North Dakota HB 1137: AN ACT to create and enact sections 65‑04‑26.2 and 65‑04‑27.2 of the North Dakota Century Code, relating to workers' compensation requirements for general contractors and cease and desist orders; to amend and reenact subsection 16 of section 65‑01‑02 and section 65‑04‑19 of the North Dakota Century Code, relating to the workers' compensation definition of employee, assignment of rate classification, and calculation of premium; and to provide a penalty.

Bill Text

17.0325.02000
Sixty-fifth
Legislative Assembly
of North Dakota
Introduced by
Representative Keiser
A BILL for an Act to create and enact sections 65-04-26.2 and 65-04-27.2 of the North Dakota
Century Code, relating to workers' compensation requirements for general contractors and
cease and desist orders; and to amend and reenact subsection 16 of section 65-01-02 and
section 65-04-19 of the North Dakota Century Code, relating to the workers' compensation
definition of employee, assignment of rate classification, and calculation of premium.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Subsection 16 of section 65-01-02 of the North Dakota
Century Code is amended and reenacted as follows:
16. "Employee" means a personan individual who performs hazardous employment for
another for remuneration unless the personindividual is an independent contractor
under the common-law test.
a. The term includes:
(1) All elective and appointed officials of this state and its political subdivisions,
including municipal corporations and including the members of the
legislative assembly, all elective officials of the several counties of this
stateany county, and all elective peace officers of any city.
(2) Aliens.
(3) County general assistance workers, except those who are engaged in
repaying to counties moneys that the counties have been compelled by
statute to expend for county general assistance.
(4) Minors, whether lawfully or unlawfully employed; a. A minor is deemed
sui juris for the purposes of this title, and no other person has any claim for
relief or right to claim workforce safety and insurance benefits for any injury
to a minor worker, but in the event of the award of a lump sum of benefits to
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HOUSE BILL NO. 1137

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a minor employee, the lump sum may be paid only to the legally appointed
guardian of the minor.
b. The term does not include:
(1) Any personAn individual whose employment is both casual and not in the
course of the trade, business, profession, or occupation of that
person'sindividual's employer.
(2) Any personAn individual who is engaged in an illegal enterprise or
occupation.
(3) The spouse of an employer or athe child under the age of twenty-two of an
employer. For purposes of this paragraph and section 65-07-01, "child"
means any legitimate child, stepchild, adopted child, foster child, or
acknowledged illegitimate child.
(4) AnyA real estate broker or real estate salesperson, provided the
personindividual meets the following three requirements:
(a) The salesperson or broker must be a licensed real estate agent under
section 43-23-05.
(b) Substantially all of the salesperson's or broker's remuneration for the
services performed as a real estate agent must be directly related to
sales or other efforts rather than to the number of hours worked.
(c) A written agreement must exist between the salesperson or broker
and the person or firm for whomwhich the salesperson or broker
works, which agreement must provide that the salesperson or broker
will not be treated as an employee but rather as an independent
contractor.
(5) The members of the board of directors of a business corporation who are
not employed in any capacity by the corporation other than as members of
the board of directors.
(6) AnyAn individual delivering newspapers or shopping news, if substantially
all of the individual's remuneration is directly related to sales or other efforts
rather than to the number of hours worked and a written agreement exists
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between the individual and the publisher of the newspaper or shopping
news which states that the individual is an independent contractor.
(7) An employer.
c. Persons employed by a subcontractor, or by an independent contractor operating
under an agreement with the general contractor, for the purpose of this chapter
are deemed to be employees of the general contractor who is liable and
responsible for the payments of premium for the coverage of these employees
until the subcontractor or independent contractor has secured the necessary
coverage and paid the premium for the coverage. This subdivision does not
impose any liability upon a general contractor other than liability to the
organization for the payment of premiums which are not paid by a subcontractor
or independent contractor.
SECTION 2. AMENDMENT. Section 65-04-19 of the North Dakota Century Code is
amended and reenacted as follows:
65-04-19. Organization to assign rate classifications, calculate premium, and
determine premium due from employer - Mailing of premium billing statement as notice
of amount due.
1. The organization shall assign rate classifications based on information provided to the
organization by the employer or information gathered