BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 2219
                                                                Page  1
        CONCURRENCE IN SENATE AMENDMENTS
        AB 2219 (Knight)
        As Amended  August 6, 2012
        Majority vote
         
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        |ASSEMBLY:  |76-0 |(May 29, 2012)  |SENATE: |37-0 |(August 23,    |
        |           |     |                |        |     |2012)          |
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         Original Committee Reference:    B.,P. & C.P.  

         SUMMARY  :  Eliminates the sunset date on existing law requiring 
        roofing contractors who hold a C-39 classification to maintain 
        workers' compensation insurance, whether or not they have employees, 
        and makes additional changes to law regarding C-39 contractors.  

         The Senate amendments  require the certificate of workers' 
        compensation insurance or certification of self-insurance to be in 
        the applicant's or licensee's business name.

         EXISTING LAW  :

        1)Licenses and regulates contractors, including C-39 roofing 
          classification contractors by the Contractors State License Board 
          (CSLB) within the Department of Consumer Affairs.

        2)Requires every licensed contractor to have on file at all times 
          with the CSLB a current and valid certificate of workers' 
          compensation insurance or certification of self-insurance, as 
          specified.  This requirement does not apply to a licensee who does 
          not hold a C-39 license and who files a statement certifying that 
          he or she has no employees and is not required to provide for 
          workers' compensation insurance coverage. 

        3)Requires CSLB's Registrar to remove the C-39 classification from 
          any license that, on January 1, 2011, is active and includes a 
          C-39 classification in addition to any other classification unless 
          a valid certification of workers' compensation insurance or 
          certification of self-insurance is received by the Registrar.  
          Requires automatic suspension of a license for any licensee whose 
          license, after January 1, 2011, is active and has had the C-39 
          classification removed and who is found to have employees and to 
          lack required workers' compensation coverage.  These provisions 
          sunset January 1, 2013. 









                                                                AB 2219
                                                                Page  2
        4)Requires a workers' compensation insurer who issues a policy to a 
          contractor with a C-39 classification to perform an annual payroll 
          audit for the contractor, and allows the insurer to place a 
          surcharge on the policy holder to recoup reasonable costs of the 
          audit.  This provision sunsets January 1, 2013.

        5)Requires the Insurance Commissioner to annually compile 
          statistical data on contractors holding C-39 licenses, as 
          specified.  This provision sunsets January 1, 2013.

         AS PASSED BY THE ASSEMBLY  , this bill was substantially similar to 
        the version approved by the Senate.

         FISCAL EFFECT  :  According to the Senate Appropriations Committee, 
        pursuant to Senate Rule 28.8, negligible state costs.

         Analysis Prepared by  :    Angela Mapp / B.,P. & C.P. / (916) 
        319-3301FN: 0004575