1     
WORKERS' COMPENSATION COVERAGE AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Rex P. Shipp

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to workers' compensation coverage.
10     Highlighted Provisions:
11          This bill:
12          ▸     provides that a partnership or a sole proprietorship is not required to provide
13     workers' compensation coverage for a minor employee who is a child of a partner of
14     the partnership or an owner of the sole proprietorship; and
15          ▸     make technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          34A-2-102, as last amended by Laws of Utah 2017, Chapter 363
23          34A-2-104, as last amended by Laws of Utah 2017, Chapter 146
24          34A-2-704, as last amended by Laws of Utah 2018, Chapter 207
25          34A-2-1003, as last amended by Laws of Utah 2017, Chapter 146
26     

27     Be it enacted by the Legislature of the state of Utah:

28          Section 1. Section 34A-2-102 is amended to read:
29          34A-2-102. Definition of terms.
30          (1) As used in this chapter:
31          (a) "Average weekly wages" means the average weekly wages as determined under
32     Section 34A-2-409.
33          (b) "Award" means a final order of the commission as to the amount of compensation
34     due:
35          (i) an injured employee; or
36          (ii) a dependent of a deceased employee.
37          (c) "Compensation" means the payments and benefits provided for in this chapter or
38     Chapter 3, Utah Occupational Disease Act.
39          (d) (i) "Decision" means a ruling of:
40          (A) an administrative law judge; or
41          (B) in accordance with Section 34A-2-801:
42          (I) the commissioner; or
43          (II) the Appeals Board.
44          (ii) "Decision" includes:
45          (A) an award or denial of a medical, disability, death, or other related benefit under this
46     chapter or Chapter 3, Utah Occupational Disease Act; or
47          (B) another adjudicative ruling in accordance with this chapter or Chapter 3, Utah
48     Occupational Disease Act.
49          (e) "Director" means the director of the division, unless the context requires otherwise.
50          (f) "Disability" means an administrative determination that may result in an entitlement
51     to compensation as a consequence of becoming medically impaired as to function. Disability
52     can be total or partial, temporary or permanent, industrial or nonindustrial.
53          (g) "Division" means the Division of Industrial Accidents.
54          (h) "Impairment" is a purely medical condition reflecting an anatomical or functional
55     abnormality or loss. Impairment may be either temporary or permanent, industrial or
56     nonindustrial.
57          (i) "Minor" means an individual who is less than 18 years of age.
58          [(i)] (j) "Order" means an action of the commission that determines the legal rights,

59     duties, privileges, immunities, or other interests of one or more specific persons, but not a class
60     of persons.
61          [(j)] (k) (i) "Personal injury by accident arising out of and in the course of
62     employment" includes an injury caused by the willful act of a third person directed against an
63     employee because of the employee's employment.
64          (ii) "Personal injury by accident arising out of and in the course of employment" does
65     not include a disease, except as the disease results from the injury.
66          [(k)] (l) "Safe" and "safety," as applied to employment or a place of employment,
67     means the freedom from danger to the life or health of employees reasonably permitted by the
68     nature of the employment.
69          (2) As used in this chapter and Chapter 3, Utah Occupational Disease Act:
70          (a) "Brother or sister" includes a half brother or sister.
71          (b) "Child" includes:
72          (i) a posthumous child; or
73          (ii) a child legally adopted prior to an injury.
74          Section 2. Section 34A-2-104 is amended to read:
75          34A-2-104. "Employee," "worker," and "operative" defined -- Specific
76     circumstances -- Exemptions.
77          (1) As used in this chapter and Chapter 3, Utah Occupational Disease Act, "employee,"
78     "worker," and "operative" mean:
79          (a) (i) an elective or appointive officer and any other person:
80          (A) in the service of:
81          (I) the state;
82          (II) a county, city, or town within the state; or
83          (III) a school district within the state;
84          (B) serving the state, or any county, city, town, or school district under:
85          (I) an election;
86          (II) appointment; or
87          (III) any contract of hire, express or implied, written or oral; and
88          (ii) including:
89          (A) an officer or employee of the state institutions of learning; and

