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UPDATE: CSLB Industry Bulletin No. 14-05, CSLB Reminds Licensees about New Law to Help Identify Subcontractors Bidding on Public Works Projects (May 2, 2014)

UPDATE: CSLB Industry Bulletin No. 14-02, Compliance Dates Delayed For Some Energy-Related Regulations in CA Building Standards Codes (Feb. 10, 2014) — New Effective Date Jul. 1, 2014
UPDATE: New Construction Laws Effective This Wednesday

UPDATE: CSLB Summarizes New Laws That May Impact Licensees In The Coming Year

Contractor-related bills recently signed by California’s Governor Edmund G. Brown Jr. and chartered into law include:

Assembly Bill 44 Subletting and Subcontracting Fair Practices Act: Bidding Practices: AB 44 amends California’s Public Contract Code 4104 to require that prime contractors specify the contractor license numbers of subcontractors who will perform work on bids for public work projects. Cal Legis Seal.jpg

Assembly Bill 164 Infrastructure Financing: AB 164 extends California’s Little Miller Act by requiring a lease agreement between a governmental agency undertaking an infrastructure project and a private entity to include performance bonds as security to ensure the completion of construction, and payment bonds to secure payment of claims of laborers, mechanics, and materials suppliers employed on the project under contract.

Assembly Bill 433 Contractors: Fire Protection Systems: Fire Safety: State Fire Marshal: AB 433 adds and repeal Business & Professions Code § 7026.13 to, among other things, authorize, until January 1, 2017, the installation of a residential fire protection system for a 1or 2-family dwelling by a contractor holding a fire protection contractor classification or a plumbing contractor classification.

Assembly Bill 811 Excavations: AB 811 amends existing law to require regional notification centers to post on their website statewide information provided by operators and excavators regarding legal violations and damages resulting from violations.

Assembly Bill 1236 Contractors: Limited Liability Companies: AB 1236 amends Contractors State License Law that states insurance policies secured to satisfy limited liability company provisions are required to be written by an insurer or insurers licensed by the State of California and also permits those policies to be written by an eligible surplus insurer.

Senate Bill 822 Committee on Business, Professions and Economic Development, Professions and Vocations: Among other things, SB 822 amends Business & Professions Code § 7026.1 to provide that the term “contractor” or “consultant” does not include a common interest development manager, and a common interest development manager is not required to have a contractor’s license when performing management services, as defined in Business & Professions Code § 11500(d).

Additional Resources: California Contractor-Related 2013 Legislation and Bills to Watch

Photo: Edward Headington, Taken March 20, 2012 – Creative Commons

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UDPATE: CSLB, CSLB Pipeline Review Program Expands into Southern California (Summer 2014)

The California State Contractors Licensing Board (CSLB) confirmed in its 2013 Fall CLC Newsletter that there are 10 complaints pending against licensed contractors that PG&E claims did not go through the required permitting process to note the underground location of the existing utility pipelines in the area where work was to be performed and while digging in the area struck a gas pipeline. The CSLB warned that licensed contractors who damage natural gas lines during unauthorized digs can expect closer scrutiny by the CSLB. Although the CSLB has had the legal authority to take action against licensees for negligent pipeline breaks (Bus. & Prof. Code § 7110), there have been only 13 incidents in California brought to the CSLB in the last 2 years. Penalties could range from a warning letter to the licensee to revocation of the license, which would occur in the most serious cases.

Those who fail to register with the Underground Service Alert of Northern California or Underground Service Alert of Southern California are also subject to a fine of up to $50,000 and they can be held responsible for any repair costs. Even with the potentially stiff penalties, too many contractors may still be taking part in unauthorized excavations. The CSLB reported that, in 2012, 1,754 incidents of damage to utility lines were reported in California. An estimated 60% of those pipeline breaches were committed by contractors and the majority of the line breaks occurred during an unauthorized dig.

