BILL NUMBER: AB 1678 CHAPTERED 10/10/99 CHAPTER 982 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 10, 1999 PASSED THE ASSEMBLY SEPTEMBER 7, 1999 PASSED THE SENATE SEPTEMBER 3, 1999 AMENDED IN SENATE AUGUST 30, 1999 AMENDED IN SENATE AUGUST 17, 1999 AMENDED IN SENATE JULY 1, 1999 AMENDED IN ASSEMBLY APRIL 27, 1999 INTRODUCED BY Committee on Consumer Protection, Governmental Efficiency and Economic Development (Davis (Chair), Leach (Vice Chair), Cox, Lempert, Machado, and Wesson) MARCH 16, 1999 An act to amend Sections 5510, 5536.1, 5536.25, 5582.1, 5616, 7137, 7141, 7159, 8698, 8698.1, 8698.5, and 8698.6 of the Business and Professions Code, to amend Section 3260.1 of the Civil Code, to amend Section 116.220 of the Code of Civil Procedure, to amend Section 19825 of the Health and Safety Code, and to amend Section 3800 of the Labor Code, relating to businesses and professions, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 1678, Committee on Consumer Protection, Governmental Efficiency and Economic Development. Business and professions. (1) Existing law provides for the licensure and regulation of architects by the California Board of Architectural Examiners. Existing law provides that a licensed architect who signs and stamps plans, specifications, reports, or documents shall not be responsible for damage caused by subsequent changes to or uses of those plans, if those subsequent changes or uses are not authorized or approved by that licensed architect, and the service of the architect was not also a proximate cause of the damage. This bill would instead provide that the licensed architect shall not be responsible in those cases if those subsequent changes or uses are not authorized or approved in writing by that licensed architect, the written authorization or approval is not unreasonably withheld by the architect, and the architectual service of the architect is not a proximate cause of the damage. This bill would change the name of the California Board of Architectural Examiners to the California Architects Board and would also make several changes to related provisions, including those specifying grounds for disciplinary action. (2) Existing law provides for the licensure of landscape architects and requires licensees under those provisions to provide customers with detailed written contracts that include certain specified provisions. The bill would make changes to the provisions required to be included in those contracts. (3) Existing law provides for the licensure and regulation of contractors, and prescribes certain licensure fees, including delinquency fees, in this regard. This bill would delete a $25 cap on delinquency licensure fees, which would have the effect of raising revenue flowing into the Contractors' License Fund, a continuously appropriated fund. Thus, this bill would make an appropriation. This bill would also make a technical change in the provisions governing payments to contractors for the construction of private works of improvement, and would make changes to requirements applicable to home improvement contracts and legal actions brought for violations thereof. (4) Existing law requires the Contractors' State License Board to semiannually compile and distribute to city, county, and city and county building departments a list of all contractors who did not secure payment of workers' compensation for workers employed during the preceding 6 months. This bill would make that requirement contingent upon the request of city, county, and city and county building departments. (5) Existing law requires contractors, at the time of receiving any required city or county permit to construct, alter, improve, demolish, or repair any building or structure, to show their valid workers' compensation insurance certificate. This bill would provide that, in the alternative, the city or county may verify the workers' compensation coverage of contractors by electronic means. (6) Existing law provides, until January 1, 2000, for the Structural Fumigation Enforcement Program. This bill would extend the duration of that program until July 1, 2003, and would make other specified changes to the program. (7) Existing law specifies that the jurisdiction of the small claims court includes various actions in which the demand does not exceed $5,000, with specified exceptions. This jurisdiction also includes defendant guarantors who are required to respond based upon the default, actions, or omissions of another, if the demand does not exceed $2,500, or $4,000, if the action is filed on or after January 1, 2000, and the defendant guarantor charges a fee for its guarantor or surety services. This bill would make that $4,000 limit applicable if the action is filed on or after January 1, 2000, and the dependant guarantor charges a fee for its guarantor or surety services or the defendant guarantor is the Registrar of the Contractors' State License Board. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 5510 of the Business and Professions Code is amended to read: 5510. There is in the Department of Consumer Affairs a California Architects Board which consists of 10 members. Any reference in law to the California Board of Architectural Examiners shall mean the California Architects Board. This section shall become inoperative on July 1, 2004, and, as of January 1, 2005, is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2005, deletes or extends the dates on which it becomes inoperative and is repealed. The repeal of this section renders the board subject to the review required by Division 1.2 (commencing with Section 473). SEC. 1.5. Section 5536.1 of the Business and Professions Code is amended to read: 5536.1. (a) All persons preparing or being in responsible control of plans, specifications, and instruments of service for others shall sign those plans, specifications, and instruments of service and all contracts therefor, and if licensed under this chapter shall affix a stamp, which complies with subdivision (b), to those plans, specifications, and instruments of service, as evidence of the person' s responsibility for those documents. Failure of any person to comply with this subdivision is a misdemeanor punishable as provided in Section 5536. This section shall not apply to employees of persons licensed under this chapter while acting within the course of their employment. (b) For the purposes of this chapter, any stamp used by any architect licensed under this chapter shall be of a design authorized by the board which shall at a minimum bear the licensee's name, his or her license number, the legend "licensed architect" and the legend "State of California," and which shall provide a means of indicating the renewal date of the license. (c) The preparation of plans, specifications, or instruments of service for any building, except the buildings described in Section 5537, by any person who is not licensed to practice architecture in this state, is a misdemeanor punishable as provided in Section 5536. (d) The board may adopt regulations necessary for the implementation of this section. SEC. 2. Section 5536.25 of the Business and Professions Code is amended to read: 5536.25. (a) A licensed architect who signs and stamps plans, specifications, reports, or documents shall not be responsible for damage caused by subsequent changes to or uses of those plans, specifications, reports, or documents, where the subsequent changes or uses, including changes or uses made by state or local governmental agencies, are not authorized or approved in writing by the licensed architect who originally signed the plans, specifications, reports, or documents, provided that the written authorization or approval was not unreasonably withheld by the architect and the architectural service rendered by the architect who signed and stamped the plans, specifications, reports, or documents was not also a proximate cause of the damage. (b) The signing and stamping of plans, specifications, reports, or documents which relate to the design of fixed works shall not impose a legal duty or responsibility upon the person signing the plans, specifications, reports, or documents to observe the construction of the fixed works which are the subject of the plans, specifications, reports, or documents. However, this section shall not preclude an architect and a client from entering into a contractual agreement which includes a mutually acceptable arrangement for the provision of construction observation services. This subdivision shall not modify the liability of an architect who undertakes, contractually or otherwise, the provision of construction observation services for rendering those services. (c) "Construction observation services" means periodic observation of completed work to determine general compliance with the plans, specifications, reports, or other contract documents. However, "construction observation services" does not mean the superintendence of construction processes, site conditions, operations, equipment, or personnel, or the maintenance of a safe place to work or any safety in, on, or about the site. For purposes of this subdivision, "periodic observation" means visits by an architect, or his or her agent, to the site of a work of improvement. SEC. 3. Section 5582.1 of the Business and Professions Code is amended to read: 5582.1. (a) The fact that the holder of a license has affixed his or her signature to plans, drawings, specifications, or other instruments of service which have not been prepared by him or her, or under his or her responsible control, constitutes a ground for disciplinary action. (b) The fact that the holder of a license has permitted his or her name to be used for the purpose of assisting any person to evade the provisions of this chapter constitutes a ground for disciplinary action. SEC. 3.5. Section 5616 of the Business and Professions Code is amended to read: 5616. Any landscape architect who agrees to provide professional services pursuant to this chapter shall provide every client with a detailed written contract. That written contract shall include, but not be limited to, all of the following: (a) A description of services to be provided by the landscape architect to the client. (b) A description of any basis of compensation applicable to the contract, including the total price that is required to complete the contract, and the method of payment agreed upon by both parties. (c) A notice that reads: "Landscape architects are licensed by the State of