Workers' Compensation/Contractors Bill Passes Appropriations Committee

The Assembly Appropriations Committee heard and passed AB 397 by Assemblymen Monning and Berryhill this past week.

AB 397, sponsored by the Contractors State License Board (CSLB), is intended to provide the Board with an additional tool to fight against non-compliant contractors. Under current law, a licensee can claim an exemption from workers’ compensation due to the fact they have no employees at the time of obtaining their original license and never have to re-visit the issue.  Some 60% of contractors licensed by the CSLB claim an exemption from workers’ compensation.

This bill would require, at the time of renewal, all active licensees of the CSLB who claim an exemption for workers' compensation insurance on file with the CSLB to recertify the exemption by completing a recertification statement under penalty of perjury or to provide a current and valid Certificate of Workers' Compensation Insurance or Certificate of Self-Insurance, whichever is applicable.  AB 397 would prohibit license renewal unless the licensee meets the above requirements.

AB 397 passed the committee with a vote of 16-0.  It will now go to the Assembly Floor.

To view the entire text of the legislation, please click here.

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