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California State License Board (CSLB) Board Meeting, March 25, 2021

California State License Board (CSLB) Board Meeting, March 25, 2021

May 11, 2021

 

March 25, 2021
Sacramento, California

CONTRACTORS STATE LICENSE BOARD
Board Meeting

CONTRACTORS STATE LICENSE BOARD STATE OF CALIFORNIA
9821 Business Park Drive, Sacramento, California 95827
Mailing Address: P.O. Box 26000, Sacramento, CA 95826
800.321.CSLB (2752) | www.cslb.ca.gov | CheckTheLicenseFirst.com

NOTICE OF PUBLIC TELECONFERENCE BOARD MEETING

Thursday, March 25, 2021 9:00 a.m.?12:00 p.m. (or until the conclusion of business)

Pursuant to the provisions of Governor Newsom?s March 17, 2020 Executive Order N-29-20,
neither a public location nor teleconference locations are provided.

Teleconference Information to Register/Join Meeting for Members of the Public via WebEx:

https://cslb.webex.com/cslb/onstage/g.php?MTID=e3539a185f3a87bdcc6acf0390b727f66
Call-In Number: (415) 655-0001 or (844) 621-3956
Access Code: 126 436 6829

Meetings are open to the public except when specifically noticed otherwise in
accordance with the Open Meeting Act. All times when stated are approximate and
subject to change without prior notice at the discretion of the Board unless listed as
?time certain.? Items may be taken out of order to maintain a quorum, accommodate a
speaker, or for convenience. Action may be taken on any item listed on this agenda,
including information-only items. The meeting may be canceled without notice.

Members of the public can address the board during the public comment session.
Public comments will also be taken on agenda items at the time the item is heard and
prior to the board taking any action on said items. Total time allocated for public
comment may be limited at the discretion of the board chair.

MEETING AGENDA

A. Call to Order, Roll Call, Establishment of Quorum, and Chair?s Introduction and
Appointment of Nomination Committee Members

B. Public Comment Session for Items Not on the Agenda and Future Agenda Item
Requests
(Note: Individuals may appear before the board to discuss items not on the agenda; however, CSLB?s board
can neither discuss nor take official action on these items at the time of the same meeting (Government
Code sections 11125, 11125.7(a)).

C. Presentation of Certificates of Recognition ? May Include Oral Presentations
Commemorating Board Member Achievements and Service of CSLB Staff

D. Executive
1. Review and Possible Approval of December 10, 2020 and February 4, 2021
Board Meeting Minutes and February 4, 2021 Enforcement and Legislative
Committee Meeting Minutes

2. Registrar?s Report
a. Tentative Board Meeting Schedule
b. Status Update on Contract with Consultant to Study Which CSLB
License Classifications Should Install Battery Energy Storage Systems
c. Annual Accomplishments Report

3. Budgets
a. CSLB Budget Update
b. Statistics Summary

4. Administration and Information Technology Services Overview
a. Review and Discussion on the Administration and Information
Technology 2019-21 Strategic Plan

5. Administration Update Regarding Personnel and Facilities

6. Information Technology Update

E. Enforcement
1. Enforcement Overview
a. Review, Discussion, and Possible Action on the Enforcement 2019-21
Strategic Plan

2. Enforcement Program Update
a. Staff Vacancy Update
b. Expense Reduction Strategy Update
c. Investigation Highlights
d. General Complaint-Handling Statistics

3. Two Proposed Rulemaking Decisions from the Public Utilities Commission (PUC)
for Board Member Review, Discussion, and Possible Support

a. PUC Net Energy Metering Solar Consumer Protection Requirement that
Investor-Owned Utilities Provide CSLB with Consumer Contract
Information

b. PUC Establishment of a Recovery Fund for Net Energy Metering Solar
Consumers

F. Licensing and Testing
1. Licensing Overview
a. Review, Discussion, and Possible Action on the Licensing & Testing
2019-21 Strategic Plan

2. Licensing Program Update
a. Application Processing Statistics
b. Renewal Processing Statistics
c. Fingerprinting/Criminal Background Unit Statistics
d. Experience Verification Statistics
e. Licensing Information Center Statistics
f. Judgment Unit Statistics
g. Examination Administration Unit
h. Examination Development Unit

3. Testing Program Update
a. Examination Administration Unit
b. Examination Development Unit

4. Update on Test Development for New B-2 Residential Remodeling License
Classification

5. Advisory Committee Update on Women in Construction

6. Review, Discussion, and Possible Action to Approve Construction Management
Education Account Advisory Board Membership for July 2021-June 2021 Term

G. Public Affairs
1. Public Affairs Overview
a. Review, Discussion, and Possible Action on Public Affairs 2019-21 Strategic
Plan

2. Public Affairs Program Update
a. Disaster Response
b. Online Highlights
c. Video/Digital Services
d. Social Media Highlights
e. Media Relations Highlights
f. Publications/Graphic Design Highlights
g. Industry/Licensee Outreach Highlights
h. Consumer/Community Outreach Highlights
i. Intranet/Employee Relations

H. Legislation
1. Legislative Overview
a. Review, Discussion, and Possible Action to Amend Legislative 2019-21
Strategic Plan

2. Update on Previously Approved Legislative Proposals
a. SB 216 (Dodd) Contractors: Workers? Compensation Insurance:
Mandatory Coverage
b. AB 246 (Quirk) Contractors: Disciplinary Actions
c. AB 569 (Grayson) Contractors: Civil Penalties: Letters of Admonishment

3. Review, Discussion, and Possible Action on 2021-22 Pending Legislation
a. Bills Related to CSLB?s $500 Minor Work Exemption
i. AB 899 (Cunningham) Contractors: Unlicensed Work: Inflation
Adjustment
ii. SB 304 (Archuleta) Contractors: Exemptions
b. Bills Related to Reducing Barriers to Licensure
i. AB 646 (Low) Department of Consumer Affairs: Boards:
Expunged Convictions
ii. AB 1026 (Smith) Business Licenses: Veterans
iii. AB 1386 (Cunningham) License Fees: Military Partners and
Spouses

c. Bills Related to Other Construction Related Issues
i. AB 484 (Medina) Alarm Company Operators: Advertisements
ii. AB 1124 (Friedman) Solar Energy Systems
iii. AB 1129 (Frazier) Home Inspectors License Law
iv. AB 1136 (Rivas) Property Assessed Clean Energy Program:
Enforcement: Ancillary Relief
v. SB 430 (Borgeas) Small Businesses: Reduction or Waiver of Civil
Penalties for Violation of Regulations or Statutes
vi. SB 772 (Ochoa Bogh) Professions and Vocations: Citations: Minor
Violations

I. Adjournment

Note: In addition to teleconference, the board intends to provide a live webcast of the teleconference meeting. The
webcast can be found at www.cslb.ca.gov or on the board?s YouTube Channel:
https://www.youtube.com/user/ContractorsBoard/. Webcast availability cannot, however, be guaranteed due to
limitations on resources or technical difficulties. The meetings will continue even if the webcast is unavailable.

Note that viewers of the webcast can only view the meeting, not participate. If you wish to participate, you must join
the teleconference itself via the WebEx link above. If participating via teleconference, on day of meeting please
register/join WebEx at least 15-30 minutes early to ensure that you have adequate time to install any required plugins
or apps.

The meetings are accessible to those needing special accommodation. A person who needs a disability-related
accommodation or modification in order to participate in the meetings may make a request by calling (916) 255-4000,
or emailing Natalie.Watmore@cslb.ca.gov, or 9821 Business Park Drive, Sacramento, CA, 95827. Providing your
request at least five business days prior to the meetings will help ensure availability of the requested accommodation.

Instructions for Public Participation in CSLB Teleconference
Meeting
The instructions below are for members of the public who want to participate in CSLB?s
upcoming teleconference meeting, being held via Cisco WebEx. The registration link is
on the meeting agenda. There are two ways for you to participate:
1. With Computer, Tablet, or Smart Phone with WebEx
2. With Telephone, not over WebEx
Instructions for each are outlined below.
Please note: In order to participate with a computer, tablet, or smart phone you may
need to install a software program. If registering before the meeting, please load this on
your computer, tablet, or smart phone at that time. If not, please join at least 15-30
minutes before the meeting starts to give you time to do this.
You also will find specifics on how to offer public comment below.

To Watch Meeting & Participate with Computer, Tablet, or Smart
Phone with WebEx
This option will provide you live ?real time? audio and video of the meeting.

If you are registering in advance of the meeting:
1. Click on the link provided on the meeting agenda. That will take you to the ?Event
Information Page.
2. Click on either of the ?Register? links on that page, highlighted below with red
boxes.

 

On registration page, enter a first and last name, as well as an email address,
and ?submit? (highlighted by red box below).

Please note that the name and email address do not have to be your real
identity. But, the meeting host will use the name you enter to let you know when
it is your turn to speak during the meeting. So, if you use a different name to
identify yourself, be sure to remember that name when you are called upon to
speak.

3. A ?Registration Confirmation? will be sent to the email address you provided. That
confirmation also will link to set up WebEx software on your computer. If you?ve
previously used WebEx on your computer, you should not have to reload the
software.

 

4. If you have a calendar application on your computer, you also should receive a
calendar invitation.

That invitation will also include a link for you to join the meeting directly.

If you want to join within 30 minutes of the meeting?s start time or while the
meeting is in progress:

1. Click on the link provided on the meeting agenda. That will take you to the
event information page.

 

2. Enter a name and email address in ?Join Event Now? section, highlighted
above by red box.

Please note that the name and email address do not have to be your real
identity. But, the meeting host will use the name you enter to let you know
when it is your turn to speak during the meeting. So, if you use a different
name to identify yourself, be sure to remember that name when you are
called upon to speak.

3. Click ?Join Now? (also highlighted above with red box) if you have WebEx
applet installed or ?Join by Browser? if you do not want to load the applet.

4. When joining the meeting, you will choose how you want to get audio. Your
choices are: Through your computer; have WebEx call your phone; or you call
WebEx. The phone numbers and meeting access code are provided on the
meeting agenda.

To Join with Telephone (Not over WebEx)
Call one of the two phone numbers provided on the meeting agenda. Enter the
meeting access code when prompted.

To Offer Public Comment During the Meeting
There will be a public comment section during the meeting. The public also will have
the opportunity to offer comment during each agenda item.
For those listening to phone and not on WebEx
If you want to offer public comment, press *3 on your phone to raise your hand.
You?ll hear the prompt, “You have raised your hand to ask a question. Please wait to
speak until the meeting host calls on you.” If you no longer want to comment, or after
the host calls upon you, press *3 again to lower your hand. You will hear a
message, “You have lowered your hand.?
When the host calls on you to offer your comment, your line will be unmuted, and
you will be able comment. At the end of your comment, or when your allotted time
ends, the line will again be muted. During the meeting, the chair will announce the
time to be allotted for each public comment.
For those on WebEx with Computer, Tablet, or Smart Phone
Throughout the meeting, any members of the public may indicate they would like to
offer comment on a specific agenda item.
Be sure to activate your Q&A feature at the bottom right of your screen.

If you would like to offer public comment on a specific agenda item, send the host a
message at any time during that item stating:
?I would like to make a comment on this item.?
The host will call on the public in the order requests are received. When it is your turn,
the host will announce your name, or the name you indicated when you registered, and
will unmute your line, allowing you to make your public comment.
At the end of your comment, or when your allotted time ends, the line will again be
muted. During the meeting, the chair will announce the time allotted for each public
comment. The host will note this in the chat as well.

Leaving the Meeting
At either the conclusion of the meeting, or anytime you wish to leave, you can do so by
clicking on the red circle with X in it at the bottom of your screen. After confirming, you
will be disconnected from the meeting.

For those calling in on telephone without WebEx, simply hang up.

ADDITIONAL ASSISTANCE
? WebEx Troubleshooting Info
https://help.webex.com/en-us/WBX9000018881/Troubleshooting-Meetings
? WebEx Guide for Setting Up Your Audio
https://help.webex.com/en-us/nt2ig0y/Choose-Your-Audio-and-Video-Settings-
Before-You-Join-a-Webex-Meeting-or-Event-Slow-Channel

Thank you for your interest in participating in a CSLB teleconference meeting.

 

TABLE OF CONTENTS

Table of Contents
Contractors State License Board Meeting
Thursday, March 25, 2021
9:00 a.m. ? 12:00 p.m. (or until the conclusion of business)

A. Call to Order, Roll Call, Establishment of Quorum, and Chair?s Introduction
and Appointment of Nomination Committee Members ……………………………………………….1

B. Public Comment Session for Items Not on the Agenda and
Future Agenda Item Requests …………………………………………………………………………………3

C. Presentation of Certificates of Recognition ? May Include Oral Presentations
Commemorating Board Member Achievements and Service of CSLB Staff ………………. 5

D. Executive ……………………………………………………………………………………………………………..7
1. Review and Possible Approval of December 10, 2020 and
February 4, 2021 Board Meeting Minutes and February 4, 2021
Enforcement and Legislative Committee Meeting Minutes………………………………9

2. Registrar?s Report …………………………………………………………………………………… 45
a. Tentative Board Meeting Schedule
b. Status Update on Contract with Consultant to Study Which CSLB
License Classifications Should Install Battery Energy Storage Systems
c. Annual Accomplishments Report

3. Budgets ………………………………………………………………………………………………… 47
a. CSLB Budget Update
b. Statistics Summary

4. Administration and Information Technology Services Overview …………………… 57
a. Review and Discussion on the Administration and
Information Technology 2019-21 Strategic Plan

5. Administration Update Regarding Personnel and Facilities………………………….. 69

6. Information Technology Update ……………………………………………………………….. 77

E. Enforcement ………………………………………………………………………………………………………. 83
1. Enforcement Overview …………………………………………………………………………….. 85
a. Review, Discussion, and Possible Action on the Enforcement
2019-21 Strategic Plan

2. Enforcement Program Update …………………………………………………………………… 93
a. Staff Vacancy Update
b. Expense Reduction Strategy Update
c. Investigation Highlights
d. General Complaint-Handling Statistics

TABLE OF CONTENTS

3. Two Proposed Rulemaking Decisions from the Public Utilities
Commission (PUC) for Board Member Review, Discussion,
and Possible Support ……………………………………………………………………………… 103

a. PUC Net Energy Metering Solar Consumer Protection
Requirement that Investor-Owned Utilities Provide CSLB
with Consumer Contract Information

b. PUC Establishment of a Recovery Fund for Net Energy
Metering Solar Consumers

F. Licensing and Testing ……………………………………………………………………………………….. 109
1. Licensing Overview ………………………………………………………………………………… 111
a. Review, Discussion, and Possible Action on the Licensing &
Testing 2019-21 Strategic Plan

2. Licensing Program Update ……………………………………………………………………… 119
a. Application Processing Statistics
b. Renewal Processing Statistics
c. Fingerprinting/Criminal Background Unit Statistics
d. Experience Verification Statistics
e. Licensing Information Center Statistics
f. Judgment Unit Statistics
g. Examination Administration Unit
h. Examination Development Unit

3. Testing Program Update …………………………………………………………………………. 135
a. Examination Administration Unit
b. Examination Development Unit

4. Update on Test Development for New B-2 Residential Remodeling
License Classification …………………………………………………………………………….. 141

5. Advisory Committee Update on Women in Construction …………………………….. 145

6. Review, Discussion, and Possible Action to Approve Construction
Management Education Account Advisory Board Membership for
July 2021-June 2021 Term ……………………………………………………………………… 151

G. Public Affairs ……………………………………………………………………………………………………. 155
1. Public Affairs Overview ………………………………………………………………………………… 157
a. Review, Discussion, and Possible Action on Public Affairs
2019-21 Strategic Plan

TABLE OF CONTENTS

2. Public Affairs Program Update ……………………………………………………………………… 165
a. Disaster Response
b. Online Highlights
c. Video/Digital Services
d. Social Media Highlights
e. Media Relations Highlights
f. Publications/Graphic Design Highlights
g. Industry/Licensee Outreach Highlights
h. Consumer/Community Outreach Highlights
i. Intranet/Employee Relations

H. Legislation ……………………………………………………………………………………………………….. 187
1. Legislative Overview ………………………………………………………………………………. 189
a. Review, Discussion, and Possible Action to Amend
Legislative 2019-21 Strategic Plan

2. Update on Previously Approved Legislative Proposals ………………………………. 195
a. SB 216 (Dodd) Contractors: Workers? Compensation Insurance:
Mandatory Coverage
b. AB 246 (Quirk) Contractors: Disciplinary Actions
c. AB 569 (Grayson) Contractors: Civil Penalties:
Letters of Admonishment

3. Review, Discussion, and Possible Action on 2021-22 Pending Legislation …… 201
a. Bills Related to CSLB?s $500 Minor Work Exemption
i. AB 899 (Cunningham) Contractors: Unlicensed Work:
Inflation Adjustment
ii. SB 304 (Archuleta) Contractors: Exemptions
b. Bills Related to Reducing Barriers to Licensure
i. AB 646 (Low) Department of Consumer Affairs:
Boards: Expunged Convictions
ii. AB 1026 (Smith) Business Licenses: Veterans
iii. AB 1386 (Cunningham) License Fees:
Military Partners and Spouses
c. Bills Related to Other Construction Related Issues
i. AB 484 (Medina) Alarm Company Operators: Advertisements
ii. AB 1124 (Friedman) Solar Energy Systems
iii. AB 1129 (Frazier) Home Inspectors License Law
iv. AB 1136 (Rivas) Property Assessed Clean Energy Program:
Enforcement: Ancillary Relief
v. SB 430 (Borgeas) Small Businesses: Reduction or Waiver of
Civil Penalties for Violation of Regulations or Statutes
vi. SB 772 (Ochoa Bogh) Professions and Vocations: Citations:
Minor Violations

I. Adjournment …………………………………………………………………………………………………….. 215

AGENDA ITEM A

Call to Order, Roll Call,
Establishment of Quorum and
Chair?s Introduction

Roll is called by the Board Chair or, in his/her absence, by the Board
Vice Chair or, in his/her absence, by a Board member designated by
the Board Chair.
Eight members constitute a quorum at a CSLB Board meeting, per
Business and Professions Code section 7007.

Board Member Roster
Kevin J. Albanese Susan Granzella
Frank Altamura, Jr. Diana Love
Augie Beltran Michael Mark
Rodney Cobos James Ruane
David De La Torre Johnny Simpson
Miguel Galarza Nancy Springer
Donald Giarratano Mary Teichert

1
2
AGENDA ITEM B

Public Comment Session
– Items Not on the Agenda

(Note: Individuals may appear before the CSLB to discuss items not on the agenda; however, the CSLB can
neither discuss nor take official action on these items at the time of the same meeting
(Government Code sections 11125, 11125.7(a)). Public comments will be taken on agenda items at the time
the item is heard and prior to the CSLB taking any action on said items. Total time allocated for public
comment may be limited at the discretion of the Board Chair.
Board and Committee Meeting Procedures
To maintain fairness and neutrality when performing its adjudicative function, the Board should not receive
any substantive information from a member of the public regarding matters that are currently under or
subject to investigation, or involve a pending administrative or criminal action.

(1) If, during a Board meeting, a person attempts to provide the Board with substantive
information regarding matters that are currently under or subject to investigation or
involve a pending administrative or criminal action, the person shall be advised that the Board
cannot properly consider or hear such substantive information and the person shall be requested
to refrain from making such comments.
(2) If, during a Board meeting, a person wishes to address the Board concerning alleged errors of
procedure or protocol or staff misconduct involving matters that are currently under or subject to
investigation or involve a pending administrative or criminal action:
(a) The Board may designate either its Registrar or a board employee to review whether the
proper procedure or protocol was followed and to report back to the Board once the matter
is no longer pending; or,
(b) If the matter involves complaints against the Registrar, once the matter is final or no longer
pending, the Board may proceed to hear the complaint in accordance with the process and
procedures set forth in Government Code section 11126(a).
(3) If a person becomes disruptive at the Board meeting, the Chair will request that the person leave
the meeting or be removed if the person refuses to cease the disruptive behavior.

3
4
AGENDA ITEM C

Presentation of Certificates
of Recognition ?
May Include Oral Presentations
Commemorating Board Member
Achievements and Service of
CSLB Staff

5
6
AGENDA ITEM D

Executive

7
8
AGENDA ITEM D-1

Review and Possible Approval
of December 10, 2020 and
February 4, 2021 Board Meeting
Minutes and February 4, 2021
Enforcement and Legislative
Committee Meeting Minutes

9
10
BOARD MEETING MINUTES

Board Meeting Minutes

A. CALL TO ORDER, ROLL CALL, ESTABLISHMENT OF QUORUM, AND CHAIR?S
INTRODUCTION

Board Chair David De La Torre called the meeting of the Contractors State License
Board (CSLB) to order at 9:00 a.m., Thursday, December 10, 2020, at the Contractors
State License Board and via teleconference. Chair De La Torre gave an update on the
COVID-19 pandemic and the closing of offices and test centers.

A quorum was established. Board Chair De La Torre led the Board in the Pledge of
Allegiance.

Board Members Present
David De La Torre, Chair Diana Love
Kevin Albanese Michael Mark
Frank Altamura, Jr. Marlo Richardson
Augie Beltran Jim Ruane
Rodney Cobos Johnny Simpson
Miguel Galarza Nancy Springer
Don Giarratano Mary Teichert
Susan Granzella

CSLB Staff Present
David Fogt, Registrar
Tonya Corcoran, Chief Deputy Registrar
Jessie Flores, Deputy Chief of
Enforcement
Claire Goldstene, Supervisor of Public
Affairs
Michael Jamnetski, Chief of Legislation
Phyliz Jones, Executive Staff
Amy Lawrence, Public Affairs Staff
Mike Melliza, Chief of Administration
Justin Paddock, Chief of Licensing
Stacey Paul, Budget Manager
Jason Perez, Chief of Information
Technology

11
BOARD MEETING MINUTES

DCA Staff Present
Jason Hurtado, Legal Counsel
Shelly Jones, WebEx Host

B. PUBLIC COMMENT SESSION FOR ITEMS NOT ON THE AGENDA AND FUTURE
AGENDA ITEM REQUESTS

There was no public comment.

C. PRESENTATION OF CERTIFICATES OF RECOGNITION ? MAY INCLUDE ORAL
PRESENTATIONS COMMEMORATING ACHIEVEMENTS AND SERVICE OF
CSLB STAFF

Amanda Martinez
Chair De La Torre recognized Amanda Martinez, a CSLB Peace Officer, for her work on
the Chiaramonte Construction Management investigation. He added that Martinez also
worked with the CSLB Executives and the labor union representing enforcement
investigators to help convert the Enforcement Representative classification to the
Special Investigator series.

Board member Kevin Albanese thanked Ms. Martinez and the other CSLB Peace
Officers. He briefly mentioned how well she has developed investigative techniques and
working relationships with District Attorney?s Offices.

Jane Kreidler
Chair De La Torre also recognized Jane Kreidler, former CSLB Outreach Coordinator
with the Public Affairs Office. Ms. Kreidler?s nine years of dedication to consumer
protection helped CSLB expand the Senior Scam Stopper program, which provides
valuable information to the public while developing partnerships with state agencies and
legislators. Ms. Krielder has taken a position as the Administrative Manager with the
California Architects Board; CSLB wishes her much success.

Board member Kevin Albanese expressed appreciation for Ms. Kriedler and how well
she conducted the Senior Scam StopperSM seminars.

12
BOARD MEETING MINUTES

D. EXECUTIVE

1. Review and Possible Approval of September 9, 2020 Board Meeting
Minutes and November 4, 2020 Executive, Licensing, Legislative,
Enforcement, and Public Affairs Committee Meeting Minutes

MOTION: To approve the September 9, 2020 Board Meeting Minutes. Augie Beltran
moved; Nancy Springer seconded. The motion carried, 14?0?1.

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer, Mary Teichert

NAY: None

ABSTAIN: Michael Mark

MOTION: To approve the November 4, 2020 Executive, Licensing, Legislative,
Enforcement, and Public Affairs Committee meeting minutes. Augie Beltran moved; Jim
Ruane seconded. The motion carried unanimously, 15?0.

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

2. Registrar?s Report

a. Tentative Board Meeting Schedule

Registrar David Fogt stated Board members will be surveyed for possible dates to
conduct a meeting mid-March 2021, and, if necessary, committee meetings will be held
before the March Board meeting.

b. Status Update on Contract with Consultant to Study Which CSLB
License Classifications Should Install Battery Energy Storage Systems

Registrar Fogt provided an update on battery energy storage systems (BESS)
consultant UC Berkeley. He reported that UC Berkeley requested six months to

13
BOARD MEETING MINUTES

complete the study; the Board has approved this request. The study is expected to
begin in January 2021 and be complete June 2021.

Registrar Fogt mentioned that the timeline for the regulatory rulemaking process is
included in the Board packet. The Board does not know what UC Berkeley will
recommend, and to maintain objectivity of the study, Board staff will not attempt to
influence their recommendation. When the time comes, the Board will decide whether or
not to adopt UC Berkeley?s recommendation, in full or in part. The Board?s legal counsel
has expressed concern that the three-year timeline included in the packet to amend the
Board?s regulations, if that is the board direction, is too long. CSLB will be providing
materials to UC Berkeley, as requested, but the study will be conducted independently
from CSLB staff.

Public Comment:
A member of the public asked if the tentative Board meeting schedule is included in the
packet. Registrar Fogt indicated that the Board members have not yet been surveyed
for their availability for March meeting dates but will be surveyed next week.

3. Review, Discussion, and Possible Action to Amend the Board Member
Administrative Procedure Manual

Chair De La Torre presented the changes made to the Administrative Procedure
Manual at the November 4, 2020 Executive Committee meeting, which are as follows:
the Enforcement Representative classification was replaced with Special Investigator
and an update to the acronym describing the Department of Insurance is now CDI.
Chair De La Torre also presented a proposed amendment on page 93 of the Board
packet that clarifies the process for addressing correspondence received by Board
members. Registrar Fogt and or Chief Deputy Registrar Corcoran will ensure that the
correspondent is contacted on the board members behalf within 24-hours of receipt.

Board Member Comment:
Board member Michael Mark mentioned, as a new member, the Board Member
Administrative Procedure Manual has been very helpful.

MOTION: To approve the Board Member Administrative Procedure Manual. Kevin
Albanese moved; Miguel Galarza seconded. The motion carried unanimously, 15?0.

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

14
BOARD MEETING MINUTES

4. Budgets

a. CSLB Budget Update

Budget Manager Stacey Paul provided an update on the Board?s budget. She reported
for fiscal year (FY) 2020-21 the Board has spent approximately 24 percent of the budget
authority, projecting to spend about the same amount as last year, $66 million, on Board
expenses. Revenue is up about 16.8 percent from the prior year; this is largely due to
the emergency fee increase on renewals implemented in February 2020. This FY
projected revenue is $72 million; the total projected expenses are $72 million, which
includes more than $5 million in mandatory external costs.

There has been a steady increase in donations made to the Construction Management
Education Account (CMEA). The current CMEA account balance is $420,000 and
projected to continue to increase.

Ms. Paul reported in the last couple months there has been a decline in license
applications, likely due primarily to the pandemic and closing of exam test sites;
however, renewals have remained consistent.

Board Member Comment:
Board member Susan Granzella thanked Stacey Paul for her update and providing the
background for the next item.

Public Comment:
Gilbert Collins asked if there is a listing of the grants for the schools. Chief of Licensing
Justin Paddock mentioned the proposed awards are listed on page 290 of the Board
packet.

5. Presentation from CPS HR Consulting on Fee Audit Study and
Recommendations

Board Chair De La Torre provided background on the actions taken to date to address
the budgetary issues. Specifically:

In September 2019, the Board approved seeking emergency regulations to raise
renewal fees and directed staff to hire a consultant to complete a comprehensive fee
study with recommendations for long-term financial stability.

15
BOARD MEETING MINUTES

In December 2019, the Board received emergency approval by the Office of
Administrative Law to raise renewal fees under existing statutory authority $50 for active
licenses, $25 for inactive licenses, and $12 for home improvement salesperson
registrations. CSLB began collecting the fees effective February 2020.

On September 9, 2020, the Board took additional measures to reduce expenditures and
approved a $7.1 million expenditure reduction plan, so CSLB could remain solvent
through the remainder of this fiscal year.

Board Chair De La Torre acknowledged the work of the two-person advisory committee
consisting of Vice Chair Susan Granzella and Board Secretary Mary Teichert, in
reviewing the fee study. He then introduced CPS HR Consulting (CPS) Project Manager
Chris Atkinson to present to the Board.

Chris Atkinson presented an overview of the Fee Study. CPS is a joint powers
government authority, thus only works with government and nonprofit agencies. CSLB
has maintained a structural imbalance since FY 2013-14, mainly due to increased
expenditures outside of CSLB?s control. He clarified the data presented in the
presentation is based on financial information as of June 2020. Since FY 2013-14
expenditures increased from $57 million to $72 million in 2019-20, these expenditures
could increase to $90 million by 2025-26. Revenue for FY 2019-20 is projected at only
$74 million. The increase in expenses is outside of CSLB?s control and primarily due to
salary increases. CPS developed their recommendation with the goal of having a four or
five-month reserve, keeping in compliance with the requirement of Business and
Professions Code section 7138.1 for a six-month reserve cap. The revised statutory
maximum of 25 percent is the recommended increase cap CPS believes CSLB should
be given as it will provide flexibility should CSLB need to increase fees in the future
through the regulatory process. If expenditures continue to increase, the 25 start
herepercent cap will allow for a buffer to increase fees faster than seeking a statutory
change, if necessary. With the current fee structure, the Board?s projected revenue is
approximately $69 million. With the recommended fees, the projected revenue could be
approximately $90 million by FY 2025-26, which is an additional $21 million in revenue.

Board Member Comment:
Board member Susan Granzella asked for elaboration on possible unanticipated
expenses not included in the projection. Chris Atkinson explained that it would be
difficult to project the revenue needed for unanticipated expenses.

a. Review, Discussion, and Possible Action on CPS Fee Audit Study and
Recommendations

Board Member Comment:

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BOARD MEETING MINUTES

Board member Susan Granzella asked for an explanation of the implementation
process should the Fee Study be approved by the Board. Chief of Legislation Mike
Jamnetski stated he will provide an explanation during a later agenda item.

Public Comment:
Gilbert Collins asked if the Board would consider stipends from nonenforcement and
external enforcement budgets to provide a 0.5 percent annual increase for grants to
schools. This question was not within the scope of the fee study or agenda item.

MOTION: To approve the CPS Fee Study. Augie Beltran moved; Susan Granzella
seconded. The motion carried unanimously, 15?0.

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

b. Review, Discussion, and Possible Action on Legislative Proposal to
Implement CPS HR Fee Audit Study and Recommendations

Chief of Legislation Mike Jamnetski reported that with the Board approval of the Fee
Study recommendations, it will be up to CSLB?s Legislative Division to develop a
legislative measure. The proposal can be part of a policy bill or budget trailer bill. If the
proposal is implemented through a policy bill, the proposal can go into effect January
2022, with the new renewal fees collected on March 2022 renewals. If the Board can
get the proposal on a budget trailer bill, the proposal could potentially be implemented
summer of 2021.

