S.B. 11 Enrolled

1

WORKER CLASSIFICATION COORDINATED ENFORCEMENT
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Karen Mayne
5 House Sponsor: Todd E. Kiser
6 Cosponsor:John L. Valentine 7
8 LONG TITLE
9 General Description:
10 This bill modifies labor provisions to address worker classification and related issues of
11 enforcement.
12 Highlighted Provisions:
13 This bill:
14 . changes the Independent Contractor Database Enforcement Council to the Worker
15 Classification Coordinated Enforcement Council, including:
16 . addressing membership;
17 . modifying the duties of the council; and
18 . addressing the sharing of information; and
19 . makes technical and conforming amendments.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides an immediate effective date.
24 Utah Code Sections Affected:
25 AMENDS:
26 63I-1-213, as last amended by Laws of Utah 2008, Chapter 273 and renumbered and
27 amended by Laws of Utah 2008, Chapter 382
28 63I-1-234, as last amended by Laws of Utah 2010, Chapter 319
29 ENACTS:

30 34-47-101, Utah Code Annotated 1953
31 34-47-102, Utah Code Annotated 1953
32 34-47-201, Utah Code Annotated 1953
33 34-47-202, Utah Code Annotated 1953
34 REPEALS:
35 13-46-101, as enacted by Laws of Utah 2008, Chapter 273
36 13-46-102, as enacted by Laws of Utah 2008, Chapter 273
37 13-46-103, as enacted by Laws of Utah 2008, Chapter 273
38 13-46-201, as enacted by Laws of Utah 2008, Chapter 273
39 13-46-202, as enacted by Laws of Utah 2008, Chapter 273
40 13-46-301, as enacted by Laws of Utah 2008, Chapter 273
41 13-46-302, as enacted by Laws of Utah 2008, Chapter 273
42 13-46-303, as enacted by Laws of Utah 2008, Chapter 273
43
44 Be it enacted by the Legislature of the state of Utah:
45 Section 1. Section 34-47-101 is enacted to read:
46 CHAPTER 47. WORKER CLASSIFICATION COORDINATED
47 ENFORCEMENT ACT
48 Part 1. General Provisions
49 34-47-101. Title.
50 This chapter is known as the "Worker Classification Coordinated Enforcement Act."
51 Section 2. Section 34-47-102 is enacted to read:
52 34-47-102. Definitions.
53 As used in this chapter:
54 (1) "Commission" means the Labor Commission.
55 (2) "Commissioner" means the commissioner of the Labor Commission.
56 (3) "Council" means the Worker Classification Coordinated Enforcement Council
57 created in Section 34-47-201 .

58 (4) "Member agency" means an agency that is represented on the council.
59 (5) "Misclassification" means to classify an individual as something other than an
60 employee, if under the relevant law the individual is required to be classified as an employee.
61 Section 3. Section 34-47-201 is enacted to read:
62 Part 2. Worker Classification Coordinated Enforcement Council
63 34-47-201. Creation.
64 (1) (a) There is created within the commission the Worker Classification Coordinated
65 Enforcement Council consisting of the following four members:
66 (i) the commissioner, or the commissioner's designee;
67 (ii) the executive director of the Department of Commerce, or the executive director's
68 designee;
69 (iii) the executive director of the Department of Workforce Services, or the executive
70 director's designee; and
71 (iv) the chair of the State Tax Commission, or the chair's designee.
72 (b) The Office of the Attorney General shall work cooperatively with the council.
73 (2) The commissioner, or the commissioner's designee, is chair of the council.
74 (3) (a) A majority of the council members constitutes a quorum.
75 (b) A vote of the majority of the council members present when a quorum is present is
76 an action of the council.
77 (c) Subject to Section 34-47-202 , the council shall meet at the call of the chair, except
78 that the chair shall call a meeting at least quarterly.
79 (d) The council may adopt additional procedures or requirements for:
80 (i) voting, when there is a tie of the council members;
81 (ii) how meetings are to be called; and
82 (iii) the frequency of meetings.
83 Section 4. Section 34-47-202 is enacted to read:
84 34-47-202. Duties and powers of the council.
85 (1) The council shall meet at least quarterly with the attorney general or a designee of

