December 8, 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 criteria for the court to consider when determining if a contractor substantially complied with the law to eliminate the requirement that a contractor did not know or reasonably should not have known that he or she was not duly licensed 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.
2. Requires (rather than permi
   ts) a court to determine that a contractor is in compliance with the licensing requirements, if all of the conditions are met.

1. Contains legislative findings and declarations, including that the consumer obligation to repay voluntary contractual assessments created by PACE is sometimes misunderstood and may affect consumers' ability to refinance their loan or sell their property.
2. Prohibits a public agency from permitting a property owner's participation in any PACE program if any of the following apply:
   • Participation would result in the total amount of the annual property taxes and assessments to exceed 5 percent of the property's fair market value.
   • The property does not comply with specified conditions of existing law related to PACE financing (such as being current on property taxes, and that financing is for less than 15 percent of the value of property, etc.).
3. Requires the property owner be provided with two copies of the right to cancel document.

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 shall be issued to a person with either an active license or an inactive license that was not placed on inactive status for disciplinary reasons and that the 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. Requires boards to establish a fee for an inactive license, to cover the reasonable costs associated with issuance
5. 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.
6. Authorizes a board to investigate the actions of any licensee, including a retired licensee.

1. Contains findings and declarations of the Legislature, including that the pathway out of poverty for millions of California residents is the attainment of industry valued "middle skill credentials," which is defined as a job requiring a certificate, associate's degree, or third-party credential that is less advanced than a bachelor's degree, but more advanced that a high school diploma.
2. Requires DCA, upon request by the Chancellor's Office of the California Community Colleges (CCC), to provide, as applicable, the following information with respect to every licensee:
   • Name;
   • Federal employer identification number if the licensee is a partnership, or the licensee's individual taxpayer identification number of Social Security number for all other licensees;
   • Date of birth;
   • Type of license;
   • Effective date or license or a renewal; and
   • License expiration date.
3. Specifies that the information is provided only to allow the CCC to measure employment outcomes of students who participate in career technical education programs offered by the CCC and recommend how these programs may be improved. The information cannot be used for any other purpose.
4. Provides that DCA may only make the required information available to the extent that would comply with state and federal privacy laws.
5. Allows DCA, by agreement, to condition or limit the information provided in order to protect privacy.
6. Further provides that the information cannot be used in a way that permits third parties to personally identify individual licensees.
7. Authorizes DCA or CCC to share the licensee data with a third party who contracts to perform the analysis, if the third party is required by contract to follow security requirements.

1. Requires a licensee of CSLB to report to the Registrar in writing within 90 days 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.
2. Requires the Division of Occupational Safety and Health (DOSH) to transmit copies of any citations or other actions involving or potentially involving a serious illness or injury, along with any other information it may possess regarding a contractor.
3. By January 1, 2018, authorizes CSLB to enter into an inter agency agreement with any other state or local agency it deems to be in possession of any information relevant to its priority to protect the public.
4. By January 1, 2018, requires CSLB to report to the Legislature the results of a study to determine if its ability to protect the public would be enhanced by regulations requiring licensees to report judgments, arbitration awards against them, or settlement payments of claims for construction defects they have made in excess of a certain amount to be determined by CSLB.
5. Specifies that CSLB shall first consult with licensees, insurers, and consumers during report development.
6. Further provides that the study shall include:
   • Criteria used by insurers or others to differentiate between settlements that are for nuisance value and those that are not;
   • Whether settlement information or other information can help identify licensees who may by subject to an enforcement action;
   • If there is a way to separate subcontractors from general contractors when identifying licensees who may be subject to enforcement action;
   • If reporting should be limited to settlements resulting from construction defects that resulted in death or injury; and
   • The practice of other boards within the Department of Consumer Affairs, and any other reasonable criteria.
7. Provides that any records CSLB obtains during the course of implementing the study requirements that are exempt from disclosure under the Public Records Act shall remain exempt from disclosure.
8. Requires the California Building Standards Commission (CBSC) to convene a working group to investigate existing building standards associated with the construction, inspection and maintenance of exterior elevated elements, and to report its findings and recommendations to the Legislature by January 1, 2018.

