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HB 212 Extends
Workers Comp Coverage
Murkowski Bill Requires Sole Proprietors to Buy Own Insurance

(JUNEAU) - The House unanimously passed legislation today to require all contractors and subcontractors in Alaska to carry workman's compensation insurance.

Sponsored by the House Labor and Commerce Committee, House Bill 212 would close a loophole in state law that allows sole proprietorship contractors to work without insurance. Current law requires contractors to provide insurance for their employees and for the employees of their subcontractors who don't already have coverage.

"It is a question of fairness and safety," said Rep. Lisa Murkowski (R-Anchorage), chair of the Labor and Commerce Committee. "Sole proprietorship subcontractors can skip the cost of insurance and bid lower on jobs, but if they get hurt at work the general contractor may have to pay the medical expenses anyway. This bill gives parity to all parties."

While acknowledging the bill would result in slightly higher labor costs, Murkowski said they would be offset by the benefits of extending insurance coverage to more workers in an industry in which job-related injuries are not uncommon.

With an effective date of Jan. 1, 2002, the bill would also provide sufficient advance notice to the construction industry on who will be responsible for providing workers' compensation insurance, and allow plenty of time for affected subcontractors to build the cost of such insurance into their bids for the next season's work, Murkowski said.

HB 212 moves next to the Senate for consideration.

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Attachments:

• Sponsor Statement for HB 212
• Print Friendly Version
  requires Adobe Acrobat Reader - 1 page(s) - 111 K

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