Amended IN Senate April 01, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 291Introduced by Senator GraysonFebruary 06, 2025 An act to amend Sections 7017.3, 7125, 7125.4, and 7125.5 of the Business and Professions Code, relating to contractors.LEGISLATIVE COUNSEL'S DIGESTSB 291, as amended, Grayson. Contractors: workers compensation insurance.Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law authorizes the board to appoint committees and make rules and regulations, as specified.Existing law generally requires, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, a licensed contractor or applicant for licensure to have on file at all times with the board a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name, as specified. Existing law generally makes a violation of these provisions a misdemeanor. Existing law exempts from this requirement an applicant or licensee who has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified, and who does not hold a specified license issued by the board, including a C-8 license, as defined. Existing law repeals these provisions on January 1, 2028.This bill would instead repeal the above-described provisions on January 1, 2027.Existing law, commencing January 1, 2028, removes the above-specified exemptions, and instead exempts from the above-described filing requirement an applicant or licensee organized as a joint venture that has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified.This bill would, commencing January 1, 2027, instead exempt from the above-described filing requirement an applicant or licensee organized as a joint venture in which all individual licensees that formed the joint venture comply with the above-described filing requirement, and an applicant or licensee that has no employees, does not undertake construction projects valued over a specified amount, amount, as prescribed, and has not been cited or otherwise disciplined by the board, as specified, provided that they specified. The bill would require an applicant or licensee exempt pursuant to these provisions to file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified. The bill would specify that the above-described exemptions do not apply to any applicant or licensee that has an active C-39 classification, as specified. The bill would require the board to periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount described above to account for inflation, as specified.Existing law makes the filing of an exemption certificate for workers compensation insurance on file with the board 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 specified provisions or without maintaining coverage for that person, cause for disciplinary action.This bill would include as disciplinary action, among other penalties, a minimum civil penalty of $10,000 per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage. The bill would prohibit the board from renewing or restating a license subject to the above-described disciplinary action until the applicant or licensee provides the board a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.Existing law requires all active licensees with an exemption for workers compensation insurance on file with the board, at the time of renewal, to either recertify the licensees exemption by completing a recertification statement on the license renewal form, as provided by the board, or provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.This bill would require the board, on or before January 1, 2027, to develop an open book examination, as specified, and update the license renewal form to include the open book examination and a requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the above-described penalties. The bill would also require specified license applicants exempt from the above-described filing requirement to complete and submit to the board the open book examination before the issuance of a license. The bill would instead require the licensee to recertify the licensees exemption by completing the applicable license renewal form, as provided by the board. By requiring a licensee who completes a license renewal form to provide a statement under penalty of perjury, this bill would expand the crime of perjury and impose a state-mandated local program.Existing law requires the board to report annually to the Legislature, no later than October 1 of each year, certain statistical information for the prior fiscal year, including, among other things, the number of disciplinary actions taken by the board categorized by type, as specified, and by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.This bill would require that the report specify the number of disciplinary actions for violations of specified provisions relating to the filing of a workers compensation insurance exemption certificate or a certification of self-insurance.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 7017.3 of the Business and Professions Code is amended to read:7017.3. The Contractors State License Board shall report annually to the Legislature, not later than October 1 of each year, the following statistical information for the prior fiscal year. The following data shall be reported on complaints filed with the board against licensed contractors, registered home improvement salespersons, and unlicensed persons acting as licensees or registrants:(a) The number of complaints received by the board categorized by source, such as public, trade, profession, government agency, or board-initiated, and by type of complaint, such as licensee or nonlicensee.(b) The number of complaints closed prior to referral for field investigation, categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(c) The number of complaints referred for field investigation categorized by the type of complaint, such as licensee or nonlicensee.(d) The number of complaints closed after referral for field investigation categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(e) For the boards Intake/Mediation Center and the boards Investigation Center closures, respectively, the total number of complaints closed prior to a field investigation per consumer services representative, and the total number of complaints closed after referral for a field investigation per investigator and special investigator. Additionally, the board shall report the total number of complaints closed by other board staff during the year.(f) The number of complaints pending at the end of the fiscal year grouped in 90-day increments, and the percentage of total complaints pending, represented by the number of complaints in each grouping.(g) The number of citations issued to licensees categorized by the type of citation such as order of correction only or order of correction and fine, and the number of citations issued to licensees that were vacated or withdrawn.(h) The number of citations issued to nonlicensees and the number of these citations that were vacated or withdrawn.(i) The number of complaints referred to a local prosecutor for criminal investigation or prosecution, the number of complaints referred to the Attorney General for the filing of an accusation, and the number of complaints referred to both a local prosecutor and the Attorney General, categorized by type of complaint, such as licensee and nonlicensee.(j) Actions taken by the board, including, but not limited to, the following:(1) (A) The number of disciplinary actions categorized by type, such as revocations or suspensions, categorized by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.(B) The number of disciplinary actions described in subparagraph (A) shall specify the number of disciplinary actions for violations of Section 7125.4.(2) The number of accusations dismissed or withdrawn.(k) For subdivisions (g) and (j), the number of cases containing violations of Sections 7121 and 7121.5, and paragraph (5) of subdivision (a) of Section 7159.5, categorized by section.(l) The number of interim suspension orders sought, the number of interim suspension orders granted, the number of temporary restraining orders sought, and the number of temporary restraining orders granted.(m) The amount of cost recovery ordered and the amount collected.(n) Case aging data, including data for each major stage of the enforcement process, including the following:(1) The average number of days from the filing of a complaint to its closure by the boards Intake/Mediation Center prior to the referral for an investigation categorized by the type of complaint, such as licensee or nonlicensee.(2) The average number of days from the referral of a complaint for an investigation to its closure by the Investigation Center categorized by the type of complaint, such as licensee or nonlicensee.(3) The average number of days from the filing of a complaint to the referral of the completed investigation to the Attorney General.(4) The average number of days from the referral of a completed investigation to the Attorney General to the filing of an accusation by the Attorney General.(5) The average number of days from the filing of an accusation to the first hearing date or date of a stipulated settlement.(6) The average number of days from the receipt of the administrative law judges proposed decision to the registrars final decision.SECTION 1.SEC. 2. Section 7125 of the Business and Professions Code, as amended by Section 12 of Chapter 485 of the Statutes of 2024, 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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided 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 the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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-8 license, as defined in Section 832.08 of Title 16 of the California Code of Regulations, a C-20 license, as defined in Section 832.20 of Title 16 of the California Code of Regulations, a C-22 license, as defined in Section 832.22 of Title 16 of the California Code of Regulations, a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, or a D-49 license, a subcategory of a C-61 license, as defined in Section 832.61 of Title 16 of the California Code of Regulations.(c) This section does not apply to an applicant or licensee organized as a joint venture pursuant to Section 7029 that has no employees, provided that the applicant or licensee files the statement prescribed by subparagraph (1) of subdivision (b).(d) A Certificate of Workers Compensation Insurance, Certification of Self-Insurance, or exemption certificate is not 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.(e) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) No reimbursement has been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(f) (1) For any license that, on January 1, 2013, 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, 2013, 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.(g) (1) For any licensee whose license, after July 1, 2023, is active and includes a C-8, C-20, C-22, or D-49 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-8, C-20, C-22, or D-49 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 July 1, 2023, is active and has had the C-8, C-20, C-22, or D-49 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.(h) The information reported pursuant to paragraph (2) of subdivision (e) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2027, deletes or extends that date.SEC. 2.SEC. 3. Section 7125 of the Business and Professions Code, as amended by Section 13 of Chapter 485 of the Statutes of 2024, 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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.(b) (1) This section does not apply to either of the following:(A) An applicant or licensee organized as a joint venture pursuant to Section 7029 in which all individual licensees that formed the joint venture comply with the filing requirement of this section.(B) (i) An applicant or licensee that has no employees, does not undertake construction projects valued over two thousand dollars ($2,000) for labor and materials, and has not been cited or otherwise disciplined by the board previously for failure to maintain a Certificate of Workers Compensation Insurance or Certification of Self-Insurance, provided that the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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. Self-Insurance. The two-thousand-dollar ($2,000) valuation described in this clause shall apply to a single work or operation and shall not be circumvented by division of contracts of amounts less than two thousand dollars ($2,000) for purpose of evasion of this paragraph or otherwise.(ii) An applicant described in clause (i) shall complete and submit to the board the open book examination described in section 7125.5 before the issuance of a license.(2) Paragraph (1) does not apply to any applicant or licensee that has an active C-39 classification, either solely or in addition to any other classification, issued by the board.(3) An applicant or licensee described in paragraph (1) shall file a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee does not employ any person in any manner so as to become subject to the workers compensation laws or is not otherwise required to provide for workers compensation insurance coverage under state law.