SECTIONS 7125-7127 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 7125-7127

7125. (a) Except as provided in subdivision (b), the board shall
require as a condition precedent to the issuance, reinstatement,
reactivation, renewal, or continued maintenance of a license, that
the applicant or licensee have on file at all times a current and
valid Certificate of Workers' Compensation Insurance or Certification
of Self-Insurance. A Certificate of Workers' Compensation Insurance
shall be issued and filed, electronically or otherwise, by one or
more insurers duly licensed to write workers' compensation insurance
in this state. A Certification of Self-Insurance shall be issued and
filed by the Director of Industrial Relations. If reciprocity
conditions exist, as defined in Section 3600.5 of the Labor Code, the
registrar shall require the information deemed necessary to ensure
compliance with this section.
(b) This section does not apply to an applicant or licensee who
meets both of the following conditions:
(1) Has no employees provided that he or she files a statement
with the board on a form prescribed by the registrar prior to the
issuance, reinstatement, reactivation, or continued maintenance of a
license, certifying that he or she does not employ any person in any
manner so as to become subject to the workers' compensation laws of
California or is not otherwise required to provide for workers'
compensation insurance coverage under California law.
(2) Does not hold a C-39 license, as defined in Section 832.39 of
Title 16 of the California Code of Regulations.
(c) No Certificate of Workers' Compensation Insurance,
Certification of Self-Insurance, or exemption-certificate is required
of a holder of a license that has been inactivated on the official
records of the board during the period the license is inactive.
(d) The insurer, including the State Compensation Insurance Fund,
shall report to the registrar the following information for any
policy required under this section: name, license number, policy
number, dates that coverage is scheduled to commence and lapse, and
cancellation date if applicable.
(e) (1) For any license that, on January 1, 2011, is active and
includes a C-39 classification in addition to any other
classification, the registrar shall, in lieu of the automatic license
suspension otherwise required under this article, remove the C-39
classification from the license unless a valid Certificate of Workers'
Compensation Insurance or Certification of Self-Insurance is
received by the registrar.
(2) For any licensee whose license, after January 1, 2011, is
active and has had the C-39 classification removed as provided in
paragraph (1), and who is found by the registrar to have employees
and to lack a valid Certificate of Workers' Compensation Insurance or
Certification of Self-Insurance, that license shall be automatically
suspended as required under this article.
(f) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.

7125. (a) The board shall require as a condition precedent to the
issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee have on file
at all times a current and valid Certificate of Workers'
Compensation Insurance or Certification of Self-Insurance. A
Certificate of Workers' Compensation Insurance shall be issued and
filed, electronically or otherwise, by one or more insurers duly
licensed to write workers' compensation insurance in this state. A
Certification of Self-Insurance shall be issued and filed by the
Director of Industrial Relations. If reciprocity conditions exist, as
defined in Section 3600.5 of the Labor Code, the registrar shall
require the information deemed necessary to ensure compliance with
this section.
(b) This section does not apply to an applicant or licensee who
has no employees provided that he or she files a statement with the
board on a form prescribed by the registrar prior to the issuance,
reinstatement, reactivation, or continued maintenance of a license,
certifying that he or she does not employ any person in any manner so
as to become subject to the workers' compensation laws of California
or is not otherwise required to provide for workers' compensation
insurance coverage under California law.
(c) No Certificate of Workers' Compensation Insurance,
Certification of Self-Insurance, or exemption-certificate is required
of a holder of a license that has been inactivated on the official
records of the board during the period the license is inactive.
(d) The insurer, including the State Compensation Insurance Fund,
shall report to the registrar the following information for any
policy required under this section: name, license number, policy
number, dates that coverage is scheduled to commence and lapse, and
cancellation date, if applicable.
(e) This section shall become operative on January 1, 2013.

