December 10, 2013

The Contractors' State License Board held a Board Meeting in Norwalk on December 10, 2013.

Board Members Present:

Chair, Joan Hancock; Vice Chair, David Dias; Secretary, Ed Lang; Kevin Albanese; Linda Clifford; Pastor Herrera Jr.; Matthew Kelly; Robert Lamb; Bruce Rust; Paul Schifino; Frank Schetter; and Nancy Springer.

Board Members Absent:

John O'Rourke

SPECIAL AGENDA ITEM

The CSLB recognized the passing of our own, Sam Abdulaziz.

Sam's family and partners attended the meeting at the request of the CSLB. Speakers were Steve Sands, Margie Grein, Matt Kelly, Dave Fogt, Steve Lehtonen, Phil Vermeulen, Rick Pires, Ken Grossbart & Mike Abdulaziz. All spoke about how much Sam meant to them and the construction industry.

PUBLIC COMMENT SESSION

RMO Agency spoke and introduced themselves to the Board.

ENFORCEMENT COMMITTEE REPORT

ENFORCEMENT PROGRAM UPDATE

Special recognition was given to two Deputy District Attorneys for their great work.

Intake and Mediation Centers (IMC)

Overview

The primary purpose of the Intake and Mediation Center (IMC) is to promote reconciliation between conflicting parties by trying to compromise or settle the complaint issues. There are more than 14,000 consumer complaints received by the IMC in a year. There are two Intake and Mediation Centers, Sacramento and Norwalk. They each serve their respective geographic areas.

The Financial Settlement Amount of the IMC from July of 2012 through August of 2013 is $10,374,615.24.

IMC Partners with PG&E

July of 2013 saw the CSLB Enforcement staff meet with PG&E to partner up in order to ensure public safety regarding contractors striking gas lines. CSLB and PG&E agreed to:

• Coordinate outreach efforts;
• Include the Department of Safety and Health as a partner to enforce active job sites where a gas line strike occurred;
• Discipline contractors with a history of failing to call the 811 call before you dig notification service where severe health and safety issues resulted.

At the follow-up meeting in September, success was reported because of complaints to the CSLB and the CSLB's involvement has helped change contractor's behavior with respect to calling 811 before the contractors dig. Contractors now receive a citation for failing to call 811 before they dig.

Complaint Resolution Statistics

The CSLB has two Intake and Mediation Centers (IMC), which are responsible for initiating consumer complaints filed against licensed and unlicensed contractors. The Customer Service Representatives that staff the IMCs are to intervene with conflicting parties and promote reconciliation, compromise or settlement of the issues. The IMC staff also prepares unsettled licensee complaints for field investigation and refers complaints regarding unlicensed practice and other violations for investigation.

Board objectives for the IMC are continually met regarding complaint resolution. For the Fiscal Year 2012-13, 41% of complaints are settled and 68% of the licensee complaints are dispositioned.

Investigation Centers (IC)

Overview

The Investigation Centers are the next step, after the IMC, in the CSLB's complaint handling process. An Enforcement Representative will conduct extensive investigation of the complaint if the matter is not solved at the IMC level, in hopes to find a resolution. There are nine IC offices in California.

The Investigative Centers financial settlement amount from July of 2012 through September of 2013 was $4,552,838.10.

General Complaint Handling Statistics

September 2013 saw the pending caseload at 3,076. The determined manageable level of pending complaints for current CSLB staff is 3,010, so they are a slight amount over "manageable." It is anticipated that the caseloads will continue to rise with time thereby leading to a longer investigation process for consumers.

The following are the Enforcement Objectives regarding complaint-handling:

• Maintain Enforcement Representative 1 production of closing 10 complaints per month
  • September 2013, averaged that objective
• Increase the percentage of licensee complaints settled to 30%
  • September 2013 saw that average at 41%
• Accomplish IMC licensee complaint disclosure of 70%
  • September 2013 saw that average at 68%
• Reduce 270-day-old complaints to 100 or less
  • September 2013 saw 54 aged cases

Vehicle Update

All of the 25 new vehicles have been delivered to the Enforcement offices around the state.

SWIFT

Overview

The Statewide Investigative Fraud Team (SWIFT) takes a proactive approach to enforcement by identifying geographic areas where unlicensed construction or illegal advertising is a problem and then conducts sweeps or sting operations.

