TN HB1899 May Be Troublesome To Small Contractors

                               Nashville, TN (CompNewsNetwork) - Chapter 1041 of the Public Acts of 2008, which is scheduled to take effect December 31, 2009, specifies that a sole proprietor or partner engaged in the construction industry is not required to carry workers' compensation on themselves, if the proprietor or partner is doing work directly for the owner of the property, unless the proprietor or partner is working as an intermediate contractor or subcontractor. The public chapter requires the proprietor or partner to carry worker's compensation insurance on any subcontractor, employee or worker not otherwise covered by a workers' compensation policy. Present law authorizes the commissioner of labor and workforce development to designate a rate service organization to assist in gathering, compiling and reporting relevant workers' compensation insurance statistical information. Public Chapter 1041 revises the present law definition of "a person engaged in the construction industry" as any person or entity "assigned to the Contracting Group as designated by the rate service organization" as described above instead of as a person or entity "who submits a price or bid or offers, attempts, or undertakes to assume charge of a construction undertaking." The public chapter also removes the present law exemption from the workers' compensation insurance requirement for persons engaged in construction in Hancock and Hawkins counties.

This bill changes the effective date of Public Chapter 1041 from "December 31, 2009" to "July 1, 2012."
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