86 the attorney general to coordinate regulatory and law enforcement efforts related to
87 misclassification.
88 (2) (a) The council shall report by no later than November 30 of each year to:
89 (i) the governor; and
90 (ii) the Business and Labor Interim Committee.
91 (b) The report required by this Subsection (2) shall include:
92 (i) the nature and extent of misclassification in this state;
93 (ii) the results of regulatory and law enforcement efforts related to the council;
94 (iii) the status of sharing information by member agencies; and
95 (iv) recommended legislative changes, if any.
96 (c) As part of the report required by this Subsection (2), the chairs of the Business and
97 Labor Interim Committee shall provide an opportunity to the following to report to the
98 Business and Labor Interim Committee on the effectiveness of the council:
99 (i) the attorney general; and
100 (ii) each member agency.
101 (3) The council may study:
102 (a) how to reduce costs to the state resulting from misclassification;
103 (b) how to extend outreach and education efforts regarding the nature and requirements
104 of classifying an individual;
105 (c) how to promote efficient and effective information sharing amongst the member
106 agencies; and
107 (d) the need, if any, to create by statute a database or other method to facilitate sharing
108 of information related to misclassification.
109 (4) A member agency shall cooperate with the commission and council to provide
110 information related to misclassification to the extent that:
111 (a) the information is public information; or
112 (b) providing the information is otherwise permitted by law other than this chapter.
113 (5) (a) A record provided to the commission or council under this chapter is a protected

114 record under Title 63G, Chapter 2, Government Records Access and Management Act, unless
115 otherwise classified as private or controlled under Title 63G, Chapter 2.
116 (b) Notwithstanding Subsection (5)(a), the commission or council may disclose the
117 record to the extent:
118 (i) necessary to take an administrative action by a member agency;
119 (ii) necessary to prosecute a criminal act; or
120 (iii) that the record is:
121 (A) obtainable from a source other than the member agency that provides the record to
122 the commission or council; or
123 (B) public information or permitted to be disclosed by a law other than this chapter.
124 Section 5. Section 63I-1-213 is amended to read:
125 63I-1-213. Repeal dates, Title 13.
126 [(1)] Title 13, Chapter 16, Motor Fuel Marketing Act, is repealed July 1, 2012.
127 [(2) Title 13, Chapter 46, Independent Contractor Database Act, is repealed July 1,
128 2013.]
129 Section 6. Section 63I-1-234 is amended to read:
130 63I-1-234. Repeal dates, Titles 34 and 34A.
131 (1) Title 34, Chapter 47, Worker Classification Coordinated Enforcement Act, is
132 repealed July 1, 2013.
133 [(1)] (2) Section 34A-2-202.5 is repealed December 31, 2020.
134 [(2)] (3) Section 34A-2-705 and Subsection 59-9-101 (2)(c)(iv) are repealed July 1,
135 2013.
136 [(3)] (4) Title 34A, Chapter 8a, Utah Injured Worker Reemployment Act, is repealed
137 July 1, 2014.
138 Section 7. Repealer.
139 This bill repeals:
140 Section 13-46-101, Title.
141 Section 13-46-102, Definitions.

142 Section 13-46-103, Scope.
143 Section 13-46-201, Creation.
144 Section 13-46-202, Duties of the council.
145 Section 13-46-301, Creation.
146 Section 13-46-302, Confidentiality of information in the database.
147 Section 13-46-303, Liability.
148 Section 8. Effective date.
149 If approved by two-thirds of all the members elected to each house, this bill takes effect
150 upon approval by the governor, or the day following the constitutional time limit of Utah
151 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
152 the date of veto override.