BILL ANALYSIS AB 2305 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2305 (Knight) As Amended August 18, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |62-11|(May 13, 2010) |SENATE: |31-0 |(August 20, | | | | | | |2010) | ----------------------------------------------------------------- Original Committee Reference: B.,P. & C.P. SUMMARY : Extends the sunset date, from January 1, 2011 to January 1, 2013, on existing law requiring a roofing contractor to obtain and maintain workers' compensation insurance, even if he or she has no employees; extends the parallel sunset date requiring the California Department of Insurance (CDI) to report on this effect; and requires automatic license suspension for licensees without proof of insurance, as specified. The Senate amendments : 1)Require automatic license suspension of any licensee whose license, after January 1, 2011, is active and has had the C-39 classification removed, and who is found by the registrar to have employees and lacks a valid Certificate of Workers' Compensation Insurance or Certification of Self-Insurance. 2)Reduce the sunset date by one year to January 1, 2013. 3)Require CDI to submit the specified report to the Legislature, and require the report for the 2008 and 2009 calendar years be submitted by March 1, 2012. 4)Make technical changes. EXISTING LAW requires: 1)Private employers to secure the payment of compensation by obtaining and maintaining workers' compensation insurance or to self-insure as an individual employer or as one employer in a group of employers. The Contractors' State License Law requires every licensed contractor to have on file at all times with the Contractors' State License Board (CLSB) a current and valid Certificate of Workers' Compensation Insurance or Certification of Self-Insurance, or a statement certifying that he or she has no employees and is not required to obtain or maintain workers' compensation insurance coverage. AB 2305 Page 2 2)A contractor, until January 1, 2011, with a C-39 roofing classification to obtain and maintain workers' compensation insurance even if he or she has no employees. Failure to comply with this requirement results in the automatic suspension of the license. AS PASSED BY THE ASSEMBLY , this bill is substantially similar to the version passed by the Senate. FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. Analysis Prepared by : Sarah Weaver / B., P. & C.P. / (916) 319-3301 FN: 0006355