MOTION: To approve the legislative proposal to increase statutory fee amounts as
presented by CPS HR Consulting and authorize staff to seek an author. Diana Love
moved; Mary Teichert seconded. The motion carried unanimously, 15?0.

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

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BOARD MEETING MINUTES

6. Administration Update Regarding Personnel and Facilities

Chief of Administration Mike Melliza reported that 145 personnel transactions were
completed in the first quarter of FY 2020-21. Most of the transactions are due to the
transition from the Enforcement Representative series to Special Investigator. The
Board has averaged 48 vacancies this fiscal year. A new location was identified for the
Valencia Office and approved by the Department of Consumer Affairs, CSLB, and the
Department of General Services. Staff will be moving to the new building on December
18, 2020. The following COVID personal protective items have been purchased: masks,
gloves, hand sanitizer, plexiglass sneeze guards, and free-standing hand sanitizer
stations.

7. Information Technology Update

Chief of Information Technology (IT) Jason Perez reported that the online renewal
program for sole owner licenses and home improvement salesperson registrations has
had continued success and processes approximately 4,500 renewals a month. IT staff
are evaluating the policies regarding the signature requirements for renewal
applications and the possibility of only requiring the signature of the qualifier for a
renewal application. After further review and modifications to the application, CSLB will
be able to process online renewals for partnerships, corporations, limited liability
companies, and joint ventures that only have one qualifier. CSLB is expecting to release
the ability to pay citations online by the end of the month. Coding to allow for online
retroactive renewals is scheduled for completion by January 2021.

8. Review, Discussion, and Possible Action to Amend CSLB?s 2019-21
Strategic Plan Objectives

Board Chair De La Torre reported that the strategic plan objectives were covered in
detail during the November 4, 2020 committee meetings, and there are currently no
proposed changes to target dates.

E. ENFORCEMENT

1. Enforcement Program Update

Enforcement Committee Chair Kevin Albanese presented the Enforcement update.
Fifteen Enforcement staff are being redirected to assist with COVID-19 contact tracing;
staff redirection will likely continue until June 2021. Forty-five Enforcement positions are
not available to assist with CSLB-related work because of redirection to contact tracing,
vacancies, and approved leave, primarily for child distance learning. Transitioning to the
Special Investigator series has been beneficial in recruitment efforts, resulting in CSLB

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BOARD MEETING MINUTES

now receiving over 100 applications for Special Investigator vacancies. Attorney
General (AG) expenses are currently averaging $598,000 a month; the Board would like
to decrease this to $580,000. Arbitration billings average $55,000 a month; the Board is
seeking a decrease to $45,000. Industry Expert expenses average $20,000 a month,
exceeding the goal of under $50,000. Staff are using the letter of admonishment (LOA)
for less serious offences that do not include large financial injury. At the June Board
meeting, staff were authorized to refer consumers to small claims court and the license
surety bond for licensees without a history of repeated offenses, and the estimated
financial injury is less than $10,000. This process was implemented on August 1, 2020,
and 100 complaints have been referred. Complaints from September 2020 that were
received, closed, or referred to the field offices were reviewed. Intake and Mediation
Centers (IMCs) received approximately 1,000 complaints, closed 670 license
complaints, and settled 166 of those complaints. Staff analyzed 273 complaints that
were referred for field investigation and confirmed that staff are appropriately using the
complaint prioritization guidelines.

Enforcement Committee Chair Albanese reported that Enforcement staff began using
the permit violation training video with corrective action plans July 1, 2020. The Board
has issued 18 LOAs that include corrective action plans to watch the permit video. Of
the 18, four comply, four are pending compliance, and four did not comply and were
returned to the investigation center to be issued a citation.

Enforcement Committee Chair Albanese highlighted an investigation regarding a
licensee that was renting his license number to an unlicensed contractor. The
unlicensed contractor started work on a home in Oakland, CA, where city planners
found multiple permit violations and halted the project. Unfortunately, the homeowner
had already paid the contractor $35,000. An accusation was filed against the licensee
for renting the license, which led to revocation of the license on August 24, 2020. There
is an active investigation against the unlicensed contractor.

Board Member Comment:
Board member Nancy Springer expressed appreciation for staff?s quick response to her
complaint prioritization statistics request.

Public Comment:
Gilbert Collins asked if the Board would consider a two-percent stipend from
nonenforcement and external enforcement budgets with an 0.5 percent annual increase
to provide grants for schools and local community work boards, or have the topic placed
on the next agenda for discussion. Board Member Albanese said this topic could be
considered for a future agenda.

2. Solar Taskforce Update

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BOARD MEETING MINUTES

Enforcement Committee Chair Kevin Albanese reported that between January 2020 and
September 2020, the Board has received an average of over 100 solar-related
complaints a month, which is a ten percent increase since 2019. Between July 1, 2019
and June 30, 2020, 1,067 solar complaints were received.

F. LICENSING AND TESTING

1. Licensing Program Update

Licensing Committee Chair Jim Ruane reported that application processing units are
understaffed. There is a New Applications Manager starting soon; and as new staff
complete their training, processing times should decrease. Current processing times for
exam and waiver applications are approximately seven weeks; the goal is to bring them
down to four weeks by February 2021. Renewals remain steady; however, the
Renewals and Modifications Manager is retiring at the end of December. The Board is
working to fill behind this vacancy. The Renewals Unit is set to be fully staffed by
February 2021. CSLB is utilizing staff from other units to process renewals. Due to the
Call Center working remotely since November 17, 2020, call wait times now average six
minutes.

2. Testing Program Update

Licensing Committee Chair Jim Ruane reported that exam centers are closed as of
December 7, 2020. The Testing Units were able to reduce the pending exams to 6,000
prior to the current closures. Once exam centers are open, additional testing times will
be available in the evenings. The Berkeley test center did not reopen in June and has
not reopened due to COVID restrictions. Due to the closure, Bay Area exam candidates
will be assigned to the Sacramento center.

Public Comment:
Mark Taylor asked, in light of group travel and group meeting restrictions, if there are
any current discussions to consider outsourcing to a national testing company that will
enable testing for California licenses in remote locations, including out of state. Chief of
Licensing Justin Paddock indicated this is not being considered at this time, but staff are
working with IT to develop remote testing. Staff are able to conduct remote occupational
analyses and are developing a secure method to do remote item writing.

Darrel Cole asked about CSLB?s plan to expedite testing amid COVID-19. He had an
exam scheduled for December 8, 2020, but it was cancelled on December 7. Chief
Paddock replied that once the test centers reopen, pending exams will be rescheduled
in the order they were cancelled, once there is an opening; the December 7, 2020

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BOARD MEETING MINUTES

cancellations will be first, then the December 8, and so on. There will also be additional
exam sessions in the evenings to assist with the backlog. Mr. Cole also asked if a gym
can be rented or can exams be conducted outside. Chief Paddock stated that it would
be difficult outside due to the weather; however, CSLB test centers have been
expanded at several office locations to ensure all candidates maintain six feet of
distance and provide additional testing capacity. If the shutdown is extended beyond a
month, additional changes will be considered to help with the backlog.

Phillip K. asked how many applications were processed as of September and if the
expanding processing times is related directly to staff shortages, working from home, or
both. Chief Paddock indicated it is due to both; working from home can be slightly
slower, but staff shortages also impact processing times. The exam count remains
consistent.

Gilbert Collins asked if any processing consideration is given to applicants from
accredited schools. Chief Paddock answered that completed educational units are
reviewed and can be credited toward experience.

3. Update and Discussion on CSLB Administered Surveys

Licensing Committee Chair Jim Ruane reported that staff are satisfied with the first-year
results of the survey, with 80% of participants being satisfied with services received.
However, the data does not represent all who participate in the application process
because staff are still developing a method to survey applicants whose applications
went void.

4. Update on Test Development for New B-2 Residential Remodeling License
Classification

Licensing Committee Chair Jim Ruane announced that staff are on track to release the
new B-2 classification by August 1, 2021.

5. Review, Discussion, and Possible Action to Grant Construction
Management Education Account Awards

Licensing Committee Chair Jim Ruane reported that four institutions applied for the
Construction Management Education Account (CMEA) grants. Staff recommended
grant reward amounts, which were outlined on the bottom of page 290 of the Board
packet.

MOTION: To direct staff to distribute the 2021 CMEA grant awards according to the
recommendation on page 290 of the Board packet. David De La Torre moved; Nancy
Springer seconded. The motion carried unanimously, 15?0.

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BOARD MEETING MINUTES

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

G. PUBLIC AFFAIRS

1. Public Affairs Program Update

Public Affairs Committee Chair Diana Love reported that former Public Affairs Chief
Rick Lopes has accepted a position with the Department of Real Estate. Chief Lopes
was recognized at the November 4, 2020 Public Affairs Committee meeting. Claire
Goldstene, the Public Affairs Supervisor, will manage the unit until his position is filled.
Chair Love thanked staff for their effort in spreading the word to consumers, licensees,
and applicants of the test center and public counter closures that are in effect for at
least the next three weeks.

CSLB dedicated significant resources to the summer and fall wildfires disaster
response. Due to COVID-19, changes were made to how staff provided the disaster
response. Staff participated in Local Assistance Centers (LAC) in 17 counties across
California. Some LACs had in-person staffing, others had virtual staffing, or a special
phone line was established.

Public Affairs staff have coordinated outreach events through congressional and state
legislature offices, building officials, and chambers of commerce in the affected fire
areas. Public Affairs is continuing their partnership with NextDoor to target outreach
events to specific neighborhoods. Staff are planning for long-term outreach by setting
up rebuilding workshops with local counties and jurisdictions. A contractor rebuilding
workshop is scheduled for January 13, 2021 with the Valley Builders Exchange in Butte
County. CSLB is participating in two multiagency task forces ? one on debris removal
and one centered on housing. Public Affairs conducts a live and interactive online
workshop the first Friday of each month called Get Licensed to Build. Attendance at the
online workshops averages over 200 people. Staff have developed short, quick tip
videos for the website and social media that provide information such as how to use the
?Find my Licensed Contractor? feature on CSLB?s website. Changes are being made to
the 2021 Contractors License Law & Reference Book that are expected to be distributed
in late January 2021. Staff are drafting a fall/winter edition of the California Contractors
Newsletter set for release in January 2021. Staff are continuing to conduct Senior Scam

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BOARD MEETING MINUTES

Stoppers, there were two recent events held via Zoom with Assemblymember Timothy
Greyson and Senator Richard Roth.

H. LEGISLATION

1. Review and Discussion on Board Study to Evaluate Sufficiency of Current
$15,000 Contractor Bond Amount and Possible Action on Study
Recommendations (Business and Professions Code Section 7071.6(e))

Legislative Committee Chair Augie Beltran reported that CSLB completed its Sunset
Review Report during a hearing in 2019. The Sunset bill required the Board conduct a
study regarding the $15,000 contractors license bond to determine if an increase is
necessary or if the current bond amount is sufficient. The study is due to the Legislature
by January 1, 2021. A draft of the study was considered by the Legislative Committee in
November 2020; the Committee authorized staff to present the study to the Board at its
December 2020 meeting. The study determined that the current $15,000 bond is not
sufficient and recommends an increase; however, the mandate did not require the study
specify an increased amount. The study recommends a $25,000 bond that would
provide enhanced public protection without required detailed underwriting of the
contractors. Presenting the study to the Legislature will not in itself result in a statutory
change in the bond; the Legislature would consider introducing a bill that would raise
the bond amount.

Chief of Legislation Mike Jamnetski noted that, in the motion, staff request authorization
to make minor changes to the study before finalizing. There are additionally three minor
changes staff discovered that should be made to the study as follows: clarifying that a
bond can be obtained without a social security number, correcting a typo on
Washington State bonding prerequisites, and making note regarding the $7,500 non-
consumer claimant liability cap.

Public Comment:
Gilbert Collins asked if any increase in bond sufficiency could be mitigated by enhanced
processing times and increased education indoctrination. No response was provided.

MOTION: To authorize staff to make any minor and technical changes to the draft
study, including any changes recommended by the Board, and present a final version of
the study to the Legislature by January 1, 2021, as required by Business and
Professions Code section 7071.6. Kevin Albanese moved; Johnny Simpson seconded.
The motion carried unanimously, 15?0.

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BOARD MEETING MINUTES

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

2. Review, Discussion, and Possible Action on Legislative Proposal that
would Make Illegal Dumping a Cause of Discipline for Licensed Contractors

Chief of Legislation Mike Jamnetski explained this bill will make the illegal dumping of
debris a cause for disciplinary action against a contractor?s license. Activity of this
nature is already illegal under local and state penal codes, but this proposal will help
counties that are having difficulty prosecuting contractors for illegal dumping.

MOTION: To approve Assemblymember Bill Quirk’s request that CSLB sponsor a
legislative measure that would make illegal dumping of construction materials a cause
for discipline for licensed contractors. This is a fully formed motion from the Legislative
Committee. The motion carried unanimously, 15?0.

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

3. Review, Discussion, and Possible Action on Staff Recommendations for
Legislative Proposals to Make Minor, Technical, or Non-Substantive
Changes to the Contractors State License Law (Omnibus Bill, Clean-Up
Request)

Chief of Legislation Mike Jamnetski reported the recommended changes to the omnibus
bill as follows: change the title of ?Enforcement Representative? to ?Special
Investigator,? include the C-22 Asbestos Abatement classification in statute as a class
that can perform asbestos work, provide the correct section number to reference the
letter of admonishment program, and clear up a reference in the Solar Disclosure
Document.

MOTION: To authorize staff to submit to the Senate Business, Professions, and
Economic Development Committee the four technical, non-substantive proposals for
changes to the Contractors State License Law that would:

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BOARD MEETING MINUTES

1. Rename “Enforcement Representatives” as “Special Investigators” or
“Investigators” where appropriate in the law.

2. Add the C-22 Asbestos Abatement contractor license alongside the existing
asbestos certification, which, since 2015, have been the two qualifications that
currently authorize a contractor to engage in asbestos-related work.

3. Correct the reference in the law to the letter of admonishment from Business and
Professions Code section 7099.2 to section 7099.9.

4. Correct the reference in the solar energy system disclosure document law that
states that the three-day right to cancel a contract applies to every consumer,
because there is now a five-day right to cancel for those who are over 65 years
of age.

Nancy Springer moved; Jim Ruane seconded. The motion carried unanimously, 15?0.

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

4. Update on Previously Approved Legislative Proposals

Chief of Legislation Mike Jamnetski reported that the Board is seeking authors for the
current proposals, and he is hopeful with the potential authorship, but he did not provide
potential author names without having confirmation of bill authorship.

I. ADJOURNMENT
Board Chair David De La Torre adjourned the meeting at approximately 11:20 a.m.

David De La Torre, Chair Date

David Fogt, Registrar Date

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26

BOARD MEETING MINUTES

Board Meeting Minutes

A. CALL TO ORDER, ROLL CALL, ESTABLISHMENT OF QUORUM AND CHAIR?S
INTRODUCTION

Board Chair David De La Torre called the meeting of the Contractors State License
Board (CSLB) to order at 9:00 a.m., Thursday, February 4, 2021, via teleconference.

Chair De La Torre welcomed the meeting host and moderator Shelly Jones and
complimented her work with the December 2020 meeting. Chair De La Torre gave an
update on the status of CSLB?s public offices, which have been closed to the public
since Monday, December 7, 2020, pursuant to the Governor?s COVID-19 stay-at-home
order. After the order was recently lifted, CSLB reopened its public offices and resumed
testing applicants for licensure on Monday, February 1, 2021. To accommodate
applicants who had test dates during the closure and help reduce the backlog, exams
have been rescheduled, a third testing session has been added at many test centers,
and seating capacity has been expanded at the Sacramento and Norwalk test centers.

A quorum was established. Chair De La Torre led the Board in the Pledge of Allegiance.

Board Members Present
David De La Torre, Chair Diana Love
Kevin Albanese Michael Mark
Frank Altamura, Jr. Marlo Richardson
Augie Beltran Jim Ruane
Rodney Cobos Johnny Simpson
Miguel Galarza Nancy Springer
Don Giarratano Mary Teichert
Susan Granzella

CSLB Staff Present
David Fogt, Registrar Michael Jamnetski, Chief of Legislation
Tonya Corcoran, Chief Deputy Registrar Phyliz Jones, Executive Staff
Jessie Flores, Deputy Chief of Justin Paddock, Chief of Licensing
Enforcement Missy Vickrey, Chief of Enforcement

Department of Consumer Affairs Staff Present
Jason Hurtado, Legal Counsel

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BOARD MEETING MINUTES

B. PUBLIC COMMENT SESSION FOR ITEMS NOT ON THE AGENDA AND FUTURE
AGENDA ITEM REQUESTS

Public Comment:
Following up on Chair De La Torre?s comments about the reopening of CSLS?s test
centers, Matt Stockton said that he has been waiting for a test date since the middle of
December after beginning the licensure process in August 2020. He said that he
appreciates any efforts by CSLB to speed up the process.

Staff Comment:
Chief of Licensing Justin Paddock provided his direct phone number to Mr. Stockton to
help with the scheduling of his exam.

C. PRESENTATION OF CERTIFICATES OF RECOGNITION ? MAY INCLUDE ORAL
PRESENTATIONS COMMEMORATING ACHIEVEMENTS AND SERVICE OF
CSLB STAFF

Chair De La Torre presented a certificate of recognition to Chief of Enforcement Missy
Vickrey who began her state career in 1985 and has been working with CSLB for 22
years in various Personnel, Administration, and Enforcement positions. Chief Vickrey
has been leading the Enforcement division for three years. Chair De La Torre read the
certificate, which thanked Chief Vickrey for her outstanding professionalism and
contributions toward consumer protection and her strong leadership at CSLB and
wished her well in her retirement and with her future endeavors.

Board Member Comments:
Board member Kevin Albanese said that he has enjoyed working with Chief Vickrey
over the past few years, and she will be missed. He said that she has been a great
advocate for consumers. Board member Albanese wished Chief Vickrey all the best and
thanked her for all she has done for the Board, him personally, and the consumers of
California.

Board member Nancy Springer agreed and said that Chief Vickrey has always been
very helpful, doing necessary homework and research to perform exceptional work. She
thanked Chief Vickrey and wished her luck in her retirement.

Board member Johnny Simpson thanked Chief Vickrey for everything she has done for
the Board and said that it had been a pleasure to work with her. He said that it is great
that she will be retiring, and he wished her well.

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BOARD MEETING MINUTES

Board member Marlo Richardson agreed and wished Chief Vickrey well in her
retirement, saying that it is a great time to retire.

Board member Susan Granzella wished Chief Vickrey the best of luck and said that her
methods, conclusions, and deliveries of enforcement matters always made logical
sense for Board members, both new and experienced. She wished Chief Vickrey the
best in her retirement.

Chair De La Torre thanked Chief Vickrey and said that the Board truly appreciates her
22 years of dedication and efforts in consumer protection.

Chief Vickrey thanked the Board members for their kind words and Registrar David Fogt
and Chief Deputy Registrar Tonya Corcoran for the opportunity to serve as the Chief of
Enforcement. She also thanked the Enforcement division employees, including
managers, supervisors, investigators, Consumer Services Representatives, and
technicians, who are out there every day doing the hard work necessary to make the
Enforcement division what it is today and without whom she could not have done her
job. Chief Vickrey said that she is now looking forward to the next chapter in her life,
spending time with her children and grandchildren and making more happy memories
with them. She said that she is grateful for having had the opportunity.

D. REVIEW, DISCUSSION, AND POSSIBLE ACTION REGARDING PREVIOUSLY
BOARD-APPROVED PROPOSED RULEMAKING TO AMEND TITLE 16,
DIVISION 8, CALIFORNIA CODE OF REGULATIONS, SECTION 811 (FEES)

a. Review, Discussion, and Possible Action Regarding Comments Received
Before and During the 45-Day Comment Period

Chair De La Torre said that this agenda item is to review draft responses to three public
comments received on CSLB?s regulatory rulemaking package that is in its final stages
to make permanent the renewal fee increase recently enacted by emergency regulation.
He said that the Board voted at its September 2019 meeting to amend California Code
of Regulations, Title 16 (16 CCR), Division 8, section 811 to increase renewal fees to
their statutory maximums, specifically increasing the renewal fee for active contractor
licenses from $400 to $450, for inactive contractor licenses from $200 to $225, and for
home improvement salespersons from $83 to $95. Chair De La Torre said that the
Board is required to respond to all comments it receives regarding regulatory proposals;
the public comments and draft responses are included in the meeting packet.

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BOARD MEETING MINUTES

Public Comment:
J.P. Tenore said that there is a problem with unlicensed activity in the gig economy,
using Uber-like websites where no one has a license. He said that he brought this
subject up in September, but the activity continues, and he is asking for the problem to
be addressed.

Board Member Comment:
Chair De La Torre said that this issue is not on the agenda.

Staff Comment:
Registrar Fogt said that he would ask Jessie Flores from the Enforcement division to
look into the matter.

Public Comment:
Mr. Tenore said that he reported it to the Enforcement division, but they said that it is
just a referral service. He said that he, as a low-voltage license holder before he added
the electrical classification, made sure that he could not make a referral to a plumbing
contractor and collect ten percent off the top. Mr. Tenore said that these agencies also
do the advertising and accounting for their clients. He said that he saw a job for
installation of camera equipment at a car dealership that was for $35,000, and no one
had a license. Mr. Tenore said that he reported it to CSLB and was told that that was
just a referral service, but he said that the buyer and provider do not have licenses
either.

Staff Comment:
Deputy Chief of Enforcement Jessie Flores asked Mr. Tenore to reach out to him
directly to discuss the matter offline, and he provided his phone number.

MOTION: To approve the responses, as drafted, to the public comments on the Board?s
proposed rulemaking regarding California Code of Regulations, Title 16, Division 8,
section 811 received on June 10, 2020, and September 28, 2020, and to authorize staff
to make non-substantive changes to the Board?s responses for inclusion in the Final
Statement of Reasons. Kevin Albanese moved; Johnny Simpson seconded. The motion
carried unanimously, 15?0.

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

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BOARD MEETING MINUTES

b. Review, Discussion, and Possible Action Regarding Re-Adoption of
Emergency Regulation Set to Expire on June 9, 2021

Chair De La Torre said that this agenda item is to grant staff authority to seek a re-
adoption, if necessary, of the emergency regulations that the Board previously
authorized and that the Office of Administrative Law approved and must be re-adopted
if the regular rulemaking discussed previously will not be completed by June 8, 2021.
He said that staff expect the regular rulemaking will be completed before the deadline,
but this is a preventative measure in the event there are unexpected delays.

MOTION: To authorize staff to seek re-adoption of the emergency regulations regarding
California Code of Regulations, Title 16, Division 8, section 811 on or before June 8,
2021, if needed. Johnny Simpson moved; Augie Beltran seconded. The motion carried
unanimously, 15?0.

YEA: David De La Torre, Kevin Albanese, Frank Altamura, Augie Beltran,
Rodney Cobos, Miguel Galarza, Don Giarratano, Susan Granzella, Diana Love,
Michael Mark, Marlo Richardson, Jim Ruane, Johnny Simpson, Nancy Springer,
Mary Teichert

NAY: None

E. ADJOURNMENT

Board Chair David De La Torre adjourned the meeting at approximately 9:26 a.m.

David De La Torre, Chair Date

David Fogt, Registrar Date

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32
ENFORCEMENT COMMITTEE MEETING SUMMARY REPORT

Enforcement Committee Meeting Summary Report

A. CALL TO ORDER, ROLL CALL, ESTABLISHMENT OF QUORUM AND CHAIR?S
INTRODUCTION

Enforcement Committee Chair Kevin Albanese called the Enforcement Committee
meeting of the Contractors State License Board (CSLB) to order at 9:30 a.m., on
Thursday February 4, 2021, at the Contractors State License Board and via
teleconference.

Committee Members Present
Kevin Albanese, Chair Marlo Richardson
Don Giarratano Johnny Simpson
Diana Love Nancy Springer
Michael Mark

CSLB Staff Present
David Fogt, Registrar Michael Jamnetski, Chief of Legislation
Tonya Corcoran, Chief Deputy Registrar Phyliz Jones, Executive Staff
Jessie Flores, Deputy Chief of Amy Lawrence, Public Affairs Staff
Enforcement Stacey Paul, Budget Manager

DCA Staff Present
Jason Hurtado, Legal Counsel
Shelly Jones, WebEx Host

B. PUBLIC COMMENT SESSION FOR ITEMS NOT ON THE AGENDA AND FUTURE
AGENDA ITEM REQUESTS

There was no public comment.

C. PRESENTATION FROM REPRESENTATIVES OF THE PUBLIC UTILITY
COMMISSION (PUC) REGARDING TWO PROPOSED RULEMAKING DECISIONS
FOR BOARD MEMBER REVIEW, DISCUSSION, AND POSSIBLE SUPPORT

Public Utility Commissioner Martha Guzman Aceves presented on the PUC proposed
rulemaking decisions. Commissioner Guzman Aceves noted she released a ruling

33
ENFORCEMENT COMMITTEE MEETING

which contains the concepts for the proposed rulemakings. She would like to gauge
CSLB?s feedback and support before releasing formal proposals.

a. PUC Net Energy Metering Solar Consumer Protection Requirement that
Investor-Owned Utilities Provide CSLB with Consumer Contract Information

Commissioner Guzman Aceves mentioned the initial interconnection information did not
include verification that the solar work was being performed by a contractor licensed
through CSLB. The main purpose of this proposal is to gain compliance with existing
laws. Analysis found there is a lack of compliance by solar contractors for the legal
requirements established by CSLB.

The concept for the compliance proposal was released January 2021. Commissioner
Guzman Aceves noted that many of the commissioners would like to focus the
compliance on the solar contractors and less on the Investor-Owned Utilities (IOUs), as
they are not the responsible entity for the work performed. The commissioners
recommended a secure portal where PUC, CSLB, and the Department of Financial
Protection and Innovation (DFPI) can access information needed for compliance. The
essential purpose of the proposal is to give access to the interconnection contracts,
which will be made available through a portal. The solar industry and the IOUs were
concerned with having to review all the interconnection packages in the portal; and how
this could slow solar installation. The proposal suggests additional audits be performed
and a more comprehensive review would pertain to contractors who are placed on a
?Watch List.? The Watch List will contain contractors who have violated the Contractors
State License Laws, including consumer guide requirements, or if they have any
complaints that warrant being placed on the list. The list would be revised quarterly, to
add or remove contractors.

Committee Member Comment:
Committee member Diana Love asked if there is a number of times or a period of time a
contractor can be on the Watch List before a higher-level penalty is established.
Commissioner Guzman Aceves mentioned no penalty will result from being placed on
the watch list, the list will merely result in a full review of an interconnection application,
and possible CSLB notification. If there is disciplinary action taken against the
contractor, it will go through CSLB as the appropriate oversight and regulatory agency.
The watch list is to guide the IOU?s in determining when to perform a more extensive
review of an interconnection application from a contractor.

Staff Comment:
Registrar David Fogt mentioned that when CSLB reviewed 153 interconnection
packages, four primary violations were determined. The violations were due to many
contracts not including a start and stop date which is required by law; Home
Improvement salespersons (HIS) not being registered with the contractor; required

34
ENFORCEMENT COMMITTEE MEETING

notices not provided, and the most concerning violation is when the contractor front
loaded payments by receiving up to 80 percent of the contract price before performing
any work of significance. Registrar Fogt explained that under this proposal the IOUs will
be reviewing the application and that this information is available for CSLB as needed to
take action to correct the contractor?s business practices, bring them into compliance
and prevent future complaints. The Board would like to be proactive in stopping the
problems in the marketplace.

Committee Member Comment:
Committee member Nancy Springer asked if CSLB has the staffing to carry out the
tasks as described in the proposal. Registrar Fogt mentioned the Board has a Solar
Task Force and the goal with the proposal is to reduce the number of consumer
complaints received. Staff does not believe it will be a significant workload.

MOTION: To recommend that the full board support PUC’s Enhanced Auditing Proposal
and Solar Transaction Record proposal. Johnny Simpson moved; Don Giarratano
seconded. The motion carried unanimously, 7?0.

YEA: Kevin Albanese, Don Giarratano, Diana Love, Michael Mark, Marlo
Richardson, Johnny Simpson, Nancy Springer

NAY: None

b. PUC Establishment of a Recovery Fund for Net Energy Metering Solar
Consumers

Commissioner Guzman Aceves presented a proposal for a fund to pay for consumers
who have legacy cases or ongoing matters which have not been remedied. The concept
for the recovery fund proposal was released in September 2020. Through this proposal
PUC will collect a surcharge to generate revenue for the fund, as CSLB provides
guidance on handling claims. Currently, there is an interconnection fee that is paid to
the utility when the solar system is connected to the electrical grid; the proposal will
create a surcharge on new interconnections, and this surcharge will subsidize the
legacy cases.

Commissioner Guzman Aceves noted CSLB has the expertise to determine what is
being misrepresented and what is the consumer harm; as well as determine what
claims should go before this fund if there is no other remedy. The estimated new
interconnection fee would be $12 to generate an annual budget of $1.6 million. Other
parties have expressed concern about the PUC assessing this charge at the
interconnection and that CSLB should assess the surcharge. The discussed options of
collecting this revenue were either a surcharge at interconnection or a surcharge on the

35
ENFORCEMENT COMMITTEE MEETING

CSLB licensing fee. Commissioner Guzman Aceves is proposing a surcharge on the
interconnection fee.

Enforcement Committee Chair Albanese explained the CSLB recovery fund referral
protocol outlined beginning on page 43 of the Board packet.

CSLB will not administer the fund but will refer cases to the fund that will be
administered through a third party. CSLB has determined protocols to refer solar cases
to the recovery fund for payout which is as follows: the license is subject to final
administrative action that includes an order of correction, and the contractor has not
satisfied the financial injury. Legislation would be required to compel the contractor to
reimburse the recovery fund if the financial injury is not established through a formal
disciplinary action. The Board would not have the authority to require a contractor pay
into the recovery fund but before allowing a revoked licensee to regain licensure,
rehabilitation will need to be shown that includes resolving outstanding construction
related financial injuries.

Committee Member Comment:
Committee member Nancy Springer expressed support for the recovery fund.

Committee member Diana Love asked if the board votes to move forward with the
recovery fund proposal through the interconnection fee, will legislation be required.
Commissioner Guzman Aceves mentioned the PUC was challenged on their
assessment of the interconnection fee and there is possibility of being challenged again.
PUC will work to make the fee as legally robust as possible. If the courts determine
PUC does not have authority to implement the surcharge, then the Commission will
work with the Board to go to the Legislature. Ms. Love added she feels if the surcharge
is added onto licensing fees the Board would receive more pushback from licensed
contractors.

Committee member Michael Mark asked if there is already an interconnection fee and if
this fee will be in addition to the current fee; and will consumers be educated about the
implementation of these fees. Commissioner Guzman Aceves mentioned there is
currently a $100 interconnection charge, this new surcharge will be in addition to that
$100 charge. She added that the current solar information package directs consumers
to CSLB if there are solar issues and elaboration on this fee can be added when the
information package is updated.

