April 6, 2016

The Contractors' State License Board held a Board Meeting in Sacramento on April 6, 2016.

There are no vacancies on the Board.

1. Authorizes a person who uses an unlicensed contractor to bring an action in any court of competent jurisdiction for recovery of compensation paid to the unlicensed contractor for performance of any act or contract.
2. Authorizes a court to determine that a contractor has substantially complied with licensure requirements, under limited circumstances.
3. Provides that the four criteria the court should consider to determine substantial compliance are that the contractor:

• Had been duly licensed as a contractor in this state prior to the performance of the act or contract;
• Acted reasonably and in good faith to maintain proper licensure;
• Did not know or reasonably should not have known that he or she was not duly licensed at the time when performance of the act or contract commenced; and
• Acted promptly and in good faith to reinstate his or her license upon learning it was invalid.

1. Revises the conditions a contractor must meet for a court to determine that a contractor is in substantial compliance with licensing requirements (as described in 3 above).
2. Revises the last criteria to instead provide that the contractor acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.
3. Requires (rather than permits) a court to determine that a contractor is in compliance with the licensing requirements, if all of the conditions are met.

1. Study where occupational licensing requirements create an unnecessary barrier to labor market entry or mobility, particularly for dislocated workers, transitioning service members and military spouses.
2. Submit a report to the Legislature by July 1, 2017.

1. Study where occupational licensing requirements create an unnecessary barrier to labor market entry or mobility, particularly for dislocated workers, transitioning service members and military spouses.
2. Submit a report to the Legislature by July 1, 2017.

1. Authorizes the Contractors State License Board (CSLB) to add a feature to its current online license check function that allows a consumer to search for a licensed contractor by either zip code or location.
2. Specifies that this may be done either when funds are available or during a scheduled update of CSLB's website.

1. Requires that, prior to the completion of the sale or financing of a solar energy system, a solar company provide each customer with a solar energy disclosure document (document).
2. Requires that the document include:
   • A list of current residential or business electric rates by kilowatt hour.
   • The payback calculation rate for the system.
   • A notification that electric rates are subject to future change, and that estimates of savings are based on today's electric rates.
   • A link to a page on the customer's electricity provider's webpage that provides information about the provider's filings regarding future rates.
   • A description of the solar company's contractor's license, and the name of the qualifier.
   • Valid certificates of insurance for the company's commercial general liability and workers' compensation insurance policies.
   • A description of the average level of electricity per month produced by the solar panels.
   • A notification that when renewable energy attributes are retained by a solar company, the customer is not buying solar power or renewable energy.
   • A notification that the balance of any financing or lease arrangement is payable to the solar company in the event of the death of the customer.
   • An estimate of the cost of removing and reinstalling panels if the roof needs to be replaced.
   • An explanation of the potential change in electricity production of a system if the panels become dirty or covered with debris, and instructions on how to maintain the system.
   • An explanation that if a system is financed by a loan that requires a super priority lien on the mortgage, the homeowner may be unable to refinance his or her mortgage.
   • A notification that customer bill credits are compensated by other customers of the electricity provider.
   • Requires that if the contract was primarily negotiated in Spanish, Chinese,Tagalog, Vietnamese, or Korean, these disclosures be provided in that language.
   • Requires the Department of Consumer Affairs (DCA) to adopt a regulation with a DCA solar energy system disclosure document (DCA disclosure) informing customers of risks and rewards of a system, and that this be provided to consumers at the same time as the other disclosure required by this bill.
   • Requires that the DCA disclosure include information on all of the following:
     • Solar energy system malfunctions.
     • Installations not performed to code.
     • Roof intrusions and related structural concerns.
     • Bankruptcy, insolvency, default, takeover, or closure of a solar company with existing customers, especially with respect to companies with lease systems.
     • Loss of warranty on systems caused by bankruptcy, insolvency, default,takeover, or closure of a solar company or manufacturer.
     • States the intent of the Legislature to enact legislation that would require DCA to certify a solar company and establish an insurance pool for customers to access to obtain compensation for system claims, and that the funds be raised annually from all solar companies actively doing business in the State.
     • Authorizes a customer damaged by a willful violation of these requirements to bring a civil cause of action against a solar company for damages.

1. Authorizes boards within the Department of Consumer Affairs (DCA) to establish,by regulation, a retired license category for persons who are not actively engaged in the practice of their profession.
2. Provides that the regulations shall specify that a retired license holder shall not engage in any activity for which a license is required, unless the board, by regulation, specifies the criteria for a retired licensee to practice.
3. Provides that an individual who holds a retired license shall not be required to renew the retired license.
4. Specifies that to reinstate a retired license to an active license, the retired licensee must pay a fee; certify that he or she has not committed an act or crime constituting grounds for denial of a license; comply with any fingerprint requirement; and comply with any other requirements a board specifies by regulation.
5. Authorizes a board to investigate the actions of any licensee, including a retired licensee.

