Tennessee § 50-6-902 - Requirement that construction services providers carry workers' compensation insurance — Exemptions — Election by subcontractor.

§ 50-6-902. Requirement that construction services providers carry workers' compensation insurance — Exemptions — Election by subcontractor.

Except as provided in subsection (b), all construction services providers shall be required to carry workers' compensation insurance on themselves. The requirement set out in this subsection (a) shall apply whether or not the provider employs fewer than five (5) employees. To the extent there is no restriction on applying for an exemption pursuant to § 50-6-903, a construction services provider shall be exempt from subsection (a) if the provider: Is a construction services provider rendering services on a construction project that is not a commercial construction project and is listed on the registry; Is a construction services provider rendering services on a commercial construction project, is listed on the registry and such provider is rendering services to a person or entity that complies with § 50-6-914(b)(2); Is covered under a policy of workers' compensation insurance maintained by the person or entity for whom the provider is providing services; Is a construction services provider performing work directly for the owner of the property; provided, however, that this subdivision (b)(4) shall not apply to a construction services provider who acts as a general or intermediate contractor and who subsequently subcontracts any of the work contracted to be performed on behalf of the owner; Is a construction services provider building a dwelling or other structure, or performing maintenance, repairs, or making additions to structures, on the construction service provider's own property; or Is a provider whose employment at the time of injury is casual as provided in § 50-6-106. A subcontractor engaged in the construction industry under contract to a general contractor engaged in the construction industry may elect to be covered under any policy of workers' compensation insurance insuring the general contractor upon written agreement of the general contractor, regardless of whether such subcontractor is on the registry established pursuant to this part, by filing written notice of the election, on a form prescribed by the administrator of the workers' compensation bureau, with the bureau. It is the responsibility of the general contractor to file the written notice with the bureau. Failure of the general contractor to file the written notice shall not operate to relieve or alter the obligation of an insurance company to provide coverage to a subcontractor when the subcontractor can produce evidence of payment of premiums to the insurance company for the coverage. The election shall in no way terminate or affect the independent contractor status of the subcontractor for any other purpose than to permit workers' compensation coverage. The election of coverage may be terminated by the subcontractor or general contractor by providing written notice of the termination to the bureau and to all other parties consenting to the prior election. The termination shall be effective thirty (30) days from the date of the notice to all other parties consenting to the prior election and to the bureau. Nothing in this part shall be construed as exempting or preventing a construction services provider from carrying workers' compensation insurance for any of its employees. The requirement set out in this subsection (d) shall apply whether or not the provider employs fewer than five (5) employees. Acts 2010, ch. 1149, § 13; 2011, ch. 422, § 4; 2013, ch. 282, § 1; 2014, ch. 903, § 9; 2015, ch. 341, § 15. Compiler's Notes. Acts 2010, ch. 1149, § 17 provided that the provisions of the act, which enacted this part, shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to the act unless such funds are specifically appropriated by the general appropriations act. Acts 2010, ch. 1149, § 19, provided in part that: The secretary of state is authorized to promulgate rules and regulations to effectuate the purposes of the act, which added this part. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the secretary of state shall permit: Construction services providers not currently licensed by the board for licensing contractors, but who qualify for a construction services provider registration, to apply for a workers' compensation exemption on or after January 1, 2011; and Construction services providers licensed by the board for licensing contractors to apply for a workers' compensation exemption on or after February 1, 2011. Acts 2011, ch. 422, § 13 provided that if any policyholder chooses to cancel a policy of insurance as a result of obtaining an exemption pursuant to this act and cancels prior to February 1, 2012, then the policy of insurance shall be canceled as if the insured were retiring from the business in which the policy of insurance was required. Amendments. The 2013 amendment, effective July 1, 2014, substituted “administrator of the workers' compensation division” for “commissioner of labor and workforce development” in the first sentence in (c). The 2014 amendment substituted “the division” for “the department” throughout (c). The 2015 amendment substituted “bureau” for “division” throughout (c). Effective Dates. Acts 2013, ch. 282, § 10. July 1, 2014. Acts 2014, ch. 903, § 14. July 1, 2014. Acts 2015, ch. 341, § 19. May 4, 2015.