There are three SWIFT offices in the state which each have investigators assigned to both the Joint Enforcement Strike Force (JESF) and the Labor Enforcement Task Force (LETF).

Stings/Sweeps

Undercover stings and sweeps were conducted throughout the state each month. There were over 232 sting and sweep days with more than 2,235 legal actions during the fiscal year 2012-2013. Of those, 1,050 suspects received Notice To Appears for contracting without a license, illegal advertising and workers' compensation insurance violations; 89 licensed individuals were referred to District Attorneys for criminal prosecution of workers' compensation violations; 1,511 licensed and unlicensed individuals received administrative citations for licensure, advertising, aiding and abetting and workers' compensation violations; and 469 Stop Orders were served upon construction employers, prohibiting use of employee labor until workers' compensation insurance was obtained.

Fall California Blitz

Mid-October saw SWIFT investigators partner with state and local law enforcement agencies to hold the fall blitz. At the blitz, 75 people were caught in six undercover sting operations that were conducted in Fresno, San Bernardino, Placer, El Dorado, Riverside and Monterey counties.

At these Blitzes, SWIFT investigators posed as homeowners seeking bids for home improvements such as painting, electrical, plumbing, landscaping, flooring, drywall, fencing, concrete, and tree removal work. Of the 75 arrested, 72 may face misdemeanor charges for contracting without a license; 56 may be charged with illegal advertising; 10 may be charged with requesting an excessive down payment; and 13 were issued Stop Orders for not having workers' compensation insurance coverage for employees.

LETF and JESF

Joint Enforcement Strike Force

The JESF is a coalition of government enforcement agencies in California, which works together to share information and resources to enforce license, tax and workers' compensation insurance requirements. The purpose is to ensure a level playing field for California businesses. The CSLB, the Employment Development Department, the Department of Insurance, the Franchise Tax Board, the Board of Equalization and the Department of Justice are members.

Labor Enforcement Task Force

The LETF is a coalition of state and federal agencies to combat the underground economy. It targets noncompliance employers for a more efficient use of the state's resources. Core partners with the CSLB are the Division of Labor Standards Enforcement, the Division of Occupational Safety and Health, and the Employment Development Department.

Training Update

The following training has been conducted during the 2012-13 calendar years:

1. Module 1: Basic investigative Techniques (January - June 2012)
2. Module 2: Interview Techniques (January - June 2012)
3. Bankruptcy Case Law & Impact on Enforcement (February 2012)
4. Security Assessments for Enforcement Staff (February 2012)
5. Northern California Fraud Investigators Association (March 2012)
6. Improving Enforcement Skills (April 2012)
7. Advanced Negotiation (April 2012)
8. Supervisor Training (June 2012)
9. Basic National Certified Investigator/Inspector Training (NCIT) (June 2012)
10. Module 3: Effective Report Writing (Third Quarter 2012)
11. Elder Abuse Training (September 2012)
12. Improving Employee Performance & Accountability (September/October 2012)
13. DCA's Enforcement Academy (October/November 2012)
14. Enforcement Supervisor I and II Team-Building Workshop (October 2012)
15. Professional Assistants Academy (December 2012)
16. CSLB's Penal Code 832 Equivalent Course (January/February 2013)
17. Criminal Investigation Meeting (March 2013)
18. SOLID Writing Workshop (May 2013)
19. DCA's Division of Investigation Peace Officer Training (June 2013)
20. Elder Abuse Training with San Diego Deputy District Attorney (August 2013)

PARTNERSHIP WITH RIVERSIDE COUNTY

Riverside DA Provides CSLB Criminal Investigation Training

May 17, 2011, had 30 CSLB Enforcement staff from five of the Southern Investigative Centers and the Norwalk SWIFT unit attend training that was conducted by the Deputy District Attorney at the Riverside County District Attorney's office. The purpose for this training was to help field investigators "think outside the box" when filing complaints with the prosecutor's office. The reasoning is that oftentimes only a Business and Professions Code section 7028 misdemeanor case is filed when in reality, there are actually violations that warrant Penal Code section violations which are felonies and should be included in the report. After this training, staff are more prepared to recognize felony Penal Code violations when they see them.

