AB 996: Contractors Licensing Board Web site: search function for workers’ compensation claims.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-07-17
Existing law, the Contractors State License Law, requires the Contractors State License Board, on or before January 1, 2019, to adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers to search for a licensed contractor either by ZIP Code or geographic location.
This bill would require the Contractors State License Board, on or before January 1, 2020, to adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers and licensees to monitor the status and progress of a successfully filed workers compensation certification that is pending before the board, as specified.
Existing law requires a contractor to comply with specified documentation of workers compensation insurance coverage as a condition precedent to receiving or maintaining the contractors license.
This bill would state that these provisions do not change the requirements for workers compensation documentation.
Existing law, the Contractors State License Law, requires the Contractors State License Board, on or before January 1, 2019, to adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers to search for a licensed contractor either by ZIP Code or geographic location.
This bill would require the Contractors State License Board Board, on or before January 1, 2020, to adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers and licensees to monitor the status and progress of a licensees application for, or renewal of, a certificate of workers compensation insurance or certification of self-insurance successfully filed workers compensation certification that is pending before the board, as specified. The bill would also require the Internet Web site to denote that when the application is in the possession of the board past the 30-day deadline, the status would state that the application is pending review and that the failure to have a certificate on file is due to circumstances beyond the control of the licensee.
Existing law, the Contractors State License Law, requires the Contractors State License Board, on or before January 1, 2019, to adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers to search for a licensed contractor either by ZIP Code or geographic location.
This bill would require the Contractors State License Board to adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers and licensees to monitor the status and progress of a licensees application for, or renewal of, a certificate of workers compensation insurance or certification of self-insurance that is pending before the board, as specified. The bill would also require the Internet Web site to denote that when the application is in the possession of the board past the 30-day deadline, the status would state that the application is pending review and that the failure to have a certificate on file is due to circumstances beyond the control of the licensee.
On or before January 1, 2020, the board shall adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers and licensees to do all of the following:
(a)Monitor the status and progress of a successfully filed workers compensation certification being reviewed by the board, including a visual tool that provides the date the application was filed, the status of each of the components of the certification that have been filed, and that shows that the review is being reviewed and shown as pending until the final disposition has been approved by the registrar.
(b)View the daily record of the average time elapsed from the time the board receives the certification until a final disposition has been approved by the registrar.
(c)This section does not change the requirements set forth in Section 7125.
On or before January 1, 2020, the board shall adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers and licensees to do all of the following:
(a)Monitor the status and progress of a successfully filed workers compensation renewal application certification being reviewed by the board, including a visual tool that provides the date the application was filed, the status of each of the components of the renewal application certification that have been filed, and that shows that the review is being reviewed and shown as pending until the final disposition has been approved by the registrar.
(b)View the daily record of the average time elapsed from the time the board receives the renewal application certification until a final disposition has been approved by the registrar.
(c)Clearly denote that any application for a certificate of workers compensation insurance or certification of self-insurance that has been in the possession of the board past the 30-day deadline is pending review and the failure to have a certificate on file is due to circumstances beyond the control of the licensee.On or before January 1, 2020, the board shall adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers and licensees to do all of the following:
(a)Monitor the status and progress of a successfully filed workers compensation renewal application being reviewed by the board, including a visual tool that provides the date the application was filed, the status of each of the components of the renewal application that have been filed, and that shows that the review is being reviewed and shown as pending until the final disposition has been approved by the registrar.
(b)View the daily record of the average time elapsed from the time the board receives the renewal application until a final disposition has been approved by the registrar.
(c)Clearly denote that any application for a certificate of workers compensation insurance or certification of self-insurance that has been in the possession of the board past the 30-day deadline is pending review and the failure to have a certificate on file is due to circumstances beyond the control of the licensee.
