00               SENATE CS FOR CS FOR HOUSE BILL NO. 212(STA)                                                             
01 "An Act relating to workers' compensation insurance; and providing for an effective                                     
02 date."                                                                                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 23.30.045(a) is amended to read:                                                                  
05            (a)  An employer is liable for and shall secure [THE] payment [TO                                            
06       EMPLOYEES] of the compensation payable to employees under AS 23.30.041,                                       
07       23.30.050, 23.30.095, 23.30.145, and 23.30.180 - 23.30.215.  If the employer is a                                 
08       subcontractor, the subcontractor shall secure payment of the compensation                                     
09       payable to the subcontractor's employees.  If the subcontractor fails to secure                               
10       payment of the compensation payable, the contractor is liable for and shall secure                            
11       the payment of the compensation payable to employees of the subcontractor.  A                             
12       subcontractor who is a sole proprietor and is an independent contractor may not                               
13       be considered an employee of the contractor, and the contractor is not                                        
14       responsible for securing payment of compensation for the subcontractor                                        

01       [UNLESS THE SUBCONTRACTOR SECURES THE PAYMENT].                                                                   
02    * Sec. 2.  AS 23.30.395(12) is amended to read:                                                                    
03                 (12)  "employee" means an employee employed by an employer as                                           
04       defined in (13) of this section; "employee" does not include an independent                                   
05       contractor;                                                                                                   
06    * Sec. 3.  AS 23.30.395 is amended by adding a new paragraph to read:                                              
07                 (35)  "independent contractor" means a person who contracts to                                          
08       perform work or provide a service for the benefit of another and who                                              
09                      (A)  is paid by the job and not by the hour or some other time-                                    
10            measured basis;                                                                                              
11                      (B)  is free to hire as many employees or helpers as desired and                                   
12            may determine the pay of each employee or helper;                                                            
13                      (C)  is free, while under contract to the hiring contractor, to                                    
14            work for other contractors or is free to send employees or helpers to work for                               
15            other contractors;                                                                                           
16                      (D)  acts as a sole proprietor or in a partnership;                                                
17                      (E)  acts as the employer of any employee by paying wages,                                         
18            directing activities, paying necessary payroll taxes, and performing other                                   
19            similar functions characteristic of an employer-employee relationship;                                       
20                      (F)  is required to furnish or to have employees if necessary to                                   
21            perform the work or service and to furnish necessary tools, supplies, or                                     
22            materials to perform the work or service;                                                                    
23                      (G)  possesses the skills required for the specific work or                                        
24            service; and                                                                                                 
25                      (H)  possesses a business license for the purpose of the work or                                   
26            service under contract.                                                                                      
27    * Sec. 4.  This Act takes effect January 1, 2003.