House Bill No. 252

Introduced By molnar, prouse, tash, sliter, bankhead, beaudry, wells, arnott, orr, jore, holland, devaney, mcgee, curtiss, keenan, bitney



A Bill for an Act entitled: An Act generally revising the laws governing contractors and independent contractors; REPEALING CERTAIN CONTRACTOR REGISTRATION REQUIREMENTS; eliminating bonding requirements for contractors; ELIMINATING INVESTIGATORY, ENFORCEMENT, and NOTICE AND APPEAL PROCEDURES RELATING TO CONTRACTOR REGISTRATION; PROVIDING FOR A PENALTY OF UP TO $500 FOR CERTAIN VIOLATIONS OF THE CONSTRUCTION CONTRACTOR REGISTRATION LAWS; REQUIRING THAT ANY PENALTY COLLECTED BE DEPOSITED IN THE UNINSURED EMPLOYERS' FUND; DECREASING THE FEE FOR THE ISSUANCE OF THE INITIAL 2-YEAR CERTIFICATE TO A MAXIMUM OF $70 AND THE FEE FOR THE RENEWAL OR REINSTATEMENT OF A CERTIFICATE TO A MAXIMUM OF $70; PROVIDING AN EXEMPTION FOR FIRE SUPPRESSION OR PROTECTION LICENSEES, FOR CONTRACTORS IN THE LOGGING INDUSTRY WHO BUILD FOREST ACCESS ROADS, FOR LICENSED WATER WELL CONTRACTORS, FOR ENROLLED TRIBAL MEMBERS OR TRIBALLY OWNED BUSINESSES, FOR CERTAIN PROPERTY OWNERS, FOR PROJECTS COSTING LESS THAN $2,500, AND FOR INDEPENDENT CONTRACTORS WHO HAVE NO EMPLOYEES; PROVIDING THAT AN INDEPENDENT CONTRACTOR EXEMPTION REMAINS IN EFFECT FOR 3 YEARS; PROVIDING FOR A $25 FEE FOR THE INITIAL EXEMPTION APPLICATION AND FOR EACH SUBSEQUENT RENEWAL; PROVIDING AN APPROPRIATION; amending sections 39-9-101, 39-9-102, 39-9-201, 39-9-204, 39-9-206, 39-9-207, 39-9-211, 39-9-301, 39-9-303, 39-9-401, 39-71-120, and 39-71-401, MCA; repealing sections 39-3-701, 39-3-702, 39-3-703, 39-3-705, 39-3-706, 39-9-202, 39-9-203, 39-9-302, 39-9-402, 39-9-403, 39-9-404, 39-9-405, 39-9-406, 39-9-407, 39-9-408, 39-9-409, and 39-9-410, MCA; and providing an effective date.



WHEREAS, the contractor registration program affects an industry in Montana that has a high number of accidents, resulting in workers' compensation rates that are higher than other industries' and creating a situation that often results in noncompliance with the requirements of the Workers' Compensation Act and the Unemployment Insurance Law; and

WHEREAS, the contractor registration program provides needed structure to the construction industry by providing a means to distinguish, prior to an accident, those persons who qualify as independent contractors and those employers who are required to provide workers' compensation coverage for their employees; and

WHEREAS, the contractor registration law protects a contractor from the liabilities for workers' compensation and unemployment insurance obligations that exist from contracting with a contractor who is not in compliance with those laws by removing those liabilities when a contractor contracts with a registered contractor.



Be it enacted by the Legislature of the State of Montana:



Section 1.  Section 39-9-101, MCA, is amended to read:

"39-9-101.   Purpose. It is the purpose of this chapter to ensure that all construction contractors are competing fairly and in compliance with state laws."



