September 6, 2013

The Contractors' State License Board held a Board Meeting in Sacramento on September 6, 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; John O'Rourke; Bruce Rust; and Paul Schifino

Board Members Absent:

Frank Schetter

CHAIR'S REMARKS AND BOARD MEMBER COMMENTS

Recognition was given to the outgoing Chair, Paul Schifino.

James Miller and Mark Thurman were thanked for their service, as they are no longer board members.

Heidi Lincer-Hill, the board's Chief of Testing, is leaving the CSLB, with a promotion in the Department of Consumer Affairs.

New board members, Linda Clifford and Kevin Albanese were welcomed.

PUBLIC COMMENT SESSION

Daniel Cohen, from Television Education, Inc., spoke about contractors applications.

Eileen Scrodin of the Contractors License Courses in Santa Clara, talked about getting people licensed.

ELECTION OF BOARD OFFICERS

David Diaz was nominated and elected Vice-Chair of the board.

Ed Lang was nominated and voted Secretary of the board.

ENFORCEMENT COMMITTEE REPORT

ENFORCEMENT PROGRAM UPDATE

Intake and Mediation Centers (IMC)

Overview

The primary purpose of the Intake and Mediation Center (IMC)is to promote reconciliation between conflicting parties by compromising or settlement of 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.

Board-Adopted Goals for IMCs

Process Complaints in the IMC within 60 days

Although this is a challenge, it is critical because if not processed in that time frame it will delay the workflow in other units. June of 2013 saw 63 days to settle a complaint.

Increase the percentage of licensee complaints settled to 30%

Although it is more difficult to settle complaints because many contractors lack the financial resources to resolve the complaint issues, June of 2013 saw 31% of complaints settled.

Dispose of 70% of licensee complaints at the IMC level

For complaints that do not settle but the violations do not warrant additional investigation, other avenues are recommended to the consumer for financial redress. In June of 2013, 68% of complaints were disposed in this manner.

IMC Highlights

Contractor About to Start Military Service Gets Same-Day Complaint Resolution

A complaint was filed against a contractor days before he was to report for his tour of duty. The IMC was able to negotiate a settlement the same day that the complaint was received, have the lien that the contractor put against the home removed, and even help the contractor inactivate his license.

Contractor Blames Homeowner for Not Insuring Workers

This was an agreement for building a spa and re-plastering an existing pool. The owner complained that the word of the unsupervised employees were substandard. The IMC saw that the contractor filed an exemption from workers' compensation. Although the contractor tried saying that the owner was responsible for insurance since the owner hired the workers directly, the IMC canceled the contractor's workers' compensation exemption and the case has been referred for further investigation.

Unpaid Wages Complaint Uncovers Workers' Compensation Violation

An employee complained against his employer for unpaid wages. The employee was referred to make a wage claim with the Department of Labor Standards Enforcement. However, the IMC discovered a workers' compensation exemption had been filed. Because of this, the complaint was referred for further investigation of a workers' compensation violation.

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.

Board-Adopted Goals for ICs

Maintain ER1 Production of closing 10 complaints per month

Enforcement Representatives averaged closure of 10 complaints in June of 2013.

Reduce 270-day-old complaints to 100 or less

June of 2013 saw 104 complaints over 270 days old but July of 2013 saw just 73 because of diligent staff.

IC Highlights

Partnering to Protect the Public from Illegal Contractors

October 2009 saw a complaint against a contractor Ogundare dba Pacific Engineering Company for failing to pay over $400,000 in prevailing wages. Some of the matters went as far as the Fifth District Court of Appeal. However, the CSLB accusation led to the revocation of this contractor's license and the contractor filed for bankruptcy in 2011. Since then, the contractor has tried to apply for a new corporate license but that application has been denied. In order for the contractor to be licensed again, he will have to post a $30,000 disciplinary bond for a minimum of three years. This complaint changed how the CSLB deals with public works complaints, lead to the formation of the Public Works unit, and has helped the CSLB and Division of Labor Standards Enforcement to work together better.

