BILL NUMBER: AB 1794 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 9, 2012
INTRODUCED BY Assembly Member Williams
FEBRUARY 21, 2012
An act to amend Section 7125.4 of the Business and Professions
Code, and to amend Section 11665 of the Insurance Code, relating to
contractors.
LEGISLATIVE COUNSEL'S DIGEST
AB 1794, as amended, Williams. Contractors: worker's compensation
insurance reporting.
(1) Existing law, the Contractor's State License Law, provides for
the licensing and regulation of contractors.
Existing law makes it a misdemeanor for a licensed contractor or a
qualifier for a license to file a worker's compensation insurance
exemption certificate that is false.
This bill would also make it a misdemeanor and a cause for
disciplinary action for a licensed contractor or a
qualifier for a license to fail to notify his or her worker'
s compensation insurance carrier within 15 20
days of hiring an employee.
(2) Existing law, until January 1, 2013, requires an insurer who
issues a workers' compensation insurance policy to a roofing
contractor holding a C-39 license from the Contractors State License
Board to perform an annual payroll audit for the contractor.
This bill would also require an insurer who issues a workers'
compensation insurance policy to any contractor to require that the
contractor report the hiring of new workers within 15
20 days and would extend these provisions until
January 1, 2015.
Because this bill would create a new crime, it would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7125.4 of the Business and Professions Code is
amended to read:
7125.4. (a) The filing of the exemption certificate prescribed by
this article that is false, or the employment of a person subject to
coverage under the workers' compensation laws after the filing of an
exemption certificate without first filing a Certificate of Workers'
Compensation Insurance or Certification of Self-Insurance in
accordance with the provisions of this article, or the employment of
a person subject to coverage under the workers' compensation laws
without maintaining coverage for that person, constitutes cause for
disciplinary action.
(b) Any qualifier for a license who, under Section 7068.1, is
responsible for ensuring that a licensee complies with the provisions
of this chapter, is also guilty of a misdemeanor for committing or
failing to prevent the commission of any of the acts that are cause
for disciplinary action under this section.
(c) A licensee, or a qualifier for a license who, under Section
7068.1 is responsible for ensuring that a licensee complies with the
provisions of this chapter is also guilty of a misdemeanor for
failing to notify his or her worker's compensation insurance carrier
within 15 days of hiring an employee.
(c) It shall be a misdemeanor and a cause for disciplinary action
for a licensee to fail to notify his or her workers' compensation
insurance carrier within 20 days of hiring an employee. The remedy
provided for by this section shall be in addition to, and not limited
upon, the authority referenced in Sections 11760 and 11880 of the
Insurance Code for underreporting employees in order to lower workers'
compensation insurance premiums.
SEC. 2. Section 11665 of the Insurance Code is amended to read:
11665. (a) An insurer who issues a workers' compensation
insurance policy to a contractor holding a license from the
Contractors State License Board shall require the reporting of
workers within 15 20 days of hire and
perform an annual payroll audit for the contractor. The insurer may
impose a surcharge on each policyholder audited under this
subdivision in an amount necessary to recoup the reasonable costs of
conducting the annual payroll audits.
(b) The commissioner shall direct the rating organization
designated as his or her statistical agent to compile pertinent
statistical data on those holding C-39 licenses, as reported by the
appropriate state entity, on an annual basis and provide a report to
him or her each year. The data shall track the total annual payroll
and loss data reported on those holding C-39 licenses in accordance
with the standard workers' compensation insurance classifications
applicable to roofing operations. The report shall also be provided
to the Legislature, in compliance with Section 9795 of the Government
Code. Reports required under this section for the 2008 and 2009
calendar years shall be filed by March 1, 2012.
(c) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.