90          (B) a member of the National Guard while on state active duty; and
91          (b) a person in the service of any employer, as defined in Section 34A-2-103, who
92     employs one or more workers or operatives regularly in the same business, or in or about the
93     same establishment:
94          (i) under any contract of hire:
95          (A) express or implied; and
96          (B) oral or written;
97          (ii) including aliens and minors, whether legally or illegally working for hire; and
98          (iii) not including any person whose employment:
99          (A) is casual; and
100          (B) not in the usual course of the trade, business, or occupation of the employee's
101     employer.
102          (2) (a) Unless a lessee provides coverage as an employer under this chapter and
103     Chapter 3, Utah Occupational Disease Act, any lessee in mines or of mining property and each
104     employee and sublessee of the lessee shall be:
105          (i) covered for compensation by the lessor under this chapter and Chapter 3, Utah
106     Occupational Disease Act;
107          (ii) subject to this chapter and Chapter 3, Utah Occupational Disease Act; and
108          (iii) entitled to the benefits of this chapter and Chapter 3, Utah Occupational Disease
109     Act, to the same extent as if the lessee, employee, or sublessee were employees of the lessor
110     drawing the wages paid employees for substantially similar work.
111          (b) The lessor may deduct from the proceeds of ores mined by the lessees an amount
112     equal to the insurance premium for that type of work.
113          (3) (a) (i) Except as provided in Subsection (3)(b), a partnership or sole proprietorship
114     may elect to include [any partner of the partnership or owner of the sole proprietorship] any of
115     the following as an employee of the partnership or sole proprietorship under this chapter and
116     Chapter 3, Utah Occupational Disease Act[.]:
117          (A) any partner of the partnership;
118          (B) any owner of the sole proprietorship; or
119          (C) a minor employed by a partnership or a sole proprietorship who is a child of a
120     partner of the partnership or an owner of the sole proprietorship.

121          (ii) If a partnership or sole proprietorship makes an election under Subsection (3)(a),
122     the partnership or sole proprietorship shall serve written notice upon its insurance carrier
123     naming the persons to be covered.
124          (iii) [A partner of a partnership or owner of a sole proprietorship] An individual
125     described in Subsection (3)(a)(i) may not be considered an employee of the [partner's]
126     partnership or [the owner's] sole proprietorship under this chapter or Chapter 3, Utah
127     Occupational Disease Act, until the notice described in Subsection (3)(a)(ii) is given.
128          (iv) For premium rate making, the insurance carrier shall assume the salary or wage of
129     the [partner or sole proprietor electing] individual for whom the partnership or sole
130     proprietorship elects coverage under Subsection (3)(a)(i) to be 100% of the state's average
131     weekly wage.
132          (b) A partner of a partnership or an owner of a sole proprietorship is an employee of
133     the partnership or sole proprietorship under this chapter and Chapter 3, Utah Occupational
134     Disease Act, if:
135          (i) the partnership or sole proprietorship:
136          (A) is a motor carrier; and
137          (B) employs at least one individual who is not a partner or an owner; and
138          (ii) the partner or owner personally operates a motor vehicle for the motor carrier.
139          (4) (a) Except as provided in Subsection (4)(g), a corporation may elect not to include
140     any director or officer of the corporation as an employee under this chapter and Chapter 3, Utah
141     Occupational Disease Act.
142          (b) If a corporation makes an election under Subsection (4)(a), the corporation shall
143     serve written notice naming the individuals who are directors or officers to be excluded from
144     coverage:
145          (i) upon its insurance carrier, if any; or
146          (ii) upon the commission if the corporation is self-insured or has no employee other
147     than the one or more directors or officers being excluded.
148          (c) A corporation may exclude no more than five individuals who are directors or
149     officers under Subsection (4)(b)(ii).
150          (d) An exclusion under this Subsection (4) is subject to Subsection 34A-2-103(7)(d).
151          (e) A director or officer of a corporation is considered an employee under this chapter

