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Construction Law Update
November 7, 2006
Highlight Article
Releasing New Law Update - New Requirement to Take Effect January 1, 2007 Which Imposes New Requirements on All Roofing Contractors with Active Licenses
By Brent Reden
On May 26, 2006 Governor Arnold Schwarzenegger signed Assembly Bill 881 which amends Business and Professions Code section 7125 and contains new requirements for all actively licensed Roofing contractors with C-39 classification licenses. On January 1, 2007, actively licensed Roofing contractors with a C-39 classification must have one of the following on file with the California Contractors State License Board:
1. A valid Certification of Workers’ Compensation Insurance; or
2. A valid Certification of Self-Insurance
After January 1, 2007, one of the above must be on file at all times and is required for issuance, reinstatement, reactivation, renewal, or continued maintenance of a Roofing Contractors license. Assembly Bill 881 requires all Roofing contractors to carry workers compensation coverage after January 1, 2007, even if the Roofing contractor does not have any employees.
Failure to comply with Business and Professions Code section 7125 after January 1, 2007 will result in the suspension of a Roofing C-39 classification if it is the sole classification or will result in the removal of the Roofing C-39 classification from a license with multiple classifications. Pursuant to Business and Professions Code section 7125, no exemptions will be granted. Inactive Roofing contractors will not be required to comply with the new requirement so long as they remain on inactive status
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This article was prepared by Brent Reden. Mr. Reden is a partner for Kring & Chung, LLP. You can reach Mr. Reden at (949) 261-7700.
** The information contained herein is for informational purposes only and should not be relied upon in reaching a conclusion in a particular area. The legal principles discussed herein were accurate at the time this article was authored but are subject to change with time. Applicability of these same legal principles may differ substantially in individual situations. Please consult an attorney before making a decision in a particular area using only the information provided in this article.
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