S.B. 226
         PROFESSIONAL EMPLOYER LICENSING AMENDMENTS

House Floor Amendments

performance of any work for another who, while so engaged, is:
        (i) independent of the employer in all that pertains to the execution of the work;
        (ii) not subject to the routine rule or control of the employer;
        (iii) engaged only in the performance of a definite job or piece of work; and
        (iv) subordinate to the employer only in effecting a result in accordance with the employer's design.
        (b) "Regularly" includes all employments in the usual course of the trade, business, profession, or occupation of the employer, whether continuous throughout the year or for only a portion of the year.
        (3) (a) The client company in an employee leasing arrangement under Title 58, Chapter 59, [ Employee Leasing Company ] Professional Employer Organization Licensing Act, is considered the employer of leased employees and shall secure workers' compensation benefits for them by complying with Subsection 34A-2-201 (1)(a) or (b) and commission rules.
        (b) Insurance carriers may underwrite workers' compensation secured in accordance with Subsection (3)(a) showing the leasing company as the named insured and each client company as an additional insured by means of individual endorsements.
        (c) Endorsements shall be filed with the division as directed by commission rule.
        (d) The division shall promptly inform the Division of Occupation and Professional Licensing within the Department of Commerce if the division has reason to believe that an employee leasing company is not in compliance with Subsection 34A-2-201 (1)(a) or (b) and commission rules.
        (4) A domestic employer who does not employ one employee or more than one employee at least 40 hours per week is not considered an employer under this chapter and Chapter 3, Utah Occupational Disease Act.
        (5) (a) As used in this Subsection (5):
        (i) (A) "agricultural employer" means a person who employs agricultural labor as defined in Subsections 35A-4-206 (1) and (2) and does not include employment as provided in Subsection 35A-4-206 (3);
        (B) notwithstanding Subsection (5)(a)(i)(A), only for purposes of determining who is a member of the employer's immediate family under Subsection (5)(a)(ii), if the agricultural employer is a

corporation, partnership, or other business entity, "agricultural employer" means an officer, director, or partner of the business entity;
        (ii) "employer's immediate family" means:
        (A) an agricultural employer's:
        (I) spouse;
        (II) grandparent;
        (III) parent;
        (IV) sibling;
        (V) child;
        (VI) grandchild;
        (VII) nephew; or
        (VIII) niece;
        (B) a spouse of any person provided in Subsection (4)(a)(ii)(A)(II) through (VIII); or
        (C) an individual who is similar to those listed in Subsections (4)(a)(ii)(A) or (B) as defined by rules of the commission; and
        (iii) "non-immediate family" means a person who is not a member of the employer's immediate family.
        (b) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an agricultural employer is not considered an employer of a member of the employer's immediate family.
        (c) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an agricultural employer is not considered an employer of a non-immediate family employee if:
        (i) for the previous calendar year the agricultural employer's total annual payroll for all non-immediate family employees was less than $8,000; or
        (ii) (A) for the previous calendar year the agricultural employer's total annual payroll for all non-immediate family employees was equal to or greater than $8,000 but less than $50,000; and
        (B) the agricultural employer maintains insurance that covers job-related injuries of the employer's nonimmediate family employees in at least the following amounts:
        (I) $300,000 liability insurance, as defined in Section 31A-1-301 ; and
        (II) $5,000 for medical, hospital, and surgical benefits as described in Subsection 31A-1-301 (50)(a)(ii).