152     and Chapter 3, Utah Occupational Disease Act, until the notice described in Subsection (4)(b)
153     is given.
154          (f) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
155     Administrative Rulemaking Act, regarding the form of the notice described in Subsection
156     (4)(b)(ii), including a requirement to provide documentation, if any.
157          (g) Subsection (4)(a) does not apply to a director or an officer of a motor carrier if the
158     director or officer personally operates a motor vehicle for the motor carrier.
159          (5) As used in this chapter and Chapter 3, Utah Occupational Disease Act, "employee,"
160     "worker," and "operative" do not include:
161          (a) a sales agent or associate broker, as defined in Section 61-2f-102, who performs
162     services in that capacity for a principal broker if:
163          (i) substantially all of the sales agent's or associate broker's income for services is from
164     real estate commissions; and
165          (ii) the sales agent's or associate broker's services are performed under a written
166     contract that provides that:
167          (A) the real estate agent is an independent contractor; and
168          (B) the sales agent or associate broker is not to be treated as an employee for federal
169     income tax purposes;
170          (b) an offender performing labor under Section 64-13-16 or 64-13-19, except as
171     required by federal statute or regulation;
172          (c) an individual who for an insurance producer, as defined in Section 31A-1-301,
173     solicits, negotiates, places, or procures insurance if:
174          (i) substantially all of the individual's income from those services is from insurance
175     commissions; and
176          (ii) the services of the individual are performed under a written contract that states that
177     the individual:
178          (A) is an independent contractor;
179          (B) is not to be treated as an employee for federal income tax purposes; and
180          (C) can derive income from more than one insurance company; [or]
181          (d) subject to Subsections (6), (7), and (8), an individual who:
182          (i) (A) owns a motor vehicle; or

183          (B) leases a motor vehicle to a motor carrier;
184          (ii) personally operates the motor vehicle described in Subsection (5)(d)(i);
185          (iii) operates the motor vehicle described in Subsection (5)(d)(i) under a written
186     agreement with the motor carrier that states that the individual operates the motor vehicle as an
187     independent contractor; and
188          (iv) (A) provides to the motor carrier at the time the written agreement described in
189     Subsection (5)(d)(iii) is executed or as soon after the execution as provided by the commission,
190     a copy of a workers' compensation coverage waiver issued pursuant to Part 10, Workers'
191     Compensation Coverage Waivers Act, to the individual; and
192          (B) provides to the motor carrier at the time the written agreement described in
193     Subsection (5)(d)(iii) is executed or as soon after the execution as provided by an insurer, proof
194     that the individual is covered by occupational accident related insurance with the coverage and
195     benefit limits listed in Subsection (7)(c)[.]; or
196          (e) a minor employed by a partnership or a sole proprietorship, if the minor is a child of
197     a partner of the partnership or an owner of the sole proprietorship.
198          (6) An individual described in Subsection (5)(d) may become an employee under this
199     chapter and Chapter 3, Utah Occupational Disease Act, if the employer of the individual
200     complies with:
201          (a) this chapter and Chapter 3, Utah Occupational Disease Act; and
202          (b) commission rules.
203          (7) As used in this section:
204          (a) "Motor carrier" means a person engaged in the business of transporting freight,
205     merchandise, or other property by a commercial vehicle on a highway within this state.
206          (b) "Motor vehicle" means a self-propelled vehicle intended primarily for use and
207     operation on the highways, including a trailer or semitrailer designed for use with another
208     motorized vehicle.
209          (c) "Occupational accident related insurance" means insurance that provides the
210     following coverage at a minimum aggregate policy limit of $1,000,000 for all benefits paid,
211     including medical expense benefits, for an injury sustained in the course of working under a
212     written agreement described in Subsection (5)(d)(iii):
213          (i) disability benefits;