California." (d) The name, address, and license number of the landscape architect and the name and address of the client. (e) A description of the procedure that the landscape architect and client will use to accommodate additional services. SEC. 3.7. Section 7137 of the Business and Professions Code is amended to read: 7137. The amount of the fees prescribed by this chapter shall be fixed by the board according to the following schedule: (a) The application fee for an original license in a single classification shall be two hundred fifty dollars ($250). The application fee for each additional classification applied for in connection with an original license shall be fifty dollars ($50). The application fee for each additional classification pursuant to Section 7059 shall be fifty dollars ($50). The application fee to replace a responsible managing officer or employee pursuant to Section 7068.2 shall be fifty dollars ($50). (b) The fee for rescheduling an examination for an applicant who has applied for an original license, additional classification, a change of responsible managing officer or responsible managing employee, or for an asbestos certification or hazardous substance removal certification, shall be fifty dollars ($50). (c) The initial license fee for an active or inactive license shall be one hundred fifty dollars ($150). (d) The renewal fee for an active license shall be three hundred dollars ($300). The renewal fee for an inactive license shall be one hundred fifty dollars ($150). (e) The delinquency fee is an amount equal to 50 percent of the renewal fee, if the license is renewed more than 30 days after its expiration. (f) The registration fee for a home improvement salesperson shall be fifty dollars ($50). (g) The renewal fee for a home improvement salesperson registration shall be seventy-five dollars ($75). (h) The application fee for an asbestos certification examination shall be fifty dollars ($50). (i) The application fee for a hazardous substance removal or remedial action certification examination shall be fifty dollars ($50). SEC. 3.9. Section 7141 of the Business and Professions Code is amended to read: 7141. Except as otherwise provided in this chapter, a license may be renewed at any time within three years after its expiration on filing of application for renewal on a form prescribed by the registrar, and payment of the appropriate renewal fee. If the license is renewed after the expiration date, the licensee shall also pay the delinquency fee prescribed by this chapter. Renewal under this section shall be effective on the date on which an acceptable renewal application is filed and the delinquency fee is paid pursuant to Section 7137 and the licensee shall be considered as unlicensed during the time between the expiration date and the date the renewal becomes effective. If so renewed, the license shall continue in effect through the date provided in Section 7140 which next occurs after the effective date of the renewal, when it shall expire if it is not again renewed. If a license is not renewed within three years, the licensee shall make application for a license pursuant to Section 7066. SEC. 4. Section 7159 of the Business and Professions Code is amended to read: 7159. This section applies only to home improvement contracts, as defined in Section 7151.2, between a contractor, whether a general contractor or a specialty contractor, who is licensed or subject to be licensed pursuant to this chapter with regard to the transaction and who contracts with an owner or tenant for work upon a residential building or structure, or upon land adjacent thereto, for proposed repairing, remodeling, altering, converting, modernizing, or adding to the residential building or structure or land adjacent thereto, and where the aggregate contract price specified in one or more improvement contracts, including all labor, services, and materials to be furnished by the contractor, exceeds five hundred dollars ($500). Every home improvement contract and every contract, the primary purpose of which is the construction of a swimming pool, is subject to this section. Every contract and any changes in the contract subject to this section shall be evidenced by a writing and shall be signed by all the parties to the contract. The writing shall contain all of the following: (a) The name, address, and license number of the contractor, and the name and registration number of any salesperson who solicited or negotiated the contract. (b) The approximate dates when the work will begin and on which all construction is to be completed. (c) A plan and scale drawing showing the shape, size, dimensions, and construction and equipment specifications for a swimming pool and for other home improvements, a description of the work to be done and description of the materials to be used and the equipment to be used or installed, and the agreed consideration for the work. (d) If the payment schedule contained in the contract provides for a downpayment to be paid to the contractor by the owner or the tenant before the commencement of work, the downpayment may not exceed two hundred dollars ($200) or 2 percent of the contract price for swimming pools, or one thousand dollars ($1,000) or 10 percent of the