Governor Signs Contractor-Related Bills

This bill, sponsored by CSLB, introduced by Sen. Ted Lieu, D-Torrance, and signed by the Governor, amends Business and Professions Code (BPC) section (§) 7027.2, BPC § 7110.5, BPC § 7028, and BPC § 7011.4. It takes effect January 1, 2015.

It will:

Authorize a person who is not licensed as a contractor to advertise for construction work or a work of improvement only if the aggregate contract price is less than $500 and the person states in the advertisement that he or she is not licensed.
Authorize CSLB Enforcement Representatives (ERs) to issue written notices to appear in court. In addition, these ERs could continue to participate in activities of the Joint Enforcement Strike Force on the Underground Economy.
Clarify that an individual contracting with a suspended license for an outstanding tax or civil liability is subject to the same disciplinary action as an individual contracting without a license.
Provide CSLB with flexibility to pursue disciplinary action against a licensed contractor as a result of a referral from the Labor Commissioner for a Labor Code violation.

SB 1159 — License Applicants: Federal Taxpayer Identification

This bill will require the professional and vocational licensing boards within the Department of Consumer Affairs to require an applicant other than a partnership to provide either a federal tax identification number or a Social Security number if one has been issued to an applicant. It will require the individuals to report to the Franchise Tax Board, and subject a licensee to a penalty for failure to provide that information.

Assembly Bill (AB) 26 — Construction: Prevailing Wages/ Mechanics Liens

This bill will revise the definition of "construction" to include post-construction phases and cleanup work at the job site; and expand the definition of "public works" regarding the payment of prevailing wages to include any task relating to the collecting or sorting of refuse or recyclable metals, such as copper, steel, and aluminum performed at a public works job site.

AB 1705 — Public Contracts: Payments

This bill will allow retention proceeds withheld from any payment by an awarding entity to prime contractors or subcontractors to exceed a specified percentage on projects that are more "substantially complex" than those involving routine or regular work. It also will require that the bid documents include details that explain the basis for the "complex" finding, and list the actual retention amount.

AB 1870 — Public Works: Prevailing Wage: Apprenticeship Program

This bill will amend existing law that requires a contractor to whom a contract is awarded and who employs journeymen or apprentices, to contribute to the State Apprenticeship Council the same amount determined to be the prevailing amount of apprenticeship training contributions in the area of the public works site. This bill will have an impact on the award of certain grants in cases where two or more approved multi-employer apprenticeship programs serve the same craft or trade, in an attempt to make the distribution of grants more equitable.

AB 1939 — Public Works: Prevailing Wage: Contractor's Costs

This bill relates to public works and the prevailing wage by authorizing a contractor to bring an action to recover from the party it directly contracts with any increased costs, including labor costs, penalties, and legal fees incurred as a result of any decision by the Department of Industrial Relations, the Labor and Workforce Development Agency, or a court that classifies the work covered by the project is a public work.

AB 2396 — Convictions: Expungement: Licenses

This bill will prohibit a vocational or professional licensing board under the Department of Consumer Affairs from denying a license based solely on a conviction that has been dismissed pursuant to certain provisions of existing law.