Enforcement Committee Chair Albanese noted that the proposed $1.6 million restitution
fund t would be a challenge in establishing if the recovery fund surcharge was added to
the licensing fees, given the number of contractors that can perform solar. Registrar
Fogt added that currently B General Building, C-10 Electrical, and C-46 Solar
contractors can install residential solar, it would be difficult to determine how many of

36
ENFORCEMENT COMMITTEE MEETING

the contractors in a classification are actually installing solar, assessing the surcharge
on all the contractors in the classification could cause strong pushback.

Committee member Diana Love asked if the staff recommendation should be modified
since this is to establish a recovery fund but there is a fee that already exists.
Commissioner Guzman Aceves explained the existing $100 interconnection fee goes to
the utilities to cover their cost for accepting the energy generated from the solar system.
PUC will assess an additional surcharge on top of this fee for the recovery fund.

Enforcement Committee Chair Albanese mentioned that the recovery fund is a good
start, and he is open to other options to help provide relief for consumers.

MOTION: To recommend that the full board support PUC’s Recovery Fund for Net
Energy Metering Solar Consumers proposal, with the modified protocol for contractors
subject to complaints when other remedies have been exhausted. Johnny Simpson
moved; Nancy Springer seconded. The motion carried unanimously, 7?0.

YEA: Kevin Albanese, Don Giarratano, Diana Love, Michael Mark, Marlo
Richardson, Johnny Simpson, Nancy Springer

NAY: None

D. ADJOURNMENT

Enforcement Committee Chair Kevin Albanese adjourned the meeting at approximately
10:26 a.m.

37
38
LEGISLATIVE COMMITTEE SUMMARY REPORT

A. CALL TO ORDER, ROLL CALL, ESTABLISHMENT OF A QUORUM AND
CHAIR?S INTRODUCTION

Legislative Committee Chair Agustin ?Augie? Beltran called the February 4, 2021,
meeting of the Contractors State License Board (CSLB) Legislative Committee to
order at 10:30 a.m. via teleconference. A quorum was established.

Committee Members Present
Agustin ?Augie? Beltran, Chair
Frank Altamura, Jr.
Rodney Cobos
Miguel Galarza
Susan Granzella
Jim Ruane

Committee Members Absent
Mary Teichert

CSLB Staff Present
David Fogt, Registrar
Tonya Corcoran, Chief Deputy Registrar
Michael Jamnetski, Chief of Legislation
Phyliz Jones, Executive Staff

Public Visitors
Ernesto Macias, West Coast Arborists

B. PUBLIC COMMENT SESSION FOR ITEMS NOT ON THE AGENDA AND FUTURE
AGENDA ITEM REQUESTS

There were no comments from the public.

C. UPDATE ON PREVIOUSLY APPROVED LEGISLATIVE PROPOSALS

Committee Chair Beltran said that this agenda item is an introduction to legislative
proposals CSLB is sponsoring this year that were approved by the Board at various
public meetings between 2019 and 2020.

39
LEGISLATIVE COMMITTEE SUMMARY REPORT

Legislative Chief Jamnetski said that the proposals relate to three previously
approved measures that will be covered by two legislative bills. He said that the first
bill will address the increase in civil penalties and the additional violations that can
go into letters of admonishment because the measures deal with similar issues and
are located numerically close to each other in statute. Legislative Chief Jamnetski
said that the civil penalty portion will increase civil penalty fees to be consistent with
modern day expenses; these fees have not been increased since the 1990s and
early 2000s. He also said that the letter of admonishment is an opportunity to
provide informational and educational tools to contractors, as opposed to only fining
them. Legislative Chief Jamnetski further said that he has gotten confirmation that
Assembly Member Grayson, a former contractor, will be introducing the bill for these
measures this year.

The second bill Legislative Chief Jamnetski discussed involves the important
statutory fee increase. He said that the Department of Consumer Affairs (DCA)
Division of Legislative Affairs will be taking the lead on this measure because there
are several other boards that need statutory fee increases at this time. Legislative
Chief Jamnetski said that there have been discussions about the appropriate
legislative vehicle for the fee bill, whether it will be a budget trailer bill or a policy bill,
and he will keep the Committee updated about what that vehicle will be when he
learns. He said that he is confident that the measure will be introduced given its
significance for CSLB and the other boards.

Board Member Comment
Board Member Susan Granzella said that it is good to hear that this matter will be
part of a DCA effort, but when it was previously discussed and approved, there was
discussion about an end date or optimum date for when this should be completed.
She asked if the DCA involvement will impact that end date for this effort.

Staff Comment
Legislative Chief Jamnetski said that that is an excellent question, but it does not
impact the end date because whether a budget trailer bill is used or a policy bill, it
will still happen within the same legislative session and will be introduced during this
year?s session.

Board Member Comment
Board Member Susan Granzella said that that is good news, and she congratulated
Legislative Chief Jamnetski on getting an author for a bill on the first two measures.

40
LEGISLATIVE COMMITTEE SUMMARY REPORT

D. REVIEW, DISCUSSION, AND POSSIBLE ACTION ON 2021-22 PENDING
LEGISLATION

a. Assembly Bill (AB) 246 (Quirk) Contractors: Disciplinary Actions

Committee Chair Beltran said that AB 246 would make it a cause for license
discipline for a contractor to violate local or state law related to illegal dumping of
construction materials, and the Board voted to sponsor this measure at its
December 2020 Board meeting.

Board Member Comment
Board Member Granzella asked about the existing law language in the meeting
packet and whether the change to include specific language in Business and
Professions Code (BPC) section 7110 was happening because CSLB was having
difficulty in enforcing the violations without that requirement being specifically
named.

Staff Comment
Legislative Chief Jamnetski agreed and said that the statute being amended by this
measure is a catch-all statute that incorporates violations of laws outside of the
Contractors License Law for which CSLB can take action against a contractor for
violating. He said that CSLB usually relies upon other agencies to take action for
violations that fall outside of CSLB?s jurisdiction, but the measure would be adding
violations of illegal dumping laws to that statutory section and would give the
Registrar authority to act for such violations.

MOTION: That the Legislative Committee recommend to the full Board that it adopt
a Support position on AB 246.

Rodney Cobos moved; Susan Granzella seconded. The motion carried
unanimously, 6-0.

YEA: Augie Beltran; Frank Altamura, Jr.; Rodney Cobos; Miguel Galarza; Susan
Granzella; Jim Ruane.
NAY: None
ABSENT: Mary Teichert

b. SB 216 (Dodd) Contractors: Workers? Compensation Insurance: Mandatory
Coverage

Committee Chair Beltran said that AB 216 would preclude CSLB from accepting
certificates of exemption from workers? compensation insurance from licensed C-8 ?

41
LEGISLATIVE COMMITTEE SUMMARY REPORT

Concrete, C-20 ? HVAC, and D-49 ? Tree Service contractors in its first year and
from all contractors in three years, with the result that all contractors would be
required to have a certificate of workers? compensation insurance on file with CSLB
by 2025. He said that this concept began as a new issue in CSLB?s 2019 Sunset
Review Report to the Legislature.

Committee Chair Beltran explained that CSLB staff and the Board?s Workers?
Compensation Insurance Advisory Committee had multiple meetings with industry
and insurance representatives to identify the license classes subject to the
requirement in the first year. He said that staff then prepared and presented a
research study and a draft legislative proposal for the Board?s review that identified
three classifications for mandatory insurance in the first year and requiring it for all
other classifications by 2025.

Committee Chair Beltran said that the Board approved the proposal at its September
2020 Board Meeting and authorized staff to seek legislative authorship, which was
obtained when Senator Dodd introduced SB 216.

Public Comment
Ernesto Macias, Vice President for Risk Management and Labor Relations for West
Coast Arborists, said that they fully support this item and would love for CSLB to
approve and pass the proposal, which will tighten up the requirements for
contractors who are not providing workers? compensation for their employees and
will, in turn, help employees and their families when those employees get hurt.

MOTION: That the Legislative Committee recommend to the full Board that it adopt
a Support position on AB 216.

Jim Ruane moved; Susan Granzella seconded. The motion carried
unanimously, 6-0.

YEA: Augie Beltran; Frank Altamura, Jr.; Rodney Cobos; Miguel Galarza; Susan
Granzella; Jim Ruane.
NAY: None
ABSENT: Mary Teichert

E. UPDATE AND DISCUSSION ON 2019-21 LEGISLATIVE STRATEGIC PLAN

Committee Chair Beltran asked Legislative Chief Jamnetski to update the
Committee on the Legislative Division?s Strategic Plan Objectives.

Legislative Chief Jamnetski shared the good news that some of the items are nearly
wrapping up, including Objective 3.2 that is being introduced in the workers?

42
LEGISLATIVE COMMITTEE SUMMARY REPORT

compensation insurance bill discussed previously. Regarding Objective 3.4 and the
sufficiency of the qualifier bond, he said that this issue was included in the bond
study was submitted to the Legislature in December of last year where CSLB asked
the Legislature to review the significant issue of whether qualifiers on contractor
licenses are executing their responsibilities over the licenses appropriately and
whether the qualifier bond amount is sufficient. Legislative Chief Jamnetski said that
Objective 3.8 regarding a graduated fee increase for different contractor entities is
being addressed in the proposed fee bill discussed previously. He said that he is
working on the other objectives and will probably have more updates the next time
the Committee meets.

Legislative Chief Jamnetski returned to the question Board Member Granzella had
asked earlier in the meeting about the fee increase proposal (graduated fee bill from
Objective 3.8), saying that the fee increase could be effective in July 2021 (for
license renewals later in 2021) if the measure is part of a budget trailer bill, or it
could be effective in January 2022 (for renewal notices for licenses that expire in
March 2022) if it is part of a policy bill. He said that the effective date is still very
unsure, and implementation would also need to include time for CSLB?s Information
Technology Division to develop the technology to make the fees effective.
Legislative Chief Jamnetski said that the most important part will be getting the bill
through the Legislature.

Board Member Comment
Board Member Granzella said that Legislative Chief Jamnetski?s explanation about
the effective date of the fee bill was helpful, and it sounds like it is still flexible
enough to work.

Board Member Granzella asked about the workers? compensation requirements and
whether only the C-39 ? Roofing contractors were required to carry workers?
compensation. She said that she thought that there was more than just one
classification.

Staff Comment
Legislative Chief Jamnetski said that under existing law, of the 44 license
classifications, only the C-39 ? Roofing contractor is required to have a certificate of
workers? compensation insurance on file with CSLB. He said this proposal would
expand the requirement to three more classifications and then to all contractors by
2025.

Board Member Comment
Board Member Granzella said that that makes it even more important, and she
thanked Legislative Chief Jamnetski for his explanation.

43
LEGISLATIVE COMMITTEE SUMMARY REPORT

F. ADJOURNMENT

Committee Chair Beltran thanked Legislative Chief Jamnetski for his great
presentation and adjourned the Legislative Committee meeting at 10:48 a.m.

44
AGENDA ITEM D-2

Registrar?s Report

a. Tentative Board Meeting Schedule

b. Status Update on Contract with Consultant
to Study Which CSLB License Classifications
Should Install Battery Energy Storage Systems

c. Annual Accomplishments Report

45
46
AGENDA ITEM D-3

Budgets

a. CSLB Budget Update

b. Statistics Summary

47
48
CSLB BUDGET

CSLB Budget Update

Fiscal Year (FY) 2020-21 CSLB Budget, Expenditures, and Revenue
CSLB?s FY 2020-21 authorized final Governor?s Budget is $70 million (plus an additional
$5 million in mandatory external costs = $75 million).
At year-end CSLB projects to spend $66 million in board expenditures, plus the
additional $5 million in mandatory external costs, for a total of $71 million in total
expenditures; revenue is projected at $72 million.

Expenditures
Through January 31, 2021, CSLB spent or encumbered almost $37 million, roughly 53
percent of its FY 2020-21 budget:

FY 2020-21 JANUARY % OF

FINAL 2021 BALANCE BUDGET
EXPENDITURE DESCRIPTION
BUDGET EXPENSES REMAINING
PERSONNEL SERVICES
Salary & Wages (Staff) 26,633,000 13,650,208 12,982,792 48.7%
Board Members 16,000 4,400 11,600 72.5%
Temp Help 800,000 433,458 366,542 45.8%
Exam Proctor 101,000 128,810 -27,810 -27.5%
Overtime 146,000 81,759 64,241 44.0%
Staff Benefits 14,371,000 7,584,264 6,786,736 47.2%
TOTALS, PERSONNEL 42,067,000 21,882,899 20,184,101 48.0%

OPERATING EXPENSES AND EQUIPMENT (OE&E)
Operating Expenses 17,008,000 10,368,924 6,639,076 39.0%
Exams ? Subject Matter Experts 436,000 2,925 433,075 99.3%
Enforcement 11,175,000 5,069,208 6,105,792 54.6%
TOTALS, OE&E 28,619,000 15,441,057 13,177,943 46.0%
TOTALS 70,686,000 37,323,956 33,362,044 47.2%
Scheduled Reimbursements (i.e., fingerprint, public sales) -353,000 -74,342 -278,658
Unscheduled Reimbursements (i.e., invest. cost recovery) -312,336 312,336
GRAND TOTALS 70,333,000 36,937,278 33,395,722 47.5%

Revenue
CSLB received the following revenue through January 31, 2021:

Through Percentage of Change from prior
Revenue Category
01/31/2021 Revenue year (01/31/2020)
Duplicate License/Wall Certificate Fees $67,931 0.2% 0.5%
New License and Application Fees $7,855,061 17.7% -6.7%
License and Registration Renewal Fees $32,110,071 72.3% 16.5%
Delinquent Renewal Fees $3,381,299 7.6% 139.4%
Penalty Assessments $902,081 2.0% -15.0%
Misc. Revenue $76,131 0.2% 0.0%
Total $44,392,574 100.00% 14.5%

49
CSLB BUDGET

Fiscal Year (FY) 2020-21 CSLB Final Budget and Adjustments
? CSLB?s FY 2020-21 budget decreased by $3.3 million, from $73.6 to $70.3
million based on one-time adjustments and reductions: adjustments to salaries
and wages, benefits, and operating expenditures. Wages and benefits
decreased because of the 9.23% employee pay reduction.

? The following chart shows the approved original FY 2020-21 budget (2020
Budget Bill) and the overall budgetary impact of the reductions and adjustments
to CSLB?s final FY 2020-21 budget:

EMPLOYEE EMPLOYEE
FY 2020-21 FY 2020-21
REDUCTION RETIREMENT COMP &
EXPENDITURE DESCRIPTION BUDGET FINAL
(PLP) ADJ BUDGET
ACT BUDGET
ADJ POS ADJ
PERSONNEL SERVICES
Salary & Wages (Staff) 28,268,000 -2,690,000 1,055,000 26,633,000
Board Members 16,000 16,000
Temp Help 800,000 800,000
Exam Proctor 101,000 101,000
Overtime 146,000 146,000
Staff Benefits 15,620,000 -925,000 -631,000 307,000 14,371,000
TOTALS, PERSONNEL 44,951,000 -3,615,000 -631,000 1,362,000 42,067,000

OPERATING EXPENSES & EQUIPMENT
Operating Expenses 17,604,000 -815,000 -102,000 321,000 17,008,000
Exams 436,000 436,000
Enforcement 11,011,000 164,000 11,175,000
TOTALS, OE&E 29,051,000 -815,000 -102,000 485,000 28,619,000
TOTALS 74,002,000 -4,430,000 -733,000 1,847,000 70,686,000
Scheduled Reimbursements -353,000 -353,000
Unscheduled Reimbursements
TOTALS, NET REIMBURSEMENTS 73,649,000 -4,430,000 -733,000 1,847,000 70,333,000

Budget Letter 20-37 Release and Permanent 5% Budget Reduction for Budget
Year 2021-22
In December 2020, Department of Finance (DOF) released Budget Letter (BL) 20-37
which required each Department to recognize savings by taking a five percent (5%)
permanent budget reduction scheduled to begin in budget year (BY) 2021-22. This 5%
cut is in addition to the employee compensation savings already in effect.

At that time, the Board was notified by DCA of the need to identify approximately $1
million in savings. The Board was subsequently notified on January 20, 2021 that after
further deliberations between DCA and DOF, the target 5% reduction was being
reduced due to several exclusions related to the Board?s Budget: Attorney General,
Office of Administrative Hearings, and DCA pro rata costs.

50
CSLB BUDGET

Due to these additional exclusions, the Board?s target reduction was revised to
$550,000. Staff revised the plan and identified the target reduction obtainable through
staffing and facilities cost savings already identified within AB 3087. With the passage of
AB 3087 last year, the Board is now authorized to begin outsourcing exam
administrative statewide to a third-party vendor. The targeted reduction was met by
eliminating five (5) vacant exam administration positions and the permanent closing of
two (2) exam facilities (i.e., Berkeley and San Jose). Currently the plan is pending at
DOF and if approved would reduce our proposed Governor?s Budget for 2021-22.

CSLB FY 2020-21 Expenditure Reduction Plan – Modified
To remain solvent until the fee study concludes and revenues increase, the board
adopted the following modified expenditure reduction plan at its September 9, 2020
meeting for FY 2020-21. The chart below outlines the approved $7.1 million annual
reduction plan, along with identified savings through January 2021:
Licensing and Testing
ANNUAL THRU JAN
ACTION SAVINGS SAVINGS
? Conduct subject matter expert workshops via
WebEx or other technology platform to reduce $250,000 $200,000
travel costs

Executive and Administrative
ACTION
? Maintain 20 vacant positions ($2 million)
? Savings due to the 9.23 percent reduction in $4.5 million $4.3 million
pay to full-time employees ($2.5 million)

? Delay replacing three vehicles in Enforcement $100,000 $100,000
Information Technology
ACTION
Reduce ADA compliance contract from
$250,000 to $50,000, and have CSLB staff $200,000 $200,000

assume more ADA remediation functions
? IT contract and purchases savings $250,000 $90,000
Enforcement
ACTION
? Hold Attorney General?s Office at $7 million for
$1.0 million $850,000
the year (roughly $580,000 monthly)
? Hold the Office of Administrative Hearings at
$1.2 million (roughly $100,000 monthly) $300,000 $0
? Modify processes to reduce arbitration costs
$350,000 $80,000
by 40% (from $900,000 to $550,000)
? Modify procedures to reduce industry expert
costs by 20% (from $750,000 to $600,000) $150,000 $200,000
TOTAL SAVINGS $7.1 million $6.0 million

51
CSLB BUDGET

CSLB Fund Condition
Below is the fund condition for the Contractors? License Fund, which shows the final FY
2019-20 reserve ($627 thousand, substantially less than 1.0 month reserve), along with
the projected reversion amounts for current year (CY) 2020-21 (includes approved
reduction in expenditures) through BY 2021-22:

Final Projected Projected
FY CY BY
(Dollars in thousands) 2019-20 2020-21 2021-22

Beginning Balance (Fund/Savings Account) $7,884 $ 627 $1,741

Revenues and Transfers
Revenue $64,524 $72,180 $73,488

Total Resources (Revenue + Fund/Savings Acct.) $72,408 $72,807 $75,229

Expenditures
Board Expenditures $66,330 $66,000 $73,259
5% Reduction Drill -$552
External Costs $5,451 $5,066 $5,728

Total Expenditures $71,781 $71,066 $78,435

Ending Balance (Fund/Savings Account) $ 627 $1,741 $-3,206
Months in Reserve 0.1 0.3 -0.5
Dollars in Reserve $627 K $1.7 M -$3.2 M

Notes:
1) Board Expenditures include staff pay, benefits, and operating expenses
2) External Costs include statewide pro rata
3) Revenue assumes no growth in new applications or renewals, and only includes increased renewal fees
4) CY Expenditures based on projections which includes $7.1M reduction, and BY 2021-22 expenditures is
Governor?s Budget, with $552K 5% reduction plan.

52
CSLB BUDGET

Construction Management Education Account (CMEA) Account Update

CMEA FY 2021-22 Proposed Budget Change Proposal (BCP)
CSLB submitted a budget change proposal (BCP) for the Construction Management
Education Account (CMEA) to provide CSLB the flexibility to increase or decrease the
grants awarded from the fund based on the contributions received. The Department of
Finance approved the proposal and it is currently going through the Legislative budget
hearings for consideration as part of the FY 2021-22 Budget Act. This annual
augmentation allows CSLB to maximize the amount of grants awarded to educational
institutions.

Construction Management Education Account (CMEA) Fund Condition
Below is the CMEA fund condition, which shows the final FY 2019-20 reserve
($420,000), along with the projected reversion amounts for current year (CY) 2020-21
through BY 2021-22:

Final Projected Projected
FY CY BY
(Dollars in thousands) 2019-20 2020-21 2021-22

Beginning Balance $ 374 $ 420 $ 478
Prior Year Adjustment $0 $0 $0
Adjusted Beginning Balance $ 374 $ 420 $ 478

Revenues and Transfers
Revenue $143 $168 $168
Totals, Resources $ 517 $ 588 $ 646

Expenditures
Disbursements:
Program Expenditures (State Operations) $6 $10 $10
Local Assistance Grant Disbursements $92 $100 $150

Total Expenditures $ 98 $ 110 $ 160

Fund Balance
Reserve for economic uncertainties $ 420 $ 478 $ 486

Months in Reserve 45.8 35.9 36.5
Notes:
1) Projected BY 2021-22 includes increasing grants based on assumed approved CMEA BCP.

53
STATISTICS SUMMARY

Statistics Summary

Applications Received
Month 2017-18 2018-19 2019-20 2020-21
July 2,624 3,478 4,511 3,323
August 3,141 3,761 4,733 3,863
September 3,254 3,418 4,366 3,441
October 3,188 4,550 4,166 4,324
November 2,669 3,736 3,854 3,168
December 2,903 3,682 3,320 2,681
January 3,714 4,232 4,132 3,112
Total 21,493 26,857 29,082 23,912
% Change from Prior FY -17.8%

Original Applications Received (includes exam and waivers)
Month 2017-18 2018-19 2019-20 2020-21
July 1,197 1,454 1,935 1,311
August 1,141 1,815 1,967 1,226
September 1,624 1,595 1,820 1,122
October 1,429 2,182 1,616 1,834
November 1,306 1,763 1,440 1,218
December 1,522 1,697 1,245 926
January 1,990 1,972 1,829 1,099
Total 10,209 12,478 11,852 8,736
% Change from Prior FY -26.3%
% of Apps Rcvd are Original Apps 37.0%

Original Licenses Issued
Month 2017-18 2018-19 2019-20 2020-21
July 1,150 1,394 1,426 1,032
August 1,355 1,616 1,331 1,084
September 1,095 1,377 1,293 1,171
October 986 1,580 1,383 1,257
November 1,334 1,250 1,195 1,119
December 1,170 1,244 1,181 1,115
January 1,170 1,441 1,263 880
Total 8,260 9,902 9,072 7,658
% Change from Prior FY -15.6%
% Licenses Issued of Original Apps Rcvd 88.0%

54
STATISTICS SUMMARY

Licenses Renewed (Peak renewal years notated in red)
Month 2017-18 2018-19 2019-20 2020-21
July 8,153 8,307 11,234 12,460
August 9,283 10,544 9,631 10,396
September 9,534 8,173 9,409 11,507
October 8,805 13,154 7,901 9,252
November 5,651 7,563 6,003 6,843
December 9,651 7,362 7,846 11,087
January 7,593 11,000 9,582 10,271
Total 58,670 66,103 61,606 71,816
% Change from Peak FY 2018-19 8.6%
% Change from non-Peak Prior FY 16.6%

Original HIS Registrations Issued
Month 2017-18 2018-19 2019-20 2020-21
July 302 476 677 596
August 420 422 526 487
September 405 442 634 570
October 495 549 579 594
November 419 415 594 513
December 385 437 519 444
January 468 570 429 523
Total 2,894 3,311 3,958 3,727
% Change from Prior FY -5.8%

HIS Registrations Renewed
Month 2017-18 2018-19 2019-20 2020-21
July 213 328 408 646
August 402 435 497 714
September 302 354 421 646
October 280 461 387 548
November 203 342 212 385
December 434 302 534 385
January 110 381 319 464
Total 1,944 2,603 2,778 3,788
% Change from Prior FY 36.4%

55
STATISTICS SUMMARY

License Population by Status
Status Feb. 1, 2018 Feb. 1, 2019 Feb. 1, 2020 Feb. 1, 2021
Active 225,143 229,938 231,139 229,654
Inactive 56,280 55,310 54,107 52,681
Total 281,423 285,248 285,246 282,335
% Change from Prior FY -1.0%

HIS Registration Population by Status
Status Feb. 1, 2018 Feb. 1, 2019 Feb. 1, 2020 Feb. 1, 2021
Active 17,443 18,446 20,809 22,087
% Change from Prior FY 6.1%

Complaints By Fiscal Year
Complaints 2016-17 2017-18 2018-19 2019-20
Received 18,875 20,674 20,474 18,190
Reopened 971 969 1,124 1,133
Closed 19,390 21,584 21,644 20,272
Pending (As of June 30) 4,734 4,796 4,807 3,898

56
AGENDA ITEM D-4

Administration and Information
Technology Services Overview

a. Review and Discussion on the Administration and
Information Technology 2019-21 Strategic Plan

57
58
ADMINISTRATION OVERVIEW

Administration Overview

The Administration Division at CSLB encompasses a range of duties which are integral
to the efficient operation of the board?s facilities. Administration activities include
budgets, personnel matters, business services, and information technology.

BUDGETS
? Monitor board expenses, revenue, and appropriation balances
? Reconcile year-end financial statements
? Invoice approval
? Contract expenditures approval
? Quarterly enforcement performance measures reports
? Legislative bill fiscal analysis
? Budget drills
? Budget change proposal concept papers
? Budget year workload and revenue
? Budget year equipment schedule
? DCA annual reporting
? IT and testing cost reports
? Performance based budgeting
? Annual enforcement report to the legislature
? Fee studies
? Sunset review statistics
PERSONNEL
? Recruitment and Hiring
? Verification and distribution of pay warrants
? Processing timesheets and leave balances
? Coordination of employee benefit changes
? Consultation on employee performance and discipline
? Coordination of Health and Safety Programs
o State Disability Insurance and Non-Industrial Insurance
o Catastrophic Leave requests
o Employee Assistance Program
o Family Medical Leave Act/California Family Rights Act
o Injury Illness Prevention Program
o Reasonable Accommodation
o Worker?s Compensation
o Ergonomic Evaluations
? Policies
o Workplace Guidelines
o Supervisor Guidelines

59

ADMINISTRATION OVERVIEW

o Telework agreements
o Annual DCA policy acknowledgement forms
? Personnel-related and career development training
? Position Control
? COVID-19 and contact tracing reporting

BUSINESS SERVICES
? Payables
o Procurement of Non-Information Technology related items and services
. Prepare bids and process procurements for all goods including
equipment and service requests in compliance with the Department
of General Services (DGS), Purchasing Authority Manual, the
Department of Consumer Affairs (DCA) and other state rules and
regulations.
. Ensure that Small Businesses and Disabled Veteran Business
Enterprises percentage goals are met
. Prepare justifications for procurement requests
. Prepare annual Schedule 9 documentation to request equipment
o Contracts
. Develop, prepare, and execute a variety of service contract
requests including:
? Interagency Agreements
? Standard Agreements
? Master Service Agreements
? California Multiple Award Schedules
? Request for Bid
? Request for Proposal
? Invitation for Bid

o CalCard
. Ensure all CalCard holders are in compliance with CalCard usage
rules and regulations
o Invoices
. Review, reconcile and process all incoming invoices
o Training
. Monitor and track mandatory CSLB trainings
. Act as the liaison between CSLB and DCA/SOLID
o Travel
. Process, monitor and track all travel advancements and
reimbursements

60

ADMINISTRATION OVERVIEW

o Emergency Preparedness and Planning
. Produce Emergency Preparedness and Evacuation Plan for CSLB
. Maintain, update and implement CSLB?s annual Business
Continuity Plan
. Identify and coordinate emergency trainings (i.e. CPR) for staff to
participate in
. Maintain an accurate emergency team roster
. Direct the activities of the building occupancy during an emergency
. Conduct quarterly emergency preparedness meetings
o Facilities Management
. Oversee CSLB?s Field Offices and Suite locations
? Work with DCA and DGS when renewing, canceling or
modifying lease agreements
? Work with DCA and DGS to identify other locations as
needed for CSLB field offices
? Work with property managers at each CSLB location to
resolve property issues
? Administer security badges to CSLB Staff
? Monitor CSLB?s alarm systems
? Monitor equipment and furniture at each site and request for
replacement items when necessary
o Inventory
. Monitor, track and report CSLB?s property and equipment
. Work with CSLB staff to replace equipment
. Survey surplus equipment according to state rules and regulations
o Records Management
. Maintain physical files in CSLB?s file room
. Maintain and update CSLB?s record retention schedule
. Coordinate confidential destruction of records
. Process file requests from State Records Center and State
Archives
o Fleet Management
. Maintain CSLB?s fleet of state-owned vehicles
. Ensure safety compliance of vehicles and employees
. Ensure all employees have taken their defensive driver course and
have a valid driver?s license on record
. Monitor vehicles that are due for registration, smog and vehicle
maintenance
. Ensure CSLB is in compliance with DGS standards when a vehicle
accident/incident takes place

61

ADMINISTRATION OVERVIEW

. Prepare contracts for vehicle repair and ensure repairs are properly
made
. Track vehicle repair invoices
. Prepare contracts for new vehicles to replace existing fleet
. Prepare necessary paperwork to survey vehicles that have been
replaced

? Mailroom Services
o Mail Processing
. Process different categories of incoming and outgoing mail via the
following methods
? USPS
? Priority overnight
? Certified mail
? FedEx
? Global Logistics Services (GLS)
. Mail licensee renewal notices
. Mail licensee pocket identification cards and wall certificates
? Cashiering Services
o Process all payments submitted to CSLB
. Securely process all payments received
. Resolve any issues with payments
. Securely prepare monies for daily pick-up by DCA
o Logs
. Maintain daily report of collection logs
. Enter all payment activities into TEALE database
? Warehouse Services
o Prepare and receive shipments via (USPS, GLS, and FedEx)
o Inventory
. Maintain an adequate stock of supplies, forms, and brochures
. Request supplies, forms, and brochures when stock needs to be
replenished
o Deliveries
. Deliver supplies to various CSLB units located within headquarters
o Recycle
. Collect paper for recycle
. Destroy confidential documents

? Electronic document conversion services (imaging workflow automation system)

62

ADMINISTRATION OVERVIEW

o Upload documents into CSLB?s Imaging Workflow Automation System
(IWAS) database
. Create images by scanning original paper documents into CSLB?s
workflow for other CSLB units to work from
. Upon request, locate archived files in CSLB?s records and scan and
upload the file into IWAS
? Risk Management
o Develop and submit CSLB?s State Leadership Accountability Act (SLAA)
bi-annual report to the Department of Finance for approval
o Conduct quarterly hazard reports for all CSLB facilities

INFORMATION TECHNOLOGY (IT)

? IT roadmap and strategy development
? Process IT-related equipment purchases
? Network and Infrastructure Services
o Technical Services
. Support and set-up computers, mobile devices, and peripherals
. Software configuration
. Computer hardware issues
o Cloud-Based Services
. E-mail
. File sharing
o Supports mobile workforce deployment
o Support landlines and communication lines
o Maintenance and operation of various systems
. Changes to applications/business logic for Testing
Administration/Development
. Interactive Voice Response (IVR)
. Imaging Workflow Automation System (IWAS)
o Website support
? IT Security
o Virus protection
o Data Security
o Access Control
o Cloud access security broker
? Network Support
o Firewalls
o Routers
o Fiber Optics
o VPN

63

ADMINISTRATION OVERVIEW

? Programming/Business Analytics
o Business process management
. Requirements gathering for system enhancements
. Technical writer for IT system documentation
o Licensing and Enforcement System (TEALE) Operations
. Maintaining database
. Development/Programming of business modernization efforts
. Reports for Licensing, Enforcement and Cashiering
o Production Processing
. License renewals
. Contractor License Certificates
. Licensee Data cards
? Process Public Records Act and Public Data Portal requests

 

64
2019-21 STRATEGIC PLAN ? ADMINISTRATION OBJECTIVES

D2019-21 Strategic Plan ? Administration Objectives

Item 5.1

Description: Evaluate the use of in-house legal counsel to supplement current Board counsel
Target Date: January 2019

Current Status: Completed. In June 2018, Department of Consumer Affairs assigned a second part-
time legal counsel to assist CSLB with Public Record Act requests and subpoena workload.

