SLS 10RS-33 REENGROSSED Page 1 of 2 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2010 SENATE BILL NO. 107 BY SENATOR RISER WORKERS' COMPENSATION. Provides with respect to those included in the workers' compensation system. (8/15/10) AN ACT1 To amend and reenact R.S. 23:1035(A), relative to persons covered by workers'2 compensation; to provide with respect to corporate officers, members of a limited3 liability company, and sole proprietors to elect not to be covered by workers'4 compensation; and to provide for related matters.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 23:1035(A) is hereby amended and reenacted to read as follows: 7 ยง1035. Employees covered8 A. The provisions of this Chapter shall also apply to every person9 performing services arising out of and incidental to his employment in the course of10 his own trade, business, or occupation, or in the course of his employer's trade,11 business, or occupation, except that the bona fide president, vice president, secretary,12 or treasurer of a corporation who owns not less than ten percent of the stock therein,13 or a partner with respect to a partnership employing him, or a member of a limited14 liability company as defined in R.S. 12:1301(A)(13) who owns not less than a ten15 percent membership interest therein, or a sole proprietor with respect to such sole16 proprietorship may by written agreement with his insurer or group self-insurance17 SB NO. 107 SLS 10RS-33 REENGROSSED Page 2 of 2 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. fund elect not to be covered by the provisions of this Chapter. Such election shall1 not be limited, but shall apply to all trades, businesses, or occupations conducted by2 said corporation, partnership, limited liability company, or sole proprietorship. Such3 an election shall be binding upon the employing corporation, partnership, limited4 liability company, and sole proprietor and the surviving spouse, relatives, personal5 representative, heirs, or dependents of the officer, partner, member, or sole proprietor6 so electing. No salary or compensation received by any such bona fide corporate7 officer, partner, member, or sole proprietor so electing shall be used in computing8 the premium rate for workers' compensation insurance.9 * * *10 The original instrument was prepared by Mary Dozier O'Brien. The following digest, which does not constitute a part of the legislative instrument, was prepared by Dawn Romero Watson. DIGEST Riser (SB 107) Present law provides that the workers compensation coverage shall apply to every person performing services arising out of and incidental to his employment in the course of his own trade, business, or occupation, or in the course of his employer's trade, business, or occupation. Present law provides an exception for the bona fide president, vice president, secretary, or treasurer of a corporation who owns not less than 10% of the stock therein, or a partner with respect to a partnership employing him, or a member of a limited liability company who owns not less than a 10% membership interest therein, or a sole proprietor with respect to such sole proprietorship. Provides allows such persons to elect not to be covered by written agreement. Provides that such election shall not be limited, but shall apply to all trades, businesses, or occupations conducted by the corporation, partnership, limited liability company, or sole proprietorship. Provides that such an election shall be binding upon the employing corporation, partnership, limited liability company, and sole proprietor and the surviving spouse, relatives, personal representative, heirs, or dependents of the officer, partner, member, or sole proprietor. Proposed law retains present law and specifies that the written agreement be between the officer, member, or sole proprietor and his insurer or group self-insurance fund. (Amends R.S. 23:1035(A)) Summary of Amendments Adopted by Senate Senate Floor Amendments to engrossed bill. 1. Corrects reference to group self-insurance funds.