SPECIAL AGENDA ITEM

DON CHANG

Don Chang, legal counsel for the Department of Consumer Affairs, who worked hand in hand with the CSLB for many years has been promoted so he will be leaving his Board responsibilities. He will be replaced by Kurt Heppler. As part of his recognition, the Board paid tribute to his love of movies by playing a small movie, which showed clips of various films where Don Chang and Steve Sands faces were imposed over those of the actors. Don will be missed.

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 PAO is fully staffed with six positions. The Chief of Public Affairs, Information Officer II, two Information Officer I's, Graphic Designer III, and an Associate Governmental Program Analyst.

Website Highlights

Intranet Redesign Project

The new employee-only internal intranet site was launched in November. It features the latest employee news and easier-to-find forms, policies, and other information needed by staff around the state.

Website Redesign Project

The PAO is working with Information Technology staff to design and develop an entirely new CSLB website. The new site will make content management more efficient as well as be able to be viewed on smart phones and tablets. The hope is that the new website will launch by spring of 2014.

Application Instructional Video

The PAO is still working with the Licensing division to track changes to the application rejection rate after the release of a tutorial video which explains filling out the application correctly. From its launch in August of 2012 through August 2013, the entire video was viewed over 21,000 times. Various individual sections were viewed a total of 35,348 times bringing the total video views to about 56,500.

Social Media

The CSLB's Twitter and Facebook pages continually gain followers. As of November 20, 2013, Facebook has 1,461 likes and Twitter has over 1,351 followers.

The CSLB's YouTube page contains 37 videos of Board meetings, sting operations, and other education material. There have been more than 196,000 views.

Email Alert Feature

The CSLB Email Alert Feature allows people to sign up and receive one or all of the following email alerts:

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

Towards the end of September 2013, there were almost 22,000 subscriptions.

Media Relations Highlights

Media Calls

There were more than 24 media inquiries that the PAO responded to from August of 2013 and November of 2013.

Media Contact Service

The PAO has a one-year subscription to an online media contact service which will allow staff to quickly build updated lists of media contacts throughout the state and nation. This will guarantee that the media outreach gets the greatest possible coverage.

Media Event

October of 2013 saw a press event in Sacramento to promote the results of the California Blitz.

News Releases

Between August 2013 and November 2013, the PAO sent out nine news releases.

Media Training

Enforcement staff around the state is the target of PAO's plans for media training. The SWIFT staff has three training sessions conducted in September and October.

Industry/Licensee Outreach Highlights

California Licensed Contractor Newsletter

The last newsletter was released October 3, 2013. The CSLB produces its newsletter quarterly, but only one a year is printed and mailed because of costs. The summer edition was mailed in August. The other 3 editions will be online only.

Industry Bulletins

Although no Industry Bulletins were distributed since the last Board meeting, they are still important and of interesting topics that reach almost 5,800 people and various groups.

NASCLA Articles

CSLB was prominently featured in an October 2013 newsletter produced by the National Association of State Contractors Licensing Associations (NASCLA).

Video Production Highlights

New Video Production Equipment

The PAO received new video equipment, which will help expand its abilities to produce professional quality videos as well as live and recorded web events, like the CSLB meetings.

Electronic Monitoring Equipment

The PAO is working with the Enforcement division staff to research equipment that may assist the SWIFT members during undercover operations. The equipment will help staff communicate during operations as well as helping them be more efficient in the gathering and maintenance of audio and video surveillance evidence.

Publication Highlights

The Fall 2013 California Licensed Contractor newsletter (online only), new licensee wall certificates, new 10 Tips cards have been completed. Currently in production is the Consumer Guide (booklet) and in development are the Contractor/Applicant Guide (booklet), and 5 separate contractor outreach materials.

Community Outreach Highlights

Senior Scam Stopper Seminars

Senior Scam Stopper seminars are an ongoing effort between the PAO staff, legislators, state and local agencies and community-based organizations. As of November 14, 2013, 71 Senior Scam Stopper seminars were conducted in 2013 and there is another 5 scheduled before the end of the year. This will bring the total number of Senior Scam Stopper seminars to 299 since they began in 1999.

Consumer Scam Stopper Program

The Consumer Scam Stopper Program began in 2012 because of the Senior Scam Stopper program. The mission is to help consumers make informed choices related to construction and home improvement. Until the staff is trained, most seminars will be conducted in the Sacramento area.

