GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	2 

HOUSE BILL 1202
Second Edition Engrossed 5/10/89

Short Title:  Sole Proprietors/Workers' Comp.	(Public)
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Sponsors: Representatives Anderson; and R. Hunter.
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Referred to:  Commerce.
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April 12, 1989

A BILL TO BE ENTITLED
AN ACT TO PROVIDE THAT CONTRACTORS ARE NOT REQUIRED TO PROVIDE WORKERS' COMPENSATION BENEFITS FOR SUBCONTRACTORS WHO HAVE NO EMPLOYEES; AND TO EXEMPT SUBCONTRACTORS WHO HAVE NO EMPLOYEES FROM THE REQUIREMENT OF COMPLIANCE WITH G.S. 97-93.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 97-19 reads as rewritten:
"§ 97-19. Liability of principal contractors; certificate that subcontractor has complied with law; right to recover compensation of those who would have been liable; order of liability.
Any principal contractor, intermediate contractor, or subcontractor who shall sublet any contract for the performance of any work without requiring from such subcontractor or obtaining from the Industrial Commission a certificate, issued by the Industrial Commission, stating that such subcontractor has complied with G.S. 97-93 hereof, shall be liable, irrespective of whether such subcontractor has regularly in service less than four employees in the same business within this State, to the same extent as such subcontractor would be if he were subject to the provisions of this Article for the payment of compensation and other benefits under this Article on account of the injury or death of any such subcontractor, any principal or partner of such subcontractor or any employee of such subcontractor due to an accident arising out of and in the course of the performance of the work covered by such subcontract. If the principal contractor, intermediate contractor or subcontractor shall obtain such certificate at the time of subletting such contract to subcontractor, he shall not thereafter be held liable to any such subcontractor, any principal or partner of such subcontractor, or any employee of such subcontractor for compensation or other benefits under this Article.  If the subcontractor has no employees, the principal contractor, intermediate contractor, or subcontractor subletting the contract shall not thereafter be held liable for compensation or other benefits under this Article to said subcontractor.  Subcontractors who have no employees are not required to comply with G.S. 97-93.  The Industrial Commission, upon demand shall furnish such certificate, and may charge therefor the cost thereof, not to exceed twenty-five cents (25¢).
Any principal contractor, intermediate contractor, or subcontractor paying compensation or other benefits under this Article, under the foregoing provisions of this section, may recover the amount so paid from any person, persons, or corporation who independently of such provision, would have been liable for the payment thereof.
Every claim filed with the Industrial Commission under this section shall be instituted against all parties liable for payment, and said Commission, in its award, shall fix the order in which said parties shall be exhausted, beginning with the immediate employer.
The principal or owner may insure any or all of his contractors and their employees in a blanket policy, and when so insured such contractor's employees will be entitled to compensation benefits regardless of whether the relationship of employer and employee exists between the principal and the contractor."
Sec. 2.  This act is effective upon ratification.