Limited Liability Companies are now able to apply for contractor licenses in California, in compliance with Senate Bill 392 which was signed into law in 2010. LLC officers interested in obtaining a contractor license must fill out a form specific to LLCs to initiate the process. That form is now available on the CSLB website. This is one of the new laws that go into effect this weekend.

Starting January 1, 2012, Assembly Bill 397 requires a contractor who certifies that he/she has no employees and is exempt from carrying a workers’ compensation policy to submit a new certification, or proof of workers’ compensation insurance coverage or self-insurance, each time the license is up for renewal. C-39 Roofing contractors must still purchase workers’ compensation insurance coverage even if they certify they have no employees, as required by Business and Professions Code section 7125.

Assembly Bill 878 requires workers’ compensation insurers to report to CSLB if a licensee’s policy is cancelled as the result of a premium audit or investigation, or a misrepresentation that results in harm to the insurer without reimbursement being made. This legislation also states that disregard and violation of workers’ compensation insurance laws are cause for discipline by the CSLB Registrar.

Other laws passed this year may also impact contractors and their business operations. Laws with effective dates other than January 1, 2012 are noted in bold italics.