LEGISLATIVE COMMITTEE REPORT

Review and Consideration of Recommended Legislative Proposals for the Upcoming Legislative Sessions

Amendment to Business and Professions Code section 7011.4 - Notice to Appear Authority

This proposed bill will allow the CSLB to implement legislation that provided all enforcement representatives the authority to issue a written Notice to Appear without having to modify its organizational structure. The Board voted on this proposed bill and passed it, we should see it next year in the line-up of legislative bills.

Amendment to Business and Professions Code section 7027.2 - Required content of advertisements issued by contractors not licensed by the CSLB

This proposed bill will further the CSLB's efforts to combat the underground economy by requiring further disclosure in advertisements placed by unlicensed contractors. The Board voted on this proposed bill and passed it, we should see it next year in the line-up of legislative bills.

Amendment to Business and Professions Code section 7110.5 - Initiation of action against a contractor after Labor Commissioner's finding of violation

This proposed bill would amend current law so that the CSLB would be able to meet statutory mandates that are currently unachievable regarding disciplinary actions for Labor Code violationsbeing initiated within 30 days. The Board voted on this proposed bill and passed it, we should see it next year in the line-up of legislative bills.

Addition of new Business and Professions Code section 7017 and Government Code section 16404.6 - Creation of an Evidence Fund

This proposed bill would establish a separate revolving fund for the CSLB to use for the procurement of evidence in an administrative or criminal investigation. The Board voted on this proposed bill and passed it, we should see it next year in the line-up of legislative bills.

2013 Legislation - Enacted

AB 44

This new law adds to the requirements of information needed by the Subletting and Subcontracting Fair Practices Act by making it mandatory that the contractor include the contractor license number of each subcontractor, and to also be provided on any bid or offer effective July 1, 2014.

AB 263

This new law prohibits an employer from retaliating or taking adverse action against any employee or applicant for immigrant-related practices. It further provides that an employee who was retaliated against or otherwise was subjected to an adverse action is entitled to reinstatement and reimbursement for lost wages. It would also subject a person who violates these provisions to a civil penalty of up to $10,000 per violation.

AB 811

This new law requires statewide information about facility events to be compiled by operators and excavators and made available in an annual report. This report is to be posted on the Internet website of the regional notification centers.

SB 261

This new law provides that any licensed or unlicensed contractor who commits any specified activities with respect to a contractor license is subject to the administrative remedies authorized by the Contractors' License Law. This was a CSLB sponsored Bill.

SB 262

This new law relates to the Contractors' License Law. It requires a qualifying individual to meet specified requirements with respect to his or her employer's or principal's construction operations. It further provides that this person shall not act in the capacity of the qualifying person for an additional individual or firm except under certain circumstances, the qualifying person must submit detailed information on the qualifiers duties and responsibilities for supervision and control of the construction operations, and provides that violations constitute a cause for disciplinary action, a fine and imprisonment. This was a CSLB sponsored Bill.

SB 822

This new law relates to delinquency fees regarding the renewal application under the Contractors' License Law and creates a retired registration category and fee for geologists or geophysicists. It also allows a fictitious business name statement to be signed by either party to a marriage as well as many other things outside of the construction industry. This was a CSLB sponsored Bill.

LICENSING COMMITTEE REPORT

LICENSING PROGRAM UPDATE

License Application Workload

Although the number of applications has continually declined because of the economic recession and housing downturn, there is now a slight increase.

Limited Liability Companies

The CSLB began to issue licenses to LLCs in 2012. Since there is no case law for LLC's yet, an additional $100,000 bond is required for the benefit of workers relative to payment of wages and fringe benefits. This is to ensure workers are protected despite the absence of case law dealing with LLC's. Note that this bond is in addition to the $12,500 contractor bond. LLC's are also required to have $1,000,000 in liability insurance when five or fewer persons are listed as personnel, with an additional $100,000 required for each additional personnel, not to exceed $5,000,000.

Since the CSLB has implemented the program through to October 31, 2013, they have received 1,375 applications for LLC licenses. Of those, only 387 have been issued. The most common reason for the rejections is being unable to confirm the LLC name with what the Secretary of State is able to provide since the Secretary of State has such a delayed processing time.

