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HIGHLIGHTS OF
THE CONTRACTORS’ STATE LICENSE BOARD
BOARD MEETING
NORWALK, CALIFORNIA
JUNE 24, 2010
By Sam K. Abdulaziz
Abdulaziz, Grossbart & Rudman
Industry Support For CSLB Possibly on the Horizon
License Processing Moving Along Well
Sam Abdulaziz Receives Certificate of Appreciation
The Contractors’ State License Board held a full Board Meeting on Thursday, June 24, 2010 in
Norwalk, CA. This document merely highlights what may have transpired.
The following Board Members were present:
Chair, Edward ―Eddie‖ Barnes; Vice Chair. Lisa Miller-Strunk; Secretary, Robert Lamb;
Board Members, Joan Hancock; Matthew Kelly; Louise Kirkbride; Ed Lang; Paul Schifino;
Mark Thurman; and Ruben Zuniga.
Board Members that were absent were:
Board Members, Robert Brown and Bruce Rust.
There are three vacant positions on the Board.
Sam Abdulaziz received a Certificate of Appreciation from the Contractors' State License Board.
The Certificate stated:
―This Certificate is given with great appreciation to Sam Abdulaziz for his
many years of dedication to the construction industry, and particularly for
providing his legal expertise, policy input, and support of board members
and staff.
As a result of your diligence and dedication, consumers, contractors, and
UCLA alumni have benefited from your efforts. We extend our sincerest
gratitude.‖
I. LEGISLATIVE COMMITTEE REPORT
1. Review and Consideration of Legislation
None of the following Bills have passed. If they do pass, the following is a short
summary of how they will affect the legislation currently in place.
a. Two-Year Bills
i. AB 660 (Torrico) – Sprinkler Fitters: Licensing
This deals with certification and regulation of sprinkler fitters. It
prohibits people from working on any fire suppression system
unless he or she possesses a valid sprinkler fitter or limited scope
sprinkler fitter certificate issued by the State Fire Marshall. It
prohibits a person or entity from employing a person to perform
work on a suppression system without such a certificate or permit.
There would be enforcement by the State Fire Marshall.
b. Bills with a Support Position
i. AB 2332 (Eng) – Contractors: Licensees
This relates to the CSLB and amends an existing law that provides
that the Board may refuse to issue, reinstate, reactivate or renew a
license and it may suspend a license for the failure of the licensee
to resolve all outstanding final liability, which includes taxes. It
also authorizes the Board to take action to resolve those liabilities
and taxes.
ii. SB 1254 (Leno) – Contractors: Workers’ Compensation Insurance
This authorizes the Registrar of the CSLB to issue a Stop Order to
any licensed or unlicensed contractor who, as an employer, has
failed to secure workers’ compensation insurance coverage for his
or her employees. It sets forth procedures for the payment of
employees during a work stoppage subject to a Stop Order and for
an employer to request a hearing to protest a Stop Order.
iii. SB 1491 (Senate Business, Professions & Economic Development
Committee) – Professions and Vocations
This is cleanup provisions to the State Contractors’ License Law.
It extends the statute of limitations for filing an action to discipline
unlicensed contractors so that they conform to the statute of
limitations for licensees. Action must be brought within four years
from the date of the violation or 18 months after the filing of the
complaint, whichever is later.
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c. Bills with a Watch Position
i. AB 2305 (Knight) – Contractors: Workers’ Compensation
Insurance
This will amend existing law that requires a contractor with a C-39
roofing classification to obtain and maintain workers’
compensation insurance even if he or she has no employees. It
would also extend the operation of those provisions until a certain
date.
ii. SB 1171 (McLeod) – Regulatory Boards: Operations
This abolishes the Joint Committee on Boards, Commissions, and
Consumer Protection and authorizes the appropriate policy
committees of the Legislature to carry out its duties.
II. LICENSING COMMITTEE REPORT
1. Licensing Program Update
a. License Application Workload
The average number of applications in the past ten years ranges from 1182
to 1897 per month. There was an unusual increase from 2004-2007 which
can be attributed to the fingerprint requirements that went into effect in
January 2005. The total number of applications received per month
include the original exam, original waiver, adding classification, and
replacing the qualifier.
b. Applications Update
In May 2008, the CSLB staff revised seven of its most used applications
for licensure, registration, and certification. Some important changes
include the addition of red ink throughout the application to highlight
important text, addition of a disclaimer about schools, and other such
matters.
c. License Transaction Processing Times
CSLB management monitors processing times for the various units on a
weekly and monthly basis. During the fiscal year 2008/09, the Licensing
division utilized a minimal amount of overtime as compared to previous
fiscal years and, despite the 15% reduction in staff hours due to furloughs,
the Licensing Division has maintained acceptable processing times, which
can be attributed to the overall decrease in applications.
