SPECIAL INVESTIGATIONS UNIT

The Enforcement division of the CSLB carriers out their mission which is to protect consumers by licensing and regulating the construction industry through policies that promote health, safety, and general welfare of the public in matters related to construction, by enforcing laws, regulations, and standards to ensure construction activities are conducted in a fair and uniform manner.

CSLB PEACE OFFICER DUTIES AND RESPONSIBILITIES

CSLB Peace Officers provide the Board with a unique ability to investigate construction-related elder abuse, fraud, and unlicensed activity. They now have eleven (11) Peace Officer positions. Since Peace Officers are sworn officers, they have additional training in violations outside of the Contractors' State License Law, including knowledge of the Penal, Labor, Health and Safety, and Vehicle Codes. The academy training also includes chain of custody as well as other specialized training such as expert testimony, dealing with aggressive people and interpreting body language.

SIU PROGRAM GOALS

• Investigate construction-related elder abuse cases
• Target repeat offenders that prey upon elderly citizens
• Become subject matter experts in the field of elder abuse and construction fraud
• Increase the number of criminal case filings for elder abuse and construction fraud with DA offices
• Develop ongoing relationships and approaches with partner agencies to combat and prosecute construction-related crime

PROPOSED TRAINING CURRICULUM

The Board is being asked to review and approve a specialized training curriculum.

Training Module

CSLB will provide the training necessary to investigate complex criminal cases, which typically require search warrants, surveillance, examination of evidence, interviewing victims and witnesses, and partnering with other law enforcement agencies. This training will enhance PO's investigation of construction-related elder abuse cases. Upcoming PO training for the next 12 months includes:

• Review of construction-related statutes that provide for felony charges
• Interview techniques
• Criminal report-writing formats
• How to present cases to prosecutors to file criminal charges
• Mock trials to develop and strengthen PO's confidence and enhance their
• ability to testify before jurors
• POST investigation responsibilities

Monthly Training Sessions

During 2014, CSLB will continue to conduct monthly meetings that POs will attend, both in person and via conference calls, which will provide a forum to discuss issues that arise, best practices, and share information. The monthly meetings also will include speakers from district attorneys' (DAs) offices who will make presentations and answer questions to further develop and enhance peace officers' criminal investigation skills.

California District Attorney Association Consumer Protection Training

Consumer protection prosecutors throughout the state have offered to provide CSLB Peace Officers training about how to identify, investigate, and successfully refer completed investigations for criminal prosecution. Training will include learning to recognize elder abuse and partnering with allied law enforcement agencies.

DCA Division of Investigation (Dol)

Peace Officers will continue to participate in Dol's quarterly Defensive Tactics training.

BRIEFING OF THE ENFORCEMENT PROGRAM'S FORENSIC AUDITING

Skip Jones gave a presentation to the Board about diversion of funds cases, contractors who take money for consumers and divert them to other projects and to themselves. Diversion of funds is a crime.

PREDATORY SERVICE AND REPAIR TASK FORCE UPDATE

CASES AND PARTNERSHIP EFFORTS

Part of the 2014-2015 Strategic Plan had the Enforcement division commit to establishing an enforcement strategy to address predatory service and repair scams. August 2014 saw the formation of the task force which was comprised of four (4) CSLB Peace Officers, one (1) Enforcement Representative, and a retired annuitant who is a forensic auditor. This task force included representatives from the FBI, DA, and local law enforcement.

The task force will hold regular meetings to share investigative techniques and best practices. Strategies for identifying culpable parties and conducting surveillance are some of the items discussed. Staff will regularly update the Board on recent events and evolving investigation strategy.

PUBLIC AFFAIRS COMMITTEE REPORT

PUBLIC AFFAIRS PROGRAM UPDATE

The Public Affairs Office (PAO) is responsible for media, industry, licensee, and consumer relations and outreach.

STAFFING UPDATE

The Public Affairs Office is staffed with six full-time positions and one part-time Student Assistant. There is currently one vacancy for a Student Assistant.

ONLINE HIGHLIGHTS

Website Redesign Project

The Public Affairs Office and the Information Technology staff worked together to design and develop an entirely new CSLB website. It is optimized for computers, tablets and smart phones. The CSLB is one of the first state agencies to adopt the new technology template. The site was successfully launched on September 5, 2104.

Video/Digital Services

San Leandro Licensee Town Hall Meeting

There was a town hall meeting about service and repair contracting where the Public Affairs Office produced two videos for the meeting and video recorded Enforcement Chief David Fogt's Presentation, which is now available on the CSLB's YouTube page.