|
Date
|
Status
|
|---|---|
| Sep 1, 2017 | In committee: Held under submission. |
| Aug 21, 2017 | In committee: Referred to APPR. suspense file. |
| Jul 17, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 13, 2017 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 10). |
| Jun 14, 2017 | Referred to Com. on B., P. & E.D. |
| Jun 1, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 31, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 1. Page 1996.) |
| May 30, 2017 | Read second time. Ordered to third reading. |
| May 26, 2017 | From committee: Amend, and do pass as amended. (Ayes 16. Noes 0.) (May 26). |
| May 3, 2017 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 19, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 14. Noes 0.) (April 18). Re-referred to Com. on APPR. |
| Mar 2, 2017 | Referred to Com. on B. & P. |
| Feb 17, 2017 | From printer. May be heard in committee March 19. |
| Feb 16, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 21, 2017 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 10, 2017 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Business, Professions and Economic Development |
Passed |
|
| May 31, 2017 | AB 996 CUNNINGHAM Assembly Third Reading | Assembly Floor |
Passed |
|
| May 26, 2017 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 18, 2017 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Business and Professions |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Associated General Contractors | ** Support | Jul 7, 2017 |
| cys structural engineers, inc. | ** Support | Jul 7, 2017 |
| Sacramento Regional Builders Exchange | ** Support | Jul 7, 2017 |
| Small Business California | ** Support | Jul 7, 2017 |
| valley contractors exchange, inc. | ** Support | Jul 7, 2017 |
SENATE COMMITTEE ON
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
AB 996 (Cunningham) - Contractors Licensing Board Web site: search function for workers’ compensation claims
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 996 would require the Contractors State License Board to add a feature to its website that would allow the public to monitor the status of a contractor’s workers compensation certification.
Fiscal Impact:
One-time costs of $500,000 to $800,000 for the Contractors State License Board to hire an outside contractor to make the necessary system changes to the Board’s internal licensing system and the external website, to allow the tracking of workers compensation certificates required in the bill (Contractors License Fund).
Background:
The Contractors State License Board is responsible for licensing and regulating construction-related entities in California. All businesses and individuals who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the Board if the total cost is $500 or more.
Workers' compensation insurance is required for the issuance of an active license, the reactivation of an inactive license, and for the maintenance of an actively renewed license, with certain exceptions. Licensees are required to submit proof of their workers' compensation insurance coverage to the Board. Failure to maintain workers' compensation insurance coverage will result a license being suspended and any work performed while the license is suspended is considered to be unlicensed and disciplinary action can be taken against a licensee.
Proposed Law:
AB 996 would require the Contractors State License Board to add a feature to its website that would allow the public to monitor the status of a contractor’s workers compensation certification.
The required system would allow members of the public to view specific information about a contractor’s workers compensation certification, including the date that the application was filed, the status, and other information.
The bill would also require the Board to make available to the public the average time elapsed from the time the Board receives a workers’ compensation certification until a final decision has been made.
The Board would be required to implement the bill by January 1, 2020.
Staff Comments:
Concerns have been raised by the sponsors of this bill that backlogs in the review of workers’ compensation certificates result in licensed contractors being unable to continue to operate until the Board has processed a certificate.
This bill would require the development of an expensive technology enhancement to the Board’s licensing system and public website, without addressing any underlying issues with the Board’s staffing level or work processes which may be leading to delays in the review of workers’ compensation certificates.
-- END --
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2017 - 2018 Regular
Bill No: Hearing Date: July 10, 2017
Author: | |||
Version: | May 26, 2017 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Elissa Silva | ||
Subject:
SUMMARY:
Requires, the Contractors State License Board (CSLB) to adopt an enhancement feature on its Internet Web site to allow consumers to monitor the status and progress of a workers’ compensation certification, as specified, and view the time elapsed from when the CSLB receives the certification until a final disposition has been approved.
Existing law:
- Provides for the licensure and regulation of contractors, including home improvement contractors, under the Contractors' State License Law (Contractors Law) by the CSLB within the DCA. The CSLB is under the direction of the registrar of contractors. (Business and Professions Code (BPC) § 7000 et seq.)
- Requires 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 with the CSLB, a current and valid Certificate of Workers Compensation Insurance (certificate) or Certification of Self-Insurance in the applicant’s or licensee’s business name. (BPC § 7125(a))
- Requires the certificate to be issued and filed electronically or otherwise by an insurer duly licensed to write workers compensation insurance in California.
