December 11, 2014

The Contractors' State License Board held a Board Meeting in Berkeley on December 11, 2014.

Board Members Present:

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

Board Members Absent:

John O'Rourke and Bruce Rust.

CHAIR'S REMARKS

The chair announced (which everyone knew) that this was Steve Sands last board meeting as Registrar. Steve Sands, after 14 years as Registrar, is retiring. Steve was presented with a certificate and a resolution. Many of the Board members and staff shared their remarks and feelings for Steve Sands, having worked for and with him.

On a personal note, our office, for over 30 years has monitored the comings and goings of the CSLB. We have known and worked with many Registrars. It is with a great amount of sadness that Steve will be leaving his post. He has been a tremendous asset to the construction industry. He will sorely missed.

CLOSED SESSION REGARDING APPOINTMENT OF REGISTRAR

The Board members broke into a closed session to discuss and interview candidates for the position of Registrar. After a 2 ½ hour closed session, the board announced without disclosing a name for Registrar, that they will be making a recommendation to the Department of Consumer Affairs.

ENFORCEMENT COMMITTEE REPORT

ENFORCEMENT PROGRAM UPDATE

INTAKE / MEDIATION CENTERS (IMCS)

The Intake / Mediation Centers financial settlement amount from June of 2013 through October of 2014 was almost $12 million.

INVESTIGATIVE CENTERS (ICS)

The Investigative Centers financial settlement amount from July of 2013 through October of 2014 was just over $5.4 million.

GENERAL COMPLAINT-HANDLING STATISTICS

The determined manageable level of pending complaints for all current CSLB Enforcement staff is 3,185. October 2014, saw a pending caseload of 3,084.

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 closure of 10 complaints per month - ERs are closing an average of 10.
• Settle 30% of licensee complaint with restitution paid - 41% are being settled.
• Appropriately dispose of 70% of IMC licensee complaints within 90 days - the average is currently 63%.
• Maintain 100 or fewer cases that exceed 270 days in age - There are only 46 aged cases.

CASE MANAGEMENT

July of 2013 through October of 2014 saw over 3,000 citations issued. There were over 500 Mandatory Settlement Conferences scheduled with over $1.7 million in civil penalties collected with the legal fee savings being over $2.5 million.

With almost 500 arbitrations and the restitutions paid, the public saved almost $1.7 million.

STATEWIDE INVESTIGATIVE FRAUD TEAM (SWIFT)

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 414 sting and sweep days with over 2034 legal actions, which include citations and written Notices to Appear in criminal court.

Fall Blitz

SWIFT investigators conducted the annual Fall California Blitz on November 5 & 6, 2014. This was conducted in seven (7) cities around the state. There were 112 arrests because of the blitz.

ELECTRICIAN CERTIFICATION UPDATE

The Board asked the Attorney General's Office for their legal opinion on the following:

"Does the court of Appeal's opinion in Alameda County Joint Apprenticeship and Training Committee v. Roadway Electric Works, Inc. (2010) 186 Cal. App. 4th 185 expand the definition of licensed electrical contractors that are involved in the construction or installation of electrical conduit or raceways?"

The CSLB did not receive a formal published opinion but a letter stating that there is no expansion of the definition of "electrician" and therefore, the Board will continue to enforce electrician certification violations in the same manner as in the past.

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)

Proposed Training for 2015:

• CSLB Enforcement Academy - Conduct two CSLB Enforcement Academies in the spring and fall for newly hired employees.
• SWIFT Training Module - Training for all SWIFT staff. Participants will be divided into teams and sweeps conducted in the local area. An evaluator will be assigned to each group. After the sweeps are conducted, participants will meet in a group setting to discuss what tactics worked, what tactics did not, needed improvements, violations found, and stop orders issued.
• Advanced Module 1 - Develop a curriculum for advanced code training, situation awareness, investigator awareness, investigator image, investigator demeanor, and case and time management. The course will require investigators to bring one case to a group discussion for review with Deputy Attorney General Mike Franklin.
• Advanced Module 2 - Develop a curriculum for advanced interview techniques training to help investigators improve their interview skills. This class will include a lecture portion and interview workshops. Each investigator will be evaluated on efficiency and effectiveness and receive constructive feedback.
• Advanced Module 3 - Develop a curriculum for investigators who would benefit from an advanced class to improve report writing skills.
• Laws of Arrest, Search & Seizure - Present one class for the year for staff to take the CSLB equivalency of POST's class on Penal Code 832 - Laws of Arrest. This course was last held in 2013, and since then CSLB has hired many new employees that would benefit from this class in 2015.

