An Act To Require the Posting of Proof of Workers' Compensation Insurance at Construction Sites
Maine Legislature, Session 123, LD 0522
Committee: Labor
Sponsors: CLARK, STRIMLING, BURNS, JACKSON, PATRICK, TUTTLE, WATSON
Amends: 39-A MRSA §154, 39-A MRSA §324, 39-A MRSA §406

Legislative Document 
No. 522 
H.P.400 
House of Representatives, February 2, 2007 
An Act To Require the Posting of Proof of Workers' Compensation 
Insurance at Construction Sites 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Representative CLARK of Millinocket. 
Cosponsored by Senator STRIMLING of Cumberland and 
/J'l~frl.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BURNS of Berwick, JACKSON of Allagash, PATRICK of Rumford, 
TUTTLE of Sanford, WATSON of Bath. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 39-A MRS A §153, sub-§5, ~ 
is enacted to read: 
F. 
In addition to the abuse investigators appointed under paragraph A, the board 
shall appoint, pursuant to Title 5, chapter 372, at least one abuse investigator who 
must be qualified by experience and training to perform the duties of investigating 
violations of section 324, subsection 3 and section 406 by a contractor and on a 
construction site. 
Sec. 2. 39-A MRSA §154, sub-§l, as enacted by PL 1991, c. 885, Pt. A, §8 and 
affected by §§9 to 11, is amended to read: 
1. 
Use of fund. 
All money credited to the Workers' Compensation Board 
Administrative Fund must be used to support the activities of the board and for no other 
purpose, except that funds received pursuant to section 324, subsection 3, paragraph B 
and section 406 must be used to support the provisions of section 153, subsection 5, 
paragraph F. Any balance remaining continues from year to year as a fund available for 
the purposes set out in this section and for no other purpose. 
Sec. 3. 39-A MRSA §324, sub-§3, as amended by PL 2003, c. 344, Pt. D, §28, is 
further amended to read: 
3. Failure to secure payment. If any employer who is required to secure the 
payment to that employer's employees of the compensation provided for by this Act fails 
to do so, the employer is subject to the penalties set out in paragraphs A, B aRtl~ C and D. 
The failure of any employer to procure insurance coverage for the payment of 
compensation and other benefits to the employer's employees in compliance with sections 
and 403 constitutes a failure to secure payment of compensation within the meaning 
of this subsection. 
A. 
The employer is guilty of a Class D crime. 
B. 
The employer is liable to pay a civil penalty of up to $10,000 or an amount equal 
to 108% of the premium, calculated using Maine Employers' Mutual Insurance 
Company's standard discounted standard premium, that should have been paid during 
the period the employer failed to secure coverage, whichever is larger, payable to the 
EfHfJ10ymeRt Re!:tabilitatioR YI:IRd Workers' Compensation Board Administrative 
Fund established in section 154. 
C. 
The employer, if organized as a corporation, is subject to administrative 
dissolution as provided in Title 13-C, section 1421 or revocation of its authority to do 
business in this State as provided in Title 13-C, section 1532. The employer, if 
licensed, certified, registered or regulated by any board authorized by Title 5, section 
12004-A or whose license may be revoked or suspended by proceedings in the 
District Court or by the Secretary of State, is subject to revocation or suspension of 
the license, certification or registration. 
D. 
If an abuse investigator under section 153, subsection 5 presents evidence at a 
hearing conducted by the audit, enforcement and monitoring program established 
Page I - 123LR2014(Ol)-1 
pursuant to section 153, subsection 9 that an employer that is a contractor at a 
construction site is in violation of this section, the audit, enforcement and monitoring 
program may order that work be stopped at that construction site until the provisions 
of this section have been satisfied. 
Prosecution under paragraph A does not preclude action under paragraph B ef, C or D. 
If the employer is a corporation, any agent of the corporation having primary 
responsibility for obtaining insurance coverage is liable for punishment under this 
section. Criminal liability must be determined in conformity with Title 17-A, sections 60 
and 61. 
Sec. 4. 39-A MRSA §406, as enacted by PL 1991, c. 885, Pt. A, §8 and affected 
by §§9 to 11, is amended to read: 
§406. Notices of assent to be posted 
A notice in a form as the board approves, stating that the notice is proof of insurance 
and that the employer has conformed to this Act, together with other information as the 
board determines, must be posted by the employer and kept posted by the employer in 
each of the employer's mills, factories, construction sites or places of business. The 
notice must be conspicuous and posted in a place accessible to the employer's employees 
as determined by the board. A person who violates this section commits a civil violation 
for which a fine of $100 must be adjudged. The proceeds of a fine under this section 
must be deposited into the Workers' Compensation Board Administrative Fund 
established in section 154. 
SUMMARY 
This bill: 
1. 
Requires that the Workers' Compensation Board hire an abuse investigator to 
investigate whether contractors on construction sites provide workers' compensation 
insurance coverage and are posting notices as required by the Maine Workers' 
Compensation Act of 1992; 
2. Dedicates to the Workers' Compensation Board Administrative Fund the proceeds 
of fines for employers' failure to provide workers' compensation insurance coverage and 
post notices as required by the Maine Workers' Compensation Act of 1992 to fund the 
1 
abuse investigator; 
3. Redirects funds from penalties paid for failure to provide workers' compensation 
insurance coverage from the Employment Rehabilitation Fund to the Workers' 
Compensation Board Administrative Fund; 
4. Allows the workers' compensation audit, enforcement and monitoring program to 
stop work at a construction site if a contractor on the site has failed to provide workers' 
compensation insurance coverage; 
I 
5. Requires that employers post a Workers' Compensation Board-approved notice of 
proof of workers' compensation insurance coverage in a conspicuous place at the 
employers' places of business, including constructjon sites; and 
6. 
Makes failure to post a notice of proof of workers' compensation Insurance 
coverage a civil violation for which a $100 fine must be adjUdged.