As a preliminary matter, our condolences to Stephen Matich for the loss of his father, Martin Matich, a former board member.  

The Contractors’ State License Board held a full Board Meeting on Thursday, June 19, 2008 in Big Bear, California, the area where the outgoing and incoming chair, James Miller, resides.  His experience with the construction industry and problems within the construction industry are very hard to reproduce.  James Miller was re-elected as chair, and will be joined by Cynthia Mitchell as Vice-Chair and Edward “Eddie” Barnes as Secretary.   

Bruce Rust was appointed by the assembly as the newest Board Member.  Mr. Rust is the business manager of Laborers Local 294 in Fresno, California. 

Rick Lopes and his staff are doing wonderful work.  A review of the CSLB’s package shows that approximately one-half of the package is made up of public affairs office matters.   

The City Manager of Big Bear Lake welcomed the Board.  Louise Kirkbride and Don Zampa were praised for their outstanding contribution to the Board.  Louise Kirkbride is leaving the Board.  It will be sad to see her go, but we wish her luck with upcoming opportunities!  

The following Board Members were present: 

Chair, James Miller; Secretary, Cynthia Mitchell; Board Members Edward “Eddie” Barnes; Robert Brown; Joan Hancock; Matthew Kelly; Louise Kirkbride; Robert Lamb; Ed Lang; Stephen Matich. 

Board Members that were absent were: 

Vice Chair, Donald Zampa; Bernedette Medrano; Lisa Miller-Strunk; Bruce Rust. 

There is one vacant position on the Board.

I.                   PUBLIC COMMENT  

Matt Le Vesque, thanked the Board for their efforts with regard to unlicensed activity in the state.  Mr. Le Vesque, is a contractor and facilitator on the radio show “Construction Zone Radio.” 

 

II.                PAST MEETING MINUTES APPROVED  

The Board reviewed and approved the minutes from the April 23, 2008 Board Meeting. 

 

III.             INDUSTRY UPDATE

 

a.  Surety Industry 

Susan Moore spoke about the surety industry.  As a surety they agree to be responsible for the debt of a third party.  Surety bonds are underwritten more like a banking or credit relationship.  They look at the applicants’ credit score to see if they are financially responsible and if they pay debts.  They also look at judgments and bankruptcies, among other things.  All these may be impediment to getting a bond.  She also talked about the role of the surety and the claims process. 

 

b.  Workforce Trends And Developments

 

Eddie Barnes, the Southern Regional Director, gave a presentation on workforce trends and developments.  A group he spoke at length about is called GetReal – www.getreal.ca.gov.  “Green” economy is a hot topic in construction, not only in California by nationwide.   

He discussed the problems facing Career Technical Education (CTE).  Our workforce has changed.  In 1960, 60 percent of construction workers were unskilled whereas in 2000, 65 percent were required to be skilled.  There are many job openings and we need to fill them.   

IV.              LEGISLATIVE COMMITTEE REPORT – MIKE BROWN & STEPHEN MATICH

 

Stephen Matich and Mike Brown gave the Legislative update.  The report by Mr. Matich and Mr. Brown was well received and thought out.  The following are only highlights of their report:

 

SB 355 (Margett) Contractors: Consultants – This is no longer an issue and is not being pursued by the CSLB or the Senator as a result of a recent case.  The CSLB will use “Precedential Decisions” against the offenders. 

 

SB 797 (Ridley-Thomas) Professions and Vocations – Due to opposition within the Legislature, the licensing provisions related to tree trimmers were amended out of the bill, and might be amended into another bill.  Also, the provisions that would include “bids” as an act that is subject to the enhanced penalties against unlicensed contractors were inadvertently removed from the bill, and might be amended into another bill. 

 

Further, there is now a question with respect to the Sunset Review process.  This is where the Legislature reviews Boards and Bureaus.  The Legislature provides for a sunset review of various Boards and Bureaus.  However, nothing has been done for some period of time dealing with this.  It is in a waiting state. 