Item 5.2

Description: Execute a Memorandum of Understanding (MOU) with the Workers? Compensation
Insurance Rating Bureau to provide a program to the Contractors State License Board to track workers?
compensation policies

Target Date: March 2019

Current Status: Completed. Staff met with Workers’ Compensation Insurance Rating Bureau of
California (WCIRB) in April and May 2019; process has been developed to share public workers?
compensation information regarding C-39 Roofing Contractors. Information pertaining to other
classifications is now shared as necessary; a formal MOU is not necessary at this time.

Item 5.3

Description: Provide training on progressive discipline process to assist managers and supervisors in
addressing performance issues

Target Date: May 2019

Current Status: Completed. CSLB managers and supervisors attended a two-day performance
management training provided by DCA in October 2019

Item 5.4

Description: Provide team building and leadership training for managers and supervisors to make the
management team more effective

Target Date: September 2019
Current Status: Completed. On January 23-24, 2019 CSLB managers and supervisors participated in
a two-day leadership training class.

 

65
2019-21 STRATEGIC PLAN UPDATE

2019-21 Strategic Plan ? Administration Objectives

Item 5.5

Description: Research a special investigator series
Target Date: December 2019
Current Status: Completed. A classification study performed by CPS HR Consulting resulted in the
re-classification of existing non-sworn Enforcement Representative I/II to the Special Investigator
classification; sworn Enforcement Representative I/II to Investigator; and the Enforcement Supervisor
I/II to the Supervising Special Investigator classification to oversee both sworn and non-sworn staff.

Item 5.6

Description: Pursue salary differentials in regions with higher living costs
Target Date: December 2019
Current Status: Completed. The CPS HR Consulting Classification study recommends moving to
Special Investigator/Investigator (see objective 5.5) and to not seek salary differentials. Based on
CPS?s recommendation CSLB will not pursue salary differentials at this time.

Item 5.7

Description: Standardize human resource processes to increase efficiency in regard to personnel
matters.

Target Date: July 2021

Current Status: On-schedule. Staff are in the process of creating a supervisory section for CSLB?s
Intranet. Tools such as FAQs and checklists will be uploaded to this section for supervisors to
reference.

Item 5.8

Description: Enhance onboarding and orientation program for new staff, managers and Board
members.

(See Public Affairs objective 4.8)

Target Date: February 2021

Current Status: Onboarding video and online resources on the CSLB Intranet will be completed in
April 2021.

 

 

66
2019-21 STRATEGIC PLAN UPDATE

2019-21 Strategic Plan ? Administration Objectives

Item 5.9

Description: Develop benchmarks for the hiring process in order to extend job offers and onboard new
employees more quickly to avoid losing qualified candidates.
Target Date: March 2020
Current Status: Completed. Staff mapped and documented the workflow of the current recruitment
process to identify processing times and areas for more efficiency.

Item 5.10

Description: Review the budget quarterly to guide the Board on resource allocation.
Target Date: Ongoing
Current Status: Ongoing

 

67
68
AGENDA ITEM D-5

Administration Update
Regarding Personnel and Facilities

69
70
ADMINISTRATION UPDATE

ADMINISTRATION UPDATE

PERSONNEL UNIT

TRANSACTIONS
During the second quarter of fiscal year 2020-21 (October 1-December 31, 2020),
CSLB Personnel staff completed 37 personnel transactions. This included the addition
of five new employees from other state agencies and two employees new to state
service. Within CSLB, 21 employees were promoted and eight transferred to different
units or designations. One student assistant also joined CSLB.

Total Number of Personnel Transactions Per Quarter ? FY 2020-21
Recruitment Type Quarter 1 Quarter 2 Quarter 3 Quarter 4
July-Sept Oct-Dec Jan-March April-June
From other State Agencies 4 5 — —

New to State Service 1 2 — —

Student Assistants 0 1 — —

Retired Annuitants 0 0 — —

Promotions 119 21 — —

Transfers within CSLB 17 8 — —

Training and Development 4 0 — —

Examination Proctors 0 0 — —

Total Per Quarter 145 37 — —

Total Number of Personnel Transactions Per Quarter ? FY 2019-20
Recruitment Type Quarter 1 Quarter 2 Quarter 3 Quarter 4
July-Sept Oct-Dec Jan-March April-June
From other State Agencies 8 2 5 2

New to State Service 2 7 8 1

Student Assistants 2 0 0 1

Retired Annuitants 0 0 0 0

Promotions 15 31 4 5

Transfers within CSLB 3 5 5 2

Training and Development 1 0 1 0

Examination Proctors 3 0 1 2

Total Per Quarter 34 45 24 13

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ADMINISTRATION UPDATE

VACANCIES
During the second quarter of FY 2020-21, CSLB averaged 49 vacancies. The Personnel
unit continuously works with CSLB hiring managers and Department of Consumer
Affairs? (DCA) Office of Human Resources to identify and minimize any delays in
recruitment for key positions.

Average Monthly Vacancies by Fiscal Year
Fiscal Year Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
2020-21 43 50 51 50 47 51 55 — — — — —
2019-20 21 25 31 35 34 34 23 22 24 22 36 40
2018-19 29 33 30 24 22 21 23 22 24 22 22 19
2017-18 44 41 36 33 39 41 36 29 30 31 29 29

CAREER DEVELOPMENT
Personnel staff participated in CSLB?s ?Career Development?Live!? event held in
February 2021. The event was the first in a series of online events launched by the
CSLB Career Development and Mentoring Program Steering Committee. The events
are an opportunity for staff to learn about each of CSLB Divisions such as the role and
function of the division, the types of classifications utilized in the division, potential
career paths, and training opportunities.
During this event, Personnel staff spoke about the types of duties it performs on a
regular basis such as working on recruitments, duty statements, employee benefits,
leave balances, onboarding of new hires, and health and safety issues. The Business
Services units of the Administration Division also spoke of their roles and day to day
duties and career opportunities.

ANNUAL POLICIES AND LEAVE MANAGEMENT
Personnel staff worked with managers and employees in December 2020 on distributing
and collecting the Annual Statement of Leave (ASL) notices. The ASL notices provide
employees an opportunity to review leave balances and request corrections if needed.
In January 2021, Personnel staff worked with employees on management of their leave
balances. Under the DCA Leave Management Policy, employees who have vacation or
annual leave balances above 640 hours, are encouraged to develop plans to reduce
those balances. Personnel staff also worked with program managers in February 2021
to ensure compliance with the annual policy requirements for all employees.

EXAMINATIONS
The majority of examinations are now done online through CalHR at https://jobs.ca.gov/.
Listed below are the classifications with examinations administered by DCA.

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ADMINISTRATION UPDATE

ADMINISTERED BY DCA STATUS DATE
Last exam date: November 2020
Consumer Services Representative
Tentative exam date: May 2021
Last exam date: December 2020
Office Services Supervisor II
Tentative exam date: TBD
Last exam date: January 2021
Supervising Special Investigator I
Tentative exam date: July 2021
Last exam date: November 2020
Supervising Special Investigator II
Tentative exam date: May 2021
March/June
Staff Service Analyst Transfer Exam N/A
September/December

73
ADMINISTRATION UPDATE

ADMINISTRATION UPDATE

BUSINESS SERVICES UNIT

FACILITIES
? Valencia Office ? CSLB, DCA, and the Department of General Services
identified a new location for the Valencia office Construction in the new suite
began in June 2020. Movers arrived on December 17, 2020 to re-locate all office
items, furniture, and equipment to the new Santa Clarita location. The Valencia
staff officially moved into the new suite located at 25360 Magic Mountain
Parkway, Suite 250, Santa Clarita, CA 91355 on December 18, 2020.
Project Completed: December 2020

? Berkeley Office ? CSLB submitted notification to the Department of Toxic
Substances Control that the lease for Fiscal Year (FY) 2020-2021 will not be
extended. CSLB officially vacated the office on January 28, 2021.

CONTRACTS AND PROCUREMENTS

Contracts in Process:
? The California Department of Human Resources (CalHR) contract to conduct
psychological screening services for Peace Officer applicants.
? The California Highway Patrol contract to provide services to CSLB.
? Contract to provide maintenance for CSLB?s seven (7) Uninterrupted Power
Supply (UPS) machines which supplies emergency power in the event of a
power failure.
? Arbitration contract to support CSLB?s arbitration program.
? Translation services to be used by CSLB staff.
? Shredding services for CSLB?s Fresno and Bakersfield field offices.
? Forklift and pallet jack maintenance for CSLB?s warehouse.
? Fire suppression maintenance for CSLB?s headquarters.
? Renewal of West Publishing Corporation, DBA West, A Thomson Reuters
Business (CLEAR) contract for CSLB?s Enforcement and Legislation staff.
? Maintenance contract for CSLB?s trifold and binding machines.

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ADMINISTRATION UPDATE

Procurements in Process:
In light of budget constraints, all purchases continue to be carefully assessed and only
mission critical items are processed.
Executed Contracts/Procurement:
? Lexis Nexis contract for legislative bill tracking and printing the annual California
Contractors License Law & Reference Book. The contract term will run through
December 31, 2022.
? Postage meter for CSLB?s Mailroom was replaced on February 22, 2021.
? Moving company contracts to assist with the Valencia and Berkeley moves.

Training:
Staff developed detailed instructions for employees to enroll and complete a self-paced
Implicit Bias webinar training offered by CalHR.

75
76
AGENDA ITEM D-6

Information Technology Update

77
78
INFORMATION TECHNOLOGY UPDATE

Information Technology Update

Online Renewal Statistics

Online Renewal Transactions
Sole Owner eKiosk HIS
April 1,798 1,498 *
May 3,230 1,510 *
June 3,812 1,570 *
July 3,429 1,485 107
August 2,875 1,252 296
September 2,890 1,214 333
October 2,971 1,071 344
November 2,544 750 271
December 2,891 809 247
January 3,025 1,073 304
February 2,984 1,159 331
Totals 32,449 13,392 2,233

Online Citation Payment
The Information Technology (IT) unit, in conjunction with Enforcement, released the
online citation payment program in January 2021. This allowed licensees and non-
licensees to make penalty assessments online through the CSLB?s website. All
payments are processed in real-time and CSLB?s Licensing and Enforcement
application (Teale) is updated immediately with the new payment information.

Retroactive Renewal
As per AB 2232, effective January 2021, the registrar is required to retroactively
reinstate an expired contractor?s license if a completed license renewal application is
received with appropriate fees within 90 days of the license expiration date. IT
implemented the required changes effective with January 31, 2021 expirations to the
Teale Licensing system to allow for automatic reinstatement.

Unlicensed Activity Website Update
CSLB IT in collaboration with the Enforcement Division, is enhancing the functionality
on how to report unlicensed activity through CSLB?s website using a computer or mobile
device. The new enhancement will include the capability of reporting unlicensed activity
leads directly from CSLB?s home page and will allow consumers and contractors to
submit the PDF along with pictures and documents directly to the SWIFT unit. These

79
INFORMATION TECHNOLOGY UPDATE

enhancements will be available through directly to the SWIFT unit. Enhancement to the
CSLB website will be available April/May 2021.

Information Security and Risk
As required by California Government Code section 11549.3, the State Office of
Information Security (OIS) and the California Military Department (CMD) conducted a
Military assessment of CSLB?s IT Infrastructure in March 2021. IT staff will be debriefed
on the results of the assessment findings in May 2021.
CSLB management and staff will continue to work with DCA, California Department of
Technology, and other state agencies to address all findings. Below is an overview of
the current security efforts, along with the percentage completed.
Security Updates
Remediation Effort Complete
Network access control (NAC) 93%
Phishing awareness (DCA solution in progress) 65%
Intelligent logging 12%
Operating system and software security enhancements 100%
Vulnerability scanning enhancements and integration with intelligent logging 89%
Major firewall software upgrades and security policy enhancements 100%
Remote access-multifactor authentication (DCA solution in progress) 30%
Working group to identify the data processed within its business units and correlate that 0%
data to an accepted level of risk
Firewall security policies reconciliation and tuning 90%
External website assessment 90%
Social media and internet investigation for CSLB data 3%
Internal network vulnerability scanning and remediation, including patching and services 100%
Website security vulnerability remediation 100%
Major endpoint software upgrades and security policy enhancements 85%
Access control-privileged access management (PAM) for system administrators 50%
Cloud/Office365 security enhancements 70%

2021 IT System Enhancements
Created Business As-Is Processes: Car Purchases; Citation Cost Recovery; January 2021
Processes Statement of Issues; Probation Monitoring; Sacramento
Intake and Case Management
Updated e-Process Updated Reciprocity Updates Immigrant; January 2021
Forms

80
INFORMATION TECHNOLOGY UPDATE

Security Implemented Multi-Factor Authentication (MFA) for CSLB IT January 2021
staff to access Microsoft 365
Remote Workforce Deployed an additional 93 new laptops for CSLB staff to March 2021
work remotely.
Remote Workforce Implementation of Cisco Jabber, a unified communication March 2021
for remote workers. Allows remote staff to make and receive
phone calls.

2021 IT Projects
Below is a roadmap and timeline for the IT unit?s 2021 modernization efforts.

 

81
82
AGENDA ITEM E

Enforcement

83
84
AGENDA ITEM E-1

Enforcement Overview

a. Review, Discussion, and Possible Action on
the Enforcement 2019-21 Strategic Plan

85
86
ENFORCEMENT DIVISION OVERVIEW

Enforcement Division Overview
The Enforcement Division provides public protection by enforcing Contractor License
Law requirements. The division provides methods for receiving and processing
consumer complaints, investigating contractors, and providing avenues for consumers
harmed by contractor misconduct to pursue financial redress.

INTAKE AND MEDIATION CENTERS
? Receive and review consumer filed complaints.
? Contact complainants and attempt to mediate and settle qualifying complaints.
? Prepare all initial documentation for complaint processing, including
correspondence.
? Issue Advisory Notices when appropriate.
? Enter information for all complaints received into CSLB database/tracking system
(Teale).

? Identify and forward complaints to an investigative center that require formal
investigation.
INVESTIGATION CENTERS AND SPECIAL INVESTIGATIONS UNIT
? Investigate complaints referred for formal investigation, including conducting
interviews and site visits.
? Schedule and supervise Industry Expert evaluations of subject construction sites as
necessary.
? Prepare and execute search warrants.
? Prepare formal reports documenting investigation findings and recommend closing
actions.
? Prepare and issue Advisory Notices for respondents who have committed minor
violations.
? Prepare preliminary documents for issuance of Letters of Admonishment,
administrative citations, and accusations, as appropriate.
? Refer egregious cases consisting of alleged criminal violations to local prosecutors
for prosecution.
? Testify regarding complaint investigations at formal hearings.

STATEWIDE INVESTIGATIVE FRAUD TEAM
? Conduct random inspection ?sweeps? of construction sites, targeting unlicensed
activity.

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ENFORCEMENT DIVISION OVERVIEW

? Schedule and conduct undercover ?sting? operations at staged construction sites.
? Investigate reported leads regarding unlicensed construction activity.
? Canvas disaster sites and post ?unlicensed activity? warning signs.
? Prepare formal reports documenting investigation findings and recommend closing
actions.
? Prepare and issue Advisory Notices, Stop Orders, and/or administrative citations to
respondents who have committed violations.
? Refer cases to local prosecutors for criminal prosecution, when appropriate.
? Testify regarding complaint investigations at formal hearings, as required.
? Partner with allied agencies in the Joint Enforcement Strike Force and the Labor
Enforcement Task Force.

DISCIPLINARY/ENFORCEMENT SERVICES
? Review all complaints referred for formal disciplinary action.
? Prepare documentation required for imposing formal disciplinary action, including
accusations and administrative citations.
? Conduct Informal Citation Conferences, upon request, for contested citations.
? Coordinate administrative hearings and Attorney General representation for
appealed accusations and citations.
? Coordinate the collection of citation administrative civil penalty assessments and
victim restitution and take follow-up action for non-payment.
? Manage CSLB?s Mandatory and Voluntary Arbitration Programs.
? Investigate subsequent arrest reports involving licensees received from the
Department of Justice and take appropriate corrective action.

QUALITY ASSURANCE UNIT
? Prepare division-specific documents and reports for the Chief of Enforcement.
? Prepare Letters of Admonishment for qualifying violations identified through field
investigation.
? Conduct forensic financial audits and field case reviews.
? Coordinate solar enforcement program and assist Joint Agency Solar Task Force.
? Coordinate/track CSLB disaster response activities.
? Conduct peace officer background investigations.

88
ENFORCEMENT STRATEGIC PLAN UPDATE

2019-21 Strategic Plan ? Enforcement Objectives

Item 2.1
Description: Formalize a disaster response program for greater efficiencies and to improve response
time. (See Public Affairs objective 4.2)
Target Date: June 2019

Current Status: Completed. Enforcement continues to collaborate with PAO, distributing materials
while staffing Local Assistance Centers (LACs) and placing signs throughout wildfire disasters areas.

Item 2.2

Description: Educate the public about the complaint and investigative processes, as well as available
resources for financial redress.

Target Date: June 2019

Current Status: Ongoing. The automated contact letter sent to consumers immediately upon the
filing of a complaint was updated in June 2019. Currently partnering with PAO to develop a video
aimed to educate consumers on how to file a complaint.

Item 2.3

Description: In partnership with Public Affairs, develop and implement a plan to identify opportunities
to increase publicity concerning enforcement actions, including relaunch of CSLB?s Most Wanted
feature. (See Public Affairs objective 4.4)

Target Date: Develop: June 2019, Implement: January 2020

Current Status: In partnership with PAO, developed a plan to identify investigative highlights for
publicity efforts. Relaunched CSLB?s Most Wanted feature and added two new suspects; both suspects
have been arrested. As an additional outreach measure, enforcement supervisors are encouraged to
share complaint handling highlights with PAO for potential distribution as a press release.

Item 2.4

Description: Leverage social media to identify potential workers? compensation violations and
unlicensed contracting.

Target Date: Ongoing

Current Status: During the pandemic stay at home order, SWIFT staff increased utilization of
Craigslist, Facebook and NextDoor to identify individuals advertising as unlicensed contractors as well
as contractors that had a workers? compensation exemption on file but appeared to have employees.

2019-21 Strategic Plan ? Enforcement Objectives

REV 2/26/21

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ENFORCEMENT STRATEGIC PLAN UPDATE

Item 2.5
Description: Develop a program to improve complaint response by setting priorities and recognizing
staff achievements
Target Date: January 2020

Current Status: In May 2019, developed updated complaint prioritization guidelines. At the beginning
of the pandemic, supervisors began submitting weekly reports highlighting staff achievements. The
board chair will be acknowledging enforcement staff at future board meetings for their exceptional
contributions.

Item 2.6

Description: In collaboration with the Public Affairs Office and Licensing division, create online courses
and content to educate licensees. (See Public Affairs objective 4.10 and Licensing objective 1.9)
Target Date: December 2021
Current Status: Developed an online building permit compliance video for licensees who fail to
comply with local building department permit requirements. In the planning stages of development of a
webinar or video to educate contractors and home improvement salespersons about registration and
home improvement contract requirements.

Item 2.7

Description: Provide training opportunities to improve morale and staff knowledge.

Target Date: Ongoing
Current Status: Conducted leadership training for all Enforcement supervisors. Conducted training for
Special Investigators about administrative and criminal evidence requirements and due process appeal
rights. Conducted training for supervisors specific to supporting violations for aiding and abetting
unlicensed practice, contracting with an unlicensed person, and acting as a contractor under
unlicensed name or personnel. CalOSHA provided field staff Covid-19 safety training. CSLB?s attorney
general liaisons led training on how to conduct a virtual interview that will be admissible in court.

Item 2.8

Description: Prioritize proactive investigation of license requirements to protect the public and
licensed contractors by removing unlicensed contractors from the marketplace.

Target Date: Ongoing

Current Status: Staff continue to have an active presence in declared disaster areas posting
consumer awareness signs, and with the reopening of CSLB offices SWIFT staff have resumed
responding to leads, partnering with local law enforcement and other state agencies, and undercover
sting operations have been scheduled.

REV 2/26/21

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ENFORCEMENT STRATEGIC PLAN UPDATE

2019-21 Strategic Plan ? Enforcement Objectives

Item 2.9

Description: Attend job fairs to promote employment opportunities at CSLB.

Target Date: Ongoing

Current Status: CSLB staff attended a two-day job fair at Sacramento State University in September
2019 and February 2020 to promote both open CSLB vacancies as well as the path to licensure. CSLB
is now partnering with the Los Angeles Urban League and the JTM Academy to provide information
about the contracting field, the licensing process, and CSLB to members of underserved communities.
Workshops were held on January 16 and February 27, 2021; and additional workshops will be
conducted in the future.

REV 2/26/21

91
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AGENDA ITEM E-2

Enforcement Program Update

a. Staff Vacancy Update

b. Expense Reduction Strategy Update

c. Investigation Highlights

d. General Complaint-Handling Statistics

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NFORCEMENT ROGRAM PDATE
E P U

VACANCY UPDATE

As of November 1, 2020, 26 Enforcement positions were vacant out of the 228
authorized. The vacancies have resulted from staff retirements and separations, and the
need to delay hiring to comply with the June 5, 2020 board-adopted expense reduction
plan. In addition, 15 Enforcement staff continue to be redirected to assist counties with
COVID-19 contact tracing.

EXPENSE REDUCTION STRATEGY UPDATE

Expenditure Cost Reductions Overview
At its June 5, 2020 meeting, the board voted to approve expenditure cost reductions of
$7.1 million during the fiscal year 2020-2021. The following is a list of proposals and
status updates on Enforcement expenditure cost reductions from July 1, 2020 through
January 31, 2021

? Holding Attorney General?s Office (AG) expenses to $7 million (roughly $580,000
monthly). AG expenditures are currently averaging $540,000 per month.
? Holding Office of Administrative Hearings (OAH) to $1.2 million (roughly
$100,000 monthly). OAH expenditures are currently averaging $120,000 per
month.
? Modifying processes to reduce arbitration costs by 40 percent (from $900,000 to
$550,000). The goal is to spend $45,000 per month. Arbitration billings are
currently averaging $48,000 per month.
? Modifying procedures to reduce expenditures for industry expert consultants by
20 percent annually (from $750,000 to $600,000). The goal is to keep Industry
Expert expenses at less than $50,000 per month. Industry Expert expenditures
are currently averaging $15,000 per month.

Enforcement Staff have implemented the following strategies to improve legal action
effectiveness and reduce costs.

Attorney General and Office of Administrative Hearing Cost Reduction

As noted above, in compliance with the expense reduction plan, monthly AG expenses
have been reduced to approximately $580,000 per month.

To work within budget, the Enforcement Division continues to increase the issuance of
letters of admonishment (LOA) to reduce administrative citations for less serious
standalone offenses that do not include a financial injury. Between January 1, 2020 and
January 31, 2021, CSLB issued 410 LOAs, and 264 fewer administrative citations
compared to January 2019 through January 31, 2021.

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Issuing LOAs allows CSLB to hold informal office conferences with licensees, rather
than incurring the costs of AG representation for a formal citation and possible appeal
hearing before an administrative law judge. Informal office conferences can also be held
more quickly than a formal appeal hearing as they are scheduled and conducted by
CSLB enforcement staff.
The Citation Enforcement Section conducted 336 informal citation conferences between
January 1, 2020 and January 31, 2021. Of the 336 conducted conferences, 286 ended
with a successful settlement.

Referral of Non-egregious Complaints to Alternate Dispute Resolution Update
In 2020, CSLB received nearly 2,200 (~16%) fewer consumer-filed complaints than in
2019 Consumer Services Representatives (CSRs) assigned to one of two Intake and
Mediation Centers attempt to mediate licensee complaint resolutions within 60-90 days
of receipt. However, not every licensee complaint can be successfully mediated, and
some complaints are primarily civil/financial and do not include repeated acts or
possible violations of contractors? state license law.
At the June 5, 2020 board meeting, a process change was adopted to refer consumers
to small claims court and the license surety bond when the licensee does not have a
history of repeated offenses. This process change is hereafter referred to as ?Alternate
Dispute Resolution.?

Consumer Service Representatives in both Intake and Mediation Centers (IMC) began
implementing this procedure on August 17, 2020. However, Enforcement suspended
the Alternative Dispute Resolution program February 2021, because of consumer
dissatisfaction with being referred to small claims court and a nearly 16% decrease in
incoming consumer-filed complaints deemed it to not be necessary.

INVESTIGATION HIGHLIGHTS

The over 200 employees of CSLB?s Enforcement division process, settle, and
investigate construction-related complaints received by CSLB. Consumer Services
Representatives (CSRs) from both Intake and Mediation Centers receive, process, and
attempt to settle most incoming complaints when appropriate. If settlement efforts are
unsuccessful, or if a violation of state contractors? license law is suspected, the
complaints are routed to one of the division?s 10 Investigative Centers. A CSLB
investigator then begins a full investigation and decides if any enforcement action is
necessary. Additionally, investigators in the division?s three Statewide Investigation
Fraud Teams (SWIFT) proactively enforce Contractors License Law through undercover
stings and enforcement sweeps in the field. A few of the recent activities and
investigations by the employees of these units are highlighted below.

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ENFORCEMENT PROGRAM UPDATE

Successful Mediation Leads to Satisfied Consumers and Contractors

IMC staff take great pride in their ability to mediate a resolution to consumer-filed
complaints. January 1, 2020 through January 31, 2021, CSRs were able to recover over
$21 million in savings to the public. The following are two examples of successful
complaint mediation.

? A CSR in the Sacramento IMC was able to mediate a complaint involving a
Scotts Valley consumer who hired a contractor to build a private showroom for
collectable cars in the amount of $1,500,000.00.
? The consumer stated that there were extensive delays and plans were not
followed creating problems with the roof access, and insulation and electrical
work was not performed to code requirements. Initially the consumer was
hesitant to allow the contractor to return to correct the work. The CSR was able
to mediate a resolution in which the contractor was permitted to return to correct
and complete the project. The contractor agreed to pay the consumer
$184,901.00, should the work not be satisfactory completed.

? In 2020, a Los Angeles homeowner entered into a written contract with a contractor
to remodel their patio deck and replace their roof for $10,000. The work was
completed but not without issues. The roof leaked due to an inadequate slope and
reuse of old fasteners, and the paint began peeling. As a result, the homeowner
filed a complaint with CSLB. A CSR in the Norwalk IMC successfully negotiated a
full refund to the consumer. The case was closed as settled with an Advisory Notice
for contract violations that included an excessive down payment.

License Revocation Upheld for 20 Reasons

On November 9, 2020, an Administrative Law Judge (ALJ) upheld the license
revocation of James Sims, dba Orion Remodeling, based on three separate consumer
complaints investigated by CSLB?s Special Investigations Unit:

1) In October 2017, an unregistered salesman for Orion sold an elderly Sunnyvale
couple a $1,000 inspection of their above-ground pool. The inspection ?found?
problems, and the salesperson eventually talked the victims into a new in-ground pool,
a rebuilt sunroom, and other home improvement projects. The total contract price rose
to $164,372, and the homeowners eventually paid Orion $230,100. Orion did not have
the required swimming pool classification and did not obtain the necessary permits.
Moreover, much of the work was substandard, and the cost to correct the work was
estimated at $50,395.

2) In September 2017, the same unregistered salesman executed a contract between
Orion and two elderly homeowners in Santa Clara for $115,000 to remodel their kitchen.
The victims were subsequently talked into additional work, for a total contract price of

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$248,250; and they paid $206,704, before stopping the project due to poor
workmanship. The homeowners hired a different contractor to complete and correct the
work at a cost of $33,976.

3) In May 2018, an 89-year-old Campbell resident hired Orion to complete $17,500 of
landscaping improvements. The homeowner filed a complaint with CSLB for poor
workmanship, and the investigation estimated the cost to correct Orion?s work was
$10,500.

Based on CSLB?s investigations, the ALJ agreed with all 20 causes for discipline
against Sims and Orion. The ALJ? proposed decision was to stay the revocation of the
license if Sims paid $157,401 in restitution to the victims, and an additional $21,728 to
CSLB for reimbursement of the investigation costs. Criminal charges against both Sims
and the salesman have been filed by the Santa Clara County District Attorney, and the
criminal cases are pending.

Civil Justice Brought Against an Uncivil Solar Contractor

On January 20, 2021, CSLB was acknowledged as an invaluable partner by the Los
Angeles City Attorney?s Office for their ?amazing and tireless? work on an unfair
business practice case (Business and Professions Code 17200 & 17500) against Eco
Solar Home Improvement, an unlicensed entity. Through the course of the investigation,
it was determined Max Hernandez, a licensee, was involved in aiding and abetting Eco
Solar Home Improvement and unregistered salespersons, resulting in extreme financial
harm to consumers.

A settlement in the amount of $150,000 was obtained against Hernandez, a now
revoked licensee, and the LA City Attorney?s Office prevailed on their Motion for
Summary Judgement against defendants Jose Nelson Solis, Henry Solis, and Edduy
Mercedes Pena.

Jose Nelson Solis was never a licensed contractor, but utilized the license issued to
Hernandez to enter into residential solar contracts and become registered with Property
Assed Clean Energy (PACE) lenders. Among other violations, Solis was found to have
diverted funds and published misleading advertisements leading consumers to believe
that there was no down payment to contract with Eco Solar Home Improvement.

Both Henry Solis and Edduy Pena were unregistered Home Improvement Salespeople
(HIS) that were found to have misrepresented the terms of the residential solar
contracts and fraudulently obtained PACE funding on behalf of the homeowner. Solis
and Pena employed tactics to obtain PACE funding on behalf of an unsuspecting
homeowner including creating false email accounts and utilizing consumers personal
information to apply for funding without the consumers knowledge that resulted in
property liens.