Workers' Compensation Recertification

Due to AB 397 (Business and Professions Code section 7125.5), which became effective January 1, 2012, the Licensing division implemented a new program where at the time of renewal of an active contractor licensee, there is a need to recertify the licensee's exemption or provide a current valid Certificate of Workers Compensation Insurance of Certificate of Self-Insurance. Since the law went into effect, the CSLB has started implementing these requirements for licensees expiring March 31, 2013.

Fingerprinting/Criminal Background Unit

Since the fingerprinting and criminal background checks were implemented, the Criminal Background Unit has denied 1,172 applications and issued 1,395 probationary licenses through October 31, 2013. Of those denied, 583 appealed their denials. There has also been a decline in fingerprint submissions since there has been a decline in applications.

Licensing Information Center (LIC)

LIC Workload

The LIC or call center has exceeded Board goals in the past few months. June saw less than a minute wait time and 99% answer rate. The July through September quarter had call wait times averaging 1:12 with a 98% answer rate. This is attributed to staffing levels and training.

Staffing Update

The call center is currently fully staffed and has retained two part-time retired annuitants to work during peak call hours.

Increased Training

New employees have the benefit of training from seasoned staff and supervisors as well as cross-training in other units.

Judgment Unit

The Judgment Unit processes all outstanding liabilities, judgments and payment of claims reported to the CSLB by licensees, consumers, attorneys, credit recovery firms, bonding companies, CSLB's Enforcement Division and other governmental agencies as well as processing all documentation and correspondence related to resolving these issues.

TESTING DIVISION UPDATE

Examination Administration Unit

The Examination Administrative Unit administers the 45 tests of the CSLB at eight different locations. There have been between 2,273 and 3,024 examinations scheduled each month from November of 2012 through October of 2013.

Testing Center Status

There are eight testing centers - Sacramento, Oakland, Oxnard, Norwalk, San Jose, San Bernardino, Fresno and San Diego.

The Oakland Testing Center will eventually be moved to Berkeley, it is scheduled for January 2014.

From November of 2012 to October of 2013, Norwalk had the most examinations at 8,297 and Fresno the least with 7,653.

Examination Administration Staffing

The Examination Administration Staffing headquarters filled their Office Technician vacancy and the Fresno office is in the process of filling their Office Technician vacancy as well.

Proctors are currently being trained as those on the Department of Consumer Affairs Proctor List have not worked in the CSLB testing centers before.

Examination Administration Projects

Each month one testing center is audited by the analyst/editor and the Examination Administration Unit Procedure Manual is being written.

Examination Development Unit

The Examination Development Unit ensures 45 examinations are maintained and updated in accordance with testing standards, guidelines and regulations.

Occupational Analysis and Examination Development Workload

There are two phases in the development process: occupational analysis and new examination development. These must be done every five to seven years for each examination.

Occupational Analyses in Progress:

• C-10 Electrical
• C-13 Fencing

New Examinations in Progress

• B General Building
• C-5 Framing and Rough Carpentry
• C-28 Lock and Security Equipment
• C-35 Lathing and Plastering
• C-38 Refrigeration
• C- 45 Sign
• C-50 Reinforcing Steel
• C-60 Welding

Examination Development Unit Staffing

The EDU is finally fully staffed. The Examination Development Unit supervisor is acting as Testing Division Chief until that position can be filled.

Ongoing Consumer Satisfaction Survey

The Testing division conducts this survey of consumers whose complaint cases have been closed. This is designed to assess the overall satisfaction with the Enforcement division's handling of complaints in various content categories.

REVIEW AND APPROVAL OF CONSTRUCTION MANAGEMENT EDUCATION ACCOUNT COMMITTEE PROPOSAL REGARDING GRANTS TO QUALIFYING PROGRAMS

The Registrar intends to award grants as follows:

