SB 93 — Workers' Compensation Insurance Coverage Verification

SecondNOTE: Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.

26-0738.01This Joshbill Schultzhas x5486been SENATEprepared BILLfor 26-093the SENATEsignatures SPONSORSHIPof Sullivan,Benavidez,Coleman,Cutter,Exum,GonzalesJ.,Jodeh,Kipp,Marchman,Mullica,the Wallaceappropriate HOUSElegislative SPONSORSHIPofficers Mauro and Lindsay,the Bacon,Governor. Boesenecker, Carter, Clifford, English, Froelich, Lieder, Nguyen d n e 6 E a 0 U U , O i 9 H a a Senate Committees House Committees R M Business, Labor, & Technology Business Affairs & Labor r Appropriations 3 g A BILL FOR AN ACT d 6 E a 0 C ONCERNING ENSURING COMPLIANCE WITH WORKERS ' S R ,2 O d 7 H 2 a COMPENSATION INSURANCE COVERAGE REQUIREMENTS .

eTo Mdetermine nwhether ethe BillGovernor Summaryhas Asigned (Note:the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

ThisSENATE summaryBILL applies26-093 toBY thisSENATOR(S) billSullivan, asBenavidez,Cutter,Exum,GonzalesJ., introducedJodeh, andKipp, doesMarchman, notreflectanyamendmentsthatmaybesubsequentlyadopted.IfthisbillMullica, dWallace, dColeman; passes third reading in the house of introduction, a bill summary that e 2 applies to the reengrossed version of this bill will be available at E a 0 A U , http://leg.colorado.gov.) N n 2 S a r e A The bill prohibits the state, a county, a municipality, a city and r county,adistrict,orotherpoliticalsubdivisionofthestate(governmental 3 entity) from issuing or renewing a building permit, construction permit, or contractor's license unless the applicant has first filed with the n governmental entity's licensing authority or permitting agency a signed d declarationverifyingthattheapplicant, the generalcontractor,andevery e 2 E R 2 A n 8 E 2 l Shading denotes HOUSE amendment.

Doublealso underliningREPRESENTATIVE(S) denotesMauro SENATEand amendment.Lindsay, Bacon, Boesenecker, Carter, Clifford, English, Froelich, Lieder, Nguyen.

SCONCERNING eENSURING pCOMPLIANCE CapitalWITH lettersWORKERS or'COMPENSATION boldINSURANCE &COVERAGE italicREQUIREMENTS numbers. indicate new material to be added to existing law.n A Dashes through the words or numbers indicate deletions from existing law.

m A subcontractor at any tier either maintains valid workers' compensation insurance coverage or has rejected such coverage.

An applicant shall provide proof of the workers' compensation insurance coverage or proof of rejection of coverage through filing specified documents.

Prior to commencing any work under a building or construction permit, a general contractor or permit holder shall ensure that every subcontractor at any tier and any person performing work under the permit has provided proof of workers' compensation insurance coverage or proof of rejection of coverage.

If at any time the governmental entity's licensing authority or permitting agency finds that a violation of the bill has occurred, the governmental entity's licensing authority or permitting agency shall revoke or suspend any building permit, construction permit, or contractor's license issued to that contractor.

Thedirectorofthedivisionofworkers'compensationisauthorized to adopt rules to implement the bill, including procedures for electronic verification of coverage, reporting requirements, and coordination with licensing authorities and permitting agencies.

(1) ASA S USED IN THIS SECTION,UNLESSSECTION , UNLESS THE CONTEXT OTHERWISE REQUIRES:REQUIRES :

(a) "APPLICANT "MEANS"MEANSAPERSONAPPLYINGFORAPERMITWITHTHE A PERSON APPLYING FOR A PERMIT WITH THE PERMITTING AGENCY OF A GOVERNMENTAL ENTITY .

(b)________ "DECLARATIONCapital "letters MEANSAFORMDESIGNATEDBYTHEDIVISIONor ANDAVAILABLEbold ONTHE& DIVISIONitalic 'SWEBSITETHATENSURESANYPERSONnumbers ,indicate INCLUDINGANYSUBCONTRACTORSnew ,WORKINGUNDERAPERMITMAINTAINSmaterial WORKERSadded 'COMPENSATIONto INSURANCEexisting COVERAGElaw; IN COMPLIANCE WITH THE REQUIREMENTS OF ARTICLES 40 TO 47 OF THIS TITLE 8 FOR THE DURATION OF THE WORK PERFORMED UNDER THE PERMIT .

-2-dashes 093through (c)words (I)or OVERNMENTALnumbers ENTITYindicate "MEANSdeletions THEfrom STATE,Aexisting COUNTYlaw ,and Asuch MUNICIPALITY,material Ais CITYnot ANDpart COUNTYof ,the ORact. OTHER POLITICAL SUBDIVISION OF THE STAT.