Section 2.  Section 39-9-102, MCA, is amended to read:

"39-9-102.   Definitions. As used in this chapter, the following definitions apply:

(1)  "Contractor Construction contractor" means a person, firm, or corporation that:

(a)  in the pursuit of an independent business, offers to undertake, undertakes, or submits a bid to construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish for another a building, highway, road, railroad, excavation, or other structure, project, development, or improvement attached to real estate, including the installation of carpeting or other floor covering, the erection of scaffolding or other structures or works, or the installation or repair of roofing or siding; or

(b)  in order to do work similar to that described in subsection (1)(a) upon the construction contractor's property, employs members of more than one trade on a single job or under a single building permit, except as otherwise provided.

(2)  "Department" means the department of labor and industry.

(3)   "General contractor" means a contractor whose business operations require the use of more than two unrelated building trades or crafts that the contractor intends to supervise or perform in whole or in part.

(4)  "Specialty contractor" means a contractor whose operations do not fall within the definition of general contractor.

(5)  "Verification" means the receipt and duplication by a political subdivision of a contractor registration card that is current on its face."



Section 3.  Section 39-9-201, MCA, is amended to read:

"39-9-201.   Registration required -- prohibited acts -- criminal penalty application. (1) On or before July 1, 1996, each Each construction contractor shall register with the department.

(2)  It is a misdemeanor for a contractor to:

(a)  advertise, offer to perform work, submit a bid, or perform work as a contractor:

(i)  without being registered as required by this chapter; or

(ii) when the contractor's registration is suspended;

(b)  use a false or expired registration number in purchasing or offering to purchase an advertisement for which a contractor registration number is required; or

(c) transfer a valid registration to an unregistered contractor to work under a registration issued to another contractor.

(3)  The department may cause the criminal proceedings for a misdemeanor action under this chapter to be initiated for prosecution in the lowest court of concurrent jurisdiction in the county where the infraction occurs An applicant for registration as a construction contractor shall submit an application under oath on a form to be provided by the department that must include the following information:

(a) the applicant's social security number;

(b) proof of compliance with workers' compensation laws;

(c) the I.R.S. employer identification number, if any; and

(d)  the name and address of:

(i) each partner if the applicant is a firm or partnership;

(ii) the owner if the applicant is an individual proprietorship;

(iii) the corporate officers and registered agent if the applicant is a corporation; or

(iv) the manager of a manager-managed limited liability company or the members of a member-managed limited liability company and the registered agent if the applicant is a limited liability company."



Section 4.  Section 39-9-204, MCA, is amended to read:

"39-9-204.   Certificate of registration -- issuance -- duration -- renewal -- suspension. (1) The department shall issue to the applicant a certificate of registration upon compliance with the registration requirements of this chapter.

(2)  If the department approves an application, it shall issue a certificate of registration to the applicant. The department shall place the expiration date on the certificate. Except as provided in subsection (3), the The certificate is valid until the earliest date of:

(a)  1 year for 2 years;

(b)  the date the bond expires; or

(c)  the date the workers' compensation or unemployment insurance expires or any applicable exemption terminates.

(3)  The certificate issued under this section to an independent contractor is invalid on the date the contractor hires employees unless the contractor provides proof to the department of workers' compensation coverage for those employees.

(4)  A contractor may supply a short-term bond or insurance policy to bring its registration period to the full 1 year.

(5)  If a contractor's surety bond or other security has an unsatisfied judgment against it or it is canceled, the contractor's registration is automatically suspended on the effective date of the impairment or cancellation. The department shall give notice of the suspension to the contractor."



Section 5.  Section 39-9-206, MCA, is amended to read:

"39-9-206.   Fees -- education program. (1) The department shall charge fees for:

(a)  issuance, renewal, and reinstatement of certificates of registration; and

(b)  changes of name, address, or business structure.

(2)  The department shall set the fees by administrative rule. The fees shall cover the full cost of issuing certificates, filing papers and notices, and administering and enforcing this chapter. The costs include reproduction, travel, per diem, and administrative and legal support costs.

(3)  The fees charged in subsection (1)(a) may not exceed $80:

(a) $70 for the initial registration certificate; or

(b) $70 for the renewal or reinstatement of a registration certificate.

(4)  The fees collected under this section must be deposited in the state special revenue account to the credit of the department for the administration and enforcement of this chapter.

(5)  The department shall establish, cooperatively with representatives of the building industry, an industry and consumer information program, funded with 15% of the fees, to educate the building industry about the registration program and to educate the public regarding the hiring of building construction contractors.

(6)  The fee for a joint application for a certificate of registration and an independent contractor exemption may not exceed the fee charged for a certificate of registration."



Section 6.  Section 39-9-207, MCA, is amended to read:

"39-9-207.   Registration prerequisite to suit or lien claim Contractor registration -- limiting liability. (1) A person engaged in the business or acting in the capacity of a contractor may not bring or maintain an action in any court of this state for the collection of compensation for the performance of any work or for breach of contract for which registration is required under this chapter without alleging and proving that the contractor was a registered contractor and held a current and valid certificate of registration at the time the contractor entered the contract for the performance of work.

(2)  For the purposes of this section, the court may not find a contractor in compliance with the registration requirements of this chapter unless:

(a)  the department has on file the information required by 39-9-202; and

(b)  the contractor has a current bond or other security as required by 39-9-203.

(3)  In determining whether a contractor is in compliance with the registration requirements of this chapter, the court shall consider the length of time during which the contractor did not hold a valid certificate of registration.

(4)  A contractor may not bring or maintain a lien claim under Title 71, chapter 3, part 5, unless the contractor is registered at the time of entering into a contract.

(5)  A person contractor engaging the services of another who, pursuant to an oral or written contract, engages a construction contractor who is registered under this chapter on the date of the contract is not liable as an employer for workers' compensation coverage under 39-71-405 for workers' compensation and, for unemployment insurance coverage, or for wages and fringe benefits for the other contractor or for any employee of the other contractor:

(1) the registered construction contractor;

(2) the employees of the registered construction contractor; or

(3) any subsequent subcontractor or the employees of any subsequent subcontractor engaged to fulfill a part of or all of the obligations of the oral or written contract of the registered construction contractor listed in subsection (1) if the contractor verifies with the department that the other contractor with whom the contractor is contracting for services is registered as provided under this chapter."



Section 7.  Section 39-9-211, MCA, is amended to read:

"39-9-211.   Exemptions. This chapter does not apply:

(1)  to an authorized representative of the United States government, the state of Montana, or any incorporated municipality, county, alternative form of local government, irrigation district, reclamation district, or other municipal or political corporation or subdivision of this state;

(2)  to an officer of a court acting within the scope of office;

(3)  to a public utility operating under the regulations of the public service commission or to a rural cooperative utility operating under Title 35, chapter 18, in construction, maintenance, or development work incidental to its own business;

(4)  to the repair or operation incidental to the discovery or production of oil or gas or incidental to the drilling, testing, abandoning, or other operation of an oil or gas well or a surface or underground mine or mineral deposit when performed by an owner or lessee;

(5)  to the sale or installation of finished products, materials, or articles of merchandise that are not actually fabricated into and do not become a permanent fixed part of a structure;

(6)  to the construction, alteration, improvement, or repair carried on within the limits and boundaries of a site or reservation under the exclusive legal jurisdiction of the federal government;

(7)  to a person who only furnished materials, supplies, or equipment without fabricating them into or consuming them in the performance of the work of the construction contractor;

(8)  to work or operation on one undertaking or project considered of a casual, minor, or inconsequential nature, by one or more contracts, the aggregate contract price of which, for labor and materials and all other items, is less than $500 $2,500 a job. The exemption prescribed in this subsection does not apply when the work or construction is only a part of a larger or major operation, whether undertaken by the same or a different construction contractor, or in which a division of the operation is made into contracts of amounts of less than $500 $2,500 a job for the purpose of evasion of this chapter or otherwise. The exemption prescribed in this subsection does not apply to a person who advertises or puts out any sign or card or other device that might indicate to the public that the person is a contractor or is qualified to engage in the business of a contractor.