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d. Fingerprinting/Criminal Background Unit Update
Since the fingerprint program began in 2005, the CSLB has received more
than 213,000 transmittals from the Department of Justice, including clear
codes and conviction information. Of the applicants who were
fingerprinted during that time period, the CSLB Criminal Background
Unit received Criminal Offender Record Information for nearly 35,000
applicants, which means that the California Department of Justice and/or
the Federal Bureau of Investigation reported that the individual had a past
criminal conviction.
e. Licensing Information Center Update
Among the units in the Licensing Division, the Licensing Information
Center has seen the greatest impact as a result of the staff furloughs.
While the number of calls received in the Licensing Information Center
has remained relatively consistent over the calendar year 2008/09, due to
the 15% reduction in staff hours, call wait times have increased by 14%
overall in 2009.
f. Judgment Unit Update
The Judgment Unit processes all outstanding liabilities, judgments and
payment of claims reported to the Board by licensees, consumers,
attorneys, credit recovery firms, bonding companies, CSLB Enforcement
Division and other governmental agencies as well as all documentation
and correspondence related to resolving these issues.
2. Testing Division Update
a. Testing Center Status
i. San Diego – Increased capacity to 28 by relocating to new space.
This move was completed in February 2010.
ii. Fresno – Relocated to increase capacity and resolve security issues.
This move was completed in May 2010.
iii. Oxnard – Relocation was required due to the expiration of the
lease. The move to the new location was completed in the first
week of June 2010.
iv. The total seating capacity at test centers as of 2005 was 142 and is
now 270 this year.
b. Testing Division Staffing
There is currently one half-time position and one full-time position vacant.
Recruitment is underway to fill the full-time position while there are no
plans to fill the half-time position to achieve the required budget savings.
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c. Examination Development
The Testing Division’s Examination Development Unit manages the
responsibility of ensuring that the licensing examinations are currentl and
relevant and that all licensed contractors exhibit basic business
competency skills by ensuring that the CSLB’s 45 examinations are
maintained and updated in accordance with testing standards, guidelines,
and CSLB regulations.
III. PUBLIC AFFAIRS COMMITTEE REPORT
1. Website Highlights
a. New Email Alert Feature
Subscriptions are now available to receive alerts for
California Licensed Contractor Newsletter
Press Release/Consumer Alerts
Industry Bulletins
Public Meeting Notices/Agendas
b. License Look-Up Feature Enhancement
The Public Affairs Office is working with the Information Technology
division to revamp CSLB’s online license look-up feature. It currently
allows people to check a license by its license number unless you click on
other options. The new layout will put all options together.
c. YouTube.com Page
The CSLB is able to upload videos of unlimited length to this website,
which is the most popular video site on the Internet.
2. Disaster Outreach Highlights
The Public Affairs Office coordinated with the Enforcement Division to staff a
Local Assistance Center in the city of El Centro during the weeks of April 16 and
April 26, 2010. This center was set up to support consumers who suffered
damage from the 7.2 earthquake that struck on April 3, 2010, just south of the
California-Mexico border.
3. Media Relations Highlights
a. Press Releases
i. April 15, 2010 CSLB Cracks Down on Unlicensed Contractors
Trying to work in Tehama County
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ii. April 15, 2010 CSLB Cements 15 Cases Against Unlicensed
Contractors
iii. April 22, 2010 CSLB helps Consumers Protect Kids from Lead
Exposure in Their Homes
iv. April 30, 2010 CSLB Sting Snares Unlicensed Contractors
Twice in One Month
v. May 10, 2010 CSLB Warns Californians: Don’t Get Burned
When Going Solar
vi. May 20, 2010 CSLB Goes Undercover to Catch Unlicensed
Contractors in Siskiyou County
vii. May 25, 2010 Unlicensed Contractors ―Boxed In‖ during
CSLB Sting in El Cajon
viii. May 25, 2010 CSLB Sting Nets Nine Phone Contractors in
Tuolumne County
ix. May 25, 2010 CSLB Sting Cathces 12 Unlicensed Operators
b. Media Calls
There were 31 separate media inquires between April 15, and June 7,
2010, wherein the Public Affairs Office provided interviews to a variety of
newspapers, radio, and television outlets.
c. Media Event
The Public Affairs Office conducted a press event in Siskiyou County on
May 20, 2010 that announced the results of a undercover sting and sweep
operation near the California-Oregon state line.