Florida Man Convicted of Construction Fraud Ordered to Jail

This started as a CSLB complaint made by a homeowner for work that never happened. The homeowner found a company on the Internet that would install a rubberized surface in his back yard for $16,000. After paying a $11,500 down payment and then workers never showing, he made the complaint. Turns out that this was not the first time this company did this. The same scam was done against a Christian school for $50,000. There were also similar complaints in New York, Florida and Delaware. There was much investigation and warrants out for the arrest of Jason Grillo. Finally, Grillo was arrested in a traffic stop. Grillo was sentenced to two years in prison for the Christian school as well as ordered to pay restitution. The matter regarding the homeowner is still pending.

First Prosecution in Orange County for Fraud Related to a Public Works Contract

July 26, 2013, saw the conviction of Reza Mohammedi dba Southland Construction for embezzling more than $350,000 in employee wages from public works contracts as well as filing false tax returns to hide his theft. A CSLB public works investigator worked closely with the Caltrans' Chief of Contract Compliance in order to make this happen.

CSLB Peace Officer Highlights

Unlicensed Contractor Sentenced to Jail, Ordered to Pay Restitution

Patrick Murphy dba Murphy's Siding & Repair was under investigation for being an unlicensed contractor by the Napa County Deputy District Attorney and requested the CSLB's help. The Investigation Center peace officer helped the detective on the case. Finally an employee agreed to testify. On July 29, 2013, criminal charges were filed against Murphy for five felonies. Murphy pleaded no contest to contracting without a license.

Gozlan Investigation Leads to Grand Jury Indictment on Multiple Felony Charges

The Ventura County Grand Jury indicted 13 people for their roles in an elaborate scheme that most likely defrauded millions of dollar from thousands of Southern California homeowners. Gozlan was indicted on 32 felony counts; 22 were money laundering, 5 for theft from an elder or dependent adult, 4 for grand theft and 1 for conspiracy to commit a crime. The indictment alleged that Gozlan oversaw a fraudulent remodeling and home improvement scheme throughout Southern California where he preyed on consumers and sold them home improvement services through a network of telemarketers. Gozlan was arrested October 18, 2012, and remained in jail until bail of $750,000 was posted on August 1, 2013. The next court appearance is September 10, 2013.

Vehicle Update

The first of 25 new vehicles are being delivered to the Enforcement offices around the state. All vehicles are expected to be delivered by the end of September.

New Enforcement Strategies - CSLB Enforcement Pilot with CHP

Strategic partnering objectives include:

• Providing training to CHP officers to recognize and identify signs of unlicensed and uninsured contracting,
• Providing training to CLSB staff on how to recognize commercial vehicle registration (Note: B&P Code section 7029.6 requires display of business name and contractor license number on each motor vehicle for which a commercial vehicle registration fee has been paid),
• Partnering three CSLB investigators with three CHP officers,
• Providing CHP with the Enforcement "Quick Check" laminated vehicle guide explaining identifiers and the elements needed to support unlicensed practice and unlawful practice, and
• Developing enforcement goals to investigate and recommend legal action against medium to large contractors engaged in underground economy activity.

General Complaint Handling Statistics

A manageable level of pending complaints for all current CSLB staff is 3,285. As of June 2013, the pending caseload was 3,111.

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).

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.

SWIFT Highlights

California Blitz

The California Blitz was conducted in July, 2013. It consisted of simultaneous stings in Artesia, Fresno, Long Beach, Oxnard, Redding, Sacramento, and South Lake Tahoe. Seventy-nine Notices to Appear were issued for various illegal contracting charges.

SWIFT Stats

Stings/Sweeps

Undercover stings and sweeps were conducted throughout the state each month. There were over 200 sting and sweep days with more than 1850 legal actions during the fiscal year 2012-2013.