Service and Repair Enforcement Operations

The Public Affairs Office staff recorded undercover operations for consumer outreach and potential suspect prosecution. The plan is that video will also be taken during future enforcement operations.

Live Webinar

The Public Affairs Office organized the production of a live webinar on September 19, 2014 featuring Board Member Nancy Springer and Enforcement Chief David Fogt. The webinar's focus was on heating, ventilation and air-conditioning (HVAC) Permits and Title 24 energy regulations.

Public Meetings

Since the July 2014 Board meeting, the Public Affairs Office has produced live web streams for four committee meetings.

Staff Instruction Video

There is a "Help Desk" instructional video on the CSLB intranet site, which is intended to help ease the transition for staff to a new online help desk system.

Social Media

Flickr

The CSLB is now on Flickr. Flickr is a no-cost, photo-sharing social media website. This site allows the Public Affairs staff to upload and post high-resolution photos as individual photos or in an album format. Flickr allows professional media and industry followers of the CSLB to download photographs at the resolution level of their choosing. September 9, 2014, had 39 photos on Flickr available for download.

Twitter

From May 23, 2014 through September 9, 2014, the CSLB gained 56 additional followers on Twitter, for a total of 1,562 followers. The Public Affairs Offices posted 19 new tweets during this time period, bringing the total tweets to 583.

Facebook

As of May 23, 2014, the CSLB had 1,636 likes on its Facebook page. As of September 9, 2014, that grew to 1,710. There was also an increase of about 74 new followers in 108 days.

There were 42 new photos and eight (8) videos added to the CSLB Facebook page.

YouTube

There were 15,629 visitors to the CSLB's YouTube page between May 23, 2014, and September 9, 2014. That averages to about 228 daily visits with a 3.6% increase over the last period.

Email Alert Feature

The Public Affairs Office continues to publicize a website feature launched in May of 2010 that allows people to subscribe to their choice of four types of CSLB email alerts:

• California Licensed Contractor newsletters
• News Releases / Consumer Alerts
• Industry Bulletins
• Public Meeting Notices / Agendas

The database growth is slow but steady. There are currently 23,210 subscriptions with 554 of those being new since the June 2014 Board meeting.

MEDIA RELATIONS HIGHLIGHTS

MEDIA CALLS

The Public Affairs Office staff responded to more than 5 dozen media inquiries from May 23, 2014, and September 9, 2014.

NEWS RELEASES

The Public Affairs Office distributed 11 news releases to the media between May 23, 2014, and September 9, 2014.

NEWS MEDIA EVENTS

The following are a list of the News Media Events:

• Cocos Wildfire Sting Operations (San Diego County)
• Summer California Blitz Undercover Sting Operations
• San Fire Educational Outreach (El Dorado/Amador Counties)
• Napa Valley Earthquake (Napa/Solano Counties)

INDUSTRY/LICENSEE OUTREACH HIGHLIGHTS

CALIFORNIA LICENSED CONTRACTOR NEWSLETTER

The quarterly newsletter was released online in mid-July. This newsletter is designed for the nearly 300,000 licensees. Three of the issues are online only, the fourth is printed and mailed to each licensee.

INDUSTRY BULLETINS

The Public Affairs Offices alerts industry members to important and interesting news by distributing industry bulletins via email. Between May 23, 2014 and September 9, 2014, the Public Affairs Office distributed four (4) industry bulletins.

PUBLICATION HIGHLIGHTS

The CSLB publications in production:

Completed

• September 23, 2014, Board Meeting Packet
• September 11, 2014, Legislative Committee Meeting Packet
• Fast Facts: How to Contract for Well Drilling in California
• Fast Facts: Fireplace Chimney Repair or Replacement
• August 18, 2014, Committee Meetings Packet
• July 30, 2014, Executive Committee Meeting Packet

In Production

• Industry Expert Handbook
• Contractor/Applicant Guide (booklet)
• Consumer Guide (booklet)
• Mechanics Lien (Spanish)

In Development

• 2015 Sunset Review Report
• Contractor Outreach Materials
• Checklist of Consumer Questions During Bid
• Why You Should Hire a State-Licensed Contractor
• Building Permit Information
• Contractor Insurance and Bond Information
• Contractor Reference form
• Description of Classifications Booklet (Spanish)

CSLB FORMS/LETTERS

The CSLB is in the process of reviewing and updated all forms and letters, to ensure all distributed materials have received proper legal review and have been assigned a tracking number.