4. Industry/Licensee Outreach Highlights
a. Industry Bulletins
b. The Industry Bulletins serve as alerting industry members of important
and interesting news. They are sent out from the CSLB by email to over
200 people and groups, who then forward them to countless other email
addresses. There were two Bulletins sent out between April 15, 2010 and
June 7, 2010:
i. April 22, 2010 Hefty Fines for Violators of New Lead Paint
Standards Begin
ii. May 13, 2010 Up-To-Date Contractors Information Vital to
License Processing
5. Building Department Outreach Highlights
In August 2009, the Public Affairs Office conducted a major outreach effort to the
state’s 500 plus building departments and distributed consumer posters, brochures
and table-top holder, along with newly published Building Official Information
Guides for staff.
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6. Reality Show Highlights
The reality TV show project is on hold. CSLB heard on April 30, 2010, that the
DIY Network, which had expressed interest in the show’s concept, was going to
pass on the project. The project is currently being shopped to other cable TV
networks.
7. Publications Highlights
Between April 15, and June 7, 2010, a number of publications have been
completed, moved into production, or are being reviewed and designed.
a. Completed Publications
i. 2009 Accomplishments & Activities Report
ii. Board Procedures Manual
iii. CSLB Matters (Employee) Newsletter
iv. Winter/Spring 2010 California Licensed Contractors Newsletter
b. Publications Being Printed/Awaiting Department of Consumer Affairs
Processing
i. After a Disaster Don’t Get Scammed (English Brochure)
ii. Industry Experts Program (English Brochure)
iii. Owner-Builder (English Brochure)
iv. What You Should Know Before Hiring a Contractor (English
Brochure)
v. What Seniors Should Know Before Hiring a Contractor (English
Brochure)
vi. Mandatory and Voluntary Arbitration (English Brochure)
c. Publications Currently in Production/Design/Review
i. 2010/11 Strategic Plan
ii. Blueprint for Becoming a Licensed Contractor
iii. Contracting for Success
iv. Description of Classifications
v. Preventing Mechanic’s Liens
vi. Owner-Builder (Spanish Brochure)
vii. What You Should Know Before Hiring a Contractor (English
Booklet)
8. Community Outreach Highlights
Between April 15, and June 7, 2010, the Public Affairs Office conducted a total of
four Senior Scam Stopper seminars. Two more are scheduled to be held in June
in Tracy and Yucaipa.
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IV. ENFORCEMENT COMMITTEE REPORT
1. Intake/Mediation Centers
a. Overview
The Intake and Mediation Centers provide complaint-handling
information to the public and initiate reactive complaints filed against
unlicensed and licensed contractors. They are also responsible for
inputting all available complaint details into the CSLB’s database. Their
primary function is to intervene with the conflicting parties to promote
reconciliation, compromise, or settlement of the complaint issues.
b. Intake/Mediation Center Highlights
i. Electrical Repair Results in Full Investigation of Contractor
ii. Mediation Reveals 50 Unregistered Salespeople
iii. Contractor Goes Above & Beyond to Save Reputation
2. Investigative Centers
a. Overview
Investigative Centers are the second step in the complaint-handling
process. If a complaint cannot be resolved through the Intake/Mediation
Center or requires a more thorough investigation into violations of
Contractor License Law, the complaint is referred to an Investigative
Center in the geographical location of the project site and is assigned to an
enforcement representative who then provides a disposition to the
complaint after conducting an extensive investigation.
b. Investigative Center Highlights
i. Enforcement Representative Receives Full Admission to Crime
ii. Non-Licensee Pleads Guilty to Elder Abuse & Unlicensed Activity
iii. Public Works Arena in Need of Enforcement
iv. Fatality Referral Results in Jail Time and Possible Revocation
v. Unlicensed Contractor Cons Community out of $300,000 plus.
vi. J. Barnes Construction Revoked for Negligent Behavior
3. Case Management
a. Overview
Case Management is divided into three main units:
Disciplinary Services Section has statewide responsibility for
processing accusations and appeals of denied license applications,
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and monitors licensees’ compliance status with the Board’s
disciplinary actions.
Enforcement Services Section has statewide responsibility for
completing applicant experience verifications and flag
investigations, assisting in disputes referred to the Board’s
Mandatory or Voluntary Arbitration programs, providing
determinations on potential out-of-class violations, and researching
and investigating subsequent arrests/convictions.
Citation Processing Center has statewide responsibility for issuing
licensee citations, processing non-licensee and licensee citation
appeals, monitoring respondents’ compliance status with the
citations, and initiating further disciplinary action, when required.
