SB-1254 Contractors: workers’ compensation insurance coverage
In California, anyone who contracts to perform work on a project that is valued at $500 or more for labor and materials must hold a current, valid license from the Contractor's State License Board
http://www.cslb.ca.gov/Consumers/Building_Officials/
http://www.cslb.ca.gov/Resources/GuidesAndPublications/BuildingOfficialsGuide.pdf
http://www.cslb.ca.gov/About_Us/Library/Laws/
http://www.cslb.ca.gov/About_Us/Library/Guides_And_Publications/#REF
Senate Bill No. 1254
CHAPTER 643
An act to add Section 7127 to the Business and Professions Code, and to amend Section 830.3 of the Penal Code, relating to contractors.
SB 1254, Leno. Contractors: workers’ compensation insurance coverage.
Existing law requires private employers to secure the payment of compensation by obtaining and maintaining workers’ compensation insurance or to self-insure as an individual employer or as one employer in a group of employers.
The Contractors’ State License Law requires every licensed contractor to have on file at all times with the Contractors’ State License Board a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance, or a statement certifying that he or she has no employees and is not required to obtain or maintain workers’ compensation insurance coverage.
This bill would authorize the registrar of contractors to issue a stop order, effective immediately upon service, to any licensed or unlicensed contractor who as an employer has failed to secure workers’ compensation insurance coverage for his or her employees.
The bill would make a failure to comply with the stop order a crime, thereby imposing a state-mandated local program.
The bill would set forth specified procedures for the payment of employees during a work stoppage subject to a stop order, as specified, and for an employer to request a hearing to protest a stop order.
Upon that request, the bill would require the registrar of contractors to hold a hearing to affirm or dismiss the stop order and issue and serve on all parties to the hearing a written notice of findings and those findings. The bill would authorize a writ of mandate to be taken from the findings to the appropriate superior court, as specified.
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200920100SB1254
Owner-Builder Exemption (B&P 7044)
- Who is considered to be an owner-builder?An owner-builder is any individual or group of individuals who own the property or building on which they plan to construct, alter, repair, improve, or remodel a building or structure.
Also, a tenant may be considered an owner-builder (case-by-case). - Is an owner-builder required to have a CSLB license?An owner-builder does not need to have a CSLB license, but there are limitations.
A license is not required ifThe owner-builder does the work himself or herself or through his or her own employees, with wages as their sole compensation and the structure(s) is/are not intended for sale;
or
The owner-builder contracts with properly licensed subcontractors. This exemption applies to the construction of a single-family residential structure and limits the number of structures intended or offered for sale to four or fewer in a calendar year.
The number of structures is unlimited if the owner-builder contracts with a General Building (B) contractor. - Is a homeowner required to get a CSLB license if he/she wants to improve his/her home
A homeowner improving his or her principal place of residence does not need to have a CSLB license if all of the following exist:The work is performed prior to sale;
The homeowner resides in the residence for the 12 months prior to completion of the work;
and - The homeowner has not taken advantage of this exemption on more than two structures during any three-year period.
- Does the owner-builder exemption apply to an individual whobuilds homes for resale (speculation homes), and are there any limitations?
Yes, the owner-builder exemption would apply to an individual who builds homes
for resale under any of the following conditions:- Are there any trades that property owners are prohibited from performing themselves?
Yes, property owners are prohibited from performing well-drilling work covered under the Well Drilling (C-57) contractor classification.
Licensed tradesmen are hired to perform all work on the project (provided no more than four structures per calendar year are intended for resale);
A licensed general contractor is hired to perform and/or subcontract the completion of all work on the project (In this case, there is no restriction on the number of structures completed per calendar year.)
orThe owner-builder performs the work, all or in part, and resides in the completed structure for one year prior to resale. (This applies to not more than two structures in a three-year period.)
