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. 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.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
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.
P3 1(c) In addition to the penalty specified in subdivision (b), a
2licensing board shall not process an application for an initial license
3unless the applicant provides its federal employer identification
4number, or individual taxpayer identification number or social
5security number where requested on the application.
6(d) A licensing board shall, upon request of the Franchise Tax
7Board or the Employment Development Department, furnish to
8the board or the department, as applicable, the following
9information with respect to every licensee:
11(2) Address or addresses of record.
12(3) Federal employer identification number if the licensee is a
13partnership, or the licensee’s individual taxpayer identification
14number or social security number for all other licensees.
15(4) Type of license.
16(5) Effective date of license or a renewal.
17(6) Expiration date of license.
18(7) Whether license is active or inactive, if known.
19(8) Whether license is new or a renewal.
20(e) For the purposes of this section:
21(1) “Licensee” means a person or entity, other than a
22corporation, authorized by a license, certificate, registration, or
23other means to engage in a business or profession regulated by
24this code or referred to in Section 1000 or 3600.
25(2) “License” includes a certificate, registration, or any other
26authorization needed to engage in a business or profession
27regulated by this code or referred to in Section 1000 or 3600.
28(3) “Licensing board” means any board, as defined in Section
2922, the State Bar, and the Bureau of Real Estate.
30(f) The reports required under this section shall be filed on
31magnetic media or in other machine-readable form, according to
32standards furnished by the Franchise Tax Board or the Employment
33Development Department, as applicable.
34(g) Licensing boards shall provide to the Franchise Tax Board
35or the Employment Development Department the information
36required by this section at a time that the board or the department,
37as applicable, may require.
Chapter 3.5 (commencing with Section
396250) of Division 7 of Title 1 of the Government Code, a federal
40employer identification number, individual taxpayer identification
P4 1number, or social security number furnished pursuant to this section
2shall not be deemed to be a public record and shall not be open to
3the public for inspection.
4(i) A deputy, agent, clerk, officer, or employee of a licensing
5board described in subdivision (a), or any former officer or
6employee or other individual who, in the course of his or her
7employment or duty, has or has had access to the information
8required to be furnished under this section, shall not disclose or
9make known in any manner that information, except as provided
10in this section to the Franchise Tax Board or the Employment
11 Development Department or as provided in subdivision (k).
12(j) It is the intent of the Legislature in enacting this section to
13utilize the federal employer identification number, individual
14taxpayer identification number, or social security number for the
15purpose of establishing the identification of persons affected by
16state tax laws and for purposes of compliance with Section 17520
17of the Family Code and, to that end, the information furnished
18pursuant to this section shall be used exclusively for those
20(k) If the board utilizes a national examination to issue a license,
21and if a reciprocity agreement or comity exists between the State
22of California and the state requesting release of the individual
23taxpayer identification number or social security number, any
24deputy, agent, clerk, officer, or employee of any licensing board
25described in subdivision (a) may release an individual taxpayer
26identification number or social security number to an examination
27or licensing entity, only for the purpose of verification of licensure
28or examination status.
29(l) For the purposes of enforcement of Section 17520 of the
30Family Code, and notwithstanding any other law, a board, as
31defined in Section 22, and the State Bar and the Bureau of Real
32Estate shall at the time of issuance of the license require that each
33licensee provide the individual taxpayer identification number or
34social security number of each individual listed on the license and
35any person who qualifies for the license. For the purposes of this
36subdivision, “licensee” means an entity that is issued a license by
37any board, as defined in Section 22, the State Bar, the Bureau of
38Real Estate, and the Department of Motor Vehicles.
Section 7011.4 of the Business and Professions Code
40 is amended to read:
(a) Notwithstanding Section 7011, there is in the
2Contractors’ State License Board, a separate enforcement division
3that shall rigorously enforce this chapter prohibiting all forms of
4unlicensed activity and shall enforce the obligation to secure the
5payment of valid and current workers’ compensation insurance in
6accordance with Section 3700.5 of the Labor Code.
7(b) Persons employed as enforcement representatives of the
8Contractors’ State License Board and designated by the Director
9of Consumer Affairs shall have the authority to issue a written
10notice to appear in court pursuant to Chapter 5C (commencing
11with Section 853.5) of Title 3 of Part 2 of the Penal Code. An
12employee so designated is not a peace officer and is not entitled
13to safety member retirement benefits as a result of that designation.
14He or she does not have the power of arrest.
15(c) When participating in the activities of the Joint Enforcement
16Strike Force on the Underground Economy pursuant to Section
17329 of the Unemployment Insurance Code, the enforcement
18division shall have free access to all places of labor.
Section 7125.4 of the Business and Professions Code
20 is amended to read:
(a) The filing of the exemption certificate prescribed
22by this article that is false, or the employment of a person subject
23to coverage under the workers’ compensation laws after the filing
24of an exemption certificate without first filing a Certificate of
25Workers’ Compensation Insurance or Certification of
26Self-Insurance in accordance with the provisions of this article, or
27the employment of a person subject to coverage under the workers’
28compensation laws without maintaining coverage for that person,
29constitutes cause for disciplinary action.
30(b) Any qualifier for a license who, under Section 7068.1,
31responsible for assuring that a licensee complies with the provisions
32of this chapter is also guilty of a misdemeanor for committing or
33failing to prevent the commission of any of the acts that are cause
34for disciplinary action under this section.
35(c) It is the intent of the Legislature that the board, in exercising
36its duties pursuant to this chapter and as a participant in the Joint
37Enforcement Strike Force on the Underground Economy, develop
38information relating to workers’ compensation insurance
P6 1 fraud and share that information with the Employment
2Development Department and the Department of Insurance.