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.