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CA SB291

Bill

Status

Passed

10/7/2025

Primary Sponsor

Tim Grayson

Click for details

Origin

Senate

2025-2026 Regular Session

AI Summary

  • Establishes minimum civil penalties of $10,000 per violation for sole owner contractor licensees and $20,000 per violation for partnerships, corporations, LLCs, or tribal businesses that employ workers without maintaining workers' compensation coverage, with subsequent violations capped at $30,000 per occurrence

  • Requires the Contractors State License Board to establish a verification process by January 1, 2027, including audits or other evidence-gathering methods, to confirm that contractors claiming exemption from workers' compensation insurance requirements truly have no employees

  • Prohibits the board from renewing or reinstating a license for any contractor found to have falsely filed a workers' compensation exemption certificate until they provide valid proof of workers' compensation insurance or self-insurance

  • Mandates the board's annual legislative report specifically include the number of disciplinary actions taken for workers' compensation exemption certificate violations

  • Beginning July 1, 2026, sets minimum civil penalties for general contractor violations at $500-$8,000 and $1,500-$30,000 for more serious offenses, with inflation adjustments permitted every five years

Legislative Description

Contractors: workers’ compensation insurance.

Last Action

Chaptered by Secretary of State. Chapter 455, Statutes of 2025.

10/7/2025

Committee Referrals

Appropriations7/16/2025
Insurance6/24/2025
Business and Professions6/5/2025
Appropriations4/30/2025
Judiciary4/21/2025
Business, Professions and Economic Development2/19/2025
Rules2/6/2025

Full Bill Text

No bill text available