(BPC § 7125(a)) - Exempts licensees or applicants who have no employees or do not hold a C-39 license from the certification requirements, as specified. (BPC § 7125(b))
- Requires the registrar to accept a certificate as of the effective date shown on the certificate, if the certificate is received by the registrar within 90 days after that date, and must reinstate the license to which the certificate pertains if otherwise eligible retroactive to the effective date of the certificate, and permits the registrar to accept a certificate that is not received within the 90 days if the licensee can prove to the registrar that the certificate is not on file due to circumstances beyond the licensee’s control. (BPC §7125.1)
- States that the failure of a licensee to obtain or maintain workers compensation insurance coverage will result in the automatic suspension of the licensee, and specifies that the license suspension is effective upon the earlier of the date that the relevant workers’ compensation insurance coverage lapses or on the date that workers’ compensation coverage is required to be obtained. (BPC § 7125.2(a))
- Requires the CSLB, prior to January 1, 2019 add an enhancement to the current contractor license check search function that permits consumers to search for a licensed contractor by either zip code or geographic location. (BPC § 7018)
- Requires the CSLB to maintain a computerized enforcement tracking system for consumer complaints. (BPC § 7020)
This bill:
- Requires the CSLB, on or before January 1, 2020, to adopt an enhancement to the current contractor license check search function on its Internet Web site to permit consumers and licensees to do all of the following:
- Monitor the status and progress of a successfully filed workers’ compensation certification being reviewed by the CSLB, including a visual tool that provides the date the application was filed, the status of each of the components of the certification that have been filed, and that shows that the review is being reviewed and shown as pending until the final disposition has been approved by the registrar; and,
- View the daily record of the average time elapsed from the time the CSLB receives the certification until a final disposition has been approved by the registrar.
FISCAL EFFECT:
This bill is keyed fiscal by the Legislative Counsel. According to the Assembly Committee on Appropriations analysis dated May 3, 2017,
- One-time costs in the range of $210,000 to $320,000 (Contractors State License Board Fund) to program and modify the existing licensing system and update the website. The Board anticipates needing to hire one information technology consultant for approximately 2,000 hours at an hourly rate of $95 to $150. This estimate also includes 300 hours of project oversight and consultant accountability by a System Software Specialist III.
- Ongoing costs to maintain the new licensing system and website are minor and absorbable.
COMMENTS:
- Purpose. This bill is sponsored by the Sacramento Regional Builders Exchange. According to the Author, “The CSLB does allow a 30-day grace period to process renewal certificates. However, when the CSLB system experiences backlogs (end of the year spikes, furloughs, staff reductions, etc.), California licenses will be suspended despite the CSLB being in possession of the application prior to their deadline. The CSLB has taken up to 6-8 weeks to review and process a renewal workers’ compensation certificate causing an applicant to have their license to operate “suspended” forcing them to cease their operations, send employees home and causing unnecessary harm to their ability to secure prospective clients for future projects.”
- Background. The CSLB is responsible for implementation and enforcement of the Contractors Law and the laws and regulations related to licensure and enforcement of construction related entities in California. All businesses and individuals who construct or alter, or offer to construct or alter, any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the CSLB if the total cost (labor and materials) of one or more contracts on the project is $500 or more.
Workers' compensation insurance is required for the issuance of an active license, the reactivation of an inactive license, and for the maintenance of an actively renewed license, unless specifically exempted under BPC § 7125(b). Licensees are required to submit proof of their workers' compensation insurance coverage to CSLB. Failure to maintain workers' compensation insurance coverage will result a license being suspended and any work performed while the license is suspended is considered to be unlicensed and disciplinary action can be taken against a licensee. The CSLB notifies licensees of the requirements to submit a certificate for renewal with licensure renewal information. Licensure renewal and certificate renewals may have different expiration dates.
This bill will require the CSLB to create an online tracking system for a licensee or a consumer to track and monitor their certificate renewal status online. The system would allow licensees to follow the progress of a “successfully” filed application all the way through the process through the use of a visual tool. The Author argues the CSLB has taken up to 6-8 weeks to review and process a renewal for a certificate causing an applicant to have a suspended license. While this bill would allow the licensee to monitor their application, it is unclear how it would resolve any delays in processing. Consumers can verify the licensure status of a contractor by visiting the CSLB’s Web site. In addition to the viewing whether the license is active, expired, or otherwise disciplined, the Web site provides information about whether or not the licensee has worker’s compensation insurance, the carrier and the expiration date of the insurance.
