BILL NUMBER: AB 2816	CHAPTERED
	BILL TEXT

	CHAPTER  1098
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2002
	PASSED THE ASSEMBLY  AUGUST 29, 2002
	PASSED THE SENATE  AUGUST 28, 2002
	AMENDED IN SENATE  AUGUST 26, 2002
	AMENDED IN SENATE  AUGUST 19, 2002
	AMENDED IN SENATE  JUNE 28, 2002
	AMENDED IN ASSEMBLY  APRIL 22, 2002

INTRODUCED BY   Assembly Member Shelley
   (Coauthors:  Assembly Members Aroner, Chavez, Diaz, Firebaugh,
Havice, Koretz, and Strom-Martin)
   (Coauthor:  Senator Romero)

                        FEBRUARY 25, 2002

   An act to add Section 3302 to the Labor Code, relating to workers'
compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2816, Shelley.  Workers' compensation:  contractors:  temporary
labor.
   Existing workers' compensation law generally requires employers to
secure the payment of workers' compensation for injuries incurred by
their employees that arise out of or in the course of employment.
Recovery under workers' compensation law is the sole and exclusive
remedy of an employee or his or her dependents against the employer.
The failure to secure workers' compensation as required by the
workers' compensation law is a misdemeanor.
   Existing law, the Contractor's State License Law, provides for the
regulation of licensed contractors.
   This bill, for purposes of the workers' compensation law, would
provide that when a contractor enters an agreement with a temporary
employment agency, employment referral service, labor contractor, or
other similar entity for the entity to supply the contractor with an
individual to perform acts or contracts under the contractor's
license and the contractor is responsible for supervising the
individual, the temporary employment agency, employment referral
service, labor contractor, or other similar entity shall pay workers'
compensation premiums, in accordance with specified criteria, and
shall be solely responsible for the individual's workers'
compensation.  This bill would also require these entities to report
to insurers certain information pertaining to these workers and the
licensed contractors to whom these workers are provided, and allow
these entities to pass through costs incurred as a result of this
bill to licensed contractors.
   This bill would require the contractor to notify the entity that
is supplying the temporary worker pursuant to these provisions when
the temporary worker is being used on a public works project or the
contractor reassigns the temporary worker to a position other than
the classification to which the worker was originally assigned.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 3302 is added to the Labor Code, to read:
   3302.  (a) (1) When a licensed contractor enters an agreement with
a temporary employment agency, employment referral service, labor
contractor, or other similar entity for the entity to supply the
contractor with an individual to perform acts or contracts for which
the contractor's license is required under Chapter 9 (commencing with
Section 7000) of Division 3 of the Business and Professions Code and
the licensed contractor is responsible for supervising the employee'
s work, the temporary employment agency, employment referral service,
labor contractor, or other similar entity shall pay workers'
compensation premiums based on the contractor's experience
modification rating.
   (2) The temporary employment agency, employment referral service,
labor contractor, or other similar entity described in paragraph (1)
shall report to the insurer both of the following:
   (A) Its payroll on a monthly basis in sufficient detail to allow
the insurer to determine the number of workers provided and the wages
paid to these workers during the period the workers were supplied to
the licensed contractor.
   (B) The licensed contractor's name, address, and experience
modification factor as reported by the licensed contractor.
   (C) The workers' compensation classifications associated with the
payroll reported pursuant to subparagraph (A).  Classifications shall
be assigned in accordance with the rules set forth in the California
Workers' Compensation Uniform Statistical Reporting Plan published
by the Workers' Compensation Insurance Rating Bureau.
   (b) The temporary employment agency, employment referral service,
labor contractor, or other similar entity supplying the individual
under the conditions specified in subdivision (a) shall be solely
responsible for the individual's workers' compensation, as specified
in subdivision (a).
   (c) Nothing in this section is intended to change existing law in
effect on December 31, 2002, as it relates to the sole remedy
provisions of this division and the special employer provisions of
Section 11663 of the Insurance Code.
   (d) A licensed contractor that is using a temporary worker
supplied pursuant to subdivision (a) shall notify the temporary
employment agency, employment referral service, labor contractor, or
other similar entity that supplied that temporary worker when either
of the following occurs:
   (1) The temporary worker is being used on a public works project.

   (2) The contractor reassigns a temporary worker to a position
other than the classification to which the worker was originally
assigned.
   (e) A temporary employment agency, employment referral service,
labor contractor, or other similar entity may pass through to a
licensed contractor any additional costs incurred as a result of this
section.