REVIEW AND DISCUSSION REGARDING PERMIT ENFORCEMENT

CSLB BUILDING PERMIT ENFORCEMENT PROGRAM

In 2006, CSLB entered into a Memorandum of Understanding with the California Building Officials (CALBO) to share information and partner on the enforcement of building code requirements. On June 11, 2009, CSLB's Board voted unanimously to place a high priority on enforcing building permit requirements.

Outreach

This has caused many education outreach efforts, including the launch of a statewide informational campaign, CSLB industry bulletins, news releases, and newsletter articles.

Enforcement Efforts

When a contractor fails to pull a local building permit before performing work, it is a violation of Business and Professions Code §§ 7110 & 7090. Violators are subject o disciplinary action by the CSLB including civil penalties of $5,000 per violation; orders of correction requiring payment of permit fees and any assessed penalties imposed by the local building department; and suspension or revocation of the license.

Building Permit Violation Referral

The Building Permit Violation Referral form was developed in 2010 as part of the CSLB's enforcement efforts. This form is for consumers, government agencies and law-abiding contractors to file a complaint against anyone who does not obtain the necessary building permits.

Building Department and Partner Agency Complaints

There is a dedicated member of the Intake and Mediation Center to screen the building permit complaints as well as two Enforcement Representatives to take appropriate enforcement action. The CSLB encourages agencies to partner in its enforcement efforts and help to change contractor behavior by filing building permit complaints.

HVAC Ambassador Bid Packet

The contractors in the HVAC specialty classification have one of the worst building permit compliance rates with less than 10% compliance. The CSLB has drafted an "Ambassador Bid Packet" for use by HVAC contractors who will become ambassadors to consumers and the industry to help assure proper installation. This informational packet will assist contractors in educating prospective customers through the presentation of materials that explain the benefits of obtaining a building permit and conducting inspections. This packet will contain educational fliers as well as tips for hiring a responsible contractor.

Zero Tolerance

CSLB has publically stated its zero tolerance for contractors who fail to obtain a building permit and that evidence of a contractor violation likely will result in an administrative action. The increased enforcement efforts have led to a 226% increase in the issuance of building permit citations since 2010.

CSLB - CALBO ENHANCED PARTNERING OPPORTUNITIES

Despite the demonstrated success in building permit enforcement, some building officials do not support CSLB efforts to assist them in enforcing code requirements. They have inconsistent reporting policies, and their building inspectors refuse to testify without first being paid a $250 witness fee. CSLB cannot pay a fee prior to an individual testifying.

CSLB needs the cooperation of building departments to assist in achieving code compliance. To that end, staff will update the 2006 MOU with CALBO to include more specific language about the information that will be shared between CSLB and CALBO.

In addition, CSLB needs to identify cooperative building departments willing to confirm the failure to obtain a permit, identify the ordinance that adopted the permit requirement, and, when necessary, provide a building inspector to testify. When possible, CSLB will use a CSLB industry expert, rather than a building inspector, to support the permit violation.

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 an Information Officer I.

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

Public Meetings

Since the September 2014 Board meeting, the Public Affairs Office has produced live web streams for the Legislative Committee meeting.

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. November 19, 2014, had 73 photos on Flickr available for download.

Twitter

From September 9, 2014 through November 19, 2014, the CSLB gained 60 additional followers on Twitter, for a total of 1,622 followers. The Public Affairs Offices posted 41 new tweets during this time period, bringing the total tweets to 624.

Facebook

As of November 19, 2014, the CSLB had 1,796 likes on its Facebook page. This is an increase of 86 since September 9, 2014.

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

YouTube

September 9, 2014, through November 19, 2014, saw 9,997 visitors to the CSLB's You Tube page. That is an average of 141 daily visits.

