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 delete The bill would also state legislative intent that the board develop information on workers’ compensation insurance premium fraud, as specified, and share it with the Employment Development Department and the Department of
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
P3 1paragraph (2) of subdivision (b) of Section 19528 of the Revenue
2and Taxation Code.
3(c) In addition to the penalty specified in subdivision (b), a
4licensing board shall not process an application for an initial license
5unless the applicant provides its federal employer identification
6number, or individual taxpayer identification number or social
7security number where requested on the application.
8(d) A licensing board shall, upon request of the Franchise Tax
9Board or the Employment Development Department, furnish to
10the board or the department, as applicable, the following
11information with respect to every licensee:
13(2) Address or addresses of record.
14(3) Federal employer identification number if the licensee is a
15partnership, or the licensee’s individual taxpayer identification
16number or social security number for all other licensees.
17(4) Type of license.
18(5) Effective date of license or a renewal.
19(6) Expiration date of license.
20(7) Whether license is active or inactive, if known.
21(8) Whether license is new or a renewal.
22(e) For the purposes of this section:
23(1) “Licensee” means a person or entity, other than a
24corporation, authorized by a license, certificate, registration, or
25other means to engage in a business or profession regulated by
26this code or referred to in Section 1000 or 3600.
27(2) “License” includes a certificate, registration, or any other
28authorization needed to engage in a business or profession
29regulated by this code or referred to in Section 1000 or 3600.
30(3) “Licensing board” means any board, as defined in Section
3122, the State Bar, and the Bureau of Real Estate.
32(f) The reports required under this section shall be filed on
33magnetic media or in other machine-readable form, according to
34standards furnished by the Franchise Tax Board or the Employment
35Development Department, as applicable.
36(g) Licensing boards shall provide to the Franchise Tax Board
37or the Employment Development Department the information
38required by this section at a time that the board or the department,
39as applicable, may require.
P4 1(h) Notwithstanding
Chapter 3.5 (commencing with Section
26250) of Division 7 of Title 1 of the Government Code, a federal
3employer identification number, individual taxpayer identification
4number, or social security number furnished pursuant to this section
5shall not be deemed to be a public record and shall not be open to
6the public for inspection.
7(i) A deputy, agent, clerk, officer, or employee of a licensing
8board described in subdivision (a), or any former officer or
9employee or other individual who, in the course of his or her
10employment or duty, has or has had access to the information
11required to be furnished under this section, shall not disclose or
12make known in any manner that information, except as provided
13in this section to the Franchise Tax Board or the Employment
14 Development Department or as provided in subdivision (k).
15(j) It is the intent of the Legislature in enacting this section to
16utilize the federal employer identification number, individual
17taxpayer identification number, or social security number for the
18purpose of establishing the identification of persons affected by
19state tax laws and for purposes of compliance with Section 17520
20of the Family Code and, to that end, the information furnished
21pursuant to this section shall be used exclusively for those
23(k) If the board utilizes a national examination to issue a license,
24and if a reciprocity agreement or comity exists between the State
25of California and the state requesting release of the individual
26taxpayer identification number or social security number, any
27deputy, agent, clerk, officer, or employee of any licensing board
28described in subdivision (a) may release an individual taxpayer
29identification number or social security number to an examination
30or licensing entity, only for the purpose of verification of licensure
31or examination status.
32(l) For the purposes of enforcement of Section 17520 of the
33Family Code, and notwithstanding any other law, a board, as
34defined in Section 22, and the State Bar and the Bureau of Real
35Estate shall at the time of issuance of the license require that each
36licensee provide the individual taxpayer identification number or
37social security number of each individual listed on the license and
38any person who qualifies for the license. For the purposes of this
39subdivision, “licensee” means an entity that is issued a license by
P5 1any board, as defined in Section 22, the State Bar, the Bureau of
2Real Estate, and the Department of Motor Vehicles.
Section 7011.4 of the Business and Professions Code
4 is amended to read:
(a) Notwithstanding Section 7011, there is in the
6Contractors’ State License Board, a separate enforcement division
7that shall rigorously enforce this chapter prohibiting all forms of
8unlicensed activity and shall enforce the obligation to secure the
9payment of valid and current workers’ compensation insurance in
10accordance with Section 3700.5 of the Labor Code.
11(b) Persons employed as enforcement representatives of the
12Contractors’ State License Board and designated by the Director
13of Consumer Affairs shall have the authority to issue a written
14notice to appear in court pursuant to Chapter 5C (commencing
15with Section 853.5) of Title 3 of Part 2 of the Penal Code. An
16employee so designated is not a peace officer and is not entitled
17to safety member retirement benefits as a result of that designation.
18He or she does not have the power of arrest.
19(c) When participating in the activities of the Joint Enforcement
20Strike Force on the Underground Economy pursuant to Section
21329 of the Unemployment Insurance Code, the enforcement
22division shall have free access to all places of labor.
Section 7125.4 of the Business and Professions Code
24 is amended to read:
(a) The filing of the exemption certificate prescribed
26by this article that is false, or the employment of a person subject
27to coverage under the workers’ compensation laws after the filing
28of an exemption certificate without first filing a Certificate of
29Workers’ Compensation Insurance or Certification of
30Self-Insurance in accordance with the provisions of this article, or
31the employment of a person subject to coverage under the workers’
32compensation laws without maintaining coverage for that person,
33constitutes cause for disciplinary action.
34(b) Any qualifier for a license who, under Section 7068.1, is
35responsible for assuring that a licensee complies with the provisions
36of this chapter is also guilty of a misdemeanor for committing or
37failing to prevent the commission of any of the acts that are cause
38for disciplinary action under this section.
39(c) It is the intent of the Legislature that the board, in exercising
40its duties pursuant to this chapter and as a participant in the Joint
P6 1Enforcement Strike Force on the Underground Economy, develop
2information relating to workers’ compensation insurance premium
3fraud and share that information with the Employment
4Development Department and the Department of Insurance.