Earlier this year, the CSLB had experienced backlogs in processing certifications. Since licensees, (unless specifically exempt) are required to have workers’ compensation insurance, delays in processing the certification could result in licensure suspensions; thereby potentially impacting a licensee’s business. If a license is suspended for lack of worker’s compensation insurance and the licensee submits verification to the CSLB within 30 days, the license is renewed retroactively to the date the certification was expired resulting in no break in the licensure status of the licensee ensuring that the licensee is not penalized for operating without a license.
- Arguments in Support. Valley Contractors Exchange, Inc. writes in support, “Often CSLB will take up to 5-6 weeks to review and process an annual renewal notice for a worker’s compensation certificate. When the contractors workers’ compensation expiration date is passed, the CSLB will issue a suspension notice on the license even though the renewal was filed on time, and in fact the CSLB is in possession of proof. The website will indicate the contractor’s license is suspended which implies the contractor has done something wrong and is unable to contract.”
The Sacramento Regional Builders Exchange and CYS Structural Engineers, Inc. writes in support, “current law, requires every licensed contractor to have on file at all times with the CSLB a current and valid Certificate of Workers’ Compensation Insurance or Certificate of Self-Insurance. Unfortunately, licensed contractors who have filed their renewal certificate of workers’ compensation will before the deadline often become victims of bureaucratic delays that cause their company to cease activities and force their workers off job sites.”
- Prior Related Legislation. AB 2486 (Baker, Chapter 270, Statutes of 2016) required the CSLB, by January 1, 2019, to update its Web site to allow consumers to search for a licensed contractor by zip code or geographic locator.
- Policy Questions, Concerns, and Suggested Author’s Amendments.
- What is a “successfully filed certificate”? As currently drafted, this bill would require the monitoring tool be active for those certifications which have been “successfully filed”. It is unclear what a “successfully filed” application entails. There are a number of issues which may result in the delay of certification processing, including incomplete applications, duplicate information, late filings and other applicant errors. It is unclear if incomplete applications or applications with other issues would be available for updates through the tracking system proposed by this bill. The Committee may wish to require the online tracking system to specify deficient applications as well.
- Will this bill have any impact on delays in CSLB processing certificates? The sponsors of this bill indicate that the CSLB is slow to process workers’ compensation certificates, resulting in licensure suspension which can in turn impact a contractor’s business. This bill requires the CSLB to create an online tracking system, but is unclear how a tracking system will increase efficiencies at the CSLB.
If the real problem this bill seeks to address is delays at the CSLB, this bill will most likely not resolve that issue by adding an additional step for the CSLB to administer in the certification review process. Delays at the CSLB may be better addressed through the sunset review process.
- Potential confusion may arise. This bill will require the CSLB to create a Web site enhancement feature for a licensee or a consumer to use in order to track and monitor a licensee’s certificate renewal status online. While it appears the Author’s intent is to provide a search feature on the CSLB’s Web site to update consumers and licensees on the status of a pending certificate review, it could be confusing to consumers and licensees if they attempt to interpret the review process as a satisfactory demonstration that the licensee has complied with workers’ compensation requirements.
In order to clarify that this bill will not alter or change a licensee’s requirement to have workers’ compensation insurance, or unintentionally authorize a contractor to provide license-required contract work while the certificate is in the review process unless otherwise authorized by law, the Author may wish to consider amending the bill to specify:
This section does not change the requirements set forth in Business and Professions Code § 7125.
SUPPORT AND OPPOSITION:
Support:
Sacramento Regional Builders Exchange (sponsor)
Valley Contractors Exchange, Inc.
CYS Structural Engineers, Inc.
Small Business California (Introduced version)
Associated General Contractors (Introduced version)
Opposition:
None on file as of July 5, 2017.
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 996
Author:(Cunningham and Brough)
As Amended Ver:May 26, 2017
Majority vote
Committee | Votes | Ayes | Noes |
Business & Professions | 14-0 | Low, Arambula, Baker, Bloom, Chiu, Cunningham, Dahle, Gloria, Gipson, Grayson, Holden, Irwin, Caballero, Steinorth | |
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Calderon, McCarty, Quirk, Fong, Friedman, Gallagher, Eduardo Garcia, Gray, Muratsuchi, Reyes |
SUMMARY: Requires that the Contractors State Licensing Board (CSLB) make improvements to its website to allow the monitoring of a licensee's renewal of a certificate of worker's compensation insurance or certification of self-insurance that is pending before the CSLB. Specifically, this bill:
- Requires, on or before January 1, 2020, that CSLB enhance its website to allow consumers and licensees to track the progress of renewal applications for certificates of workers' compensation.