Institution # Applicable Graduates Award $ Per Graduate Grant Award

CSU Chico 120 $493.42 $59,210.40

CSU Fresno 57 $493.42 $28,124.94

CSU Long Beach 30 $493.42 $14,802.60

Cal Poly SLO 65 $493.42 $32,072.30

CSU Sacramento 32 $493.42 $15,789.44

EXECUTIVE COMMITTEE REPORT

ADMINISTRATION UPDATE

Business Services

Facilities

• San Bernardino
  • Plans are underway to remodel the office, including the addition of a public counter with bulletproof glass.
• Oakland/Berkeley
• 2014 will see the Oakland Testing Center and Enforcement office relocated to Berkeley.
• Sacramento Headquarters
• The front counter area and security camera system are being upgraded.
• Norwalk
• A five-year lease renewal and replacement of the office's security camera system are in progress. The office will also be re-painted and re-carpeted.
• Modesto
• The office lease has been renewed through June 30, 2021.
• San Diego
• Some of the glass in the office will be replaced by solid walls to provide better security and sound-proofing.
• West Covina
• The office lease is being renewed for five years, and will include more space for additional staff.

Contracts and Procurement

The following contracts were signed:

• CHP for standby security;
• Publication of annual California Contractors License Law & Reference Book;
• New mail machines for all offices, including two-year maintenance contracts;
• Fax machines, including three-year maintenance agreements;
• Shredding services for headquarters and field offices; and
• Multiple maintenance contracts to support CSLB office equipment.

Staff ergonomic evaluations have been completed at various CSLB offices. Necessary equipment, identified by the evaluator, has been ordered for 6 locations.

Fleet

Fiscal Year 2012-13 saw 25 vehicles surveyed and replaced with new, fuel-efficient, hybrid models approved by the Department of General Services.

Records Management

CSLB continues to purge files that are beyond their useful life per the Records Retention Schedule, and is in compliance with the Records Retention Schedule.

CSLB continues to scan all new license files into the IWAS program.

The California Records Information Management (CalRIM) report was completed and submitted to DCA in October 2013.

Personnel

Examinations

The Supervising Personnel Selection Consultant (SPSC) examination has been completed and the new certification list is available. CSLB is in the process of filing a vacant SPSC position in the Testing division.

Position Changes

From August through November of 2013, there were 11 transfers within the CSLB; 5 transfers to CSLB from other state departments; 11 promotions; and 7 new hires.

Training and Development

CSLB encourages the use of Training and Development assignments to:

1. Provide employees with opportunities to broaden their work experience and skills;

2. Prepare employees for career advancement and future promotion; and/or

3. Facilitate entry into new occupational fields.

Between August 15, 2013 and November 22, 2013, the CSLB Personnel Office facilitated one Training and Development assignment in the Enforcement Representative classification.

Vacant Positions

As of November 22, 2013, there were 39 vacant positions.

INFORMATION TECHNOLOGY UPDATE

BreEZe

The Department of Consumer Affairs' (DCA) new Enterprise Licensing and Enforcement System (BreEZe) went into production for Release One Boards on October 8, 2013.

The programs in Release One are:

• Board of Barbering and Cosmetology
• Board of Behavioral Sciences
• Board of Podiatric Medicine
• Board of Psychology
• Board of Registered Nursing
• Medical Board of California
• Naturopathic Medicine Committee
• Osteopathic Medical Board of California
• Physician Assistant Board
• Respiratory Care Board of California

After all three releases are completed, BreEZe will be the largest enterprise licensing and enforcement solution in the world.

RPA/Position Tracking Application

Personnel and IT units are working together on an application for personnel to track and monitor RPAs/positions within the CSLB. This will allow personnel to input and track RPAs/positions in a timelier, more efficient manner as well as provide more accurate business records.

CSLB Enterprise Backup and Storage Systems

IT implemented a project that provides enhanced storage and protection of critical data for all CSLB production computer systems, as well as the EMC VNX Storage Array and Avamar Enterprise Backup Solution. This system will prevent the loss of critical information. Sacramento headquarters staff will be able to work without interruption, giving CSLB a disaster recovery capacity it did not previously have.

IT has replaced its existing network storage array with a newer, more robust system. All virtual servers and user data files are stored on this new array, which includes a duplicate system at CSLB's backup site in Fresno. All CSLB production data and file systems, including user data files, are replicated throughout the day from the HQ site to the Fresno site.

IT also installed two new computer file back-up systems; one is in Sacramento, the other in Fresno. All backups are replicated from HQ to Fresno and from Fresno to HQ each evening. With this system there is no longer a need for weekly tape backups that were taken offsite to DCA.

Intranet Redesign

The Public Affairs Office and IT staff redesigned the employee intranet, creating a more efficient and user-friendly experience.