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 23,394 subscriptions with 194 of those being new since the September 2014 Board meeting.

MEDIA RELATIONS HIGHLIGHTS

Catch a Contractor TV Show

Public Affairs Chief, Rick Lopes and CSLB investigator Ubaldo Sanchez appeared on the Spike TV show "Catch a Contractor" on November 16, 2014. They explained the CSLB's investigative process and possible outcomes related to a home improvement project profiled on the show. The CSLB is currently investigating a complaint filed on the profiled project. The initial rates show that just under one (1) million viewed the first airing of this show.

Media Calls

The Public Affairs Office staff responded to more than three (3) dozen media inquiries from September 9, 2014 and November 19, 2014.

News Releases

The Public Affairs Office distributed 10 news releases to the media between September 9, 2014 and November 19, 2014.

News Media Events

South Napa Earthquake Sting

On October 9, 2014, there was a press event in Napa to publicize the results of an undercover sting operation that took place on August 24, 2014, at a home damaged by the 6.0 Napa earthquake. Eight (8) fake contractors face felony charges for contracting without a license in a declared disaster area and four (4) other unlicensed contractors will face misdemeanor charges for contracting without a license.

Fall California Blitz Undercover Sting Operations

November 10, 2014, saw the press event for the Fall Blitz held in Chula Vista. There were 112 arrests made over the courts of the two-day blitz.

INDUSTRY/LICENSEE OUTREACH HIGHLIGHTS

Industry Bulletins

The Public Affairs Offices alerts industry members to important and interesting news by distributing industry bulletins via email. Between September 9, 2014, and November 19, 2014, the Public Affairs Office distributed three (3) industry bulletins.

PUBLICATION HIGHLIGHTS

The CSLB publications in production:

Completed

• 2015 Sunset Review Report
• November 6, 2014, Legislative Committee Meeting Packet
• December 11, 2014, Board Meeting Packet
• Industry Expert Handbook

In Production

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

In Development

• 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)
  • Updated Stop Order Brochure

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.

COMMUNITY OUTREACH HIGHLIGHTS

Senior Scam Stopper Seminars

Since September 2014, 18 Senior Scam Stopper seminars have been conducted.

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.

LEGISLATIVE COMMITTEE REPORT

LEGISLATIVE PROGRAM UPDATE

Review and Consideration of Recommended Legislative Proposals for the upcoming Legislative Session

Enforcement of Licensing Provisions

The Contractors State License Board requests to amend Business and Professions Code section 7011.4, "Enforcement of Licensing Provisions." The modification will clearly state that CSLB Enforcement Representatives, with designated authority from the Director of Consumer Affairs, may issue a Notice to Appear for unlicensed activity pursuant to Business and Professions Code section 7028, and failure to secure workers' compensation insurance pursuant to section 3700.5 of the Labor Code.

This proposal will expand the authority of Enforcement Representatives (ERs) to issue a written Notice to Appear for failure to secure workers' compensation insurance.

Authority to Issue Citations - Collection of Additional Information

This proposal would provide CSLB the authority to collect Social Security Numbers from non-licensees for the purpose of pursuing payment of a fine amending Business and Professions Code section 7028.6.

This proposal would allow the Contractors State License Board (CSLB) to collect a Social Security number (SSN) from an individual contracting without a license. This authority would pertain primarily to individuals identified during an undercover sting operation.

Notification by Licensees of Changes in Recorded Information

Business and Professions Code sections 136 and 7083 conflict as to the required

timeframe for a licensee to report an address change.

As these two sections establish different time periods for reporting, one of the provisions

should be amended to eliminate any potential confusion. Staff recommends amending the section within the License Law, rather than the provision that applies to all Department of Consumer Affairs boards.

Violation of Prevailing Wage Requirement

The Labor Commissioner's Office, also known as the Division of Labor Standards Enforcement (DLSE), adjudicates wage claims, investigates discrimination and public works complaints, and enforces Labor Code statutes and Industrial Welfare Commission orders.

This proposal adds the following to Business and Professions Code section 7103:

The issuance of a final Civil Wage and Penalty Assessment by the Labor Commissioner to a licensee shall constitute a cause for disciplinary action.