Fiscal Year 1012-2013 Outstanding Tax and Civil Liability Suspension

More than $27 million in unpaid outstanding liabilities were the result of the CSLB's partnership with the Employment Development Department, the Franchise Tax Board, the Department of Industrial Relations' Division of Labor Standards Enforcement and the Division of Occupational Safety and Health.

Case Management

Overview

There are three units to Case Management: the Disciplinary Services Center, the Citation Services Center, and the Enforcement Services Center.

The Disciplinary Services Center processes accusation and appeals of denied license applications, monitors licensees compliance status with disciplinary actions.

The Citation Services Center issues licensee citations, processes non-licensee and licensee citation appeals, monitors respondents' compliance status with citations, and initiates further disciplinary action when required.

The Enforcement Services Section has the responsibility of completing applicant experience verifications and flagging investigations, assisting in disputes arising from mandatory or voluntary arbitration, providing determinations on potential out-of-class violations, and researching and investigating subsequent arrests/convictions.

The Attorney General's Office and the Office of Administrative Hearings expenses are reduced because of the Mandatory Settlement Conferences (MSC), which are informal meetings where the contractor meets with an Administrative Law Judge and staff. The purpose is to settle a citation and avoid the costly formal hearing. Because of the success of Mandatory Settlement Conferences, the goal is to expand the MSC program to other geographic areas.

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)

REVIEW AND APPROVAL OF DISCLOSURE BY CSLB OF A PARTNERING AGENCY'S DISCIPLINARY ACTION

Business and Professions Code section 7124.6 specifies that the CSLB can only release information regarding complaints that have (1) been referred for accusation, (2) resulted in a citation, or (3) been referred for investigation of a serious violation that likely will result in a suspension or revocation of the license.

Action Taken Against a Licensee by a Government Agency Other than CSLB

The CSLB is aware of hundreds of complaints against licensees made by other public agencies for violations of Public Contract Code, Labor Code, Business and Professions Code, and Penal Code. Currently, the CSLB does not provide for public disclosure of the partnering agencies' actions without the CSLB taking a separate administrative action as well.

Review by DCA Legal Counsel and Attorney General Staff

The CSLB discussed with the Office of the Attorney General and the Department of Consumer Affairs Legal Counsel a proposal for legislation. However, it was determined that it would not be a violation against Business and Professions Code section 7124.6 if the CSLB provided an informational flag and an electronic link to redirect the public to other governmental agencies' websites that have the records/actions taken.

Recommendation

It is proposed that the CSLB encourage all public agencies to advise the CSLB of their documented complaints as well as other problems encountered with licensees. After verification, the CSLB will then flag the licensee on the CSLB website with an advisory statement and an electronic link (if possible).

Summary

The CSLB believes that this approach will accomplish the Strategic Plan Objective in a quick manner without legislative action.

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

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.

Intranet Redesign Project

PAO is in the process of redesigning the internal intranet site. It will feature the latest employee news and easier-to-find forms, policies, and other information needed by staff around the state. This should launch in the fall of 2013.

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 17,000 times. Various individual sections were viewed a total of 28,813 times bringing the total video views to almost 46,000.

Social Media

The CSLB's Twitter and Facebook pages continually gain followers. Facebook has almost 1,400 likes and Twitter has over 1,250 followers.

The CSLB's YouTube page contains 32 videos of Board meetings, sting operations, and other education material. There have been more than 160,000 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 August 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 May of 2013 and August 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

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

News Releases

Between May 2013 and August 2013, the PAO sent out seven news releases.

Media Training

Enforcement staff around the state is the target of PAO's plans for media training.

Industry/Licensee Outreach Highlights

California Licensed Contractor Newsletter

The last newsletter was released in the summer of 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

Only one Industry Bulletin was distributed since the last Board meeting.

Video Production Highlights

Pilot Enforcement Operation

Videos filmed during a surveillance of Southern SWIFT and a sting operation in August, will be used as part of a media and industry outreach effort.

New Video Production Equipment

New video equipment is on the way for the PAO, which will help expand its abilities to produce professional quality videos as well as live and recorded web events, like the CSLB meetings.