Any digging or excavation, even if it is just breaking ground with a shovel, requires licensed contractors to call 8-1-1 and to coordinate at least 2 days beforehand with the Underground Service Alert of Northern California or Underground Service Alert of Southern California.

Additional Resources: California State Contractors State License Board; Underground Service Alert of Northern California; Underground Service Alert of Southern California

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On Saturday, October 12, 2013, Team Austria from the Vienna University of Technology, the first-time U.S. competitor, was recognized as the winner of the U.S. Department of Energy Solar Decathlon 2013. The Decathlon challenges collegiate teams to design, build, and operate solar-powered houses that are cost-effective, energy-efficient, and attractive. The winner of the Decathlon is the team that best blends affordability, consumer appeal, and design excellence with optimal energy production and maximum efficiency.

firstplace.jpg Team Austria also won first place in the Communications Contest, tied for second place in Market Appeal, and tied for third place in Engineering. In measured contests, it received first place in the Hot Water and Energy Balance contests.

University of Las Vegas Nevada won second place in the overall competition, and Czech Technical University won third place.

Earlier in the day, Team Ontario from Queen’s University, Carleton University, and Algonquin College won first place for the Engineering Contest. Czech Technical University from the Czech Republic won second place, and Team Austria from Vienna University of Technology, the University of North Carolina at Charlotte, and University of Nevada Las Vegas tied for third place. The Engineering Contest jurors evaluated the houses’ energy-efficiency savings, creative design innovations, and the functionality and reliability of each system.

The University of North Carolina at Charlotte won the People’s Choice Award, an award that gave the public the opportunity to vote for its favorite house.

The 10 contests were:

• Architecture Contest (juried)
• Market Appeal Contest (juried)
• Engineering Contest (juried)
• Communications Contest (juried)
• Affordability Contest (juried)
• Comfort Zone Contest (measured)
• Hot Water Contest (measured)
• Appliances Contest (measured)
• Home Entertainment Contest (measured and juried)
• Energy Balance Contest (measured)

The Scores & Standings for the Decathlon competition teams were as follows:

1. Team Austria: Vienna University of Technology – 951.922
2. University of Nevada Las Vegas – 947.572
3. Czech Republic: Czech Technical University – 945.142
4. Stevens Institute of Technology – 939.176
5. Stanford University – 933.125
6. Team Ontario: Queen’s University, Carleton University and Algonquin – 926.478
7. Team Capitol DC: The Catholic University of America, George Washington University and American University – 920.267
8. Middlebury College – 920.262
9. Team Alberta: University of Calgary – 913.574
10. University of Southern California – 906.203
11. Santa Clara University – 888.929
12. Norwich University – 876.928
13. The University of North Carolina at Charlotte – 870.210
14. Southern California Institute of Architecture and California Institute of Technology – 868.666
15. Kentucky/Indiana: University of Louisville, Ball State University and University of Kentucky – 850.079
16. Missouri University of Science and Technology – 840.455
17. Arizona State University and The University of New Mexico – 823.165
18. Team Texas: The University of Texas at El Paso and El Paso Community College – 776.454
19. West Virginia University – 774.742

Congratulations to all of the winners!

Additional Resources: U.S. Department of Energy

Photo: EvelynGiggles, Taken Jan. 24, 2009 – Creative Commons

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UPDATE: December 17, 2013 CSLB Sting Nabs Convicted Rapist

On October 11, 2013, the California Contractors State License Board (“CSLB”), in its news release entitled Sex Offenders, Convicted Felons Snagged in Contractors State License Board Statewide Sting, announced that 75 people may face criminal charges after being caught in 6 of the CSLB’s simultaneous, statewide undercover sting operations conducted this week as part of its fall California Blitz.