214          (ii) death benefits; and
215          (iii) medical expense benefits, which include:
216          (A) hospital coverage;
217          (B) surgical coverage;
218          (C) prescription drug coverage; and
219          (D) dental coverage.
220          (8) For an individual described in Subsection (5)(d):
221          (a) if the individual is not covered by a workers' compensation policy, the individual
222     shall obtain:
223          (i) occupational accident related insurance; and
224          (ii) a waiver in accordance with Part 10, Workers' Compensation Coverage Waivers
225     Act; and
226          (b) the commission shall verify the existence of occupational accident insurance
227     coverage with the coverage and benefit limits listed in Subsection (7)(c) before the commission
228     may issue a workers' compensation coverage waiver to the individual pursuant to Part 10,
229     Workers' Compensation Coverage Waivers Act.
230          Section 3. Section 34A-2-704 is amended to read:
231          34A-2-704. Uninsured Employers' Fund.
232          (1) (a) There is created an Uninsured Employers' Fund. The Uninsured Employers'
233     Fund has the purpose of assisting in the payment of workers' compensation benefits to a person
234     entitled to the benefits, if:
235          (i) that person's employer:
236          (A) is individually, jointly, or severally liable to pay the benefits; and
237          (B) (I) becomes or is insolvent;
238          (II) appoints or has appointed a receiver; or
239          (III) otherwise does not have sufficient funds, insurance, sureties, or other security to
240     cover workers' compensation liabilities; and
241          (ii) the employment relationship between that person and the person's employer is
242     localized within the state as provided in Subsection (20).
243          (b) The Uninsured Employers' Fund succeeds to money previously held in the Default
244     Indemnity Fund.

245          (c) If it becomes necessary to pay benefits, the Uninsured Employers' Fund is liable for
246     the obligations of the employer set forth in this chapter and Chapter 3, Utah Occupational
247     Disease Act, with the exception of a penalty on those obligations.
248          (2) (a) Money for the Uninsured Employers' Fund shall be deposited into the Uninsured
249     Employers' Fund in accordance with this chapter, Subsection 59-9-101(2), and Subsection
250     34A-2-213(3).
251          (b) The commissioner shall appoint an administrator of the Uninsured Employers'
252     Fund.
253          (c) (i) The state treasurer is the custodian of the Uninsured Employers' Fund.
254          (ii) The administrator shall make provisions for and direct distribution from the
255     Uninsured Employers' Fund.
256          (3) Reasonable costs of administering the Uninsured Employers' Fund or other fees
257     required to be paid by the Uninsured Employers' Fund may be paid from the Uninsured
258     Employers' Fund.
259          (4) The state treasurer shall:
260          (a) receive workers' compensation premium assessments from the State Tax
261     Commission; and
262          (b) invest the Uninsured Employers' Fund to ensure maximum investment return for
263     both long and short term investments in accordance with Section 34A-2-706.
264          (5) (a) The administrator may employ, retain, or appoint counsel to represent the
265     Uninsured Employers' Fund in a proceeding brought to enforce a claim against or on behalf of
266     the Uninsured Employers' Fund.
267          (b) If requested by the commission, the following shall aid in the representation of the
268     Uninsured Employers' Fund:
269          (i) the attorney general; or
270          (ii) the city attorney, or county attorney of the locality in which:
271          (A) an investigation, hearing, or trial under this chapter or Chapter 3, Utah
272     Occupational Disease Act, is pending;
273          (B) the employee resides; or
274          (C) an employer:
275          (I) resides; or