Publication Highlights

Currently in production is the Fall 2013 California Licensed Contractor newsletter (online only), new licensee wall certificates, new 10 Tips cards. Currently in development are the Consumer Guide booklet, Contractor/Applicant Guide, 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. From June 14, 2013, through September 6, 2013, there were 20 Senior Scam Stopper seminars and there is another 21 scheduled before the end of the year.

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. There have been five of these seminars scheduled for the future.

LEGISLATIVE COMMITTEE REPORT

Status of 2013 Legislation

AB 993 (Linder) Contractors: Arbitration

Amends the Contractors State License Law. Applies conflict of interest provisions to an arbitrator in a proceeding regarding a dispute between a consumer and a contractor. Requires a prospective arbitrator to comply with certain disclosure requirements prior to accepting an appointment. Authorizes the release of a mechanic's lien and the return of tools. Provides for a waiver of rights to attorney fees or to challenge the award of attorney fees. Relates to the exclusion of persons from the proceeding.

The CSLB is sponsoring this two-year bill.

SB 261 (Monning) Contractors Fraudulent Use of License

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 State License Law.

The CSLB is sponsoring this bill. It has currently passed the Legislature and is on the Governor's desk waiting approval.

SB 262 (Monning) Contractors

Relates to the Contractors State License Law; requires a qualifying individual to meet specified requirements with respect to his or her employer's or principal's construction operations. Provides that this person shall not act in the capacity of the qualifying person for an additional individual or firm except under certain circumstances. Provides that violations constitute a cause for disciplinary action, a fine and imprisonment.

The CSLB is sponsoring this bill. It is currently passed the Legislature and on the Governor's desk waiting approval.

SB 263 (Monning) Contractors: Unlicensed Activity

Relates to the Contractors State License Law. Provides that it is a misdemeanor for a person to act in the capacity of a contractor if the person either has never been licensed, or the person was a licensee, but performed acts covered by the law under a license that was inactive, expired, revoked, or under suspension. Provides that it is a cause for disciplinary action for a licensed contractor to enter into a contract with a contractor while the contractor is not licensed.

The CSLB is sponsoring this two-year bill.

SB 822 (Business, Professions and Economic Development Committee) Professions and Vocations

Provides for licensure of out-of-state accountants. Relates to delinquency fees regarding the renewal application under the Contractors State License Law. Deletes a meeting requirement of the State Board of Guide Dogs for the Blind for certification of schools that provide training of guide dogs. Creates a retired registration category and fee for geologists or geophysicists. Allows a fictitious business name statement to be signed by either party to a marriage.

The CSLB is sponsoring this 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 July 31, 2013, they have received 1,140 applications for LLC licenses. Of those, only 330 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, 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 1,163 applications and issued 1,375 probationary licenses through July 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. This is attributed to staffing levels and training.

Staffing Update

There is only one vacancy, for a Program Technician II. A new front counter supervisor started in June 2013.

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 2,435 and 3,543 examinations scheduled each month from August of 2012 through July 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 December 2013.

From August of 2012 to July of 2013, Norwalk had the most examinations at 8,297 and Fresno the least with 1,472.

Examination Administration Staffing

The San Diego Testing Center has hired a new test monitor. The San Jose Testing Center is attempting to fill a vacancy. The headquarters is also in need of a new Office Technician.

Examination Administration Projects

Audits at three centers have been conducted since the new analyst began. There will be an audit a month at the remaining testing centers. In addition, the new analyst is working on revising the Procedure Manual for the Examination Administration Unit.

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.

Occupations Analyses in Progress:

• B General Building
• C-10 Electrical
• C-13 Fencing
• C-35 Lathing and Plastering

New Examinations in Progress

• C-5 Framing and Rough Carpentry
• C-28 Lock and Security Equipment
• C-38 Refrigeration
• C- 45 Sign
• C-50 Reinforcing Steel
• C-55 Water Conditioning
• C-57 Well Drilling
• C-60 Welding

Examination Development Unit Staffing

The EDU is finally fully staffed.