Bee StingThe CSLB’s Statewide Investigative Fraud Team (SWIFT) investigators, along with partners from a variety of state and local law enforcement agencies, conducted stings on October 9 and 10, 2013, in Clovis (Fresno County), Ontario (San Bernardino County), Roseville (Placer County), and Seaside (Monterey County). 1-day stings were conducted October 9, 2013, in South Lake Tahoe (El Dorado County) and October 10, 2013, in the area burned in the recent Silver Fire near Banning (Riverside County).

SWIFT investigators posed as homeowners seeking bids for home improvements. CSLB Registrar Steve Sands said that “Homeowners should be nervous when they hear the background of some of the people we caught in these stings.”

Most notable, among those arrested, 2 were registered sex offenders, 2 were individuals with several prior felonies including robbery, rape, burglary and drug possession, 3 were individuals with an active arrest warrant, and several individuals were caught using contractor license numbers belonging to others. 3 of the suspects were taken to jail, and 1 vehicle was towed. Mr. Sands also confirmed that “[u]nlicensed, illegal activity that puts homeowners at risk and legitimate contractors at a competitive disadvantage will not be tolerated.”

Of the 75 individuals arrested, 72 now may face misdemeanor charges for contracting without a license (Bus. & Prof. Code § 7028). The penalty for a conviction is up to six months in jail and/or a fine of up to $5,000.

Of those individuals arrested, 56 also may be charged with illegal advertising (Cal. Bus. & Prof. Code § 7027.1). State law requires contractors to place their license number in all print, broadcast, and online advertisements. Those without a license can advertise to perform jobs valued at less than $500, but the ad must state that they are not a licensed contractor. The penalty is a fine of $700 to $1,000.

10 others may be charged with requesting an excessive down payment (Cal. Bus. & Prof. Code § 7159.5). In California, a home improvement project down payment cannot exceed 10% of the contract total or $1,000, whichever is less, unless an appropriate bond is in place (Cal. Bus. & Prof. Code § 7159.5(a)(8)). This misdemeanor charge carries a maximum penalty of 6months in jail and/or up to a $5,000 fine.

13 of those individuals arrested also were issued Stop Orders (Cal. Bus. & Prof. Code § 7127). CSLB investigators can halt job site activity when any person with or without a contractor license does not have workers’ compensation insurance coverage for employees. Failure to comply with a Stop Order can result in misdemeanor charges and penalties, including 60 days in jail and/or up to $10,000 in fines.

A majority of those caught this week were identified through illegal ads posted on craigslist.org.

Additional Sources: California Contractors State License Board; CSLB Laws and Regulations

Photo: Kshitij Garg, Taken Feb. 14, 2009 – Creative Commons

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With the U.S. Congress unable to reach an agreement on a continuing resolution, the U.S. federal government shut down all non-essential services on October 1, 2013. The shutdown will remain in effect until Congress passes appropriations legislation for fiscal year 2014. This Pillsbury client alert, which originally was published in March 2011, provides guidance on how a shutdown affects federal contractors and what they can do to prepare for and react to the shutdown.

Click here for a link to the full alert.

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The U.S. Department of Energy confirmed that the Solar Decathlon 2013 competition and XPO will commence as originally scheduled despite the Government shutdown. The Decathlon will take place October 3 through 13, 2013, at Orange County Great Park in Irvine, California. The competition houses will be open to visitors from 11 a.m. to 7 p.m. daily, Thursday, October 3 through Sunday, October 6, 2013, and Thursday, October 10 through Sunday, October 13, 2013.

The Decathlon is funded, in part, by last year’s federal funding and, in part, by at least 30 private-sector sponsors. Federal employee participation will be limited to personnel essential to allow the show to proceed.