contract price for other home improvements, excluding finance charges, whichever is less. (e) A schedule of payments showing the amount of each payment as a sum in dollars and cents. In no event may the payment schedule provide for the contractor to receive, nor may the contractor actually receive, payments in excess of 100 percent of the value of the work performed on the project at any time, excluding finance charges, except that the contractor may receive an initial downpayment authorized by subdivision (d). With respect to a swimming pool contract, the final payment may be made at the completion of the final plastering phase of construction, provided that any installation or construction of equipment, decking, or fencing required by the contract is also completed. A failure by the contractor without lawful excuse to substantially commence work within 20 days of the approximate date specified in the contract when work will begin shall postpone the next succeeding payment to the contractor for that period of time equivalent to the time between when substantial commencement was to have occurred and when it did occur. The schedule of payments shall be stated in dollars and cents, and shall be specifically referenced to the amount of work or services to be performed and to any materials and equipment to be supplied. With respect to a contract that provides for a schedule of monthly payments to be made by the owner or tenant and for a schedule of payments to be disbursed to the contractor by a person or entity to whom the contractor intends to assign the right to receive the owner's or tenant's monthly payments, the payments referred to in this subdivision mean the payments to be disbursed by the assignee and not those payments to be made by the owner or tenant. (f) A statement that, upon satisfactory payment being made for any portion of the work performed, the contractor shall, prior to any further payment being made, furnish to the person contracting for the home improvement or swimming pool a full and unconditional release from any claim or mechanic's lien pursuant to Section 3114 of the Civil Code for that portion of the work for which payment has been made. (g) The requirements set forth in subdivisions (d), (e), and (f) do not apply when the contract provides for the contractor to furnish a performance and payment bond, lien and completion bond, bond equivalent, or joint control approved by the registrar covering full performance and completion of the contract and the bonds or joint control is or are furnished by the contractor, or when the parties agree for full payment to be made upon or for a schedule of payments to commence after satisfactory completion of the project. The contract shall contain, in close proximity to the signatures of the owner and contractor, a notice in at least 10-point type stating that the owner or tenant has the right to require the contractor to have a performance and payment bond. (h) No extra or change-order work may be required to be performed without prior written authorization of the person contracting for the construction of the home improvement or swimming pool. No change-order is enforceable against the person contracting for home improvement work or swimming pool construction unless it clearly sets forth the scope of work encompassed by the change-order and the price to be charged for the changes. Any change-order forms for changes or extra work shall be incorporated in, and become a part of, the contract. Failure to comply with the requirements of this subdivision does not preclude the recovery of compensation for work performed based upon quasi-contract, quantum meruit, restitution, or other similar legal or equitable remedies designed to prevent unjust enrichment. (i) If the contract provides for a payment of a salesperson's commission out of the contract price, that payment shall be made on a pro rata basis in proportion to the schedule of payments made to the contractor by the disbursing party in accordance with subdivision (e). (j) The language of the notice required pursuant to Section 7018.5. (k) What constitutes substantial commencement of work pursuant to the contract. (l) A notice that failure by the contractor without lawful excuse to substantially commence work within 20 days from the approximate date specified in the contract when work will begin is a violation of the Contractors' State License Law. (m) If the contract provides for a contractor to furnish joint control, the contractor shall not have any financial or other interest in the joint control. A failure by the contractor without lawful excuse to substantially commence work within 20 days from the approximate date specified in the contract when work will begin is a violation of this section. This section does not prohibit the parties to a home improvement contract from agreeing to a contract or account subject to Chapter 1 (commencing with Section 1801) of Title 2 of Part 4 of Division 3 of the Civil Code. The writing may also contain other matters agreed to by the parties to the contract. The writing shall be legible and shall be in a form that clearly describes any other document that is to be incorporated into the contract. Before any work is done, the owner shall be