276          (II) is doing business.
277          (c) (i) Notwithstanding Title 63A, Chapter 3, Part 5, Office of State Debt Collection,
278     the administrator shall provide for the collection of money required to be deposited in the
279     Uninsured Employers' Fund under this chapter and Chapter 3, Utah Occupational Disease Act.
280          (ii) To comply with Subsection (5)(c)(i), the administrator may:
281          (A) take appropriate action, including docketing an award in a manner consistent with
282     Section 34A-2-212; and
283          (B) employ counsel and other personnel necessary to collect the money described in
284     Subsection (5)(c)(i).
285          (6) To the extent of the compensation and other benefits paid or payable to or on behalf
286     of an employee or the employee's dependents from the Uninsured Employers' Fund, the
287     Uninsured Employers' Fund, by subrogation, has the rights, powers, and benefits of the
288     employee or the employee's dependents against the employer failing to make the compensation
289     payments.
290          (7) (a) The receiver, trustee, liquidator, or statutory successor of an employer meeting a
291     condition listed in Subsection (1)(a)(i)(B) is bound by a settlement of a covered claim by the
292     Uninsured Employers' Fund.
293          (b) A court with jurisdiction shall grant a payment made under this section a priority
294     equal to that to which the claimant would have been entitled in the absence of this section
295     against the assets of the employer meeting a condition listed in Subsection (1)(a)(i)(B).
296          (c) The expenses of the Uninsured Employers' Fund in handling a claim shall be
297     accorded the same priority as the liquidator's expenses.
298          (8) (a) The administrator shall periodically file the information described in Subsection
299     (8)(b) with the receiver, trustee, or liquidator of:
300          (i) an employer that meets a condition listed in Subsection (1)(a)(i)(B);
301          (ii) a public agency insurance mutual, as defined in Section 31A-1-103, that meets a
302     condition listed in Subsection (1)(a)(i)(B); or
303          (iii) an insolvent insurance carrier.
304          (b) The information required to be filed under Subsection (8)(a) is:
305          (i) a statement of the covered claims paid by the Uninsured Employers' Fund; and
306          (ii) an estimate of anticipated claims against the Uninsured Employers' Fund.

307          (c) A filing under this Subsection (8) preserves the rights of the Uninsured Employers'
308     Fund for claims against the assets of the employer that meets a condition listed in Subsection
309     (1)(a)(i)(B).
310          (9) When an injury or death for which compensation is payable from the Uninsured
311     Employers' Fund has been caused by the wrongful act or neglect of another person not in the
312     same employment, the Uninsured Employers' Fund has the same rights as allowed under
313     Section 34A-2-106.
314          (10) The Uninsured Employers' Fund, subject to approval of the administrator, shall
315     discharge its obligations by:
316          (a) adjusting its own claims; or
317          (b) contracting with an adjusting company, risk management company, insurance
318     company, or other company that has expertise and capabilities in adjusting and paying workers'
319     compensation claims.
320          (11) (a) For the purpose of maintaining the Uninsured Employers' Fund, an
321     administrative law judge, upon rendering a decision with respect to a claim for workers'
322     compensation benefits in which an employer that meets a condition listed in Subsection
323     (1)(a)(i)(B) is duly joined as a party, shall:
324          (i) order the employer that meets a condition listed in Subsection (1)(a)(i)(B) to
325     reimburse the Uninsured Employers' Fund for the benefits paid to or on behalf of an injured
326     employee by the Uninsured Employers' Fund along with interest, costs, and attorney fees; and
327          (ii) impose a penalty against the employer that meets a condition listed in Subsection
328     (1)(a)(i)(B):
329          (A) of 15% of the value of the total award in connection with the claim; and
330          (B) that shall be deposited into the Uninsured Employers' Fund.
331          (b) An award under this Subsection (11) shall be collected by the administrator in
332     accordance with Subsection (5)(c).
333          (12) The state, the commission, and the state treasurer, with respect to payment of
334     compensation benefits, expenses, fees, or disbursement properly chargeable against the
335     Uninsured Employers' Fund:
336          (a) are liable only to the assets in the Uninsured Employers' Fund; and
337          (b) are not otherwise in any way liable for the making of a payment.