(9)  except when work is performed by a registered contractor, to a construction or operation incidental to the construction or repair: farmer or rancher while engaged in a farming, dairying, agriculture, viticulture, horticulture, or stock or poultry operation;

(a)(10)  of irrigation and drainage ditches of to an irrigation district or reclamation district;

(b)  of a farming, dairying, agriculture, viticulture, horticulture, or stock or poultry operation; or

(c)(11) to an operation related to clearing or other work upon land in rural districts for fire prevention purposes;

(10)(12) to an owner who contracts for a project with work to be performed by a registered construction contractor, but this exemption does not apply to an owner who is otherwise covered by this chapter who constructs a residence on the owner's property with the intention and for the purpose of promptly selling the improved property;

(11)(13) to a person an owner working on the person's owner's property, whether occupied by the person owner or not, and a person working on the person's residence, whether owned by the person or not, but this exemption does not apply to a person an owner who is otherwise covered by this chapter who constructs an improvement on the person's owner's property with the intention and for the purpose of promptly selling the improved property, unless the owner has continuously occupied the property as the owner's primary residence for at least the last 12 months;

(12)(14) to owners of commercial properties who use their own employees to do maintenance, repair, and alteration work in or upon their own properties;

(13)(15) to a licensed an architect, or civil or professional engineer, or professional land surveyor, licensed in Montana and acting solely in a professional capacity;

(14)(16) to an electrician or plumber, licensed in Montana, operating within the scope of the license;

(15)(17) to a contract security company, licensed under Title 37, chapter 60, operating within the scope of the license; or

(16)(18) to a person who engages in the activities regulated as an employee of a registered construction contractor with wages as the sole compensation or as an employee with wages as the sole compensation;

(19) to a person or entity licensed under Title 50, chapter 39, to sell, install, or service fire suppression or fire protection equipment;

(20) to a water well contractor licensed under Title 37, chapter 43, performing the work of a water well contractor;

(21) to an enrolled tribal member or an association, business, corporation, or other entity, at least 51% of which is owned by an enrolled tribal member or members and whose business is conducted solely within the exterior boundaries of an Indian reservation;

(22) to a contractor engaged in the logging industry who builds forest access roads for the purpose of harvesting and transporting logs from forest to mill;

(23) to a person working on the person's own residence, if the residence is owned by a person other than the resident; or

(24) to an independent contractor who has no employees. However, an independent contractor may voluntarily elect to register under this chapter."



Section 8.  Section 39-9-301, MCA, is amended to read:

"39-9-301.   Business practices -- advertising -- penalty. (1) Except as provided in 39-9-205, a person who has registered under one name as provided in this chapter may not engage in the business or act in the capacity of a construction contractor under any other name unless that name also is registered under this chapter.

(2)  Except for telephone books, all advertising, contracts, correspondence, cards, signs, posters, papers, and documents that show a contractor's name or address must show the contractor's name and address as registered under this chapter.

(3)  (a) The alphabetized listing of contractors appearing in the advertising section of directories, excluding telephone books, and all advertising must show the contractor's current registration number. However, signs on motor vehicles and on-premises signs do not constitute advertising under this section.

(b)  All materials used to directly solicit business from retail customers who are not businesses must show a contractor's current registration number. A contractor may not use a false or expired registration number in purchasing or offering to purchase an advertisement. Advertising by radio or television is not subject to this subsection.

(4)  A contractor may not advertise that the contractor is bonded because of the bond required to be filed provided in 39-9-203.

(5)(2)  A construction contractor may not falsify a registration number and use it in connection with a solicitation or identification as a construction contractor. An individual construction contractor, partner, associate, agent, salesperson, solicitor, officer, or employee of a construction contractor shall use a true name and address at all times while engaged in the business or capacity of a construction contractor or in activities related to a construction contractor.