(c) A Certificate of Workers Compensation Insurance or Certification of Self-Insurance is not 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) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) Reimbursement has not been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(e) The information reported pursuant to paragraph (2) of subdivision (d) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(f)(1)The board shall periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount for labor and materials described in subdivision (b) to account for inflation.(2)Any construction project value amount for labor and materials amount updated pursuant to paragraph (1) shall supersede the amount described in subdivision (b). (g)(f) This section shall become operative on January 1, 2027.SEC. 3.SEC. 4. 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, including, but not limited to, the following civil penalties:(1) A minimum civil penalty of ten thousand dollars ($10,000) per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage.(2) A minimum civil penalty of twenty thousand dollars ($20,000) per violation for any partnership, corporation, limited liability company, or tribal business licensee found to have employed workers without maintaining workers compensation coverage.(3) Additional civil penalties for any subsequent violations, not to exceed a total of thirty thousand dollars ($30,000) per occurrence.(b) Any qualifier for a license who, under Section 7068.1, is responsible for assuring 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) The board shall not renew or reinstate a license in violation of this section until the applicant or licensee provides the board with a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.SEC. 4.SEC. 5. Section 7125.5 of the Business and Professions Code is amended to read:7125.5. (a) (1) At the time of renewal, all active licensees with an exemption for workers compensation insurance on file with the board, submitted pursuant to subdivision (b) of Section 7125, shall do either of the following:(A) Recertify the licensees exemption by completing the applicable license renewal form, as provided by the board.(B) Provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.(2) The board shall, on or before January 1, 2027, complete both of the following:(A) The board shall develop an open book examination that includes questions regarding workers compensation laws and regulations and requires the licensee to answer those questions correctly.(B) The board shall update the license renewal form to include both of the following:(i) The open book examination, as described in subparagraph (A).(ii) A requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the penalties described in Section 7125.4.(b) The license shall not be renewed unless a licensee with an exemption for workers compensation insurance on file with the board recertifies the exemption status or provides a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance in conjunction with the license renewal.(c) If the documentation required by subdivision (a) is not provided with the license renewal but is received within 30 days after notification by the board of the renewal rejection, the registrar shall grant a retroactive renewal pursuant to Section 7141.5 back to the date of the postmark of the otherwise acceptable renewal. A renewal that is still incomplete for any reason after 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.SEC. 5.SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
Amended IN Senate April 01, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 291Introduced by Senator GraysonFebruary 06, 2025 An act to amend Sections 7017.3, 7125, 7125.4, and 7125.5 of the Business and Professions Code, relating to contractors.LEGISLATIVE COUNSEL'S DIGESTSB 291, as amended, Grayson. Contractors: workers compensation insurance.Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law authorizes the board to appoint committees and make rules and regulations, as specified.Existing law generally requires, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, a licensed contractor or applicant for licensure to have on file at all times with the board a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name, as specified. Existing law generally makes a violation of these provisions a misdemeanor. Existing law exempts from this requirement an applicant or licensee who has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified, and who does not hold a specified license issued by the board, including a C-8 license, as defined. Existing law repeals these provisions on January 1, 2028.This bill would instead repeal the above-described provisions on January 1, 2027.Existing law, commencing January 1, 2028, removes the above-specified exemptions, and instead exempts from the above-described filing requirement an applicant or licensee organized as a joint venture that has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified.This bill would, commencing January 1, 2027, instead exempt from the above-described filing requirement an applicant or licensee organized as a joint venture in which all individual licensees that formed the joint venture comply with the above-described filing requirement, and an applicant or licensee that has no employees, does not undertake construction projects valued over a specified amount, amount, as prescribed, and has not been cited or otherwise disciplined by the board, as specified, provided that they specified. The bill would require an applicant or licensee exempt pursuant to these provisions to file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified. The bill would specify that the above-described exemptions do not apply to any applicant or licensee that has an active C-39 classification, as specified. The bill would require the board to periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount described above to account for inflation, as specified.Existing law makes the filing of an exemption certificate for workers compensation insurance on file with the board 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 specified provisions or without maintaining coverage for that person, cause for disciplinary action.This bill would include as disciplinary action, among other penalties, a minimum civil penalty of $10,000 per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage. The bill would prohibit the board from renewing or restating a license subject to the above-described disciplinary action until the applicant or licensee provides the board a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.Existing law requires all active licensees with an exemption for workers compensation insurance on file with the board, at the time of renewal, to either recertify the licensees exemption by completing a recertification statement on the license renewal form, as provided by the board, or provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.This bill would require the board, on or before January 1, 2027, to develop an open book examination, as specified, and update the license renewal form to include the open book examination and a requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the above-described penalties. The bill would also require specified license applicants exempt from the above-described filing requirement to complete and submit to the board the open book examination before the issuance of a license. The bill would instead require the licensee to recertify the licensees exemption by completing the applicable license renewal form, as provided by the board. By requiring a licensee who completes a license renewal form to provide a statement under penalty of perjury, this bill would expand the crime of perjury and impose a state-mandated local program.Existing law requires the board to report annually to the Legislature, no later than October 1 of each year, certain statistical information for the prior fiscal year, including, among other things, the number of disciplinary actions taken by the board categorized by type, as specified, and by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.This bill would require that the report specify the number of disciplinary actions for violations of specified provisions relating to the filing of a workers compensation insurance exemption certificate or a certification of self-insurance.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Senate April 01, 2025
Amended IN Senate April 01, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 291
Introduced by Senator GraysonFebruary 06, 2025
Introduced by Senator Grayson
February 06, 2025
An act to amend Sections 7017.3, 7125, 7125.4, and 7125.5 of the Business and Professions Code, relating to contractors.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 291, as amended, Grayson. Contractors: workers compensation insurance.
Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law authorizes the board to appoint committees and make rules and regulations, as specified.Existing law generally requires, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, a licensed contractor or applicant for licensure to have on file at all times with the board a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name, as specified. Existing law generally makes a violation of these provisions a misdemeanor. Existing law exempts from this requirement an applicant or licensee who has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified, and who does not hold a specified license issued by the board, including a C-8 license, as defined. Existing law repeals these provisions on January 1, 2028.This bill would instead repeal the above-described provisions on January 1, 2027.Existing law, commencing January 1, 2028, removes the above-specified exemptions, and instead exempts from the above-described filing requirement an applicant or licensee organized as a joint venture that has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified.This bill would, commencing January 1, 2027, instead exempt from the above-described filing requirement an applicant or licensee organized as a joint venture in which all individual licensees that formed the joint venture comply with the above-described filing requirement, and an applicant or licensee that has no employees, does not undertake construction projects valued over a specified amount, amount, as prescribed, and has not been cited or otherwise disciplined by the board, as specified, provided that they specified. The bill would require an applicant or licensee exempt pursuant to these provisions to file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified. The bill would specify that the above-described exemptions do not apply to any applicant or licensee that has an active C-39 classification, as specified. The bill would require the board to periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount described above to account for inflation, as specified.Existing law makes the filing of an exemption certificate for workers compensation insurance on file with the board 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 specified provisions or without maintaining coverage for that person, cause for disciplinary action.This bill would include as disciplinary action, among other penalties, a minimum civil penalty of $10,000 per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage. The bill would prohibit the board from renewing or restating a license subject to the above-described disciplinary action until the applicant or licensee provides the board a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.Existing law requires all active licensees with an exemption for workers compensation insurance on file with the board, at the time of renewal, to either recertify the licensees exemption by completing a recertification statement on the license renewal form, as provided by the board, or provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.This bill would require the board, on or before January 1, 2027, to develop an open book examination, as specified, and update the license renewal form to include the open book examination and a requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the above-described penalties. The bill would also require specified license applicants exempt from the above-described filing requirement to complete and submit to the board the open book examination before the issuance of a license. The bill would instead require the licensee to recertify the licensees exemption by completing the applicable license renewal form, as provided by the board. By requiring a licensee who completes a license renewal form to provide a statement under penalty of perjury, this bill would expand the crime of perjury and impose a state-mandated local program.Existing law requires the board to report annually to the Legislature, no later than October 1 of each year, certain statistical information for the prior fiscal year, including, among other things, the number of disciplinary actions taken by the board categorized by type, as specified, and by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.This bill would require that the report specify the number of disciplinary actions for violations of specified provisions relating to the filing of a workers compensation insurance exemption certificate or a certification of self-insurance.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.
Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law authorizes the board to appoint committees and make rules and regulations, as specified.
Existing law generally requires, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, a licensed contractor or applicant for licensure to have on file at all times with the board a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name, as specified. Existing law generally makes a violation of these provisions a misdemeanor. Existing law exempts from this requirement an applicant or licensee who has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified, and who does not hold a specified license issued by the board, including a C-8 license, as defined. Existing law repeals these provisions on January 1, 2028.
This bill would instead repeal the above-described provisions on January 1, 2027.
Existing law, commencing January 1, 2028, removes the above-specified exemptions, and instead exempts from the above-described filing requirement an applicant or licensee organized as a joint venture that has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified.
This bill would, commencing January 1, 2027, instead exempt from the above-described filing requirement an applicant or licensee organized as a joint venture in which all individual licensees that formed the joint venture comply with the above-described filing requirement, and an applicant or licensee that has no employees, does not undertake construction projects valued over a specified amount, amount, as prescribed, and has not been cited or otherwise disciplined by the board, as specified, provided that they specified. The bill would require an applicant or licensee exempt pursuant to these provisions to file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified. The bill would specify that the above-described exemptions do not apply to any applicant or licensee that has an active C-39 classification, as specified. The bill would require the board to periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount described above to account for inflation, as specified.
Existing law makes the filing of an exemption certificate for workers compensation insurance on file with the board 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 specified provisions or without maintaining coverage for that person, cause for disciplinary action.
This bill would include as disciplinary action, among other penalties, a minimum civil penalty of $10,000 per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage. The bill would prohibit the board from renewing or restating a license subject to the above-described disciplinary action until the applicant or licensee provides the board a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.
Existing law requires all active licensees with an exemption for workers compensation insurance on file with the board, at the time of renewal, to either recertify the licensees exemption by completing a recertification statement on the license renewal form, as provided by the board, or provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.
This bill would require the board, on or before January 1, 2027, to develop an open book examination, as specified, and update the license renewal form to include the open book examination and a requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the above-described penalties. The bill would also require specified license applicants exempt from the above-described filing requirement to complete and submit to the board the open book examination before the issuance of a license. The bill would instead require the licensee to recertify the licensees exemption by completing the applicable license renewal form, as provided by the board. By requiring a licensee who completes a license renewal form to provide a statement under penalty of perjury, this bill would expand the crime of perjury and impose a state-mandated local program.
Existing law requires the board to report annually to the Legislature, no later than October 1 of each year, certain statistical information for the prior fiscal year, including, among other things, the number of disciplinary actions taken by the board categorized by type, as specified, and by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.
This bill would require that the report specify the number of disciplinary actions for violations of specified provisions relating to the filing of a workers compensation insurance exemption certificate or a certification of self-insurance.
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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 7017.3 of the Business and Professions Code is amended to read:7017.3. The Contractors State License Board shall report annually to the Legislature, not later than October 1 of each year, the following statistical information for the prior fiscal year. The following data shall be reported on complaints filed with the board against licensed contractors, registered home improvement salespersons, and unlicensed persons acting as licensees or registrants:(a) The number of complaints received by the board categorized by source, such as public, trade, profession, government agency, or board-initiated, and by type of complaint, such as licensee or nonlicensee.(b) The number of complaints closed prior to referral for field investigation, categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(c) The number of complaints referred for field investigation categorized by the type of complaint, such as licensee or nonlicensee.(d) The number of complaints closed after referral for field investigation categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(e) For the boards Intake/Mediation Center and the boards Investigation Center closures, respectively, the total number of complaints closed prior to a field investigation per consumer services representative, and the total number of complaints closed after referral for a field investigation per investigator and special investigator. Additionally, the board shall report the total number of complaints closed by other board staff during the year.(f) The number of complaints pending at the end of the fiscal year grouped in 90-day increments, and the percentage of total complaints pending, represented by the number of complaints in each grouping.(g) The number of citations issued to licensees categorized by the type of citation such as order of correction only or order of correction and fine, and the number of citations issued to licensees that were vacated or withdrawn.(h) The number of citations issued to nonlicensees and the number of these citations that were vacated or withdrawn.(i) The number of complaints referred to a local prosecutor for criminal investigation or prosecution, the number of complaints referred to the Attorney General for the filing of an accusation, and the number of complaints referred to both a local prosecutor and the Attorney General, categorized by type of complaint, such as licensee and nonlicensee.(j) Actions taken by the board, including, but not limited to, the following:(1) (A) The number of disciplinary actions categorized by type, such as revocations or suspensions, categorized by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.(B) The number of disciplinary actions described in subparagraph (A) shall specify the number of disciplinary actions for violations of Section 7125.4.(2) The number of accusations dismissed or withdrawn.(k) For subdivisions (g) and (j), the number of cases containing violations of Sections 7121 and 7121.5, and paragraph (5) of subdivision (a) of Section 7159.5, categorized by section.(l) The number of interim suspension orders sought, the number of interim suspension orders granted, the number of temporary restraining orders sought, and the number of temporary restraining orders granted.(m) The amount of cost recovery ordered and the amount collected.(n) Case aging data, including data for each major stage of the enforcement process, including the following:(1) The average number of days from the filing of a complaint to its closure by the boards Intake/Mediation Center prior to the referral for an investigation categorized by the type of complaint, such as licensee or nonlicensee.(2) The average number of days from the referral of a complaint for an investigation to its closure by the Investigation Center categorized by the type of complaint, such as licensee or nonlicensee.(3) The average number of days from the filing of a complaint to the referral of the completed investigation to the Attorney General.(4) The average number of days from the referral of a completed investigation to the Attorney General to the filing of an accusation by the Attorney General.(5) The average number of days from the filing of an accusation to the first hearing date or date of a stipulated settlement.(6) The average number of days from the receipt of the administrative law judges proposed decision to the registrars final decision.SECTION 1.SEC. 2. Section 7125 of the Business and Professions Code, as amended by Section 12 of Chapter 485 of the Statutes of 2024, 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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided 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 the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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-8 license, as defined in Section 832.08 of Title 16 of the California Code of Regulations, a C-20 license, as defined in Section 832.20 of Title 16 of the California Code of Regulations, a C-22 license, as defined in Section 832.22 of Title 16 of the California Code of Regulations, a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, or a D-49 license, a subcategory of a C-61 license, as defined in Section 832.61 of Title 16 of the California Code of Regulations.(c) This section does not apply to an applicant or licensee organized as a joint venture pursuant to Section 7029 that has no employees, provided that the applicant or licensee files the statement prescribed by subparagraph (1) of subdivision (b).(d) A Certificate of Workers Compensation Insurance, Certification of Self-Insurance, or exemption certificate is not 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.(e) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) No reimbursement has been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(f) (1) For any license that, on January 1, 2013, 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, 2013, 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.(g) (1) For any licensee whose license, after July 1, 2023, is active and includes a C-8, C-20, C-22, or D-49 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-8, C-20, C-22, or D-49 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 July 1, 2023, is active and has had the C-8, C-20, C-22, or D-49 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.(h) The information reported pursuant to paragraph (2) of subdivision (e) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2027, deletes or extends that date.SEC. 2.SEC. 3. Section 7125 of the Business and Professions Code, as amended by Section 13 of Chapter 485 of the Statutes of 2024, 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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.(b) (1) This section does not apply to either of the following:(A) An applicant or licensee organized as a joint venture pursuant to Section 7029 in which all individual licensees that formed the joint venture comply with the filing requirement of this section.(B) (i) An applicant or licensee that has no employees, does not undertake construction projects valued over two thousand dollars ($2,000) for labor and materials, and has not been cited or otherwise disciplined by the board previously for failure to maintain a Certificate of Workers Compensation Insurance or Certification of Self-Insurance, provided that the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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. Self-Insurance. The two-thousand-dollar ($2,000) valuation described in this clause shall apply to a single work or operation and shall not be circumvented by division of contracts of amounts less than two thousand dollars ($2,000) for purpose of evasion of this paragraph or otherwise.(ii) An applicant described in clause (i) shall complete and submit to the board the open book examination described in section 7125.5 before the issuance of a license.(2) Paragraph (1) does not apply to any applicant or licensee that has an active C-39 classification, either solely or in addition to any other classification, issued by the board.