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ENFORCEMENT PROGRAM UPDATE

The motion further requests that restitution in the amount of $3,054,996.63 be ordered
to restore any person in interest any money or property which may have been acquired
through the unfair dealings of Eco Solar Home Improvement. Additionally, the LA City
Attorney?s Office is seeking $4,500,000 in civil penalties. While the hearing to address
the above remedies will not be conducted until January 5, 2022, the LA City Attorney?s
Office was able to procure a temporary restraining order, a preliminary injunction, and
froze financial assets.

Statistical Overview?Enforcement

General Fiscal Year Complaint Handling Statistics (January 2020 – January
2021)

Investigations Initiated & Complaints Received
? CSLB initiated 16,660 investigations during CY 2020: 3,455 fewer than the same
timeframe in 2019.

? For January 2020-January 2021, CSLB?s Intake and Mediation Centers received
an average of 949 complaints per month. This is down from a monthly average of
1142 (~ 17%) in comparison to January 2019 ? January 2020.

Pending Investigations
? With current staffing levels, the optimum maximum Enforcement division
caseload is 4,445 pending complaints. As of January 2021, the pending caseload
was 3,257.

Special Investigator Production Goals
? For January 2020- January 2021 the weighted monthly Investigative Center
closing average has been reduced from 10 completed investigations to eight
because of the 16 hours of leave each employee was granted in exchange for
reduction in salary. During this reporting period Special Investigators (SI) are
achieving the closing average of eight.

Complaint-Handling Cycle Time
The board?s goal is to appropriately disposition all but 100 complaints within 270 days of
receipt. As of February 2021, 105 of the 3,257 open complaints (3%) exceeded 270
days in age.

Restitution to Financially Injured Persons
? CSLB continues to assist consumers and help licensees resolve non-egregious
consumer complaints. January 2020- January 2021 complaint negotiation efforts
by the IMC and Investigative Centers resulted in more than $25 million in
restitution to financially injured parties.

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ENFORCEMENT PROGRAM UPDATE

Investigative Center Legal Actions
? From January 2020 – January 2021, the Investigative Centers referred 30
percent, or 495, of the 1,629 legal action investigations for criminal prosecution.

Case Management Activities (January 2020- January 2021)

? Arbitration
. 725 cases initiated, resulting in over $2.7 million in restitution to injured
parties.
. 55 licenses revoked for non-compliance.

? Citations
. 1,269 citations issued (706 licensee, 563 non-licensed)
. 558 citations appealed (357 licensee, 201 non-licensed)
. 914 citations complied with (593 licensee, 321 non-licensed)

? Civil Penalties Collected
. Licensee Citation Civil Penalties
. Informal settlement conferences conducted – 189
. Civil penalties collected – $1,225,903
. Restitution – $1,045,710

. Non-Licensee Citation Civil Penalties
. Informal settlement conferences conducted – 147
. Civil penalties collected – $399,427

? Accusations
. Accusations filed – 255
. License revocations – 266
. License probations – 119
. Restitution paid to injured parties – $361,756.
. Cost recovery collected – $571,403

STATEWIDE INVESTIGATIVE FRAUD TEAM

CSLB?s Statewide Investigative Fraud Team (SWIFT) is comprised of Special
Investigators (SI?s) who enforce license and workers? compensation insurance
requirements at active jobsites, respond to leads, and conduct enforcement sweeps and
undercover sting operations targeting unlicensed persons.

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ENFORCEMENT PROGRAM UPDATE

From January 1, 2020 to January 31, 2021, SWIFT conducted 16 sting operations,
participated in 63 sweep days, and responded to 740 leads. SWIFT closed 3,201 cases
because of undercover stings, sweeps, and leads; of those cases, 784 resulted in an
administrative or criminal legal action as well as the issuance of 1,431 advisory notices
for minor violations.

District Attorney Referrals
From January 1, 2020 to January 31, 2021, SWIFT referred 297 cases to local district
attorneys? offices for criminal prosecution ? 256 for contracting without a license and 41
against licensees, primarily for failure to secure workers? compensation insurance.

Administrative Actions
From January 1, 2020 to January 31, 2021, SWIFT issued 398 licensee and non-
licensee citations, issued 84 Letters of Admonishment, filed five accusations, and
assessed $324,550 in non-licensee citation civil penalties. Administrative violations
include working out of classification, working under a suspended or expired license,
failing to obtain permits, and other license law violations that do not warrant a criminal
referral.

Stop Orders
A Stop Order is a legal demand to cease all employee labor at any jobsite due to failure to
secure workers? compensation insurance for workers until an appropriate policy is
obtained. Failure of a contractor to comply with a Stop Order is a misdemeanor criminal
offense, punishable by up to 60 days in county jail and/or a fine of up to $10,000. From
January 1, 2020 to January 31, 2021, SWIFT issued 95 Stop Orders to licensed and
unlicensed individuals for using employee labor without having a valid workers?
compensation policy.

Outstanding Tax and State Agency Liability Suspensions

CSLB can suspend a license if the licensee is delinquent in paying outstanding liabilities
owed to CSLB or other state agencies. The table below summarizes liabilities owed to
state agencies that were collected or resolved to avoid a license suspension or to
reinstate a suspended license.

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ENFORCEMENT PROGRAM UPDATE

Amounts Collected or Resolved

2018 2019 2020 2021
(through January 31)
CSLB $138,182 $114,880 $139,775 $4,800
EDD $12,912,299 $15,091,585 $10,372,682 $103,718
DIR-Cal/OSHA $2,085,120 $3,270,360 $1,031,736 $8,075
DIR-DLSE $1,315,519 $1,423,337 $2,726,391 $0
FTB $7,491,602 $6,490,225 $4,211,003 $61,651
Totals $23,942,722 $26,390,386 $18,481,587 $178,244

Labor Enforcement Task Force
The Labor Enforcement Task Force (LETF) is comprised of investigators from CSLB,
the Department of Industrial Relations? (DIR) Division of Labor Standards and
Enforcement (DLSE) and Division of Occupational Health and Safety (Cal/OSHA), as
well as the Employment Development Department (EDD). LETF combats the
underground economy in California and aims to ensure that workers receive proper
payment of wages and are provided a safe work environment.

Below are LETF statistics for January 1, 2020 – January 31, 2021:

CATEGORY RESULT
Number of Contractors Inspected 54
Number of Contractors Out of Compliance 51
Percentage of Contractors Out of Compliance 94%
Total Initial Assessments $260,146

Note: No LETF inspections were suspended due to COVID March 2020 and therefore results are the same as
previously reported in December 2020. Additionally, the results reflect joint LETF inspections with Cal/OSHA,
CSLB, DLSE & EDD. Total initial assessments reflect the amount assessed by Cal/OSHA and DLSE at the time of
the inspection. These amounts are subject to change.

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AGENDA ITEM E-3

Two Proposed Rulemaking Decisions
from the Public Utilities Commission
(PUC) for Board Member Review,
Discussion, and Possible Support

a. PUC Net Energy Metering Solar Consumer
Protection Requirement that Investor-Owned
Utilities Provide CSLB with Consumer Contract
Information

b. PUC Establishment of a Recovery Fund for Net
Energy Metering Solar Consumers

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TWO PROPOSED PUC RULINGS

Background

At the February 4, 2021 Enforcement Committee Meeting, the Committee was joined by
California Public Utility Commission (CPUC) Commissioner, Martha Guzman-Aceves.
As background, Commissioner Guzman-Aceves provided a comprehensive overview of
the timeline of events, dating back to 2016-2017 when the current Net Energy Metering
(NEM) program that allows solar customers to earn utility bill credit for the unused
electricity generated by their systems and returned to the electrical grid, went into effect.
As discussed at the February 4th meeting, the CPUC has been especially concerned
about consumers who participate in NEM who find themselves committed to solar
contracts that cost more than they expected, do not produce energy as expected,
and/or the systems were never interconnected to the electrical grid.
In the 2020 decision, PUC Commissioners stated, ?in this proceeding, we have grappled
with how to protect solar consumers who are participants in the NEM program, from
solar providers and their agents who use unscrupulous tactics to evade detection and
enforcement action by various regulatory agencies. Such actions have resulted in
substantial transaction costs to some consumers, risk of property foreclosure from
associated financing, and in some instances losses from abandoned solar units.?
To address these concerns, the PUC 2020 decision included the following two findings:
1. That the IOUs ?need to implement changes to their interconnection portals to
improve the quality and accuracy of information collected on solar providers and
their agents.?

2. That there is ?a need to fund restitution for customers who have been defrauded
when attempting to go solar.?
Seeking input and support from CSLB, Commissioner Martha Guzman Aceves
presented proposals to address these two concerns to the Enforcement Committee.
The Enforcement Committee members voted to pass two motions based on Staff
Recommendations to support the PUC proposals that are summarized below.
Proposed Requirement that Investor-Owned Utilities Provide CSLB with Contract
Information for Consumers Participating in Net Energy Metering
On January 5, 2021, PUC Commissioner Guzman Aceves issued a proposal for IOUs to
more thoroughly review the documents uploaded by contractors to the interconnection
portals for customers participating in net energy metering. The proposal also calls for
the development by the IOUs of ?solar transaction record? databases.
The solar transaction record would require that IOUs create a record of every
interconnection application to connect to the grid. The interconnection portals would
allow for the downloading of information about these agreements, such as utility name,

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TWO PROPOSED PUC RULINGS

CSLB license/HIS number, solar equipment information, PUC solar consumer guide,
CSLB solar disclosure document, solar purchase/installation contract, and solar
transaction financial disclosures. This information would be sent to CSLB pursuant to
existing memorandums of understanding assuring confidentiality with the IOUs.
The proposal further provides that PUC develop a contractor ?watch list? to identify
contractors who violate the Consumer Protection Guide requirements or against whom
PUC or CSLB have received complaints. It also provides for the IOUs to conduct
targeted and random audits of 1,000 interconnection applications semi-annually.
Depending on the information found during these audits, appropriate enforcement would
be taken.

CSLB Handling of Solar Contract Information

The solar transaction record proposal described above would expand and formalize a
process that CSLB and PUC have already engaged in with the IOUs. Any concerns
regarding strain on staffing resources if the process is formalized were addressed at the
February 4th Enforcement Committee Meeting.

If the Commissioner is successful in an order directing IOUs to comply with the
rulemaking, CSLB Enforcement management is prepared to implement the following
strategies to achieve consumer protection goals while limiting the redirection of
Enforcement resources:
1. Review 600 interconnection packets annually. (CSLB would receive and review
300 interconnection packets?100 from each of the three IOUs?every six
months.)

2. The interconnection packets will be reviewed to confirm the following:
? The Home Improvement Salesperson is appropriately registered.
? Inclusion of the CSLB solar disclosure document.
? Inclusion of approximate start and completion dates in the solar installation
contract.
? Inclusion of a payment schedule in the solar installation contract that restricts
a down payment to no more than 10% of the contract price or $1,000, and
that subsequent payments do not exceed the value of work performed or
materials supplied.

3. Upon discovery of one or more of the violations above, staff will review the
contractor?s complaint history to determine if there is a pending complaint or a
history of repeated acts and take the following action:

? If the solar contractor does not have a history of repeated violations and there
is no open investigation, staff will send a custom letter to the licensee, along
with educational material, and advise them to bring their contract, business

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TWO PROPOSED PUC RULINGS

practices, and/or personnel of record into compliance within 30 days and to
demonstrate compliance.

? If there is an open investigation against the contractor, staff assigned to that
investigation will be advised about the results of the audit and required to
notify the contractor about the need to come into compliance as described
above. The name of the interconnection packet solar customer will not be
disclosed.

? If there is not an open complaint but the contractor has a history of repeated
violations, staff will contact the interconnection packet solar consumer
identified in the interconnection packet and asked permission for CSLB to use
their contract for corrective/disciplinary action that may include, an advisory
notice, letter of admonishment, citation, or accusation, as appropriate.

Enforcement Committee Recommendation: That the full board support PUC?s
Enhanced Auditing Proposal and Solar Transaction Record.

PUC Establishment of a Recovery Fund for Net Energy Metering Solar Consumers
Commissioner Guzman-Aceves also presented a proposal for a residential solar
recovery fund to assist homeowners who have legacy cases or ongoing matters where
they are left financially injured without available recourse. This proposal outlined that
PUC would collect an approximate $12 – $20 additional surcharge at the time of
interconnection to the electrical grid to generate the necessary revenue to meet the
needs to establish an estimated $1.6 million annual restitution fund.

During the Commissioner?s presentation she noted that while CSLB will not be the
administrator of the recovery fund, CSLB does employ the expertise to investigate
violations of contractor law including defective and incomplete work, misrepresentation
and fraud, determine consumer harm, and discern when the proposed fund should pay
restitution to a financially injured consumer.

If the Commissioner is successful in issuing an order to create a residential solar
recovery fund with the rulemaking, CSLB will implement the determined protocols to
refer solar cases to the recovery fund for payout as follows:

CSLB Recovery Fund Referral Protocol
Contractors Subject to Disciplinary Action by CSLB
? A recovery fund payout would be triggered when the license is subject to a final
administrative or legal action (arbitration, citation, accusation, or criminal referral)

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TWO PROPOSED PUC RULINGS

that includes an order of correction and the solar contractor has not satisfied the
financial injury.
Contractors Subject to Complaints when Other Remedies Exhausted
? For all cases against a contractor when CSLB?s administrative options are
exhausted (license revoked or no longer renewable), CSLB will continue to
identify all complaints received against that contractor, whether the complaint is
known during the preparation of the legal action or received after the legal action
is final. In all such cases, Enforcement staff will determine, following review by a
supervisor, whether a probable violation has occurred and if the complaint
involves allegations, that if proven, would present a risk of harm to the public and
where the license is subject to suspension or revocation or criminal prosecution.

? For any such complaints, CSLB will share by formal document with the recovery
fund the estimated financial injury to the consumer.

? Legislation will be required to compel the contractor to reimburse the fund if the
financial injury was not established through a formal disciplinary
action/proceeding. However, CSLB?s existing practice is to not re-license a
person unless rehabilitation is shown by resolving all construction related
outstanding financial liability.

Enforcement Committee Recommendation: That the full board support PUC?s
Recovery Fund for Net Energy Metering Solar Consumers proposal, with the modified
protocol for contractors subject to complaints when other remedies have been
exhausted.

 

108
AGENDA ITEM F

Licensing and Testing

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110
AGENDA ITEM F-1

Licensing Overview

a. Review, Discussion, and Possible Action on the
Licensing & Testing 2019-21 Strategic Plan

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Licensing Division Overview
The Licensing Division reviews and processes all applications for contractor licenses
and home improvement salesperson registrations; maintains and updates licensee
information; provides support to consumers, stakeholders, and licensees; and assists
government entities, licensees, and the public with classification concerns.
REVIEW AND PROCESS APPLICATIONS
? Conduct initial reviews of all application types (original, waiver, replacing a
qualifier, additional classification, and home improvement salesperson
registration)
? Review criminal background information
? Audit application experience certifications
? Confirm applicants are properly bonded and insured
? Review and process license reciprocity requests with other licensing entities

MAINTAIN AND UPDATE LICENSE INFORMATION
? Review and process biennial license renewals
? Process changes to license business name and contact information
? Process changes to license personnel and conduct criminal history review when
applicable
? Process changes in liability or workers compensation insurance

PROVIDE CONSUMER, STAKEHOLDER, AND LICENSEE SUPPORT
? Provide monthly licensing workshops
? Maintain a call center for any interested party to contact CSLB toll free
? Review civil judgements and administrative orders to ensure licensees comply
with orders related to liability or restitution
? Provide records in response to Public Records Act requests or requests for
certified records for legal proceedings
? Provide grant awards for construction management training to academic
institutions through the Construction Management Education Advisory account
? Provide expedited assistance to veterans and refugees for any application or
license-related transactions

ASSIST GOVERNMENT ENTITIES AND LICENSEES WITH CLASSIFICATION
CONCERNS
? Provide classification assistance to government entities and awarding agencies
? Advise building departments on the appropriate classification for specified
projects in their jurisdiction

CSLB also must test exam applicants for their knowledge of business law, as well as
specific trades. CSLB accomplishes this through two units: The Examination
Development unit and the Examination Administration unit. Combined, these units
create, maintain, and administer 46 exams at seven computer-based test centers
throughout California.

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EXAMINATION DEVELOPMENT
? Create and periodically maintain all 46 CSLB examinations in accordance with
state laws and national testing industry standards by conducting occupational
analyses and developing specific new test questions for all trades and
certifications
? Partner with subject matter experts to ensure test items and examination plans
remain current with trade requirements and practices
? Ensure all exams remain current with the California Building Standards
Commission?s triennial updates
? Conduct surveys and statistical analyses for CSLB?s Enforcement and Licensing
divisions
? Conduct classification studies to determine when CSLB regulations need to be
updated in accordance with changing industry standards

EXAMINATION ADMINISTRATION
? Conduct all contractor examinations
? Provide translators and other reasonable accommodations to applicants when
needed
? Investigate all irregularities in the testing environment to prevent cheating
? Work with Enforcement Division to penalize candidates for compromising exam
integrity

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2019-21 STRATEGIC PLAN ? LICENSING & TESTING OBJECTIVES

2019-21 Strategic Plan ? Licensing & Testing Objectives
Item 1.1

Description: Create an interactive online asbestos training to replace the open book asbestos exam
Target Date: January 2019

Current Status: Complete and available on CSLB website.

Item 1.2

Description: Review the licensing classification determinations for consistency and develop
classification industry bulletins

Target Date: January 2019 and ongoing

Current Status: Work is ongoing; most recently CSLB released updated guidance on service station
equipment.

Item 1.3

Description: Meet with stakeholders and develop a proposal for a new remodeling/home improvement
license classification.

Target Date: March 2019 (to meet with stakeholders)

Current Status: Signed by the Governor on September 30,2020, Testing Division currently recruiting
subject matter experts for test development and CSLB anticipates testing applicants for this new
classification by August 1, 2021.

Item 1.4

Description: Review barriers to licensure regarding criminal background information and make
changes where possible to encourage licensure.

Target Date: July 2019 (to review process and identify possible changes)
Current Status: Assembly Bill (AB) 2138 regulations approved by the board and are under review with
the California Department of Finance.

 

115
2019-21 STRATEGIC PLAN UPDATE

2019-21 Strategic Plan ? Licensing & Testing Objectives

Item 1.5

Description: In conjunction with the Legislation Division, review multiple qualifier responsibilities and
bonding requirements to determine if regulatory or legislative changes will improve consumer
protection.

(See Legislative objective 3.4)
Target Date: January 2021
Current Status: Bond study on sufficiency of $15,000 contractor license bond completed, which
included an analysis of the qualifier bond concerns; submitted for committee review on November 4,
2020; approved by the full board at its December 2020 meeting; submitted to Legislature December
23, 2020.

Item 1.6

Description: Research the feasibility of outsourcing test administration to reduce costs, reallocate
resources, and expand testing options for licensees.
Target Date: December 2019
Current Status: Implementing legislation signed by the Governor on September 29, 2020; staff
working with the Department of Consumer Affairs toward the transition.

Item 1.7

Description: In partnership with Public Affairs and Information Technology, develop online original
contractor license applications to reduce application return rates.

(See Public Affairs objective 4.7 and Information Technology objective 5.15)

Target Date: December 2019

Proposed Target Date: Begin December 2021

Current Status: Staff met with the board?s IT Advisory Committee and determined that IT priorities
should shift to online renewals for existing licensees and then return to the sole owner application.
Recently, IT staff made modifications to e-processing letters to improve guidance during the application
process.

Item 1.8

Description: Review feasibility of continuing education or online testing for license renewal to keep
licensees informed of changes to laws and codes.

Target Date: Begin December 2021

Current Status: Not yet begun.

 

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2019-21 STRATEGIC PLAN UPDATE

2019-21 Strategic Plan ? Licensing & Testing Objectives

Item 1.9

Description: In partnership with the Public Affairs Office and Enforcement Division, create online
courses and content to educate licensees.

(See Public Affairs objective 4.10 and Enforcement objective 2.6)
Target Date: December 2021
Current Status: Public Affairs developed an online building permit compliance video for licensees who
fail to comply with local building department permit requirements. In the planning stages of
development of a webinar or video to educate contractors and home improvement salespersons about
registration and home improvement contract requirements.

Item 1.10

Description: Expand public records and licensing information on the website to increase transparency.
(See Information Technology objective 5.19)
Target Date: Ongoing
Current Status: Workgroup formed with IT, Licensing, and PAO staff.

Item 1.11

Description: Evaluate call center processes and procedures for consistency in communication with
licensees, consumers, and other stakeholders to improve customer service.

Target Date: Ongoing

Current Status: Staff are building a new procedure manual and reviewing call-in phone prompts.

Item 1.12

Description: Review the subject matter expert pool to ensure representation from a cross-section of
industry to enhance test development.

Target Date: Ongoing

Current Status: Staff are conducting surveys to solicit feedback from agencies and associations.

 

117
118
AGENDA ITEM F-2

Licensing Program Update

a. Application Processing Statistics

b. Renewal Processing Statistics

c. Fingerprinting/Criminal Background
Unit Statistics

d. Experience Verification Statistics

e. Licensing Information Center Statistics

f. Judgment Unit Statistics

g. Examination Administration Unit

h. Examination Development Unit

119
120
LICENSING PROGRAM UPDATE

Licensing Program Update

APPLICATION PROCESSING STATISTICS

The charts below provide the total number of incoming applications received by the
application units each month, quarter, and calendar year.

Total Number of Applications Received Per Month

2020 2021
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Original
Exam 988 1,080 609 572 908 808 764 659 1,236 815 520 736
Original
Waiver 709 514 451 438 460 503 462 463 598 403 406 363
Add
Class 311 181 257 261 287 257 294 311 290 265 255 252
Qualifier
Replacer 176 129 183 186 167 171 193 126 188 174 217 145
Home
Improvement 892 892 352 455 804 886 1,135 923 962 852 610 739
Total
Per Month 3,076 2,796 1,852 1,912 2,626 2,625 2,848 2,482 3,274 2,509 2,008 2,235
3 ? Month Feb – Apr: 7,724 May – Jul: 7,163 Aug – Oct: 8,604 Nov – Jan: 6,752
Totals

Total Applications Received ? Prior Calendar Years

CY 2016 CY 2017 CY 2018 CY 2019 CY2020
Original Exam 13,471 13,642 15,500 15,244 13,193
Original Waiver 8,603 8,462 9,327 8,796 7,456
Add Class 4,064 3,974 4,220 4,526 4,231
Qualifier Replacer 2,374 2,488 2,706 2,792 2,620
Home Improvement 10,373 9,522 9,720 11,122 9,694
Total Received 38,885 38,088 41,473 42,480 37,194

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LICENSING PROGRAM UPDATE

CSLB management closely monitors processing times for the various licensing units on
a weekly and monthly basis.
The chart below provides the ?weeks to process? for applications, license transactions,
and public information unit documents (i.e., record certification) received each month.
?Weeks to process? refers to the average number of weeks before an application or
document is initially pulled for processing by a technician after it arrives at CSLB.

2020 2021
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

4.2 4.4 4.6 2.7 3.0 4.3 5.8 7.6 8.7 7.3 7.6 8.8
Original Exam

3.7 4.7 5.5 4.2 2.7 3.3 4.4 4.7 4.9 5.3 6.8 7.1
Original Waiver

3.2 4.1 4.1 2.9 2.4 2.4 3.1 3.4 4.1 3.2 2.9 2.1
Add Class

Qualifier Replacer (Exams 3.0 3.8 3.1 2.8 2.8 2.8 3.3 4.0 4.4 3.3 2.9 2.2
& Waiver)

2.8 4.0 4.1 1.1 1.4 1.8 2.0 3.4 4.4 4.3 3.4 2.5
Home Improvement

Renewal 2.5 3.1 2.4 2.6 3.1 3.8 3.1 3.0 2.8 4.1 4.9 2.6

Add New Officer 1.0 2.1 2.6 1.8 2.0 3.6 3.4 2.6 1.4 0.6 1.7 2.7

Address/ Name Change 1.1 2.2 3.0 1.6 1.8 3.8 3.4 2.2 1.3 1.0 1.8 2.5

Bond / Bond Exemption 0.6 0.6 0.5 1.5 0.5 0.6 0.6 0.6 0.6 0.7 1.0 0.9

Workers? Comp / Exempt 2.2 1.8 2.5 2.1 1.9 2.7 2.0 1.8 1.7 2.0 2.0 2.3

Certified License History 9.0 5.0 4.5 3.5 4.0 5.0 5.0 5.0 6.0 6.0 6.0 7.0

Copies of Documents 0.0 1.5 1.1 1.0 1.0 0.9 0.4 0.4 0.0 0.3 0.0 0.4

Criminal Offender Record
Information (CORI) 1.8 1.2 1.4 1.6 1.7 2.2 2.5 1.8 2.5 3.0 2.9 3.5
Review*

*Outside CSLB Control?
DOJ /FBI timeframe

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LICENSING PROGRAM UPDATE

The chart below illustrates the number of applications received in the previous fiscal
years and the final disposition of these applications, regardless of the year they were
processed. This is the combined total for all exam, waiver, add class, qualifier
replacement, and home improvement salesperson applications. This report allows staff
to monitor application cycle times and dispositions.

Disposition of Applications by Fiscal Year

Number of
Apps Processed
Fiscal Year Received & Issued Voided Pending*
2016-2017 38,737 24,598 10,748 3,391
2017-2018 39,118 20,132 6,562 12,424
2018-2019 42,344 20,379 6,766 15,199
2019-2020 38,251 16,415 4,161 17,675

* These are the total number of applications pending at the close of each fiscal year. An
application may be classified as pending because:
? The applicant does not pass the exam but is still within the 18-month window
during which they must pass the examination. (Note: The closing of CSLB test
centers from March to June 2020, resulted in approximately 6,000 applicants
being delayed in taking an examination.)
? The application is in the experience verification process.
? The application is not yet cleared by CSLB?s Criminal Background unit.
? The applicant has not submitted final issuance requirements (proof of bond,
workers? compensation insurance, asbestos open book examination results,
and/or fees).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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LICENSING PROGRAM UPDATE

 

RENEWAL PROCESSING STATISTICS

The charts below provide the number of incoming renewals received by the Renewal unit
each month, quarter, and calendar year.

Total Number of Renewals Received Per Month
2020 2021
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Reactivation 81 101 68 86 86 122 112 114 115 83 90 88
Active 7,376 9,944 10,278 8,538 7,628 9,702 8,064 8,817 7,242 5,059 8,677 7,920
Inactive 980 1,167 1,405 1,155 906 1,171 992 1,130 818 808 1,048 1,059
Delinquent
Active 525 852 1,236 948 1,080 1,364 1,160 1,327 1,027 843 1,165 1,074
Delinquent
Inactive 76 94 247 178 189 223 177 232 164 133 197 218
Received
Per Month 9,038 12,158 13,234 10,905 9,889 12,582 10,505 11,620 9,366 6,926 11,177 10,359
3 ? Month Feb- Apr: 34,430 May – Jul: 33,376 Aug – Oct: 31,491 Nov – Jan: 28,462
Totals

Note: Total numbers of renewals received were previously underreported March through June 2020 due to a
technical issue with online renewal processes

Total Renewals Received ? Prior Calendar Years
CY 2016 CY 2017 CY 2018 CY 2019 CY 2020
Reactivation 1,846 1,558 1,421 1,358 1,164
Active 103,659 97,884 104,330 98,901 97,037
Inactive 16,064 14,280 13,757 13,007 12,379
Delinquent Active 11,853 11,211 11,091 10,721 12,636
Delinquent Inactive 2,195 1,945 1,892 1,734 2,071
Total Received 135,617 126,878 132,491 125,721 125,287

124
LICENSING PROGRAM UPDATE

WORKERS? COMPENSATION RECERTIFICATION STATISTICS

The law requires that at the time of renewal, an active contractor with an exemption for
workers? compensation insurance on file with CSLB either recertify that exemption or
provide a current and valid Certificate of Workers? Compensation Insurance or Certificate
of Self-Insurance. If, at the time of renewal, the licensee fails to comply, the law allows for
the retroactive renewal of the license if the licensee submits the required documentation
within 30 days after notification by CSLB of the missing information.

The chart below provides a snapshot of workers? compensation coverage for active
licenses.

Workers’ Comp Coverage for
Active Licenses – January 31, 2021

2,305 2,912

Workers’ Comp Exemption
Current (53%)
Workers’ Comp Coverage
100,925 Current (44%)
Under Workers’ Comp
122,516
Suspension (1%)
Pending Workers’ Comp
Suspension (1.3%)

The following chart shows the workers? compensation coverage (policies and
exemptions) on file as of January 31, 2021, for active licenses by classification and the
percentage of exemptions per classification.

125
LICENSING PROGRAM UPDATE

Active License Classifications Workers? Comp Status ? As of January 31, 2021

Exemptions WC Policies Total Policies % of Total with
Classification on File on File & Exemptions Exemptions

A General Engineering 5,273 9,004 14,277 37%
B General Building 61,016 39,672 100,688 61%
C-2 Insulation and Acoustical 277 865 1,142 24%
C-4 Boiler Hot Water 187 555 742 25%
C-5 Framing / Rough Carp 474 382 856 55%
C-6 Cabinet-Millwork 2,651 1,871 4,522 59%
C-7 Low Voltage Systems 1,989 2,709 4,698 42%
C-8 Concrete 2,499 3,594 6,093 41%
C-9 Drywall 1,193 1,740 2,933 41%
C10 Electrical 13,792 11,345 25,137 55%
C11 Elevator 41 171 212 19%
C12 Earthwork & Paving 971 1,386 2,357 41%
C13 Fencing 682 904 1,586 43%
C15 Flooring 3,584 3,326 6,910 52%
C16 Fire Protection 742 1,384 2,126 35%
C17 Glazing 1,066 1,769 2,835 38%
C20 HVAC 6,597 5,384 11,981 55%
C21 Building Moving Demo 487 1,180 1,667 29%
C22 Asbestos Abatement 2 282 284 0.7%
C23 Ornamental Metal 428 611 1,039 41%
C27 Landscaping 4,760 6,538 11,298 42%
C28 Lock & Security Equipment 139 214 353 39%
C29 Masonry 975 1,332 2,307 42%
C31 Construction Zone 41 267 308 13%
C32 Parking Highway 178 306 484 37%
C33 Painting 8,523 6,785 15,308 56%
C34 Pipeline 157 338 495 32%
C35 Lath & Plaster 579 1,183 1,762 33%
C36 Plumbing 8,696 6,751 15,447 56%
C38 Refrigeration 911 8,92 1,803 51%
C39 Roofing 1 4,460 4,461 0%
C42 Sanitation 377 573 950 40%
C43 Sheet Metal 384 1,000 1,384 28%
C45 Signs 367 482 849 43%
C46 Solar 480 751 1,231 39%
C47 Gen Manufactured House 224 210 434 52%
C50 Reinforcing Steel 60 198 258 23%
C51 Structural Steel 388 1,043 1,431 27%
C53 Swimming Pool 1,146 1,394 2,540 45%
C54 Tile 3,601 2,759 6,360 57%
C55 Water Conditioning 124 175 299 41%
C57 Well Drilling 300 476 776 39%
C60 Welding 523 457 980 53%
C61 Limited Specialty 7,745 10,194 17,939 43%
ASB Asbestos Cert 273 669 942 29%
HAZ Hazardous Cert 547 1,304 1,851 30%

126
LICENSING PROGRAM UPDATE

FINGERPRINTING/CRIMINAL BACKGROUND UNIT STATISTICS

As mandated in January 2005, CSLB continues to fingerprint all license applicants. The
California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI)
conduct criminal background checks and provide criminal offender record information to
CSLB for in-state convictions and for out-of-state and federal convictions.
DOJ and FBI typically provide responses to CSLB within a day or two of an applicant
being fingerprinted, but occasionally the results are delayed. This does not necessarily
indicate a conviction, as sometimes the results reveal a clear record. Most delays are
resolved within 30 days; however, some continue for up to 90 days or longer because
the DOJ and FBI must obtain court records. Since DOJ and FBI are independent
agencies, CSLB has no control over these delays and must wait for the fingerprint
results before issuing a license, though staff do follow up with DOJ regarding delayed
responses to confirm the review has commenced and DOJ requires no further
information.
Below is a breakdown of Criminal Background unit statistics for the past five calendar
years.