        (d) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an agricultural employer is considered an employer of a non-immediate family employee if:
        (i) for the previous calendar year the agricultural employer's total annual payroll for all non-immediate family employees is equal to or greater than $50,000; or
        (ii) (A) for the previous year the agricultural employer's total payroll for non-immediate family employees was equal to or exceeds $8,000 but is less than $50,000; and
        (B) the agricultural employer fails to maintain the insurance required under Subsection (5)(c)(ii).
        (6) An employer of agricultural laborers or domestic servants who is not considered an employer under this chapter and Chapter 3, Utah Occupational Disease Act, may come under this chapter and Chapter 3, Utah Occupational Disease Act, by complying with:
        (a) this chapter and Chapter 3, Utah Occupational Disease Act; and
        (b) the rules of the commission.
        (7) (a) If any person who is an employer procures any work to be done wholly or in part for the employer by a contractor over whose work the employer retains supervision or control, and this work is a part or process in the trade or business of the employer, the contractor, all persons employed by the contractor, all subcontractors under the contractor, and all persons employed by any of these subcontractors, are considered employees of the original employer for the purposes of this chapter and Chapter 3, Utah Occupational Disease Act.
        (b) Any person who is engaged in constructing, improving, repairing, or remodelling a residence that the person owns or is in the process of acquiring as the person's personal residence may not be considered an employee or employer solely by operation of Subsection (7)(a).
        (c) A partner in a partnership or an owner of a sole proprietorship may not be considered an employee under Subsection (7)(a) if the employer who procures work to be done by the partnership or sole proprietorship obtains and relies on either:
        (i) a valid certification of the partnership's or sole proprietorship's compliance with Section 34A-2-201 indicating that the partnership or sole proprietorship secured the payment of workers' compensation benefits pursuant to Section 34A-2-201 ; or
        (ii) if a partnership or sole proprietorship with no employees other than a partner of the partnership or owner of the sole proprietorship, a workers' compensation policy issued by an insurer pursuant to Subsection 31A-21-104 (8) stating that:
        (A) the partnership or sole proprietorship is customarily engaged in an independently established trade, occupation, profession, or business; and
        (B) the partner or owner personally waives the partner's or owner's entitlement to the benefits of this chapter and Chapter 3, Utah Occupational Disease Act, in the operation of the partnership or sole proprietorship.
        (d) A director or officer of a corporation may not be considered an employee under Subsection (7)(a) if the director or officer is excluded from coverage under Subsection 34A-2-104 (4).
        (e) A contractor or subcontractor is not an employee of the employer under Subsection (7)(a), if the employer who procures work to be done by the contractor or subcontractor obtains and relies on either:
        (i) a valid certification of the contractor's or subcontractor's compliance with Section 34A-2-201 ; or
        (ii) if a partnership, corporation, or sole proprietorship with no employees other than a partner of the partnership, officer of the corporation, or owner of the sole proprietorship, a workers' compensation policy issued by an insurer pursuant to Subsection 31A-21-104 (8) stating that:
        (A) the partnership, corporation, or sole proprietorship is customarily engaged in an independently established trade, occupation, profession, or business; and
        (B) the partner, corporate officer, or owner personally waives the partner's, corporate officer's, or owner's entitlement to the benefits of this chapter and Chapter 3, Utah Occupational Disease Act, in the operation of the partnership's, corporation's, or sole proprietorship's enterprise under a contract of hire for services.