1. Requires a licensee of the Contractors State License Board (CSLB), within 90 days, to report to the Registrar in writing the occurrence of any of the of the following events:
   • Conviction of any felony;
   • Conviction of any crime that is substantially related to the qualifications,functions, and duties of a licensed contractor;
   • A civil action settlement or administrative action resulting in a settlement, if the amount is $50,000 or greater, involving fraud, deceit, misrepresentation, breach or violation of a contract, negligence, incompetence, or recklessness by the licensee; or,
   • A binding arbitration award or administrative action resulting in a binding arbitration award, if the amount is $25,000 or greater, involving fraud, deceit,misrepresentation, breach or violation of a contract, negligence, incompetence,or recklessness by the licensee.
   • Provides that failure to report is grounds for disciplinary action.
   • Requires an insurer providing professional liability insurance to a licensee to report to the Registrar, within 30 days of payment of a civil action settlement or arbitration award against a licensee, the name of the licensee, the amount of the settlement or arbitration award, the amount paid, and the identity of the payee.
   • Requires a state or local government agency that self-insures to report to the Registrar, within 30 days of payment of a civil action settlement or arbitration award against a licensee, as described in paragraph (1) above, the name of the licensee, the amount of the settlement or arbitration award, the amount paid, and the identity of the payee.
   • Requires the Registrar to make available to the public all civil action settlements,binding arbitration awards, and administrative actions, if those settlements or arbitration awards have been referred for investigation, as specified.
   • Provides that all of these provisions shall only become operative if the Legislature appropriates money from the Contractors' State License Fund for the purposes of this section and grants sufficient hiring authority to CSLB.

1. Requires that every operator of a subsurface installation (except CalTrans)become a member of, participate in, and fund a regional notification center.
2. Requires a person planning any excavation to contact the appropriate notification center before work begins.
3. Provides that a willful or deliberate violation of the regional notification system requirements by a licensee of the Contractors State License Board (CSLB)constitutes a cause for disciplinary action by CSLB.

