BILL NUMBER: AB 878 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Bill Berryhill
( Principal coauthor: Assembly Member
Monning )
FEBRUARY 17, 2011
An act to amend Section 16200 7125
of the Business and Professions Code, relating to local
government contractors .
LEGISLATIVE COUNSEL'S DIGEST
AB 878, as amended, Bill Berryhill. State licensing fees.
Contractors: workers' compensation insurance.
Existing law, the Contractors' State License Law, provides for the
licensing and regulation of contractors by the Contractors' State
License Board within the Department of Consumer Affairs. Existing law
authorizes the board to appoint a registrar of contractors and
requires a workers' compensation insurer to report to the registrar
specified information regarding a licensee's workers' compensation
policy.
This bill would, additionally, require a workers' compensation
insurer to report to the registrar a licensee whose workers'
compensation insurance policy is cancelled due to specified
circumstances, including, but not limited to, failure to pay the
policy premium.
Existing law provides for the enforcement and collection of
certain licensing fees, taxes, and charges levied by the state, and
defines various terms for these purposes.
This bill would make technical, nonsubstantive changes to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7125 of the Business
and Professions Code , as amended by Section 1 of Chapter
423 of the Statutes of 2010, is amended to read:
7125. (a) Except as provided in subdivision (b), the board shall
require as a condition precedent to the issuance, reinstatement,
reactivation, renewal, or continued maintenance of a license, that
the applicant or licensee have on file at all times a current and
valid Certificate of Workers' Compensation Insurance or Certification
of Self-Insurance. A Certificate of Workers' Compensation Insurance
shall be issued and filed, electronically or otherwise, by one or
more insurers duly licensed to write workers' compensation insurance
in this state. A Certification of Self-Insurance shall be issued and
filed by the Director of Industrial Relations. If reciprocity
conditions exist, as defined in Section 3600.5 of the Labor Code, the
registrar shall require the information deemed necessary to ensure
compliance with this section.
(b) This section does not apply to an applicant or licensee who
meets both of the following conditions:
(1) Has no employees provided that he or she files a statement
with the board on a form prescribed by the registrar prior to the
issuance, reinstatement, reactivation, or continued maintenance of a
license, certifying that he or she does not employ any person in any
manner so as to become subject to the workers' compensation laws of
California or is not otherwise required to provide for workers'
compensation insurance coverage under California law.
(2) Does not hold a C-39 license, as defined in Section 832.39 of
Title 16 of the California Code of Regulations.
(c) No Certificate of Workers' Compensation Insurance,
Certification of Self-Insurance, or exemption-certificate is required
of a holder of a license that has been inactivated on the official
records of the board during the period the license is inactive.
(d) The insurer, including the State Compensation Insurance Fund,
shall report to the registrar the following information for any
policy required under this section: name, license number, policy
number, dates that coverage is scheduled to commence and lapse, and
cancellation date if applicable. A workers' compensation insurer
shall also report to the registrar a licensee whose workers'
compensation insurance policy is canceled for any of the following
reasons:
(1) Failure to make a workers' compensation premium payment when
due.
(2) Failure to report payroll or submit to an insurer audit of
payroll.
(3) Material misrepresentation by a policyholder or its agent.
(4) Failure to cooperate with the insurer in the insurer's
investigation of a claim.
(e) (1) For any license that, on January 1, 2011, is active and
includes a C-39 classification in addition to any other
classification, the registrar shall, in lieu of the automatic license
suspension otherwise required under this article, remove the C-39
classification from the license unless a valid Certificate of Workers'
Compensation Insurance or Certification of Self-Insurance is
received by the registrar.
(2) For any licensee whose license, after January 1, 2011, is
active and has had the C-39 classification removed as provided in
paragraph (1), and who is found by the registrar to have employees
and to lack a valid Certificate of Workers' Compensation Insurance or
Certification of Self-Insurance, that license shall be automatically
suspended as required under this article.
(f) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
SEC. 2. Section 7125 of the Business
and Professions Code , as amended by Section 2 of Chapter
423 of the Statutes of 2010, is amended to read:
7125. (a) The board shall require as a condition precedent to the
issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee have on file
at all times a current and valid Certificate of Workers'
Compensation Insurance or Certification of Self-Insurance. A
Certificate of Workers' Compensation Insurance shall be issued and
filed, electronically or otherwise, by one or more insurers duly
licensed to write workers' compensation insurance in this state. A
Certification of Self-Insurance shall be issued and filed by the
Director of Industrial Relations. If reciprocity conditions exist, as
defined in Section 3600.5 of the Labor Code, the registrar shall
require the information deemed necessary to ensure compliance with
this section.
(b) This section does not apply to an applicant or licensee who
has no employees provided that he or she files a statement with the
board on a form prescribed by the registrar prior to the issuance,
reinstatement, reactivation, or continued maintenance of a license,
certifying that he or she does not employ any person in any manner so
as to become subject to the workers' compensation laws of California
or is not otherwise required to provide for workers' compensation
insurance coverage under California law.
(c) No Certificate of Workers' Compensation Insurance,
Certification of Self-Insurance, or exemption-certificate is required
of a holder of a license that has been inactivated on the official
records of the board during the period the license is inactive.
(d) The insurer, including the State Compensation Insurance Fund,
shall report to the registrar the following information for any
policy required under this section: name, license number, policy
number, dates that coverage is scheduled to commence and lapse, and
cancellation date, if applicable. A workers' compensation
insurer shall also report to the registrar a licensee whose workers'
compensation insurance policy is canceled for any of the following
reasons:
(1) Failure to make a workers' compensation premium payment when
due.
(2) Failure to report payroll or submit to an insurer audit of
payroll.
(3) Material misrepresentation by a policyholder or its agent.
(4) Failure to cooperate with the insurer in the insurer's
investigation of a claim.
(e) This section shall become operative on January 1, 2013.
SECTION 1. Section 16200 of the Business and
Professions Code is amended to read:
16200. Unless the context otherwise requires, the definitions in
this article govern the construction of this chapter.