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. Defines several terms, including "working day" for the purposes of determining excavation start date and time as a weekday Monday through Friday, from 7:00 a.m. to 5:00 p.m., except for federal and state holidays, or as otherwise posted on the Internet website of the regional notification center.
2. Requires an excavator planning an excavation to first delineate the area to be excavated, before notifying the appropriate regional notification center.
3. Further requires an operator to indicate with an "A" inside a circle the presence of any abandoned subsurface installations, if known, within the delineated area.
4. Provides that if an operator knows that it has a subsurface installation embedded or partially embedded in the pavement that is not visible from the surface, the operator shall contact the excavator before pavement removal to communicate and determine a plan of action.
5. Authorizes an excavator to use power excavation tools to expose subsurface installations within the tolerance zone, after first using hand tools.
6. Requires an excavator to presume that all subsurface installations are active, and to use the same care around subsurface installations that may be inactive as would be used around active installations.
7. Requires an excavator to call 911 upon discovering or causing damage to either of the following:
   • A natural gas or hazardous liquid pipeline subsurface installation in which the same results in the escape of any flammable, toxic, or corrosive gas or liquid;
   • A high priority subsurface installation of any kind.
8. Provides that dig alert requirements can be enforced, following a recommendation by the Excavation Board, established by this bill, as follows:
   • CSLB, on contractors and telephone corporations when acting as a contractor. (Note: CSLB would fine contractors according to the provisions of Government Code Section 4216.6, which provides for penalties between no more than $10,000 for a negligent violation, to no more than $50,000 for willful violation. The revenue from any fines resulting from this authority would go to the Excavation Board, not CSLB).
   • The Public Utilities Commission (PUC), on gas and electrical corporations, and water corporations.
   • The Office of the State Fire Marshal, for operators of hazardous liquid pipeline facilities.
9. Provides that an excavator who damages a subsurface installation because of inaccurate marking shall not be liable for damages.
10. Beginning November 1, 2017, authorizes an excavator to request a continual excavation ticket for an area of continual excavation, in lieu of the regular ticket process. Further defines the process, and provides that a continual excavation ticket is valid for one year for issuance, and may be renewed.
11. Creates the California Underground Facilities Safe Excavation Advisory Board (Excavation Board), under the Office of the State Fire Marshal (OSFM) and assisted by OSFM's staff.
12. Provides that the Excavation Board may obtain funding for its operational expenses from:
    • Federal or state grant;
    • A fee charged to members of the regional notification centers, not to exceed the reasonable regulatory cost to enforce this bill; and
    • Any other source.
    • Specifies that the Excavation Board shall not charge a fee to a person for notifying the regional notification center to obtain or renew a ticket.
13. Requires the Excavation Board to annually convene a meeting for the following purposes:
    • To understand the existing needs for education and outreach, including to those groups with the highest awareness, including homeowners;
    • To facilitate discussion on how to coordinate existing education and outreach efforts with state and local agencies, California operators, regional notification centers, and trade associations that fund outreach and education programs that encourage safe excavation practices; and
    • To determine the areas in which additional education and outreach efforts may be targeted.
14. Requires the Excavation Board 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; and
    • What constitutes reasonable care in grading activities on road shoulders and dirt roads which may include standards for potholing.
15. Beginning January 1, 2018, requires the Excavation Board to investigate possible violations of the law, including complaints from affected parties and members of the public.
16. Provides that if the Excavation Board finds a probable violation after completing an investigation, it may send the results and any recommended penalty to the agency with jurisdiction over the action.
17. Specifies that sanctions shall be graduated and may include notification and information letters, direction to attend relevant education, and financial penalties.
18. Requires the Excavation Board to consider the following when assessing a penalty:
    • The type of violation and its gravity;
    • The degree of culpability;
    • The operator's or excavator's history of violations;
    • The operator's or excavator's history of work conducted without violations; and
    • The efforts taken by the violator to prevent violation and, once the consequences occurred, the efforts taken to mitigate the safety consequences of the violation.
19. 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 six months after the investigation begins, whichever occurs first.
20. 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 Board when the action is filed.
21. Requires the Board to annually report to the Legislature and Governor.

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.

1. Eliminates the provision of existing law that voids an application after an applicant has failed to reschedule an exam within 90 days of cancellation, or twice failed to appear for an exam.
2. Provides that a contractor must be licensed for two years, rather than the current requirement of five years, in order to be eligible for a blanket performance and payment bond.

