Board Meeting Minutes — March 11, 2010
CALL TO ORDER
Board Chair Edward Barnes called the meeting of the Contractors State License Board (CSLB) to order at 1:00 p.m. on March 11, 2010 at the Renaissance Esmeralda in Indian Wells, CA. A quorum was established. Chair Barnes announced that CSLB would be holding a joint meeting with the Nevada Contractors Board. He also mentioned that three Board Members would be participating in the meeting via teleconference, thus a roll call vote would be taken for every motion.
Nevada Board Chair Kevin Burke led the Board in the Pledge of Allegiance.
|Board Members Present:|
|Eddie Barnes, Chair||Ed Lang|
|Robert Lamb, Secretary||Paul Schifino|
|Lisa Miller-Strunk, Vice Chair||Mark A. Thurman|
|Joan Hancock||Ruben Zuniga|
|Board Members Present by Conference Call:|
|Nevada Board Members Present:|
|Kevin Burke, Chair||Margi Grein|
|Donald Drake||Nat Hodgson|
|Michael Efstratis||Bruce King|
|John Ellison||Stephen Quinn|
|DCA/CSLB Staff Present:|
|Stephen Sands, Registrar||David Fogt, Enforcement|
|Cindi Christenson, Chief Deputy Registrar||Rick Lopes, Public Affairs|
|Don Chang, Legal Counsel (DCA)||Karen Ollinger, Licensing|
|Michael Brown, Legislation|
|Gil Deluna, DCA Executive Office|
|Tara Maggi, Executive|
CHAIR’S REMARKS AND BOARD MEMBER COMMENTS
Chair Barnes swore in new board member Ruben Zuniga. Chair Barnes later went on to thank and welcome the Nevada Board members as well as the National Association of State Contractors Licensing Agencies. Nevada Board Chair Kevin Burke gave his opening remarks. Mr. Burke expressed his gratitude to both Registrar Steve Sands and Chair Barnes for arranging this meeting.
PUBLIC COMMENT SESSION
Gil Deluna attended the Board meeting on behalf of DCA Director Brian Steiger. Mr. Deluna reported on the Consumer Protection Enforcement Initiative (CPEI). CPEI focuses on three main areas: administrative improvements, staffing and IT resources, and legislative changes. Mr. Deluna reported that DCA is requesting letters of support from the board when the new bills come forward. Mr. Deluna also encouraged the board to continue to monitor the enforcement processing timelines. Lastly DCA requested that the board webcast all of their board meetings, as well as post online materials in efforts to eliminate the waste of paper.
REVIEW AND APPROVAL OF NOVEMBER 12, 2009 BOARD MEETING MINUTES
- Motion to Approve November 12, 2009 Board Meeting Minutes
- MOTION: A motion was made by Board Member Robert Lamb and seconded by Board Member Ed Lang to approve the November 12, 2009 Board Meeting Minutes. The motion carried unanimously 12-0.
LEGISLATIVE COMMITTEE REPORT
Chair Barnes introduced Legislative Committee Chair Lisa Miller-Strunk, and Legislative Chief Mike Brown to present the Legislative Committee Report.
- Status of Board Sponsored Bills
- Chair Miller-Strunk reviewed legislative proposals that were previously approved by the Board to move forward in this session.
- Review of two year bills
- >She then reviewed the following two year bills:
- AB 660-on "watch" with no movement. Chair Miller-Strunk reports that if there is to be any movement with the bill it will be closer to the end of session.
- AB 1074 Fraudulent License Numbers-"dead" due to the prison overcrowding issue.
- AB 258 Contractors Public Works-CSLB has been advised by the sponsor that it will be removed from the bill.
- SB 392 Limited Liability Companies-on "watch" but the bill will not be put into place until 7/1/2011, which will give time for CSLB to do the tracking programming needed to track the limited liability contractors.
- Review and Consideration of Bills Introduced in 2010
- Mr. Brown updated the Board on the new bills for the upcoming session. AB 2267, which would reduce the amount a material supplier can collect from a bond, benefits the consumer greatly.
- Mr. Brown introduced Phil Vermeulen, American Contractors Indemnity, who presented hand outs to the Board which provided information about the number of claims filed against contractor bonds. Mr. Vermeulen also stated that material suppliers need to be accountable for their actions.
