Upcoming Bills Affecting HVAC Contractors

The newsletter of the Institute of Heating & Air Conditioning Industries informs that the CSLB (Contractors State License Board) sponsored two bills that are going to impact HVAC contractors. It would result in mandatory worker’s compensation insurance and building permit violation fine increase. 

According to one of the bills, SB 216 Dodd (D-Napa) — Workers Compensation Insurance, Mandatory Coverage — the workers’ compensation insurance would become mandatory for all licensed C-20 contractors starting from January 1, 2023. By this bill, CSLB would be precluded from accepting certificates of exemption from workers’ compensation insurance from 3 active license classifications: C-8 Concrete, C-20 HVAC, and D-49 Tree Service. To sum it up, all the contractors (including those without employees) would be required to have Workers’ Compensation coverage and a certificate of Workers’ Compensation insurance noted by the CSLB by 2025. The bill is now active in the Assembly, as it was passed from the Senate Floor in January 2022. Number of contractor and labor organizations including Plumbing-Heating-Cooling Contractors of California and the American Subcontractors Association support this bill.    

The other bill, AB 1747 Quirk (D-Hayward) — Contractor Disciplinary Action and Fines — would increase the maximum fine for the violation of willful or deliberate disregard of any local or state law concerning required building permits by 6 times, which would make it $30000. This bill is also supported by numerous organizations, like American Subcontractors Association of California, California Building Officials, Western Electrical Contractors etc.