 

The problem deals with the Sunset Review process.  The Legislature requires Boards and Bureaus to appear before it to determine if each of these Boards or Bureaus should remain in existence.  Each of the Boards and Bureaus write an informational manual as to what they do, what they have done, and what is needed, etc.  Each of the Boards and Bureaus has to appear before the Legislature to tell them what they have done and what they plan on doing.  The Legislature then makes a determination whether the Board or Bureau should remain in existence or if they should do something different.  Unfortunately, there has been no Sunset Review in the recent past.  This would mean that the CSLB and the Registrar will become inoperative on July 1, 2009, unless something happens to extend the time.

 

AB 2336 (Nakanishi) Contractors: Arbitration Procedures – This bill has run into some opposition from some, including trial lawyers.  Stephen Matich suggests that it may be moved into another bill – SB 611. 

 

AB 2288 (Torrico) Automatic Fire Extinguishing Systems: Certificate of Registration – This bill has also run into some opposition.  It deals with fire sprinklers.  The provision that affected the Board has been removed.  Therefore, the staff’s position is now “support as amended.”  It requires the State Fire Marshal to expand regulations and building standards to include the installation of automatic fire extinguishing systems, and no longer require consideration of the voluntary standards.  This bill would prohibit any person from installing or modifying fire sprinklers, a fire sprinkler system, a wet standpipe system, or an engineered fixed automatic fire extinguishing system without a certification of registration.  It relates to contractors who service, maintain and test extinguishers.   

Phil Vermeulen spoke about this bill.  He thinks the bill is premature and that from the feedback he has gotten from the industry, it is important that all the stake holder come to the table on this bill.  The Board adopted the staff’s position.

 

SB 1698 (Romero) Contractors: Public Works – Among other things, this bill would require the obtaining of a public works certification from the Contractors' State License Board.  It requires the qualifier of a license to pass a public works certification examination.  The CSLB’s position is “opposed unless amended.” 

 

Mr. Brown spoke about the mission of the Board, which is to protect the consumers.  The Board is encouraged to “oppose unless amended.”  Phil Vermeulen says there is not need for this bill.  The way to achieve the goal of this bill is by beefing up enforcement and getting more money for enforcement through the Department of Industrial Relations (DIR).  Requiring a contractor to get a public works certification is not the way to do it. 

 

V.                 ENFORCEMENT COMMITTEE REPORT – Ed Lang

 

a.      Increase in Complaints Received

Ed Lang read the report of David Fogt, whereas Peter Sugar gave a more detailed report.  There has been an increase in complaints received electronically.  This increases the total number of complaints sent to the Contractors' State License Board.  During fiscal year 2006/07, the Contractors' State License Board received an average of 1472 complaints per month.  During the period of July 2007 through April 2008, an average of 1600 complaints were received monthly.  This is a 9% increase, or 128 complaints per month.  In December 2007 through April 2008, the monthly average was 1711, with 515 of those being submitted electronically.   

b.      Complaint Handling

With respect to pending complaints, fiscal year 2007/08 began with an inventory of 3884 open complaints.  Only 25 of which were over 365 days.  In March of 2008, the inventory had increased to a high of 5087.  Again, this is believed to be a result of the electronic complaint filing.   

In order to address the increase, supervisors met with Enforcement Representatives to review their caseloads.  Further, they had reduced a number of application investigations to the mandated 3%.  As a result, as of May 30, 2008, the workload had been reduced to 4613 open complaints.  Aged cases have also increased above the Board’s established goal of keeping the number under 100.  In May of 2008, this number was reduced to 89.  

Enforcement Representatives production continues to exceed the weighted average of 10 complaint closures per Enforcement Representative per month.   

c.       Licensee Cases Closed and Settled

The enforcement program is slightly below the established goal of settling 30% of licensee complaints and has averaged 28.29% for the first 11 months of the 2007/08. 

d.      Attorney General Costs

The Attorney General costs remained at close to a monthly average of $360,000.00. 

e.      Partnering with Industry Associations

On May 27, 2008, the Department of Consumer Affairs Director, Carrie Lopez, and Chief Deputy Director, Scott Reid, met with Registrar, Steve Sands, and Enforcement Chief, David Fogt, as well as with industry association representatives to discuss partnering to enhance enforcement of licensure, workers’ compensation insurance, and tax requirements.  Some of the things that they have done are as follows:

·        CSLB staff will be available to speak at future association meetings;

