BILL NUMBER: AB 397	CHAPTERED
	BILL TEXT

	CHAPTER  546
	FILED WITH SECRETARY OF STATE  OCTOBER 7, 2011
	APPROVED BY GOVERNOR  OCTOBER 7, 2011
	PASSED THE SENATE  AUGUST 29, 2011
	PASSED THE ASSEMBLY  APRIL 14, 2011

INTRODUCED BY   Assembly Member Monning
   (Principal coauthor: Assembly Member Bill Berryhill)

                        FEBRUARY 14, 2011

   An act to add Section 7125.5 to the Business and Professions Code,
relating to workers' compensation insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 397, Monning. Workers' compensation insurance: contractors.
   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 require, at the time of renewal, an active
contractor licensee with an exemption for workers' compensation
insurance on file with the board to either recertify the licensee's
exemption or to provide a current and valid Certificate of Workers'
Compensation Insurance or Certificate of Self-Insurance. The bill
would also provide for retroactive license renewal, as specified, for
otherwise acceptable license renewal applications when the applicant
provides the required documentation within 30 days after
notification by the board of the renewal rejection.


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

  SECTION 1.  Section 7125.5 is added to the Business and Professions
Code, to read:
   7125.5.  (a) 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 either
recertify the licensee's exemption by completing a recertification
statement on the license renewal form, as provided by the board, or
shall provide a current and valid Certificate of Workers'
Compensation Insurance or Certificate of Self-Insurance, whichever is
applicable.
   (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.