Bill > SB291

This bill amends California's contractor licensing laws to strengthen requirements and penalties related to workers' compensation insurance. Specifically, the bill requires the Contractors State License Board to establish a verification process by January 1, 2027, to audit and confirm that contractors claiming exemption from workers' compensation insurance truly have no employees. The bill introduces significant civil penalties for violations, including a minimum $10,000 penalty for sole owner licensees and $20,000 for partnerships, corporations, and other business entities found to be employing workers without maintaining proper workers' compensation coverage. Additionally, the bill prohibits the board from renewing or reinstating a license until the contractor provides a valid workers' compensation insurance certificate. The legislation also mandates that the board's annual report to the Legislature include specific details about disciplinary actions related to workers' compensation insurance exemption violations. These changes aim to ensure greater accountability and compliance among contractors regarding workers' compensation insurance, protecting both workers and businesses by preventing fraudulent exemption claims and ensuring proper insurance coverage.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB291