ENROLLED
H. B. 4672
(By Delegates Michael, Boggs, Warner, Browning
Cann, H. White and G. White)
[Passed March 12, 2004; in effect from passage.]
AN ACT to amend and reenact §31B-12-1207 of the code of West
Virginia, 1931, as amended, relating to calculation of
workers' compensation premiums for members of limited
liability companies; and clarifying that workers' compensation
coverage is not required for a person who is a member solely
as an investor.
Be it enacted by the Legislature of West Virginia:
That §31B-12-1207 of the code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 12. MISCELLANEOUS PROVISIONS.
§31B-12-1207. Equality of workers' compensation treatment.
(a) Notwithstanding any provision of subdivision (3),
subsection (g), section one, article two, chapter twenty-three of
this code to the contrary, all covered members of limited liability
companies which are treated as partnerships for federal income tax
purposes shall be subject to the calculation of premium on the members as provided for partners in a partnership in section one-b,
article two, chapter twenty-three of this code. Any limited
liability company excluding any member from workers' compensation
coverage or computing premiums on such member as a partner prior to
the effective date of this section is deemed to have made an
effective election in accordance with the provisions of this
section for all periods until such limited liability company
modifies the election.
(b) Notwithstanding any provision of subdivision (3),
subsection (g), section one, article two, chapter twenty-three of
this code to the contrary, a person is not a member of a limited
liability company for whom coverage is required under that section
if the person is a member solely as an investor and does not
participate in the direction, administration, or control of the
company and its activities or investments unless that person is
employed in the service of the company for the purpose of carrying
on the industry, business, service or work in which it is engaged.
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