SB 291: Contractors: workers’ compensation insurance.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of contractors. Existing law authorizes the board to appoint committees and make rules and regulations, as specified.

Existing law generally requires, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, a 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 in the applicant’s or licensee’s business name, as specified. Existing law generally makes a violation of these provisions a misdemeanor. Existing law exempts from this requirement an applicant or licensee who has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified, and who does not hold a specified license issued by the board, including a C-8 license, as defined. Existing law repeals these provisions on January 1, 2028.

Existing law, commencing January 1, 2028, removes the above-specified exemptions, and instead exempts from the above-described filing requirement an applicant or licensee organized as a joint venture that has no employees, provided that they file a statement with the board before the issuance, reinstatement, reactivation, or continued maintenance of a license certifying that they do not employ any person, as specified.

Existing law requires the board, by no later than January 1, 2027, to establish a process and procedure to verify that applicants or licensees without an employee or employees are eligible for exemption from the workers’ compensation insurance requirement, and authorizes the process or procedure to include an audit, proof, or other means, to verify eligibility.

This bill would require that verification process or procedure to include an audit, proof, or other means to obtain evidence to verify eligibility for exemption from the workers’ compensation insurance requirement. The bill would also require the board to report its proposed verification process to the Legislature no later than January 1, 2027.

Existing law makes the filing of an exemption certificate for workers’ compensation insurance on file with the board that is false, or the employment of a person subject to coverage under the workers’ compensation laws after the filing of an exemption certificate without first filing a Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance in accordance with specified provisions or without maintaining coverage for that person, cause for disciplinary action.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 7, 2025Chaptered by Secretary of State. Chapter 455, Statutes of 2025.
2. October 7, 2025Approved by the Governor.
3. September 16, 2025Enrolled and presented to the Governor at 3 p.m.
4. September 9, 2025Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2740.) Ordered to engrossing and enrolling.
5. September 8, 2025In Senate. Concurrence in Assembly amendments pending.
6. September 8, 2025Read third time. Passed. (Ayes 79. Noes 0. Page 2990.) Ordered to the Senate.
7. September 4, 2025Ordered to third reading.
8. September 4, 2025Read third time and amended.
9. September 2, 2025Read second time. Ordered to third reading.
10. August 29, 2025From committee: Do pass. (Ayes 15. Noes 0.) (August 29).
11. August 20, 2025August 20 set for first hearing. Placed on APPR. suspense file.
12. July 16, 2025From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 17. Noes 0.) (July 16). Re-referred to Com. on APPR.