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 LANGUAGE FOR ASBESTOS CLASSIFICATION REGULATION

The board has been discussing the necessity of having a new license classification, C-22 - Asbestos Abatement Contractor. The idea has now been approved and staff has been given the task of amending the proposed language, which currently reads as follows:

§832.22. Class C-22 - Asbestos Abatement Contractor.

(a) An asbestos abatement contractor performs abatement, including containment, encapsulation, or removal, and disposal of asbestos containing construction materials, as defined in Section 6501.8 of the Labor Code, in and on buildings and structures. All work performed and all documentation prepared by an asbestos abatement contractor shall be done in accordance with regulations and requirements of the Division of Occupational Safety and Health (DOSH) of the Department of Industrial Relations.

(b) The Board shall not issue an asbestos abatement contractor license unless the applicant or contractor is duly registered with DOSH pursuant to Section 6501.5 of the Labor Code or has an active application for registration in process with DOSH.

(c) Within 90 days after the asbestos abatement contractor license is issued, the contractor shall submit to the Board proof that he or she is duly registered with DOSH pursuant to Section 6501.5 of the Labor Code. Failure of a licensee to provide proof of current registration with DOSH within 90 days after issuance shall result in the automatic suspension of the license or removal of the C-22 - asbestos abatement contractor classification at the end of the 90 days.

(d) Every applicant for the C-22 - asbestos abatement contractor classification must have had, within the last 10 years immediately preceding the filing of the application, not less than four years of experience as a journeyman, foreman, or supervising employee working for a licensed contractor who holds the C-22 - asbestos abatement contractor classification or the asbestos certification, as defined in Section 7058.5 of the Code.

(e) The Board shall require as a condition precedent to the renewal of an asbestos abatement contractor license that the licensee have on file proof of current registration with DOSH pursuant to Section 6501.5 of the Labor Code.

(f) This classification does not include any addition to or alteration, repair, or rehabilitation of the permanently retained portions of such buildings and structures. Hazardous substance removal and remediation, as defined in Section 7058.7 (d) of the Business and Professions Code, are specifically not included in this classification.

Note: Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7058, 7058.7, and 7059, Business and Professions Code; and Sections 6501.5 and 6501.8, Labor Code.

§833. Asbestos Classification and Certification Limitations and Examination Requirement.

(a) The C-22 - asbestos abatement contractor classification shall operate as a stand-alone specialty contractor classification for asbestos abatement work, notwithstanding any other classification held by the licensed contractor.

(b) No general building contractor, as defined in Section 7057 of the Code, shall contract for any project that includes asbestos abatement work unless the general building contractor holds the C-22 - asbestos abatement contractor classification or the asbestos certification, as defined in Section 7058.5 of the Code, or unless the general building contractor subcontracts with an appropriately licensed contractor.

(c) The asbestos certification, as defined in Section 7058.5 of the Code, shall operate in conjunction with other classification(s) held by the licensed contractor. No licensed contractor who holds the asbestos certification shall contract for any project that includes asbestos abatement work in a trade for which the contractor is not licensed, unless the licensee also holds the C-22 - asbestos abatement contractor classification.

(d) The Registrar may waive the trade examination, pursuant to Section 7065.3, for the C-22 - asbestos abatement contractor classification for a licensed contractor who holds the asbestos certification, as defined in Section 7058.5 of the Code, upon application and conclusive showing by the licensee that he or she possesses not less than four years journey-level experience in the C-22 - asbestos abatement contractor classification within the last 10 years immediately preceding the filing of the application. The licensee shall have obtained the asbestos certification after having passed the written asbestos certification examination and shall have held the asbestos certification in active and good standing throughout the four-year experience period at a minimum.

Note: Authority cited: Sections 7008 and 7059, Business and Professions Code. Reference: Sections 7057, 7058, 7058.5, 7059, and 7065.3, Business and Professions Code.

