BILL NUMBER: AB 2479	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hancock

                        FEBRUARY 21, 2008

   An act to amend Section 7028.7 of, and to add Section 7110.05 to,
the Business and Professions Code, relating to energy efficiency.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2479, as introduced, Hancock. Contractors: energy efficiency
measures.
   Existing law, the Contractors' State License Law, provides for the
licensure and regulation of contractors by the Contractors' State
License Board. Under existing law, a citation may be issued to, and
penalties assessed against, a person acting in the capacity of or
engaging in the business of a contractor without a license. Under
existing law, the board may take disciplinary action against a
contractor for committing specified acts. Existing law makes state or
local agencies responsible for the enforcement of building
standards.
   This bill would make unlicensed contractors who fail to comply
with specified building energy efficiency standards subject to a
civil penalty of not less than $2,000. The bill would specify that
the failure of a licensee to comply with the building energy
efficiency standards constitutes a cause for disciplinary action. The
bill would also specify that the failure of a licensee to obtain a
building permit, in specified circumstances, shall be subject to a
citation and a civil penalty of not less than $500. The bill would
require the board, beginning July 1, 2010, and each fiscal year
thereafter, to compile data and to submit a report to the Legislature
no later than the first business day in October that includes the
number of penalties assessed by the board against licensees and
unlicensed contractors for failure to comply with these standards.
The bill would require the State Energy Resources Conservation and
Development Commission to collaborate with the board with respect to
identifying and investigating the failure of licensees and unlicensed
contractors to comply with these provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to enact
legislation that mitigates the urban heat island effect by reducing
summertime urban air temperatures. Reducing the effect of urban heat
islands will help address the impact of rising temperatures
associated with global warming, and therefore improve air quality,
reduce energy use, and improve overall thermal comfort.
  SEC. 2.  The Legislature finds and declares all of the following:
   (a) The term "heat island" refers to urban air and surface
temperatures that are sometimes nearly 10 degrees Fahrenheit higher
than nearby rural areas. Pavement, buildings, low reflective building
roofs, and other infrastructure that absorb the sun's radiation and
trap heat result in increased temperature in urban areas.
   (b) Higher temperatures from the urban heat island effect are
responsible for 5 to 10 percent of urban peak electric demand from
air-conditioners, and as much as 20 percent of population-weighted
smog concentrations in urban areas.
   (c) The urban heat island effect poses a serious threat to the
economic well-being, public health, natural resources, and the
environment of California.
   (d) A distinction between urban heat islands and global warming
exists. Heat islands describe local-scale temperature differences,
generally between urban and rural areas. In contrast, global warming
refers to a gradual rise of the earth's surface temperature. While
they are distinct phenomena, summertime heat islands both intensify
the effect of rising temperatures due to global warming and may
contribute to global warming by increasing demand for
air-conditioning, which results in additional powerplant emissions of
heat-trapping greenhouse gases. Strategies to reduce heat islands,
therefore, can mitigate the impacts of rising temperatures and also
reduce the emissions that contribute to global warming.
   (e) California's building energy efficiency standards specified in
Part 6 of Title 24 of the California Code of Regulations include
specifications for cool roofing materials and other measures for
newly constructed buildings and alterations or additions to existing
buildings. Effective application of these standards will increase the
level of energy efficiency of California's buildings and reduce the
impacts of both urban heat islands and global warming, thus
increasing California's ability to cope with warming from climate
changes that may be unavoidable.
   (f) California's building energy efficiency standards, specified
in Part 6 of Title 24 of the California Code of Regulations,
represent a state resource for accomplishing increased building
energy efficiency, not only in newly constructed buildings but also
in additions and alterations to existing buildings. These standards
are recognized as leading the nation in energy savings and serving as
one of the primary energy policy tools that has resulted in
California's per capita energy use staying essentially constant over
the past 30 years while that of the rest of the United States
increased steadily.
   (g) The effectiveness of the building energy efficiency standards
is dependent on the conscientious efforts of licensed contractors in
California to build buildings and install equipment in compliance
with the standards.
   (h) The Governor and the Legislature recognize that many buildings
are being reroofed without a permit. Contractors operating in the
underground economy are in flagrant violation of California
contracting law. In particular, contractors operating without a
license, and whether licensed or not, willfully and deliberately fail
to obtain a building permit and willfully and deliberately fail to
comply with the building laws of the state. Unlicensed and licensed
contractors who market their services with these underground
practices represent unfair competition, undercutting legitimate
contractors who endeavor to conscientiously comply with contracting
and building laws. This underground activity denies state and local
governments license and building permit revenue, diminishing the
ability of state and local agencies to provide enforcement services
intended to ensure compliance with these laws. These practices
particularly damage and diminish the potential for conscientious
compliance with the building energy efficiency standards.
   (i) The mission of the Contractors' State License Board is to
protect consumers by regulating contractors to promote the health,
safety, and general welfare of the public in matters related to
construction. As a part of fulfilling this mission, it is important
for the board's enforcement program to include efforts to eradicate
the underground practice of performing construction work without
building permits and failing to comply with the building energy
efficiency standards. It has become critically important for the
board to send a strong, definitive message to those whose objective
is illegal financial gain at the expense of safe building practices
and energy efficiency. In particular, the board should not tolerate
illegal practices related to the building energy efficiency
standards. These violations eventually result in a substantial
financial loss to consumers who purchase the relevant services, and
epitomize unfair competition that dramatically impacts the economic
viability of legitimate businesses. It is also important to foster a
business climate favorable to legitimate competition, so that
conscientious contractors are able to sustain their businesses by
performing quality construction and installing efficient
energy-related equipment in compliance with the building energy
efficiency standards. Notably, the mitigation of the urban heat
island effect will be a significant and beneficial result of the
board's enforcement activities.
  SEC. 3.  Section 7028.7 of the Business and Professions Code is
amended to read:
   7028.7.   (a)    If upon inspection or
investigation, either upon complaint or otherwise, the registrar has
probable cause to believe that a person is acting in the capacity of
or engaging in the business of a contractor or salesperson within
this state without having a license or registration in good standing
to so act or engage, and the person is not otherwise exempted from
this chapter, the registrar shall issue a citation to that person.
Within 72 hours of receiving notice that a public entity is intending
to award, or has awarded, a contract to an unlicensed contractor,
the registrar shall give written notice to the public entity that a
citation may be issued if a contract is awarded to an unlicensed
contractor. If after receiving the written notice from the registrar
that the public entity has awarded or awards the contract to an
unlicensed contractor, the registrar may issue a citation to the
responsible officer or employee of the public entity as specified in
Section 7028.15. Each citation shall be in writing and shall describe
with particularity the basis of the citation. Each citation shall
contain an order of abatement and an assessment of a civil penalty in
an amount not less than two hundred dollars ($200) nor more than
fifteen thousand dollars ($15,000). With the approval of the
Contractors' State License Board, the registrar shall prescribe
procedures for the issuance of a citation under this section. The
Contractors' State License Board shall adopt regulations covering the
assessment of a civil penalty that shall give due consideration to
the gravity of the violation, and any history of previous violations.
The sanctions authorized under this section shall be separate from,
and in addition to, all other remedies either civil or criminal. 