furnished a copy of the written agreement, signed by the contractor. For purposes of this section, the board shall, by regulation, determine what constitutes "without lawful excuse." The provisions of this section are not exclusive and do not relieve the contractor or any contract subject to it from compliance with all other applicable provisions of law. A violation of this section by a licensee, or a person subject to be licensed, under this chapter, or by his or her agent or salesperson, is a misdemeanor punishable by a fine of not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000), or by imprisonment in the county jail not exceeding one year, or by both that fine and imprisonment. (n) Any person who violates this section as part of a plan or scheme to defraud an owner of a residential or nonresidential structure, including a mobilehome or manufactured home, in connection with the offer or performance of repairs to the structure for damage caused by a natural disaster, shall be ordered by the court to make full restitution to the victim based on the person's ability to pay, as defined in subdivision (e) of Section 1203.1b of the Penal Code. In addition to full restitution, and imprisonment authorized by this section, the court may impose a fine of not less than five hundred dollars ($500) nor more than twenty-five thousand dollars ($25,000), based upon the defendant's ability to pay. This subdivision applies to natural disasters for which a state of emergency is proclaimed by the Governor pursuant to Section 8625 of the Government Code or for which an emergency or major disaster is declared by the President of the United States. (o) (1) An indictment or information against a person who is not licensed, but who is required to be licensed under this chapter, shall be brought, or a criminal complaint filed, for a violation of this section within four years from the date the buyer signs the contract. (2) An indictment or information against a person who is licensed under this chapter shall be brought, or a criminal complaint filed, for a violation of this section within one year from the date the buyer signs the contract. (3) The limitations on actions in this subdivision shall not apply to any administrative action filed against a licensed contractor. SEC. 4.1. Section 8698 of the Business and Professions Code is amended to read: 8698. The director of the Department of Pesticide Regulation shall be designated by the board as its agent for the purposes of carrying out Section 8698.1. The Los Angeles County Agricultural Commissioner or the Orange County Agricultural Commissioner, or both, may contract with the director to perform increased structural fumigation, inspection, training, and enforcement activities. These activities shall be funded by the moneys collected pursuant to this chapter. SEC. 4.2. Section 8698.1 of the Business and Professions Code is amended to read: 8698.1. (a) If the county has contracted pursuant to Section 8698, any person who performs a structural fumigation in Los Angeles County or Orange County shall pay to the county agricultural commissioner a fee of five dollars ($5) for each treatment conducted at a specific building or structure. (b) The fees shall be submitted by the 10th day of the month following the month in which the treatment was performed. The fees shall be accompanied by a copy of a monthly pesticide use report showing the addresses, including the department number if applicable, of all structural fumigations. The report shall be in a form required by the director, identify the name and address of the person or company performing the fumigation, and include any other information requested by the director. SEC. 4.3. Section 8698.5 of the Business and Professions Code is amended to read: 8698.5. Any funds collected pursuant to this chapter shall be paid to the county and used for the sole purposes of funding enforcement and training activities directly related to the structural fumigation project created pursuant to Section 8698. SEC. 4.4. Section 8698.6 of the Business and Professions Code is amended to read: 8698.6. This chapter shall remain in effect only until July 1, 2003, and as of that date is repealed, unless a later enacted statute, which is chaptered before July 1, 2003, deletes or extends that date. SEC. 5. Section 3260.1 of the Civil Code is amended to read: 3260.1. (a) This section is applicable with respect to all contracts entered into on or after January 1, 1992, relating to the construction of any private work of improvement. (b) Except as otherwise agreed in writing, the owner shall pay to the contractor, within 30 days following receipt of a demand for payment in accordance with the contract, any progress payment due thereunder as to which there is no good faith dispute between the parties. In the event of a dispute between the owner and the contractor, the owner may withhold from the progress payment an amount not to exceed 150 percent of the disputed amount. If any amount is wrongfully withheld in violation of this subdivision, the contractor shall be entitled to the penalty specified in subdivision (g) of Section 3260. (c) Nothing in this section shall be deemed to supersede any requirement of Section 3260 respecting the