SB 1071: Contractors: workers’ compensation insurance.

Session Year: 2023-2024
House: Senate

Current Status:

Failed

(2024-05-16: May 16 hearing: Held in committee and under submission.)

Introduced

First Committee Review

First Chamber

Second Committee Review

Second Chamber

Enacted

Version:

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.

Discussed in Hearing