Amended in Assembly July 2, 2015

Amended in Assembly June 29, 2015

Amended in Senate April 6, 2015

Senate Bill No. 560

Introduced by Senator Monning

February 26, 2015

An act to amend Sections begin delete 30 and 7011.4 end delete begin insert 30, 7011.4, and 7125.4 end insert of the Business and Professions Code, relating to professions and vocations.

LEGISLATIVE COUNSEL’S DIGEST

SB 560, as amended, Monning. Licensing boards: unemployment insurance.

(1) Existing law provides for the licensure and regulation of various professions and vocations and creates boards, commissions, and bureaus, among other entities, in the Department of Consumer Affairs to this end. The State Bar Act provides for the licensure and regulation of attorneys by the State Bar of California. Existing law requires a licensing board, as defined, including the State Bar, to provide specified personal information regarding licensees to the Franchise Tax Board in a prescribed form and at a time the Franchise Tax Board may require. Existing law creates within the Labor and Workforce Development Agency the Employment Development Department, which administers the unemployment compensation program.

This bill would additionally require a licensing board to submit personal information regarding licensees, described above, to the Employment Development Department.

(2) The Contractors’ State License Law provides for the licensure and regulation of contractors by the Contractors’ State License Board within the Department of Consumer Affairs. The act establishes an enforcement division within the board that is required to enforce prohibitions against all forms of unlicensed activity, as specified.

This bill would authorize the enforcement division to additionally enforce the obligation to secure the payment of valid and current workers’ compensation insurance, as specified. begin insert The bill would also state legislative intent that the board develop information on workers’ compensation insurance fraud, as specified, and share it with the Employment Development Department and the Department of Insurance. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 30 of the Business and Professions Code
is amended to read:

30.  

(a) (1) Notwithstanding any other law, any board, as
defined in Section 22, and the State Bar and the Bureau of Real
Estate shall, at the time of issuance of the license, require that the
applicant provide its federal employer identification number, if
the applicant is a partnership, or the applicant’s social security
number for all other applicants.

(2) No later than January 1, 2016, in accordance with Section
135.5, a board, as defined in Section 22, and the State Bar and the
Bureau of Real Estate shall require either the individual taxpayer
identification number or social security number if the applicant is
an individual for purposes of this subdivision.

(b) A licensee failing to provide the federal employer
identification number, or the individual taxpayer identification
number or social security number shall be reported by the licensing
board to the Franchise Tax Board. If the licensee fails to provide
that information after notification pursuant to paragraph (1) of
subdivision (b) of Section 19528 of the Revenue and Taxation
Code, the licensee shall be subject to the penalty provided in
paragraph (2) of subdivision (b) of Section 19528 of the Revenue
and Taxation Code.

(c) In addition to the penalty specified in subdivision (b), a
licensing board shall not process an application for an initial license
unless the applicant provides its federal employer identification
number, or individual taxpayer identification number or social
security number where requested on the application.

(d) A licensing board shall, upon request of the Franchise Tax
Board or the Employment Development Department, furnish to
the board or the department, as applicable, the following
information with respect to every licensee:

(1) Name.

(2) Address or addresses of record.

(3) Federal employer identification number if the licensee is a
partnership, or the licensee’s individual taxpayer identification
number or social security number for all other licensees.

(4) Type of license.

(5) Effective date of license or a renewal.

(6) Expiration date of license.

(7) Whether license is active or inactive, if known.

(8) Whether license is new or a renewal.

(e) For the purposes of this section:

(1) “Licensee” means a person or entity, other than a
corporation, authorized by a license, certificate, registration, or
other means to engage in a business or profession regulated by
this code or referred to in Section 1000 or 3600.

(2) “License” includes a certificate, registration, or any other
authorization needed to engage in a business or profession
regulated by this code or referred to in Section 1000 or 3600.

(3) “Licensing board” means any board, as defined in Section
22, the State Bar, and the Bureau of Real Estate.

(f) The reports required under this section shall be filed on
magnetic media or in other machine-readable form, according to
standards furnished by the Franchise Tax Board or the Employment
Development Department, as applicable.