withholding of retention proceeds. SEC. 6. Section 116.220 of the Code of Civil Procedure is amended to read: 116.220. (a) The small claims court shall have jurisdiction in the following actions: (1) Except as provided in subdivisions (c), (e), and (f), for recovery of money, if the amount of the demand does not exceed five thousand dollars ($5,000). (2) Except as provided in subdivisions (c), (e), and (f), to enforce payment of delinquent unsecured personal property taxes in an amount not to exceed five thousand dollars ($5,000), if the legality of the tax is not contested by the defendant. (3) To issue the writ of possession authorized by Sections 1861.5 and 1861.10 of the Civil Code if the amount of the demand does not exceed five thousand dollars ($5,000). (4) To confirm, correct, or vacate a fee arbitration award not exceeding five thousand dollars ($5,000) between an attorney and client that is binding or has become binding, or to conduct a hearing de novo between an attorney and client after nonbinding arbitration of a fee dispute involving no more than five thousand dollars ($5,000) in controversy, pursuant to Article 13 (commencing with Section 6200) of Chapter 4 of Division 3 of the Business and Professions Code. (b) In any action seeking relief authorized by subdivision (a), the court may grant equitable relief in the form of rescission, restitution, reformation, and specific performance, in lieu of, or in addition to, money damages. The court may issue a conditional judgment. The court shall retain jurisdiction until full payment and performance of any judgment or order. (c) Notwithstanding subdivision (a), the small claims court shall have jurisdiction over a defendant guarantor who is required to respond based upon the default, actions, or omissions of another, only if the demand does not exceed (1) two thousand five hundred dollars ($2,500), or (2) on and after January 1, 2000, four thousand dollars ($4,000), if the defendant guarantor charges a fee for its guarantor or surety services or the defendant guarantor is the Registrar of the Contractors' State License Board. (d) In any case in which the lack of jurisdiction is due solely to an excess in the amount of the demand, the excess may be waived, but any waiver shall not become operative until judgment. (e) Notwithstanding subdivision (a), in any action filed by a plaintiff incarcerated in a Department of Corrections facility or a Youth Authority facility, the small claims court shall have jurisdiction over a defendant only if the plaintiff has alleged in the complaint that he or she has exhausted his or her administrative remedies against that department, including compliance with Sections 905.2 and 905.4 of the Government Code. The final administrative adjudication or determination of the plaintiff's administrative claim by the department may be attached to the complaint at the time of filing in lieu of that allegation. (f) In any action governed by subdivision (e), if the plaintiff fails to provide proof of compliance with the requirements of subdivision (e) at the time of trial, the judicial officer shall, at his or her discretion, either dismiss the action or continue the action to give the plaintiff an opportunity to provide such proof. (g) For purposes of this section, "department" includes an employee of a department against whom a claim has been filed under this chapter arising out of his or her duties as an employee of that department. SEC. 7. Section 19825 of the Health and Safety Code is amended to read: 19825. (a) Every city or county that requires the issuance of a permit as a condition precedent to the construction, alteration, improvement, demolition, or repair of any building or structure shall, in addition to any other requirements, require the following declarations in substantially the following form upon the issuance of any building permit: BUILDING PROJECT IDENTIFICATION Applicant's Mailing Address ________________________ ________________________ Address of Building ________________________ ________________________ Owner's Name if Known ________________________ Telephone No. ________________________ Contractor's Name ________________________ Contractor's Mailing Address ________________________ ________________________ Lic. No. _______________ Architect or Engineer ________________________ Architect's or Engineer's Address ________________________ ________________________ Lic. No. _______________ In addition the city or county may require that there be included, in the building project identification portion of a building permit, the following: Assessor's Parcel Number* ________________________ Permit Date ________________________ Permit Number ________________________ Description of Work ________________________ Building Permit Valuation ________________________ *To be entered by issuing agency. LICENSED CONTRACTOR'S DECLARATION I hereby affirm under penalty of perjury that I am licensed under provisions of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, and my license is in full force and effect. License Class ___________________ Lic. No. __________________ Date ____________________________ Contractor ________________ OWNER-BUILDER DECLARATION I hereby affirm under penalty of perjury that