CLC Newsletter Fall 2012

Governor Signs CSLB-Sponsored Bill(s)

Update on 2011-12 legislative session activity

The Governor has signed into law CSLB-sponsored legislation to allow all CSLB enforcement representatives to issue Notices to Appear in court. Assembly Bill (AB) 2554 will take effect January 1, 2013.

This year's other CSLB-sponsored bill, AB 2237 (Monning), more clearly defines a "contractor" for home improvement contracts, to include an individual who provides or oversees a bid, or arranges for and sets up work schedules and maintains oversight of the project.

CSLB is following other legislation that pertains to home improvement contracting and the construction industry. These bills have been approved by the Legislature and are awaiting action by the Governor. This is not an exhaustive list, and those interested in keeping tabs on bills as they are introduced should consult Legislative Counsel's Official California Legislative Information page.

Other pending legislation that impacts contractors:

AB 1794 authorizes the Employment Development Department (EDD) to provide new employee information filed by employers with members of the Joint Enforcement Strike Force (which includes CSLB) to aid in prosecuting violations of tax and cash-pay reporting laws.
AB 2219 indefinitely extends the requirement that all C-39 Roofing contractors obtain workers' compensation coverage, even if they certify that they have no employees. The bill also indefinitely extends the requirement that insurers conduct annual audits, and requires that these audits be conducted in person to verify the accuracy of the reported number of employees.
SB 691 adds CSLB to the list of agencies approved to receive workers' compensation insurance information from EDD.
SB 863 makes numerous significant reforms to workers' compensation insurance. It is intended to reduce costs to businesses and workers' compensation insurance rates, and provide improved care for injured workers more quickly. The new law is designed to create a system that is more predictable, with less need for litigation. The law will make changes to medical provider networks, independent medical review, independent bill review, liens, fee schedules, medical care, interpreters, and permanent disability benefits.

AB 2114 enacts new construction permit requirements for swimming pools, spas, or public wading pools.
SB 1099 changes the effective date of regulations to four times annually, versus the current 30 days following Office of Administrative Law (OAL) approval, and requires OAL to provide a link on its website to all regulations filed with the Secretary of State.
SB 1520 makes minor changes to the state's regulatory adoption processes.

AB 2440 makes changes impacting those contracting for public works projects with the Los Angeles County Metropolitan Transportation Authority.
SB 1370 requires the Department of Industrial Relations to post on its website prevailing wage requirements on public works projects.
SB 1549 changes public works contract bidding in the San Diego region.

AB 1588 waives fees or continuing education requirements for a licensee whose license expires while on active duty in the Armed Forces or California National Guard.
AB 1904 allows for the issuance of temporary professional licenses (including those issued by CSLB) to spouses of those serving in the military.
AB 2570 prohibits a licensee from including provisions in settlements of a civil dispute that prohibit the consumer from contacting, filing a complaint, or withdrawing a complaint with CSLB (or any other consumer protection program overseen by the Department of Consumer Affairs).
SB 1576 enables CSLB to take administrative action if a licensee files a false complaint against another licensee.

AB 1750 specifies that a C-27 Landscape contractor can enter into a prime contract for a rainwater capture project.
AB 2339 requires state regulators and those involved in the heat pump and geothermal heating and cooling industries to evaluate policies and develop infrastructure for wider use of these technologies.
SB 1092 requires brokers of construction trucking services to demonstrate evidence annually of a valid surety bond.