1. Complete flagship consumer publication - Essential - Target September 2016 - Update of
   What You Should Know Before You Hire a Licensed Contractor booklet - Delayed pending hiring of new publications coordinator; new target: March 2017
2. Complete flagship contractor publication - Essential - Target November 2016 - Creation of new publication targeted toward journeymen, applicants, and licensees - Delayed pending hiring of new publications coordinator; new target: June 2017
3. Update Communications Plan for 2017-2019 - Essential - Target December 2016 - Formal guideline that provides overview of Public Affairs objectives, goals, audiences, tools, and timetables to reach those audiences, and plans to evaluate results - On-target. Pending full Board approval.
4. Develop solar outreach material - Important - Target March 2017 - In conjunction with Enforcement and Information Technology divisions, create portal on CSLB website to link consumers to most reliable solar-related information, supplemented by newly created CSLB material - On-Target. Currently developing links and other information.
5. Develop orientation videos for new staff / board members - Important - Target December 2017 - Produce series of videos to be used as part of efforts to introduce staff and Board members to CSLB - Not started yet.
6. Develop schedule for Opt-In, "Find a Contractor" and website feature - Essential - Target June 2018 - Web-based feature that enables consumers to get a list of available licensed contractors in specific license classifications for specific geographic locations - Not started yet. AB 2486 was enrolled on August 22, 2016.
7. Expand Consumer Scam Stopper Outreach program - Beneficial - Target June 2018 - Look for opportunities to expand CSLB's face-to-face outreach to groups other than seniors - Currently developing possible options.

• 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.

1. Revise application package and related outreach material - Essential - Target January 2017 - In conjunction with Public Affairs, update package of application materials to decrease confusion, increase compliance, and reduce the time to issue new licenses - Completed update of application materials; awaiting IT programming
2. Create exam development presentation for future Board meetings - Important - Target September 2016 - Help current and future Board members, as well as the public, better understand CSLB's computerized license testing process - Completed
3. Identify specific criteria for Examination Waiver and Application Review - Beneficial - Target September 2016 - In conjunction with Enforcement division, develop criteria to review waiver applications that better identifies potentially fraudulent submissions - Requires statutory change
4. Research and implement measures to reduce initial application processing times - Essential - Target December 2016 - In connection with Objective 1, examine current processes, procedures, staffing levels, and other issues to identify ways to speed up the time it takes to issue new licenses - Partially completed; awaiting IT programming
5. Conduct comparative study of pass/fail rates of contractor license exams in other states - Important - Target March 2017 - Education and inform Board members and the public about how California pass/fail rates compare with other states - Partially completed; awaiting IT programming
6. Develop online smart application content to reduce application return for correction rates - Essential - Target January 2017 - In conjunction with Information Technology division, develop and implement online application to ensure applicants provide accurate and all necessary information - Partially completed
7. Research handyman exemption - Beneficial - Target January 2018 - Determine if current handyperson exemption should be modified, or if a new license type should be developed to better protect consumers - Delayed pending 2017 update to 2016-18 Strategic Plan Objectives.

• Ensure that workers receive proper payment of wages and are provided a safe work environment;
• Ensure that California receives all employment taxes, fees, and penalties due from employers;
• Eliminate unfair business competition by leveling the playing field; and
• Make efficient use of state and federal resources in carrying out the mission of the LETF.

• SWIFT sting training;
• SWIFT vehicle surveillance training;
• Investigation Center Advanced Course II training;
• CSLB Enforcement Academy; and
• Safety and security training.

• Ongoing Scrutiny of the Service and Repair Industry
• Senior Homeowner Stands Her Ground on Squeaking Floors

• Enforcement Representative Helps Broker $21,745 Settlement for Consumer
• Update on Contracting Duo that Harms Two Elderly Victims
• Repeat Unlicensed and Unregistered Salesperson Sentenced to 90 Days in Jail
• Licensed Family Members Pledge to Bring Unlicensed Relative to Justice
• Unlicensed Duo Seeks "RMO" in Craigslist Advertisement
• Enforcement Representative Lands Criminal Case from Jailhouse Interview

• Licensee Pleads Guilty to Elder Abuse

• Effective Sweep Targeting Results in 61 Enforcement Actions
• 35 Legal Actions Issued Over Two-Day Undercover Operation
• SWIFT Targets Wanted Felons and Nets 42 Unlicensed Contractors
• Statewide SWIFT Sweeps Generate 39 Legal Actions

• Contractors operating under multiple name styles
• False advertising
• High-pressure sales tactics
• Home improvement contract violations
• Failure to comply with the three-day right to cancel requirements for service and repair contracts that exceed $750
• Issues with electronic signatures on contracts

