Bill Text: CA AB2419 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Contractors.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Vetoed) 2010-09-30 - Vetoed by Governor. [AB2419 Detail]

Download: California-2009-AB2419-Introduced.html

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BILL NUMBER: AB 2419	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cook

                        FEBRUARY 19, 2010

   An act to add Section 7127 to the Business and Professions Code,
relating to contractors.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2419, as introduced, Cook. Contractors: workers' compensation
insurance coverage.
   Existing law requires private employers to secure the payment of
compensation by obtaining and maintaining workers' compensation
insurance or to self-insure as an individual employer or as one
employer in a group of employers. The Contractors' State License Law
requires every licensed contractor to have on file at all times with
the Contractors' State License Board a current and valid Certificate
of Workers' Compensation Insurance or Certification of
Self-Insurance, or a statement certifying that he or she has no
employees and is not required to obtain or maintain workers'
compensation insurance coverage.
   This bill would authorize the registrar of contractors to issue a
stop order to any unlicensed contractor who has failed to secure
workers' compensation insurance coverage for his or her employees.
The bill would make a failure to comply with the stop order a crime,
thereby imposing a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7127 is added to the Business and Professions
Code, to read:
   7127.  If an unlicensed contractor has failed to secure the
payment of compensation as required by Section 3700 of the Labor
Code, the registrar may, in addition to any other administrative
remedy, issue and serve on that person a stop order prohibiting the
use of employee labor. Failure of any employer, officer, or any
person having direction, management, or control of any place of
employment or of employees to observe a stop order issued and served
upon him or her pursuant to this section is a misdemeanor punishable
by imprisonment in the county jail not exceeding 60 days or by a fine
not exceeding ten thousand dollars ($10,000), or both.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.