338          (13) The commission may make reasonable rules for the processing and payment of a
339     claim for compensation from the Uninsured Employers' Fund.
340          (14) (a) (i) If it becomes necessary for the Uninsured Employers' Fund to pay benefits
341     under this section to an employee described in Subsection (14)(a)(ii), the Uninsured Employers'
342     Fund may assess all other self-insured employers amounts necessary to pay:
343          (A) the obligations of the Uninsured Employers' Fund subsequent to a condition listed
344     in Subsection (1)(a)(i)(B) occurring;
345          (B) the expenses of handling covered a claim subsequent to a condition listed in
346     Subsection (1)(a)(i)(B) occurring;
347          (C) the cost of an examination under Subsection (15); and
348          (D) other expenses authorized by this section.
349          (ii) This Subsection (14) applies to benefits paid to an employee of:
350          (A) a self-insured employer, as defined in Section 34A-2-201.5, that meets a condition
351     listed in Subsection (1)(a)(i)(B); or
352          (B) if the self-insured employer that meets a condition described in Subsection
353     (1)(a)(i)(B) is a public agency insurance mutual, a member of the public agency insurance
354     mutual.
355          (b) The assessments of a self-insured employer shall be in the proportion that the
356     manual premium of the self-insured employer for the preceding calendar year bears to the
357     manual premium of all self-insured employers for the preceding calendar year.
358          (c) A self-insured employer shall be notified of the self-insured employer's assessment
359     not later than 30 days before the day on which the assessment is due.
360          (d) (i) A self-insured employer may not be assessed in any year an amount greater than
361     2% of that self-insured employer's manual premium for the preceding calendar year.
362          (ii) If the maximum assessment does not provide in a year an amount sufficient to
363     make all necessary payments from the Uninsured Employers' Fund for one or more self-insured
364     employers that meet a condition listed in Subsection (1)(a)(i)(B), the unpaid portion shall be
365     paid as soon as money becomes available.
366          (e) A self-insured employer is liable under this section for a period not to exceed three
367     years after the day on which the Uninsured Employers' Fund first pays benefits to an employee
368     described in Subsection (14)(a)(ii) for the self-insured employer that meets a condition listed in

369     Subsection (1)(a)(i)(B).
370          (f) This Subsection (14) does not apply to a claim made against a self-insured employer
371     that meets a condition listed in Subsection (1)(a)(i)(B) if the condition listed in Subsection
372     (1)(a)(i)(B) occurred before July 1, 1986.
373          (15) (a) The following shall notify the division of any information indicating that any
374     of the following may be insolvent or in a financial condition hazardous to its employees or the
375     public:
376          (i) a self-insured employer; or
377          (ii) if the self-insured employer is a public agency insurance mutual, a member of the
378     public agency insurance mutual.
379          (b) Upon receipt of the notification described in Subsection (15)(a) and with good
380     cause appearing, the division may order an examination of:
381          (i) that self-insured employer; or
382          (ii) if the self-insured employer is a public agency insurance mutual, a member of the
383     public agency mutual.
384          (c) The cost of the examination ordered under Subsection (15)(b) shall be assessed
385     against all self-insured employers as provided in Subsection (14).
386          (d) The results of the examination ordered under Subsection (15)(b) shall be kept
387     confidential.
388          (16) (a) In a claim against an employer by the Uninsured Employers' Fund, or by or on
389     behalf of the employee to whom or to whose dependents compensation and other benefits are
390     paid or payable from the Uninsured Employers' Fund, the burden of proof is on the employer or
391     other party in interest objecting to the claim.
392          (b) A claim described in Subsection (16)(a) is presumed to be valid up to the full
393     amount of workers' compensation benefits claimed by the employee or the employee's
394     dependents.
395          (c) This Subsection (16) applies whether the claim is filed in court or in an adjudicative
396     proceeding under the authority of the commission.
397          (17) A partner in a partnership [or], an owner of a sole proprietorship, or a minor
398     employed by a partnership or a sole proprietorship who is a child of a partner of the partnership
399     or an owner of the sole proprietorship may not recover compensation or other benefits from the