- Requires the enhancement to including a visual tool that provides: a) the date the application was filed, b) the status of each of the components of the renewal application that have been filed, and c) confirmation that the review is being reviewed and shown as pending until the final disposition has been approved by the registrar.
- Requires that the website show the daily record of the average time elapsed from the time the board received the application to the time a determination is made.
- Requires that the Web site clearly show if an application for workers' compensation or certification of self-insurance has been in possession of the CSLB past the 30-day deadline for review and whether any failure to have a certificate on file is due to circumstances beyond the control of the licensee.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in:
- One-time costs in the range of $210,000 to $320,000 (Contractors State License Board Fund) to program and modify the existing licensing system and update the website. The Board anticipates needing to hire one information technology consultant for approximately 2,000 hours at an hourly rate of $95 to $150. This estimate also includes 300 hours of project oversight and consultant accountability by a System Software Specialist III.
- Ongoing costs to maintain the new licensing system and website are minor and absorbable.
COMMENTS:
Purpose. This bill is sponsored by the Sacramento Regional Builders Exchange. According to the author, "California has a long tradition in support of open government and access to government processes and AB 996 is about greater transparency and accountability.
"Far too often, licensed contractors who submit their renewal workers' compensation policy certificates with the CSLB are met with delays and back-logs. While the CSLB allows 30 days to process certificates, often because of staffing issues, budget cuts, or lack of automated processing, the CSLB may take as long as 6 to 8 weeks to process, causing a license to be suspended. Suspension of a license forces all construction activities to cease and employees to stop working. This administrative delay not only hurts the economy, but places unwarranted shame on a licensee.
"AB 996 does not change the verification process, but merely ensures that information already collected by the CSLB is available on their website for both consumers and contractors. Specifically, when the workers' compensation renewal certificate was received; verification that it is being reviewed; identify any outstanding items; and provide a visual scale to consumers and licensees of the average time it takes to process these certificates.
AB 996 will instill greater confidence among licensees and will provide greater accuracy and clarification for consumers of the status of a contractor's license."
Background. The bill would require the CSLB to create a system for licensees to track their application for workers' compensation certificates. The system would allow licensees to follow the progress of their application all the way through the review process and would flag applications that been in the possession of the board for more than 30 days.
The CSLB has been backlogged this year in processing workers compensation certificates and this can cause problems for contractors who must have an active certificate to avoid having their license suspended. If a license is suspended for lack of workers' compensation and the licensee submits verification of workers' compensation within 30 days, the license is renewed retroactively to the date the certificate expired so that there is no official break in licensure.
Though this retroactive licensure ensures that licensees are not penalized for operating without a license during that time, the temporary suspension in license can be stressful for the licensee that is not sure when the certificate will be renewed and license backdated. The author argues that providing applicants with a web portal that they can use to track the progress of their application will help to allay some of these concerns. However, it is unclear how the CSLB would accommodate this requirement. The CSLB does not utilize the BreEZe system utilized by a number of other boards and bureaus under the Department of Consumer Affairs. Further, it is unclear how it would be determined whether the delay in verification is outside of the licensee's control.
Analysis Prepared by: Jimmy Fremgen / B. & P. / (916) 319-3301 FN: 0000883
Date of Hearing: May 3, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 996
Author:(Cunningham) – As Introduced Ver:February 16, 2017
Policy Committee: | Business and Professions | Vote: | 14 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY: This bill requires the Contractors State Licensing Board (Board) to make improvements to its website to allow the monitoring of a licensee’s renewal of a certificate of worker’s compensation insurance or certification of self-insurance that is pending before the Board. Specifically, this bill:
- Requires, on or before January 1, 2020, that the Board enhance its website to allow consumers and licensees to track the progress of renewal applications for certificates of workers’ compensation.
