HB 0471

CHAPTER 323

HB 471-FN-A – FINAL VERSION

AN ACT relative to workers’ compensation compliance in the construction sector and continually appropriating a special fund.

SPONSORS: Rep. Benn, Graf 9; Rep. Tahir, Hills 9; Sen. D'Allesandro, Dist 20

This bill requires that all contractors, including subcontractors and independent contractors, provide certification of their workers’ compensation coverage and compliance with all applicable workers’ compensation safety provisions before beginning work on state transportation or public works projects. This bill establishes a special fund which is repealed in 2011.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to workers’ compensation compliance in the construction sector and continually appropriating a special fund.

Be it Enacted by the Senate and House of Representatives in General Court convened:

323:1 Workers’ Compensation; Exclusion Limited. Amend RSA 281-A:18-a, I to read as follows:

I. Any corporation or limited liability company may elect to exclude up to 3 executive officers or members from the compulsive coverage requirements under this chapter; provided, that such exclusion shall not apply to any individual, regardless of status or title within a corporation or limited liability company, who is actively engaged in on-site work on any construction site within the state of New Hampshire.

323:2 New Section; State Transportation Projects; Certification of Current Workers’ Compensation Coverage Required. Amend RSA 228 by inserting after section 4-a the following new section:

I. Prior to any work being done by an individual contractor on any state transportation project carried out under this subdivision, such contractor, including all subcontractors and independent contractors, working on a highway, bridge, or other construction, reconstruction, alteration, or maintenance project funded by the department shall provide to the commissioner of transportation:

(a) A certificate of insurance of his or her current workers’ compensation coverage in New Hampshire for the classification of work to be completed on the project;

(b) A sworn statement that this coverage shall remain in effect for the duration of his or her anticipated work on the project;

(c) A completed work certificate, provided pursuant to RSA 281-A:4-b, that shall include the total number of employees anticipated to be employed by such contractor, subcontractor, or independent contractor on the project during the contract period, delineated by the National Council on Compensation Insurance (NCCI) classification code applicable to the scope of work to be performed;

(d) A copy of the contractor’s compliance with a current written safety program, if applicable, as filed with the commissioner of labor under RSA 281-A:64, II and proof of an existing joint loss management committee as required under RSA 281-A:64, III, if applicable; and

II. If any highway, bridge, or other construction contractor, subcontractor, or independent contractor who might otherwise claim an exclusion under RSA 281-A:18-a is directly performing the work on a project covered under this section, such contractor, subcontractor, or independent contractor shall comply with the provisions of this section.

III. The commissioner of labor may assess any contractor, subcontractor, or independent contractor who falsifies information or fails to comply with this section a civil penalty of up to $2,500 and in addition, such an employer shall be assessed a civil penalty of up to $100 per employee per day of noncompliance. Notwithstanding any other provision of law to the contrary, any person with control or responsibility over the decisions to disburse funds and salaries and who knowingly falsified information or failed to comply with this section shall be held personally liable for the payment of penalties under this section and such contractor, subcontractor, or independent contractor shall not be allowed to bid or work on state projects for up to 5 years. The state shall be entitled to recover from the violator all costs and fees directly associated with uncovering falsified information supplied under this section.

IV. There is hereby established a nonlapsing workers’ compensation fraud fund in the office of the state treasurer. All funds collected under this section shall be deposited in such fund and continually appropriated to the commissioner of labor to be used for investigations and compliance activities required under this section and related sections pertaining to labor and insurance law. Any amounts over $400,000 in the fund shall lapse to the general fund on June 30 of each year.

V. The commissioner of labor shall appoint as many individuals as necessary to carry out the department’s responsibilities under this section.

VI. On a quarterly basis, the commissioners of transportation and labor shall post electronically for public access and shall also circulate to all other public works construction or renovation awarding authorities of state government, including the college and university systems and the department of education office of building aid, a list of any highway, bridge, or other construction contractors, subcontractors, or independent contractors found to be in violation of this section, including the amount fined and the period of time such persons or entities shall not be allowed to bid or work on state projects.

