BILL ANALYSIS Ó
SB 561
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Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 561
(Monning) - As Amended June 17, 2015
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill eliminates the requirement that a home improvement
salesperson (HIS) register separately with the Contractors State
License Board (CSLB) for each home improvement contractor he or
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she works for, and instead allows an HIS to utilize a single
registration with one or more licensed contractors. The bill
also authorizes the CSLB to adopt regulations providing for the
electronic transmission of initial and renewal applications for
HIS registration and for a contractor license, including the
acceptance of a digital or electronic signature.
FISCAL EFFECT:
1)One-time CSLB programming and IT costs in the range of
$110,000 to $130,000 in 2015-16 to provide for the changes to
HIS registration and contractor notification requirements.
(Contractors License Fund)
2)Minor and absorbable costs to CSLB in 2016-17 to adopt
regulations.
COMMENTS:
1)Purpose. According to the author, "[This bill] streamlines the
HIS registration process and provides a registration system
that makes it easier for an HIS to work for multiple
contractors while continuing to be in good standing with the
CSLB." This bill is sponsored by the CSLB.
2)Background. The Contractors State License Law provides for
the licensure and regulation of more than 300,000 contractors.
A "home improvement salesperson" is defined as a person
employed by a home improvement contractor licensed under the
Contractors Law to solicit, sell, negotiate, or execute
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contracts for home improvements, for the sale, installation or
furnishing of home improvement goods or services, or of
swimming pools, spas, or hot tubs. It is a misdemeanor for
any person to engage in the occupation of salesperson for one
or more home improvement contractors within this state without
having a CSLB registration for each of the home improvement
contractors by whom he or she is employed. A home improvement
contractor who employs a person to sell home improvement
contracts while that person is not registered with CSLB is
subject to disciplinary action. Existing law authorizes a HIS
registration to be renewed at any rime within three years
after its expiration, if the applicant pays the renewal fee
and a $25 delinquent renewal penalty.
According to CSLB, there are currently approximately 12,600
active HIS registrants, nearly 5,700 expired registrants, and
over 85,000 invalid registrants. In the 2013-14 fiscal year,
CSLB received approximately 800 HIS applications a month, a
40% increase over the previous three years. This significant
increase has led to a backlog of applications and processing
delays.
This bill would streamline the current registration process
and provide increased flexibility for HIS registrants.
3)Prior Related Legislation.
a) AB 2457 (Nakanishi), Chapter 106, Statutes of 2006,
exempted from HIS registration a general partner of a
licensee and makes the exemption, as it applies to such a
general partner or a corporate officer or qualifying
person, applicable only in specified circumstances.
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b) SB 364 (Figueroa), Chapter 789, Statutes of 2003,
delayed until July 1, 2004, the requirement that an
applicant for registration as a HIS furnish a full set of
fingerprints to the CSLB.
c) SB 1953 (Figueroa), Chapter 744, Statutes of 2002,
required all applicants for a HIS license to submit a set
of fingerprints to the CSLB with his or her application and
requires the CSLB to obtain and receive criminal history
information from the Department of Justice and the Federal
Bureau of Investigation for a criminal history records
check.
d) AB 2544 (Bill Campbell), Chapter 372, Statutes of 2002,
required the CSLB to post specified information on its
website each week regarding HIS registration applications.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081
SB 561
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