Assembly Member Jordan Cunningham, 35th District
Background
Contractor licensees are required to carry adequate workers’ compensation insurance for the accurate number of employees they employ and submit to the Contractors State License Board (“CSLB”) either an exemption or Certificate of Self Insurance. Workers' compensation insurance is required for issuance of an active license, reactivation of an inactive license, and for the maintenance of an actively renewed license, unless the licensee does not employ anyone in a manner that is subject to California workers' compensation laws.
Workers' compensation coverage must be continuous. Failure to maintain workers' compensation insurance coverage will result in the license being suspended. If the licensee does not employ anyone in a manner that is subject to California workers' compensation laws, he/she is required to submit an Exemption from Workers' Compensation form to CSLB. Also, workers' compensation insurance is not required for expired or inactive licenses.
Failure of a licensed contractor to obtain or maintain workers' compensation insurance coverage, if required under this chapter, shall result in the automatic suspension of the license by operation of law. The suspension shall be effective on the earlier of the date that the workers' compensation insurance coverage lapses or the date that workers' compensation coverage is required to be obtained.
Problem Being Addressed
The CSLB allows for a 30-day grace period before they suspend a license. However, when the CSLB system experiences backlogs (end of the year spikes, furloughs, staff reductions, etc.), California licenses will be suspended despite the CSLB being in possession of the application prior to their deadline. Unfortunately, the CSLB may take up to 5-6 weeks to review and process a renewal application for a workers’ compensation certificate causing an applicant to have their license to operate “suspended” forcing them to cease their operations and causing unnecessary harm to their ability to secure prospective clients for future projects.
Assembly Bill 996
CSLB Website Transparency
AB 996 seeks to enhance the CSLB’s website to provide both consumers and contractors a more detailed updates and progress of thee licensee’s renewal application.
Specifically, by allowing contractors to use the license check search function online to verify that their certificate has been received; pending review; and to see what the average elapsed time for the board to process a certificate will provide confidence and assurance for consumers and licensee alike.
Summary
This measure merely creates transparency and accountability to the CSLB’s website. It requires information that is already be collected by the board’s staff and requires that they post it online to avoid confusion and curiosity by consumers and contractors alike as to if a licensee’s certificate is being processed or not.
Support
Sacramento Regional Builders Exchange
Opposition
None on file
Staff Contact
Taylor Melody – 319-2035