ENGROSSED

COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 426

(By Senators Bowman and McKenzie)

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[Originating in the Committee on the Judiciary;

reported February 22, 2006.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §21-11-13a, relating to penalties for employment or use of unauthorized workers by contractors or subcontractors; empowering the commissioner and board to issue injunctions for violations; and providing for suspension and permanent revocation of licenses and fines.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §21-11-13a, to read as follows:
ARTICLE 11. WEST VIRGINIA CONTRACTOR LICENSING ACT.
§21-11-13a. Employment of unauthorized workers; penalties; suspension of license.

(a) Upon a determination that a contractor, or subcontractor employed, hired or used by such contractor, is employing, recruiting, hiring or using an unauthorized worker, or otherwise violating the provisions of section three, article one-b of this chapter, the board or commissioner shall issue a cease and desist order requiring the contractor and subcontractor to immediately cease all operations at the work site where the violation occurred. The commissioner or board issuing the order has the authority to amend or stay the application of the order pending a hearing on the alleged violation if the contractor or subcontractor files a written application with the commissioner or board demonstrating no violation of said section has occurred or the alleged violation has ceased.
(b) Notwithstanding the provisions of section five, article one-b of this chapter, any contractor or subcontractor found to have employed, hired, recruited or used an unauthorized worker, or otherwise found to have violated the provisions of section three, article one-b of this chapter, or a contractor or subcontractor who has employed, hired or used a subcontractor which violated those provisions, shall be subject to the following penalties:
(1) For a first offense, a fine of not less than one hundred dollars nor more than one thousand dollars;
(2) For a second offense, a fine of not less than one thousand dollars nor more than two thousand dollars or suspension of license for not more than three months, or both;
(3) For a third offense, a fine of not less than two thousand five hundred dollars nor more than five thousand dollars and suspension of his or her contractor's license for six months;
(4) For a fourth or subsequent offense, suspension of his or her contractor's license for not less than one year or permanent revocation of the license. In any case, a contractor violating the provisions of this section for a fourth time shall not have his or her license restored until the board determines that appropriate and sufficient safeguards are in place to ensure future violations will not occur.
(c) For purposes of this section, a contractor who employs, hires or uses a subcontractor is liable and responsible for the actions of any and all violations of the subcontractor who employs, hires, recruits or uses an unauthorized worker where the contractor has knowledge or reasonably should know of the employment, hiring or use of an unauthorized worker. A contractor's purposeful or willful ignorance of the actions and employee status of a subcontractor's employees and workers is not a valid defense to violations under this section or section three, article one-b of this chapter.