(3) An applicant or licensee described in paragraph (1) shall file a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee does not employ any person in any manner so as to become subject to the workers compensation laws or is not otherwise required to provide for workers compensation insurance coverage under state law.(c) A Certificate of Workers Compensation Insurance or Certification of Self-Insurance is not 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) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) Reimbursement has not been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(e) The information reported pursuant to paragraph (2) of subdivision (d) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(f)(1)The board shall periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount for labor and materials described in subdivision (b) to account for inflation.(2)Any construction project value amount for labor and materials amount updated pursuant to paragraph (1) shall supersede the amount described in subdivision (b). (g)(f) This section shall become operative on January 1, 2027.SEC. 3.SEC. 4. 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, including, but not limited to, the following civil penalties:(1) A minimum civil penalty of ten thousand dollars ($10,000) per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage.(2) A minimum civil penalty of twenty thousand dollars ($20,000) per violation for any partnership, corporation, limited liability company, or tribal business licensee found to have employed workers without maintaining workers compensation coverage.(3) Additional civil penalties for any subsequent violations, not to exceed a total of thirty thousand dollars ($30,000) per occurrence.(b) Any qualifier for a license who, under Section 7068.1, is responsible for assuring 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) The board shall not renew or reinstate a license in violation of this section until the applicant or licensee provides the board with a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.SEC. 4.SEC. 5. Section 7125.5 of the Business and Professions Code is amended to read:7125.5. (a) (1) At the time of renewal, all active licensees with an exemption for workers compensation insurance on file with the board, submitted pursuant to subdivision (b) of Section 7125, shall do either of the following:(A) Recertify the licensees exemption by completing the applicable license renewal form, as provided by the board.(B) Provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.(2) The board shall, on or before January 1, 2027, complete both of the following:(A) The board shall develop an open book examination that includes questions regarding workers compensation laws and regulations and requires the licensee to answer those questions correctly.(B) The board shall update the license renewal form to include both of the following:(i) The open book examination, as described in subparagraph (A).(ii) A requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the penalties described in Section 7125.4.(b) The license shall not be renewed unless a licensee with an exemption for workers compensation insurance on file with the board recertifies the exemption status or provides a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance in conjunction with the license renewal.(c) If the documentation required by subdivision (a) is not provided with the license renewal but is received within 30 days after notification by the board of the renewal rejection, the registrar shall grant a retroactive renewal pursuant to Section 7141.5 back to the date of the postmark of the otherwise acceptable renewal. A renewal that is still incomplete for any reason after 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.SEC. 5.SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 7017.3 of the Business and Professions Code is amended to read:7017.3. The Contractors State License Board shall report annually to the Legislature, not later than October 1 of each year, the following statistical information for the prior fiscal year. The following data shall be reported on complaints filed with the board against licensed contractors, registered home improvement salespersons, and unlicensed persons acting as licensees or registrants:(a) The number of complaints received by the board categorized by source, such as public, trade, profession, government agency, or board-initiated, and by type of complaint, such as licensee or nonlicensee.(b) The number of complaints closed prior to referral for field investigation, categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(c) The number of complaints referred for field investigation categorized by the type of complaint, such as licensee or nonlicensee.(d) The number of complaints closed after referral for field investigation categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(e) For the boards Intake/Mediation Center and the boards Investigation Center closures, respectively, the total number of complaints closed prior to a field investigation per consumer services representative, and the total number of complaints closed after referral for a field investigation per investigator and special investigator. Additionally, the board shall report the total number of complaints closed by other board staff during the year.(f) The number of complaints pending at the end of the fiscal year grouped in 90-day increments, and the percentage of total complaints pending, represented by the number of complaints in each grouping.(g) The number of citations issued to licensees categorized by the type of citation such as order of correction only or order of correction and fine, and the number of citations issued to licensees that were vacated or withdrawn.(h) The number of citations issued to nonlicensees and the number of these citations that were vacated or withdrawn.(i) The number of complaints referred to a local prosecutor for criminal investigation or prosecution, the number of complaints referred to the Attorney General for the filing of an accusation, and the number of complaints referred to both a local prosecutor and the Attorney General, categorized by type of complaint, such as licensee and nonlicensee.(j) Actions taken by the board, including, but not limited to, the following:(1) (A) The number of disciplinary actions categorized by type, such as revocations or suspensions, categorized by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.(B) The number of disciplinary actions described in subparagraph (A) shall specify the number of disciplinary actions for violations of Section 7125.4.(2) The number of accusations dismissed or withdrawn.(k) For subdivisions (g) and (j), the number of cases containing violations of Sections 7121 and 7121.5, and paragraph (5) of subdivision (a) of Section 7159.5, categorized by section.(l) The number of interim suspension orders sought, the number of interim suspension orders granted, the number of temporary restraining orders sought, and the number of temporary restraining orders granted.(m) The amount of cost recovery ordered and the amount collected.(n) Case aging data, including data for each major stage of the enforcement process, including the following:(1) The average number of days from the filing of a complaint to its closure by the boards Intake/Mediation Center prior to the referral for an investigation categorized by the type of complaint, such as licensee or nonlicensee.(2) The average number of days from the referral of a complaint for an investigation to its closure by the Investigation Center categorized by the type of complaint, such as licensee or nonlicensee.(3) The average number of days from the filing of a complaint to the referral of the completed investigation to the Attorney General.(4) The average number of days from the referral of a completed investigation to the Attorney General to the filing of an accusation by the Attorney General.(5) The average number of days from the filing of an accusation to the first hearing date or date of a stipulated settlement.(6) The average number of days from the receipt of the administrative law judges proposed decision to the registrars final decision.
SECTION 1. Section 7017.3 of the Business and Professions Code is amended to read:
### SECTION 1.
7017.3. The Contractors State License Board shall report annually to the Legislature, not later than October 1 of each year, the following statistical information for the prior fiscal year. The following data shall be reported on complaints filed with the board against licensed contractors, registered home improvement salespersons, and unlicensed persons acting as licensees or registrants:(a) The number of complaints received by the board categorized by source, such as public, trade, profession, government agency, or board-initiated, and by type of complaint, such as licensee or nonlicensee.(b) The number of complaints closed prior to referral for field investigation, categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(c) The number of complaints referred for field investigation categorized by the type of complaint, such as licensee or nonlicensee.(d) The number of complaints closed after referral for field investigation categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(e) For the boards Intake/Mediation Center and the boards Investigation Center closures, respectively, the total number of complaints closed prior to a field investigation per consumer services representative, and the total number of complaints closed after referral for a field investigation per investigator and special investigator. Additionally, the board shall report the total number of complaints closed by other board staff during the year.(f) The number of complaints pending at the end of the fiscal year grouped in 90-day increments, and the percentage of total complaints pending, represented by the number of complaints in each grouping.(g) The number of citations issued to licensees categorized by the type of citation such as order of correction only or order of correction and fine, and the number of citations issued to licensees that were vacated or withdrawn.(h) The number of citations issued to nonlicensees and the number of these citations that were vacated or withdrawn.(i) The number of complaints referred to a local prosecutor for criminal investigation or prosecution, the number of complaints referred to the Attorney General for the filing of an accusation, and the number of complaints referred to both a local prosecutor and the Attorney General, categorized by type of complaint, such as licensee and nonlicensee.(j) Actions taken by the board, including, but not limited to, the following:(1) (A) The number of disciplinary actions categorized by type, such as revocations or suspensions, categorized by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.(B) The number of disciplinary actions described in subparagraph (A) shall specify the number of disciplinary actions for violations of Section 7125.4.(2) The number of accusations dismissed or withdrawn.(k) For subdivisions (g) and (j), the number of cases containing violations of Sections 7121 and 7121.5, and paragraph (5) of subdivision (a) of Section 7159.5, categorized by section.(l) The number of interim suspension orders sought, the number of interim suspension orders granted, the number of temporary restraining orders sought, and the number of temporary restraining orders granted.(m) The amount of cost recovery ordered and the amount collected.(n) Case aging data, including data for each major stage of the enforcement process, including the following:(1) The average number of days from the filing of a complaint to its closure by the boards Intake/Mediation Center prior to the referral for an investigation categorized by the type of complaint, such as licensee or nonlicensee.(2) The average number of days from the referral of a complaint for an investigation to its closure by the Investigation Center categorized by the type of complaint, such as licensee or nonlicensee.(3) The average number of days from the filing of a complaint to the referral of the completed investigation to the Attorney General.(4) The average number of days from the referral of a completed investigation to the Attorney General to the filing of an accusation by the Attorney General.(5) The average number of days from the filing of an accusation to the first hearing date or date of a stipulated settlement.(6) The average number of days from the receipt of the administrative law judges proposed decision to the registrars final decision.