(6)(3)  (a) The finding of a violation of this section by the department at a hearing held in accordance with the Montana Administrative Procedure Act subjects the person who commits the violation to a penalty of not more than $5,000, as determined by the department. The required hearing may be held by telephone or by videoconference. A penalty collected under this section must be deposited in the state special revenue account to the credit of the department for administration and enforcement of this chapter.

(b)  Penalties under this section do not apply to a violation that is determined to be an inadvertent error."



Section 9.  Section 39-9-303, MCA, is amended to read:

"39-9-303.   Department to compile and update list of registered construction contractors -- availability -- fee. (1) The department shall compile a list of all construction contractors registered under this chapter and update the list at least bimonthly. The list is public information and must be available to the public upon request for a reasonable fee.

(2)  The department shall inform a person, firm, or corporation whether a construction contractor is registered. The department shall provide the information without charge, except for a reasonable fee for any copies made."



Section 10.  Section 39-9-401, MCA, is amended to read:

"39-9-401.   Violation -- infraction -- penalty -- disposition. (1)(1)  It is a violation of this chapter and an infraction for any construction contractor to:

(a)(a)  advertise, offer to perform work, submit a bid, or perform work as a construction contractor without being registered as required by this chapter;

(b)(b)  advertise, offer to perform work, submit a bid, or perform work as a construction contractor when the construction contractor's registration is suspended; or

(c)(c)  transfer a valid registration to an unregistered construction contractor or allow an unregistered construction contractor to work under a registration issued to another construction contractor.

(2)  Each day that a contractor works without being registered as required by this chapter, works while the contractor's registration is suspended, or works under a registration issued to another contractor is a separate infraction. Each worksite at which a contractor works without being registered as required by this chapter, works while the contractor's registration is suspended, or works under a registration issued to another contractor is a separate infraction.

(2) (a) A determination by the department of a violation of this section subjects the person who commits the violation to a penalty of up to $500, as determined by the department. A person who has been determined to have violated this section may request that a hearing be held in accordance with the Montana Administrative Procedure Act. The hearing may be held by telephone or video conference. An appeal of the hearing decision must be made in the same manner as prescribed in 39-51-2403 and 39-51-2404.

(b) A penalty under this section does not apply to a violation that is determined to be an inadvertent error.

(c) A penalty collected under this section must be deposited in the uninsured employers' fund established in 39-71-502."



Section 11.  Section 39-71-120, MCA, is amended to read:

"39-71-120.   Independent contractor defined. (1) An "independent contractor" is one who renders service in the course of an occupation and:

(a)  has been and will continue to be free from control or direction over the performance of the services, both under the contract and in fact; and

(b)  is engaged in an independently established trade, occupation, profession, or business; and

(c)  has received an exemption granted under 39-71-401(3).

(2)  An individual performing services for remuneration is considered to be an employee under this chapter unless the requirements of subsection (1) are met unless the requirements of subsection (1) are met. "



Section 12.  Section 39-71-401, MCA, is amended to read:

"39-71-401.   Employments covered and employments exempted. (1) Except as provided in subsection (2), the Workers' Compensation Act applies to all employers, as defined in 39-71-117, and to all employees, as defined in 39-71-118. An employer who has any employee in service under any appointment or contract of hire, expressed or implied, oral or written, shall elect to be bound by the provisions of compensation plan No. 1, 2, or 3. Each employee whose employer is bound by the Workers' Compensation Act is subject to and bound by the compensation plan that has been elected by the employer.

