Committee adopts amendment and advances bill requiring contractor declaration of workers' comp at permitting for large projects

Senate Bill 93 was presented as a targeted measure to prevent contractors who lack workers' compensation coverage from gaining a bidding advantage by omitting comp costs. Sponsors and construction-union witnesses described cases of "premium fraud" in which unscrupulous bidders reduced labor-costs and undercut responsible contractors.

Following stakeholder talks the committee adopted amendment L006, which removed much of the local-enforcement burden and instead requires that, prior to commencing work under a permit above a monetary threshold, the applicant file a signed declaration under penalty of perjury that all persons working under the permit (including subcontractors) maintain workers' compensation coverage. The amendment also provides that complaints about compliance be filed with the Division of Workers' Compensation.

Supporters included the Western States Regional Council of Carpenters and contractors who said the change levels the bidding field; local-government risk managers and municipalities had raised concerns about administrative burdens, but sponsors said the amendment addresses those concerns. The committee passed the amended bill to the Committee of the Whole by recorded vote 10-3.

What the amendment does not do: it does not shift primary enforcement duties to local building departments; rather, it creates an attestation requirement at permit submission and an administrative complaint route to CDLE when coverage is alleged to be missing.