CONTACT FROM FOREIGN COUNTRY

There is a planned visit to the CSLB Headquarters by a group from Saudi Arabia's Ministry of Municipal and Rural Affairs. The group has undertaken a three-year project to develop a system for contractors' classification in the Kingdom of Saudi Arabia, and wants a closer look at CSLB's operations. This visit will take place in late 2014 or early 2015.

COMMUNITY OUTREACH HIGHLIGHTS

SENIOR SCAM STOPPER SEMINARS

Since June 2014, 40 Senior Scam Stopper seminars have been conducted, with at least 18 more to be conducted by December.

EMPLOYEE RELATIONS

INTRANET (CSLBin)

The new employee only intranet site, "CSLBin" was launched in November of 2013. This site has reorganized the information used by employees on a daily basis. Staff's reaction to the site has been very positive.

REVIEW AND APPROVAL OF 2014-17 CSLB COMMUNICATIONS PLAN

PUBLIC AFFAIRS OFFICE COMMUNICATIONS PLAN

The following Communications Plan is for the Board's review and approval:

I. PURPOSE

CSLB's Public Affairs Office (PAO) provides relevant, accurate, and consistent information to various stakeholders and audiences. Communications include all written, spoken, visual, and electronic (including Internet) interactions.

This plan supports CSLB's strategic objectives, and provides a framework for the variety of internal and external communications that will be developed and managed from 2015-2017.

PAO's range of distribution methods effectively relays the CSLB consumer protection and education messages to help gain support and cooperation from the general public and multiple stakeholder groups.

II. CSLB MISSION STATEMENT

The Contractors State License Board (CSLB) protects consumers by regulating the construction industry through policies that promote the health, safety, and general welfare of the public in matters relating to construction.

CSLB accomplishes this by:

• Ensuring that construction is performed in a safe, competent, and professional manner;
• Licensing contractors and enforcing licensing laws;
• Requiring licensure for any person practicing or offering to practice construction contracting;
• Enforcing the laws, regulations, and standards governing construction contracting in a fair and uniform manner;
• Providing resolution to disputes that arise from construction activities; and
• Educating consumers so they can make informed choices.

III. PUBLIC AFFAIRS OFFICE MISSION STATEMENT

PAO's mission is to provide timely, accurate, and useful information to CSLB's stakeholders, with a primary goal of protecting California consumers in matters relating to construction.

PAO accomplishes this by:

• Providing information and materials to educate consumers so they can make informed choices when hiring contractors and managing construction projects;
• Building and maintaining a positive, responsive, and professional relationship with news media outlets and reporters;
• Expanding CSLB's visibility with consumers, licensees, potential licensees, and the construction industry;
• Serving as an information conduit for CSLB's employees and Board members; and
• Partnering with other state and local government agencies, including trade organizations and other interested groups.

IV. STAFF AND FINANCIAL RESOURCES

Public Affairs Staff (Position/Name/Key Duties)

• Chief of Public Affairs / Rick Lopes / Lead for Public Affairs Office, Charts Direction of Communications Program, Leads Media Relations Efforts, Special Projects
• Information Officer II / Melanie Bedwell / First-Level Supervisor, Contract Manager, PAO Project Manager, Publications Director, Special Projects, Media Relations
• Information Officer I / Tom O'Hair / Media Relations, Video Production and Digital Coordinator, Social Media Outreach Coordinator
• Information Officer I / Steve Breen / Publications Coordinator, Intranet Coordinator, Media Relations
• Graphic Designer III / Amber Foreman / Graphic Design and Publication Production
• Associate Government Program Analyst / Jane Kreidler / Outreach Coordinator, Senior Scam Stopper Program, Speakers Bureau Coordinator
• Student Assistant / Vacant / Office Support

Financial Resources

The Public Affairs Office has a $700,000 budget allotted specifically for paid advertising and other outreach programs through an outside advertising/public relations agency. Other outreach costs (publications, travel, etc.) are part of CSLB's operating budget. No paid advertising campaigns were conducted during the previous Communications Plan period (2011-2014).

V. GUIDING PRINCIPALS

PAO is committed to using its individual and collective experience, judgment, and talent to provide staff with the most effective and creative public relations counsel and services possible.