(2)  Unless the employer elects coverage for these employments under this chapter and an insurer allows an election, the Workers' Compensation Act does not apply to any of the following employments:

(a)  household and domestic employment;

(b)  casual employment as defined in 39-71-116;

(c)  employment of a dependent member of an employer's family for whom an exemption may be claimed by the employer under the federal Internal Revenue Code;

(d)  employment of sole proprietors, working members of a partnership, or working members of a member-managed limited liability company, except as provided in subsection (3);

(e)  employment of a broker or salesman performing under a license issued by the board of realty regulation;

(f)  employment of a direct seller as defined in 26 U.S.C. 3508;

(g)  employment for which a rule of liability for injury, occupational disease, or death is provided under the laws of the United States;

(h)  employment of a person performing services in return for aid or sustenance only, except employment of a volunteer under 67-2-105;

(i)  employment with a railroad engaged in interstate commerce, except that railroad construction work is included in and subject to the provisions of this chapter;

(j)  employment as an official, including a timer, referee, or judge, at a school amateur athletic event, unless the person is otherwise employed by a school district;

(k)  employment of a person performing services as a newspaper carrier or free-lance correspondent if the person performing the services or a parent or guardian of the person performing the services in the case of a minor has acknowledged in writing that the person performing the services and the services are not covered. As used in this subsection, "free-lance correspondent" is a person who submits articles or photographs for publication and is paid by the article or by the photograph. As used in this subsection, "newspaper carrier":

(i)  is a person who provides a newspaper with the service of delivering newspapers singly or in bundles; but

(ii) does not include an employee of the paper who, incidentally to the employee's main duties, carries or delivers papers.

(l)  cosmetologist's services and barber's services as defined in 39-51-204(1)(l);

(m)  a person who is employed by an enrolled tribal member or an association, business, corporation, or other entity that is at least 51% owned by an enrolled tribal member or members, whose business is conducted solely within the exterior boundaries of an Indian reservation;

(n)  employment of a jockey performing under a license issued by the board of horseracing from the time the jockey reports to the scale room prior to a race through the time the jockey is weighed out after a race if the jockey has acknowledged in writing, as a condition of licensing by the board of horseracing, that the jockey is not covered under the Workers' Compensation Act while performing services as a jockey;

(o)  employment of an employer's spouse for whom an exemption based on marital status may be claimed by the employer under 26 U.S.C. 7703;

(p)  a person who performs services as a petroleum land professional. As used in this subsection, a "petroleum land professional" is a person who:

(i)  is engaged primarily in negotiating for the acquisition or divestiture of mineral rights or in negotiating a business agreement for the exploration or development of minerals;

(ii) is paid for services that are directly related to the completion of a contracted specific task rather than on an hourly wage basis; and

(iii) performs all services as an independent contractor pursuant to a written contract.

(q)  an officer of a quasi-public or a private corporation or manager of a manager-managed limited liability company who qualifies under one or more of the following provisions:

(i)  the officer or manager is engaged in the ordinary duties of a worker for the corporation or the limited liability company and does not receive any pay from the corporation or the limited liability company for performance of the duties;

(ii) the officer or manager is engaged primarily in household employment for the corporation or the limited liability company;

(iii) the officer or manager owns 20% or more of the number of shares of stock in the corporation or owns 20% or more of the limited liability company; or

(iv) the officer or manager is the spouse, child, adopted child, stepchild, mother, father, son-in-law, daughter-in-law, nephew, niece, brother, or sister of a corporate officer who owns 20% or more of the number of shares of stock in the corporation or who owns 20% or more of the limited liability company.

(3)  (a) A sole proprietor, a working member of a partnership, or a working member of a member-managed limited liability company who represents to the public that the person is an independent contractor shall elect to be bound personally and individually by the provisions of compensation plan No. 1, 2, or 3 but may apply to the department for an exemption from the Workers' Compensation Act.

(b)  The application must be made in accordance with the rules adopted by the department. There is no a $25 fee for the initial application. Any subsequent application renewal must be accompanied by a $25 application fee. The application fee must be deposited in the administration fund established in 39-71-201 to offset the costs of administering the program.

