BILL REQ. #: H-2952.1
State of Washington | 63rd Legislature | 2014 Regular Session |
Read first time 01/15/14. Referred to Committee on Labor & Workforce Development.
AN ACT Relating to contractor liability for industrial insurance premiums for not-for-profit nonemergency medicaid transportation brokers; and amending RCW 51.12.070.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 51.12.070 and 2004 c 243 s 2 are each amended to read
as follows:
The provisions of this title apply to all work done by contract;
the person, firm, or corporation who lets a contract for such work is
responsible primarily and directly for all premiums upon the work,
except as provided in subsection (2) of this section. The contractor
and any subcontractor are subject to the provisions of this title and
the person, firm, or corporation letting the contract is entitled to
collect from the contractor the full amount payable in premiums and the
contractor in turn is entitled to collect from the subcontractor his or
her proportionate amount of the payment.
(1) For the purposes of this section, a contractor registered under
chapter 18.27 RCW or licensed under chapter 19.28 RCW is not
responsible for any premiums upon the work of any subcontractor if:
(((1))) (a) The subcontractor is currently engaging in a business
which is registered under chapter 18.27 RCW or licensed under chapter
19.28 RCW;
(((2))) (b) The subcontractor has a principal place of business
which would be eligible for a business deduction for internal revenue
service tax purposes other than that furnished by the contractor for
which the business has contracted to furnish services;
(((3))) (c) The subcontractor maintains a separate set of books or
records that reflect all items of income and expenses of the business;
(((4))) (d) The subcontractor has contracted to perform:
(((a))) (i) The work of a contractor as defined in RCW 18.27.010;
or
(((b))) (ii) The work of installing wires or equipment to convey
electric current or installing apparatus to be operated by such current
as it pertains to the electrical industry as described in chapter 19.28
RCW; and
(((5))) (e) The subcontractor has an industrial insurance account
in good standing with the department or is a self-insurer. For the
purposes of this subsection (1)(e), a contractor may consider a
subcontractor's account to be in good standing if, within a year prior
to letting the contract or master service agreement, and at least once
a year thereafter, the contractor has verified with the department that
the account is in good standing and the contractor has not received
written notice from the department that the subcontractor's account
status has changed. Acceptable documentation of verification includes
a department document which includes an issued date or a dated printout
of information from the department's internet web site showing a
subcontractor's good standing. The department shall develop an
approach to provide contractors with verification of the date of
inquiries validating that the subcontractor's account is in good
standing.
It is unlawful for any county, city, or town to issue a
construction building permit to any person who has not submitted to the
department an estimate of payroll and paid premium thereon as provided
by chapter 51.16 RCW of this title or proof of qualification as a self-insurer.
(2) Nonemergency transportation brokers, as defined in WAC
182-546-5200 as it exists on the effective date of this section, that
operate as not-for-profit businesses are not liable for subcontractor
premiums, provided that the provisions of subsection (1)(e) of this
section are met at the time of contract.