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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to commerce to provide for the creation of a
10 database related to independent contractors.
11 Highlighted Provisions:
12 This bill:
13 . enacts the Independent Contractor Database Act, including:
14 . defining terms;
15 . limiting the scope of the chapter;
16 . creating an Independent Contractor Enforcement Council and establishing its
18 . discussing study items including coordination with the Uninsured Motorist
19 Identification Database;
20 . requiring reporting;
21 . requiring the creation of a database;
22 . addressing confidentiality of the information on the database; and
23 . limiting liability;
24 . provides a repeal date for the Independent Contractor Database Act; and
25 . makes technical amendments.
26 Monies Appropriated in this Bill:
28 Other Special Clauses:
30 Utah Code Sections Affected:
32 63-55-213, as last amended by Laws of Utah 2007, Chapter 216
34 13-46-101, Utah Code Annotated 1953
35 13-46-102, Utah Code Annotated 1953
36 13-46-103, Utah Code Annotated 1953
37 13-46-201, Utah Code Annotated 1953
38 13-46-202, Utah Code Annotated 1953
39 13-46-301, Utah Code Annotated 1953
40 13-46-302, Utah Code Annotated 1953
41 13-46-303, Utah Code Annotated 1953
43 Be it enacted by the Legislature of the state of Utah:
44 Section 1. Section 13-46-101 is enacted to read:
47 13-46-101. Title.
48 This chapter is known as the "Independent Contractor Database Act."
49 Section 2. Section 13-46-102 is enacted to read:
50 13-46-102. Definitions.
51 As used in this chapter:
52 (1) "Accessing agency" means:
53 (a) the department;
54 (b) the Department of Workforce Services;
55 (c) the Labor Commission; and
56 (d) the State Tax Commission.
57 (2) "Council" means the Independent Contractor Enforcement Council created in
58 Section 13-46-201 .
59 (3) "Database" means the Independent Contractor Database created under this chapter.
60 (4) "Department" means the Department of Commerce.
61 Section 3. Section 13-46-103 is enacted to read:
62 13-46-103. Scope.
63 Nothing in this chapter may be construed as limiting or modifying the ability of an
64 accessing agency or the attorney general to share information that is not part of the database,
65 but is allowed to be shared by a law other than this chapter.
66 Section 4. Section 13-46-201 is enacted to read:
68 13-46-201. Creation.
69 (1) (a) There is created within the department the Independent Contractor Enforcement
70 Council consisting of the following three members:
71 (i) the executive director of the department or the executive director's designee;
72 (ii) the executive director of the Department of Workforce Services or the executive
73 director's designee; and
74 (iii) the commissioner of the Labor Commission or the commissioner's designee.
75 (b) The following shall work cooperatively with the council:
76 (i) the Department of Public Safety; and
77 (ii) the State Tax Commission.
78 (2) The executive director of the department is chair of the council.
79 (3) (a) A majority of the council members constitutes a quorum.
80 (b) A vote of the majority of the council members present when a quorum is present is
81 an action of the council.
82 (4) The council shall meet at the call of the chair, except that the chair shall call a
83 meeting at least quarterly.
84 (5) The department shall staff the council.
85 Section 5. Section 13-46-202 is enacted to read:
86 13-46-202. Duties of the council.
87 (1) The council shall:
88 (a) direct the design of a database described in Part 3, Independent Contractor
89 Database, so that the database may be accessed by one or more accessing agencies by no later
90 than July 1, 2009;
91 (b) beginning July 1, 2009, meet quarterly:
92 (i) (A) with the attorney general or a designee of the attorney general; and
93 (B) the chair of the State Tax Commission or a designee of the chair; and
94 (ii) (A) to review the most recent results from the database; and
95 (B) to coordinate regulatory and law enforcement efforts; and
96 (c) subject to Subsection (2), report by no later than November 30 of each year
97 concerning the effectiveness of the database to:
98 (i) the governor; and
99 (ii) the Business and Labor Interim Committee.
100 (2) The council may study how to do the following:
101 (a) reduce costs to the state resulting from the misclassification of workers as
102 independent contractors;
103 (b) extend outreach and education efforts regarding the nature and requirements of
104 independent contractor status;
105 (c) promote efficient and effective information sharing amongst the member agencies;
107 (d) coordinate with the Uninsured Motorist Identification Database.
