SB 1032

Existing law requires a person engaged in certain businesses to register with the Labor Commissioner, as provided. This bill would require a staffing agency to register, as prescribed, with the commissioner before conducting any business in this state and annually thereafter. The bill would prohibit the commissioner from registering or renewing a registration, unless the staffing agency satisfies certain conditions, including submitting an application that is certified under penalty of perjury to the commissioner for registration or renewal of registration and providing the commissioner proof of a current workers compensation policy in effect for all employees, as provided. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. If the commissioner, at any time, finds that the staffing agency does not have the current worker’s compensation insurance policy in effect for all employees, this bill would require the commissioner to deny, suspend, or revoke the registration, after a hearing, and notify the Director of Industrial Relations of that matter. The bill would also require the commissioner to post a specified list of registered staffing agencies on the internet website of the Department of Industrial Relations. The bill would prohibit a business from using the services of a staffing agency without verifying that the staffing agency is registered pursuant to these provisions. The bill would authorize a registered staffing agency to bring an action against an unregistered staffing agency or a business that uses the services of a staffing agency without verifying that the staffing agency is registered, as provided, and would authorize the court to enter into an order to enjoin the defendant from engaging in any business as a staffing agency without a registration or using the services of a staffing agency without verifying that the staffing agency is registered. The bill would authorize the commissioner to promulgate regulations and rules necessary to carry out these provisions. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.