Minnesota Session Laws - 1993, Regular Session

  
    Laws of Minnesota 1993 

                        CHAPTER 344-H.F.No. 1387 
           An act relating to employment; requiring Occupational 
          Safety and Health Act compliance by certain 
          independent contractors; requiring certain studies and 
          reports on independent contractors; proposing coding 
          for new law in Minnesota Statutes, chapter 182. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [182.6521] [INDEPENDENT CONTRACTORS.] 
    An independent contractor doing building construction or 
improvements in the public or private sector must comply with 
the occupational safety and health standards that apply under 
this chapter to an employer and its employees.  This section 
applies to an independent contractor however organized 
including, without limitation, those organized as a partnership, 
sole proprietorship, or corporation. 
    Sec. 2.  [STUDY; INDEPENDENT CONTRACTORS.] 
    Subdivision 1.  [UNEMPLOYMENT COMPENSATION.] The department 
of jobs and training shall study the issue of independent 
contractors and their compliance with unemployment compensation 
contribution requirements.  The department shall report the 
results of the study along with recommendations for legislation 
to the policy committees of the legislature having jurisdiction 
over unemployment compensation matters by February 1, 1994. 
    Subd. 2.  [INCOME TAX WITHHOLDING.] The department of 
revenue shall study the issue of independent contractors and 
their compliance with income tax withholding laws.  The 
department shall report the results of the study along with 
recommendations for legislation to the policy committees of the 
legislature having jurisdiction over taxation matters. 
      Subd. 3.  [WORKERS' COMPENSATION.] The department of labor 
and industry shall study the issue of independent contractors 
and their compliance with workers' compensation laws.  The study 
shall include an estimate of the current cost and a projection 
of future costs to the special compensation fund of claims made 
by injured construction trades workers incorrectly classified as 
independent contractors by their employers.  The cost figures 
shall include the reimbursement by the special compensation fund 
of medical assistance and general assistance benefits paid for 
construction trade workers misclassified as independent 
contractors. 
     The study shall evaluate the legal use of exclusions from 
workers' compensation under section 176.041, subdivision 1 by 
persons engaged in construction activities.  The evaluation 
shall specifically address the impact of the use of the 
exclusions by persons engaged in construction activities on the 
workers' compensation system.  The department shall consult with 
representatives of construction employers and construction trade 
employees in evaluating the impact of the exclusions on 
employers engaged in the same activity.  The study shall include 
an estimate of the current cost and a projection of future costs 
to medical assistance and general assistance of work related 
injuries to persons in construction trades that are excluded 
from workers' compensation under section 176.041, subdivision 1. 
    The department of human services shall cooperate with the 
department of labor and industry in providing information and 
staff assistance necessary to complete the study.  By February 
1, 1994, the department of labor and industry shall report the 
results of the study with recommendations for legislation to the 
policy committees of the legislature having jurisdiction over 
workers' compensation, medical assistance and general assistance 
matters. 
    Sec. 3.  [EFFECTIVE DATE.] 
    This act is effective June 1, 1993. 
    Presented to the governor May 20, 1993 
    Signed by the governor May 24, 1993, 5:52 p.m.