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SB 291

Special License Plates; establish an "America First" specialty license plate

2025-2026 Regular Session Introduced by Jason Anavitarte and 24 co-sponsors

SB 291 mandates stricter workers' compensation insurance rules for contractors, enhancing employee protections and imposing hefty penalties for non-compliance.

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Bill Summary · SB 291

Summary of SB 291: Contractors: Workers' Compensation Insurance

Bill Number: SB 291
Introduced: February 6, 2025
Status: Chaptered by Secretary of State. Chapter 455, Statutes of 2025.
Author: Senator Grayson
Vote Requirement: Majority
Fiscal Committee: Yes

Purpose and Intent

SB 291 aims to amend existing laws regarding workers' compensation insurance requirements for contractors in California. The bill seeks to enhance the verification process for exemptions from these requirements and impose stricter penalties for non-compliance, thereby ensuring that contractors maintain appropriate insurance coverage to protect their employees.

Key Provisions

  1. Verification Process:

    • The Contractors State License Board (CSLB) is required to establish a process by January 1, 2027, to verify that applicants or licensees without employees are eligible for exemption from the workers' compensation insurance requirement. This process may include audits and other means to obtain evidence of eligibility.

  2. Exemptions:

    • Current exemptions for applicants or licensees without employees will be modified. Starting January 1, 2028, only joint ventures without employees will be exempt from filing requirements, provided they certify their status with the CSLB.

  3. Disciplinary Actions:

    • The bill introduces a minimum civil penalty of $10,000 per violation for sole owner licensees found to have employed workers without maintaining required workers' compensation coverage.
    • The CSLB will be prohibited from renewing or reinstating licenses until the applicant provides a valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance.

  4. Annual Reporting:

    • The CSLB is mandated to report annually to the Legislature by October 1, detailing the number of disciplinary actions taken, specifically those related to violations of workers' compensation insurance requirements.

  5. Conforming Changes:

    • The bill incorporates additional changes to Section 7099.2 of the Business and Professions Code, contingent upon the enactment of SB 779.

Impact

  • Contractors: The bill directly affects licensed contractors, particularly sole owners, by imposing stricter compliance requirements and penalties for failing to maintain workers' compensation insurance.
  • Employees: The legislation aims to enhance protections for workers by ensuring that contractors are adequately insured, thereby reducing the risk of financial harm to employees in the event of workplace injuries.
  • CSLB Operations: The CSLB will need to implement new verification processes and enhance reporting mechanisms, which may require additional resources and administrative adjustments.

Timeline

  • January 1, 2027: Deadline for CSLB to establish the verification process.
  • January 1, 2028: New exemptions come into effect, limiting who can qualify for exemption from filing requirements.

SB 291 represents a significant step towards ensuring that contractors in California maintain necessary insurance coverage, thereby enhancing worker protections and accountability within the industry.

Compiled from official sources — confirm details with the bill’s official record.

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