- Requires the enhancement to including a visual tool that provides: 1) the date the application was filed, 2) the status of each of the components of the renewal application that have been filed, and 3) confirmation that the review is being reviewed and shown as pending until the final disposition has been approved by the registrar.
- Requires that the website show the daily record of the average time elapsed from the time the board received the application to the time a determination is made.
- Requires that the website clearly show if an application for workers’ compensation or certification of self-insurance has been in possession of the Board past the 30-day deadline for review and whether any failure to have a certificate on file is due to circumstances beyond the control of the licensee.
FISCAL EFFECT:
- One-time costs in the range of $210,000 to $320,000 (Contractors State License Board Fund) to program and modify the existing licensing system and update the website. The Board anticipates needing to hire one information technology consultant for approximately 2,000 hours at an hourly rate of $95 to $150. This estimate also includes 300 hours of project oversight and consultant accountability by a System Software Specialist III.
- Ongoing costs to maintain the new licensing system and website are minor and absorbable.
COMMENTS:
- Purpose. According to the author, “Far too often, licensed contractors who submit their renewal workers’ compensation policy certificates with the Board are met with delays and back-logs. While the Board allows 30 days to process certificates, often because of staffing issues, budget cuts, or lack of automated processing, the Board may take as long as 6 to 8 weeks to process, causing a license to be suspended. Suspension of a license forces all construction activities to cease and employees to stop working. This administrative delay not only hurts the economy, but places unwarranted shame on a licensee.
AB 996 does not change the verification process, but merely ensures that information already collected by the Board is available on their website for both consumers and contractors. AB 996 will instill greater confidence among licensees and will provide greater accuracy and clarification for consumers of the status of a contractor’s license.” - Background. The Board is the regulatory entity within the Department of Consumer Affairs, responsible for licensing contractors and enforcing the Contractors State License Law. The Board licenses approximately 300,000 contractors in 44 license classifications and 2 certifications. California requires licensed contractors to be used on any construction project that costs more than $500. The Board currently collects information about its licensees that it publishes to its website.
Contractor licensees are required to carry adequate workers’ compensation insurance for the accurate number of employees they employ and submit to the Board either an exemption or Certificate of Self Insurance. Workers' compensation insurance is required for issuance of an active license, reactivation of an inactive license, and for the maintenance of an actively renewed license. Workers' compensation coverage must be continuous. Failure to obtain or maintain workers' compensation insurance coverage will result in the license being suspended.
The Board allows for a 30-day grace period before they suspend a license. However, if the system is backlogged, the CSLB may take up to 5-6 weeks to review and process a renewal application for a workers’ compensation certificate.
AB 996 seeks to enhance Board's website to provide both consumers and contractors a more detailed updates and progress of thee licensee’s renewal application.
- Prior Legislation.
AB 2486 (Baker), Chapter 270, Statutes of 2016, required the Board to establish a tool on its website for searching contractors by Zip Code or geographic location.
SB 560 (Monning), Chapter 389, Statutes of 2015, authorizes the enforcement division of the Board to enforce the obligation of licensees to obtain workers’ compensation insurance.
Analysi.s Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 18, 2017
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Rudy Salas, Chair
ABPCA Bill Id:AB 996
Author:(Cunningham) – As Introduced Ver:February 16, 2017
SUBJECT: Contractors Licensing Board Web site: search function for workers compensation claims.
SUMMARY: Requires that the Contractors State Licensing Board (CSLB) make improvements to its website to allow the monitoring of a licensee’s renewal of a certificate of worker’s compensation insurance or certification of self-insurance that is pending before the CSLB.
EXISTING LAW:
- Requires contractor license search by zip code or geographic location (Business and Professions Code (BPC) Section 7018)
- Requires the CSLB to maintain a computerized tracking system for tracking customer complaints. (BPC Section 7020)
THIS BILL:
- Requires, on or before January 1, 2020, that CSLB enhance its website to allow consumers and licensees to track the progress of renewal applications for certificates of workers’ compensation.
- Requires the enhancement to including a visual tool that provides: 1) the date the application was filed, 2) the status of each of the components of the renewal application that have been filed, and 3) confirmation that the review is being reviewed and shown as pending until the final disposition has been approved by the registrar.
- Requires that the website show the daily record of the average time elapsed from the time the board received the application to the time a determination is made.