        Section 2. Section 34A-2-103 (Superseded 07/01/99) is amended to read:
         34A-2-103 (Superseded 07/01/99). Employers enumerated and defined -- Regularly employed -- Statutory employers.
        (1) (a) The state, and each county, city, town, and school district in the state are considered employers under this chapter and Chapter 3, Utah Occupational Disease Act.
        (b) For the purposes of the exclusive remedy in this chapter and Chapter 3, Utah Occupational Disease Act prescribed in Sections 34A-2-105 and 34A-3-102 , the state is considered to be a single employer and includes any office, department, agency, authority,

commission, board, institution, hospital, college, university, or other instrumentality of the state.
        (2) Except as provided in Subsection (4), each person, including each public utility and each independent contractor, who regularly employs one or more workers or operatives in the same business, or in or about the same establishment, under any contract of hire, express or implied, oral or written, is considered an employer under this chapter and Chapter 3, Utah Occupational Disease Act. As used in Subsection (2):
        (a) "Regularly" includes all employments in the usual course of the trade, business, profession, or occupation of the employer, whether continuous throughout the year or for only a portion of the year.
        (b) "Independent contractor" means any person engaged in the performance of any work for another who, while so engaged, is independent of the employer in all that pertains to the execution of the work, is not subject to the routine rule or control of the employer, is engaged only in the performance of a definite job or piece of work, and is subordinate to the employer only in effecting a result in accordance with the employer's design.
        (3) (a) The client company in an employee leasing arrangement under Title 58, Chapter 59, [ Employee Leasing Company ] Professional Employer Organization Licensing Act, is considered the employer of leased employees and shall secure workers' compensation benefits for them by complying with Subsection 34A-2-201 (1)(a) or (b) and commission rules.
        (b) Insurance carriers may underwrite workers' compensation secured in accordance with Subsection (3)(a) showing the leasing company as the named insured and each client company as an additional insured by means of individual endorsements.
        (c) Endorsements shall be filed with the division as directed by commission rule.
        (d) The division shall promptly inform the Division of Occupation and Professional Licensing within the Department of Commerce if the division has reason to believe that an employee leasing company is not in compliance with Subsection 34A-2-201 (1)(a) or (b) and commission rules.
        (4) (a) An agricultural employer is not considered an employer under this chapter and Chapter 3, Utah Occupational Disease Act, if:
        (i) (A) the employer's employees are all members of the employer's immediate family; and
        (B) the employer has a proprietary interest in the farm where they work; or
        (ii) the employer employed five or fewer persons other than immediate family members for 40 hours or more per week per employee for 13 consecutive weeks during any part of the preceding 12 months.
        (b) A domestic employer who does not employ one employee or more than one employee at least 40 hours per week is not considered an employer under this chapter and Chapter 3, Utah Occupational Disease Act.
        (5) An employer of agricultural laborers or domestic servants who is not considered an employer under this chapter and Chapter 3, Utah Occupational Disease Act, may come under this chapter and Chapter 3, Utah Occupational Disease Act, by complying with this chapter and Chapter 3, Utah Occupational Disease Act, and the rules of the commission.
        (6) (a) If any person who is an employer procures any work to be done wholly or in part for the employer by a contractor over whose work the employer retains supervision or control, and this work is a part or process in the trade or business of the employer, the contractor, all persons employed by the contractor, all subcontractors under the contractor, and all persons employed by any of these subcontractors, are considered employees of the original employer for the purposes of this chapter and Chapter 3, Utah Occupational Disease Act.
        (b) Any person who is engaged in constructing, improving, repairing, or remodelling a residence that the person owns or is in the process of acquiring as the person's personal residence may not be considered an employee or employer solely by operation of Subsection (6)(a).
        (c) A partner in a partnership or an owner of a sole proprietorship may not be considered an employee under Subsection (6)(a) if the employer who procures work to be done by the partnership or sole proprietorship obtains and relies on either:
        (i) a valid certification of the partnership's or sole proprietorship's compliance with Section 34A-2-201 indicating that the partnership or sole proprietorship secured the payment of workers' compensation benefits pursuant to Section 34A-2-201 ; or
        (ii) if a partnership or sole proprietorship with no employees other than a partner of the partnership or owner of the sole proprietorship, a workers' compensation policy issued by an insurer

pursuant to Subsection 31A-21-104 (8) stating that:
        (A) the partnership or sole proprietorship is customarily engaged in an independently established trade, occupation, profession, or business; and
        (B) the partner or owner personally waives the partner's or owner's entitlement to the benefits of this chapter and Chapter 3, Utah Occupational Disease Act, in the operation of the partnership or sole proprietorship.
        (d) A director or officer of a corporation may not be considered an employee under Subsection (6)(a) if the director or officer is excluded from coverage under Subsection 34A-2-104 (4).
        (e) A contractor or subcontractor is not an employee of the employer under Subsection (6)(a), if the employer who procures work to be done by the contractor or subcontractor obtains and relies on either:
        (i) a valid certification of the contractor's or subcontractor's compliance with Section 34A-2-201 ; or
        (ii) if a partnership, corporation, or sole proprietorship with no employees other than a partner of the partnership, officer of the corporation, or owner of the sole proprietorship, a workers' compensation policy issued by an insurer pursuant to Subsection 31A-21-104 (8) stating that:
        (A) the partnership, corporation, or sole proprietorship is customarily engaged in an independently established trade, occupation, profession, or business; and
        (B) the partner, corporate officer, or owner personally waives the partner's, corporate officer's, or owner's entitlement to the benefits of this chapter and Chapter 3, Utah Occupational Disease Act, in the operation of the partnership's, corporation's, or sole proprietorship's enterprise under a contract of hire for services.
        
        Section 3. Section 34A-2-105 is amended to read:
         34A-2-105. Exclusive remedy against employer, or officer, agent, or employee -- Employee leasing arrangements.
        (1) The right to recover compensation pursuant to this chapter for injuries sustained by an employee, whether resulting in death or not, shall be the exclusive remedy against the employer and shall be the exclusive remedy against any officer, agent, or employee of the employer and the liabilities of the employer imposed by this chapter shall be in place of any and all other civil liability whatsoever, at common law or otherwise, to the employee or to the