1. Contains several findings and declarations of the Legislature regarding the need for increased communication between subsurface installation operators and excavators; states that exemptions allowing excavation without first calling a regional notification center should be permitted only if procedures exist so that the excavation occurs without compromising safety; and that the existing exemption that permits private property owners to dig on their own property without notification does not have a basis in safety.
2. The findings further state that California should have an advisory committee,composed of excavation stakeholders, to perform the following three major tasks:
   • Coordinate the diverse education and outreach efforts undertaken by state and local agencies, operators, and excavators and issue grants for targeted efforts;
   • Study excavation questions and develop standards that clarify best practices;and
   • Investigate potential violations of the one-call law that inform both the standards it is to develop and potential enforcement actions.
3. Makes various revisions to the Regional Notification Center System, including the definitions of relevant terms.
4. Provides that an excavator who damages a subsurface installation because of inaccurate marking shall not be liable for damages.
5. Limits the existing exemption for property owners to, instead, provide that exemption only when the work does not require a permit, the property has no easement or right of way, and the work involves only non-mechanized hand tools.
6. Exempts from the definition of "excavation," until January 1, 2020, landscape maintenance activity performed with hand tools at a depth of no more than 12 inches, and plowing, cultivating, planting, harvesting, or similar operations in connection with agricultural activities, unless the activity disturbs the soil, to a depth of 16 inches or more.
7. For an excavation within the approximate location of a subsurface installation,requires the excavator to determine the exact location of the installations within the tolerance zone using hand tools before using any power-driven excavation or boring equipment within the approximate location of the installations. Further requires the excavator to use reasonable care to prevent damage to subsurface installations.
8. Requires the Occupational Safety and Health Standards Board to revise its regulations to clarify best practices by excavators.
9. Creates the California Underground Facilities Safe Excavation Advisory Committee (Committee), under CSLB and assisted by CSLB's staff. The Committee would be tied to CSLB's sunset date and review process, but does not have a sunset date itself. Provides that the Committee only becomes operative upon appropriation by the Legislature.
10. Provides that dig alert requirements can be enforced, following are commendation by the Committee, as follows:
    • CSLB, on contractors.
    • The Public Utilities Commission (PUC), on gas and electrical corporations.
    • The Office of the State Fire Marshal, on operators of hazardous liquid pipeline facilities.
11. Requires the Committee to coordinate education and outreach activities that encourage safe excavation practice.
12. Requires the Committee to develop standards relevant to safety practices in excavating around subsurface installations and procedures and guidance in encouraging those practices. Provides that the standards shall address all of the following:
    • Evidence necessary to demonstrate compliance with the law;
    • Guidance for recommended sanctions against excavators and operators for violations. Provides that guidance shall include the circumstances under which an investigation will be transmitted for formal disciplinary action, and may allow for a decision not to send complaint forward, if the investigation was triggered by a complaint, the parties have settled, and the Committee has determined no further action is needed. Further requires recommendations for sanctions to be graduated;
    • What constitutes reasonable care in conducting deep excavations within the tolerance zone; and
    • What constitutes reasonable care in grading activities on road shoulders and dirt roads, which may include standards for potholing.
13. Requires the Committee to develop and recommend a standard or set of standards requiring all new non-pressurized sewer lines, non-pressurized storm drains, and other non-pressurized drains that connect from building structures to the public right-of-way to include the installation of tracer tape or wire to aid in detection and tracing of these subsurface installations, non-pressurized sewer lines, non-pressurized storm drains, and other non-pressurized drains or adoption by the California Building Standards Commission.
14. On or before December 31, 2018, requires the Committee, in consultation with the California Department of Food and Agriculture, and after an agricultural stakeholder process, to make recommendations for long term treatment of agricultural activities.
15. Beginning January 1, 2018, requires the Committee to investigate possible violations of the law, including complaints from affected parties and members of the public. Authorizes staff to use compliance audits, including field audits, and investigations of incidents and near-misses.
16. Provides that the Authority shall have nine members, as follows:
    • Four appointed by the Governor, three of whom shall have knowledge of and experience in the operation of subsurface installations (including one with a municipal utility), and one with knowledge and expertise in subsurface installation location and marking.
    • Three members (one "A" licensee, one "B" licensee and one "C" licensee)appointed by CSLB, who shall have knowledge of and experience in contract excavation for employers who are not operators of subsurface installations.
    • One member appointed by the Assembly Speaker, who has knowledge and expertise in safety matters representing the workers employed by contract excavators.
    • One member appointed by the Senate Rules Committee, who has knowledge of and expertise in managing the underground installations on one's own property, and may be drawn from agricultural, commercial, residential, or other property sectors.
    • Authorizes the Committee to invite one director of operations of a regional notification center to be a nonvoting ex officio member.
17. Provides for two-year terms for Committee members.
18. States that the Committee may obtain funding for its operational expenses from:
    • The Safe Energy Infrastructure and Excavation Fund.
    • A federal or state grant.
    • A fee charged to members of the regional notification centers not to exceed the reasonable regulatory cost incident to enforcement of these requirements.
    • A filing or administrative fee to hear a complaint.
    • Any other source.
19. Requires the Committee to annually convene a meeting with state and local agencies, California operators, regional notification centers, and trade associations that fund outreach programs that encourage safe excavation practices. Further provides that that meeting shall determine areas in which additional education and outreach efforts should be targeted.
20. Upon completion of an investigation, requires the Committee to inform the following parties of the results, including any findings of possible violations:
    • The party or parties whose activities were the subject of the investigation.
    • The complainant, if the investigation was initiated as the result of a complaint.
    • Any excavator and operator whose activities or subsurface installations were involved in the incident.
21. Provides that if the Committee finds a probable violation of the article, it shall transmit the investigation results and any recommended penalty to the state or local agency with jurisdiction over the activity or business undertaken in commission of the violation.
22. For an investigation of a violation regarding the delineating and tolerance zone requirements, prohibits a complainant from seeking action in court for damages until the investigation is complete, or for at least 120 days after the investigation begins, whichever occurs first.
23. If a complainant files an action or damages based upon these requirements, after the completion of an investigation in which the person was found to have not violated the requirements, the complainant shall also notify the Committee when the action is filed.
24. Requires the Committee to annually report to the Legislature and Governor.
25. By February 1, 2019, requires the PUC to report to the Legislature and the Committee an analysis of excavation damage to commission-regulated pipeline facilities.
26. Until January 1, 2020, requires each gas corporation to report to the PUC and the Committee specific excavation damage data and analyses.

1. Allows licensees that were on active duty in the armed forces to reinstate their license without examination or penalty.
2. Requires boards to waive the renewal fee and other renewal requirements for any licensee called to active duty in the armed forces.
3. Requires boards to expedite a license application from an applicant who was honorably discharged and was on active duty with the armed forces.

