BILL NUMBER: AB 878	CHAPTERED
	BILL TEXT

	CHAPTER  686
	FILED WITH SECRETARY OF STATE  OCTOBER 9, 2011
	APPROVED BY GOVERNOR  OCTOBER 9, 2011
	PASSED THE SENATE  AUGUST 22, 2011
	PASSED THE ASSEMBLY  AUGUST 29, 2011
	AMENDED IN SENATE  AUGUST 16, 2011
	AMENDED IN SENATE  JUNE 14, 2011
	AMENDED IN ASSEMBLY  APRIL 25, 2011
	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Bill Berryhill
   (Principal coauthor: Assembly Member Monning)

                        FEBRUARY 17, 2011

   An act to amend Section 7125 of the Business and Professions Code,
relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 878, Bill Berryhill. Contractors: workers' compensation
insurance.
   Existing law, the Contractors' State License Law, provides for the
licensing and regulation of contractors by the Contractors' State
License Board within the Department of Consumer Affairs. Existing law
authorizes the board to appoint a registrar of contractors and
requires a workers' compensation insurer to report to the registrar
specified information regarding a licensee's workers' compensation
policy.
   This bill would, additionally, require a workers' compensation
insurer to report to the registrar a licensee whose workers'
compensation insurance policy is canceled by the insurer if the
insurer has completed a premium audit or investigation, a material
misrepresentation has been made by the insured that results in
financial harm to the insurer, and no reimbursement has been paid by
the insured to the insurer. The bill would provide that that
information is not subject to the California Public Records Act. The
bill would also provide that a willful or deliberate disregard and
violation of workers' compensation insurance laws constitutes a cause
for disciplinary action by the registrar against the licensee.
   Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.
   This bill would make legislative findings to that effect.