400     Uninsured Employers' Fund if:
401          (a) the person is not included as an employee under Subsection 34A-2-104(3); or
402          (b) the person is included as an employee under Subsection 34A-2-104(3), but:
403          (i) the person's employer fails to insure or otherwise provide adequate payment of
404     direct compensation; and
405          (ii) the failure described in Subsection (17)(b)(i) is attributable to an act or omission
406     over which the person had or shared control or responsibility.
407          (18) A director or officer of a corporation may not recover compensation or other
408     benefits from the Uninsured Employers' Fund if the director or officer is excluded from
409     coverage under Subsection 34A-2-104(4).
410          (19) The Uninsured Employers' Fund:
411          (a) shall be:
412          (i) used in accordance with this section only for:
413          (A) the purpose of assisting in the payment of workers' compensation benefits in
414     accordance with Subsection (1); and
415          (B) in accordance with Subsection (3), payment of:
416          (I) reasonable costs of administering the Uninsured Employers' Fund; or
417          (II) fees required to be paid by the Uninsured Employers' Fund; and
418          (ii) expended according to processes that can be verified by audit; and
419          (b) may not be used for:
420          (i) administrative costs unrelated to the Uninsured Employers' Fund; or
421          (ii) an activity of the commission other than an activity described in Subsection (19)(a).
422          (20) (a) For purposes of Subsection (1), an employment relationship is localized in the
423     state if:
424          (i) (A) the employer who is liable for the benefits has a business premise in the state;
425     and
426          (B) (I) the contract for hire is entered into in the state; or
427          (II) the employee regularly performs work duties in the state for the employer who is
428     liable for the benefits; or
429          (ii) the employee is:
430          (A) a resident of the state; and

431          (B) regularly performs work duties in the state for the employer who is liable for the
432     benefits.
433          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
434     commission shall by rule define what constitutes regularly performing work duties in the state.
435          Section 4. Section 34A-2-1003 is amended to read:
436          34A-2-1003. Issuance of a waiver.
437          (1) The commission shall issue a workers' compensation coverage waiver to a business
438     entity that:
439          (a) elects not to include an owner, a partner, [or] a minor child of an owner or a
440     partner, or a corporate officer or director as an employee under a workers' compensation policy
441     in accordance with Section 34A-2-103 and Subsection 34A-2-104(3) or (4);
442          (b) employs no other employee on the day on which the commission issues the waiver
443     to the business entity;
444          (c) provides to the commission the information required by Section 34A-2-1004; and
445          (d) pays a fee established by the commission in accordance with Section 63J-1-504,
446     except that the fee may not exceed $50.
447          (2) (a) A waiver issued under this section expires one year from the day on which it is
448     issued unless renewed by the holder of the waiver.
449          (b) To renew a waiver issued under this part, the holder of the waiver shall:
450          (i) employ no other employee on the day on which the commission renews the waiver;
451          (ii) provide to the commission the information required by Section 34A-2-1004; and
452          (iii) pay a fee established by the commission in accordance with Section 63J-1-504,
453     except that the fee may not exceed $50.
454          (3) As of the day on which a business entity described in Subsection (1) employs an
455     employee other than an owner, partner, or corporate officer or director described in Subsection
456     (1)(a):
457          (a) the business entity's waiver is invalid; and
458          (b) the business entity is required to provide workers' compensation coverage for that
459     employee in accordance with Section 34A-2-201.
460          (4) The commission shall deposit a fee collected under this section in the Industrial
461     Accident Restricted Account created in Section 34A-2-705.

462          (5) Unless invalidated under Section 34A-2-1005, notwithstanding the other provisions
463     of this section, a waiver issued by an insurer that is valid on June 30, 2011, remains valid until
464     its expiration date.