I am exempt from the Contractors' State License Law for the following reason (Sec. 7031.5, Business and Professions Code: Any city or county that requires a permit to construct, alter, improve, demolish, or repair any structure, prior to its issuance, also requires the applicant for the permit to file a signed statement that he or she is licensed pursuant to the provisions of the Contractors' State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code) or that he or she is exempt therefrom and the basis for the alleged exemption. Any violation of Section 7031.5 by any applicant for a permit subjects the applicant to a civil penalty of not more than five hundred dollars ($500).): (_) I, as owner of the property, or my employees with wages as their sole compensation, will do the work, and the structure is not intended or offered for sale (Sec. 7044, Business and Professions Code: The Contractors' State License Law does not apply to an owner of property who builds or improves thereon, and who does the work himself or herself or through his or her own employees, provided that the improvements are not intended or offered for sale. If, however, the building or improvement is sold within one year of completion, the owner-builder will have the burden of proving that he or she did not build or improve for the purpose of sale.). (_) I, as owner of the property, am exclusively contracting with licensed contractors to construct the project (Sec. 7044, Business and Professions Code: The Contractors' State License Law does not apply to an owner of property who builds or improves thereon, and who contracts for the projects with a contractor(s) licensed pursuant to the Contractors' State License Law.). (_) I am exempt under Sec. ____, B.& P.C. for this reason ________________________________________________________ Date ___________________ Owner _____________________________ WORKERS' COMPENSATION DECLARATION I hereby affirm under penalty of perjury one of the following declarations: ___ I have and will maintain a certificate of consent to self-insure for workers' compensation, as provided for by Section 3700 of the Labor Code, for the performance of the work for which this permit is issued. ___ I have and will maintain workers' compensation insurance, as required by Section 3700 of the Labor Code, for the performance of the work for which this permit is issued. My workers' compensation insurance carrier and policy number are: Carrier _____________________________________________________ Policy Number _____________________________________________________ (This section need not be completed if the permit is for one hundred dollars ($100) or less). ___ I certify that, in the performance of the work for which this permit is issued, I shall not employ any person in any manner so as to become subject to the workers' compensation laws of California, and agree that, if I should become subject to the workers' compensation provisions of Section 3700 of the Labor Code, I shall forthwith comply with those provisions. Date: __________ Applicant: ____________________________________________ WARNING: FAILURE TO SECURE WORKERS' COMPENSATION COVERAGE IS UNLAWFUL, AND SHALL SUBJECT AN EMPLOYER TO CRIMINAL PENALTIES AND CIVIL FINES UP TO ONE HUNDRED THOUSAND DOLLARS ($100,000), IN ADDITION TO THE COST OF COMPENSATION, DAMAGES AS PROVIDED FOR IN SECTION 3706 OF THE LABOR CODE, INTEREST, AND ATTORNEY'S FEES. CONSTRUCTION LENDING AGENCY I hereby affirm under penalty of perjury that there is a construction lending agency for the performance of the work for which this permit is issued (Sec. 3097, Civ. C.). Lender's Name __________________________________________________ Lender's Address __________________________________________________ I certify that I have read this application and state that the above information is correct. I agree to comply with all city and county ordinances and state laws relating to building construction, and hereby authorize representatives of this county to enter upon the above-mentioned property for inspection purposes. _____________________________________ __________________________ Signature of Applicant or Agent Date (b) The Contractors' State License Board shall provide semiannually, upon the request of city, county, and city and county building departments, a list of all contractors that did not secure payment of compensation in accordance with Article 1 (commencing with Section 3700) of Chapter 4 of Part 1 of Division 4 of the Labor Code during any period for which workers were employed during the preceeding six months. SEC. 8. Section 3800 of the Labor Code is amended to read: 3800. (a) Every county or city which requires the issuance of a permit as a condition precedent to the construction, alteration, improvement, demolition, or repair of any building or structure shall require that each applicant for the permit sign a declaration under penalty of perjury verifying workers' compensation coverage or exemption from coverage, as required by Section 19825 of the Health and Safety Code. (b) At the time of permit issuance, contractors shall show their valid workers' compensation insurance certificate, or the city or county may verify the workers' compensation coverage by electronic means.