Staff proactively advocates for the interests of CSLB and California consumers, based on the belief that the Board serves an important regulatory role for one of the state's most important industries, and that educated consumers are in a better position to protect themselves from problems during a construction-related project. PAO believes in paying special attention to opportunities to offer an increased level of protection for vulnerable California populations, including those with a low income and older adults.

CSLB is mandated to ensure that contractors meet the minimum trade standards for licensure; PAO serves as an educational resource for licensees, providing information to help them understand laws and operate a successful business.

PAO provides Board members with CSLB information and facts to assist them when developing Board policy and addressing the public.

PAO strives to use the newest and most effective communication channels and technology to reach its various stakeholders, utilizing the Internet whenever possible, and other cost-effective methods that provide wide audience reach.

The contributions of each PAO staff member is honored and the team sees that its success reflects individual and collective efforts.

VI. TARGET AUDIENCES

• Consumers
  • Vulnerable Populations, Especially Seniors and Low-Income
• Licensees
• Unlicensed Contractors
• Industry and Trade Groups
• Building Officials/Departments
• State Elected and Appointed Officials and Representatives
• Prosecutorial Agencies
• Other Interested Groups

VII. COMMUNICATION MESSAGES

• Check The License First
• Consumers take a big risk when they hire an unlicensed contractor
• CSLB is a resource when hiring a contractor
• Know Your Rights
• Unlicensed or unscrupulous contractors may try to scam you (disaster)
• Benefits/How to become a licensed contractor
• Putting construction project success in consumers' hands

VIII. COMMUNICATION CHANNELS

The current message delivery environment is most successful through electronic-driven channels:

• CSLB Website
• Video
• Reality-Based Television Show(s)
• Social Media
• Publications (online and print)
• Media Outreach (new releases, industry bulletins, media events)
• Community Outreach (Senior Scam Stopper seminars, CSLB Speakers Bureau)
• Paid Advertising
• Industry/Trade Publications

IX. SHORT-TERMS GOALS

• Attract Media Attention to News Releases or Other Outreach
• Respond Quickly and Accurately to Media Inquires
• Increase Video-Producing Capabilities, especially live Web streaming
• Build Social Media Presence
• Maintain Current Consumer Outreach Programs
• Develop New Opt-In Licensee Search Feature for CSLB Website
• Utilize Technology to Develop Opportunities to Interact with Various Stakeholders
• Regularly Update CSLB Website & Intranet Content
• Maintain Most Wanted Website Feature
• Help Re-establish CSLB Forms Committee

X. LONG-TERM GOALS

• Build CSLB Awareness with Consumers
• Develop CSLB Brand as a Leading Consumer Protection Agency
• Expand Graphics Brand Across All Facets of CSLB
• Build Partnerships to Extend Outreach Budget
• Stay on the Leading Edge of Technology for Effective Communication
• Maintain Educational Materials Available to Licensees
• Develop Newsletter Committee (editorial board)
• Expand Partnerships with Other State, Federal, and Local Agencies, as well as Industry/Trade groups
• Provide Expanded Video and Printed Education Materials
• Increase the Number of Foreign Language Print and Online Materials

XI. TIMETABLE AND PRIORITIES

Specific timetables and priorities are determined and set by the Board during its annual strategic planning session.

XII. MEASUREMENTS OF SUCCESS

• Increase in Website License Look-Ups
• Increase in Visits to CheckTheLicenseFirst.com
• Conducting at Least Two Senior Scam Stopper Seminars Per Month
• Number of Partnerships Created
• Number of Press Releases Issued
• Number of Press Events Conducted
• Number of Live Webcasts Produced
• Number of Videos Produced
• Increase in Facebook "Likes"
• Increase in Twitter "Followers"
• Feedback from Periodic Surveys
• Number of Chat Events Hosted
• Launch of Licensee Education Page
• Number of Foreign Language Materials Available and Distributed

Numeric values that represent improvement goals and results will be given to the above methods, such as percentages of increase, number of impressions, surveys, and other measurable tracking.

LEGISLATIVE COMMITTEE REPORT

LEGISLATIVE PROGRAM UPDATE

At this point, the Legislative Committee is in waiting to see what legislation is vetoed by the Governor. The Governor has until September 30, 2014, to veto any legislation. If it is not vetoed by the end of that day, it is automatically chaptered and becomes law.

LICENSING COMMITTEE REPORT

LICENSING PROGRAM UPDATE

LICENSE APPLICATION WORKLOAD

The Fiscal Year 2013-14 had a 2% increase of applications from the prior year, finally reversing the decline in recent years that occurred due to the economic recession and housing downturn. The average number of applications received per month for the Fiscal Year 2013-14 is 846.