7125.1. (a) The registrar shall accept a certificate required by
Section 7125 as of the effective date shown on the certificate, if
the certificate is received by the registrar within 90 days after
that date, and shall reinstate the license to which the certificate
pertains, if otherwise eligible, retroactive to the effective date of
the certificate.
(b) Notwithstanding subdivision (a), the registrar shall accept
the certificate as of the effective date shown on the certificate,
even if the certificate is not received by the registrar within 90
days after that date, upon a showing by the licensee, on a form
acceptable to the registrar, that the failure to have a certificate
on file was due to circumstances beyond the control of the licensee.
The registrar shall reinstate the license to which the certificate
pertains, if otherwise eligible, retroactive to the effective date of
the certificate.

7125.2. The failure of a licensee to obtain or maintain workers'
compensation insurance coverage, if required under this chapter,
shall result in the automatic suspension of the license by operation
of law in accordance with the provisions of this section, but this
suspension shall not affect, alter, or limit the status of the
licensee as an employer for purposes of Section 3716 of the Labor
Code.
(a) The license suspension imposed by this section is effective
upon the earlier of either of the following:
(1) On the date that the relevant workers' compensation insurance
coverage lapses.
(2) On the date that workers' compensation coverage is required to
be obtained.
(b) A licensee who is subject to suspension under paragraph (1) of
subdivision (a) shall be provided a notice by the registrar that
includes all of the following:
(1) The reason for the license suspension and the effective date.
(2) A statement informing the licensee that a pending suspension
will be posted to the license record for not more than 45 days prior
to the posting of any license suspension periods required under this
article.
(3) The procedures required to reinstate the license.
(c) Reinstatement may be made at any time following the suspension
by showing proof of compliance as specified in Sections 7125 and
7125.1.
(d) In addition, with respect to an unlicensed individual acting
in the capacity of a contractor who is not otherwise exempted from
the provisions of this chapter, a citation may be issued by the
registrar under Section 7028.7 for failure to comply with this
article and to maintain workers' compensation insurance. An
opportunity for a hearing as specified in Section 7028.10 will be
granted if requested within 15 working days after service of the
citation.

7125.3. A contractor shall be considered duly licensed during all
periods in which the registrar is required to accept the certificate
prescribed by Section 7125, provided the licensee has otherwise
complied with the provisions of this chapter.

7125.4. (a) The filing of the exemption certificate prescribed by
this article 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 the provisions of this article, or the employment of
a person subject to coverage under the workers' compensation laws
without maintaining coverage for that person, constitutes cause for
disciplinary action.
(b) Any qualifier for a license who, under Section 7068.1 is
responsible for assuring that a licensee complies with the provisions
of this chapter, is also guilty of a misdemeanor for committing or
failing to prevent the commission of any of the acts that are cause
for disciplinary action under this section.

7126. Any licensee or agent or officer thereof, who violates, or
omits to comply with, any of the provisions of this article is guilty
of a misdemeanor.

7127. (a) (1) If an employer subject to licensure under this
chapter has failed to secure the payment of compensation as required
by Section 3700 of the Labor Code, and whether that employer is or is
not licensed under this chapter, the registrar may, in addition to
any other administrative remedy, issue and serve on that employer a
stop order prohibiting the use of employee labor. The stop order
shall become effective immediately upon service. An employee affected
by the work stoppage shall be paid by the employer for his or her
time lost, not exceeding 10 days, pending compliance by the employer.
(2) Failure of any employer, officer, or any person having
direction, management, or control of any place of employment or of
employees to observe a stop order issued and served upon him or her
pursuant to this section is a misdemeanor punishable by imprisonment
in the county jail not exceeding 60 days or by a fine not exceeding
ten thousand dollars ($10,000), or both.
(b) An employer who is subject to this section may protest the
stop order by making and filing with the registrar a written request
for a hearing within 20 days after service of the stop order. The
hearing shall be held within five days from the date of filing the
request. The registrar shall notify the employer of the time and
place of the hearing by mail. At the conclusion of the hearing, the
stop order shall be immediately affirmed or dismissed, and within 24
hours thereafter the registrar shall issue and serve on all parties
to the hearing by registered or certified mail a written notice of
findings and findings. A writ of mandate may be taken from the
findings to the appropriate superior court. Such writ must be taken
within 45 days after the mailing of the notice of findings and
findings.