Bill Text: CA AB336 | 2023-2024 | Regular Session | Chaptered


Bill Title: Contractors: workers’ compensation insurance.

Spectrum: Bipartisan Bill

Status: (Passed) 2023-10-07 - Chaptered by Secretary of State - Chapter 323, Statutes of 2023. [AB336 Detail]

Download: California-2023-AB336-Chaptered.html

Assembly Bill No. 336
CHAPTER 323

An act to add Section 7125.6 to the Business and Professions Code, relating to contractors.

[ Approved by Governor  October 07, 2023. Filed with Secretary of State  October 07, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 336, Cervantes. Contractors: workers’ compensation insurance.
Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law generally requires, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, an applicant for a contractor’s license or a licensee to have on file at all times a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance, except as specified. Existing law makes a violation of these provisions a misdemeanor.
This bill would require an active licensee who has on file a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance, or is required to provide those certificates, to certify on the license renewal form the workers’ compensation classification codes endorsed on the licensee’s policy, as specified, and would prohibit renewal without that certification. The bill would provide that the board is not required to verify or investigate the accuracy of the licensee’s classification codes and would prohibit the board from being held liable for any misreported classification codes. The bill would require the board, when it updates the public license detail on its internet website for an active renewal, to include the classification codes certified by the licensee. The bill would make its provisions operative on July 1, 2024. Because the bill would expand the scope of a crime under the Contractors State License Law and expand the crime of perjury, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 7125.6 is added to the Business and Professions Code, to read:

7125.6.
 (a) (1) At the time of renewal, all active licensees who have on file a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance, or who are required to provide those certificates pursuant to subdivision (a) of Section 7125, shall certify on the license renewal form for the three workers’ compensation classification codes for which the highest estimated payroll is reported on the policy. If the licensee has fewer than three classification codes reported on the policy, the licensee shall provide every classification code reported on the policy.
(2) The board shall not be required to verify or investigate the accuracy of the licensee’s classification code or codes provided by the licensee pursuant to paragraph (1).
(3) The board shall not be held liable for any classification code or codes misreported by a licensee.
(b) (1) Except as provided in paragraph (2), a license shall not be renewed unless the licensee complies with this section.
(2) If the documentation and information required by subdivisions (a) and (b) is not provided with the license renewal form but is received within 30 days after notification by the board of the renewal rejection, the registrar shall grant a retroactive renewal pursuant to Section 7141.5 back to the date of the postmark of the otherwise acceptable renewal. A renewal that is still incomplete for any reason more than 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.
(c) When the board updates the public license detail on its internet website for an active renewal submitted by a licensee pursuant to this section, the update shall include the classification code or codes certified by the licensee pursuant to subdivision (b).
(d) This section shall become operative on July 1, 2024.

SEC. 2.

  No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
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