CRIMINAL BACKGROUND UNIT STATISTICS

CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 TOTALS

DOJ Records
Received 32,470 29,189 34,664 33,553 27,172 157,048
CORI Information
Received 6,764 5,900 6,729 6,657 5,375 31,425

Denials 49 63 65 63 16 256

Appeals 26 39 42 31 11 149
Probationary Licenses
Issued (conditional license; 89 83 61 86 101 420
requires periodic review)

127
LICENSING PROGRAM UPDATE

EXPERIENCE VERIFICATION UNIT STATISTICS

Business and Professions Code section 7068(g) and California Code of Regulations
824 require that the CSLB registrar conduct a comprehensive investigation of a
minimum of three percent of applications. Such investigations shall include those areas
of experience claimed and other areas the registrar deems appropriate for the
protection of the public.
Since implementation in September 2014, Experience Verification unit staff have been
assigned and have reviewed 3,663 applications.

The following chart provides a monthly breakdown of actions taken for applications
referred to the Experience Verification unit for the past 12 months.
2020 2021
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Withdrawn 1 6 4 2 1 1 3 0 3 4 0 2
Verified 17 24 3 5 10 9 8 3 5 4 3 4
Denied 0 1 0 1 5 0 1 0 4 0 1 0
Appealed 0 0 0 0 0 0 0 0 0 0 1 0

The chart below provides the breakdown for appeals, denials, withdrawals, experience
verification, and pending applications by classification for the past 25 months.

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LICENSING PROGRAM UPDATE

Experience Verification by Classification
January 1, 2019 ? January 31, 2021

Classification Appealed Withdrawn Verified Denied Total

A General Engineering 3 13 23 8 47
B General Building 1 118 159 50 328
C2 Insulation and Acoustical 0 0 1 2 3
C4 Boiler Hot Water 0 2 1 0 3
C5 Framing / Rough Carp 0 2 2 0 4
C6 Cabinet-Millwork 0 3 10 1 14
C7 Low Voltage Systems 0 2 6 1 9
C8 Concrete 1 3 13 4 21
C9 Drywall 0 2 5 1 8
C10 Electrical 0 12 39 7 58
C11 Elevator 0 0 0 0 0
C12 Earthwork & Paving 0 3 4 2 9
C13 Fencing 0 3 2 1 6
C15 Flooring 0 5 17 3 25
C16 Fire Protection 1 0 1 4 6
C17 Glazing 0 4 7 0 11
C20 HVAC 2 9 25 8 44
C21 Building Moving Demo 0 3 3 4 10
C22 Asbestos Abatement 1 1 0 0 2
C23 Ornamental Metal 0 1 1 0 2
C27 Landscaping 0 13 14 0 27
C28 Lock & Security Equipment 0 1 0 1 2
C29 Masonry 0 1 2 0 3
C31 Construction Zone 0 0 1 0 1
C32 Parking Highway 0 0 0 0 0
C33 Painting 0 20 37 9 66
C34 Pipeline 0 0 0 0 0
C35 Lath & Plaster 0 2 3 1 6
C36 Plumbing 3 7 33 3 46
C38 Refrigeration 0 3 1 0 4
C39 Roofing 1 8 16 3 28
C42 Sanitation 0 2 4 0 6
C43 Sheet Metal 0 0 0 0 0
C45 Signs 0 0 0 0 0
C46 Solar 0 2 3 1 6
C47 Gen Manufactured House 0 0 0 0 0
C50 Reinforcing Steel 0 0 0 0 0
C51 Structural Steel 0 2 2 1 5
C53 Swimming Pool 0 3 1 5 9
C54 Tile 0 4 13 4 21
C55 Water Conditioning 0 0 0 0 0
C57 Well Drilling 0 0 2 0 2
C60 Welding 2 0 4 0 6
C61 Limited Specialty 2 16 25 6 49
ASB Asbestos Cert 0 0 0 0 0
HAZ Hazardous Cert 0 0 0 0 0
Total 17 270 480 130 897

129
LICENSING PROGRAM UPDATE

LICENSING INFORMATION CENTER (LIC) STATISTICS

LIC Support Services
CSLB?s Licensing Information Center is the first point of contact for applicants,
consumers, licensees, and governmental agencies needing information about licensing
laws, hiring a contractor, licensing application information, and the status of an
application. The LIC receives, on average, 12,000 calls monthly. Staff that respond to
calls must have knowledge of all licensing transaction processes in order to assist
callers with correct and complete information.

Inbound 2020 2021
Activity Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Calls
Received 13,607 13,095 10,393 10,235 11,814 13,307 11,534 11,907 12,117 9,495 10,088 10,383
Calls
Answered 11,684 10,723 5,441 3,953 6,536 10,874 6,812 6,523 7,154 6,709 8,829 8,835
Caller
Abandoned 1,110 1,274 2,736 3,733 4,694 2,408 4,700 5,229 4,715 2,703 1,243 1,534
Longest
Wait Time 11:36 24:00 59:48 58:01 1:28:20 41:20 1:11:47 1:33:24 2:01:16 56:51 31:57 43:02
Shortest
Wait Time 01:23 02:33 01:06 01:08 06:08 00:20 04:39 21:25 08:08 02:57 00:25 02:48
Avg. Wait
Time 05:52 07:10 26:39 46:08 38:42 15:18 39:28 45:52 36:54 26:39 10:26 11:23

Licensing Information Center Call Data – Prior Calendar Years
Inbound Activity CY 2016 CY 2017 CY 2018 CY 2019 CY 2020
Calls Received 163,076 166,918 152,845 149,462 142,647
Calls Answered 158,778 147,074 137,270 136,776 98,044
Caller Abandoned 4,178 16,527 9,426 7,859 35,865*
Average Longest Wait Time 05:39 01:36 10:48 08:33 0:46:23
Average Shortest Wait Time 00:22 00:12 01:04 00:48 0:04:23
Average Wait Time 02:45 06:46 04:21 03:34 0:25:27

*Abandoned calls were excessive as a result of staff working from home due to the pandemic.

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LICENSING PROGRAM UPDATE

JUDGMENT UNIT STATISTICS

Judgment unit staff process all outstanding liabilities, judgments, and payment of claims
reported to CSLB by licensees, consumers, attorneys, credit recovery firms, bonding
companies, CSLB?s Enforcement division, and other governmental agencies. In addition,
the Judgment unit processes all documentation and correspondence related to resolving
issues such as satisfactions, payment plans, bankruptcies, accords, motions to vacate,
etc.

Outstanding liabilities are reported to CSLB by:
? Employment Development Department
? Department of Industrial Relations
o Division of Occupational Safety and Health
o Division of Labor Standards Enforcement
? Franchise Tax Board
? State Board of Equalization
? CSLB Cashiering Unit

Unsatisfied judgments are reported to CSLB by:
? Contractors
? Consumers
? Attorneys

Payment of claims are reported to CSLB by bonding (surety) companies.

The charts on the following page provide the number of notifications mailed to licensees
related to outstanding liabilities, judgments, and payment of claims affecting their license
status, including the savings to the public as a result of compliance.

131
LICENSING PROGRAM UPDATE

Number of Reimbursements to State Agencies and Public

2019 2020
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

OUTSTANDING LIABILITES (FROM CALIFORNIA STATE AGENCIES)

Initial 95 79 13 12 6 7 11 15 27 9 30 21
Suspend 53 49 83 63 12 10 6 6 10 13 22 8
Reinstate 64 52 29 46 30 28 8 17 19 8 16 6
Total 212 180 125 121 48 45 25 38 56 30 68 35

FINAL JUDGMENTS (FROM COURT ACTIONS)
Initial 33 78 59 24 53 55 56 41 70 51 32 51
Suspend 6 15 25 17 44 29 18 23 21 22 15 20
Reinstate 41 41 38 37 44 59 42 48 53 41 36 41
Total 80 134 122 78 141 143 116 112 144 114 83 112

PAYMENT OF CLAIMS (FROM BOND SURETY COMPANIES)
Initial 153 142 112 132 137 118 134 115 104 67 145 100
Suspend 92 98 101 64 95 52 69 76 68 77 59 42
Reinstate 119 122 76 124 116 98 98 103 122 63 120 86
Total 364 362 289 320 348 268 301 294 294 207 324 228

Reimbursement Amounts to State Agencies and Public
Prior Calendar Years

CY 2016 CY 2017 CY 2018 CY 2019 CY 2020
Outstanding
$21,294,139 $23,282,397 $23,899,670 $26,277,077 $18,342,630
Liabilities
Final
$21,075,805 $20,175,529 $12,167,435 $16,514,073 $20,586,833
Judgments
Payment
$8,852,480 $8,850,173 $9,580,600 $11,080,053 $9,921,280
of Claims
Total
Monetary $51,222,424 $52,308,099 $45,647,705 $53,871,203 $48,850,913
Savings

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LICENSING PROGRAM UPDATE

State Agency Outstanding Liabilities Collected

Department of Industrial
Relations (DIR)
Employment
Franchise
Development Division of Labor Standards Enforcement Total Liabilities
Tax Board (DLSE)
Department Collected
(FTB) Division of Occupational Safety & Health
(EDD) (DOSH)
Office of the Director ? Legal Unit
(ODL)

February 2020 $1,527,709 $415,563 $260,417 $2,203,689

March $1,673,255 $475,932 $953,755 $3,102,942

April $793,586 $79,769 $342,183 $1,215,538

May $1,082,441 $194,609 $182,472 $1,459,522

June $220,128 $391,568 $390,242 $1,001,938

July $1,416,771 $114,413 $363,269 $1,894,453

August $91,008 $103,108 $108,023 $302,139

September $128,302 $257,635 $143,082 $529,019

October $358,622 $223,674 $285,119 $867,415

November $39,764 $146,183 $45,505 $231,452

December $442,254 $1,646,285 $58,241 $2,146,780

January 2021 $103,718 $61,651 $8,075 $173,444

TOTALS $7,877,558 $4,110,390 $3,140,383 $15,128,331

133
134
AGENDA ITEM F-3

Testing Program Update

a. Examination Administration Unit

b. Examination Development Unit

135
136

TESTING PROGRAM UPDATE

EXAMINATION ADMINISTRATION UNIT (EAU)

The Testing Division?s EAU administers CSLB?s 46 examinations at seven computer-based
test centers. Most test centers are allocated two full-time test monitor positions, with part-
time proctors filling in as needed. Test monitors also respond to all interactive voice
response messages received by CSLB that are related to testing.

EAU provides reasonable accommodations to applicants when needed and approves
translator requests for candidates.

EAU currently has one vacancy: Office Technician-Limited Term position in San Bernardino.

Number of Examinations Scheduled Per Month February 2020 ? January 2021
Feb Jan
2020 Mar* Apr May Jun Jul Aug Sep Oct Nov Dec* 2021 Total
3,816 2,549 0 0 2,635 4,683 4,358 3,781 4,088 3,418 699 0 30,027

*Due to the Shelter-in-Place orders during the COVID-19 pandemic, all testing was halted in mid-March and
again in December and January. The San Jose and Berkeley Test Centers stopped testing on March 18, and
the other six centers stopped testing on March 20, 2020. All test centers, except Berkeley, reopened on June
15, 2020, but closed again December 7, 2020 through February 1, 2021.

CSLB currently maintains test centers in the following locations:
? Sacramento
? Norwalk
? San Jose
? Fresno
? Oxnard
? San Bernardino
? San Diego

Berkeley permanently closed January 31, 2021.

Number of Examinations Scheduled by Test Center February 2020 ? January 2021

Number of
Test Center
Examinations Scheduled
Berkeley 678
Fresno 1,894
Norwalk 7,848
Oxnard 3,007
Sacramento 6,796
San Bernardino 4,659
San Diego 3,086
San Jose 2,059
Total 30,027

137

TESTING PROGRAM UPDATE

EXAMINATION DEVELOPMENT UNIT (EDU)

The Testing Division?s EDU ensures that CSLB?s 46 examinations are written,
maintained, and updated in accordance with testing standards and guidelines, Department
of Consumer Affairs policies, and CSLB regulations, as well as federal and California state
law.

Examination Development

State law requires that all license examinations be updated at least every five to
seven years. All CSLB examination programs meet this standard. The revision
process takes approximately one year and is conducted in two phases:
1) occupational analysis and 2) item bank development.

The occupational analysis determines what topics are relevant to each contractor
classification and in what proportion they should be tested. This process starts with
interviews of a statewide sample of active California licensees in each specific
classification. The interviews result in a draft list of the job tasks performed by contractors
in that trade and the knowledge needed to work safely and competently. EDU staff then
conduct a workshop with licensees who act as subject matter experts to finalize the task and
knowledge statements. A large-scale online survey is conducted with a greater number of
subject matter experts. A second workshop is then conducted to develop a validation report,
which includes an examination outline that serves as a blueprint for constructing
examination versions/forms.

The item bank development phase involves numerous workshops with subject
matter experts to review and revise existing test questions, write and review new
test questions, and determine the passing score for examinations from that point
forward.

EDU currently has one vacancy: Research Data Specialist II.

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TESTING PROGRAM UPDATE

Examination Programs in Progress as of February 1, 2021

Occupational Analysis Item Bank Development
C-7 Low Voltage Law and Business
C-16 Fire Protection A – General Engineering
C-17 Glazing Asbestos Certification
C-33 Painting & Decorating B-2 Residential Remodeling
C-39 Roofing C-6 Cabinet, Millwork and Finish Carpentry
C-53 Swimming Pool C-8 Concrete
C-54 Ceramic & Mosaic Tile C-9 Drywall
C-11 Elevator
C-15 Flooring and Floor Covering
C-20 Warm-Air Heating, Ventilating and Air
Conditioning
C-23 Ornamental Metal
C-27 Landscaping
C-28 Lock and Security Equipment
C-29 Masonry
C-31 Construction Zone Traffic Control
C-32 Parking and Highway Improvement
C-36 Plumbing
C-43 Sheet Metal

Ongoing Consumer Satisfaction and Applicant Survey

EDU conducts an ongoing survey of consumers whose complaint cases have been closed
to assess overall satisfaction with the Enforcement Division?s handling of complaints related
to eight customer service topics. This survey is mailed to a sample of complainants who
provided CSLB with their email address. Respondent comments are provided to the
Enforcement Division each month for review. EDU also conducts an ongoing survey of
applicants who complete the application process. The surveys are emailed after license
issuance to all applicants who provide CSLB with their email address. Follow up emails are
sent a month later to applicants who have not yet responded. Respondent comments are
provided to the Licensing Division each month for review. Statistics based on survey
responses for both surveys are compiled and presented to the board annually (July).

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140
AGENDA ITEM F-4

Update on Test Development for
New B-2 Residential Remodeling
License Classification

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RESIDENTIAL REMODELING & HOME IMPROVEMENT LICENSE

Residential Remodeling & Home Improvement License

In October 2020, Governor Newsom signed into law Senate Bill 1189 (McGuire), which created the B-
2 classification and provides a pathway to licensure for those engaged in residential remodeling and
home improvement work. CSLB staff are committed to having the B-2 license classification and all
requirements in-place to begin licensure by August 1, 2021.

Timeline of Activities for B-2 Implementation
Several CSLB divisions are collaborating to ensure that the B-2 license is issued by August 2021. For
this reason, the Executive Office has established a taskforce consisting of Information Technology,
Licensing, Public Affairs (PAO), and Testing staff to coordinate activities and maintain the following
schedule. The board will receive updates at each meeting in 2021.

Below is a production schedule for developing the exam.

Date Division(s) Activity Status
Complete ? 161
Oct-20 Testing Recruit Subject Matter Experts
Participants
Oct-20 Testing Conduct Job Audits Complete
Create B-2 Item Bank and Transfer specified
Oct-20 IT Complete
existing classificatiionmaterial to bank
Remote Occupational Analysis Workshops
Nov-20 Testing Complete
and Pilot Survey
Item Writing Workshop 1 and Final Survey
Dec-20 Testing Complete
Released
Jan-21 Testing Final Occupational Analysis Complete
Mar-21 Testing Item Writing Workshop 2 Complete
Licensing,
Start implementation/outreach planning March 15, 2021
March-21 PAO, IT, &
meetings Kick-off Meeting
Enforcement
Apr-21 Testing Item Writing Workshop 3 & 4 Not Begun
Apr-21 IT Updates to SCORE must be complete Not Begun
May-21 Testing Item Writing/Review Workshop 5 Not Begun
PAO & Outreach begins (licensing workshops,
May-21 Not Begun
Licensing website updates, industry bulletin, etc.)
Jun-21 Licensing Begin accepting B-2 applications Not Begun
Pass Point Setting Workshop 6 and finalize
Jun-21 Testing Not Begun
exam booklet
Jul-21 IT Post B-2 Study Guide Not Begun
Jul-21 Testing Finalize pass point and deliver booklets Not Begun
Aug-21 Testing Release Exam Not Begun

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144
AGENDA ITEM F-5

Advisory Committee Update on
Women in Construction

145
146
UPDATE ON WOMEN IN CONSTRUCTION

Background
In November 2020, board members Mary Teichert and Jim Ruane were appointed to an
Advisory Committee to lead CSLB?s efforts to increase women?s participation in the
construction industry. Staff also proposed and is currently implementing an outreach
plan for this effort.

Current Planned Outreach
To date, CSLB has partnered with the North State Building Industry Association and the
California Capital Women?s Business Center to conduct a three-part event in Spring
2021 to help women and minorities enter the trades by getting information on obtaining
a license as well as creating or buying a business.

Other Efforts
CSLB also wishes to support others seeking to increase women?s participation. For
example, each year as part of National Women?s History Month (March), the National
Association of Women in Construction promote ?Women in Construction Week? ? an
event to help create a support network for other women in the industry. This year that
week was March 7, 2021 through March 13, 2021.

In support of this promotion, the Legislature through Senate Concurrent Resolution 16,
proclaimed that March 7 through March 13 was California?s Women in Construction
Week. A support letter sent by board members Mary Teichert and Jim Ruane follows.

Future Outreach
Board members Teichert and Ruane along with staff continue to look for other outreach
opportunities. Anyone with comments or ideas for opportunities, please contact CSLB?s
Licensing Chief, Justin Paddock, at justin.paddock@cslb.ca.gov.

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CONTRACTORS STATE LICENSE BOARD STATE OF CALIFORNIA
9821 Business Park Drive, Sacramento, CA 95827 Governor Gavin Newsom
Mailing Address: P.O. Box 26000, Sacramento, CA 95826
800.321.CSLB (2752) | www.cslb.ca.gov | CheckTheLicenseFirst.com

March 4, 2021

The Honorable Anna Caballero, Chair

State Capitol, Room 5052
Sacramento, CA 95814

SUBJECT: SUPPORT – SCR 16 (Caballero): Women in Construction Week Proclamation

Dear Senator Caballero and Coauthors:

The Contractors State License Board (CSLB) is in SUPPORT of Senate Concurrent Resolution (SCR)
16. This resolution establishes March 7, 2021 through March 13, 2021 as California?s Women in
Construction Week, supporting The National Association of Women in Construction?s efforts to increase
women participation in the construction industry.

As stated in the resolution, ?women currently occupy only 10 percent of all apprenticeships and less than
3 percent of construction trade jobs nationally.? As the entity that regulates this trade, CSLB is committed
to increasing women participation in the industry.

In November 2020, as CSLB?s general engineering contractor board member, I was selected to
participate in a two-person Advisory Committee with a fellow board member, specialty contractor Jim
Ruane, to lead CSLB?s efforts to promote outreach to women seeking to enter the construction industry.
CSLB is committed to increasing women participation in the industry and therefore support this resolution.

If you have any questions, please contact the Board?s Legislation Chief Mike Jamnetski at (916) 255-
2798 or michael.jamnetski@cslb.ca.gov.

Sincerely,

Mary Teichert, Board Secretary
Contractors State License Board

CC: Senate President Pro Tempore Toni Atkins
Resolution Coauthors

149
150
AGENDA ITEM F-6

Review, Discussion, and Possible
Action to Approve Construction
Management Education Account
Advisory Board Membership for
July 2021-June 2021 Term

151
152
CMEA ADVISORY COMMITTEE

Background

The Construction Management Education Sponsorship Act (Act) was passed by the
California Legislature and signed into law by Governor Pete Wilson in 1991 (Business
and Professions Code sections 7139-7139.10). In creating the Act, the Legislature
recognized the increasing need to educate and prepare graduates to fill positions in
construction management at a variety of companies.

It was the Legislature?s intent that the grants provided through the Act would improve
the overall quality of construction by providing industry-specific management training to
California licensed contractors and their current and future managers.

Donations

The Act allows contractors to contribute to an account established under the
Contractors State License Board (CSLB) for the purposes of construction management
education. Originally, contributions were limited to $25; consequently, the fund grew
slowly. In 2003, the Legislature removed the contribution limit and contractors may now
contribute any amount they wish. Contributions can be submitted with any application
for licensure or renewal.

Advisory Committee

The Construction Management Education Account (CMEA) Advisory Account
Committee oversees the funds that help improve the quality and availability of education
programs for California?s construction industry. Pursuant to California Business and
Professions code section 7139.3 the committee is composed of 11 members and serve
three-year terms. The law requires a member from each of the following organizations:

? Associated General Contractors of California
? Associated Builders and Contractors
? California Building Industry Association
? National Electrical Contractors Association
? Plumbing-Heating-Cooling Contractors Association
? Southern California Contractors Association
? Associated General Contractors of San Diego
? United Contractors Organization (formerly the Engineering and Utility Contractors
Association)
? Engineering Contractors Association
? California Sheet Metal and Air Conditioning Contractors Association

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CMEA ADVISORY COMMITTEE

The 11th member represents the California State University and University of California
construction management programs accredited by the American Council for
Construction Education.

Nominations for Construction Management Account Advisory Committee
CSLB staff reached out to each organization identified in the law and asked each for a
volunteer to serve as a representative for the July 1, 2021 to June 30, 2024 term.

The proposed representatives are as follows:

ASSOCIATION REPRESENTATIVE ORGANIZATION
Associated General Contractor of CA (AGC) Erin Volk AGC

Associated General Contractors of San Diego Dustin Steiner AGC

Associated Builders & Contractors (ABC) Ed Duarte Aztec Consultants

California Building Industry Association (CBIA) Nick Cammarota CBIA

National Electrical Contractor Association (NECA) Vincent Bernacchi Schetter Electric, Inc.

Plumbing Heating Cooling Contractor Association Patrick Wallner Wallner Plumbing
(PHCC) Company Inc.
Southern California Contractor Association (SCCA) Paul Von Berg SCCA

United Contractors (UCON) Emily Cohen UCON

Engineering Contractors Association (ECA) Ray Baca ECA

Sheet Metal & Air Conditioning Contractors Chris Walker Walker Strategies
National Association (SMACNA)
CSU / UC Construction Management Programs Mikael Anderson* CSU, Sacramento*

*Please note, CSLB staff did not directly contact CSU or UC programs directly but asked if Mr. Anderson would like
to continue to serve in the position.

Staff Recommendation
That the board appoint the representatives proposed above to serve on the
Construction Management Education Act Committee for the July 2021 to June 2024
term.

154
AGENDA ITEM G

Public Affairs

155
156
AGENDA ITEM G-1

Public Affairs Overview

a. Review, Discussion, and Possible Action on
Public Affairs 2019-21 Strategic Plan

157
158
UBLIC FFAIRS ROGRAM VERVIEW
P A P O

Public Affairs Program Overview
CSLB?s Public Affairs Office (PAO) is responsible for media, industry, licensee, and
consumer relations, as well as outreach. PAO provides a wide range of services,
including proactive public relations; response to media inquiries; community outreach,
featuring Senior Scam Stopper? and Consumer Scam Stopper? seminars, and
seminars for both disaster survivors and contractors; speeches to service groups and
organizations; publication and newsletter development and distribution; contractor
education and outreach; social media outreach to consumers, the construction industry,
and other government entities; and website and employee Intranet content, including
webcasts, video, and audio production.

? Media Relations
o Respond to Media Inquiries
o Draft and Distribute Press Releases
o Daily Media EClips
? Consumer Outreach
o Senior Scam Stoppers
o Consumer Scam Stoppers
o Speakers Bureau
o Trade Shows
? Applicant/Licensee Outreach
o Industry Bulletins
. Draft, edit, distribute
o California Licensed Contractor Newsletter
. Develop story ideas
. Draft, edit, design, distribute
o Licensing Workshops
o New B-2 License outreach
o Underrepresented Groups
. Women
. Racial/Ethnic Minorities
? Disaster Response
o Media Events/Joint Press Conferences
o Local Assistance Centers
. Provide outreach material
o Outreach to local legislators, building departments, chambers of
commerce
o Rebuilding workshops?survivors and contractors
. Coordinate with local jurisdictions
? Social Media Moderating
o Facebook
o Twitter
o Instagram

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PUBLIC AFFAIRS PROGRAM OVERVIEW

o NextDoor
o Flickr
? Video Production
o Creation of New Videos
. Develop/write script
. Film
. Edit video and audio
o Livestreaming of Webcasts for Public Meetings, Including
Board/Committee Meetings; Licensing Workshops; Solar Taskforce
. Edit video/audio and post to website
? CSLB Publications, Reports, Law Book. Board/Committee Packets
o Review Inventory
o Coordination of Content?Developing new and revising existing
o Editing and factchecking
o Design/Layout
? Graphic Design
o Research, conceptualize, develop concept
o Coordinate production and posting to website
o Board Member portraits
o Certificates of Recognition
o Staff ID photos
o Updates/revisions to forms
o Graphics for website
o Posters, signs, fliers
? Website
o Review updates/content changes
o ADA compliance for historical material
o Job Postings
o Monthly Licensing Statistics
o Most Wanted
? Monitor CSLB Public Email Accounts
? Employee Intranet
o Develop, draft, factcheck, and post stories
o Archive content
o Update board member information

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2019-21 STRATEGIC PLAN ? PUBLIC AFFAIRS OBJECTIVES

2019-21 Strategic Plan ? Public Affairs Objectives
Item 4.1

Description: Distribute a calendar of key meetings, events, and activities to board members to increase
participation and their ability to advocate on the board?s behalf

Target Date: January 2019

Current Status: Completed

Item 4.2

Description: In partnership with all divisions, lead effort to formalize CSLB?s disaster response program

(See Enforcement objective 2.1)

Target Date: June 2019

Current Status: Completed

Item 4.3

Description: Conduct a workload analysis to determine if additional staffing resources are needed

Target Date: June 2019

Current Status: No Longer Needed

Item 4.4

Description: In partnership with the Enforcement Division, develop and implement a plan to identify
opportunities to increase publicity concerning enforcement actions, including relaunch of CSLB?s Most
Wanted feature.

(See Enforcement objective 2.3)

Target Date: Develop: June 2019, Implement: January 2020

Current Status: Completed

 

161
2019-21 STRATEGIC PLAN UPDATE

2019-21 Strategic Plan ? Public Affairs Objectives

Item 4.5

Description: Research the feasibility of creating a text alert program to communicate with licensees and
consumers and implement if possible.

Target Date: Feasibility: June 2019

Current Status: PAO staff has completed its feasibility research. This will be discussed at the IT
Advisory committee meeting in March 2021

Item 4.6

Description: Expand website content to keep industry and licensees up-to-date on relevant information.

Target Date: September 2019 and ongoing

Current Status: Staff working with IT to create dedicated licensee news/updates page on website.

Item 4.7

Description: In partnership with the Licensing Division and Information Technology unit develop online
original contractor applications to reduce application return rates.

(See Licensing objective 1.7 and Information Technology 5.15)

Target Date: December 2019

Proposed Target Date: Begin December 2021

Current Status: Staff met with the board?s IT Advisory Committee and determined that IT priorities
should shift to online renewals for existing licensees and then return to the sole owner application.
Recently, IT staff made modifications to e-processing letters to improve guidance during the application
process.

Item 4.8

Description: Develop orientation videos for new staff, managers and Board members

(See Administrative objective 5.8)

Proposed Target Date: February 2021

Current Status: Script being reworked; shooting will commence after script is completed.

 

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2019-21 STRATEGIC PLAN UPDATE

2019-21 Strategic Plan ? Public Affairs Objectives

Item 4.9

Description: In partnership with the Information Technology unit, review and update web content to
ensure information present to the public is accurate and accessible.

(See Information Technology objective 5.16)

Target Date: Ongoing

Current Status: Compliance with Americans with Disabilities Act (ADA) accessibility requirements
completed; PAO staff updating historic items to repost. IT is updating other content.

Item 4.10

Description: In partnership with the Enforcement and Licensing divisions, create online courses and
content to educate licensees.

(See Enforcement objective 2.6 and Licensing objective 1.9)

Target Date: December 2021

Current Status: Developed an online building permit compliance video for licensees who fail to comply
with local building department permit requirements. In the planning stages of development of a webinar
or video to educate contractors and home improvement salespersons about registration and home
improvement contract requirements.

 

163
164
AGENDA ITEM G-2

Public Affairs Program Update

a. Disaster Response

b. Online Highlights

c. Video/Digital Services

d. Social Media Highlights

e. Media Relations Highlights

f. Publications/Graphic Design Highlights

g. Industry/Licensee Outreach Highlights

h. Consumer/Community Outreach Highlights

i. Intranet/Employee Relations

165
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UBLIC FFAIRS ROGRAM PDATE
P A P U

Public Affairs Program Update

CSLB?s Public Affairs Office (PAO) is responsible for media, industry, licensee, and
consumer relations, as well as outreach. PAO provides a wide range of services,
including proactive public relations; response to media inquiries; community outreach,
featuring Senior Scam Stopper? and Consumer Scam Stopper? seminars, and
seminars for both disaster survivors and contractors; speeches to service groups and
organizations; publication and newsletter development and distribution; contractor
education and outreach; social media outreach to consumers, the construction industry,
and other government entities; and website and employee Intranet content, including
webcasts, video, and audio production.

