7125.  (a) The board shall require as a condition precedent to the
issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee have on file
a Certificate of Workers' Compensation Insurance or Certification of
Self-Insurance.  A Certificate of Workers' Compensation Insurance
shall be issued and filed by one or more insurers duly licensed to
write workers' compensation insurance in this state. A Certification
of Self-Insurance shall be issued and filed by the Director of
Industrial Relations.  If reciprocity conditions exist, as defined in
Section 3600.5 of the Labor Code, the registrar shall require the
information deemed necessary to assure compliance with this section.

   (b) This section does not apply to an applicant or licensee who
has no employees provided that he or she files a statement with the
board on a form prescribed by the registrar that he or she does not
employ any person in any manner so as to become subject to the
workers' compensation laws of California.  The filing of a false
statement constitutes a cause for disciplinary action.
   (c) No certificate of workers' compensation insurance,
certification of self-insurance, or exemption-certificate is required
of a holder of a license that has been inactivated on the official
records of the board during the period the license is inactive.
   (d) The insurer, including the State Compensation Insurance Fund,
shall report to the registrar any cancellation of the policy within
10 days after the cancellation.



7125.1.  (a) The registrar shall accept a certificate required by
Section 7125 as of the effective date shown on the certificate, if
the certificate is received by the registrar within 90 days after
that date, and shall reinstate the license to which the certificate
pertains, if otherwise eligible, retroactive to the effective date of
the certificate.
   (b) Notwithstanding subdivision (a), the registrar shall accept
the certificate as of the effective date shown on the certificate,
even if the certificate is not received by the registrar within 90
days after that date, upon a showing by the licensee, on a form
acceptable to the registrar, that the failure to have a certificate
on file was due to circumstances beyond the control of the licensee.
The registrar shall reinstate the license to which the certificate
pertains, if otherwise eligible, retroactive to the effective date of
the certificate.



7125.2.  (a) The failure of a licensee required pursuant to this
chapter to maintain workers' compensation insurance shall result in
the automatic suspension of the license by operation of law. The
registrar shall notify any licensee who fails to maintain workers'
compensation that his or her license shall be automatically suspended
30 days from the date of the notice. Within 30 days of a suspension
pursuant to this section, the registrar shall provide the licensee
with an additional notice that informs the licensee of the suspension
date, the cause for suspension, and reinstatement procedures.
Reinstatement shall be made at any time following the suspension by
showing proof of compliance as specified in Sections 7125 and 7125.1.

   (b) With respect to an unlicensed individual acting in the
capacity of a contractor who is not otherwise exempted from the
provisions of this chapter, a citation may be issued by the registrar
under Section 7028.7 for failure to comply with this section.  An
opportunity for a hearing as specified in Section 7028.10 will be
granted if requested within 90 days of citation.




7126.  Any licensee or agent or officer thereof, who violates, or
omits to comply with, any of the provisions of this article is guilty
of a misdemeanor.