Fees - Business and Professions Code section 7137

Existing law establishes fees for applications, examinations, and related activities. This proposal would establish a fee to process officer/personnel changes, raise the fee for additional classifications and replacing the qualifier, and establish a fee for processing priority applications.

Home Improvement Salesperson Registration

This proposal would eliminate the requirement that a Home Improvement Salesperson separately register to work for each contractor and, instead, allow a properly registered Home Improvement Salesperson to utilize his or her registration with one or more licensed contractors.

The licensed contractor would be required to notify CSLB about the pending employment of any registered Home Improvement Salesperson, including the registration number, prior to the HIS beginning work.

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 September 30, 2014, 2,263 LLC applications have been received with 750 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 307,333 transmittals from the Department of Justice with more than 53,900 of those containing criminal conviction records. As of October 31, 2014, 1,201 of those applications have been denied, 1,395 have been issued probationary licenses, and 602 of the denied applicants appealed their denials.

APPLICATION 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:

• Indentify 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 95% of all calls answered with an average of 13,500 calls per month. This is attributed to staffing levels and training.

Staffing Update

Three (3) new Program Technician II's were hired effective September 1, 2014. The Call Center is now fully staffed with 13 full-time Program Technician II's and two Retired Annuitants.

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.

Test Center Status

CSLB maintains test centers in Sacramento, Berkeley, San Jose, Fresno, Oxnard, Norwalk, San Bernardino and San Diego.

Examination Administration Staffing

The Examination Administration Unit is fully staffed and annual training was held November 12 and 13, 2014.

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 November of 2014, for C-28 Lock and Security Equipment and C-35 Lathing and Plastering.

Current examinations that are in progress with occupational analyses are the C-9 Drywall, C-29 Masonry, C-31 Construction Zone Traffic Control and AS-C Asbestos Certification.

New examinations are also in progress for A General Engineering, B General Building, C-6 Cabinet, Millwork and Finish Carpentry, C-10 Electrical, C-11 Elevator, C-15 Flooring and Floor Covering, C-20 Warm-Air Heating, Ventilating and Air Conditioning, C-23 Ornamental Metal and C-43 Sheet Metal, C-36 Plumbing, C-43 Sheet Metal, and C-51 Structural Steel.

Examination Development Unit Staffing

The Examination Development Unit has a Test Validation and Development Specialist II vacancy.

C-22 Asbestos Abatement Project

Because of the new C-22 Asbestos Abatement license classification, EDU, with the help of Subject Matter Experts, is splitting the current Asbestos Abatement Certification examination into two parts. The result will be a C-22 Asbestos Abatement examination and an AS-C Asbestos Certification examination. Both examinations will be ready for use on January 1, 2015.

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.

TESTING DIVISION

Civil Service Examinations

The Examination Development Unit also works on civil service classification examinations that are used at the CSLB. November 18, 2014, saw five (5) test centers administer the Enforcement Representative I exemption.

October saw job analysis and examination development begin for the Management Services Technician classification.

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.

A pre-construction meeting was held November 19, 2014, to discuss plans to increase the office space at the West Covina office in order 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 were 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
  • Chair cleaning services for two testing centers.
• Procurement in Progress
  • Thirty (30) new surveillance cameras for Enforcement division - delivery is expected late-November
  • New polo shirts for enforcement staff, pending completion of logo design
  • Nine hundred (900) "Consumer/Contractor" signs, in English and Spanish, to post at disaster areas that warn homeowners and contractors about the consequences of hiring unlicensed contractors.
• Executed Contractors/Procurement
  • Twenty-seven (27) sets of wireless audio surveillance equipment were delivered to the Northern Central and Southern SWIFT units in October 2014, for which the vendor provided training to staff.
  • One new copier, with a maintenance agreement, for the headquarters warehouse
  • Twenty-two (22) ergonomic chairs for headquarters Enforcement division conference rooms

Travel

Beginning in December 2014, all State of California employees are required to book their travel, including air, rental car, and lodging reservations, through CalTravelStore. CSLB has implemented this transition and provided training to staff on the new system, meeting the State mandated timeframe.

Fleet

Two new Ford Fusions were purchased for the Sacramento Investigative Centers and delivered in October 2014.