LIMITED LIABILITY COMPANIES

The CSLB became authorized to issue licenses to LLC's effective January 1, 2012. LLC's require an additional bond (over the $12,500 contractor bond) of $100,000 for the benefit of workers relative to payment of wages and fringe benefits in order to protect those workers since there is no case law dealing with LLC's. LLC's are also required to have at least $1 million in liability insurance when there are five or fewer persons listed as personnel and another $100,000 required for each listed personnel over five, but not to exceed $5 million.

As of July 31, 2014, 2,089 LLC applications have been received with 670 LLC licenses issued. Inconsistencies between the contractor's application and the records with the Secretary of State are the main reasons why the denied applications were rejected.

WORKERS' COMPENSATION INSURANCE RECERTIFICATION

January 1, 2013, started the Workers' Compensation Re-certification process. Now, an active contractor with a current exemption for workers' compensation insurance with the CSLB needs to provide a current and valid Certificate of Workers' Compensation Insurance or a Certificate of Self-Insurance at the time of license renewal.

FINGERPRINTING / CRIMINAL BACKGROUND UNIT

The Criminal Background Unit has been conducting fingerprinting for all applicants for a CSLB license, this includes each officer, partner, owner and responsible managing employee as well as home improvement salespersons since January 1, 2005. Since inception, the fingerprint program has received almost 300,700 transmittals from the Department of Justice with more than 52,400 of those containing criminal conviction records. As of July 31, 2014, 1,192 of those applications have been denied, 1,370 have been issued probationary licenses, and 597 of the denied applicants appealed their denials.

EXPERIENCE VERIFICATION UNIT

The CSLB is required by law to investigate a minimum of 3% of applications received to review applicants' claims of work experience. January of 2013 began the process of streamlining the application process as well as reducing the time and expense of formal investigations by combining the work experience verification process with the standard application review. In instances when the CSLB is not able to confirm the experience, three options are offered to the applicant:

• Identify a new qualifier who possesses the required work experience;
• Withdraw the application and reapply when the necessary work experience has been gained; or
• Request a formal investigation.

Licensing will continue to track the number of applications reviewed as well as those verified or denied.

LICENSING INFORMATION CENTER

Licensing Information Center (LIC) Workload

The Licensing Information Center or call center continues to exceed Board goals with average wait times of 1:48 minutes and 98% off all calls answered with a total of 153,417 calls for Fiscal Year 2013-14. This is attributed to staffing levels and training.

Staffing Update

Two new Program Technician II's were hired in July 2014. There are also two part-time retired annuitants who work the call center during peak hours.

Increased Training

The License Information Center provides timely, efficient, and professional services to its customers and this is accomplished by new employees spending a large amount of time getting one-on-one training with seasoned staff and supervisors.

JUDGMENT UNIT

The Judgment Unit staff processes all outstanding liabilities, judgments, and payment of claims reported to the CSLB as well as process all documentation and correspondence related to resolving these issues.

Once the CSLB receives timely notification of an outstanding liability, judgment, or payment of claim, they send a letter to the licensee. This letter explains the licensee's options and a time frame for compliance - 90 days for judgments and payment of claims and 60 days for outstanding liabilities. If the licensee does not comply within the allowed time frame, the license is suspended and a letter of suspension is sent to the contractor. If the contractor complies at a later time, a reinstatement letter will be sent at that time.

TESTING PROGRAM UPDATE

EXAMINATION ADMINISTRATION UNIT

The CSLB has 45 examinations at eight computer-based testing centers that are the responsibility of the Examination Administration Unit. Most of the testing centers have two full-time test monitors and part-time proctors are used to fill in when test monitors are not at work. When test monitors are not monitoring examinations, they spend their time responding to all of the testing-related interactive voice response calls received by the CSLB.

EXAMINATION ADMINISTRATION STAFFING

Testing has one Office Technician vacancy in the Sacramento Testing Center with interviews in late September to fill the vacancy.

EXAMINATION ADMINISTRATION PROJECTS

An upgrade to the Sacramento Test Center's test development and administration software, Score 1.5, was launched in early July of 2014. By mid-September, this software is set to be operating in all eight test sites.

EXAMINATION DEVELOPMENT UNIT

The Examination Development Unit is responsible for making sure that the 45 examinations of the CSLB are written, maintained, and updated in accordance with the testing standards, guidelines, and CSLB regulations.