4. SWIFT
a. Overview
The Statewide Investigative Fraud Team (SWIFT) takes a proactive
approach to enforcement. SWIFT units, either at the request of
individuals, organizations, or governmental authorities, identify
geographic areas where unlicensed construction or illegal advertising is a
problem. These units may conduct ―sweeps‖ in which they stop at all
construction sites in a designated neighborhood and cite any violators of
the Contractors License Law.
b. Swift Highlights
i. Sweeps
There was a formal operation as well as seven sweeps held in May.
SWIFT staff paired up with Employment Development
Department, Department of Insurance, Marin County District
Attorney’s Office, Division of Labor Standards Enforcement and
various other DA offices. Sweeps were held in Santa Rosa, Cotati,
Sonora, Jamestown, Tuolumne City, Angles Camp, Alameda, San
Rafael, Bishop, Independence, Big Pine, Lone Pine, Cathedral
City, La Quinta, Indian Wells, Palm Desert, Rancho Mirage; Palm
Springs, Yreka, and Big Bear Lake.
ii. Stings
In May, SWIFT investigators held six stings in the northern,
central and southern California regions. Northern California
SWIFT held stings in Contra Costa and Siskiyou Counties.
Central Valley SWIFT covered Tuolumne County while Southern
SWIFT conducted stings in San Bernardino County, Calabasas and
El Cajon.
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5. Review and Approval of Strategies to Combat Unlicensed Practice
The staff proposed strategies to enhance CSLB’s proactive enforcement efforts in
combating unlicensed practice at the Enforcement Committee meeting on May
25, 2010.
A summary of the proposed strategies are as follows:
a. Consumer Educational Letter
b. Advertisement Enforcement Pilot Unit
c. Telephone Disconnect
6. Review and Approval of CSLB/Building Official License & Permit Compliance
Partnership
At the Enforcement Committee meeting on May 25, 2010, staff proposed
establishing a partnership at Building Officials from designated Counties to
increase permit and license compliance in an effort to reduce permit compliance
burdens on licensed contractors and redirect resources towards unlicensed contractors and
other egregious permit violators. A motion to submit the recommendation to the full Board was
made by Committee Member Matt Kelly and seconded by Committee Member Jim
Miller. The motion carried 5 - 0.
The Enforcement division will accomplish this by implementing the following:
Establish a baseline for the number of permits issued each year in specific
trades/classifications (i.e., HVAC, roofing, and residential additions)
Establish a baseline for the number of business licenses issued to construction
contractors
Establish partnerships with businesses, such as Home Depot, to provide
consumers and contractors with educational information regarding permit and
licensure requirements
Improve accessibility of building permit applications by making them available at
private businesses and/or online
Develop recommendations that encourage licensees to pull permits and provide
proof of workers' compensation insurance and obtain permits; discourage
"owner-builder" permits (i.e., require owners to be present for all inspections for
owner-builder permits)
Send the CSLB industry bulletin regarding CSLB enhanced permit
enforcement to all licensees in the designated classifications operating in the
vicinity of the selected building departments' jurisdictions
Identify sting targets, as follows:
o Unlicensed contractors working without permits or under an owner-builder
permit
o Material supplier records identifying recipient of materials, i.e.
roofing supplier, HVAC units, etc. (will be obtained through
administrative subpoena, if necessary)
o Prior inspection of owner-builder permit determined contractor(s) working
on- site
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o Contractors who advertise for significant work and have a history with the
building department of not obtaining permits
Conduct license and workers' compensation compliance sweeps of
construction sites with representatives from local building departments
and code enforcement offices, along with partners—EDD, DLSE and the
Department of Insurance
V. EXECUTIVE COMMITTEE REPORT
1. Administrative Program Update
a. Personnel Update
The Enforcement Representative I will be administered as a continuous
merged exam and on an Open Non-promotional basis. The advantage of
an Open Non-promotional exam feature is there is an identified promotion
group within the department, and three career credits will be added to the
candidates’ final score.
b. IWAS
The IWAS unit has cleared up the backlog and is therefore current with
License application scanning. Staff worked hard and spent overtime hours
to achieve this.
c. Business Services Update
i. Fleet
a. In response to the Executive Order prohibiting the
purchasing of vehicles, secured vehicle enclosures were
requested and/or installed at various CSLB locations to
allow on-site storage of vehicles and enable shared use of
the available fleet. A total of 14 vehicles, which have
passed their useful life, are being prepared for survey to the
Davis Action for FY 09/10.
ii. Contracts
a. Submitted a contract request to the Department of
Consumer Affairs to renew the Public Outreach contract for
one additional year. The original contract was scheduled to
expire June 30, 2010.
b. Mailing ―Pre-Sort‖ contract submitted to the Department of
Consumer Affairs for processing. It is estimated that the
CSLB will save approximately $50,000 annually in postage
by using pre-sort services.
