Contractors: workers' compensation insurance: mandatory coverage.

(1) Existing law, the Contractors State License Law, provides for the licensure and regulation of contractors by the Contractors State License Board within the Department of Consumer Affairs. Existing law requires every licensed contractor, or applicant for licensure, to have on file at all times with the board a current and valid Certificate of Workers' Compensation Insurance or Certification of Self-Insurance, or to file a certificate of exemption certifying that they have no employees and are not required to obtain or maintain workers' compensation insurance. Under existing law, the failure to file a proper certification constitutes cause for disciplinary action, and the failure of a qualifier for a license, as defined, to ensure compliance with these provisions, as specified, is a crime. Existing law requires a roofing contractor holding a C-39 license to obtain and maintain workers' compensation insurance even if that contractor has no employees, and requires the suspension of any license that is active and has had the C-39 roofing classification removed, if the licensee is found by the registrar of contractors to have employees and to lack a valid Certificate of Workers' Compensation Insurance or Certification of Self-Insurance. This bill, until January 1, 2026, would require concrete contractors holding a C-8 license, warm-air heating, ventilation and air-conditioning (HVAC) contractors holding a C-20 license, asbestos abatement contractors holding a C-22 license, or tree service contractors holding a D-49 license to also obtain and maintain workers' compensation insurance even if that contractor has no employees. After July 1, 2023, and if the registrar finds the licensee has employees and lacks the proper valid certification, the bill would require the suspension of any license that is active and has a C-8, C-20, C-22, or D-49 classification removed. The bill would provide that a joint venture, as specified, that files a certificate of exemption is not required to obtain workers' compensation insurance. As of January 1, 2026, the bill would require all licensed contractors or applicants for licensure, regardless of classification, to obtain and maintain workers' compensation insurance unless they are organized as a joint venture and file a certificate of exemption. (2) Because this bill would expand the provisions for which qualifiers for a license have to ensure compliance, thus expanding the scope of an existing crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.