Bill Text: CA SB1071 | 2023-2024 | Regular Session | Amended
Bill Title: Contractors: workers’ compensation insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-25 - Read second time and amended. Re-referred to Com. on APPR. [SB1071 Detail]
Download: California-2023-SB1071-Amended.html
|
Amended
IN
Senate
April 25, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1071
| Introduced by Senator Dodd |
February 12, 2024 |
An act to amend Section 7125 of the Business and Professions Code, relating to professions and vocations.
LEGISLATIVE COUNSEL'S DIGEST
SB 1071, as amended, Dodd.
Contractors: workers’ compensation insurance reports. 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 authorizes the board to appoint committees and make rules and regulations, as specified.
Existing law, with certain exceptions, requires a licensed contractor, or applicant for licensure, to have on file at all times with the board a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance, as specified. Among the exceptions to this requirement, existing law excludes an applicant or licensee that is organized as a joint venture and
venture, has no employees, and files a statement with the board certifying that they do not employ any person in any manner so as to become subject to the workers’ compensation laws of California or they are not otherwise required to provide for workers’ compensation insurance coverage under California law, as specified. Existing law provides an additional exception for other applicants and licensees who do not hold certain specified licensees, have no employees, and who file the statement described above. Existing law repeals the provisions that provide this additional exception on January 1, 2026.
This bill would extend that repeal date
to January 1, 2028. By expanding the crime of perjury, this bill would impose a state-mandated local program.
This bill would, commencing January 1, 2026, add an additional exception for applicants and licensees that have no employees, if the applicant or licensee provides both an affidavit to the board affirming they have no employees and adequate proof, as provided for by the board, demonstrating they are operating without employees. By expanding the crime of perjury, this 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 7125 of the Business and Professions Code, as amended by Section 1 of Chapter 978 of the Statutes of 2022, is amended to read:7125.
(a) Except as provided in subdivision (b), the board shall require as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, that the applicant or licensee have on file at all times a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance in the applicant’s or licensee’s business name. A Certificate of Workers’ Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer duly licensed to write workers’ compensation insurance in this state. A Certification of Self-Insurance shall be issued and filed by the Director of Industrial Relations. If reciprocity conditions exist, as provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.(b) This section does not apply to an applicant or licensee who meets both of the following conditions:
(1) Has no employees provided that the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee does not employ any person in any manner so as to become subject to the workers’ compensation laws of California or is not otherwise required to provide for workers’ compensation insurance coverage under California law.
(2) Does not hold a C-8 license, as defined in Section 832.08 of Title 16 of the California Code of Regulations, a C-20 license, as defined in Section 832.20 of Title 16 of the California Code of Regulations, a
C-22 license, as defined in Section 832.22 of Title 16 of the California Code of Regulations, a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, or a D-49 license, a subcategory of a C-61 license, as defined in Section 832.61 of Title 16 of the California Code of Regulations.
(c) This section does not apply to an applicant or licensee organized as a joint venture pursuant to Section 7029 that has no employees, provided that the applicant or licensee files the statement prescribed by subparagraph (1) of subdivision (b).
(d) A Certificate of Workers’ Compensation Insurance, Certification of Self-Insurance, or exemption certificate is not required of a holder of a license that has been inactivated on the official records of the board during the period the license is inactive.
(e) (1) The insurer, including the State Compensation Insurance Fund, shall report to the registrar the following information for any policy required under this section: name, license number, policy number, dates that coverage is scheduled to commence and lapse, and cancellation date if applicable.
(2) A workers’ compensation insurer shall also report to the registrar a licensee whose workers’ compensation insurance policy is canceled by the insurer if all of the following conditions are met:
(A) The insurer has completed a premium audit or investigation.
(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.
(C) No reimbursement has been paid by the insured to the
insurer.
(3) Willful or deliberate disregard and violation of workers’ compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.
(f) (1) For any license that, on January 1, 2013, is active and includes a C-39 classification in addition to any other classification, the registrar shall, in lieu of the automatic license suspension otherwise required under this article, remove the C-39 classification from the license unless a valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance is received by the registrar.
(2) For any licensee whose license, after January 1, 2013, is active and has had the C-39 classification removed as provided in paragraph (1), and who is found by the registrar to have employees and to lack a
valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance, that license shall be automatically suspended as required under this article.
(g) (1) For any licensee whose license, after July 1, 2023, is active and includes a C-8, C-20, C-22, or D-49 classification, in addition to any other classification, the registrar shall, in lieu of the automatic license suspension otherwise required under this article, remove the C-8, C-20, C-22, or D-49 classification from the license unless a valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance is received by the registrar.
(2) For any licensee whose license, after July 1, 2023, is active and has had the C-8, C-20, C-22, or D-49 classification removed, as provided in paragraph (1), and who is found by the registrar to have employees and to lack a valid
Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance, that license shall be automatically suspended as required under this article.
(h) The information reported pursuant to paragraph (2) of subdivision (e) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(i) This section shall remain in effect only until January 1, 2026, 2028, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2026,
2028, deletes or extends that date.
SECTION 1.SEC. 2.
Section 7125 of the Business and Professions Code, as added by Section 2 of Chapter 978 of the Statutes of 2022,
is amended to read:7125.
(a) Except as provided in subdivision (b), the board shall require as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, that the applicant or licensee have on file at all times a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance in the applicant’s or licensee’s business name. A Certificate of Workers’ Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer duly licensed to write workers’ compensation insurance in this state. A Certification of Self-Insurance shall be issued and filed by the Director of Industrial Relations. If reciprocity conditions exist, as provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.(b) (1)This section does not apply to an applicant or licensee organized as a joint venture pursuant to Section 7029 that has no employees, provided that the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee does not employ any person in any manner so as to become subject to the workers’ compensation laws of California or is not otherwise required to provide for workers’ compensation insurance coverage under California law.
(2)This section does not apply to an applicant or licensee that has no employees, if the applicant or licensee provides both an affidavit to the board affirming they have no employees and adequate proof demonstrating they are operating without employees. The board shall provide for what proof is adequate, which may vary based on license type.
(c) A Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance is not required of a holder of a license that has been inactivated on the official records of the board during the period the license is inactive.
(d) (1) The insurer, including the State Compensation Insurance Fund, shall report to the registrar the following information for any policy required under this section: name, license
number, policy number, dates that coverage is scheduled to commence and lapse, and cancellation date if applicable.
(2) A workers’ compensation insurer shall also report to the registrar a licensee whose workers’ compensation insurance policy is canceled by the insurer if all of the following conditions are met:
(A) The insurer has completed a premium audit or investigation.
(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.
(C) Reimbursement has not been paid by the insured to the insurer.
(3) Willful or deliberate disregard and violation of
workers’ compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.
(e) The information reported pursuant to paragraph (2) of subdivision (d) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(f) This section shall become operative on January 1, 2026. 2028.