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d. Information Technology Division Update
i. Electronic Payment at CSLB Headquarters
ii. Automated Call Distribution System Replacement
iii. Pocket Card Equipment Replacement and New Mailing System
iv. iLicensing/BreEZe – Online Licensing Services
e. Budget Update
The CSLB budget for FY 2009/10, including adjustments contains a net
appropriation of $55.6 million (including scheduled reimbursements).
Through April 30, 2010, CSLB spent or encumbered $43 million, roughly
77.4 percent of its budget.
VI. 2010-11 STRATEGIC PLAN
The construction industry is one of California’s largest industries and California is one of
the top 10 world economies. This creates an enormous demand for contractor licensing.
1. Significant Accomplishments of 2009-2010
Some of the significant accomplishments over the past year and a half include
expanding partnerships by leveraging staff and resources, maintaining
productivity despite furloughs and downsizing, a stronger emphasis on cost-
effectiveness by the management, excellent morale and competency with the
Registrar and key staff, and expanded public and media awareness.
a. Program Priorities
The Board’s priorities have been established to include focus on early
intervention, and consumer education about their rights and
responsibilities.
b. Challenges and Changes
Given the economic struggles, CSLB must continually adjust to dynamic
initiatives, technologies and priorities to address the following in the
coming fiscal year:
i. Sunset Review Report
ii. New Administration Priorities
iii. State budget challenges
iv. CSLB’s long-term budget and revenue base
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v. Workers’ compensation, including solar, HVAC, and other
climate-related trades that are creating licensing, classification and
enforcement issues
vi. Passage of landmark SB1254 and its successful implementation
vii. BreEZe and its impact on CSLB’s Information Technology
services
viii. Public works agency award processes that cause challenges for
licensing classification and enforcement
ix. Organizational development and training, and overall succession
planning
c. Strategic Direction
The Board has identified numerous actions in order to advance the CSLB,
meet its challenges, and capitalize on opportunities in Enforcement, Public
Affairs, Licensing, Information Technology, and Legislative Affairs.
d. Mission
The CSLB protects consumers by regulating the construction industry
through policies that promote the health, safety, and general welfare of the
public in matters relating to construction.
e. Vision
California consumers and contractors will have a safe, fair, and
competitive marketplace.
f. Values
The CSLB will strive for the highest possible quality throughout all of its
programs.
g. Goals
The CSLB has established goals based upon its five main divisions, to
provide the framework of its operational mission:
i. Licensing
Ensure that all applicants and licensees are qualified to provide
construction services.
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ii. Enforcement
Reduce, eliminate, or prevent unlicensed activity and
unprofessional conduct that pose a threat to public health, safety,
and welfare.
iii. Public Affairs
Educate consumers to make informed choices about construction
services, and ensure that licensed contractors strengthen their
technical management and service skills.
iv. Legislation
Ensure that statutes, regulations, policies, and procedures
strengthen and support CSLB operations.
v. Administration
Enhance organizational effectiveness, and improve the quality of
customer service in all programs.
VII. FURLOUGH RELIEF
July 1, 2010 is the scheduled termination of furlough days. However, there is nothing
written in stone as to what the future of the CSLB’s budget will hold, even though the
CSLB is a special fund. The CSLB may need industry support at some point in the future
so be prepared.
Remember, this document is just a small “highlight” of the Board Meeting.
Attorney Sam Abdulaziz of Abdulaziz, Grossbart & Rudman has been practicing construction law for over 30 years. He
has written a book called “California Construction Law” which is updated annually. He represents numerous construction
trade associations and contractors. He appears at Contractors State License Board meetings and has argued a number of
cases before the appellate courts, including the California Supreme Court dealing with the "Pay-If-Paid Clause." Abdulaziz,
Grossbart & Rudman provides this information as a service to its friends & clients. The documents are of a general
nature and are intended to highlight areas of the subject matter and should not be used as a substitute for legal advice.
It is intended to highlight the areas being discussed. This document does not create an attorney-client relationship, or
protect any confidential information until a written agreement is signed. You should seek the aid and advice of a
competent attorney, accountant and/or other professional instead of relying on the presentation and/or documents.
Sam Abdulaziz can be reached at Abdulaziz, Grossbart & Rudman, P.O. Box 15458, North Hollywood, CA 91615-5458;
(818) 760-2000, Facsimile (818) 760-3908; or by E-Mail at info@agrlaw.net .
On the Internet, visit our Website at www.agrlaw.net
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