7017.3. The Contractors State License Board shall report annually to the Legislature, not later than October 1 of each year, the following statistical information for the prior fiscal year. The following data shall be reported on complaints filed with the board against licensed contractors, registered home improvement salespersons, and unlicensed persons acting as licensees or registrants:(a) The number of complaints received by the board categorized by source, such as public, trade, profession, government agency, or board-initiated, and by type of complaint, such as licensee or nonlicensee.(b) The number of complaints closed prior to referral for field investigation, categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(c) The number of complaints referred for field investigation categorized by the type of complaint, such as licensee or nonlicensee.(d) The number of complaints closed after referral for field investigation categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(e) For the boards Intake/Mediation Center and the boards Investigation Center closures, respectively, the total number of complaints closed prior to a field investigation per consumer services representative, and the total number of complaints closed after referral for a field investigation per investigator and special investigator. Additionally, the board shall report the total number of complaints closed by other board staff during the year.(f) The number of complaints pending at the end of the fiscal year grouped in 90-day increments, and the percentage of total complaints pending, represented by the number of complaints in each grouping.(g) The number of citations issued to licensees categorized by the type of citation such as order of correction only or order of correction and fine, and the number of citations issued to licensees that were vacated or withdrawn.(h) The number of citations issued to nonlicensees and the number of these citations that were vacated or withdrawn.(i) The number of complaints referred to a local prosecutor for criminal investigation or prosecution, the number of complaints referred to the Attorney General for the filing of an accusation, and the number of complaints referred to both a local prosecutor and the Attorney General, categorized by type of complaint, such as licensee and nonlicensee.(j) Actions taken by the board, including, but not limited to, the following:(1) (A) The number of disciplinary actions categorized by type, such as revocations or suspensions, categorized by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.(B) The number of disciplinary actions described in subparagraph (A) shall specify the number of disciplinary actions for violations of Section 7125.4.(2) The number of accusations dismissed or withdrawn.(k) For subdivisions (g) and (j), the number of cases containing violations of Sections 7121 and 7121.5, and paragraph (5) of subdivision (a) of Section 7159.5, categorized by section.(l) The number of interim suspension orders sought, the number of interim suspension orders granted, the number of temporary restraining orders sought, and the number of temporary restraining orders granted.(m) The amount of cost recovery ordered and the amount collected.(n) Case aging data, including data for each major stage of the enforcement process, including the following:(1) The average number of days from the filing of a complaint to its closure by the boards Intake/Mediation Center prior to the referral for an investigation categorized by the type of complaint, such as licensee or nonlicensee.(2) The average number of days from the referral of a complaint for an investigation to its closure by the Investigation Center categorized by the type of complaint, such as licensee or nonlicensee.(3) The average number of days from the filing of a complaint to the referral of the completed investigation to the Attorney General.(4) The average number of days from the referral of a completed investigation to the Attorney General to the filing of an accusation by the Attorney General.(5) The average number of days from the filing of an accusation to the first hearing date or date of a stipulated settlement.(6) The average number of days from the receipt of the administrative law judges proposed decision to the registrars final decision.
7017.3. The Contractors State License Board shall report annually to the Legislature, not later than October 1 of each year, the following statistical information for the prior fiscal year. The following data shall be reported on complaints filed with the board against licensed contractors, registered home improvement salespersons, and unlicensed persons acting as licensees or registrants:(a) The number of complaints received by the board categorized by source, such as public, trade, profession, government agency, or board-initiated, and by type of complaint, such as licensee or nonlicensee.(b) The number of complaints closed prior to referral for field investigation, categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(c) The number of complaints referred for field investigation categorized by the type of complaint, such as licensee or nonlicensee.(d) The number of complaints closed after referral for field investigation categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.(e) For the boards Intake/Mediation Center and the boards Investigation Center closures, respectively, the total number of complaints closed prior to a field investigation per consumer services representative, and the total number of complaints closed after referral for a field investigation per investigator and special investigator. Additionally, the board shall report the total number of complaints closed by other board staff during the year.(f) The number of complaints pending at the end of the fiscal year grouped in 90-day increments, and the percentage of total complaints pending, represented by the number of complaints in each grouping.(g) The number of citations issued to licensees categorized by the type of citation such as order of correction only or order of correction and fine, and the number of citations issued to licensees that were vacated or withdrawn.(h) The number of citations issued to nonlicensees and the number of these citations that were vacated or withdrawn.(i) The number of complaints referred to a local prosecutor for criminal investigation or prosecution, the number of complaints referred to the Attorney General for the filing of an accusation, and the number of complaints referred to both a local prosecutor and the Attorney General, categorized by type of complaint, such as licensee and nonlicensee.(j) Actions taken by the board, including, but not limited to, the following:(1) (A) The number of disciplinary actions categorized by type, such as revocations or suspensions, categorized by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.(B) The number of disciplinary actions described in subparagraph (A) shall specify the number of disciplinary actions for violations of Section 7125.4.(2) The number of accusations dismissed or withdrawn.(k) For subdivisions (g) and (j), the number of cases containing violations of Sections 7121 and 7121.5, and paragraph (5) of subdivision (a) of Section 7159.5, categorized by section.(l) The number of interim suspension orders sought, the number of interim suspension orders granted, the number of temporary restraining orders sought, and the number of temporary restraining orders granted.(m) The amount of cost recovery ordered and the amount collected.(n) Case aging data, including data for each major stage of the enforcement process, including the following:(1) The average number of days from the filing of a complaint to its closure by the boards Intake/Mediation Center prior to the referral for an investigation categorized by the type of complaint, such as licensee or nonlicensee.(2) The average number of days from the referral of a complaint for an investigation to its closure by the Investigation Center categorized by the type of complaint, such as licensee or nonlicensee.(3) The average number of days from the filing of a complaint to the referral of the completed investigation to the Attorney General.(4) The average number of days from the referral of a completed investigation to the Attorney General to the filing of an accusation by the Attorney General.(5) The average number of days from the filing of an accusation to the first hearing date or date of a stipulated settlement.(6) The average number of days from the receipt of the administrative law judges proposed decision to the registrars final decision.
7017.3. The Contractors State License Board shall report annually to the Legislature, not later than October 1 of each year, the following statistical information for the prior fiscal year. The following data shall be reported on complaints filed with the board against licensed contractors, registered home improvement salespersons, and unlicensed persons acting as licensees or registrants:
(a) The number of complaints received by the board categorized by source, such as public, trade, profession, government agency, or board-initiated, and by type of complaint, such as licensee or nonlicensee.
(b) The number of complaints closed prior to referral for field investigation, categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.
(c) The number of complaints referred for field investigation categorized by the type of complaint, such as licensee or nonlicensee.
(d) The number of complaints closed after referral for field investigation categorized by the reason for the closure, such as settled, referred for mandatory arbitration, or referred for voluntary arbitration.
(e) For the boards Intake/Mediation Center and the boards Investigation Center closures, respectively, the total number of complaints closed prior to a field investigation per consumer services representative, and the total number of complaints closed after referral for a field investigation per investigator and special investigator. Additionally, the board shall report the total number of complaints closed by other board staff during the year.
(f) The number of complaints pending at the end of the fiscal year grouped in 90-day increments, and the percentage of total complaints pending, represented by the number of complaints in each grouping.
(g) The number of citations issued to licensees categorized by the type of citation such as order of correction only or order of correction and fine, and the number of citations issued to licensees that were vacated or withdrawn.
(h) The number of citations issued to nonlicensees and the number of these citations that were vacated or withdrawn.
(i) The number of complaints referred to a local prosecutor for criminal investigation or prosecution, the number of complaints referred to the Attorney General for the filing of an accusation, and the number of complaints referred to both a local prosecutor and the Attorney General, categorized by type of complaint, such as licensee and nonlicensee.
(j) Actions taken by the board, including, but not limited to, the following:
(1) (A) The number of disciplinary actions categorized by type, such as revocations or suspensions, categorized by whether the disciplinary action resulted from an accusation, failure to comply with a citation, or failure to comply with an arbitration award.
(B) The number of disciplinary actions described in subparagraph (A) shall specify the number of disciplinary actions for violations of Section 7125.4.
(2) The number of accusations dismissed or withdrawn.
(k) For subdivisions (g) and (j), the number of cases containing violations of Sections 7121 and 7121.5, and paragraph (5) of subdivision (a) of Section 7159.5, categorized by section.
(l) The number of interim suspension orders sought, the number of interim suspension orders granted, the number of temporary restraining orders sought, and the number of temporary restraining orders granted.
(m) The amount of cost recovery ordered and the amount collected.
(n) Case aging data, including data for each major stage of the enforcement process, including the following:
(1) The average number of days from the filing of a complaint to its closure by the boards Intake/Mediation Center prior to the referral for an investigation categorized by the type of complaint, such as licensee or nonlicensee.