(g) Licensing boards shall provide to the Franchise Tax Board
or the Employment Development Department the information
required by this section at a time that the board or the department,
as applicable, may require.

(h) Notwithstanding Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code, a federal
employer identification number, individual taxpayer identification
number, or social security number furnished pursuant to this section
shall not be deemed to be a public record and shall not be open to
the public for inspection.

(i) A deputy, agent, clerk, officer, or employee of a licensing
board described in subdivision (a), or any former officer or
employee or other individual who, in the course of his or her
employment or duty, has or has had access to the information
required to be furnished under this section, shall not disclose or
make known in any manner that information, except as provided
in this section to the Franchise Tax Board begin insert or the Employment
Development Department end insert or as provided in subdivision (k).

(j) It is the intent of the Legislature in enacting this section to
utilize the federal employer identification number, individual
taxpayer identification number, or social security number for the
purpose of establishing the identification of persons affected by
state tax laws and for purposes of compliance with Section 17520
of the Family Code and, to that end, the information furnished
pursuant to this section shall be used exclusively for those
purposes.

(k) If the board utilizes a national examination to issue a license,
and if a reciprocity agreement or comity exists between the State
of California and the state requesting release of the individual
taxpayer identification number or social security number, any
deputy, agent, clerk, officer, or employee of any licensing board
described in subdivision (a) may release an individual taxpayer
identification number or social security number to an examination
or licensing entity, only for the purpose of verification of licensure
or examination status.

(l) For the purposes of enforcement of Section 17520 of the
Family Code, and notwithstanding any other law, a board, as
defined in Section 22, and the State Bar and the Bureau of Real
Estate shall at the time of issuance of the license require that each
licensee provide the individual taxpayer identification number or
social security number of each individual listed on the license and
any person who qualifies for the license. For the purposes of this
subdivision, “licensee” means an entity that is issued a license by
any board, as defined in Section 22, the State Bar, the Bureau of
Real Estate, and the Department of Motor Vehicles.

SEC. 2.  

Section 7011.4 of the Business and Professions Code
is amended to read:

7011.4.  

(a) Notwithstanding Section 7011, there is in the
Contractors’ State License Board, a separate enforcement division
that shall rigorously enforce this chapter prohibiting all forms of
unlicensed activity and shall enforce the obligation to secure the
payment of valid and current workers’ compensation insurance in
accordance with Section 3700.5 of the Labor Code.

(b) Persons employed as enforcement representatives of the
Contractors’ State License Board and designated by the Director
of Consumer Affairs shall have the authority to issue a written
notice to appear in court pursuant to Chapter 5C (commencing
with Section 853.5) of Title 3 of Part 2 of the Penal Code. An
employee so designated is not a peace officer and is not entitled
to safety member retirement benefits as a result of that designation.
He or she does not have the power of arrest.

(c) When participating in the activities of the Joint Enforcement
Strike Force on the Underground Economy pursuant to Section
329 of the Unemployment Insurance Code, the enforcement
division shall have free access to all places of labor.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 7125.4 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7125.4.  

(a) The filing of the exemption certificate prescribed
by this article that is false, or the employment of a person subject
to coverage under the workers’ compensation laws after the filing
of an exemption certificate without first filing a Certificate of
Workers’ Compensation Insurance or Certification of
Self-Insurance in accordance with the provisions of this article, or
the employment of a person subject to coverage under the workers’
compensation laws without maintaining coverage for that person,
constitutes cause for disciplinary action.

(b) Any qualifier for a license who, under Section begin delete 7068.1 end delete begin insert 7068.1, end insert
is responsible for assuring that a licensee complies with the
provisions of this begin delete chapter, end delete begin insert chapter end insert is also guilty of a misdemeanor
for committing or failing to prevent the commission of any of the
acts that are cause for disciplinary action under this section.

begin insert

(c) It is the intent of the Legislature that the board, in exercising
its duties pursuant to this chapter and as a participant in the Joint
Enforcement Strike Force on the Underground Economy, develop
information relating to workers’ compensation insurance fraud
and share that information with the Employment Development
Department and the Department of Insurance.

end insert