   (b) Any person described in subdivision (a) who fails to comply
with the building energy efficiency standards specified in Part 6 of
Title 24 of the California Code of Regulations shall also be subject
to a civil penalty in an amount not less than two thousand dollars
($2,000). This sanction shall be separate from, and in addition to,
all other remedies either civil or criminal. 
  SEC. 4.  Section 7110.05 is added to the Business and Professions
Code, to read:
   7110.05.  (a) The failure of a licensee to comply with the
building energy efficiency standards specified in Part 6 of Title 24
of the California Code of Regulations constitutes a cause for
disciplinary action.
   (b) A licensee who fails to obtain a building permit prior to
commencement of a work of improvement subject to the standards
described in subdivision (a) shall be subject to a citation and an
assessment of a civil penalty in an amount not less than five hundred
dollars ($500). Prior to issuing a penalty pursuant to this section,
due consideration shall be given to subdivisions (b), (c), and (d)
of Section 884 of Division 8 of Title 16 of the California Code of
Regulations.
   (c) Beginning with the fiscal year commencing on July 1, 2010, and
each fiscal year thereafter, the board shall compile the essential
data necessary to create a report identifying the number of civil
penalties that the board assessed during the previous fiscal year
against licensees and unlicensed contractors for failure to comply
with the standards described in subdivision (a) of this section and
subdivision (b) of Section 7028.7. This report shall be submitted to
the Legislature no later than the first business day in October of
each year.
   (d) The State Energy Resources Conservation and Development
Commission shall collaborate with the board to identify and
investigate the failure of licensees and unlicensed contractors to
comply with the building energy efficiency standards and to obtain
building permits.