- Chair Barnes, read a letter sent from the California Chapter of National Electrical Contractors Association, California Legislative Conference of Plumbing Heating and Piping industry, Air-Conditioning and Sheet Metal Association, Air-conditioning and Refrigeration Contractors, who are opposed to bill AB 2267.
- Following a lengthy discussion between Board members, Mr. Brown reminded the Board that AB 2267 merely is shifting greater access of the funds to the consumer, instead of the material supplier.
- Motion to Support AB 2267
- MOTION: A motion was made by Board Member Joan Hancock and seconded by Board Member Ed Lang to support AB 2267. The motion carried unanimously 12-0.
- Another new bill discussed was AB 2332, which is sponsored by the Board of Equalization (BOE). Existing law provides the Board with the authority to suspend the license of a contractor who fails to pay any outstanding final liabilities, such as taxes or penalties that are owed to the Board, the Employment Development Department, the Division of Industrial Relations or the Franchise Tax Board. Staff requested support from the Board on AB 2332, which would add BOE to the list. Mr. Brown noted that, according to a report by BOE, taxes owed to BOE by construction contractors exceed $18 million.
- Chief of Enforcement, David Fogt explained the importance of the alliance with various state agencies such as the Department of Insurance (DOI) and CAL-Trans.
- Motion to Support AB 2332
- MOTION: A motion was made by Board Member Joan Hancock and seconded by Board Member Ed Lang to support AB 2332 and request that the author amend the bill to include DOI and CAL-Trans in the list of agencies that could request a license suspension in order to enforce an outstanding final tax liability. The motion carried unanimously 12-0.
- SB 1254, a consumer protection bill, would give the ability to put a stop order on projects for those who are not licensed and have employees. If the non-licensees violate this stop order they can be charged with a misdemeanor. In addition there is an increase of peace officers, from three to twelve, in the bill.
- Motion to Support and Co-Sponsor SB 1254
- MOTION: A motion was made by Board Member Matt Kelly and seconded by Board Member Secretary Robert Lamb to support and co-sponsor SB 1254. The motion carried 11-1. Louise Kirkbride voted no.
- Mr. Brown updated the Board on AB 2419 which is a CSLB sponsored cleanup bill that is being carried by Assemblyman Paul Cook.
- AB 8X which was initially proposed by the Franchise Tax Board (FTB), would shift much of the authority to suspend contractor’s licenses for unsatisfied tax liabilities to the FTB. The Legislature and Administration has made very clear that they are going to pursue this concept. Mr. Brown said that staff would continue to monitor the bill.
- Motion to Accept Bills Introduced in 2010
- MOTION: A motion was made by Board Member Matt Kelly and seconded by Board Member Secretary Robert Lamb to the staff’s recommended adopt positions on the bills introduced in 2010 and not acted on individually. The motion carried unanimously 12-0.
- Update on Sunset Legislation
- Mr. Brown briefly updated the Board on the Sunset Review process, noting that without legislation to extend the date, the Board would be sunset effective January 1, 2011.
ENFORCEMENT COMMITTEE REPORT
Enforcement Committee Chair Ed Lang updated the Board on the Committee meeting which was held at CSLB Headquarters on January 28, 2010.
- Review and Approval of January 28, 2010 Enforcement Committee Summary Report
- Chair Lang reported that there were many industry representatives in attendance and summarized the Enforcement Committee update, which was located in the board packet.
- Enforcement Program Update
- Chair Lang then introduced Enforcement Chief, David Fogt, who provided the Enforcement Program update. Mr. Fogt covered enforcement staffing vacancies, organizational development, proactive enforcement, and energy permit compliance. He highlighted that all the front line supervisors’ positions have been filled. Mr. Fogt then provided an update on the various statistical information from the Enforcement Division. He then touched on payment performance bonds and the consumer, which has been moving along smoothly. Mr. Fogt also highlighted various elder abuse cases, some of which resulted in felony charges.
- Presentation of the CSLB Arbitration Program
- Mr. Lang introduced Karen Smith from the Arbitration Mediation and Conciliation Center (AMCC). Ms. Smith gave a detailed overview of the arbitration process as it pertains to CSLB.
LICENSING COMMITTEE REPORT
Vice Chair Lisa Miller- Strunk introduced both Licensing Committee Chair Joan Hancock and Licensing Chief Karen Ollinger to present the Licensing Committee Report.