1. Implement Memorandum of Understanding with Labor Commissioner's Office - Beneficial - Target July 2016, Create partnership to engage and inform Labor Commissioner's Office staff about provisions and process for directing referrals to CSLB - June 13 and 15, 2016, Enforcement staff met with Labor Commissioner's staff to review MOU and to provide training; partnering efforts are ongoing.
2. Update Civil Penalties Assessments - Essential - Target September 2016 - Review penalty guidelines to determine if they have kept up with inflation and consumer protection requirements - Increasing civil penalties was included in the AG cost reduction expenditure plan adopted by the Board on Jun 23, 2016
3. Develop Strategies to Reduce Solar Industry Fraud - Essential - Target December 2016 - Develop outreach, education, and enforcement tactics to address deceptive tactics in solar industry - A consumer fact sheet and enforcement strategies have been developed; solar enforcement strategies were discussed at the October 28, 2016, Enforcement Committee meeting
4. Formalize Strategy to identify licensee miscues of workers' compensation insurance requirement exemption - Essential - Target March 2017 - In conjunction with Public Affairs Office, develop education and enforcement program targeted at licensees who employ workers while having workers' compensation exemption on-file with the CSLB - An update regarding the planning and implementation of workers' compensation enforcement strategies was provided at the October 28, 2016, Enforcement Committee meeting.
5. Reduce Legal Action Expenditures while not compromising consumer protection - Essential - Target July 2017 - Develop partnerships with prosecutors and other government agencies to leverage resources, as well as a strike force to achieve greater legal action settlements - A legal action expenditure reduction plan was reviewed, discussed, and adopted by the Board June 23, 2016.
6. Expand proactive enforcement targets - Beneficial - Target July 2017 - Develop strategies and partnerships to include public work projects and larger contractors in proactive enforcement efforts - SWIFT staff have increased targeting of unlicensed contractors on larger projects; Peace Officers now assist with the identification of high profile targets.

• One-year renewal for Statewide Arbitration Services;
• Printing services for California Contractors License & Law Reference Book;
• Shredding services for the Bakersfield office;
• Debt collection services for the citation program; and
• March 2017 Board meeting.

• Polo shirts for Enforcement division staff;
• Field vests for Enforcement division staff;
• Camera equipment for the Public Affairs Office;
• Two fax machines for the Norwalk office;
• Additional access cards for the Berkeley office; and
• Forklift for the warehouse.

• New batteries for large UPS machine;
• Additional access key cards for the Norwalk and Sacramento offices;
• Renewal of California Highway Patrol contract ot provide security services for various meetings and testing offices;
• Renewal of shredding contract for various field offices;
• Shredding services for Sacramento headquarters; and
• Amended 10 copier contracts to reflect increased usage.

• Four Ford Fusion Hybrids (1-San Diego IC, 2-Valencia IC, 1-West Covina IC)
• Five Chevrolet Impalas (1-Fresno SWIFT, 2-Norwalk SWIFT, 2-Sacramento SWIFT)
• One Chevrolet Silverado Truck (1-Sacramento IC North)
• One Nissan Leaf (1-Sacramento SWIFT)