Records Retention

The CSLB submitted and received approval from the Secretary of State for the new records retention schedule, which will remain in effect until August 2019.

PERSONNEL UPDATE

Staff has worked hard to reconcile its established positions and to account for each of the 403 budgeted positions without exceeding the authorized personnel.

Examinations

The CSLB offers several examinations to assist staff to advance their careers, including various examinations.

Position Changes

There have been six (6) internal transfers, five (5) transfers from other state departments, nine (9) new hires; 5 promotions; and two (2) student hires on September 23, and November 17, 2014.

Vacant Positions

As of November 17, 2014, the CSLB has a total of 37 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.

INTERACTIVE VOICE RESPONSE (IVR) 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 unauthorized attempts have been successful.

BUDGET UPDATE

FISCAL YEAR 2014-15 CSLB BUDGET AND EXPENDITURES

The CSLB spent or encumbered $23.1 million through October 31, 2014, which is roughly 37% of the fiscal year budget.

REVENUE

The CSLB received just over $23 million in revenue for the first quarter of the 2014-15 fiscal year.

CSLB FUND CONDITION

The Contractors' License Fund reserve for fiscal year 2013-14 is over $26 million, which gives approximately a five month reserve. However, the projection for fiscal year 2014-15 is just over $20 million, only leaving a reserve of 3.9 months.

CONSTRUCTION MANAGEMENT EDUCATION ACCOUNT

Fiscal Year 2013-14 Budget and Expenditures

The Construction Management Education Account expended roughly $2,000 in pro rata charges through October 31, 2014.

Fund Condition

The final fiscal year 2013-14 reserve was $33,000 for 2.6 months. The projected 2014-15 fiscal year reserve is $80,000.

STRATEGIC PLAN UPDATE

GOALS

LICENSING & TESTING OBJECTIVES

• Increase high-tech security monitoring in test centers (Important) / Target - December 2015 (for Installation) / Status - Met with vendors; in process of revising specifications document
• 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
• Fully automated 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 partnered 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 operators (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. Interviews were held in October of 2014 for the Enforcement Supervisor I position. A candidate was selected and is currently pending DCA approval.
• Implement Peace Officer Training Curriculum (Important) / Target - December 2014 / Status - Completed. The Peace Officer Training Curriculum was approved by the Board and immediately implemented.
• Provide section 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 - March 2015 / Status - Delayed due to graphic designer vacancy and Sunset Review report.
• Complete flagship contractor publication (Essential) Target - July 2015 / Status - Delayed due to graphic designer vacancy and Sunset Review report.
• Work with Information Technology division to determine feasibility of developing opt-in "Find a Contractor" website feature (Beneficial) / Target - December 2014 / Status - Completed. Implementation may not happen until BreEZe.
• 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 - February 2014 / Status - Not started.
• Develop contractor bid presentation kit (Beneficial) / Target - June 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 - Report completed and submitted.
• Provide end-of-year training to staff on new laws that will take effect the next year (Beneficial) / Target - December 2014 / Status - In progress.
• Pursue legislation to allow CSLB enforcement representatives to investigate active job sites (Essential) / Target - January 2015 / Status - SB 315 approved by Legislature, and signed by the Governor.
• 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. Does not meet DCA's mission critical requirements as outlined in the Department of Budget Policy Letter BL 14-12.
• Request additional Statewide Investigative Fraud Team (SWIFT) staff in remote locations through the BCP process to meet operational demands (Essential) / Target - July 2015 / Status - BCP denied. Does not meet DCA's mission critical requirements as outlined in the Department of Budget Policy Letter BL 14-12.
• Request additional staff for the Public Works Program through the BCP process to meet operational demands (Essential) / Target - July 2015 / Status - BCP denied. Does not meet DCA's mission critical requirements as outlined in the Department of Budget Policy Letter BL 14-12.
• 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.

REVIEW OF TENTATIVE SCHEDULE

March 16, 2015, Glendale

June 2015, Fairfield (Nevada Joint Meeting)

September 2015, San Diego

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

(818) 760-2000 FAX (818) 760-3908

info@agrlaw.comwww.agrlaw.com