BILL NUMBER: AB 1027	CHAPTERED
	BILL TEXT

	CHAPTER  428
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2005
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2005
	PASSED THE SENATE  SEPTEMBER 8, 2005
	PASSED THE ASSEMBLY  SEPTEMBER 8, 2005
	AMENDED IN SENATE  JULY 7, 2005
	AMENDED IN ASSEMBLY  MAY 16, 2005
	AMENDED IN ASSEMBLY  APRIL 11, 2005

INTRODUCED BY   Assembly Member Jerome Horton

                        FEBRUARY 22, 2005

   An act to amend Section 11751.71 of the Insurance Code, and to add
Section 19529 to the Revenue and Taxation Code, relating to criminal
investigations.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1027, Jerome Horton  Criminal investigation.
   Existing law establishes a procedure for the Director of
Industrial Relations to obtain information from insurance rating
organizations in connection with identifying employers who fail to
secure adequate specified insurance in violation of law.
   This bill would establish a similar procedure for the Registrar of
Contractors of the Contractors State License Board to obtain that
information in connection with licensed contractors who fail to
secure adequate specified insurance in violation of law.
   The bill would also require the Franchise Tax Board to notify the
Registrar of Contractors of the Contractors State License Board, the
Director of Employment Development, the Economic and Employment
Enforcement Coalition, and the Joint Enforcement Strike Force on the
Underground Economy upon the filing of criminal charges against or
arraignment of any individual for a specified violation if the
individual engages in the business or acts in the capacity of a
contractor within this state pursuant to a license issued by the
Contractors State License Board or unlawfully engages in the business
or acts in the capacity of a contractor within this state without
having a license therefor.


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


  SECTION 1.  Section 11751.7 of the Insurance Code is amended to
read:
   11751.7.  (a) The rating organization designated the statistical
agent pursuant to Section 11751.5 shall provide to the Director of
Industrial Relations, upon request, any information in the possession
of, or reasonably attainable by the rating organization, that would
assist the Director of Industrial Relations to identify employers who
fail to secure adequate insurance in violation of Section 3700 of
the Labor Code. The information requested pursuant to this section
shall be provided by the rating organization in a form and manner
prescribed by the Director of Industrial Relations.
   (b) The rating organization designated the statistical agent
pursuant to Section 11751.5 shall provide to the Registrar of
Contractors of the Contractor's State License Board, upon request,
any information in the possession of, or reasonably attainable by,
the rating organization that would assist in identifying licensed
contractors who fail to secure adequate insurance in violation of
Section 3700 of the Labor Code. The information requested pursuant to
this section shall be provided by the rating organization in a form
and manner prescribed by the Registrar of Contractors.
  SEC. 2.  Section 19529 is added to the Revenue and Taxation Code,
to read:
   19529.  The Franchise Tax Board shall notify the Registrar of
Contractors of the Contractors State License Board, the Director of
Employment Development, the Economic and Employment Enforcement
Coalition, and the Joint Enforcement Strike Force on the Underground
Economy upon the arraignment of or the filing of criminal charges
against any individual for a violation of Chapter 9 (commencing with
Section 19701) of this Part if that individual engages in the
business or acts in the capacity of a contractor within this state
pursuant to a license issued by the Contractors State License Board
or if that individual unlawfully engages in the business or acts in
the capacity of a contractor within this state without having a
license therefor.