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