1. Requires boards within the Department of Consumer Affairs (DCA) to create a fee waiver program for the issuance of a license to an honorably discharged veteran who serves as an active duty member of the California National Guard of the U.S. Armed Forces.
2. Specifies the program shall be developed in consultation with the Department of Veterans Affairs and the Military Department.
3. Provides the fee waiver shall only apply to a license issued to an individual veteran and not to a license issued to a business or other entity.
4. Limits the waiver to only the initial issuance of the license.

1. The other license was issued, or associated with the license subject to the citation, on or after the date of the act or omission that led to the issuance of the citation.
2. The other license includes a member of the personnel of record, who at the time of the action that led to the citation, was identified as a qualifier of the license subject to the citation.

1. Requires boards within the Department of Consumer Affairs (DCA) to waive the renewal fees and other related renewal requirements for any licensee called to active military duty.
2. Requires DCA boards to ask on all applications if the applicant is currently or has previously served in the military.
3. Beginning July 1, 2016, requires boards to expedite the initial license process for applicants who previously served in the military and were actively discharged from service.

• Elderly Homeowner Cools Down after HVAC System is Completed
• Contractor Triples the Bill for Elderly Homeowner
• Contractors Says "Thank You" for His Warning Letter
• CSLB Intake Meets with PG&E about the "Call Before You Dig" Program

• Revoked Contractor and His Unlicensed Brother Convicted
• Update: All Parties Face Criminal Charges in Bay Area "RMO-for-Hire" Case
• Homeowners Get Burned by Fire Restoration Contractor
• Criminal Charges Filed Against Suspended Licensee for Fraudulent Public Works Contract
• Repeat Offender Back on San Francisco Investigation Center's Radar
• Bay Area Engineering Contractor Loses Complete Control of Church Remodel
• Update: Previous Offender Extradited to California, Sentenced to One-Year in Jail and Fines
• Costly Friendship for RMO

• CSLB Meets with the Solar Energy Industries Association
• Solar Panel Bait and Switch by Revoked Licensee: Referrals for Criminal Charges in Multiple Counties

• Tree Down, Results in Criminal Referral
• Law Enforcement Backup in "Right Place at Right Time" During CSLB Undercover Operation
• New Website Thumbtack.com Operates Like a "Reverse" Craigslist
• Multiple Unlicensed Contractors Caught in Two-Day Sting Operation in San Diego
• Santa Barbara County Sting Operation Results in 21 Notices to Appear
• Ex-Husband Brought to Justice for Fraudulent Use of Former Wife's License
• Old Friends, New Relationships: Back Patrolling Marin County with Three New Operations

• Southern Investigation Centers Attend Advanced Investigation Course
• Southern SWIFT Attends Undercover Operations Training
• CSLB Enforcement Division Wraps Up Employee Safety Training
• Southern Swift Attends Criminal Prosecution Training

1. State Agency Partnering;
2. Develop Educational / Warning Letter Regarding Workers' Compensation Compliance;
3. Review Public Works Contractors Registered with the Department of Industrial Relations;
4. Research Construction Monitor Database; and
5. Review Consumer Filed Complaints for Workers' Compensation Compliance

• A General Engineering;
• C-8 Concrete;
• C-10 Electrical;
• C-10 HVAC;
• C-36 Plumbing; and
• C-46 Solar.

1. Identify Three Egregious Offenders for each of the 37 district attorney's offices receiving grants from the California Department of Insurance Workers' Compensation Insurance Fraud Grant Program;
2. Expand Sting and Sweep Operations to Public Works Projects; and
3. Perform Inspection of Construction Sites identified by the Construction Monitor Database.

1. Pursue criminal convictions for three egregious offenders in the 27 workers compensation insurance grant funded counties;
2. Expand sweep operations targeting workers' compensation violations at public works projects; and
3. Inspect construction sites of exempt contractors identified via the Construction Monitor database.

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

• 2016 Law & Reference Book;
• New What Happens Now brochure (Spanish);
• New Build a Rewarding Career: Protecting California Consumers brochure;
• A Homeowner's Guide to Preventing Mechanics Liens brochures (English & Spanish);
• A Consumer Guide to Filing Construction Complaints brochures (English & Spanish);
• A Guide to Contractors License Bonds; and
• Building Your Career as a Licensed Contractor.

• Mandatory Settlement Conference Tips brochure;
• New Consumer Guide;
• Mandatory Arbitration Program Guide;
• Voluntary Arbitration Program Guide; and
• Asbestos: A Contractor's Guide and Open Book Exam.

• New Contractors Guide;
• 2015 Building Official Information Guide; and
• New outreach pull-up banners.

• 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.

TENTATIVE BOARD MEETING SCHEDULE

June 23 - 24, 2015, Garden Grove, California