Amended in Assembly July 2, 2015

Amended in Assembly June 29, 2015

Amended in Senate April 6, 2015

Senate BillNo. 560

Introduced by Senator Monning

February 26, 2015

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


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:

P2    1


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



(a) (1) Notwithstanding any other law, any board, as
4defined in Section 22, and the State Bar and the Bureau of Real
5Estate shall, at the time of issuance of the license, require that the
6applicant provide its federal employer identification number, if
7the applicant is a partnership, or the applicant’s social security
8number for all other applicants.

9(2) No later than January 1, 2016, in accordance with Section
10135.5, a board, as defined in Section 22, and the State Bar and the
11Bureau of Real Estate shall require either the individual taxpayer
12identification number or social security number if the applicant is
13an individual for purposes of this subdivision.

14(b) A licensee failing to provide the federal employer
15identification number, or the individual taxpayer identification
16number or social security number shall be reported by the licensing
17board to the Franchise Tax Board. If the licensee fails to provide
18that information after notification pursuant to paragraph (1) of
19subdivision (b) of Section 19528 of the Revenue and Taxation
20Code, the licensee shall be subject to the penalty provided in
21paragraph (2) of subdivision (b) of Section 19528 of the Revenue
22and Taxation Code.

23(c) In addition to the penalty specified in subdivision (b), a
24licensing board shall not process an application for an initial license
25unless the applicant provides its federal employer identification
P3    1number, or individual taxpayer identification number or social
2security number where requested on the application.

3(d) A licensing board shall, upon request of the Franchise Tax
4Board or the Employment Development Department, furnish to
5the board or the department, as applicable, the following
6information with respect to every licensee:

7(1) Name.

8(2) Address or addresses of record.

9(3) Federal employer identification number if the licensee is a
10partnership, or the licensee’s individual taxpayer identification
11number or social security number for all other licensees.

12(4) Type of license.

13(5) Effective date of license or a renewal.

14(6) Expiration date of license.

15(7) Whether license is active or inactive, if known.

16(8) Whether license is new or a renewal.

17(e) For the purposes of this section:

18(1) “Licensee” means a person or entity, other than a
19corporation, authorized by a license, certificate, registration, or
20other means to engage in a business or profession regulated by
21this code or referred to in Section 1000 or 3600.

22(2) “License” includes a certificate, registration, or any other
23authorization needed to engage in a business or profession
24regulated by this code or referred to in Section 1000 or 3600.

25(3) “Licensing board” means any board, as defined in Section
2622, the State Bar, and the Bureau of Real Estate.

27(f) The reports required under this section shall be filed on
28magnetic media or in other machine-readable form, according to
29standards furnished by the Franchise Tax Board or the Employment
30Development Department, as applicable.

31(g) Licensing boards shall provide to the Franchise Tax Board
32or the Employment Development Department the information
33required by this section at a time that the board or the department,
34as applicable, may require.

35(h) Notwithstanding Chapter 3.5 (commencing with Section
366250) of Division 7 of Title 1 of the Government Code, a federal
37employer identification number, individual taxpayer identification
38number, or social security number furnished pursuant to this section
39shall not be deemed to be a public record and shall not be open to
40the public for inspection.

P4    1(i) A deputy, agent, clerk, officer, or employee of a licensing
2board described in subdivision (a), or any former officer or
3employee or other individual who, in the course of his or her
4employment or duty, has or has had access to the information
5required to be furnished under this section, shall not disclose or
6make known in any manner that information, except as provided
7in this section to the Franchise Tax Boardbegin insert or the Employment
8 Development Departmentend insert
or as provided in subdivision (k).

9(j) It is the intent of the Legislature in enacting this section to
10utilize the federal employer identification number, individual
11taxpayer identification number, or social security number for the
12purpose of establishing the identification of persons affected by
13state tax laws and for purposes of compliance with Section 17520
14of the Family Code and, to that end, the information furnished
15pursuant to this section shall be used exclusively for those

17(k) If the board utilizes a national examination to issue a license,
18and if a reciprocity agreement or comity exists between the State
19of California and the state requesting release of the individual
20taxpayer identification number or social security number, any
21deputy, agent, clerk, officer, or employee of any licensing board
22described in subdivision (a) may release an individual taxpayer
23identification number or social security number to an examination
24or licensing entity, only for the purpose of verification of licensure
25or examination status.

26(l) For the purposes of enforcement of Section 17520 of the
27Family Code, and notwithstanding any other law, a board, as
28defined in Section 22, and the State Bar and the Bureau of Real
29Estate shall at the time of issuance of the license require that each
30licensee provide the individual taxpayer identification number or
31social security number of each individual listed on the license and
32any person who qualifies for the license. For the purposes of this
33subdivision, “licensee” means an entity that is issued a license by
34any board, as defined in Section 22, the State Bar, the Bureau of
35Real Estate, and the Department of Motor Vehicles.


SEC. 2.  

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



(a) Notwithstanding Section 7011, there is in the
39Contractors’ State License Board, a separate enforcement division
40that shall rigorously enforce this chapter prohibiting all forms of
P5    1unlicensed activity and shall enforce the obligation to secure the
2payment of valid and current workers’ compensation insurance in
3accordance with Section 3700.5 of the Labor Code.

4(b) Persons employed as enforcement representatives of the
5Contractors’ State License Board and designated by the Director
6of Consumer Affairs shall have the authority to issue a written
7notice to appear in court pursuant to Chapter 5C (commencing
8with Section 853.5) of Title 3 of Part 2 of the Penal Code. An
9employee so designated is not a peace officer and is not entitled
10to safety member retirement benefits as a result of that designation.
11He or she does not have the power of arrest.

12(c) When participating in the activities of the Joint Enforcement
13Strike Force on the Underground Economy pursuant to Section
14329 of the Unemployment Insurance Code, the enforcement
15division shall have free access to all places of labor.

16begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 7125.4 of the end insertbegin insertBusiness and Professions Codeend insert
17begin insert is amended to read:end insert



(a) The filing of the exemption certificate prescribed
19by this article that is false, or the employment of a person subject
20to coverage under the workers’ compensation laws after the filing
21of an exemption certificate without first filing a Certificate of
22Workers’ Compensation Insurance or Certification of
23Self-Insurance in accordance with the provisions of this article, or
24the employment of a person subject to coverage under the workers’
25compensation laws without maintaining coverage for that person,
26constitutes cause for disciplinary action.

27(b) Any qualifier for a license who, under Sectionbegin delete 7068.1end deletebegin insert 7068.1,end insert
28 is responsible for assuring that a licensee complies with the
29provisions of thisbegin delete chapter,end deletebegin insert chapterend insert is also guilty of a misdemeanor
30for committing or failing to prevent the commission of any of the
31acts that are cause for disciplinary action under this section.

begin insert

32(c) It is the intent of the Legislature that the board, in exercising
33its duties pursuant to this chapter and as a participant in the Joint
34Enforcement Strike Force on the Underground Economy, develop
35information relating to workers’ compensation insurance fraud
36and share that information with the Employment Development
37Department and the Department of Insurance.

end insert