DISASTER RESPONSE
CSLB?s post-disaster mission is to help ensure that home and business owners are not
harmed by unlicensed or unscrupulous contractors who might try to take advantage of
them during the rebuilding process.
During the summer and fall of 2020, California experienced another round of
devastating wildfires. Staffs multi-faceted short-term response included staffing and
supplying materials to local assistance centers, staffing a disaster hotline, and sending
outreach materials to local building departments, chambers of commerce, and local
legislative offices. This has been followed by CSLB?s longer-term outreach and
continued participation in multi-agency taskforces and enforcement efforts in the
affected areas.

Task Force Participation and Rebuilding Workshops
CSLB staff continue to participate on two multi-agency task forces established by Office
of Emergency Services ? one focused on debris removal and one focused on housing.
The task forces include representatives from local, state, and federal agencies, with the
goals of coordinating and streamlining the debris clean-up efforts, including the removal
of all hazardous waste, and addressing both short-term housing needs for survivors and
the longer-term rebuild.
On February 25, 2021, Public Affairs staff presented information at the monthly
interagency housing taskforce meeting, which included representatives from the
affected counties. The presentation included information for disaster survivors as well
as an invitation to partner with CSLB on disaster rebuilding workshops ? one for fire
survivors and one for contractors who plan to work on the rebuilding effort.
As in past years, the fire survivor workshops will include essential consumer protection
tips, information about contractor licensing and other requirements, insurance issues,
how to work with an architect, and an update on the local rebuild provided by the local
building department.

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PUBLIC AFFAIRS PROGRAM UPDATE

The contractor workshop will include a building department update on the local rebuild
and any special rules established for plan approvals and inspections. Licensing
requirements will also be covered, as will bonds and insurance, how to obtain a
workers? compensation policy, contract requirements, how to prevent complaints, and
how the selection of building materials and the choice of building methods can help
prevent future disasters.

Assistance for Licensees/Applicants
CSLB has continued its practice of waiving fees for licensees to replace their wall
certificate and/or plastic pocket license lost in a disaster. CSLB also has waived
delinquent fees for failure to renew a license before it expires for fire survivors. In
addition, CSLB has worked to expedite license applications for those planning to work in
fire areas.

VIDEO/DIGITAL SERVICES
Consumer and Licensee Tips and Applicant Videos
Public Affairs staff continue to develop a series of consumer and licensee tips videos for
promotion on social media and the CSLB website. Topics have ranged from how to
check a contractor?s license status and how to report unlicensed contracting, to building
permit requirements and information for applicants on how to access exam study
guides.
In addition, staff is also producing an ongoing live webcast of the monthly Get Licensed
to Build workshop for those interested in obtaining a contractor license. These live
webcasts have been well attended via WebEx, Facebook, and YouTube, and are also
archived on CSLB?s website.

Webcasts Produced January 2020-January 2021

Date Aired Live/Recorded Webcasts Produced
1/07/2020 Paradise (Camp Fire) Community Meeting
1/31/2020 Paradise (Camp Fire) Undercover Sting Press Conference
2/20/2020 CSLB Solar Taskforce Meeting
2/25/2020 Solar Taskforce Press Conference, Parlier
4/28/2020 CSLB Regulatory Public Hearing
5/12/2020 Get Licensed to Build Workshop
5/29/2020 Get Licensed to Build Workshop
6/05/2020 CSLB Quarterly Board Meeting
6/26/2020 Get Licensed to Build Workshop
7/24/2020 CSLB Board Meeting
8/04/2020 CSLB Solar Taskforce Meeting
9/09/2020 CSLB Board Meeting

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PUBLIC AFFAIRS PROGRAM UPDATE

10/02/2020 Get Licensed to Build Workshop
11/04/2020 CSLB Executive, Enforcement, Public Affairs, Licensing, and Legislative Committee Meetings
11/06/2020 Get Licensed to Build Workshop
12/04/2020 Get Licensed to Build Workshop
12/10/2020 CSLB Quarterly Board Meeting

Videos Created/Posted Online Between January 2020-January 2021

Date Posted Videos Created/Posted Online
1/31/2020 Paradise (Camp Fire) Undercover Sting Press Conference
2/25/2020 Solar Taskforce Press Conference, Parlier
5/06/2020 Building Permit Training Course
5/12/2020 What Seniors Should Know Before Hiring a Contractor
5/12/2020 10 Tips for Hiring a Contractor
6/17/2020 What to Expect on Test Day
7/02/2020 Rebuilding After a Disaster
8/28/2020 Watch CSLB Videos and Subscribe (YouTube Channel Trailer)
8/28/2020 Contractor Advertising Guidelines
9/24/2020 Segment for Assembly Speaker Anthony Rendon?s Public Service Announcement
10/01/2020 CSLB Quick Tips: Find My Licensed Contractor
11/03/2020 CSLB Quick Tips: Disaster Survivors ? Risks of Unlicensed Contracting
12/07/2020 CSLB Quick Tips: Check the License
12/14/2020 Building Permit Requirements During COVID-19
12/17/2020 CSLB Quick Tips: How to Report Unlicensed Contracting
1/11/2021 Get Licensed to Build Workshop

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PUBLIC AFFAIRS PROGRAM UPDATE

Social Media Highlights

Followers on CSLB?s Social Media

Twitter
Date Facebook Twitter YouTube LinkedIn Instagram Flickr
(@CSLBNews)

November 2010 86 50 – 2 – – –

November 2011 731 638 – 20 – – –

November 2012 1,139 1,040 – 282 – – –

November 2013 1,457 1,349 – 343 – – –

November 2014 1,796 1,622 – 352 – – –

November 2015 2,228 1,824 – 434 14 – –

November 2016 2,909 2,123 – 600 59 12 7

November 2017 3,312 2,405 – 702 105 99 10

November 2018 3,680 2,471 – 832 153 210 12

August 2019 4,602 2,602 (created) 955 236 399 12

November 2019 4,714 2,637 11 991 280 521 12

February 2020 4,900 2.680 20 1,042 324 648 13

July 2020 5,313 2,743 23 1,212 409 867 13

October 2020 5,452 2,792 27 1,484 449 933 12

January 31, 2021 5,509 2,804 29 1,884 492 1,038 12

 

COVID-19 Social Media Posts

PAO continued to use social media to inform licensees and consumers about the
changing availability of CSLB services because of COVID-19. Posts were used to
update the public on the reopening of test centers and front counters after several CSLB
buildings were closed because of the health emergency. Social media was also used to
prepare applicants for the COVID precautions being taken at CSLB test centers.

 

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PUBLIC AFFAIRS PROGRAM UPDATE

Disaster-Related Social Media Posts
In response to the series of wildfires
across California, CSLB used social
media to promote a January 2021
disaster outreach workshop for
contractors in Butte County. CSLB
Board Member Kevin Albanese
introduced the event, which also
included representatives from the
Department of Insurance, Butte
County Development Services, and
Valley Contractors Exchange.

Social Media Posts with the Department of Consumer Affairs
CSLB also regularly posts on its social media channels COVID-related public
information from the Department of Consumer Affairs (DCA). The number of people
reached on each post is tracked and reported to DCA regularly.

Social Media Questions on Status of CSLB Services
CSLB receives an average of 12-25 questions per week through its social media
channels. Questions typically relate to licensing, testing, and the status of CSLB
services because of COVID-19. CSLB also receives tips on suspected unlicensed
activity through social media, which are forwarded to the Enforcement Division.

NextDoor Partnership
NextDoor is a private social network for neighborhoods, which serves over 158,000
neighborhoods across the country and is used as a source of local information.

As a NextDoor public agency partner, CSLB can create targeted messages to reach
residents in communities of declared disaster areas. CSLB can currently reach all active
neighborhoods in Butte, Lake, Mendocino, Napa, Nevada, Orange, Solano, Sonoma,

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PUBLIC AFFAIRS PROGRAM UPDATE

and Yuba counties. (Recent efforts to expand CSLB?s posting capacity beyond these
counties have not been successful; NextDoor is requiring a paid contract.)
In response to the recent wildfires, CSLB issued disaster-related posts to these
neighborhood groups, which resulted in more than 415,000 impressions (the number of
times a post was seen).
Between January 1, 2020 and January 31, 2021, nearly 174,000 people joined CSLB?s
reachable NextDoor network, bringing the total number of verified residents in CSLB?s
network to 1,164,484.

Facebook
Between January 1, 2020, and January 31, 2021 CSLB reached more than 150,000
people on its Facebook page.

? Most viewed posts:
o Workers? Compensation Requirements?reached 5,703 people
o Video: CSLB Quick Tips: Check the License?reached 5,600 people
The following chart shows the daily net growth of CSLB?s Facebook page, from October
31, 2020, to January 31, 2021, during which time CSLB gained 88 likes, bringing the
total number to 4,801. The gray line represents those who have ?liked? CSLB, and the
red line represents individuals who have ?liked? CSLB at one point, but subsequently
?un-liked? CSLB. (There is no blue line, as CSLB does not pay for Facebook ?likes.?)

 

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PUBLIC AFFAIRS PROGRAM UPDATE

Twitter

CSLB manages two Twitter pages ? a media account that contains only news release
information and other items of interest to the media, and a main public account. While at
this time there are only 27 followers on the media Twitter account, it has earned more
than 45,000 impressions (the number of times a post is seen). Press releases related to
sting operations typically earn more than 1,000 impressions per tweet.
On CSLB?s main Twitter account, between January 1, 2020 and January 31, 2021,
CSLB had more than 150K impressions. In total, CSLB has 2,804 Twitter followers.
The most popular categories of Twitter posts are COVID-related service updates,
disaster recovery, sting operations, and news releases.
Top tweets:

? CSLB Test Centers will be closed due to the COVID-19 stay-at-home order?
1,527 impressions
? CSLB Licensing Workshop (Nov.) ? 1,020 impressions

YouTube Channel
CSLB?s YouTube channel continues to grow, with an increase of 875 subscribers, 4,200
hours of watch time, and 43,957 more views since January 2020.
The channel has a total of 528,284 views (31,500 hours watched) and 2,024
subscribers since the page was created in 2009.

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PUBLIC AFFAIRS PROGRAM UPDATE

 

Instagram

CSLB has 1,042 Instagram followers, an increase of more than 400 since January 1,
2020.

? CSLB?s audience is most likely to be on Instagram between 6:00 p.m. and
9:00 p.m.

Flickr
CSLB is expanding its portfolio of photographs on Flickr, a no-cost, photo-sharing social
media website.
Flickr allows PAO staff to upload and post high-resolution photos as individual
photographs or in album format. Flickr also permits professional media and industry
followers of CSLB to download photographs at the resolution level of their choosing.

As of January 31, 2021, CSLB had 372 photos available for download on Flickr.

LinkedIn
PAO actively posts current job vacancies to LinkedIn, a business-oriented social
networking site primarily used for professional networking. LinkedIn can increase
exposure and act as an effective recruiting tool to attract quality employees for CSLB
positions.

 

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PUBLIC AFFAIRS PROGRAM UPDATE

Email Alert Feature

CSLB has a website feature that allows people to subscribe to various email alerts.
Today, these choices include:

? Industry Bulletins
? Public Meeting Notices/Agendas
? California Licensed Contractor Newsletters
? News Releases/Consumer Alerts
? Surveys
? CSLB Job Openings
? Podcasts/Webcasts

The total subscriber database currently stands at 33,166 contacts.
PAO also utilizes a database consisting of email addresses voluntarily submitted on
license applications and renewal forms. This database now consists of addresses for
115,260 licensees, which brings the combined database contacts to 148,426 email
addresses.

In January 2021, PAO worked with Information Technology (IT) and DCA?s Office of
Information Services to update the licensee list and create a new list with email
addresses for Home Improvement Salespersons (HIS).

 

 

 

 

 

 

 

 

 

 

 

175

PUBLIC AFFAIRS PROGRAM UPDATE

Industry Meeting CLC News Job
Date Surveys Podcasts HIS
Bulletins Notices Newsletter Releases Openings

May 2010 185 187 103 277 57 – –

May 2011 2,390 1,531 3,141 2,361 137 – –

May 2012 4,387 2,879 5,212 4,015 284 – –

May 2013 5,089 3,341 5,975 4,660 398 – –

May 2014 6,027 4,017 6,947 5,538 476 – –

May 2015 6,459 4,273 7,293 5,852 591 – –

May 2016 6,866 4,479 7,575 6,096 673 17 –

May 2017 7,410 4,573 7,857 6,468 760 305 –

May 2018 7,525 4,653 8,017 6,720 843 462 –

May 2019 7,923 4,783 8,210 6,962 976 647 –

May 2020 8,214 5,012 8,601 7,267 1,112 906 –

August 2020 8,378 5,111 8,704 7,378 1,197 972 –

November 1, 7,579 5,283 8,869 7,505 1,288 1,081 336 –
2020

January 31, 7,769 5,511 9,065 7,652 1,396 1,217 547 20,032
2021

MEDIA RELATIONS
Media Calls
Between January 1, 2020 and January 31, 2021, PAO staff responded to 53 media
inquiries, providing information and/or interviews to a variety of media outlets. Since the
COVID-19 health emergency began in March 2020, PAO has responded to 28 media
inquiries.

176

PUBLIC AFFAIRS PROGRAM UPDATE

INDUSTRY/LICENSEE OUTREACH
Industry Bulletins
Between January 2020 and January 31, 2021, CSLB issued 29 industry bulletins and
email updates sent out on an as-needed basis to over 7,500 people who signed-up via
CSLB?s Email Alert System. Topics included COVID impacts on service, CSLB?s new
online license renewals, personal protective equipment (PPE) donations that
contractors can make to help medical professionals during COVID, the laws regarding
advertisements on commercial vehicles, and CSLB?s new online payment system for
citations.
Industry Bulletins Distributed
January 1, 2020 ? January 31, 2021
Date
Industry Bulletin Title
Distributed
1/03/2020 CSLB Announces New Renewal Fee Schedule
Affirming California?s Restrictions on Lead Generation and Solar Broker Services in the Residential Solar
1/09/2020
Industry
1/16/2020 CSLB Sting Locations Needed Ahead of Spike in Spring Building and Renovation
1/29/2020 2020 Edition of California Contractors License Law & Reference Book Now Available
Contractors State License Board Closing its Test Centers Statewide in Response to COVID-19 Health
3/18/2020
Emergency
3/24/2020 CSLB Encourages COVID-19 Donations to Hospital Health Providers
3/24/2020 CSLB Provides COVID-19 Service Update Answers to Frequently Asked Questions
3/25/2020 CSLB Updates Licensees on Building Permit Requirements During COVID-19 Outbreak
4/08/2020 Contractors State License Board Launches New Online License/Registration Renewal Options
Contractors State License Board Cautions Licensees to Watch for Online Scams Related to Economic
5/08/2020
Impact Payments
6/09/2020 Contractors State License Board Elects Officers for 2020-21
6/12/2020 Contractors State License Board Ready to Reopen Test Centers
6/29/2020 Contractors State License Board Ready to Reopen Test Centers
7/02/2020 New Law Changes How the Contractors State License Board Reviews License Applicants? Criminal History
Contractors State License Board Launches Online Renewal Option for Home Improvement Salespersons
7/23/2020
(HIS)
Contractors State License Board Encourages Contractors to Take Advantage of Earthquake Brace Bolt
8/11/2020
Program
Contractors State License Board Calls on Contractors to Conserve Electricity as Heatwave Increases
8/18/2020
Demand Statewide
9/03/2020 CSLB Releases Latest List of Revoked Licenses
Contractors State License Board Encourages Contractors to Take Special Care of Vehicles During Wildfire
9/14/2020
Season
Contractors State License Board Reminds Contractors to Include License Number on Vehicles and
9/21/2020
Advertisements
Contractors State License Board Reminds Licensees about the Importance of Following Home
11/25/2020
Improvement Contract Requirements for Solar Jobs
Contractors State License Board Closing Test Centers and Public Counters Statewide in Response to
12/07/2020
COVID-19 Health Emergency
12/10/2020 Brush-Up on New Contracting Laws that Come into Play January 1, 2021

177

PUBLIC AFFAIRS PROGRAM UPDATE

12/17/2020 Governor Newsom Announces COVID-19 Tax Relief, Grants, and Loans for Business Owners
Expedited Review of CSLB Contractor License Applications for Refugees, Asylum Seekers, and Holders of
1/11/2021
Special Immigrant Visas Under New Law
1/20/2021 CSLB Launches Online Payment for Citations
1/20/2021 CSLB Reopening Test Centers and Public Counters February 1st

PUBLICATION/GRAPHIC DESIGN SERVICES
Between January 1, 2020 and January 31, 2021, PAO?s Graphic Design unit completed
the following projects:

Employee ID Photo Shoot
? Photo shoot for new employee identification cards (these sessions are currently
on-hold).

Publications

Publications
2019 Accomplishments & Activities Report
2020 Board Member Administrative Procedures Manual
Get Licensed to Build: A Guide to Becoming a California Licensed Contractor
Terms of Agreement: Consumer?s Guide to Home Improvement
What Seniors Should Know Before Hiring A Contractor
What You Should Know Before Hiring A Contractor (English & Spanish)
10 Tips: Make Sure Your Contractor Measures Up (English & Spanish)
Description of Classifications (English & Spanish)
Mandatory Arbitration Program Guide (English & Spanish)
Voluntary Arbitration Program Guide (English & Spanish)
Senior Scam Stopper? Mailers
June 5, 2020 Quarterly Board Meeting Packet (Teleconference)
July 24, 2020 Quarterly Board Meeting Packet (Teleconference)
September 9, 2020 Quarterly Board Meeting Packet (Teleconference)
November 4, 2020 Committee Meeting Packet (Teleconference)
December 10, 2020 Quarterly Board Meeting Packet (Teleconference)

Posters/Signs/Misc.
? ePayment Kiosk signs (front counter)
? Executive staff and Board member contact cards
? Certificates of Recognition

178

PUBLIC AFFAIRS PROGRAM UPDATE

Workshop/Podcast

? Get Licensed to Build workshop and podcast logo

COVID 19/Social Distancing Materials (Testing
Center/Front Counter/Field Offices)
? CSLB Visitor Protocol Poster
? CSLB Public Counter Closure & Remote Services Poster
? Examination Day Protocol ? COVID-19 Safety Measures Mailer
? Examination Day Protocol ? COVID-19 Safety Measures Posters
? Unavailable Payment Kiosks & Available Payment Options Poster
? Testing Candidates Closure Notification Signage
? Directional/Exit Signage

Disaster/Wildfire Materials
? Check A Contractor License flyer
? Find My Licensed Contractor flyer
? CSLB Contact Info flyer/tabletop signs
? ?Homeowner Beware? & ?Contractor
Beware? disaster ?H? (stake) signs

2021 California Contractor License Law & Reference Book

Public Affairs coordinated the publishing of the 2021 edition of
the California Contractor License Law & Reference Book, which
became publicly available in January 2021.

 

California Licensed Contractor Newsletter
? Production of the California Licensed Contractor newsletter (winter edition) was
on schedule to be published February 2021.

179

PUBLIC AFFAIRS PROGRAM UPDATE

WebEx Backgrounds
? Virtual backgrounds for CSLB WebEx meetings/events

 

CONSUMER/COMMUNITY OUTREACH
The Public Affairs Office is currently spearheading a number of outreach efforts. These
initiatives include:
1. New program to promote the recently-approved B-2 license classification
2. New online ?Get Licensed to Build? applicant workshops
3. New program focused on minorities and low-income communities
4. New program focused on women in construction
5. Ongoing Senior Scam StopperSM and Consumer Scam StopperSM seminars

Creation of New B-2 Licensing Classification
Creation of the new B-2 Residential Remodeling classification is expected to bring a
significant number of people into the licensing population, most notably those who may
not have the experience to qualify for a B-General Building license because they lack
substantial framing or rough carpentry experience.
Since this is a new classification, PAO is working with Licensing and IT division staff to
develop an outreach plan and timeline. That plan will include development of
educational materials, significant updates to the CSLB website, and training sessions
and/or webcasts. It is possible a second applicant workshop could be created dealing
solely with the process and requirements to apply for the new B-2 license.

180

PUBLIC AFFAIRS PROGRAM UPDATE

?Get Licensed to Build? Online Workshop
In May 2020, PAO staff created and launched an
entirely new online version of its licensing workshop,
for those interested in learning about how to get their
contractor license. The new version of the workshop
was titled ?Get Licensed to Build.? To date, 10 online
workshops have been conducted, with an average
attendance of more than 300.
The workshop, which is conducted on the first Friday of each month, runs two hours and
includes time for an extensive question and answer segment. The event takes place on
WebEx and also streams live on YouTube and Facebook.
Board Members Johnny Simpson, David De La Torre, and Susan Granzella have
participated in past workshops, offering on-camera welcomes to the participants.

CSLB staff have also created a short PSA to promote the workshop on social media.

181

PUBLIC AFFAIRS PROGRAM UPDATE

Underrepresented Communities
A number of communities are underrepresented in California?s construction industry. In
response, CSLB?s registrar has assigned staff to begin exploring what CSLB can and
should do to help encourage people in these communities to get a contractor license.
Staff continues to gather information to identify and contact potential partners with the
intent of seeing how CSLB can promote or support outreach programs that already
exist.

Minorities and Low-Income
An investigator from the Enforcement division has been selected to participate and
contribute to this outreach effort. A series of virtual workshops have been held with the
JTM Pre-Apprenticeship Academy and Los Angeles Urban League.
December 12, 2020, staff met virtually with academy students for a brief introduction
and to invite students to attend the workshop series.
January 16, 2021, staff hosted a virtual ?Who, What, Where and Why? workshop
focusing on contracting and CSLB. This event gave students an introduction and
overview of CSLB and helped answer basic questions about the licensing process.
January 30, 2021, staff attended a workshop with licensed contractors who offered
detailed insight about the profession and shared their experiences with being a licensed
contractor. Staff were there to answer questions about CSLB.

Senior Scam Stopper? Seminars
In mid-March 2020 CSLB suspended its
popular Senior Scam Stopper? (SSS)
seminars due to continuing concerns about
the spreading COVID-19. CSLB has now
moved to telephone town halls and virtual
seminars via Zoom and Facebook Live.
CSLB?s first virtual seminar was held in May.
CSLB will resume offering in-person SSS
seminars as soon as health concerns subside.
In the meantime, CSLB has several virtual seminars scheduled through the spring.

182

PUBLIC AFFAIRS PROGRAM UPDATE

The following seminars were conducted or scheduled through May 2021.

Date Location Legislative/Community Partner(s)
January 10, 2020 Poway Asm. Brian Maienschein
January 14, 2020 Walnut Creek (Rossmoor) Asm. Rebecca Bauer Kahan
January 16, 2020 Antioch Asm. Jim Frazier
January 24, 2020 Lakewood Asm. Speaker Anthony Rendon
February 7, 2020 Paramount Asm. Speaker Anthony Rendon
February 12, 2020 Lodi Asm. Jim Cooper
February 19, 2020 Menifee Menifee Senior Advisory Committee
February 20, 2020 Menifee Menifee Senior Advisory Committee
March 11, 2020 Claremont Asm. Chris Holden
May 27, 2020 Zoom/Facebook Live Speaker Pro Tem Kevin Mullin
August 5, 2020 Zoom Realtor Dayna Wilson
August 14, 2020 Zoom/Facebook/YouTube Asm. Cottie Petrie Norris
August 21, 2020 Phone Asm. Al Muratsuchi
September 24, 2020 Zoom Asm. Adrin Nazarian
November 10, 2020 Zoom Riverside County CARE Team
November 17, 2020 Zoom Asm. Timothy Grayson
November 19, 2020 Zoom Sen. Richard Roth
January 14, 2021 Zoom Asm. Shirley Weber
February 9, 2021 Zoom Asm. Tasha Boerner Horvath
February 23, 2021 Zoom Asm. Richard Bloom
March 5, 2021 Zoom Asm. Sharon Quirk-Silva
March 12, 2021 Zoom Asm. Joaquin Arambula
April 9, 2021 Zoom Asm. Brian Maienschein
May 21, 2021 Zoom Asm. Steven Choi
TBA Zoom Asm. Evan Low
TBA Zoom Sen. Tom Umberg

183

PUBLIC AFFAIRS PROGRAM UPDATE

INTRANET/EMPLOYEE RELATIONS
Intranet (CSLBin)
CSLBin is the employee-only Intranet site. Stories and
photos highlight employee and organizational
accomplishments. In addition to employee news, the
site is also kept up-to-date with the latest forms,
policies, reports, and other information used by CSLB
staff around the state.
Between January 1, 2020 through January 31, 2021, PAO published 42 stories on the
employee intranet. These stories and publish dates are as follows:
Employee Intranet Stories Published January 1, 2020 ? January 31, 2021
Date
Story Title
Published
1/28/2021 Test Center & Front Counter Staff Preparing for February 1st Re-Opening
1/14/2021 Chief of Enforcement and Longtime CSLB Employee Retires after 35 Years of State Service
12/18/2020 Career Development and Mentoring Program Update
12/18/2020 A Special Holiday Message from CSLB’s Registrar
12/09/2020 Tune-In Tomorrow to our Quarterly Board Meeting
12/2/2020 Demetria Poole Retires after 27 years with CSLB
11/09/2020 Staff Shares Halloween Photos of their Family and Decorations!
11/03/2020 Tune-In Tomorrow to CSLB?s Committee Meetings!
10/28/2020 Halloween Costume Photo Submission!
10/08/2020 Virtual Backgrounds Now Available to Staff
10/07/2020 Help Us Help You with Career Development!
10/05/2020 Making Changes to Your Health Coverage? Here’s What You Need to Know
10/05/2020 Welcome CSLB’s Newest Board Member, Michael Mark
09/24/2020 CSLB Welcomes New Board Member, Rodney Cobos
09/18/2020 Business Services Employees Work Hard to Provide Vital Services
09/08/2020 CSLB’s Virtual Quarterly Board Meeting Announcement
09/08/2020 Northern SWIFT Shares Images from LNU Complex Fire Burn Area
09/08/2020 CSLB Staff Steps-Up to Help Residents in Wildfire Areas
08/21/2020 CSLB Staff Reminders for Wildfire Season
08/19/2020 New Licensee Member Joins Board
07/24/2020 CSLB Welcomes New Board Member and Celebrates Reappointment of Another
07/23/2020 Watch a Live Stream of CSLB?s July Board Meeting
07/14/2020 CSLB Recognizes Employee with 33 Years of Outstanding Service
07/01/2020 CSLB Reopens Public Counters with COVID-19 Precautions
06/29/2020 Testing Chief retires after 35 years at CSLB
06/17/2020 Contractors State License Board Elects 2020-21 Officers
06/16/2020 CSLB Test Centers Reopen Thanks to Hardworking Staff
05/18/2020 CSLB Staff Recipes Now Accessible on Employee Intranet

184

PUBLIC AFFAIRS PROGRAM UPDATE

05/01/2020 CSLB Management Thanks Staff: Check Morning Briefing Emails for Important Updates
03/24/2020 CSLB Does Its Part to Help Hospitals During COVID-19 Emergency
03/12/2020 CSLB Norwalk Employees Step Up to Help Future Licensees
03/06/2020 Coronavirus Answers for Staff
03/05/2020 Spring 2020 Licensee Newsletter Available Now
03/02/2020 Biking to Work Can Earn You Lunch Money Every Month
02/11/2020 Did You Know…
02/05/2020 Hardworking Staff Help Paradise Homeowners
01/22/2020 CSLB Welcomes New IT Chief Jason Perez
One of CSLB?s Newest Board Members Among Those Celebrating Graduates from the 18th CSLB
01/13/2020
Enforcement Academy
01/10/2020 New Rules for Recycling at CSLB Headquarters

185
186
AGENDA ITEM H

Legislation

187
188
AGENDA ITEM H-1

Legislative Overview

a. Review, Discussion, and Possible Action to
Amend Legislative 2019-21 Strategic Plan

189
190
EGISLATION IVISION VERVIEW
L D O

LEGISLATION DIVISION OVERVIEW

CSLB?s Legislative division engages in the regulatory and legislative processes to
advise the board on relevant legislation, advocate for the board?s approved legislative
proposals, and facilitate the board?s administrative rulemaking priorities. In addition, the
division sponsors legislation and screens all bills introduced by the Legislature to
determine if they will affect the board, consumer protection, or the state?s construction
industry. The division also prepares and submits reports or studies that are requested
by the Board or required by the Legislature.

LEGISLATION
? Represent CSLB with legislators, legislative committees, and other state
agencies.
? Analyze legislation to assess its impact on Board operations.
? Identify the need for legislation, review and approve recommended alternatives,
and strategies for potential legislative proposals and legislative language.
? Secure legislative bill authorship and assist with legislative presentations.
? Accept or reject proposed legislative modifications.
? Provide technical input on legislation affecting CSLB?s practice act.
? Negotiate amendments to the satisfaction of the board.
? Meet with sponsors of bills to discuss and resolve issues.
? Coordinate support for CSLB legislation and ensure proactive positions on
legislation that affect CSLB.
? Sustain cooperative relationships with industry groups, industry representatives,
regulatory agencies, the State Legislature, and the general public.
? Coordinate meetings of stakeholder and industry groups to seek input on
legislative issues.
? Respond to legislator constituent inquiries on behalf of CSLB.
? Provide testimony before the Legislature on bills the Board has taken a position
on or on budget issues.
REGULATIONS
? Prepare and submit regulatory packages for board approval.
? Ensure proposed regulations meet requirements of the Administrative Procedure
Act (Act).
? Following Board approval of a proposed rulemaking, coordinate with the
Department of Consumer Affairs to ensure completion of all four stages of the
regulatory process (concept, production, initial submission, final submission).
? Preparing hearing and regulatory notices and files for the Office of Administrative
Law and set-up hearings in accordance with the Act and related regulations.

191

LEGISLATION DIVISION OVERVIEW

RECENT REPORTS AND STUDIES
? Senate Bill 465 (Hill) Settlement Reporting Study
https://www.cslb.ca.gov/Resources/Reports/SB_465_Report.pdf
? Sunset Review Report (assistance and review)
https://www.cslb.ca.gov/Resources/Reports/Sunset/SunsetReviewReport2018.pd
f
? Battery Energy Storage Systems Report
https://www.cslb.ca.gov/Resources/BoardPackets/ESS_Report_revised.pdf
? Mandatory Workers? Compensation for Certain License Classification (A Staff
Report)
https://www.cslb.ca.gov/Resources/BoardPackets/2020/BoardPacket09092020.p
df (page 95)
? Senate Bill 610 (Glazer) License Bond Study
https://www.cslb.ca.gov/Resources/Reports/SB610STUDY.pdf

192
2019-21 STRATEGIC PLAN ? LEGISLATIVE OBJECTIVES

2019-21 Strategic Plan ? Legislative Objectives

Item 3.1

Description: Collaborate annually with industry and consumer leaders to share new legislative ideas.
Target Date: January 2019 ? November 2019 (annually thereafter)

Current Status: Three meetings held in April and May 2019 with industry on legislation or regulation
centered on: energy storage systems; workers? compensation for specified license classifications; and
home improvement contract requirements. Additional stakeholder meeting held January 2020 on
mandatory workers? compensation for additional classifications.