OCCUPATIONAL ANALYSIS AND EXAMINATION DEVELOPMENT WORKLOAD

There are two phases required to maintain a licensure examination. Occupational analysis, which determines what information is relevant to each contractor classification. Examination development involves reviewing and revising the existing test questions, writing new test questions, and determining the passing score for examinations from that point forward. These cycles must be completed every five to seven years for each examination.

Two new examinations were released in August of 2014, for C-13 Fencing and C-60 Welding.

Current examinations that are in progress with occupational analyses are the C-6 Cabinet, Millwork and Finish Carpentry, C-20 Warm-Air Heating, Ventilating and Air Conditioning, C-23 Ornamental Metal and C-43 Sheet Metal. New examinations are also in progress for A General Engineering, B General Building, C-10 Electrical, C-11 Elevator, C-15 Flooring and Floor Covering, C-28 Lock and Security Equipment, C-35 Lathing and Plastering, C-36 Plumbing and C-51 Structural Steel.

CIVIL SERVICE EXAMINATIONS

The Examination Development Unit also works on civil service classification examinations that are used at the CSLB.

EXAMINATION DEVELOPMENT UNIT STAFFING

The Examination Development Unit is fully staffed.

ONGOING CONSUMER SATISFACTION SURVEY

There is an ongoing survey of consumers whose complaint cases have been closed which is designed to assess overall satisfaction with the Enforcement Division's handling of complaints.

EXECUTIVE COMMITTEE REPORT

ADMINISTRATION UPDATE

BUSINESS SERVICES UPDATE

Facilities

The CSLB is coordinating with the Department of General Services to increase the rental space of the San Bernardino office and is currently reviewing plans and specifications for availability.

Construction will begin within the next month to increase office space at the West Covina office to accommodate two additional employees.

Negotiations are currently in progress with the management company to renew the Norwalk field office lease.

Three electric vehicle charging stations are being installed at the Sacramento Headquarters in September as well as office expansion to house all staff within one office being under way.

Contracts and Procurement

• Contracts in Progress
  • Translation services for test centers
  • Collection agency to pursue collection of monies owed by unlicensed contractors
  • Maintenance contract for Energen Fire Suppression System in IT's computer room
• Procurement in Progress
• Wireless audio surveillance equipment for Enforcement division
• Thirty (30) surveillance cameras for Enforcement division
• Executed Contractors/Procurement
  • Five (5) copiers with maintenance agreements for headquarters and field offices
  • Ergonomic chairs for Berkeley Testing office

Fleet

Two new Ford Fusions will be purchased for the Sacramento Investigative Centers and delivered next month.

Business Continuity Plan

The 2014 Business Continuity Plan is nearing completion and will be submitted to the Department of Consumer Affairs by the end of September.

Travel

The transition to the Concur CalTravelStore will begin in October and end by December. The CalTravelStore will be where all employees for the State of California will book their travel, air, rental car, and lodging reservations.

PERSONNEL UPDATE

Position Changes

There have been 12 internal transfers, 10 transfers from other state departments, 11 new hires and 5 promotions since May of 2014.

Training and Development

Since May of 2014, there has been one training and development assignment.

Vacant Positions

As of May, 2014, the CSLB has a total of 41 vacant positions.

INFORMATION TECHNOLOGY UPDATE

BREEZE

CSLB continues to prepare for the Phase Three release by working on data and conversion cleanup, system documentation, and conducting meetings with other CSLB staff to discuss specific BreEZe requirements.

Once all phases are complete, BreEZe will be the largest enterprise licensing and enforcement solution in the world.

CSLB WEBSITE

The new CSLB website was launched September 5, 2014. There is now more information available to users and it is available on PCs, tablets and smart phones.

SCORE 1.5 (CONTRACTOR EXAMINATION SOFTWARE)

SCORE is the State Contractor Official Regulatory Examination. It is the CSLB's custom software program for contractor examinations. All eight test centers will be implementing this program in September. It is an overall upgrade in technology, security, and ease of use.

INTERACTIVE VOICE RESPONSE SYSTEM

The IVR is an interactive, self-directed telephone system that is a valuable source of information for consumers, contractors, and others. From June 2014 through August 2014, IVR handled a total of 114,484 calls, averaging 38,161 calls a month. This system is available 24 hours a day.

