HB 1597-FN – AS INTRODUCED
2008 SESSION
01/10
HOUSE BILL 1597-FN
AN ACT relative to workers’ compensation compliance.
SPONSORS: Rep. Hunt, Ches 7; Rep. Chandler, Carr 1
COMMITTEE: Labor, Industrial and Rehabilitative Services
This bill specifies that any person, regardless of status or title within a corporation or limited liability company, who is actively engaged in on-site work on any state-funded project in New Hampshire must show evidence of workers’ compensation coverage or evidence of a current health insurance and disability policy.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2126 01/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT relative to workers’ compensation compliance.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Workers’ Compensation; Exclusion. 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].
2 State Transportation Projects; Certification of Current Workers’ Compensation Coverage. Amend RSA 228:4-b, I-III to read as follows:
I. Prior to any work being done by [an individual contractor] any person on any state transportation project carried out under this subdivision, such [contractor] person, including all subcontractors and independent contractors and any person who is claiming an exclusion under RSA 281-A:18-a, I and who is actively engaged in on-site work, working on a highway, bridge, or other construction, reconstruction, alteration, or maintenance project funded within the capital budget 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 or evidence of a current health insurance and disability policy;
(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] person 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
(e) Any other information the commissioner of transportation deems necessary.
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] person 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] person 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.
3 Major State Projects; Workers’ Compensation Coverage. Amend RSA 21-I:80, VI (a)-(c) to read as follows:
VI.(a) Prior to any work being done by [an individual contractor] any person, including any person who is claiming an exclusion under RSA 281-A:18-a, I who is actively engaged in any on-site work, on any major project funded as a state capital budget project under this section, such [contractor, including all subcontractors and independent contractors,] person 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 or evidence of a current health insurance and disability policy;
(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] person 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] person 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] person 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.
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
08-2126
12/18/07
HB 1597-FN - FISCAL NOTE
AN ACT relative to workers’ compensation compliance.
FISCAL IMPACT:
The Department of Administrative Services states this bill may increase state expenditures by an indeterminable amount in FY 2008 and each year thereafter. The Department of Labor states this bill may have an indeterminable fiscal impact on state expenditures in FY 2008 and each year thereafter. The Insurance Department states this bill may have an indeterminable fiscal impact on state general fund revenue in FY 2008 and each year thereafter. The Department of Transportation states this bill may increase restricted revenue by an indeterminable amount in FY 2008 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Administrative Services, the Department of Labor, and the Department of Transportation state this bill specifies any person regardless of status or title within a corporation or limited liability company actively engaged in on-site work on any state-funded project in the State must show evidence of workers’ compensation coverage or evidence of a current health insurance and disability policy. The Department of Administrative Services states if the intent of the legislation is to apply only to parties working under the jurisdiction of the contractor, there would be no additional fiscal impact on the Department. However, if the legislation applies not only to contractors but others such as inspectors and consultants the Department would then be responsible for enforcing compliance. This would require all capital projects be staffed 100 percent of the time resulting in increased expenditures related to staffing (an additional 8 clerk of the works I and 7 clerk of the works II), benefits, in-state travel and equipment. The Department assumes a clerk of the works I would start at Labor Grade 22, step 3 and a clerk of the works II would start at Labor Grade 24, step 4.
FY 2009 |
FY 2010 |
FY 2011 |
FY 2012 | |
Clerk of the Works I (LG 22) |
$333,060 |
$356,304 |
$371,280 |
$390,156 |
Clerk of the Works II (LG 24) |
$332,514 |
$356,402 |
$371,963 |
$388,479 |
Benefits |
$321,472 |
$344,237 |
$358,986 |
$376,081 |
In-state Travel |
$97,500 |
$97,500 |
$97,500 |
$97,500 |
Equipment |
$7,500 |
$7,500 |
$7,500 |
$7,500 |
Total |
$1,092,046 |
$1,161,943 |
$1,207,229 |
$1,259,716 |
The Department of Labor indicates the fiscal impact on state expenditures is indeterminable in FY 2008 and each year thereafter. The Department is not able to determine if there will be expense savings to public projects as a result of this bill.
The Insurance Department states this bill may result in fewer workers compensation policies being sold and more disability and/or health insurance policies being sold. The Department is not able to estimate the numbers that may or may not be sold; however, a change in policy mix would impact tax revenue to the general fund.
The Department of Transportation states this bill will not impact the Department’s expenditures as it already compiles and documents workers compensation certification and has incorporated a process for subcontractor approval. The Department, however, indicates state restricted revenue may increase depending on the number of falsified information cases. The Department states all expenditures associated with the State uncovering falsified information will be 100 percent recovered from the violators.
This bill does not provide an appropriation or authorization for additional positions.