Disclosure of Partnering Agency's Disciplinary Action Project

CSLB will soon be flagging the licensee on the CSLB website with an advisory statement and an electronic link to a partnering agency's website if the licensee has a history of problems with the other public agencies.

IT has completed analysis and testing to implement this project. To date, the Department of Industrial Relations Division of Labor Standards Enforcement and the Department of Transportation have been linked on the CSLB's website and IT is working toward disclosing additional partner agencies' disciplinary actions as information becomes available and agreed upon by CSLB Enforcement and the partnering agency.

IT Service Desk

CSLB's IT Service Desk technical staff resolve Level-1 and Level-2 IT issues for the board. CSLB employees who need assistance with their desktops, laptops, printers, faxes, phones, etc., generate a ticket via phone or the CSLB intranet site. Incoming tickets are reviewed and assigned within 15 minutes. The average Level-1 ("user down") priority tickets are resolved or fixed in under 30 minutes and Level-2 more complex tickets are resolved in approximately 60 minutes.

During the August through October 2013 period, a total of 1,035 tickets (693 online and

342 via phone/walk-in) were processed by the IT Service Desk.

Interactive Voice Response (IVR) System

CSLB's IVR is an interactive, self-directed telephone system that is a valuable source of information for consumers, contractors, and others. It provides callers with the ability to request forms or pamphlets that are immediately faxed to them. Callers can look up a license, and applicants can check the status of their exam application. The IVR provides consumers with information on how to file complaints as well as how to become a licensed contractor. In addition to providing information, the IVR gives callers an option to speak to call center agents in Sacramento or Norwalk. During the August through October 2013 period, the CSLB IVR handled a total of 110,758 calls, which is an average of 36,919 calls a month; the system is available 24 hours a day, seven days a week.

BUDGET UPDATE

Fiscal Year 2013-14 CSLB Budget and Expenditures

Through October 31, 2013, CSLB spent or encumbered $22 million, roughly 36 percent of its FY 2013-14 budget.

Revenue

The CSLB received over $21,000,000 through October, 2013, which is 2% less than the same time period last year.

CSLB Fund Condition

The Contractors' License Fund has over $28 million in reserve, for about 6 months. However, the projections for the Fiscal Year 2015-16 show roughly a 2 month reserve.

Construction Management Education Account

Through October 31, 2013, CMEA spent approximately $2,000 in pro rata charges and has not issued any grant awards yet.

CMEA Fund Condition

For the Fiscal Year 2011-12 there was 23 months in reserve. The fiscal year 2012-2013 saw 15 months in reserve. It is expected to decline with an estimated 0.4 months in reserve for the 2014-15 Fiscal Year.

REVIEW OF STRATEGIC PLANNING PROCESS

LICENSING & TESTING OBJECTIVES / TARGET FY 2013-14 / STATUS

1. Develop language for establishment of an asbestos abatement specialty classification.

• June 2014
• Language is completed and approved by the Board; a regulation hearing is tentatively scheduled for January 2014.

2. Increase hi-tech security monitoring in testing centers.

• January 2015
• CSLB will place cameras at all testing centers and has a long-term goal to install bio-metric security features at its testing sites.

3. Develop an online smart application package to reduce application decline rates.

• January 2016
• This objective is tied to the DCA BreEZe project.

4. Evaluate the productivity of CSLB's Licensing Information Center and determine if changes are needed.

• June 2014
• Study is completed; proposals are to be implemented June 2014.

5. Fully automate bonds and workers' compensation insurance submission processes.

• January 2016
• This objective is tied to the DCA BreEZe project.

6. Expand license application video to other languages.

• January 2015
• Licensing and PAO will work together to produce video in other languages.

7. Inform applicants about the top reasons applications are rejected.

• Completed
• "Completing a Contractor License Application" video is available on CSLB's website.

8. Establish a task force to analyze the application process and reduce rejection rates.

• January 2015
• Study to be performed.

9. Implement an online licensure tool for credit card payment.

• January 2016
• This objective is tied to the DCA BreEZe project.

ENFORCEMENT OBJECTIVES / TARGET FY 2013-14 / STATUS

1. Update the Industry Expert training program.

• 3rd Quarter
• Staff is currently developing an IE Training Module that will be conducted by Investigative Center Supervisors and staff. Once the module is completed, staff will determine which classifications are needed for each region and schedule training as necessary.

