A county in California?s Central Valley is looking at requiring roofing contractors and pool builders to provide proof of workers? compensation insurance as a way to stamp out the underground economy.
The pilot program will be the first of its kind in the state, according to the Chico Enterprise Record, and closely resembles a pair of California Assembly bills targeting unlicensed contractors. One bill is currently on hold, while the other is up for a third and final vote in the Senate.
Butte County Supervisors on July 26 voted 3-1, with one member abstaining, to direct staff to develop a detailed plan for a pilot program to check whether a swimming pool or roofing contractor has workers? compensation insurance when applying for a building permit. The program will also identify a way to check the worksites of contractors who claim to be exempt from work comp requirements because they have no employees, according to the Enterprise Record.
The county will originally target only contractors who do roofing and swimming pool work to get a better understanding of the amount of staff and time needed to monitor the insurance status of these permit applicants and analyze what works and what doesn?t in the pilot program, the Enterprise Record reported.
David Fogt, director of enforcement for the Contractors State Licensing Board, said he is assigning someone from his staff to do outreach in Butte County because the board wants to see the pilot project succeed.
Supervisors will discuss the pilot program again at the board?s next scheduled meeting on Aug. 9.
California lawmakers are also targeting contractors who don?t have workers? compensation insurance with legislation that would require proof of insurance when renewing licenses with the state or local governments.
AB 397 by Assemblyman Bill Monning, D-Carmel, would require contractors to show proof of comp coverage or exempt status when renewing licenses before the State Contractor Licensing Board. The bill is sailing through the Legislature, and is up for a third and final reading in the Senate.
The Senate Business, professions and Economic Development Committee passed the bill 8-0 on June 6, and the Assembly passed the measure 60-0 on April 14.
In may, Assemblyman Bill Berryhill, R-Ceres, pulled AB 465 from consideration this year, but he is hoping for adoption next year in the second year of the two-year legislative session. Berryhill?s bill would require landscaping and gardening businesses to show proof of workers? compensation coverage when applying for local business licenses.
Evan Oneto, a staff member for Berryhill, said in May the measure was pulled because it was ?not ready for prime time.?
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Source: WorkComp central and Chico Enterprise Record
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Source: http://hcrgtech.wordpress.com/2011/08/12/county-using-comp-insurance-to-target-illegal-contractors/
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