1. Partner with DCA to Implement Live Captioning Contract - Essential - Target December 2016 - Increase accessibility to public meetings and compliance with the Americans with Disabilities Act - Completed - using DCA-wide contract for live captioning service.
2. Develop Succession Planning, Mentoring, and Upward Mobility Program for Staff - Essential - Target June 2017 - Assess job requirements and skills of existing employees and seek to fill the gaps between needs and skills with targeted training and development activities - On track. Currently redesigning and preparing for a re-launch of an expanded version of the previously successful CSLB Career Counseling Program.
3. Assess / Enhance Security and Safety Procedures for All CSLB Facilities - Important - Target June 2017 - Examine the security and safety of all CSLB facilities to identify and enhance areas that require improvements - On track. Currently focusing on locations with upcoming lease renewals and determining physical security needs so that modifications can be included in the lease renewal agreements
4. Evaluate Enforcement Division Staffing Levels - Beneficial - Target September 2017 - Determine if additional personnel are needed to meet CSLB Enforcement division goals - On track. Personnel Office Manager meeting with Enforcement division management to identify staffing issues and recruitment efforts on a bi-weekly basis.
5. Enhance onboarding and orientation program for new staff, managers and Board members - Important - Target December 2017 - Increase communication and foster cohesive mission-orientated working culture - On track. Currently researching best practices of other organizations and tailoring them to CSLB needs
6. Research and implement a special investigator classification services - Essential - Target June 2018 - Examine feasibility of establishing new classification to improve recruitment and retention of Enforcement staff - On track. Working closely with DCA Office of Human Resources to research the feasibility and complexity of this issue.
7. Pursue salary differentials in regions with higher living costs - Essential - Target June 2018 - Define and pursue opportunities to pay competitive wages in high cost of living sections of the state to improve recruitment and reduce employee vacancies in these areas - On track. Initial contacts made with DCA Office of Human Resources to identify the feasibility and mechanism to address this issue.
8. Determine requirements and procure equipment for full service broadcast studio - Important - Target June 2018 - In conjunction with Public Affairs Office, identify and purchase necessary equipment needed for video/audio production (Timing is dependent on CSLB Headquarters building lease negotiations) - On track. In the requirements gathering and design phase of adding this to current lease negotiations for CSLB Headquarters.
9. Review Consumer Services Representative Job Classification - Beneficial - Target June 2018 - Expand the qualifying degrees and required courses to increase the applicant pool for recruitment (May have to be coordinated with CalHR modernization project) - On track. Plans to enhance outreach to potential applications via Internet, PAO blasts, social media outreach, etc.; in addition, CSLB recently offered CSR exam, which created an ample hiring pool; recruitment is in process.

1. Implement internal group to prioritize and execute IT projects - Essential - Target August 2016 - Develop executive team to review and prioritize all IT project request, ensuring that resources are directed to meet the business needs and priorities of CSLB division chiefs - First meeting held August 24, 2016; IT division will continue to review project list and prioritize as operation needs change; next meeting is scheduled for November 29, 2016, and will continue as needed to ensure that CSLB IT resources are focused on the business initiatives and objectives of CSLB.
2. Conduct needs assessment to determine requirements for new licensing-enforcement computer system - Target September 2016 - Work with various CSLB units, including Cashiering, Testing, Licensing, and Enforcement to ensure current and future computer needs are met (may be affected by Department of Consumer Affairs' BreEZe Project) - CSLB has acquired services from "VIP" consulting group to assist with completing the "as-is", "to-be" and business requirements; project kick-off meeting was held on November 10, 2016, and CSLB staff are now fully engaged in this one-year contract work effort.
3. Upgrade Investigator Cell Phones and Acquire Tablets - Important - Target Cell Phones - December 2016 & Tablets - December 2017 - Provide investigators working in field with equipment that improves usability, increases their use of electronic documentation, and offers more effective access to information (may be affected by cell phone refresh date) - The Information Technology unit has begun the phase 2 deployment of new Samsung smartphones to SWIFT management personnel in Sacramento HQ, Oxnard, Norwalk, San Francisco, Berkeley and Santa Rosa; the deployments is scheduled to be complete mid-December 2016. Phase 3 of this deployment will include the remaining Enforcement staff sometime during the early part of 2017.
4. Implement Online Application for Home Improvement Salesperson - Important - Target February 2017 - Applicants would be able to submit applications online, association-disassociation, and could submit online registration renewals (may be affected by Teale) - In process; HIS online association and disassociation tasks currently being developed, followed by HIS application processing; target launch: Summer 2017.
5. Implement ePayment Expansion to San Bernardino Office - Essential - Target June 2017 - Will take place after completion of building Improvements - E-Payment will be expanded to San Bernardino field office immediately after building improvements are completed; project is pending due to ADA and Fire Marshall approvals; work has not yet started.
6. Research Options to Replace Current Imaging and Workflow Automated System (IWAS) - Important - Target October 2017 - Examine available solutions to replace system currently used to scan all incoming license related paperwork into CSLB's computer system (may integrate into Objective 5.2) - In progress; currently researching DOCSTAR solution; working with vendor to get product demo; also researching other state agencies that have both an Imaging and Workflow Automated System
7. Implement Online ePayment System - Essential - Target December 2017 - Expand ePayment system currently only available in CSLB offices, by allowing 16 payment types to be made by credit card online - Not yet started.
8. Implement SCORE 2.0 Programming - Essential - Target December 2018 - Allow exam development and administration to be more effective and efficient - Not yet started.