ENTERPRISE IT SECURITY - FIREWALL HITS

The IT staff maintains high security on all of its information technology systems and applications. The CSLB is proactively blocking/denying any unauthorized attempts from all sources including foreign countries. No authorized attempts have been successful.

BUDGET UPDATE

FISCAL YEAR 2013-14 CSLB BUDGET AND EXPENDITURES

The CSLB spent or encumbered $57.4 million through June 2014, the end of the Fiscal Year. That is roughly 94% of its fiscal year 2013-14 budget.

REVENUE

The CSLB received almost $55 million in revenue through June, 2014. That was a 1.2% increase from the prior year.

FISCAL YEAR 2014-15 CSLB PRELIMINARY BUDGET

The preliminary 2014-15 CSLB budget includes over $33 million on personnel and over $62 million in operations.

CSLB FUND CONDITION

The Contractors' License Fund reserve for fiscal year 2013-14 is over $26 million, which gives approximately a five month reserve.

CONSTRUCTION MANAGEMENT EDUCATION ACCOUNT

FISCAL YEAR 2013-14 BUDGET AND EXPENDITURES

The Construction Management Education Account expended roughly $8,000 in pro rata charges and awarded $150,000 in grant awards for Fiscal Year 2013-14.

FUND CONDITION

The fiscal year reserve is $60,000, for approximately 4 months reserve.

STRATEGIC PLAN UPDATE

GOALS

LICENSING & TESTING OBJECTIVES

• Increase high-tech security monitoring in test centers (Important) / Target - December 2014 / Status - Met with vendors: on-target
• Establish task force to analyze application process and reduce rejection rates (Important) / Target - January 2015 / Status - Workload analysis of application units completed: recommendations under review for implementation in 2015
• Develop and apply consistent application evaluation criteria (Essential) / Target - July 2015 / Status - Training of all application staff conducted in May 2014 on existing evaluation criteria; task force to be appointed to develop regulation proposal(s) for evaluation criteria
• Develop online smart application package to reduce application rejection rates (Important) / Target - January 2016 / Status - Tied to DCA BreEZe project
• Full automate bonds and workers' compensation insurance submission process (Important) / Target - January 2016 / Status - Tied to DCA BreEZe project
• Implement online licensure tool for credit card payment (Beneficial) / Target - January 2016 / Status - Tied to DCA BreEZe project

ENFORCEMENT OBJECTIVES

• Establish enforcement strategy to address predatory service and repair scams (Essential) / Target - July 2014 / Status - Complete. Through the Service and Repair Task Force, CSLB investigators partner with the FBI, DA offices and local law enforcement to focus on contractors using predatory scare tactics. The Task Force will continue to provide updates to the Board as required.
• Update Industry Expert Training Program (Important) / Target - October 2014 / Status - Complete. The Enforcement division has updated the training program. Training sessions were held with industry experts in September 2014.
• Automate official educational letter to consumers who repeatedly hire unlicensed operations (Beneficial) / Target - November 2014 / Status - IT Staff currently is working to format the letter into a TEALE-compatible template to finalize the automation process.
• Establish RMO/Application Waiver Task Force to identify issues and make enforcement strategy recommendations (Essential) / Target - December 2014 / Status - Completed. The Application Waiver Task Force, comprised of two ERs was established in August 2014.
• Create Peace Officer Special Investigation Unit (Important) / Target - December 2014 / Status - CSLB Received final approval from the Department of Consumer Affairs in August 2014 to establish the SIU. Recruitment to fill the Enforcement Supervisor I position is underway.
• Implement Peace Officer Training Curriculum (Important) / Target - December 2014 / Status - At its August 19, 2014 meeting, the Enforcement Committee approved a recommendation to present the proposed training curriculum to the full Board.
• Provide for the disclosure of partnering agencies' administrative actions section on CSLB website (Beneficial) / Target - December 2014 / Status - CSLB now discloses Division of Labor Standards Enforcement Civil Wage & Penalty judgments and contracts subject to egregious Stop Notices filed with Caltrans. Staff continues to work with IT to assess further programming needs to display additional state and local government disciplinary actions.
• Partner with Public Affairs Office and California Energy Commission to create an energy efficiency campaign (Beneficial) / Target - January 2015 / Status - This is an ongoing effort.

