Schwarzenegger Proposes Increase in Unlicensed Operation Enforcement

In his proposed 2005-2006 budget, Arnold Schwarzenegger has aimed to crack down on the underground economy-an effort that should benefit licensed contractors.

Submitted last month, the proposal calls for an additional $1 million and 10.5 new positions for the Contactors State License Board to increase enforcement activities in an effort to reign in the underground economy. According to the California Landscape Contractors Association (CLCA), the CSLB will seek out unlicensed workers through sweep and sting operations. They will work in coordination with state government departments under the Labor and Workforce Development Agency. The number of investigations opened as a result of consumer complaints against unlicensed individuals will also be increased.

The CLCA states that this effort would be part of the Administration's proposed Economic and Employment Enforcement coalition, a partnership of enforcement agencies that would identify the worst offenders for targeted workplace enforcement actions throughout the state. Dubbed the ?EUR??,,????'??Triple E Coalition,?EUR??,,????'?? the partnership would consist of investigators and auditors from the Department of Industrial Relations, the Employment Development Department, and the Department of Consumer Affairs. The goal is to combine each group's abilities to create one efficient, knowledgeable team.

The governor sees the underground economy as a greater threat to California's small businesses than low wage competition from other countries. He will submit a revised version of the budget in May and once the revision is approved by the Legislature, is should be signed into law around July.