2. Provide for the disclosure of a partnering agency's administrative action on CSLB's website.

• Completed
• Disclosure is now available via CSLB's website for DLSE and Caltrans violations. Disclosure includes Civil Wage Penalty Assessments made by the Labor Commissioner and Caltrans-issued Stop Notices. Consideration to disclosure of additional state and local government agencies will be ongoing.

3. Partner with the California Energy Commission (CEC) to create an energy efficiency campaign.

• FY 2014-15 2nd Quarter
• Staff continues to work closely with CEC. A campaign has been developed and is in the process of being implemented.

4. Address enforcement vacancies in hard-to-fill geographic areas.

• Ongoing
• An investigator was hired in the San Luis Obispo area. A second vacancy was advertised in the Walnut Creek area but did not result in viable candidates. Staff continues to pursue hiring in other remote locations.

5. Develop criteria and controls to monitor and prioritize proactive enforcement.

• Completed
• Meetings are held regularly with Labor and Enforcement Strike Force and Joint Enforcement Strike Force partners, and targets have been determined.

6. Automate an official educational letter to consumers who repeatedly hire unlicensed operators.

• 3rd Quarter
• A letter was submitted to the Enforcement Committee for approval on October 24, 2012. The committee reviewed the letter and offered suggested edits. The revised letter was approved by DCA Legal Affairs and approved by the Board on December 11, 2012. Staff is currently working with IT to make the letter automated.

7. Prioritize enforcement complaints based on potential harm to the public.

• Completed
• The Board approved the Enforcement Prioritization Chart. Staff committed to reviewing priorities on an ongoing basis to meet changing consumer protection needs.

8. Conduct a feasibility study of a pilot program similar to law enforcement's citizens patrol.

• 3rd Quarter
• The Butte County Industry Expert Volunteer Pilot Program was approved by the Board and will begin implementation on January 1, 2014, pending the successful hire of a Retired Annuitant to lead the program.

PUBLIC AFFAIRS OBJECTIVES / TARGET FY 2013-14 / STATUS

1. Migrate CSLB's website to the new state of California website standards.

• 3rd Quarter
• PAO and IT staff meet monthly to discuss content and design.

2. Establish a multimedia unit with focus on video production.

• 4th Quarter
• Established PAO studio 1st quarter; equipment arrived 2nd quarter; procedures/protocols and studio set-up is expected 3rd quarter.

3. Create an archive of consumer stories for use in various outreach efforts and educate staff on the benefits of sharing information.

• 3rd Quarter
• Completed media training for statewide staff 4th quarter 2013; staff is to be contacted regularly to encourage case submissions.

4. Complete the flagship contractor and consumer publications.

• 3rd - 4th Quarter
• Consumer publication is in design; contractor publication is in content development.

5. Develop a contractor presentation kit.

• 4th Quarter
• A committee will provide input for content and design prior to production and distribution.

6. Develop a CSLB style guide and brand standards manual.

• 4th Quarter
• Rough draft is in development.

LEGISLATION OBJECTIVES / TARGET FY 2013-14 / STATUS

1. Review and recommend changes to simplify Contractors State License Law and update by 2014.

• 2nd Quarter
• Initial draft is in process.

2. Prepare and submit Sunset Review Report.

• September 2014
• Received draft template to begin report.

IT & ADMINISTRATION OBJECTIVES / TARGET / STATUS

1. Prepare CSLB for implementation of BreEZe. (Information Technology)

• TBD
• Release 1 Boards went live on October 8, 2013.
• CSLB is one of 19 boards/bureaus in Release 3, and has not been given an implementation timeline.
• CSLB IT staff continues to help DCA by assisting other boards and bureaus with Data Validation and Acceptance Testing. CSLB also has provided its testing center for training DCA Release 1 staff on the BreEZe system.

2. Create a Subsequent Arrest Unit through the BCP Process.

• July 2014
• BCP submitted.

REVIEW OF TENTATIVE SCHEDULE

February 19, 2014 - San Francisco Bay Area

April 23-24, 2014 - San Diego

June 6, 2014 - Newport Beach

Abdulaziz, Grossbart & Rudman

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Abdulaziz, Grossbart & Rudman

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