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

  SECTION 1.  Section 7125 of the Business and Professions Code, as
amended by Section 1 of Chapter 423 of the Statutes of 2010, is
amended to read:
   7125.  (a) Except as provided in subdivision (b), the board shall
require as a condition precedent to the issuance, reinstatement,
reactivation, renewal, or continued maintenance of a license, that
the applicant or licensee have on file at all times a current and
valid Certificate of Workers' Compensation Insurance or Certification
of Self-Insurance. A Certificate of Workers' Compensation Insurance
shall be issued and filed, electronically or otherwise, by one or
more insurers duly licensed to write workers' compensation insurance
in this state. A Certification of Self-Insurance shall be issued and
filed by the Director of Industrial Relations. If reciprocity
conditions exist, as defined in Section 3600.5 of the Labor Code, the
registrar shall require the information deemed necessary to ensure
compliance with this section.
   (b) This section does not apply to an applicant or licensee who
meets both of the following conditions:
   (1) Has no employees provided that he or she files a statement
with the board on a form prescribed by the registrar prior to the
issuance, reinstatement, reactivation, or continued maintenance of a
license, certifying that he or she does not employ any person in any
manner so as to become subject to the workers' compensation laws of
California or is not otherwise required to provide for workers'
compensation insurance coverage under California law.
   (2) Does not hold a C-39 license, as defined in Section 832.39 of
Title 16 of the California Code of Regulations.
   (c) No Certificate of Workers' Compensation Insurance,
Certification of Self-Insurance, or exemption certificate is required
of a holder of a license that has been inactivated on the official
records of the board during the period the license is inactive.
   (d) (1) The insurer, including the State Compensation Insurance
Fund, shall report to the registrar the following information for any
policy required under this section: name, license number, policy
number, dates that coverage is scheduled to commence and lapse, and
cancellation date if applicable.
   (2) A workers' compensation insurer shall also report to the
registrar a licensee whose workers' compensation insurance policy is
canceled by the insurer if all of the following conditions are met:
   (A) The insurer has completed a premium audit or investigation.
   (B) A material misrepresentation has been made by the insured that
results in financial harm to the insurer.
   (C) No reimbursement has been paid by the insured to the insurer.
   (3) Willful or deliberate disregard and violation of workers'
compensation insurance laws constitutes a cause for disciplinary
action by the registrar against the licensee.
   (e) (1) For any license that, on January 1, 2011, is active and
includes a C-39 classification in addition to any other
classification, the registrar shall, in lieu of the automatic license
suspension otherwise required under this article, remove the C-39
classification from the license unless a valid Certificate of Workers'
Compensation Insurance or Certification of Self-Insurance is
received by the registrar.
   (2) For any licensee whose license, after January 1, 2011, is
active and has had the C-39 classification removed as provided in
paragraph (1), and who is found by the registrar to have employees
and to lack a valid Certificate of Workers' Compensation Insurance or
Certification of Self-Insurance, that license shall be automatically
suspended as required under this article.
   (f) The information reported pursuant to paragraph (2) of
subdivision (d) shall be confidential, and shall be exempt from
disclosure under the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code).
   (g) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
  SEC. 2.  Section 7125 of the Business and Professions Code, as
amended by Section 2 of Chapter 423 of the Statutes of 2010, is
amended to read:
   7125.  (a) The board shall require as a condition precedent to the
issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee have on file
at all times a current and valid Certificate of Workers'
Compensation Insurance or Certification of Self-Insurance. A
Certificate of Workers' Compensation Insurance shall be issued and
filed, electronically or otherwise, by one or more insurers duly
licensed to write workers' compensation insurance in this state. A
Certification of Self-Insurance shall be issued and filed by the
Director of Industrial Relations. If reciprocity conditions exist, as
defined in Section 3600.5 of the Labor Code, the registrar shall
require the information deemed necessary to ensure compliance with
this section.
   (b) This section does not apply to an applicant or licensee who
has no employees provided that he or she files a statement with the
board on a form prescribed by the registrar prior to the issuance,
reinstatement, reactivation, or continued maintenance of a license,
certifying that he or she does not employ any person in any manner so
as to become subject to the workers' compensation laws of California
or is not otherwise required to provide for workers' compensation
insurance coverage under California law.
   (c) No Certificate of Workers' Compensation Insurance,
Certification of Self-Insurance, or exemption certificate is required
of a holder of a license that has been inactivated on the official
records of the board during the period the license is inactive.
   (d) (1) The insurer, including the State Compensation Insurance
Fund, shall report to the registrar the following information for any
policy required under this section: name, license number, policy
number, dates that coverage is scheduled to commence and lapse, and
cancellation date, if applicable.
   (2) A workers' compensation insurer shall also report to the
registrar a licensee whose workers' compensation insurance policy is
canceled by the insurer if all of the following conditions are met:
   (A) The insurer has completed a premium audit or investigation.
   (B) A material misrepresentation has been made by the insured that
results in financial harm to the insurer.
   (C) No reimbursement has been paid by the insured to the insurer.
   (3) Willful or deliberate disregard and violation of workers'
compensation insurance laws constitutes a cause for disciplinary
action by the registrar against the licensee.
   (e) The information reported pursuant to paragraph (2) of
subdivision (d) shall be confidential, and shall be exempt from
disclosure under the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code).
   (f) This section shall become operative on January 1, 2013.
  SEC. 3.  The Legislature finds and declares that Sections 1 and 2
of this act, which amend Section 7125 of the Business and Professions
Code, impose a limitation on the public's right of access to the
meetings of public bodies or the writings of public officials and
agencies within the meaning of Section 3 of Article I of the
California Constitution. Pursuant to that constitutional provision,
the Legislature makes the following findings to demonstrate the
interest protected by this limitation and the need for protecting
that interest:
   In order to allow the Contractors' State License Board to fully
implement the Contractors' State License Law, it is imperative to
protect the interests of those persons submitting information to the
board to ensure that any personal or sensitive business information
that this act requires those persons to submit is protected as
confidential information.