employee's spouse, widow, children, parents, dependents, next of kin, heirs, personal representatives, guardian, or any other person whomsoever, on account of any accident or injury or death, in any way contracted, sustained, aggravated, or incurred by the employee in the course of or because of or arising out of the employee's employment, and no action at law may be maintained against an employer or against any officer, agent, or employee of the employer based upon any accident, injury, or death of an employee. Nothing in this section, however, shall prevent an employee, or the employee's dependents, from filing a claim for compensation in those cases in accordance with Chapter 3, Utah Occupational Disease Act.
        (2) The exclusive remedy provisions of this section apply to both the client company and the employee leasing company in an employee leasing arrangement under Title 58, Chapter 59, [ Employee Leasing Company ] Professional Employer Organization Licensing Act.
        (3) (a) For purposes of this section:
        (i) "Temporary employee" means an individual who for temporary work assignment is:
        (A) an employee of a temporary staffing company; or
        (B) registered by or otherwise associated with a temporary staffing company.
        (ii) "Temporary staffing company" means a company that engages in the assignment of individuals as temporary full-time or part-time employees to fill assignments with a finite ending date to another independent entity.
        (b) If the temporary staffing company secures the payment of workers' compensation in accordance with Section 35A-3-201 for all temporary employees of the temporary staffing company, the exclusive remedy provisions of this section apply to both the temporary staffing company and the client company and its employees and provide the temporary staffing company the same protection that a client company and its employees has under this section for the acts of any of the temporary staffing company's temporary employees on assignment at the client company worksite."

3.    Page 12, Line 356:    After line 356 insert:
        "Section 17. Section 63-55-258 is amended to read:
         63-55-258. Repeal dates, Title 58.
        (1) Title 58, Chapter 3a, Architects Licensing Act, is repealed July 1, 2003.
        (2) Title 58, Chapter 5a, Podiatric Physician Licensing Act, is repealed July 1, 2002.
        (3) Title 58, Chapter 9, Funeral Services Licensing Act, is repealed July 1, 2008.
        (4) Title 58, Chapter 13, Health Care Providers Immunity from Liability Act, is repealed July 1, 2006.
        (5) Title 58, Chapter 15, Health Facility Administrator Act, is repealed July 1, 2005.
        (6) Title 58, Chapter 16a, Utah Optometry Practice Act, is repealed July 1, 1999.
        (7) Title 58, Chapter 17a, Pharmacy Practice Act, is repealed July 1, 2006.
        (8) Title 58, Chapter 20a, Environmental Health Scientist Act, is repealed July 1, 2003.
        (9) Title 58, Chapter 22, Professional Engineers and Land Surveyors Licensing Act, is repealed July 1, 2005.
        (10) Title 58, Chapter 24a, Physical Therapist Practice Act, is repealed July 1, 2003.
        (11) Title 58, Chapter 26, Certified Public Accountant Licensing Act, is repealed July 1, 2002.
        (12) Title 58, Chapter 28, Veterinary Practice Act, is repealed July 1, 2004.
        (13) Title 58, Chapter 31, Nurse Practice Act, is repealed July 1, 2005.
        (14) Title 58, Chapter 37, Utah Controlled Substances Act, is repealed July 1, 2007.
        (15) Title 58, Chapter 37a, Utah Drug Paraphernalia Act, is repealed July 1, 2007.
        (16) Title 58, Chapter 37b, Imitation Controlled Substances Act, is repealed July 1, 2007.
        (17) Title 58, Chapter 40, Recreational Therapy Practice Act, is repealed July 1, 2005.
        (18) Title 58, Chapter 41, Speech-language Pathology and Audiology Licensing Act, is repealed July 1, 1999.
        (19) Title 58, Chapter 42a, Occupational Therapy Practice Act, is repealed July 1, 2005.
        (20) Title 58, Chapter 44a, Nurse Midwife Practice Act, is repealed July 1, 2000.
        (21) Title 58, Chapter 46a, Hearing Instrument Specialist

Licensing Act, is repealed July 1, 2003.
        (22) Title 58, Chapter 47b, Massage Practice Act, is repealed July 1, 2004.
        (23) Title 58, Chapter 49, Dietitian Certification Act, is repealed July 1, 2005.
        (24) Title 58, Chapter 53, Landscape Architects Licensing Act, is repealed July 1, 2008.
        (25) Title 58, Chapter 58, Preneed Funeral Arrangement Act, is repealed July 1, 2001.
        (26) Title 58, Chapter 59, [ Employee Leasing Company ] Professional Employer Organization Licensing Act, is repealed July 1, 2002.
        (27) Title 58, Chapter 66, Utah Professional Boxing Regulation Act, is repealed July 1, 2005.
        (28) Title 58, Chapter 67, Utah Medical Practice Act, is repealed July 1, 2006.
        (29) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act, is repealed July 1, 2006.
        (30) Title 58, Chapter 69, Dentist and Dental Hygienist Practice Act, is repealed July 1, 2006.
        (31) Title 58, Chapter 71, Naturopathic Physician Practice Act, is repealed July 1, 2006.
        (32) Title 58, Chapter 72, Acupuncture Licensing Act, is repealed July 1, 2002.
        (33) Title 58, Chapter 73, Chiropractic Physician Practice Act, is repealed July 1, 2006."

         Renumber remaining sections accordingly.