108 (3) (a) The council shall make a report required by this Subsection (3) to the Business
109 and Labor Interim Committee by no later than November 30 of 2008, 2009, 2010, and 2011.
110 (b) As part of the report required by this Subsection (3), the chairs of the Business and
111 Labor Interim Committee shall provide an opportunity to the following to report to the
112 Business Labor Interim Committee on the usefulness of the database:
113 (i) each accessing agency; and
114 (ii) the attorney general.
115 (c) The council shall include in the report required by this Subsection (3):
116 (i) an update on the design, implementation, and operation of the database;
117 (ii) findings regarding the nature and extent of the misclassification of workers as
118 independent contractors in this state;
119 (iii) the results of regulatory and enforcement activities related to the database; and
120 (iv) recommended legislative changes, if any, related to Subsection (2) or this
121 Subsection (3).
122 Section 6. Section 13-46-301 is enacted to read:
124 13-46-301. Creation.
125 (1) (a) By no later than July 1, 2009, the department shall administer a database:
126 (i) designed by the council to share data amongst accessing agencies and the attorney
127 general; and
128 (ii) to be used by an accessing agency to identify when a person:
129 (A) holds that person out as an independent contractor; or
130 (B) engages in the performance of work as an independent contractor not subject to an
131 employer's right to control the person.
132 (b) Notwithstanding Subsection (1)(a), the department may contract in accordance with
133 this chapter with a person other than the department:
134 (i) to the extent necessary to design, implement, or operate the database; and
135 (ii) in a manner consistent with Title 63, Chapter 56, Utah Procurement Code.
136 (c) If the department contracts with a person who is not a government agency to
137 operate the database, the department:
138 (i) shall monitor the operations under the contract; and
139 (ii) ensure that the contract allows for termination of the contract if the person fails to
140 operate the database in accordance with the contract and this chapter.
141 (2) An accessing agency shall cooperate with the department to provide information:
142 (a) to be included in the database; and
143 (b) to the extent that disclosure of the information is otherwise permitted by law other
144 than this chapter.
145 (3) The database shall include a process to compare the information in the database at
146 least monthly to:
147 (a) identify a worker who may be misclassified as an independent contractor;
148 (b) promote employer compliance with state and federal laws related to:
149 (i) withholding taxes;
150 (ii) making payments for Social Security, Medicare, and unemployment insurance;
151 (iii) providing the proper level of workers' compensation insurance;
152 (iv) preventing insurance fraud;
153 (v) paying overtime and minimum wages; and
154 (vi) including a worker in an employee benefit program;
155 (c) reduce employer intentional misclassification of a worker as an independent
156 contractor; and
157 (d) identify identity theft.
158 Section 7. Section 13-46-302 is enacted to read:
159 13-46-302. Confidentiality of information on the database.
160 (1) An accessing agency shall designate who within that accessing agency may access
161 the database.
162 (2) (a) A person not designated under Subsection (1) may not use the database.
163 (b) An individual designated under Subsection (1) may access the database only for a
164 purpose provided for in Section 13-46-301 .
165 (3) The database, and the information in the database, is considered a protected record
166 under Title 63, Chapter 2, Government Records Access and Management Act, except that an
167 accessing agency may disclose the information to a person who is not a person designated
168 under Subsection (1):
169 (a) to the extent necessary to take an administrative action by an accessing agency;
170 (b) to the extent necessary to prosecute a criminal act; or
171 (c) to the extent that the information is:
172 (i) obtainable from a source other than the database; and
173 (ii) permitted to be disclosed by a law other than this chapter.
174 Section 8. Section 13-46-303 is enacted to read:
175 13-46-303. Liability.
176 The state and a person with whom the department contracts under Section 13-46-301 is
177 not liable to any person for:
178 (1) the design, implementation, or operation of the database as provided in this chapter;
180 (2) the collection and disclosure of information in the database as provided in this
182 Section 9. Section 63-55-213 is amended to read:
183 63-55-213. Repeal dates, Title 13.
184 (1) Title 13, Chapter 16, Motor Fuel Marketing Act, is repealed July 1, 2012.
185 (2) Title 13, Chapter 46, Independent Contractor Database Act, is repealed July 1,
Legislative Review Note
as of 1-31-08 11:53 AM