EXECUTIVE COMMITTEE REPORT

ADMINISTRATION AND INFORMATION TECHNOLOGY UPDATE

Personnel Update

Positions

The CSLB has six transfers from within over the summer and 15 from other departments. There were 8 promotions and 6 new hires. As of August 15, 2013, the CSLB had 31.25 vacant positions.

Business Services Update

• Out of the twenty five (25) vehicles approved for purchase by the Agency Secretary and the Department of General Services (DGS) for our Enforcement division, nine (9) already have been delivered and are in use. CSLB expects the remaining sixteen (16) vehicles to be delivered in September and October.
• DGS is processing leasing documents for the move of CSLB's Oakland testing center to an office site in Berkeley. CSLB staff is working with DCA and DGS to finalize the interagency agreement with the Department of Toxic Substances Control (DTSC) from whom they are leasing the space. The anticipated move date has moved to December 2013.
• CSLB and DCA staff began drafting the Request for Proposal (RFP) Number RFP CSLB-13-1, entitled "Arbitration Program". CSLB anticipates the agreement being executed in December 2013 for the term of two (2) years with two (2) one-year options to renew. This contract will commence immediately after the existing Arbitration Program contract expires.
• New furniture was ordered for the Valencia and Oxnard field offices. The estimated shipping date is September 2013.
• A new mail inserter machine for the Testing division was delivered and installed last month. This equipment will eliminate the need to rely on the Office of State Printing to print and assemble mailers (questionnaires), and will significantly reduce processing time.

BreEZe

BreEZe will include e-payment/online licensure; renewals, and on-line complaints once it is implemented. The "go-live" date has already been pushed back several times. The proposed "go live" date for Phase 1 is October 2013.

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.

Interactive Voice Response (IVR) System

The IVR is a valuable source of information for consumers and contractors as well as others. From May through June of 2013, the IVR handled over 111,500 calls, averaging more than 37,000 per month.

Topics available include:

• Contactor or Want to Become Contractor
• Info on Maintaining or Changing License
• Contractor's License Check
• About License Renewal
• Contractor License Application
• Hire or Problem with Contractor
• About Making Changes to License
• License Number Not Known
• About Continuing Requirements
• For Changes to Existing Licenses
• Reschedule Exam Date
• Info on Problems with Contractor
• License Requirements
• General Application & Examination Info
• Info about Bond or Workers' Comp Requirements
• For Changing the Business Structure of an Existing License
• To Fax Forms, or To Order Forms by Mail
• Info about Workers' Comp Requirements
• License Complaint Information
• How to get Written Info on Contractor License

BUDGET UPDATE

Fiscal Year 2012-13 CSLB Budget and Expenditures

The CSLB spent $53.6 million, 92% of its Fiscal Year 2012-2013 final budget.

Revenue

The revenue for the fiscal year 2012-2013, was $55,587,254. This was a 1.2% increase from the prior year.

Fiscal Year 2013-14 CSLB Preliminary Budget

The preliminary budget for the next year shows a total over $61 million.

CSLB Fund Condition

The Contractor's License Fund for the Fiscal Year 2012-13 is over $28 million, over 6.7 months in reserve.

Construction Management Education Account (CMEA) Fiscal Year 2012-13 Budget and Expenditures

Through the fiscal year 2012-2013, CMEA spent approximately $14,000 in pro rata charges and $121,000 in grant awards.

CMEA Fund Condition

For the Fiscal Year 2011-12 there was 23 months in reserve. The fiscal year 2012-2013 saw 16 months in reserve. It is expected to decline with an estimated 0.4 months in reserve for the 2014-15 Fiscal Year.

REVIEW OF TENTATIVE SCHEDULE

December 10, 2013 - Norwalk

Late February/Early March of 2014 - San Francisco Bay Area

April 23-24, 2014 - San Diego

June 5, 2014 - Orange County

Abdulaziz, Grossbart & Rudman

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