UNLICENSED CONTRACTORS IN ADVERTISING Amend 7027.2 B&PC

DrywallDoneRite · Joined: 03 Jun 2008 Posts: 1 Karma: 0 (0)

For more than two years the UCA has been determined to find ways of improving
the
lot of licensed contractors who are forced to compete unfairly for a smaller
share of
the home improvement dollar against the growing ranks of unlicensed operators
that
flood the marketplace with false or misleading advertising.

We believe in creating a strong network of local licensed contractors that
promote each other will be a major asset to our members and the consumers who
visit http://www.gouca.org to find high quality local licensed tradesman.

On May 29th 2008 we attended an Industry Meeting at the Sac. offices of the
CSLB. This was a private meeting to update Government Affairs officials,
lobbyists, and leaders representing California's largest building industry
associations on current CSLB accomplishments and activities. Carrie Lopez the
Director of the Department Consumer Affairs, opened the meeting by making it
clear that the DCA was dedicated to the effort of reducing and crushing the
underground
economy. The UCA is currently building a relationship with Consumer Affairs to
assist in any way possible to make it so.

Below are examples of current events and topics discussed at the Industry
Meeting tho not widely publicized,
and issues we will review for our members at our meeting on June 6th.

The possibility that the CSLB will be dismantled at the conclusion of the
Sunset (SB 963) date of January 2009.

Dave Fogt announced the targeted sting program for contractor associations.
Increased focus on Owner Builder contractor issues at building departments (AB
2335).

Improved integration with legislative affairs firms relating to CSLB projects
and administration.
Discuss the draft of proposed goals and CSLB strategic enforcement plans.

Review of Assembly and Senate bills sponsored by the CSLB in the 2007-2008
Legislative Session.
Proposed changes to 'Mechanics lien' civil action enacted under SB 1691.

Worth watching.
This past spring, the House of Representative
passed HR 660, the Association Health Plan Act. (AHP's) On the Senate side of
Congress, companion legislation S.545 was introduced and sent to the Senate
Committee on Health, Education, Labor, and Pensions for hearings. Even with
bipartisan support, S.545 has yet to be heard and move out of the committee for
a full Senate vote.

If passed, AHPs will provide small businesses the opportunity to band together
through bona fide trade and professional associations to purchase affordable
health benefits.

Advertising and Branding recognition for the UCA name.
From talking to many of our members it has become very clear that advertising
cost among other expenses of doing business have risen sharply without
providing satisfactory results. In order to promote our members we are
considering mass mailers to promote the UCA site containing the Find a
Contractor page. The benefit will be increased consumer traffic to the UCA site
and
greater exposure for our members.

The UCA has had meetings with the California State Licensing Schools in an
effort to build a new member base. This development has the potential to allow
the UCA to follow thru on one of its primary missions of ongoing Contractor
support and education by helping foster higher standards in our industry and
will benefit consumers and ultimately the scope of level business practice in
California.

The UCA has defined several primary directives for 2008-2009.
First, we have concluded that in order to promote the healthy growth of
Contractor business, the amendment of Business and Professions Code 7027.2 must
be sought.

This code dating back some 20 years thus-far has caused a logjam in our courts.
In the effort to combat unlicensed contractor advertising, this loophole stands
squarely between licensed and unlicensed contractors rights in advertising.
Currently, the law states that it is ok to advertise for construction work as
long as the advertisement states that the person is unlicensed. This is why
nearly 90% of the cases brought by the CSLB before administrative law judges
are thrown out allowing underground operators to continue and thrive. This is
absolutely UNacceptable.

We took this position before the CSLB board members
and those attending the recent meeting of industry leaders, lobbyists and
Governmental Affairs reps. It seemed to come as some surprise that this
loophole 7027.2 was even an issue, and that the UCA was leading the debate on
how to resolve it. This clearly demonstrates the disconnect between Legislators
and those of us on the front lines who deal daily with its impact.

Ultimately, this is a Consumer Safety issue. We believe that no one should be
able to advertise for any kind of construction work in California, especially
in private homes, without first having been fingerprinted and undergone a
background check with the Dept. of Justice.

This may well be accomplished by creating a new classification of license. For
example, in order to advertise in California for construction valued at less
than $500 the individual must include a registration or certificate number
provided by the CSLB in ANY advertising. When a consumer looks up the
registration number at the
CSLB site, the page will display a Handyman Registration Number including
information on dollar limits, and clearly summarize the responsibilities and
liabilities associated with hiring this person.

Additionally, instructions on how to
provide workers comp and liability insurance should be displayed. This page
should also include a photo ID of the person holding the registration or
certification number. There should be ZERO tolerance for advertising without
either a valid State Contractor License or a Handyman Registration Number.
Those who use business license numbers to advertise will be notified of the new
laws if successfully signed by the Governor.

In order for any changes of the B&PC to have the desired result, there must be
clearly defined consequences to breaking them. The UCA is adamant about
consolidating the necessary support to see that these arguments are heard by
our legislators who are responsible for an amendments introduction.

We are familiarizing ourselves with the Legislative process and are determined
to lead the charge to amend 7027.2
This is a two year process at best, longer if it faces opposition in either the
Assembly (80 members) or the Senate (40 members)

If you are interested in helping us grow the
UCA and developing the UCA brand-name, or have connections that may be useful,
show up at the meeting and let us know.
The UCA is a not for profit Association and tax deductible donations are
gratefully
accepted. Pay-Pal has been added to our web site to make the process of joining
with the UCA as a premium member ($245 per year prorated) or donating as a
corporation simple.

100% of the work we have done since the founding of the United Contractors
Association has been a voluntary effort and funded solely by membership dues
and donations. We continue to seek your support. The time is now to get off
your hands and stop waiting for the government to do something. We need to say
it, they need to hear it.

I look forward to seeing you at our next meeting. If you are planning to attend
for the first time, rest assured that we are not a stuffy board meeting with
tons of structure and a big gavel. We are loose knit and informal, you can
order a lunch, hear and be heard by other professionals who may or may not
share your opinion. We do have some structure as a basic forum, but remain
keenly aware and respectful of the
mood and discourse of our members.

Till then,

Scott Day
UNITED CONTRACTORS ASSOCIATION PRESIDENT