(2) The average number of days from the referral of a complaint for an investigation to its closure by the Investigation Center categorized by the type of complaint, such as licensee or nonlicensee.
(3) The average number of days from the filing of a complaint to the referral of the completed investigation to the Attorney General.
(4) The average number of days from the referral of a completed investigation to the Attorney General to the filing of an accusation by the Attorney General.
(5) The average number of days from the filing of an accusation to the first hearing date or date of a stipulated settlement.
(6) The average number of days from the receipt of the administrative law judges proposed decision to the registrars final decision.
SECTION 1.SEC. 2. Section 7125 of the Business and Professions Code, as amended by Section 12 of Chapter 485 of the Statutes of 2024, 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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided 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 the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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-8 license, as defined in Section 832.08 of Title 16 of the California Code of Regulations, a C-20 license, as defined in Section 832.20 of Title 16 of the California Code of Regulations, a C-22 license, as defined in Section 832.22 of Title 16 of the California Code of Regulations, a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, or a D-49 license, a subcategory of a C-61 license, as defined in Section 832.61 of Title 16 of the California Code of Regulations.(c) This section does not apply to an applicant or licensee organized as a joint venture pursuant to Section 7029 that has no employees, provided that the applicant or licensee files the statement prescribed by subparagraph (1) of subdivision (b).(d) A Certificate of Workers Compensation Insurance, Certification of Self-Insurance, or exemption certificate is not 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.(e) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) No reimbursement has been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(f) (1) For any license that, on January 1, 2013, 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, 2013, 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.(g) (1) For any licensee whose license, after July 1, 2023, is active and includes a C-8, C-20, C-22, or D-49 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-8, C-20, C-22, or D-49 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 July 1, 2023, is active and has had the C-8, C-20, C-22, or D-49 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.(h) The information reported pursuant to paragraph (2) of subdivision (e) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2027, deletes or extends that date.
SECTION 1.SEC. 2. Section 7125 of the Business and Professions Code, as amended by Section 12 of Chapter 485 of the Statutes of 2024, is amended to read:
### SECTION 1.SEC. 2.
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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided 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 the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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-8 license, as defined in Section 832.08 of Title 16 of the California Code of Regulations, a C-20 license, as defined in Section 832.20 of Title 16 of the California Code of Regulations, a C-22 license, as defined in Section 832.22 of Title 16 of the California Code of Regulations, a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, or a D-49 license, a subcategory of a C-61 license, as defined in Section 832.61 of Title 16 of the California Code of Regulations.(c) This section does not apply to an applicant or licensee organized as a joint venture pursuant to Section 7029 that has no employees, provided that the applicant or licensee files the statement prescribed by subparagraph (1) of subdivision (b).(d) A Certificate of Workers Compensation Insurance, Certification of Self-Insurance, or exemption certificate is not 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.(e) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) No reimbursement has been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(f) (1) For any license that, on January 1, 2013, 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, 2013, 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.(g) (1) For any licensee whose license, after July 1, 2023, is active and includes a C-8, C-20, C-22, or D-49 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-8, C-20, C-22, or D-49 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 July 1, 2023, is active and has had the C-8, C-20, C-22, or D-49 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.(h) The information reported pursuant to paragraph (2) of subdivision (e) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2027, deletes or extends that date.
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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided 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 the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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-8 license, as defined in Section 832.08 of Title 16 of the California Code of Regulations, a C-20 license, as defined in Section 832.20 of Title 16 of the California Code of Regulations, a C-22 license, as defined in Section 832.22 of Title 16 of the California Code of Regulations, a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, or a D-49 license, a subcategory of a C-61 license, as defined in Section 832.61 of Title 16 of the California Code of Regulations.(c) This section does not apply to an applicant or licensee organized as a joint venture pursuant to Section 7029 that has no employees, provided that the applicant or licensee files the statement prescribed by subparagraph (1) of subdivision (b).(d) A Certificate of Workers Compensation Insurance, Certification of Self-Insurance, or exemption certificate is not 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.(e) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) No reimbursement has been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(f) (1) For any license that, on January 1, 2013, 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, 2013, 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.(g) (1) For any licensee whose license, after July 1, 2023, is active and includes a C-8, C-20, C-22, or D-49 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-8, C-20, C-22, or D-49 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 July 1, 2023, is active and has had the C-8, C-20, C-22, or D-49 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.(h) The information reported pursuant to paragraph (2) of subdivision (e) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2027, deletes or extends that date.
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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided 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 the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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-8 license, as defined in Section 832.08 of Title 16 of the California Code of Regulations, a C-20 license, as defined in Section 832.20 of Title 16 of the California Code of Regulations, a C-22 license, as defined in Section 832.22 of Title 16 of the California Code of Regulations, a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, or a D-49 license, a subcategory of a C-61 license, as defined in Section 832.61 of Title 16 of the California Code of Regulations.(c) This section does not apply to an applicant or licensee organized as a joint venture pursuant to Section 7029 that has no employees, provided that the applicant or licensee files the statement prescribed by subparagraph (1) of subdivision (b).(d) A Certificate of Workers Compensation Insurance, Certification of Self-Insurance, or exemption certificate is not 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.(e) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) No reimbursement has been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(f) (1) For any license that, on January 1, 2013, 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, 2013, 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.(g) (1) For any licensee whose license, after July 1, 2023, is active and includes a C-8, C-20, C-22, or D-49 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-8, C-20, C-22, or D-49 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 July 1, 2023, is active and has had the C-8, C-20, C-22, or D-49 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.(h) The information reported pursuant to paragraph (2) of subdivision (e) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2027, deletes or extends that date.
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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided 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 the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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-8 license, as defined in Section 832.08 of Title 16 of the California Code of Regulations, a C-20 license, as defined in Section 832.20 of Title 16 of the California Code of Regulations, a C-22 license, as defined in Section 832.22 of Title 16 of the California Code of Regulations, a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, or a D-49 license, a subcategory of a C-61 license, as defined in Section 832.61 of Title 16 of the California Code of Regulations.
(c) This section does not apply to an applicant or licensee organized as a joint venture pursuant to Section 7029 that has no employees, provided that the applicant or licensee files the statement prescribed by subparagraph (1) of subdivision (b).
(d) A Certificate of Workers Compensation Insurance, Certification of Self-Insurance, or exemption certificate is not 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.
(e) (1) 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.
(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:
(A) The insurer has completed a premium audit or investigation.
(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.
(C) No reimbursement has been paid by the insured to the insurer.
(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.
(f) (1) For any license that, on January 1, 2013, 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, 2013, 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.
(g) (1) For any licensee whose license, after July 1, 2023, is active and includes a C-8, C-20, C-22, or D-49 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-8, C-20, C-22, or D-49 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 July 1, 2023, is active and has had the C-8, C-20, C-22, or D-49 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.
(h) The information reported pursuant to paragraph (2) of subdivision (e) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2027, deletes or extends that date.
SEC. 2.SEC. 3. Section 7125 of the Business and Professions Code, as amended by Section 13 of Chapter 485 of the Statutes of 2024, 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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.(b) (1) This section does not apply to either of the following:(A) An applicant or licensee organized as a joint venture pursuant to Section 7029 in which all individual licensees that formed the joint venture comply with the filing requirement of this section.(B) (i) An applicant or licensee that has no employees, does not undertake construction projects valued over two thousand dollars ($2,000) for labor and materials, and has not been cited or otherwise disciplined by the board previously for failure to maintain a Certificate of Workers Compensation Insurance or Certification of Self-Insurance, provided that the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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. Self-Insurance. The two-thousand-dollar ($2,000) valuation described in this clause shall apply to a single work or operation and shall not be circumvented by division of contracts of amounts less than two thousand dollars ($2,000) for purpose of evasion of this paragraph or otherwise.(ii) An applicant described in clause (i) shall complete and submit to the board the open book examination described in section 7125.5 before the issuance of a license.(2) Paragraph (1) does not apply to any applicant or licensee that has an active C-39 classification, either solely or in addition to any other classification, issued by the board.(3) An applicant or licensee described in paragraph (1) shall file a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee does not employ any person in any manner so as to become subject to the workers compensation laws or is not otherwise required to provide for workers compensation insurance coverage under state law.(c) A Certificate of Workers Compensation Insurance or Certification of Self-Insurance is not 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) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) Reimbursement has not been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(e) The information reported pursuant to paragraph (2) of subdivision (d) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(f)(1)The board shall periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount for labor and materials described in subdivision (b) to account for inflation.(2)Any construction project value amount for labor and materials amount updated pursuant to paragraph (1) shall supersede the amount described in subdivision (b). (g)(f) This section shall become operative on January 1, 2027.
