Be Ready to Recertify: Proof of Workers' Compensation Insurance Coverage or Exemption Required with Each License Renewal

As part of CSLB's ongoing effort to level the playing field for licensees who comply with workers' compensation insurance laws, the Board this year sponsored a pair of bills that became law: Assembly Bills 397 and 878. Starting January 1, 2012, Assembly Bill 397 requires a contractor who has certified that he/she has no employees and is exempt from carrying a workers' compensation policy must submit a new certification, or proof of workers' compensation insurance coverage or self-insurance, each time the license is up for renewal. C-39 Roofing contractors must still purchase workers' compensation insurance coverage even if they have no employees, as required by Business and Professions Code section 7125. CSLB will notify licensees once instructions on how to comply with this law and new renewal forms are available, which is anticipated by mid-2012.

Assembly Bill 878 will require workers' compensation insurers to report to CSLB if a licensee's policy is cancelled as the result of a premium audit or investigation, or a misrepresentation that results in harm to the insurer without reimbursement being made. This legislation further states that disregard and violation of workers' compensation insurance laws are cause for discipline by the Registrar.

Following are additional laws passed and signed into law in 2011. Laws with effective dates other than January 1, 2012 are noted in bold italics.

Assembly Bill 551 increases the fines for contractors who fail to pay prevailing wage on a public works project and for failure to provide certified payroll records in a timely fashion. It also requires the Labor Commissioner to notify CSLB when it updates its lists for these violations, and to annually notify awarding bodies of the availability of the list.
Assembly Bill 766 is the companion to AB 551 and requires that certified copies of the payroll records be made available to members of the Joint Enforcement Strike Force on the Underground Economy or other law enforcement on request. If such records are requested by the public, information on the employees would be redacted.
Senate Bill 459 authorizes the Labor and Workforce Development Agency to issue fines for the willful misclassification of employees as independent contractors, and requires the agency to notify CSLB of violators who are licensees. The legislation further requires the board to initiate actions against such licensees.

Assembly Bill 1091 requires that CSLB be notified within 90 days of a Responsible Managing Officer's or Employee's disassociation from the license. The bill also enables a 90-day extension in limited circumstances to replace the qualifier for the license.
Senate Bill 543 continues CSLB's operation as a board until January 1, 2016, unless the board's sunset date is extended before then.
Senate Bill 944 makes a variety of technical changes and updates to Contractor License Law.

Assembly Bill 1307 states that CSLB may discipline a license for failure to resolve outstanding final liabilities assessed by the Board of Equalization, in addition to the current disciplinary laws coordinated between CSLB and the Franchise Tax Board, Employment Development Department, and Department of Industrial Relations.
Assembly Bill 1424 requires CSLB to state on its applications that the law allows the Board of Equalization and Franchise Tax Board to share information with CSLB and that a license may be suspended for failure to pay state tax obligations.

Senate Bill 190 makes technical changes to the mechanic's lien overhaul legislation passed last year (SB 189) that is to take effect on July 1, 2012.
Senate Bill 424 (Chapter 127, adds section 8319 to the Civil Code) enables a design professional lien to be converted to a mechanic's lien if the design professional lien expires and remains partially or fully unpaid. The converted lien is recorded and enforced as a mechanic's lien, except the design professional is not required to provide a preliminary notice to enforce the mechanic's lien and is done within 30 days of the design professional lien expiring.
Assembly Bill 456 (Chapter 673, amends sections 3084 and 8416 of the Civil Code) clarifies that the proof of service affidavit that must accompany a mechanic's lien filing to validate the lien must show the name of the property owner and the title or capacity in which the person or entity was served the claim of lien.

Senate Bill 474 bars contractors from using indemnification clauses to pass through to subcontractors the liability for certain legal damages, beginning January 1, 2013. Subcontractors would not have to pay for either accidental or deliberate harm caused by contractors, other subcontractors, or other parties. The law does not apply to certain contracts such as those governing residential homes, public buildings, workers' compensation agreements, and some insurance agreements.

Senate Bill 56 changes some requirements for construction trade apprenticeship programs and the Division of Apprenticeship Standards responsibilities for oversight of such programs.
Assembly Bill 1346 requires those seeking electrical certification from the Division of Apprenticeship Standards to include an employment history report from the Social Security Administration when submitting an application for certification and examination.

Senate Bill 454 authorizes the California Energy Commission to assess civil or administrative penalties for violating energy efficiency standards. It further prohibits public utility rebates or incentives unless the recipient certifies that the improvement or installation was completed by a properly licensed contractor and that required permits and inspections were obtained.

Assembly Bill 341 requires businesses that generate more than four cubic yards of commercial, solid waste per week arrange for recycling services by July 1, 2012.
Senate Bill 341 requires that construction vehicles with a gross vehicle weight rating of 14,000 pounds or more be equipped an automatic backup alarm audible from 200 feet under normal conditions.

Senate Bill 221 (Chapter 64, amends and repeals section 116.221 and adds and repeals section 116.224 of the Code of Civil Procedure) raises small claims court jurisdiction from $7,500 to $10,000.