Item 3.2

Description: Seek legislation to mandate workers? compensation insurance for specified license
classifications to protect workers and consumers. (Statutory)

Target Date: July 2021

Current Status: First stakeholder meeting held in April 2019; proposed classifications subject to this
requirement revised; additional stakeholder meeting held January 2020 and legislative proposal
approved for authorship at September 2020 board meeting. Author secured; Senate Bill 216 introduced
in the Legislature on January 13, 2021.

Item 3.3

Description: Review disaster-related consumer protection laws, including the hazardous substances
certification requirements.

Target Date: October 2021

Current Status: Provided technical assistance to author of SB 1189 to extend home improvement
contract provisions to disaster rebuilds. Possible additional regulatory or statutory changes will be
considered for a future Legislative Committee Meeting.

Item 3.4

Description: In conjunction with the Licensing division, review multiple qualifier responsibilities and
bonding requirements to determine if regulatory or legislative changes will improve consumer
protection.

(See Licensing objective 1.5)

Target Date: January 2021
Current Status: Bond study on sufficiency of $15,000 contractor license bond completed, which
included an analysis of the qualifier bond concerns; submitted for committee review on November 4,

193
2019-21 STRATEGIC PLAN UPDATE

2020; approved by the full board at its December 2020 meeting; submitted to Legislature December
23, 2020.

Item 3.5

Description: Clarify home improvement contract requirements to improve licensee understanding and
compliance. (Statutory)
Target Date: October 2021.

Current Status: First of multiple stakeholder meetings held in April 2019. As a result of unanticipated
delays in various projects following the COVID-19 pandemic, the project has been delayed. The next
stakeholder meeting is tentatively scheduled for May 2021, with a draft proposal for committee review
by the summer of 2021.

Item 3.6

Description: Review laws and update penalties as necessary to ensure they are adequate for the
violations, to encourage compliance and protect consumers. (Regulatory and Statutory)
Target Date: December 2021.

Current Status: Assembly Bill 569 (Grayson) was introduced this session.

Item 3.7

Description: Clarify in regulation (CCR section 825) the definition of foreperson, supervising
employee, and contractor to provide applicants greater clarity about the experience needed to obtain a
license. (Statutory)

Target Date: June 2021

Current Status: The board voted at its December 2020 meeting to make this strategic plan item a
statutory proposal rather than a regulatory proposal. Staff will present a legislative proposal to the
committee in the summer of 2021.

Item 3.8

Description: Research the feasibility of a graduated fee increase for larger licensed contractors to
increase enforcement resources and public outreach.

Target Date: September 2021

Current Status: The issue of graduated (or higher) fee increases for larger licensed contractors is
comprehensively reviewed in the fee study prepared by Cooperative Personnel Services and approved
by the board at the December 2020 meeting.

 

194
AGENDA ITEM H-2

Update on Previously Approved
Legislative Proposals

a. SB 216 (Dodd) Contractors: workers?
compensation insurance: mandatory coverage

b. AB 246 (Quirk) Contractors: disciplinary actions

c. AB 569 (Grayson) Contractors: civil penalties:
letters of admonishment

195
196
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: SB 216 (Dodd)
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB216

STATUS/LOCATION (as of 3.2.2021): Set for hearing in Senate Committee on
Business and Professions on March 8, 2021

SPONSOR: Contractors State License Board

SUBJECT: Contractors: workers? compensation insurance: mandatory coverage

CODE SECTION: Amend, repeal, and add ?? 7125 and 7125.4 of the Business and
Professions Code

SUMMARY: Would preclude CSLB from accepting certificates of exemption from
workers? compensation insurance from licensed C-8 Concrete, C-20 HVAC, and D-49
Tree Service contractors in the first year and from all contractors in three years,
requiring that all contractors have a certificate of workers? compensation insurance on
file by 2025.

EXISTING LAW: Requires every licensed contractor, or applicant for licensure, have on
file with CSLB a current and valid Certificate of Workers? Compensation Insurance or
Certification of Self-Insurance. Contractors can file a certificate of exemption, certifying
that they have no employees and are not required to obtain or maintain workers?
compensation insurance. Existing law requires C-39 Roofing contractors with an active
license to have a valid Certificate of Workers? Compensation Insurance at all times,
whether or not they have employees.

THIS BILL: Would include the C-8 Concrete, C-20 HVAC, and D-49 Tree Service
contractor licenses as those, along with the C-39 Roofing contractor, who must always
have a Certificate of Workers? Compensation Insurance on file with CSLB. The bill
further provides that by 2025, CSLB would no longer accept a certificate of exemption
from workers? compensation insurance, thereby requiring that all contractors with an
active license have a certificate of insurance on file by 2025.

COMMENT/ANALYSIS: Despite years of enforcement efforts, the number of workers?
compensation exemptions on file with CSLB, and the number of contractors in violation
of the workers? compensation laws remains consistent. CSLB research confirms that
many of the approximate 50 to 60 percent of licensed contractors who currently claim
an exemption, do have employees. There is a demonstrated problem of contractors
employing workers without providing workers? compensation insurance coverage. This
problem creates an unfair competitive disadvantage for law-abiding contractors who are
subject to higher business costs and puts employees and the public at risk for
workplace injuries. This bill will eliminate that problem.

197
LEGISLATIVE BILL ANALYSIS

STAFF RECOMMENDATION: UPDATE ONLY. This is a CSLB-sponsored measure.

On February 4, 2021, the CSLB Legislative Committee voted to recommend a position
of ?support? to the full Board. On February 10, 2021 the Chair of the Legislative
Committee, with Board Chair approval, authorized staff to submit a letter of ?support? of
this measure to the Legislature.

198
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 246 (Quirk and Mathis) (Coauthors Bauer-Kahan and Lee)
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB246

STATUS/LOCATION (as of 3.2.2021): Referred to Asm. B&P on January 28, 2021

SPONSOR: Contractors State License Board

SUBJECT: Contractors: violations: disciplinary actions

CODE SECTION: Amend Business and Professions Code ? 7110

SUMMARY: Would make a licensed contractor?s unlawful dumping of construction
debris a cause of disciplinary action against the contractor.

EXISTING LAW: Provides in Business and Professions Code (BPC) ? 7110 that CSLB
can discipline a licensed contractor for several violations of California statutes that are
not part of Contractors State License Law.

THIS BILL: Would add to BPC ? 7110 a requirement that a contractor?s violation of local
or state dumping laws is a cause of discipline under Contractors State License Law.

COMMENT/ANALYSIS: CSLB?s enforcement of this law, should it pass, will require
evidence similar to that needed to support an administrative action for a licensed
contractor?s failure to comply with building code requirements, i.e., evidence that an
existing city, county, or state dumping law has been violated.

FISCAL IMPACT: Minor and absorbable.

STAFF RECOMMENDATION: UPDATE ONLY. This is a CSLB-sponsored measure.

On February 4, 2021, the CSLB Legislative Committee voted to recommend a position
of ?support? to the full Board. On February 23, 2021 the Chair of the Legislative
Committee, with Board Chair approval, authorized staff to submit a letter of ?support? of
this measure to the Legislature.

199
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 569 (Grayson)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB569

STATUS/LOCATION (as of 3.2.2021): Referred to Asm. Comm. on B&P as well as
Asm. Comm. on Judiciary on February 18, 2021

SUBJECT: Contractors: civil penalties: letters of admonishment

CODE SECTION: Amend Business and Professions Code ?? 7099.2 and 7099.9.

SUMMARY: Increases to $8,000 the maximum civil penalty CSLB can assess against a
contractor for most violations, and to $30,000 for the most serious violations. Authorizes
CSLB to issue a Letter of Admonishment for more than one violation at a time.

EXISTING LAW: Provides that CSLB shall not issue a civil penalty greater than $5,000
for most violations, and not greater than $15,000 for serious violations (aiding and
abetting an unlicensed contractor and contracting with an unlicensed contractor).

COMMENT/ANALYSIS: The increases in the civil penalties proposed by this bill are
based on increases in the Consumer Price Index in the years since these amounts were
last increased (2003 for the $5,000 violations and 1992 for the $15,000 violations).
These penalties amounts are no longer commensurate with the cost of prosecuting and
defending these violations. This bill additionally adds a contractor?s filing with the Board
a false certificate of insurance or certificate of exemption among the violations that are
assessed the higher civil penalty of $30,000, to reflect the seriousness of this violation.

Finally, the bill also increases the number of violations for which the Board can issue a
Letter of Admonishment to a contractor as a non-disciplinary alternative to a citation.

STAFF RECOMMENDATION: UPDATE ONLY. This is a CSLB-sponsored measure.

On February 4, 2021, the CSLB Legislative Committee voted to recommend a position
of ?support? to the full Board. On February 23, the Chair of the Legislative Committee,
with Board Chair approval, authorized staff to submit a letter of ?support? of this
measure to the Legislature.

200
AGENDA ITEM H-3

Review, Discussion, and Possible Action
on 2021-22 Pending Legislation

a. Bills Related to CSLB?s $500 Minor Work Exemption
i. AB 899 (Cunningham) Contractors: Unlicensed Work:
Inflation Adjustment
ii. SB 304 (Archuleta) Contractors: Exemptions
b. Bills Related to Reducing Barriers to Licensure
i. AB 646 (Low) Department of Consumer Affairs:
Boards: Expunged Convictions
ii. AB 1026 (Smith) Business Licenses: Veterans
iii. AB 1386 (Cunningham) License Fees:
Military Partners and Spouses
c. Bills Related to Other Construction Related Issues
i. AB 484 (Medina) Alarm Company Operators: Advertisements
ii. AB 1124 (Friedman) Solar Energy Systems
iii. AB 1129 (Frazier) Home Inspectors License Law
iv. AB 1136 (Rivas) Property Assessed Clean Energy Program:
Enforcement: Ancillary Relief
v. SB 430 (Borgeas) Small Businesses: Reduction or Waiver
of Civil Penalties for Violation of Regulations or Statutes
vi. SB 772 (Ochoa Bogh) Professions and Vocations: Citations:
Minor Violations

201
202
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 899 (Cunningham)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB899

STATUS/LOCATION (as of 3.4.2021): Referred to Asm. B&P on February 25, 2021

SUBJECT: Contractors: Unlicensed Work: Inflation Adjustment

CODE SECTION: Amend Business and Professions Code (BPC) ? 7027.2

SUMMARY: Authorizes CSLB to annually, by regulation, adjust the $500 ?minor work?
exemption from the Contractor?s Law according to changes in the CPI or COLA.

EXISTING LAW: A contractor?s license is not required for construction projects that
cost less than $500 in labor and materials combined; this is commonly referred to as the
?minor work exemption.?

THIS BILL: Requires the board to annually adjust the $500 amount by regulation to
reflect the rate of inflation, as measured by the Consumer Price Index or another means
of measuring inflation that CSLB determines is ?reliable and generally accepted.?

COMMENT/ANALYSIS: The $500 exemption was last increased in 1998. In 2019,
CSLB approved a legislative proposal to raise the $500 exemption to $1,000. However,
at the June 2020 meeting of the Board, staff updated members about opposition
received to the proposal. The concerns focused on raising the threshold for unlicensed
practice that may provide an avenue for employers to circumvent tax withholding and
workers compensation insurance requirements in the developing ?gig? economy. The
proposal was tabled at the outset of the pandemic and the Board has not readdressed it
since.

STAFF RECOMMENDATION: NEUTRAL OR ?WATCH.? Issues for Board to Consider:

? The legislature recently enacted a Residential Remodeling Contractor?s license to
reduce barriers to licensure for applicants who perform multiple residential
construction trades but do not have structural framing experience. CSLB plans to
accept applications for this license in late summer of 2021. This provides a new
avenue to licensure for applicants who perform lower cost projects in the home.

? Currently, the regulatory process requires more than a year to complete. That may
be a consideration for any bill requiring CSLB commence an annual rulemaking.

203
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: SB 304 (Archuleta)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB304

STATUS/LOCATION (as of 3.4.2021): Hearing in Senate Committee on Business and
Professions on March 8, 2021 canceled at the request of the author.

SPONSOR: California Association of Realtors

SUBJECT: Contractors: exemptions

CODE SECTION: Amend ? 7048 of the Business and Professions Code

SUMMARY: Increases the ?minor work? exemption from $500 to $1,000.

EXISTING LAW: A contractor?s license is not required for construction projects that
cost less than $500 in labor and materials combined; this is commonly referred to as the
?minor work exemption.?

COMMENT/ANALYSIS: The $500 exemption was last increased in 1998. In 2019,
CSLB approved a legislative proposal to raise the $500 exemption to $1,000. However,
at the June 2020 meeting of the Board, staff updated members about opposition
received to the proposal. The concerns focused on raising the threshold for unlicensed
practice that may provide an avenue for employers to circumvent tax withholding and
workers compensation insurance requirements in the developing ?gig? economy. The
proposal was tabled at the outset of the pandemic and the Board has not readdressed it
since.

STAFF RECOMMENDATION: NEUTRAL OR ?WATCH.? Issues for Board to Consider:

? The legislature recently enacted CSLB?s legislative proposal creating a Residential
Remodeling Contractor?s license to reduce barriers to licensure for applicants who
perform multiple residential construction trades but do not have structural framing
experience. CSLB plans to accept applications for this license in late summer of
2021. This provides an avenue to licensure for applicants who perform lower cost
projects in the home.

? The author?s fact sheet states that the $500 limit ?creates severe limitations for
unlicensed handypersons as to what construction work they may perform under this
exemption, as prices for materials and labor have increased significantly in the last
23 years.?

204
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 646 (Low) (Coauthor Sen. Roth)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB646

STATUS/LOCATION (as of 3.3.2021): Referred to Asm. B&P on February 25, 2021

SPONSOR: Author-sponsored

SUBJECT: Department of Consumer Affairs: boards: expunged convictions

CODE SECTION: Add ? 493.5 to the Business and Professions Code (BPC)

SUMMARY: Authorizes CSLB to collect a $50 fee for the cost of either removing
information about a conviction from its website or posting on a contractor?s online
license information that a conviction has been expunged.

EXISTING LAW: Authorizes CSLB to disclose on its public website the reason a
contractor?s license was revoked. In the case of a criminal conviction, CSLB would post
that the contractor was disciplined for a violation of BPC ? 7123, ?conviction of a
substantially related crime.?

THIS BILL: For any contractor whose license was revoked for a conviction of a
substantially related crime, and who supplies CSLB with proof that the conviction was
expunged, this bill would require CSLB do one of two things: (1) post the expungement
order on its website if the contractor reapplies for licensure or becomes relicensed; or
(2) remove the posting of a revocation for BPC ? 7123 if the contractor is not currently
licensed and does not reapply for licensure.

COMMENT/ANALYSIS: This bill only applies to contractors whose licenses were
revoked due to a construction related conviction and who provide CSLB proof that the
conviction was expunged. Expungement tends to be for less serious crimes, as many
serious crimes in California do not qualify for expungement under Penal Code section
1203.4.

FISCAL IMPACT: Positive fiscal, but minimal. The bill allows CSLB to charge $50 (or
another amount it deems appropriate) for the cost of processing the expungements. In
2019 there were 94 accusations that included a violation of BPC 7123, and there were
50 in 2020. Assuming 25% of these revoked licensees provide their expungement
record to CSLB, this could be around $1,000 a year revenue to the CSLB special fund.

STAFF RECOMMENDATION: SUPPORT. This bill is intended to remove barriers to
licensure for persons who are rehabilitated, to encourage entry into the workforce and
reduce the risk of recidivism. This is consistent with the Licensing Division Strategic
Plan objective 1.4 to review barriers to licensure regarding criminal background
information.

205
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 1026 (Smith)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1026

STATUS/LOCATION (as of 3.4.2021): Introduced February 18, 2021

SPONSOR: Author-sponsored

SUBJECT: Business licenses: veterans

CODE SECTION: Amend Business and Professions Code ? 115.4

SUMMARY: Requires CSLB provide a 50% reduction in the initial license fee for
honorably discharged active-duty members of the United States Armed Forces or the
California National Guard.

EXISTING LAW: Requires DCA boards and bureaus to expedite the initial license
process for an applicant who has served as an active-duty member of the Armed
Forces of the United States and was honorably discharged.

THIS BILL: Includes those who served in the California National Guard among the
individuals described above. Provides for a 50% fee reduction in the initial license fee
upon proof of the honorable discharge of any such individuals applying for a license.

COMMENT/ANALYSIS: The author?s fact sheet for the bill states, ?Veterans face
numerous challenges when transitioning from active duty to the civilian workforce. Initial
licensing fees for boards within the Department of Consumer Affairs (DCA) can prove
burdensome, especially for lower income veterans.?

FISCAL IMPACT: Preliminary numbers indicate the CSLB receives approximately 100
Armed Forces applicants a year. At current initial license fee levels, if all such applicants
received a 50% fee reduction, the impact is approximately $10,000 per year.

STAFF RECOMMENDATION: NEUTRAL OR ?WATCH.? Issues for Board to Consider:

? This bill is presented for the Board?s information because there is a fiscal impact,
and so that the Board may be aware of the Legislature?s recent bi-partisan efforts to
reduce barriers to licensure for members of the Armed Forces.

? For the Board?s information, two other current measures, AB 107 (Salas) and AB
225 (Gray, Gallagher, Patterson), would both require CSLB to issue a license (after
appropriate investigation) to applicants who are honorably discharged, or who are in
a relationship with an active-duty member, and hold an active license in another
state. AB 107 and AB 225 do not ask CSLB to waive or reduce any fees.

206
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 1386 (Cunningham)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1386

STATUS/LOCATION (as of 3.4.2021): Introduced February 19, 2021

SPONSOR: Unknown, fact sheet not provided by author?s office as of this writing

SUBJECT: License fees: military partners and spouses

CODE SECTION: Amend Business and Professions Code ? 115.5

SUMMARY: Requires CSLB to waive the initial license fee for an applicant who is in a
relationship with an active-duty member of the Armed Forces of the United States and
who holds a license in another state.

EXISTING LAW: Provides that a Board within the Department expedite the licensure
process for an applicant who is in a domestic partnership or other legal union with an
active-duty member of the Armed Forces of the United States, who is assigned to a duty
station in California, under official active-duty military orders, and who holds an existing
license in another state.

THIS BILL: Provides that for the individuals described above who apply for a license
with CSLB, that CSLB waive the initial license fee.

COMMENT/ANALYSIS: The board currently expedites the licensure process for military
personnel. This bill would have minimal impact on the expedite processes the Board
already engages.

FISCAL IMPACT: In the last three years, CSLB has identified two applications filed by
individuals who assert the relationship with an active-duty member of the Armed Forces
described in this bill and who hold a license in another state.

STAFF RECOMMENDATION: NEUTRAL OR ?WATCH.?

Issues for Board to Consider:

? This bill is presented for the Board?s information because there is a possible fiscal
impact, and so that the Board may be aware of the Legislature?s recent bi-partisan
efforts to reduce barriers to licensure for members of the Armed Forces.

? For example, two other current measures, AB 107 (Salas) and AB 225 (Gray,
Gallagher, Patterson), would both require CSLB to issue a license (after appropriate
investigation) to applicants who are honorably discharged, or who are in a
relationship with an active-duty member, and hold an active license in another state.

207
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 484 (Medina)
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB484

STATUS/LOCATION (as of 3.2.2021): Referred to Asm. B&P on February 18, 2021

SPONSOR: Contractors State License Board

SUBJECT: California Cable & Telecommunications Association

CODE SECTION: Amend Business and Professions Code ? 7599.44 (Alarm company
operators licensed by the DCA Bureau of Security and Investigative Services (BSIS))

SUMMARY: Would permit a licensed alarm company regulated by CSLB to exclude
their license number from radio and television ads if that information is included in their
online website.

EXISTING LAW: Requires every solicitation or advertisement by a licensed alarm
company regulating by CSLB contain the licensee?s name and license number.

THIS BILL: Provides that, notwithstanding the advertising requirements for
licensed contractors in Contractor?s State License Law, a licensed alarm company
operator may direct customers to a website for license name and information instead of
including that information in radio or television broadcast or billboard advertisement.

COMMENT/ANALYSIS: Many licensed alarm company operators hold a CSLB issued
license, such as the C-7 Low Voltage Systems, C-10 Electrical, C-28 Lock and Security
Equipment and/or D-28 Doors, Gates and Activating Devices or other license. These
contractors are subject to the requirement in the Contractors State License Law of
placing a license number in all advertisements, regardless of advertising type.

STAFF RECOMMENDATION: OPPOSE UNLESS AMENDED:

Issues for Board to consider:

? CSLB staff believe it is an important consumer protection measure for a license
number to be included in all advertisements.

? Reference to the Contractor?s Law in this bill is not clearly binding on CSLB because
it is not in CSLB?s practice act and it directly applies only to BSIS-licensed operators.
Therefore, even if this bill passes, CSLB could still discipline a licensed contractor
for failing to include a license number in their advertisements. As such, the reference
to the Contractors? Law will be ineffective and cause confusion.

208
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 1124 (Friedman)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1124

STATUS/LOCATION (as of 3.3.2021): Introduced February 18, 2021

SUBJECT: Solar energy systems

SPONSOR: California Solar & Storage Association

CODE SECTION: Amends ? 801.5 of the Civil Code (California Solar Rights Act);
Amends ? 66015 of the Government Code (Permit Fees for Solar Energy Systems).

SUMMARY: Redefines a ?solar energy system? from a ?structural design feature of a
building? to a ?design feature? of many structures for the purposes of solar permit fees.

EXISTING LAW: For purposes of a ?solar easement? in the Solar Rights Act, defines a
?solar energy system? as a ?structural design feature of a building.? For purposes of
permit fees assessed by local authorities for solar energy systems, defines a ?residential
permit fee? but does not define ?commercial permit fee.?

THIS BILL: Redefines ?solar energy system? in the Solar Rights Act as a ?structural
design feature? including ?solar racking, solar mounting, solar carports, solar shade
structures, solar awnings, solar canopies, and solar patio covers, regardless of whether
the feature is on the ground or on a structure.? This bill also creates a ?commercial solar
energy system? definition for the purposes of permit fees.

COMMENT/ANALYSIS: According to the bill sponsors, existing law caps permit fees for
solar installations, but local jurisdictions are ?going around? those fees because some
solar projects, in addition to providing solar, serve other functions like providing shade
(such as a carport with a solar system). The sponsors claim the bill is intended to make
shade structures and carports ?count? as solar installations for the permitting fee caps.

STAFF RECOMMENDATION: OPPOSE UNLESS AMENDED: Issues to consider:
? The revised definition of ?solar energy system? in this bill does not alter CSLB?s
exclusive authority to define the scope of a licensed contractor?s operations.
However, the revised definition may cause confusion in the construction industry or
among consumers because the new ?structural design features? defined as a ?solar
energy system? in the bill require a general building contractors license or multiple
contractor?s licenses to perform.
? Consideration should be given to revise the bill to include the following clarifying
statement ?Nothing in this section is intended to affect the required Contractors State
License Board classification or field of scope of operations of a contractor licensed
pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business
and Professions Code.?

209
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 1129 (Frazier)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1129

STATUS/LOCATION (as of 3.3.2021): Introduced February 18, 2021

SPONSOR: California Real Estate Inspection Association

SUBJECT: Home Inspectors License Law

CODE SECTION: Add / amend several sections of the Business and Professions Code
(BPC)

SUMMARY: Creates within the Department of Consumer Affairs a ?Bureau of Home
Inspectors? effective January 1, 2023 and enacts the ?Home Inspectors License Law.?

EXISTING LAW: There is a Chapter in the BPC that provides civil remedies for those
who claim that a home inspector negligently performed a home inspection. No
government agency licenses home inspectors.

THIS BILL: By creating a Bureau of Home Inspectors, this bill subjects home inspection
activity to the licensing authority of the Department of Consumer Affairs. The bill creates
a new special fund within DCA and provides that the Governor appoint, subject to
confirmation, a Chief of the new bureau to administer the licensing program. The bill
requires home inspectors meet the minimum requirements of the ?National Home
Inspector Certification Council and California Real Estate Inspection Association.? The
bill would provide for financial and continuing education requirements. for home
inspectors.

COMMENT/ANALYSIS: This bill does not involve CSLB. However, various construction
industry stakeholders have recently informed CSLB staff of their belief that home
inspectors should be licensed contractors and be licensed by CSLB.

STAFF RECOMMENDATION: NEUTRAL OR ?WATCH.? Issues for Board to Consider:
? Between 1986 and 2019, nine previous legislative measures have unsuccessfully
attempted home inspector licensure at CSLB or in California. In 2019 the Board
voted to ?Watch? a version of this bill that placed home inspector licensing at CSLB
(the bill died). CSLB staff has corresponded frequently with the author?s office and
Assembly Business & Professions Committee staff about this bill.

? For the Board?s information, there are two additional bills this session about home
inspection: SB 484 (Archuleta) (Authorize C-36 Plumbing licensees to both inspect
and repair sewer lateral lines if a homeowner consents) and SB 736 (Newman)
(Require continuing education for home and building inspectors of residential
swimming pools)

210
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: AB 1136 (Rivas)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1136

STATUS/LOCATION (as of 3.10.2021): Referred to Comm. on Banking and Finance

SPONSOR: Author

SUBJECT: Property Assessed Clean Energy (PACE) program: enforcement: ancillary
relief

CODE SECTION: Amend Section 22690 of the Financial Code

SUMMARY: Authorizes the Department of Financial Protection and Innovation (DFPI,
formerly the Department of Business Oversight) to order PACE solicitors and PACE
solicitor agents to pay financial relief to persons injured by their actions.

EXISTING LAW: Allows PACE program administrators to enroll ?PACE solicitors? and
?PACE solicitor agents? in PACE programs that sell PACE assessment contracts to
consumers to finance clean energy home improvements through property taxes. PACE
solicitors/agents must maintain a license or home improvement registration in good
standing with CSLB. Existing law allows program administrators to ?disenroll? from a
PACE program any PACE solicitors/agents who violate rules related to the sale of
PACE assessment contracts. Existing law authorizes the DFPI Commissioner to
preclude non-compliant PACE solicitors and PACE solicitor agents from participating in
PACE.

THIS BILL: Adds to existing law the authority for DFPI to order PACE solicitors/solicitor
agents to pay restitution to harmed consumers.

COMMENT/ANALYSIS: This bill does not affect CSLB or the Contractors State
License Law. It relates to the authority of DFPI to take action against persons who sell
PACE financing only (CSLB still retains exclusive authority over those who sell and
execute Home Improvement Contracts).

STAFF RECOMMENDATION: NEUTRAL OR ?WATCH.? Issues for Board to Consider:

? PACE solicitors and PACE solicitor agents hold contractors? licenses and home
improvement salesperson registrations issued by CSLB. If a PACE solicitor/agent is
disenrolled from a PACE program or ordered to pay restitution to a consumer for
violating rules regarding PACE assessment contracts, it may be useful information to
CSLB to have for consumer protection purposes.

? Staff recommends the consider a provision that allows CSLB to discipline a
contractor or home improvement salesperson who violates PACE laws.

211
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: SB 430 (Borgeas) (Coauthors Bates, Jones, and Ochoa Bogh)
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB430

STATUS/LOCATION (as of 3.10.2021): Referred to Bus., Prof. & Econ. Dev. Comm.

SUBJECT: Small businesses: reduction or waiver of civil penalties

CODE SECTION: Adds a Chapter to the Government Code (Part 1, Div. 3 of Title 2).

SUMMARY: Create a process by which state agencies can establish procedures for the
reduction of civil penalties imposed on small businesses under certain circumstances

EXISTING LAW: Requires each state agency which significantly regulates or impacts
small businesses to designate at least one person who is required to serve as a small
business liaison. (Department of Consumer Affairs has designated the Small Business
and Disabled Veteran Business Enterprise (SB/DVBE) as its small business liaison:
https://www.dca.ca.gov/publications/sb-liaison.shtml)

THIS BILL: Defines a state agency to include a state board that has jurisdiction over
small businesses. Defines a small business as one that is independently owned and
operated and has less than 100 employees and less than $15,000,000 gross receipts.
Requires a state agency to establish a policy to provide for ?the reduction or waiver of
civil penalties? for violations that do not involve willful or criminal conduct, or pose
serious health, safety, or environmental threat. The bill requires the state agency to post
on its website information about businesses that qualified for relief under the bill.

COMMENT/ANALYSIS: According to the author?s fact sheet, the bill ?creates an
opportunity for regulatory relief for small businesses by allowing state agencies to
operate with discretion when enforcing monetary penalties.?

FISCAL: CSLB would first need to develop regulations to identify which of its causes of
discipline would qualify for relief under the bill. Depending on that result, many violations
for which civil penalties are currently imposed might possibly no longer be imposed.

STAFF RECOMMENDATION: NEUTRAL OR ?WATCH.? Issues to consider:
? CSLB is currently sponsoring a legislative measure to increase its civil penalties in
accordance with the Consumer Price Index. (AB 569 (Grayson)). That bill would also
allow CSLB to issue more letters of admonishment, in lieu of a civil penalty.

? This bill requires the new policy to consider things like a business?s history of
violations, cooperation, and the appropriateness of offering corrective action or
education in lieu of fines, all of which CSLB already does.

? The bill passed the Senate Comm. on Governmental Organization on March 9.

212
LEGISLATIVE BILL ANALYSIS

BILL NUMBER: SB 772 (Ochoa Bogh) (Coauthor Borgeas)
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB772

STATUS/LOCATION (as of 3.10.2021): Referred to Bus., Prof. & Econ. Dev. Comm.

SPONSOR: Author

SUBJECT: Professions and vocations: citations: minor violations

CODE SECTION: Amends Section 125.9 of the Business and Professions Code

SUMMARY: Precludes a license board from assessing a fine for a minor violation.

EXISTING LAW: Existing law authorizes any board within the Department of
Consumer Affairs to issue a citation to a licensee, which may contain an order of
abatement or an order to pay an administrative fine assessed by the board.

THIS BILL: Provides that a licensee shall not be assessed an administrative fine for a
minor violation. The bill defines a minor violation as one that does not pose serious
health or safety threats, was not willful, and the licensee corrects the violation in 30
days, provided the licensee was not on probation or had prior disciplinary history.

COMMENT/ANALYSIS: According to the author?s fact sheet, ?overregulation has
become a barrier to entry, especially among lower-income households? and ?drives
current business owners out of business? and ?disincentives new businesses from
entering the market.? The bill is intended to ?provide financial relief to businesses and
licensed professionals by allowing them to correct minor violations without being subject
to a monetary penalty.?

FISCAL: CSLB would first need to develop regulations to identify which of its causes of
discipline would qualify for relief under the bill. Depending on that result, many violations
for which civil penalties are currently imposed might possibly no longer be imposed.

STAFF RECOMMENDATION: NEUTRAL OR ?WATCH.? Issues for Board to Consider:

? CSLB is currently sponsoring a legislative measure to increase its civil penalties in
accordance with the Consumer Price Index. (AB 569 (Grayson)). That bill includes a
provision allowing CSLB to issue more letters of admonishment, which do not
assess a civil penalty, in lieu of citations.

? This bill requires the new policy to consider things like a business?s history of
violations and the appropriateness of offering corrective action in lieu of fines, which
CSLB already does.

213
214
AGENDA ITEM I

Adjournment

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