AB 2894: Contractors: workers’ compensation insurance.
- Session Year: 2021-2022
- House: Assembly
- Latest Version Date: 2022-06-21
Existing law, the Contractors State License Law, provides for the licensing and regulation of contractors by the Contractors State License Board within the Department of Consumer Affairs. Existing law generally requires an applicant for a contractors 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 requires an active licensee with an exemption for workers compensation insurance on file with the board, at the time of renewal, to either recertify the licensees exemption or provide a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance, as applicable, and prohibits renewal of a license unless a licensee satisfies those requirements. Existing law makes a violation of these provisions a misdemeanor.
This bill would require the board to require a licensee to inform the board of their workers compensation classification code, except as specified, and would require the board to post that information on its internet website. all active licensees who have on file a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance, or are required to provide those certificates, to certify on the license renewal form the workers compensation classification codes endorsed on the licensees policy, as specified, and would prohibit renewal without that certification. 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. This bill would make the bills provisions operative on July 1, 2023. Because a violation of these provisions would be a crime, 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.
Existing law, the Contractors State License Law, provides for the licensing and regulation of contractors by the Contractors State License Board within the Department of Consumer Affairs. Existing law generally requires an applicant for a contractors 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 the board to require a licensee to inform the board of their workers compensation classification code, except as specified, and would require the board to post that information on its internet website. Because a violation of these provisions would be a crime, 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.
(a)At the time of renewal, all active licensees with an exemption for workers compensation insurance on file with the board, submitted pursuant to subdivision (b) of Section 7125, shall either recertify the licensees exemption by completing a recertification statement on the license renewal form, as provided by the board, or shall provide a current and valid Certificate of Workers Compensation Insurance or Certificate Certification of Self-Insurance, whichever is applicable.
(b)The license shall not be renewed unless a licensee with an exemption for workers compensation insurance on file with the board recertifies the exemption status or provides a current and valid Certificate of Workers Compensation Insurance or Certificate Certification of Self-Insurance in conjunction with the license renewal.
(c)If the documentation required by subdivision (a) 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 after 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.
(d)This section shall remain in effect only until July 1, 2023, and as of that date is repealed.
SEC. 2.Section 7125.5 is added to the Business and Professions Code, to read:7125.5.(a)At the time of renewal, all active licensees with an exemption for workers compensation insurance on file with the board, submitted pursuant to this article, shall either recertify the licensees exemption by completing a recertification statement on the license renewal form, as provided by the board, or shall provide a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance, whichever is applicable.
(b)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), shall certify on the license renewal form the workers compensation classification code or codes developed by the Workers Compensation Insurance Rating Bureau or otherwise approved by the Insurance Commissioner, endorsed on the licensees policy for the three 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 all the classification codes reported on the policy.
(c)A license shall not be renewed unless the licensee complies with this section. 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 after 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.
(d)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).
(e)This section shall become operative on July 1, 2023.
SEC. 2.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
(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 inform the board, in the form and manner prescribed by the board, of their workers compensation classification code developed by the Workers Compensation Insurance Rating Bureau or otherwise approved by the Insurance Commissioner.
(b)This section does not apply to an applicant or licensee that is exempt from the requirement to have on file a Certificate of Workers Compensation Insurance or Certification of Self-Insurance, as provided in subdivision (b) or (c) of Section 7125.
(c)The board shall post on its internet website the information provided pursuant to subdivision (a).
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
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Date
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Status
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| Aug 11, 2022 | In committee: Held under submission. |
| Aug 2, 2022 | In committee: Referred to suspense file. |
| Jun 28, 2022 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 1.) (June 27). Re-referred to Com. on APPR. |
| Jun 21, 2022 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D. |
| Jun 8, 2022 | Referred to Com. on B., P. & E.D. |
| May 26, 2022 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 25, 2022 | Read third time. Passed. Ordered to the Senate. (Ayes 65. Noes 0. Page 5025.) |
| May 5, 2022 | Read second time. Ordered to third reading. |
| May 4, 2022 | Coauthors revised. |
| Apr 20, 2022 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 20). Re-referred to Com. on APPR. |
| Apr 5, 2022 | From committee: Do pass and re-refer to Com. on INS. (Ayes 13. Noes 2.) (April 5). Re-referred to Com. on INS. |
| Mar 17, 2022 | Referred to Coms. on B. & P. and INS. |
| Feb 19, 2022 | From printer. May be heard in committee March 21. |
| Feb 18, 2022 | Introduced. To print. |
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Date
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Description
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Location
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Votes
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| May 25, 2022 | AB 2894 Cooper Assembly Third Reading | Assembly Floor |
Passed |
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Bill Author
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