An Act To
Maine Legislature, Session 124, LD 1565
Committee Amendment CA_A_H746 (House)
Amends: 39-A MRSA §105-A

COMMITTEE AMENDMENT "fj" to H.P. 1102, L.D. 1565, Bill, "An Act To 
Amend the Laws Governing the Knowing Misclassification of Construction Workers" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Amend the Laws Governing the Misclassification of Construction 
Wor){ers' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 39-A MRSA §105-A, sub-§5 is enacted to read: 
5. 
Stop-wor){ orders. 
In addition to any penalty imposed under section 324, 
subsection 3, if after a hearing the executive director determines that a hiring agent or 
construction subcontractor has failed to secure the payment to that hiring agent's or 
construction subcontractor's employees of the compensation provided for by this Act, the 
executive director or the executive director's designee shall issue a stop-work order 
pursuant to this subsection. 
A. A hiring agent or construction subcontractor must receive at least 48 hours' notice 
of a hearing regarding a stop-work order. 
B. If the executive director or the executive director's designee finds at the hearing 
that the hiring agent or construction subcontractor failed to provide a workers' 
compensation insurance policy, . misrepresented one or more employees as 
independent contractors or provided false, incomplete or misleading information to 
the board concerning the number of employees, the executive director or the 
executive director's designee shall issue a stop-work order effective immediately on 
the conclusion of the hearing. 
C. A stop-work order issued pursuant to this subsection remains in effect until the 
executive director or the executive director's designee issues an order releasing the 
stop-work order upon finding that the hiring agent or construction subcontractor has 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT '·A" to H.P. 1102, L.D. 1565 
come into compliance with the requirements of this subsection and has paid any 
penalty assessed under section 324, subsection 3. 
D. A stop-work order issued pursuant to this subsection against a hiring agent or 
construction subcontractor applies to any successor firm, corporation or partnership 
of the hiring agent or construction subcontractor in the same manner as it applies to 
the hiring agent or construction subcontractor. 
Sec. 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
WORKERS' COMPENSATION BOARD 
Administration - Wori{ers' Compensation Board 0183 
Initiative: 
Allocates funds 
to 
enhance enforcement of laws 
prohibiting the 
misclassification of workers by establishing one Management Analyst II position at range 
and one Auditor III position at range 25. Notwithstanding any other provision of law, 
the Management Analyst II position and the Auditor III position must be funded from the 
Workers' Compensation Board's reserve account pursuant to the Maine Revised Statutes, 
Title 39-A, section 154, subsection 6, paragraph B. 
OTHER SPECIAL REVENUE FUNDS 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
OTHER SPECIAL REVENUE FUNDS TOTAL 
SUMMARY 
2009-10 
0.000 
$0 
$0 
2010-11 
2.000 
$161,773 
$161,773 
This amendment, which is the majority report of the committee, authorizes the 
Executive Director of the Workers' Compensation Board or the executive director's 
designee, to issue a stop-work order after a hearing if a hiring agent or construction 
subcontractor misrepresented one or more employees as independent contractors, failed 
to provide a workers' compensation insurance policy or provided false, incomplete or 
misleading information to the Workers' Compensation Board concerning the number of 
employees. The executive director must give the hiring agent or construction 
subcontractor 48 hours' notice before the stop-work order hearing. The amendment also 
includes an appropriations and allocations section to cover enforcement. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 03/11110 frac.. 
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LD 1565 
LR 2254(02) 
Au Act To Amend the Laws Governing the Knowing Misclassification of Construction Wo.·kers 
Fiscal Note fo .. Bill as Amended by Committee Amendment .p .. 
Committee: Labor 
Fiscal Note Required: Yes 
Appropriations/Allocations 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note 
2009-10 
$0 
2010-11 
$161,773 
Pmjections 
2011-12 
$166,756 
l)m,iections 
2012-13 
$171 ,892 
This bill includes an Other Special Revenue Funds allocation of$161,773 in fiscal year 2010-11 to the Workers' 
Compensation Board for one Management Analyst II position and one Auditor III position in order to enhance the 
enforcement oflaws prohibi ting the misclassification of workers. This bill includes language that provides that both 
positions be funded on an ongoing basis by monies in the Workers' Compensation Board's Reserve Account. The cash 
balance in the Reserve Account as of March 9, 2010 is $2,188,742. 
LR2254(02) - Fiscal Note - Page I of I