SEC. 2.SEC. 3. Section 7125 of the Business and Professions Code, as amended by Section 13 of Chapter 485 of the Statutes of 2024, is amended to read:
### SEC. 2.SEC. 3.
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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.(b) (1) This section does not apply to either of the following:(A) An applicant or licensee organized as a joint venture pursuant to Section 7029 in which all individual licensees that formed the joint venture comply with the filing requirement of this section.(B) (i) An applicant or licensee that has no employees, does not undertake construction projects valued over two thousand dollars ($2,000) for labor and materials, and has not been cited or otherwise disciplined by the board previously for failure to maintain a Certificate of Workers Compensation Insurance or Certification of Self-Insurance, provided that the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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. Self-Insurance. The two-thousand-dollar ($2,000) valuation described in this clause shall apply to a single work or operation and shall not be circumvented by division of contracts of amounts less than two thousand dollars ($2,000) for purpose of evasion of this paragraph or otherwise.(ii) An applicant described in clause (i) shall complete and submit to the board the open book examination described in section 7125.5 before the issuance of a license.(2) Paragraph (1) does not apply to any applicant or licensee that has an active C-39 classification, either solely or in addition to any other classification, issued by the board.(3) An applicant or licensee described in paragraph (1) shall file a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee does not employ any person in any manner so as to become subject to the workers compensation laws or is not otherwise required to provide for workers compensation insurance coverage under state law.(c) A Certificate of Workers Compensation Insurance or Certification of Self-Insurance is not 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) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) Reimbursement has not been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(e) The information reported pursuant to paragraph (2) of subdivision (d) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(f)(1)The board shall periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount for labor and materials described in subdivision (b) to account for inflation.(2)Any construction project value amount for labor and materials amount updated pursuant to paragraph (1) shall supersede the amount described in subdivision (b). (g)(f) This section shall become operative on January 1, 2027.
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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.(b) (1) This section does not apply to either of the following:(A) An applicant or licensee organized as a joint venture pursuant to Section 7029 in which all individual licensees that formed the joint venture comply with the filing requirement of this section.(B) (i) An applicant or licensee that has no employees, does not undertake construction projects valued over two thousand dollars ($2,000) for labor and materials, and has not been cited or otherwise disciplined by the board previously for failure to maintain a Certificate of Workers Compensation Insurance or Certification of Self-Insurance, provided that the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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. Self-Insurance. The two-thousand-dollar ($2,000) valuation described in this clause shall apply to a single work or operation and shall not be circumvented by division of contracts of amounts less than two thousand dollars ($2,000) for purpose of evasion of this paragraph or otherwise.(ii) An applicant described in clause (i) shall complete and submit to the board the open book examination described in section 7125.5 before the issuance of a license.(2) Paragraph (1) does not apply to any applicant or licensee that has an active C-39 classification, either solely or in addition to any other classification, issued by the board.(3) An applicant or licensee described in paragraph (1) shall file a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee does not employ any person in any manner so as to become subject to the workers compensation laws or is not otherwise required to provide for workers compensation insurance coverage under state law.(c) A Certificate of Workers Compensation Insurance or Certification of Self-Insurance is not 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) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) Reimbursement has not been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(e) The information reported pursuant to paragraph (2) of subdivision (d) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(f)(1)The board shall periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount for labor and materials described in subdivision (b) to account for inflation.(2)Any construction project value amount for labor and materials amount updated pursuant to paragraph (1) shall supersede the amount described in subdivision (b). (g)(f) This section shall become operative on January 1, 2027.
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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.(b) (1) This section does not apply to either of the following:(A) An applicant or licensee organized as a joint venture pursuant to Section 7029 in which all individual licensees that formed the joint venture comply with the filing requirement of this section.(B) (i) An applicant or licensee that has no employees, does not undertake construction projects valued over two thousand dollars ($2,000) for labor and materials, and has not been cited or otherwise disciplined by the board previously for failure to maintain a Certificate of Workers Compensation Insurance or Certification of Self-Insurance, provided that the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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. Self-Insurance. The two-thousand-dollar ($2,000) valuation described in this clause shall apply to a single work or operation and shall not be circumvented by division of contracts of amounts less than two thousand dollars ($2,000) for purpose of evasion of this paragraph or otherwise.(ii) An applicant described in clause (i) shall complete and submit to the board the open book examination described in section 7125.5 before the issuance of a license.(2) Paragraph (1) does not apply to any applicant or licensee that has an active C-39 classification, either solely or in addition to any other classification, issued by the board.(3) An applicant or licensee described in paragraph (1) shall file a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee does not employ any person in any manner so as to become subject to the workers compensation laws or is not otherwise required to provide for workers compensation insurance coverage under state law.(c) A Certificate of Workers Compensation Insurance or Certification of Self-Insurance is not 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) (1) 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.(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:(A) The insurer has completed a premium audit or investigation.(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.(C) Reimbursement has not been paid by the insured to the insurer.(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.(e) The information reported pursuant to paragraph (2) of subdivision (d) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(f)(1)The board shall periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount for labor and materials described in subdivision (b) to account for inflation.(2)Any construction project value amount for labor and materials amount updated pursuant to paragraph (1) shall supersede the amount described in subdivision (b). (g)(f) This section shall become operative on January 1, 2027.
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 in the applicants or licensees business name. A Certificate of Workers Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer 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 provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.
(b) (1) This section does not apply to either of the following:
(A) An applicant or licensee organized as a joint venture pursuant to Section 7029 in which all individual licensees that formed the joint venture comply with the filing requirement of this section.
(B) (i) An applicant or licensee that has no employees, does not undertake construction projects valued over two thousand dollars ($2,000) for labor and materials, and has not been cited or otherwise disciplined by the board previously for failure to maintain a Certificate of Workers Compensation Insurance or Certification of Self-Insurance, provided that the applicant or licensee files a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee 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. Self-Insurance. The two-thousand-dollar ($2,000) valuation described in this clause shall apply to a single work or operation and shall not be circumvented by division of contracts of amounts less than two thousand dollars ($2,000) for purpose of evasion of this paragraph or otherwise.
(ii) An applicant described in clause (i) shall complete and submit to the board the open book examination described in section 7125.5 before the issuance of a license.
(2) Paragraph (1) does not apply to any applicant or licensee that has an active C-39 classification, either solely or in addition to any other classification, issued by the board.
(3) An applicant or licensee described in paragraph (1) shall file a statement with the board on a form prescribed by the registrar before the issuance, reinstatement, reactivation, or continued maintenance of a license, certifying that the applicant or licensee does not employ any person in any manner so as to become subject to the workers compensation laws or is not otherwise required to provide for workers compensation insurance coverage under state law.
(c) A Certificate of Workers Compensation Insurance or Certification of Self-Insurance is not 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) (1) 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.
(2) A workers compensation insurer shall also report to the registrar a licensee whose workers compensation insurance policy is canceled by the insurer if all of the following conditions are met:
(A) The insurer has completed a premium audit or investigation.
(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.
(C) Reimbursement has not been paid by the insured to the insurer.
(3) Willful or deliberate disregard and violation of workers compensation insurance laws constitutes a cause for disciplinary action by the registrar against the licensee.
(e) The information reported pursuant to paragraph (2) of subdivision (d) shall be confidential, and shall be exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(f)(1)The board shall periodically review and consult with the Legislature to amend or adopt regulations to update the construction project value amount for labor and materials described in subdivision (b) to account for inflation.
(2)Any construction project value amount for labor and materials amount updated pursuant to paragraph (1) shall supersede the amount described in subdivision (b).
(g)
(f) This section shall become operative on January 1, 2027.
SEC. 3.SEC. 4. 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, including, but not limited to, the following civil penalties:(1) A minimum civil penalty of ten thousand dollars ($10,000) per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage.(2) A minimum civil penalty of twenty thousand dollars ($20,000) per violation for any partnership, corporation, limited liability company, or tribal business licensee found to have employed workers without maintaining workers compensation coverage.(3) Additional civil penalties for any subsequent violations, not to exceed a total of thirty thousand dollars ($30,000) per occurrence.(b) Any qualifier for a license who, under Section 7068.1, is responsible for assuring 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) The board shall not renew or reinstate a license in violation of this section until the applicant or licensee provides the board with a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.