·        A new unit has been formed in the Enforcement Division to investigate advertising violations;

·        It is suggested that leads be given to the Enforcement Representatives if they are in fact, given;

·        The things that the CSLB would like is business cards, name of the unlicensed operator and/or employees, photograph of the jobsite, photograph of the work vehicles, specifically the license plate and any business name style, work performed, and an approximate length of time the construction will be active;

·        Issues involving elder abuse, health and safety, and workers’ compensation violations, wanted individuals, and repeat offenders are and will continue to be treated as top priority;

·        The SWIFT audit confirmed that stings are the CSLB’s most effective enforcement weapon against unlicensed activity; and

·        A new program was discussed whereby the CSLB will closely partner with industry to conduct sting operations. 

f.        Partnering with Other Industries

The CSLB continues to work with its partner agencies sharing records and databases.   

g.      Memorandum of Understanding

Enforcement Chief, David Fogt, and retired Annuitant, Bob Dresser, met with representatives from the Employment Development Department under the exiting Memorandum of Understanding, the CSLB’s Enforcement Representatives and the EDD agents conduct monthly field inspections to combat the underground economy.   

h.      Unlicensed Pool Contractor Stings

Unlicensed pool contractors’ stings have been held and were successful.  Civil penalties assessed during that period of time was in excess of $45,000.00. 

i.        Proactive Stings

Proactive stings have been held in Palm Springs and San Bernardino.  In Lake Arrowhead, many sweeps targeted post-wildfire activity.  Twenty sites were visited.   

j.        Staff Training

In the latter part of March, staff participated in training sponsored by the Anaheim Police Department and the Gryphon Training Group entitled “Crimes Against the Elderly: Transient Criminal Gypsies and Travelers.”   

 

VI.              PRECEDENTIAL DECISIONS 

Supervising Senior Counsel, Don Chang, discussed a recent precedential decision.  The term “consultant contractor” has been defined by a recent case in which an individual was acting as a swimming pool “consultant.”  This activity requires a C-53 Swimming Pool contractor license.  The case is called “In the Matter of the Citation Against Shawn Michael Sage.”   

 

VII.           ORGANIZATIONAL DEVELOPMENT – Peter Sugar, presenter 

The most critical area requiring staff development is succession planning.  The CSLB will experience a significant loss of experienced personnel due to retirement over the next two to five years.  CSLB is already addressing these issues 

Mr. Sugar also discussed the new Central Valley SWIFT office, the model office program based on the West Covina office, the goal to adopt standardized electronic reporting to be incorporated into monthly reports, creation of a master calendar for the enforcement program, and the training database which is being designed to track training of CSLB personnel.   

 

VIII.        LICENSING PROGRAM UPDATE 

a.      Applications

The average number of original exam applications received per month is 1616.  The total number of applications received per month for original exam, original waiver, add class, and replacing the qualifier is 3129 for May 2008.  Historically, the majority of applications is received during the last half of the fiscal year and the chart shows that there is no real significant increase or decrease in the applications that are received per quarter. 

b.      Fingerprinting/Criminal Background Unit Update

The fingerprinting program started in January 2005 and since then, the CSLB has received more than 150,000 transmittals from the Department of Justice.  Of the applicants who were fingerprinted during that time period, the CSLB’s Criminal Background Unit received criminal offender record information from more than 23,000 applicants, which means that the Department of Justice and/or the FBI reported that the individual had a criminal conviction in the past.   

c.       Licensing Information Center Update

The Licensing Information Center continues to strive to provide timely, efficient, and professional services to its customers.  They continue to invest time and resources in agent training.  Over the past year, with few exceptions, the Licensing Information Center has met or exceeded the Board’s goal for answering 80% of calls received with a wait time less than 4 minutes. 

d.      Test Center Status

With the opening of the new larger testing centers in Norwalk and San Bernardino, the “wait time” for a test date is 3 weeks at all locations, except Fresno and San Diego which are 5 and 6 weeks, respectively.  There is a plan to reduce the wait time in San Diego by increasing seating capacity.  Applicants who want to test sooner are permitted to walk into the test center and have a fair chance of getting an empty seat due to the failure of scheduled applicants to appear.