PUBLIC AFFAIRS OBJECTIVES

• Establish outreach strategy to address predatory service and repair scams (Essential) / Target - August 2014 / Status - Completed. Ongoing adjustments.
• Complete flagship consumer publication (Essential) / Target - Previously September 2014 but New Date of December 2014 / Status - Delayed due to graphic designer vacancy
• Complete flagship contractor publication (Essential) Target - Previously December 2014 but New Date of March 2015 / Status - Delayed due to graphic designer vacancy
• Work with Information Technology division to determine feasibility of developing opt-in "Find a Contractor" website feature (Beneficial) / Target - December 2014 / Status - Preliminary meetings have occurred
• Work with Information Technology division to determine feasibility/need to update pocket license cards (Beneficial) / Target - December 2014 / Status - Preliminary meeting has occurred
• Determine feasibility of developing system to send licensees renewal information and updates via text and email (Beneficial) / Target - December 2014 / Status - Not started
• Explore feasibility of obtaining a contract for advertising services to enhance media outreach opportunities (Beneficial) / Target - December 2014 / Status - Not started
• Develop contractor bid presentation kit (Beneficial) / Target - March 2015 / Status - PAO has begun to develop a list of materials to include
• Develop CSLB style guide and grand standards manual (Beneficial) / Target - March 2015 / Status - Delayed due to graphic designer vacancy

LEGISLATION OBJECTIVES

• Prepare and submit Sunset Review Report to California Legislature (Essential) / Target - November 2014 / Status - Draft report complete
• Provide end-of-year training to staff on new laws that will take effect the next year (Beneficial) / Target - December 2014 / Status - Will prepare in October, after final action complete on 2014 legislation
• Pursue legislation to allow CSLB enforcement representatives to investigate active job sites (Essential) / Target - January 2015 / Status - SB 315 approved by Legislature, pending Governor's signature
• Pursue legislation to increase amount of surety bond to reflect homeowner risk (Important) / Target - December 2015 / Status - Included in Sunset Review Report as a new issue
• Review CSLB's laws and rules (Beneficial) / Target - Ongoing / Status - In process

IT & ADMINISTRATION OBJECTIVES

• Request additional staff in Case Management (Citation Program) through the Budget Change Proposal (BCP) process to meet operational demands (Essential) / Target - July 2015 / Status - BCP denied by Business, Consumer Services, and Housing Agency
• Request additional Statewide Investigative Fraud Team (SWIFT) staff in remote locations through the BCP process to meet operational demand (Essential) / Target - July 2015 / Status - On target
• Request additional staff for the Public Works Program through the BCP process to meet operational demands (Essential) / Target - July 2015 / Status - On target
• Implement State Contractor Official Regulatory Exam (SCORE) 2.0 computer testing system to improve security and make exams more user-friendly (Important) / Target - December 2015 / Status - SCORE 2.0 will consist of six applications. IT rolled out SCORE 1.5 in September 2014 as a pre-cursor to 2.0, and has finished the development of the first application
• Prepare CSLB for implementation of BreEZe by actively working with Department of Consumer Affairs BreEZe team (Essential) / Target - January 2017 / Status - In progress

UPDATE ON REGISTRAR APPOINTMENT PROCESS

Registrar Steve Sands is retiring effective December 21, 2104. The search for a new Registrar has begun. The Board is currently inviting applications for the position. All applications must be received by October 15, 2014. The Board will then form a selection committee and qualifying applicants will be interviewed by the Board at the December Board meeting in a closed session. We will let you know the decision on who the new Registrar is as soon as we know.

SUNSET REVIEW REPORT AND RECOMMENDATIONS

The Sunset Review is a process wherein each board or bureau in California has to "justify" its existence to the Legislature and propose any future recommendations. The Board prepares its report and recommendations for the Sunset Review. At this point, the Board has completed its draft. All of the future changes are non-substantive.

The two main issues, at a brief glance, that will be addressed in the CSLB's Sunset Review will be to increase the CSLB enforcement staff for emerging enforcement environment and to update the Contractors State License Law.

FUTURE AGENDA ITEMS

The most important future agenda items are the selection of the new Registrar and Legislative Proposals.

REVIEW OF TENTATIVE SCHEDULE

December 11, 2014, Berkeley

March 2015, San Diego

June 2015, San Francisco Bay Area (Nevada Joint Meeting)

Abdulaziz, Grossbart & Rudman

provide this information as a service to its friends & clients and it does not establish an attorney-client relationship with the reader. This document is of a general nature and is not a substitute for legal advice. Since laws change frequently, contact an attorney before using this information.

Abdulaziz, Grossbart & Rudman

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