SEC. 3.SEC. 4. Section 7125.4 of the Business and Professions Code is amended to read:
### SEC. 3.SEC. 4.
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, including, but not limited to, the following civil penalties:(1) A minimum civil penalty of ten thousand dollars ($10,000) per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage.(2) A minimum civil penalty of twenty thousand dollars ($20,000) per violation for any partnership, corporation, limited liability company, or tribal business licensee found to have employed workers without maintaining workers compensation coverage.(3) Additional civil penalties for any subsequent violations, not to exceed a total of thirty thousand dollars ($30,000) per occurrence.(b) Any qualifier for a license who, under Section 7068.1, is responsible for assuring 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) The board shall not renew or reinstate a license in violation of this section until the applicant or licensee provides the board with a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.
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, including, but not limited to, the following civil penalties:(1) A minimum civil penalty of ten thousand dollars ($10,000) per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage.(2) A minimum civil penalty of twenty thousand dollars ($20,000) per violation for any partnership, corporation, limited liability company, or tribal business licensee found to have employed workers without maintaining workers compensation coverage.(3) Additional civil penalties for any subsequent violations, not to exceed a total of thirty thousand dollars ($30,000) per occurrence.(b) Any qualifier for a license who, under Section 7068.1, is responsible for assuring 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) The board shall not renew or reinstate a license in violation of this section until the applicant or licensee provides the board with a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.
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, including, but not limited to, the following civil penalties:(1) A minimum civil penalty of ten thousand dollars ($10,000) per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage.(2) A minimum civil penalty of twenty thousand dollars ($20,000) per violation for any partnership, corporation, limited liability company, or tribal business licensee found to have employed workers without maintaining workers compensation coverage.(3) Additional civil penalties for any subsequent violations, not to exceed a total of thirty thousand dollars ($30,000) per occurrence.(b) Any qualifier for a license who, under Section 7068.1, is responsible for assuring 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) The board shall not renew or reinstate a license in violation of this section until the applicant or licensee provides the board with a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.
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, including, but not limited to, the following civil penalties:
(1) A minimum civil penalty of ten thousand dollars ($10,000) per violation for any sole owner licensee found to have employed workers without maintaining workers compensation coverage.
(2) A minimum civil penalty of twenty thousand dollars ($20,000) per violation for any partnership, corporation, limited liability company, or tribal business licensee found to have employed workers without maintaining workers compensation coverage.
(3) Additional civil penalties for any subsequent violations, not to exceed a total of thirty thousand dollars ($30,000) per occurrence.
(b) Any qualifier for a license who, under Section 7068.1, is responsible for assuring 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) The board shall not renew or reinstate a license in violation of this section until the applicant or licensee provides the board with a current and valid Certificate of Workers Compensation Insurance or Certification of Self-Insurance in the applicants or licensees business name.
SEC. 4.SEC. 5. Section 7125.5 of the Business and Professions Code is amended to read:7125.5. (a) (1) At the time of renewal, all active licensees with an exemption for workers compensation insurance on file with the board, submitted pursuant to subdivision (b) of Section 7125, shall do either of the following:(A) Recertify the licensees exemption by completing the applicable license renewal form, as provided by the board.(B) Provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.(2) The board shall, on or before January 1, 2027, complete both of the following:(A) The board shall develop an open book examination that includes questions regarding workers compensation laws and regulations and requires the licensee to answer those questions correctly.(B) The board shall update the license renewal form to include both of the following:(i) The open book examination, as described in subparagraph (A).(ii) A requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the penalties described in Section 7125.4.(b) The license shall not be renewed unless a licensee with an exemption for workers compensation insurance on file with the board recertifies the exemption status or provides a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance in conjunction with the license renewal.(c) If the documentation required by subdivision (a) is not provided with the license renewal but is received within 30 days after notification by the board of the renewal rejection, the registrar shall grant a retroactive renewal pursuant to Section 7141.5 back to the date of the postmark of the otherwise acceptable renewal. A renewal that is still incomplete for any reason after 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.
SEC. 4.SEC. 5. Section 7125.5 of the Business and Professions Code is amended to read:
### SEC. 4.SEC. 5.
7125.5. (a) (1) At the time of renewal, all active licensees with an exemption for workers compensation insurance on file with the board, submitted pursuant to subdivision (b) of Section 7125, shall do either of the following:(A) Recertify the licensees exemption by completing the applicable license renewal form, as provided by the board.(B) Provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.(2) The board shall, on or before January 1, 2027, complete both of the following:(A) The board shall develop an open book examination that includes questions regarding workers compensation laws and regulations and requires the licensee to answer those questions correctly.(B) The board shall update the license renewal form to include both of the following:(i) The open book examination, as described in subparagraph (A).(ii) A requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the penalties described in Section 7125.4.(b) The license shall not be renewed unless a licensee with an exemption for workers compensation insurance on file with the board recertifies the exemption status or provides a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance in conjunction with the license renewal.(c) If the documentation required by subdivision (a) is not provided with the license renewal but is received within 30 days after notification by the board of the renewal rejection, the registrar shall grant a retroactive renewal pursuant to Section 7141.5 back to the date of the postmark of the otherwise acceptable renewal. A renewal that is still incomplete for any reason after 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.
7125.5. (a) (1) At the time of renewal, all active licensees with an exemption for workers compensation insurance on file with the board, submitted pursuant to subdivision (b) of Section 7125, shall do either of the following:(A) Recertify the licensees exemption by completing the applicable license renewal form, as provided by the board.(B) Provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.(2) The board shall, on or before January 1, 2027, complete both of the following:(A) The board shall develop an open book examination that includes questions regarding workers compensation laws and regulations and requires the licensee to answer those questions correctly.(B) The board shall update the license renewal form to include both of the following:(i) The open book examination, as described in subparagraph (A).(ii) A requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the penalties described in Section 7125.4.(b) The license shall not be renewed unless a licensee with an exemption for workers compensation insurance on file with the board recertifies the exemption status or provides a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance in conjunction with the license renewal.(c) If the documentation required by subdivision (a) is not provided with the license renewal but is received within 30 days after notification by the board of the renewal rejection, the registrar shall grant a retroactive renewal pursuant to Section 7141.5 back to the date of the postmark of the otherwise acceptable renewal. A renewal that is still incomplete for any reason after 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.
7125.5. (a) (1) At the time of renewal, all active licensees with an exemption for workers compensation insurance on file with the board, submitted pursuant to subdivision (b) of Section 7125, shall do either of the following:(A) Recertify the licensees exemption by completing the applicable license renewal form, as provided by the board.(B) Provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.(2) The board shall, on or before January 1, 2027, complete both of the following:(A) The board shall develop an open book examination that includes questions regarding workers compensation laws and regulations and requires the licensee to answer those questions correctly.(B) The board shall update the license renewal form to include both of the following:(i) The open book examination, as described in subparagraph (A).(ii) A requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the penalties described in Section 7125.4.(b) The license shall not be renewed unless a licensee with an exemption for workers compensation insurance on file with the board recertifies the exemption status or provides a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance in conjunction with the license renewal.(c) If the documentation required by subdivision (a) is not provided with the license renewal but is received within 30 days after notification by the board of the renewal rejection, the registrar shall grant a retroactive renewal pursuant to Section 7141.5 back to the date of the postmark of the otherwise acceptable renewal. A renewal that is still incomplete for any reason after 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.
7125.5. (a) (1) At the time of renewal, all active licensees with an exemption for workers compensation insurance on file with the board, submitted pursuant to subdivision (b) of Section 7125, shall do either of the following:
(A) Recertify the licensees exemption by completing the applicable license renewal form, as provided by the board.
(B) Provide a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.
(2) The board shall, on or before January 1, 2027, complete both of the following:
(A) The board shall develop an open book examination that includes questions regarding workers compensation laws and regulations and requires the licensee to answer those questions correctly.
(B) The board shall update the license renewal form to include both of the following:
(i) The open book examination, as described in subparagraph (A).
(ii) A requirement that the licensee state under penalty of perjury that they do not have employees and that they understand the penalties described in Section 7125.4.
(b) The license shall not be renewed unless a licensee with an exemption for workers compensation insurance on file with the board recertifies the exemption status or provides a current and valid Certificate of Workers Compensation Insurance or Certificate of Self-Insurance in conjunction with the license renewal.
(c) If the documentation required by subdivision (a) is not provided with the license renewal but is received within 30 days after notification by the board of the renewal rejection, the registrar shall grant a retroactive renewal pursuant to Section 7141.5 back to the date of the postmark of the otherwise acceptable renewal. A renewal that is still incomplete for any reason after 30 days after notification of rejection shall not be eligible for retroactive renewal under this subdivision.
SEC. 5.SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 5.SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 5.SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
### SEC. 5.SEC. 6.