(c)  When an application is approved by the department, it is conclusive as to the status of an independent contractor and precludes the applicant from obtaining benefits under this chapter.

(d)  The exemption, if approved, remains in effect for 1 year following the date of the department's approval. To maintain the independent contractor status, an independent contractor shall annually submit a renewal application. A renewal application must be submitted for all independent contractor exemptions approved as of July 1, 1995, or thereafter. The renewal application and the $25 renewal application fee must be received by the department at least 30 days prior to the anniversary date of the previously approved exemption. The exemption, if approved, remains in effect for 3 years following the date of the department's approval. To maintain the independent contractor status, an independent contractor shall every 3 years submit a renewal application. A renewal application must be submitted for all independent contractor exemptions approved as of July 1, 1995, or thereafter. The renewal application and the $25 renewal application fee must be received by the department at least 30 days prior to the anniversary date of the previously approved exemption.

(e)  A person who makes a false statement or misrepresentation concerning that person's status as an exempt independent contractor is subject to a civil penalty of $1,000. The department may impose the penalty for each false statement or misrepresentation. The penalty must be paid to the uninsured employers' fund. The lien provisions of 39-71-506 apply to the penalty imposed by this section.

(f)  If the department denies the application for exemption, the applicant may contest the denial by petitioning for review of the decision by an appeals referee in the manner provided for in 39-51-1109. An applicant dissatisfied with the decision of the appeals referee may appeal the decision in accordance with the procedure established in 39-51-2403 and 39-51-2404.

(4)  (a) A corporation or a manager-managed limited liability company shall provide coverage for its employees under the provisions of compensation plan No. 1, 2, or 3. A quasi-public corporation, a private corporation, or a manager-managed limited liability company may elect coverage for its corporate officers or managers, who are otherwise exempt under subsection (2), by giving a written notice in the following manner:

(i)  if the employer has elected to be bound by the provisions of compensation plan No. 1, by delivering the notice to the board of directors of the corporation or to the management organization of the manager-managed limited liability company; or

(ii) if the employer has elected to be bound by the provisions of compensation plan No. 2 or 3, by delivering the notice to the board of directors of the corporation or to the management organization of the manager-managed limited liability company and to the insurer.

(b)  If the employer changes plans or insurers, the employer's previous election is not effective and the employer shall again serve notice to its insurer and to its board of directors or the management organization of the manager-managed limited liability company if the employer elects to be bound.

(5)  The appointment or election of an employee as an officer of a corporation, a partner in a partnership, or a member in or a manager of a limited liability company for the purpose of exempting the employee from coverage under this chapter does not entitle the officer, partner, member, or manager to exemption from coverage.

(6)  Each employer shall post a sign in the workplace at the locations where notices to employees are normally posted, informing employees about the employer's current provision of workers' compensation insurance. A workplace is any location where an employee performs any work-related act in the course of employment, regardless of whether the location is temporary or permanent, and includes the place of business or property of a third person while the employer has access to or control over the place of business or property for the purpose of carrying on the employer's usual trade, business, or occupation. The sign must be provided by the department, distributed through insurers or directly by the department, and posted by employers in accordance with rules adopted by the department. An employer who purposely or knowingly fails to post a sign as provided in this subsection is subject to a $50 fine for each citation."



Section 13. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.



Section 14.  Repealer. Sections 39-3-701, 39-3-702, 39-3-703, 39-3-705, 39-3-706, 39-9-202, 39-9-203, 39-9-302, 39-9-402, 39-9-403, 39-9-404, 39-9-405, 39-9-406, 39-9-407, 39-9-408, 39-9-409, and 39-9-410, MCA, are repealed.



Section 15. Appropriation. There is appropriated from the state special revenue account to the department of labor and industry up to $315,000 for the biennium ending June 30, 1999, for the purpose of administering the construction contractor registration program.



Section 16.  Effective date. [This act] is effective July 1, 1997.

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