Additional Sources: U.S. Department of Energy Solar Decathlon

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The 20 collegiate teams competing in the U.S. Department of Energy Solar Decathlon 2013 and XPO are gearing up for the start of the Decathlon on October 3. This award-winning program challenged 20 teams to design, build, and operate solar-powered houses that are cost-effective, energy-efficient, and attractive with the ultimate winner being the team that best blends affordability, consumer appeal, and design excellence with optimal energy production and maximum efficiency. The competition houses will be open to visitors for 8 days from 11 a.m. to 7 p.m. daily: (A) Thursday, October 3 through Sunday, October 6, 2013, and (B) Thursday, October 10 through Sunday, October 13, 2013. The event is open to the public free of charge.
2013SolarDecathlon.jpg

After successfully maneuvering through the rigorous selection process, the 20 chosen teams spent two years designing and building a solar-powered house that will be cost-effective to build, energy-efficient and attractive. If that were not enough, their houses must be capable of transportation to the Orange County Great Park in Irvine, California (distances ranging from 41 miles to 16,000 miles). Since the shipping containers arrived in Irvine, the 20 teams have been focusing on reassembling their houses, appliances and furniture for the public exhibit. The teams have only 9 days to reassemble their houses before the start of the competition. As the houses near completion of the reassembly process, they will undergo a variety of inspections, including building, electrical, plumbing, mechanical, and final safety inspections, to ensure compliance with local building codes.

Like the Olympic decathlon, the Decathlon consists of 10 contests designed to gauge how well the houses perform and how livable and affordable they are. Each contest is worth a maximum of 100 points and teams can earn points 3 ways: (1) task completion, e.g., cooking, washing dishes, and doing laundry, (2) monitored performance, (3) jury evaluation. Jurors who are experts in their field (such as architecture, engineering, and communications) award points for features that cannot be measured (such as aesthetics and design inspiration). Contests based on task completion or monitored performance are called measured contests; contests based on jury evaluation are call juried contests. The 10 Decathlon contests are:
—Architecture Contest (juried)
—Market Appeal Contest (juried)
—Engineering Contest (juried)
—Communications Contest (juried)
—Affordability Contest (juried)
—Comfort Zone Contest (measured)
—Hot Water Contest (measured)
—Appliances Contest (measured)
—Home Entertainment Contest (measured and juried)
—Energy Balance Contest (measured).

The 1st, 2nd, and 3rd place winners of these contests will be announced at 10 a.m. in Hangar 244 at the Orange County Great Park: (1) October 10 — Affordability Contest and Market Appeal Contest, (2) October 11 — Communications Contest and Architecture Contest, and (3) October 12 — Engineering Contest. On October 12 at 10 a.m., the other winners of the Decathlon contests will be announced and the competition awards ceremony will take place at Hangar 244 of the Orange County Great Park.

Docents will be available on a first-come, first-served basis to provide 30 to 60 minute walking tours of the Solar Decathlon village with tours departing every 15 minutes from each end of the Solar Decathlon village. Each Decathlon team will provide tours of its competition house during public exhibit hours.

The XPO itself will feature the SunShot Innovation Pavilion, the Bosch Community Fund Powerful Ideas Classroom, the Transportation Zone, the Palm Court Arts Complex, the XPO Food Pavilion, the Foundation for the Great Park Powerful Ideas Symposium, the Competitors Pavilion, the Farm + Food Lab, the ABC Green Home. The XPO.org provides information for guests of the Decathlon and XPO, including driving directions from Interstate 5, Interstate 405 and the 133 Freeway/241 Toll Road.

Additional Sources: Oct. 3-13: U.S. Department of Energy Solar Decathlon 2013 & XPO; The-XPO.org; U.S. Department of Energy Solar Decathlon; Energy Blog

Photo: U.S. Department of Energy Solar Decathlon 2013 collegiate teams gather at Orange County Great Park in Irvine, Calif. on Friday, January 11, 2013 for an all-team photo taken by Stefano Paltera/U.S. Department of Energy – Creative Commons.

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California contractors who violate prevailing wage laws do so at their peril. A recent case, Ogundare v. Department of Industrial Relations (2013) 214 Cal.App.4th 822, held that a one year debarment from bidding on public projects did not implicate a “fundamental vested right.” Consequently, trial court review of a Division of Labor Standards Enforcement decision imposing debarment should have been more deferential to the DLSE decision, evaluating whether substantial evidence supported the decision rather than exercising its independent judgment on the evidence.