- Review and Approval of January 28, 2010 Licensing Committee Summary Report
- Chair Hancock updated the Board on the Committee meeting which was also held on January 28, 2010 at CSLB Headquarters. She provided an overview of the Committee Summary Report, contained in the board packet. Chair Hancock then introduced Ms. Ollinger who provided the Licensing Program update.
- Licensing Program Update
- Chief Ollinger provided updates on the workload and processing times in the licensing application units and the progress within the Fingerprinting/Criminal Background Unit. She also reported on the furloughs and their effect on the transaction and processing times. However, due to the reduction in applications, the units have been maintaining respectable processing times. Ms. Ollinger informed the Board of the average wait time and the number of calls received and answered by the call center.
- Testing Program Update
- Heidi Lincer-Hill provided the Testing program update. Ms. Lincer-Hill gave an update on the Examination Development Unit and the progress of the occupational analyses. She also reported on the web-based survey pilot project used for occupational analyses and indicated the response rate was very successful.
- Motion to Approve the January 28, 2010 Enforcement and Licensing Committee Summary Report
- MOTION: A motion was made by Board Member Ed Lang and seconded by Board Member Secretary Robert Lamb to approve the January 28, 2010 Enforcement and Licensing Committee Summary Report. The motion carried unanimously 12-0.
PUBLIC AFFAIRS COMMITTEE REPORT
Ms. Lisa Miller- Strunk introduced both Public Affairs Committee Chair Robert Brown and Public Affairs Chief Rick Lopes to present the Public Affairs Committee report. Chair Brown gave a brief introduction on the Public Affairs Summary Report and its contents. Mr. Brown then introduced Chief Lopes to update the Board on the Public Affairs Program.
- Public Affairs Committee Report
- Chief Lopes provided updates on media events held from November 2009 through February 2010. He covered disaster outreach, senior scam stoppers, publications, and progress on the CSLB-based reality TV show.
EXECUTIVE COMMITTEE REPORT
Chief Deputy Registrar Cindi Christenson presented the Executive Committee Report.
- Impact on Board Operations Due to Executive Orders, Budget Letters and related Policies
- Ms. Christenson reported on the impact of the executive orders, budget letters and other related policies and their effect on board operations.
- Administrative and Information Technology Program Update
- Ms. Christenson began the Administration Program Update by reporting the budgeted positions and the number of vacancies within the Board. As she briefed the board on the business services update, she gave the status on the moves/updates of five site offices as well as headquarters. Ms. Christenson reported on the Information Technology update as well, mentioning the Electronic Payment system at CSLB Headquarters, Automated Call Distribution System Replacement (ACD), the Pocket Card Equipment Replacement, and new Mailing System.
- Budget Update
- Ms. Christenson provided the Budget update.
- Review and Final Approval of Proposed Regulatory Changes to California Code of Regulations, Section 811-Fees
- Ms. Christenson summarized the fee regulations and several Board members indicated the necessity of the increases in order to maintain current services.
- Motion to Approve the Proposed Regulatory Changes to California Code of Regulations, Section 811- Fees
- MOTION: A motion was made by Board Member Secretary Robert Lamb and seconded by Board Member Ed Lang to approve the Proposed Regulatory Changes to the California Code of Regulations Section 811 - Fees. The motion carried 10 - 0.
- Strategic Plan Update
- Registrar Stephen P. Sands updated the Board on the Strategic Planning Meeting, which will be held in April at Monterey. Mr. Sands reminded the Board that Pat McLaughlin would be contacting each of them for an individual interview prior to the meeting.
REVIEW OF TENTATIVE SCHEDULE
Mr. Sands reviewed the schedule of upcoming Board meetings. The Strategic Planning session will be held on April 29-30, 2010, in Monterey. The next meeting will be held in Sacramento on July 28, 2010.
JOINT DISCUSSION WITH NEVADA STATE CONTRACTORS BOARD
Both members and staff from the California Board and the Nevada Board had a joint discussion on both Licensing and Enforcement issues and how they benefit each other.
- Motion to Approve September 10, 2009 Board Meeting Minutes
- MOTION: A motion was made by Board Member Matthew Kelly and seconded by Board Secretary Robert Lamb to approve the September 10, 2009 Board Meeting Minutes. The motion carried unanimously 9-0.
Board Member Lisa Miller-Strunk adjourned the Board meeting at 5:00 p.m.