- Requires that the website clearly show if an application for workers’ compensation or certification of self-insurance has been in possession of the CSLB past the 30-day deadline for review and whether any failure to have a certificate on file is due to circumstances beyond the control of the licensee.
FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel.
COMMENTS:
Purpose. This bill is sponsored by the Sacramento Regional Builders Exchange. According to the author, “California has a long tradition in support of open government and access to government processes and AB 996 is about greater transparency and accountability.
Far too often, licensed contractors who submit their renewal workers’ compensation policy certificates with the CSLB are met with delays and back-logs. While the CSLB allows 30 days to process certificates, often because of staffing issues, budget cuts, or lack of automated processing, the CSLB may take as long as 6 to 8 weeks to process, causing a license to be suspended. Suspension of a license forces all construction activities to cease and employees to stop working. This administrative delay not only hurts the economy, but places unwarranted shame on a licensee.
AB 996 does not change the verification process, but merely ensures that information already collected by the CSLB is available on their website for both consumers and contractors. Specifically, when the workers’ compensation renewal certificate was received; verification that it is being reviewed; identify any outstanding items; and provide a visual scale to consumers and licensees of the average time it takes to process these certificates.
AB 996 will instill greater confidence among licensees and will provide greater accuracy and clarification for consumers of the status of a contractor’s license.”
Background. The bill would require the CSLB to create a system for licensees to track their application for workers’ compensation certificates. The system would allow licensees to follow the progress of their application all the way through the review process and would flag applications that been in the possession of the board for more than 30 days.
The CSLB has been backlogged this year in processing workers compensation certificates and this can cause problems for contractors who must have an active certificate to avoid having their license suspended. If a license is suspended for lack of workers’ compensation and the licensee submits verification of workers’ compensation within 30 days, the license is renewed retroactively to the date the certificate expired so that there is no official break in licensure.
Though this retroactive licensure ensures that licensees are not penalized for operating without a license during that time, the temporary suspension in license can be stressful for the licensee that is not sure when the certificate will be renewed and license backdated. The author argues that providing applicants with a web portal that they can use to track the progress of their application will help to allay some of these concerns. However, it is unclear how the CSLB would accommodate this requirement. The CSLB does not utilize the BreEZe system utilized by a number of other boards and bureaus under the Department of Consumer Affairs. Further, it is unclear how it would be determined whether the delay in verification is outside of the licensee’s control.
Prior Related Legislation.
AB 2486 (Baker), Chapter 270, Statutes of 2016: Required CSLB to establish a tool on its website for searching contractors by Zip Code or geographic location.
SB 560 (Monning), Chapter 389, Statutes of 2015: Authorized the enforcement division of CSLB to enforce the obligation of licensees to obtain workers’ compensation insurance.
ARGUMENTS IN SUPPORT:
The Sacramento Regional Builders Exchange (sponsor) writes in support, “California has embraced sunshine laws and AB 996 is a modest step to provide greater transparency and accountability within the CSLB.”
ARGUMENTS IN OPPOSITION:
None on file
POLICY ISSUE(S) FOR CONSIDERATION:
Many boards and bureaus across DCA would benefit from taking a serious look at licensing and verification timelines, and CSLB is no exception. However, the issues being addressed by AB 996 may not be resolved with the passage of this legislation. There are a number of factors that may go into a delay in processing that are outside the control of CSLB, including, incomplete documentation, duplicate documents, inconsistent certificates, and other applicant related errors. CSLB automatically generates reminders for licensees 30 days ahead of certificate expiration, but it is unclear how many licenses are suspended because licensees fail to submit the documentation in a timely fashion.
IMPLEMENTATION ISSUES:
It is uncertain how the CSLB would provide access through the internet for tracking the progress of certificate verification. As the CSLB does not utilize BreEZe the CSLB would have to find a solution for doing so, potentially at great cost.
REGISTERED SUPPORT:
Sacramento Regional Builders Exchange (sponsor)
REGISTERED OPPOSITION:
None on File
Analysis Prepared by: Jimmy Fremgen / B. & P. / 916-319-3301
Discussed in Hearing
Senate Standing Committee on Business, Professions and Economic Development
Assembly Floor
Assembly Standing Committee on Appropriations
Assembly Standing Committee on Business and Professions
Bill Author
Bill Co-Author(s):