Requires the department of labor and industries to: (1) Conduct education and outreach to employers on workers' compensation requirements and premium responsibilities, including independent contractor issues; and

(2) Work with new employers on an individual basis and also establish mass education campaigns.

Requires a contractor to maintain and have available for inspection by the department of labor and industries a list of all direct subcontractors and a copy of their certificate of registration.

Gives the department of labor and industries and the employment security department a lien on retainage on public works projects.

Extends the expiration of the joint legislative task force on the underground economy to December 15, 2009, and modifies the composition and duties of the task force.

Prescribes penalties.