CSSB 303(JUD): "An Act relating to a subcontractor's, contractor's, and project owner's liability for workers' compensation, to workers' compensation for independent contractors without employees, and excluding certain persons from liability for securing the payment of workers' compensation benefits to employees; and providing for an effective date."
00 CS FOR SENATE BILL NO. 303(JUD) 01 "An Act relating to a subcontractor's, contractor's, and project owner's liability for 02 workers' compensation, to workers' compensation for independent contractors without 03 employees, and excluding certain persons from liability for securing the payment of 04 workers' compensation benefits to employees; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 23.30.045(a) is amended to read: 07 (a) An employer is liable for and shall secure the payment to employees of the 08 compensation payable under AS 23.30.041, 23.30.050, 23.30.095, 23.30.145, and 09 23.30.180 - 23.30.215. If the employer is a subcontractor [AND FAILS TO SECURE 10 THE PAYMENT OF COMPENSATION TO ITS EMPLOYEES], the contractor is 11 liable for and shall secure the payment of the compensation to employees of the 12 subcontractor unless the subcontractor secures the payment [. IF THE 13 EMPLOYER IS A CONTRACTOR AND FAILS TO SECURE THE PAYMENT OF 14 COMPENSATION TO ITS EMPLOYEES OR THE EMPLOYEES OF A
01 SUBCONTRACTOR, THE PROJECT OWNER IS LIABLE FOR AND SHALL 02 SECURE THE PAYMENT OF THE COMPENSATION TO EMPLOYEES OF THE 03 CONTRACTOR AND EMPLOYEES OF A SUBCONTRACTOR, AS 04 APPLICABLE]. 05 * Sec. 2. AS 23.30.045(f)(1) is amended to read: 06 (1) "contractor" means a person who undertakes by contract 07 performance of certain work for another [BUT DOES NOT INCLUDE A VENDOR 08 WHOSE PRIMARY BUSINESS IS THE SALE OR LEASING OF TOOLS, 09 EQUIPMENT, OTHER GOODS, OR PROPERTY]; 10 * Sec. 3. AS 23.30.045 is amended by adding new subsections to read: 11 (g) A subcontractor who is hired by a contractor as an independent contractor 12 and who has no employees during the term of the contract is liable for and shall secure 13 the payment of compensation payable under AS 23.30.041, 23.30.050, 23.30.095, 14 23.30.145, and 23.30.180 - 23.30.215 that provides coverage for the subcontractor and 15 shall produce a certificate of workers' compensation insurance coverage for the 16 project. 17 (h) If a subcontractor fails to secure the payment required under (a) or (g) of 18 this section and the contractor becomes liable for an additional premium because of 19 the subcontractor's failure to secure payment, the subcontractor is liable to the 20 contractor for the amount of the additional premium and associated penalties. 21 * Sec. 4. AS 23.30.055 is amended to read: 22 Sec. 23.30.055. Exclusiveness of liability. The liability of an employer 23 prescribed in AS 23.30.045 is exclusive and in place of all other liability of the 24 employer and any fellow employee to the employee, the employee's legal 25 representative, husband or wife, parents, dependents, next of kin, and anyone 26 otherwise entitled to recover damages from the employer or fellow employee at law or 27 in admiralty on account of the injury or death. The liability of the employer is 28 exclusive even if the employee's claim is barred under AS 23.30.022. However, if an 29 employer fails to secure payment of compensation as required by this chapter, an 30 injured employee or the employee's legal representative in case death results from the 31 injury may elect to claim compensation under this chapter, or to maintain an action
01 against the employer at law or in admiralty for damages on account of the injury or 02 death. In that action, the defendant may not plead as a defense that the injury was 03 caused by the negligence of a fellow servant, or that the employee assumed the risk of 04 the employment, or that the injury was due to the contributory negligence of the 05 employee. [IN THIS SECTION, "EMPLOYER" INCLUDES, IN ADDITION TO 06 THE MEANING GIVEN IN AS 23.30.395, A PERSON WHO, UNDER 07 AS 23.30.045(a), IS LIABLE FOR OR POTENTIALLY LIABLE FOR SECURING 08 PAYMENT OF COMPENSATION.] 09 * Sec. 5. AS 23.30.045(f)(2) is repealed. 10 * Sec. 6. This Act takes effect January 1, 2011.