(II)(b) "GOVERNMENTAL"DECLARATION ENTITY " DOESMEANS NOTA INCLUDEFORM DESIGNATED BY THE DIVISION AND AVAILABLE ON THE DIVISION'S WEBSITE THAT ENSURES ANY PERSON , INCLUDING ANY SUBCONTRACTORS ,WORKING UNDER A SPECIALPERMIT DISTRICT.MAINTAINS WORKERS 'COMPENSATIONINSURANCECOVERAGEINCOMPLIANCEWITHTHE REQUIREMENTSOFARTICLES 40TO 47OFTHISTITLE 8FORTHEDURATIONOF THE WORK PERFORMED UNDER THE PERMIT .

7(c) (d)(I) "PERMIT"GVERNMENTAL ENTITY "MEANS ATHE BUILDINGSTATE PERMIT,A ORCOUNTY CONSTRUCTION,A PERMITFORAPROJECTWITHATOTALCONSTRUCTIONCOSTOFMORETHANMUNICIPALITY,A ONECITY MILLIONAND DOLLARS,EXCEPTCOUNTY FORAPERMIT,OR ISSUEDBYTHEOTHER DIVISIONOFPOLITICAL PROFESSIONSSUBDIVISION ANDOF OCCUPATIONS IN THE DEPARTMENTSTATE. OF REGULATORY AGENCIES.

(2)(II) PRIOR"G TOOVERNMENTAL COMMENCINGENTITY ANY" WORKDOES UNDERNOT AINCLUDE PERMIT , AN APPLICANT SHALL FILE A SIGNEDSPECIAL DECLARATIONDISTRICT. UNDER PENALTY OF PERJURY WITH THE PERMITTING AGENCY ENSURING THAT ANY PERSON , INCLUDING ANY SUBCONTRACTORS , WORKING UNDER THE PERMIT MAINTAINS WORKERS ' COMPENSATION INSURANCE COVERAGE IN COMPLIANCE WITH THE REQUIREMENTS OF ARTICLES 40 TO 47 OF THIS TITLE8FORTHEDURATIONOFTHEWORKPERFORMEDUNDERTHEPERMIT .

(3)(d) "PERMIT"MEANSABUILDINGPERMITORCONSTRUCTIONPERMIT FOR A PERSONPROJECT MAYWITH FILEA TOTAL CONSTRUCTION COST OF MORE THAN ONE MILLION DOLLARS , EXCEPT FOR A COMPLAINTPERMIT WITHISSUED BY THE DIVISION ALLEGINGOF APROFESSIONS PERSONSAND WORKERSOCCUPATIONS 'COMPENSATIONIN INSURANCETHE COVERAGEDEPARTMENT ISNOTINCOMPLIANCEWITHTHEREQUIREMENTSOFARTICLESOF 40TOREGULATORY 47OFAGENCIES THIS. TITL8.

SECTION2.(2) PRIOR TO COMMENCING ANY WORK UNDER A PERMIT , AN APPLICANTSHALLFILEASIGNEDDECLARATIONUNDERPENALTYOFPERJURY WITH THE PERMITTING AGENCY ENSURING THAT ANY PERSON ,INCLUDING ANYSUBCONTRACTORS ,WORKINGUNDERTHEPERMITMAINTAINSWORKERS ' COMPENSATION INSURANCE COVERAGE IN COMPLIANCE WITH THE REQUIREMENTSOFARTICLES 40TO 47OFTHISTITLE 8FORTHEDURATIONOF THE WORK PERFORMED UNDER THE PERMIT .

Applicability.Thisactappliestoconductoccurring(3) onAPERSON orMAY afterFILE theA effectiveCOMPLAINT dateWITH ofTHE thisDIVISIONALLEGING act,A includingPERSON determinationsS ofWORKERS permit'COMPENSATION orINSURANCE licenseCOVERAGE applicationsIS pendingNOT onIN theCOMPLIANCE effectiveWITHTHEREQUIREMENTSOFARTICLES date.40TO 47 OFTHISTITLE 8.

SECTION 2.

Applicability.

This act applies to conduct occurring on or after the effective date of this act, including determinations of permit or license applications pending on the effective date.

The general assembly finds, -3- 093 determines, and declares that this act is necessary for the immediate preservationofthepublicpeace,health,orsafetyorforappropriationsforpreservation of the public peace, health, or safety or for appropriations for PAGE 2-SENATE BILL 26-093 the support and maintenance of the departments of the state and state institutions.

-4-____________________________ 093____________________________ James Rashad Coleman, Sr.

Julie McCluskie PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________ ____________________________ Esther van Mourik Vanessa Reilly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 3-SENATE BILL 26-093