In a hearing before the DLSE, a laborer presented his paystub showing that he had worked 61 hours for a contractor in a particular week for $915, or $15/hour. The certified payroll submitted by the contractor to the public owner for that week showed that the laborer had worked 25 hours at the prevailing wage of $36.10/hour. On the basis of this and additional evidence that two other workers had not been paid overtime, the DLSE ordered a one-year debarment of the contractor for commiting willful violations of California’s prevailing wage law with intent to defraud.

When the contractor sought mandamus to set aside the debarment order, the trial court assumed that the right to bid on public projects was a “fundamental vested right.” It then applied its independent judgment to the facts and found no “credible evidence . . . of an intent to defraud” and that willfulness alone was insufficient to support debarment under the relevant statute.

On appeal by the DLSE, the court found that the right to bid on public projects was not a “fundamental vested right”–the contractor was not prohibited from working on all projects, only public ones, and therefore the interest involved was instead “purely economic.” This distinction is critical–administrative adjudications affecting only “purely economic” interests are reviewed under the much more deferential substantial evidence test (phrased in one case as “unless the finding . . . is so lacking in evidentiary support as to render it unreasonable, it may not be set aside.”). The court then applied the substantial evidence standard, and despite the contractor’s pleas of clerical error and lack of intent to defraud, remanded to the trial court to affirm the debarment.

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In addition to introducing their new celebrity part-owner, Shaquille O’Neal, the Sacramento Kings confirmed their concept for an “indoor-outdoor” facility for the new arena that will be constructed in Sacramento’s current Downtown Plaza.

At a recent press conference, majority owner Vivek Ranadive suggested that the design for the $448 million arena “will be the first basketball arena that has this indoor-outdoor feature to it. For concerts and other events, you could actually completely open it up and have 18,000 people inside and another 10,000 people outside.” He gave few other details, saying, “You’ll have to wait and see the plans.” Minority partner Mark Mastrov told The Sacramento Bee that attendees would be able to view events directly and on giant TV screens the arena’s bowl standing in an outdoor plaza. The designs have not been finalized and community input will be sought.

This news came on the heels of the Sacramento Kings’ announcement that AECOM has been selected as the lead architect for the Sacramento Kings’ new $448 million arena in Downtown Plaza. AECOM is responsible for designing a number of state-of-the-art sports and entertainment venue, including the acclaimed London 2012 Olympic Park and it is designing the Rio 2016 Olympic Park. It has served as the lead architect of 11 NBA arenas, including the Barclays Center, and it designed Aggies Stadium at the University of California, Davis.

The Sacramento Kings’ construction team includes previously hired project manager ICON Venue Group, lead builder Turner Construction, and Sacramento developer

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Did you know that the U.S. Department of Energy’s website hosts a database for tax credits, rebates, savings and, in some cases, loan programs available across the nation to a variety of persons and entities for numerous categories of energy saving improvements? It also identifies loan programs for certain types of energy saving improvements. Searches can be performed using filters, including categories for the state, eligibility, energy saving improvement (“savings for”) and sponsor of the energy saver program. Once a tax credit, rebate, savings or loan program is identified, the database provides a brief summary of the program, and a link to the program sponsor’s official website.money.jpg

The categories of those eligible to enjoy energy saver credits, rebates, savings and, in some cases, loans include, just to name a few, commercial, industrial, institutional, installer/contractor, residential, retail supplier, schools, etc. The credits, rebates, savings and, in some cases, loans are available for a wide variety of types of energy saver improvements, including but not limited to weatherization, design and remodeling, windows, doors, and skylights, cooling, heating and cooling, appliances and electronics, lighting, water heating, water, solar, etc.

Additional Sources: U.S. Department of Energy
Photo: March 9, 2009, Sushiina – Flickr Creative Commons