 

IX.              PUBLIC AFFAIRS PROGRAM UPDATE 

Robert Lamb introduced the report, and Rick Lopes provided a more detailed report.  Rick Lopes continues to amaze us and many others with respect to how much he does in the public affairs arena.  His press releases, media outreach, public awareness campaigns, senior scan stoppers, and reports on disciplinary matters, including stings, publications, outreach seminars and special events are all outstanding.   

a.       Press releases included the following:

·        Visalia Contractors Extortion Plot Broken Up in Joint Investigation

·        Contractors State License Board Investigates Traveling Paving Scam

·        Contractors State License Board Stings Coachella Valley Fraud Suspects in Two-Day Undercover Operation

·        Unlicensed Contractor and Convicted Felon Caught by Construction State License Board and Sacramento Police Department

·        Contractors State License Board Targets Phony Contractors in Elk Grove Undercover Sting

·        Warrants and Arrests in Aquarius Swimming Pool Case 

The Public Affairs Office also handled multi-agency media events, state investigative fraud team in Riverside and Palm Springs, and numerous interview requests.  The Public Affairs Office has also conducted extensive media outreach programs.   

In addition, the Public Affairs Office is busy writing brochures, pamphlets, etc.  From April 4, 2008, through May 30, 2008, the Public Affairs Office co-sponsored Senior Scam Stoppers in various areas.   

b.      Budget Change Proposal 

The CSLB is in the process of putting together a Budget Change Proposal for a two year limited term special fund budget augmentation to fund a pilot project that would educate consumers about unlicensed construction contractors in California.   

c.       Just some of the things that have gone on:

·        The Contractors' State License Board, in partnership with Lincoln Police Department captured an armed ex-convict with a history of violence and consumer fraud. 

·        A sting operation in Woodland snared a dozen illegal operators. 

·        The CSLB warned Central Valley consumers about traveling criminals posing as contractors. 

·        175 arrested in Contractors' State License Board statewide undercover sting operations.

·        The Contractors' State License Board and partners from the Palm Springs Police Department and the Riverside County District Attorneys Office help out with the arrest of 32 suspected phony contractors.

·        The Contractors' State License Board targeted phony contractors in Elk Grove undercover sting operation.

·        Unlicensed contractor and convicted felon was caught by the Contractors' State License Board and the Sacramento Police Department. 

·        The Contractors' State License Board has a rather wide investigation of statewide paving scams. 

·        The Contractors' State License Board arrested Gregory Wolf and his wife Teresa Wolfe on 11 felony charges.

·        A felony conviction was handed down for phony contractors sentencing following a Contractors' State License Board investigation.

·        The Contractors' State License Board released its 2007 Accomplishment & Activities Report.  There were just too many to count.  We have reported on less than half of what this group has done. 

The above is just the tip of the iceberg being handled by the Public Affairs Office. 

X.                 EXECUTIVE COMMITTEE REPORT

 

a.      Review and Approval of June 3, 208 Executive Committee Report  

The Executive Committee met on June 3, 2008.  Issues covered included exams in progress, the vacancy rate at the Board, and various projects relating to space planning.  There is also a proposal under consideration by the Department of Consumer Affairs to grant delegated authority to the CSLB to establish and administer its own specialized exams.   

At the Executive Committee Meeting, Budget Analyst Jonathan Buttle reviewed the charts and the committee packet.  Board member Matthew Kelly motioned to recommend approval of the 2008 Strategic Plan.  Board Member Cynthia Mitchell seconded the motion.  It was unanimously approved. 

 

b.      Administrative and Information Technology Program Updates  

Registrar Steve Sands reported that with regard to information technology, the Board is still updating the website which is roughly 60 percent converted.  There was some discussion regarding the computer windows updates. 

 

c.       Review and Approval of the 2008 Strategic Plan  

The Executive Committee reviewed the draft Strategic Plan at its June 3, 2008 meeting and made a few edits.  The Board approved the 2008 Strategic Plan as edited and allowed the Registrar to work with Cynthia Mitchell to make sure her recommendations were contained in the Strategic Plan. 

 

XI.              UPCOMING MEETINGS 

September 10, 2008 -- Sacramento
November 20, 2008 -- Los Angeles
(November 19, 2008 – General Session)