323:3 New Paragraph; Major Projects. Amend RSA 21-I:80 by inserting after paragraph V the following new paragraph:

VI.(a) Prior to any work being done by an individual contractor on any major project under this section, such contractor, including all subcontractors and independent contractors, shall provide to the commissioner of administrative services:

(1) A certificate of insurance of his or her current workers’ compensation coverage in New Hampshire for the classification of work to be completed on the project;

(2) A sworn statement that this coverage shall remain in effect for the duration of his or her anticipated work on the project;

(3) A completed work certificate, provided pursuant to RSA 281-A:4-b, that shall include the total number of employees anticipated to be employed by such contractor, subcontractor, or independent contractor on the project during the contract period, delineated by the National Council on Compensation Insurance (NCCI) classification code applicable to the scope of work to be performed;

(4) A copy of the contractor’s compliance with a current written safety program, if applicable, as filed with the commissioner of labor under RSA 281-A.64, II and proof of an existing joint loss management committee as required under RSA 281 A:64, III, if applicable; and

(5) Any other information the commissioner of administrative services deems necessary.

(b) If any construction contractor, subcontractor, or independent contractor who might otherwise claim an exclusion under RSA 281-A:18-a is directly performing the work on a project covered under this section, such contractor, subcontractor, or independent contractor shall comply with the provisions of this section.

(c) The commissioner of labor may assess any contractor, subcontractor, or independent contractor who falsifies information or fails to comply with this section a civil penalty of up to $2,500 and in addition, such an employer shall be assessed a civil penalty of up to $100 per employee per day of noncompliance. Notwithstanding any other provision of law to the contrary, any person with control or responsibility over the decisions to disburse funds and salaries and who knowingly falsified information or failed to comply with this section shall be held personally liable for the payment of penalties under this section and such contractor, subcontractor, or independent contractor shall not be allowed to bid or work on state projects for up to 5 years. The state shall be entitled to recover from the violator all costs and fees directly associated with uncovering falsified information supplied under this section.

(d) All funds collected under this section shall be deposited into the nonlapsing workers’ compensation fraud fund established in RSA 228:4-b, IV dedicated to investigation and compliance activities required by this section and related sections pertaining to labor and insurance law.

(e) The commissioner of labor shall appoint as many individuals as necessary to carry out the department’s responsibilities under this paragraph.

(f) On a quarterly basis, the commissioners of administrative services and labor shall post electronically for public access and shall also circulate to all other public works construction or renovation awarding authorities of state government, including the college and university systems and the department of education office of building aid, a list of any construction contractors, subcontractors, or independent contractors found to be in violation of this section, including the amount fined and the period of time such persons or entities shall not be allowed to bid or work on state projects.

323:4 New Section; Work Certificate for Contractors Before Beginning Their Work on Public Projects. Amend RSA 281-A by inserting after section 4-a the following new section:

281-A:4-b Work Certificate for Contractors Before Beginning Their Work on Public Projects. The commissioner of labor shall provide a work certificate form to meet the requirements of the departments of transportation and administrative services, in accordance with RSA 228:4-b or RSA 21-I:80, VI, for contractors, subcontractors, and independent contractors to certify their compliance with RSA 281-A.

323:5 New Subparagraph; Workers’ Compensation Fraud Fund. Amend RSA 6:12, I by inserting after subparagraph (252) the following new subparagraph:

(253) Moneys deposited in the workers’ compensation fraud fund established in RSA 228:4-b, IV.

323:6 Report. The commissioner of the department of labor shall make a report relative to the effectiveness of the fund established in RSA 228:4-b, IV as inserted by section 2 of this act, together with any recommendations for legislation, to the speaker of the house of representatives, the president of the senate, and the governor on or before November 1, 2010.

323:7 Workers’ Compensation Fraud Fund. RSA 228:4-b, IV is repealed and reenacted to read as follows:

IV. All funds collected under this section shall be deposited into the general fund.

323:8 Workers’ Compensation Fund. RSA 21-I:80, VI(d) is repealed and reenacted to read as follows:

(d) All funds collected under this paragraph shall be deposited into the general fund.

323:9 Repeal. RSA 6:12, I (b)(253), relative to the workers’ compensation fraud fund, is repealed.