I move that House Bill 1025 be amended to read as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1.
IC 22-3-2-14
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 14. (a) As used in this
section, "person" does not mean an owner who contracts for
performance of work on the owner's owner-occupied residential
property.
(a) (b) The state, any political division thereof, any municipal
corporation, any corporation, limited liability company, partnership, or
person, contracting for the performance of any work exceeding one
thousand dollars ($1,000) in value by a contractor subject to the
compensation provisions of
IC 22-3-2
through
IC 22-3-6
, without
exacting from such contractor a certificate from the worker's
compensation board showing that such contractor has complied with
section 5 of this chapter,
IC 22-3-5-1
, and
IC 22-3-5-2
, shall be liable
to the same extent as the contractor for compensation, physician's fees,
hospital fees, nurse's charges, and burial expenses on account of the
injury or death of any employee of such contractor, due to an accident
arising out of and in the course of the performance of the work covered
by such contract.
(b) (c) Any contractor who shall sublet any contract for the
performance of any work, to a subcontractor subject to the
compensation provisions of
IC 22-3-2
through
IC 22-3-6
, without
obtaining a certificate from the worker's compensation board showing
that such subcontractor has complied with section 5 of this chapter,
IC 22-3-5-1
, and
IC 22-3-5-2
, shall be liable to the same extent as such
subcontractor for the payment of compensation, physician's fees,
hospital fees, nurse's charges, and burial expenses on account of the
injury or death of any employee of such subcontractor due to an
accident arising out of and in the course of the performance of the work
covered by such subcontract.
(c) (d) The state, any political division thereof, any municipal
corporation, any corporation, limited liability company, partnership,
person, or contractor paying compensation, physician's fees, hospital
fees, nurse's charges, or burial expenses under this section may recover
the amount paid or to be paid from any person who, independently of
such provisions, would have been liable for the payment thereof and
may, in addition, recover the litigation expenses and attorney's fees
incurred in the action before the worker's compensation board as well
as the litigation expenses and attorney's fees incurred in an action to
collect the compensation, medical expenses, and burial expenses.
(d) (e) Every claim filed with the worker's compensation board
under this section shall be instituted against all parties liable for
payment. The worker's compensation board, in an award under
subsection (a), shall fix the order in which said parties shall be
exhausted, beginning with the immediate employer, and, in an award
under subsection (b), shall determine whether the subcontractor has
the financial ability to pay the compensation and medical expenses
when due and, if not, shall order the contractor to pay the
compensation and medical expenses.
SOURCE: IC 22-3-2-14.5; (99)IN1662.1.2. -->
SECTION 2.
IC 22-3-2-14.5
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 1999]: Sec. 14.5. (a) As used in
this section, "independent contractor" refers to a person described in
IC 22-3-6-1
(b)(7).
(b) As used in this section, "person" means an individual, a
proprietorship, a partnership, a joint venture, a firm, an association, a
corporation, or other legal entity.
(c) An independent contractor who does not make an election
under
IC 22-3-6-1
(b)(4) or
IC 22-3-6-1
(b)(5) is not subject to the
compensation provisions of
IC 22-3-2
through
IC 22-3-6
and must file
a statement and obtain a validated affidavit of exemption under this
section.
(d) An independent contractor shall file with the worker's
compensation board, in the form prescribed by the worker's
compensation board, a statement providing the following information:
(1) The independent contractor's name, trade name, address, and
telephone number.
(2) The independent contractor's federal identification number
or Social Security number.
(e) An independent contractor shall pay a filing fee in the amount
of five dollars ($5) twenty dollars ($20) with the statement required
in subsection (d). The fees collected under this subsection shall be
deposited as follows:
(1) Fifty percent (50%) in the worker's compensation
supplemental administrative fund.
(2) Fifty percent (50%) into a special account in the state
general fund known as the independent contractor information
account. Money in the independent contractor information
account is annually appropriated to the department of state revenue for its use
in carrying out the purposes of
IC 6-3-7-5.
(f) The worker's compensation board shall keep each statement received under this section on file
and on request may verify that a validated affidavit is on file.
(g) The affidavit of exemption required by this section must be on a form prescribed and provided
by the worker's compensation board. An affidavit issued under this section is valid for one (1) year.
(h) An affidavit of exemption must certify the following information:
(1) That the independent contractor has worker's compensation coverage for the
independent contractor's employees in accordance with
IC 22-3-2
through
IC 22-3-6.
(2) That the independent contractor desires to be exempt from being able to recover under
the worker's compensation policy or self-insurance of a person for whom the independent
contractor will perform work only as an independent contractor.
(i) An affidavit of exemption must be filed with the worker's compensation board. The board shall
validate the affidavit by stamping the affidavit with the date of receipt and returning a validated copy to the
person executing the affidavit. A validated affidavit becomes effective as of midnight on the date received.
seven (7) business days after the date of receipt by the worker's compensation board. The board shall
maintain the original affidavits filed and validated by the board.
(j) Not more than thirty (30) days after the worker's compensation board receives an independent
contractor's statement, validated affidavit, and filing fee required by this section, the worker's compensation
board shall provide the department of state revenue with a copy of the statement and validated affidavit.
(k) A person who contracts for services of another person not covered by
IC 22-3-2
through
IC 22-3-6
to perform work must secure a copy of a validated affidavit issued under this section from the
person hired. A person may not require a person who has provided a validated affidavit to have worker's
compensation coverage. The worker's compensation insurance carrier of a person who contracts with an
independent contractor shall accept a validated affidavit in the same manner as a certificate of insurance.
(l) An affidavit validated under this section is binding on and holds harmless from all claims:
(1) a person who contracts with an independent contractor after receiving a copy of the
validated affidavit; and
(2) the worker's compensation insurance carrier of the person who contracts with the
independent contractor.
The independent contractor may not collect compensation under
IC 22-3-2
through
IC 22-3-6
for an injury
from a person or the person's worker's compensation carrier to whom the independent contractor has
furnished a validated affidavit.
(m) A contractor who knowingly and intentionally causes or assists employees, including
temporary employees, to file an affidavit of exemption commits a Class D felony."
Renumber all SECTIONS consecutively.
(Reference is to HB1025 as printed January 25, 2001.)