H. B. 2254


(By Delegates Linch, Claypole, Caputo,
Butcher and Tillis)


[Introduced February 27, 1997; referred to the

Committee on Finance then the Judiciary.]



A BILL to amend article two, chapter twenty-three of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section one-e, relating to workers' compensation; and the liability of owners and lessees of coal to make premium tax payments to the credit of the workers' compensation fund when a contract miner defaults on the payments.

Be it enacted by the Legislature of West Virginia:
That article two, chapter twenty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section one-e, to read as follows:
ARTICLE 2. EMPLOYERS AND EMPLOYEES SUBJECT TO CHAPTER; EXTRATERRITORIAL COVERAGE.

§23-2-1e. Liability of coal owners and lessees.

(a) For the exclusive purposes of this section, the term "employer" as defined in section one of this article includes any coal owner, lessee or sublessee who contracts with one or more employers which are contract miners of coal. If a contract miner defaults on its obligations to make premium tax payments to the division, the coal owner, lessee or sublessee shall be liable for payment of those premium taxes. If a contract miner defaults on its obligations to make premium tax payments to the division and the lessor of that coal to the contract miner does not make
the payments, then the owner, lessee or subcontractor of the coal is liable for the premium tax payments. For the purposes of this section, the term "owner or lessee of coal" includes any person, firm, association or corporation that is affiliated with, is, or has been, under the common control of, or manages or controls, any person, firm, association or corporation: Provided, That an owner or lessee of coal is not subject to the provisions of sections six, six-a and eight of this article.
(b) The commissioner may take any action authorized under the provisions of section five-a of this article to collect amounts due from the owner or lessee of coal under the provisions of this section.



NOTE: The purpose of this bill is to make owners and lessees of coal liable for the payment of Workers' Compensation premium taxes, when a contract miner defaults on its obligations to pay the premiums.

This section is new; therefore, strike-throughs and underscoring have been omitted.