285.232. Construction contractors, who are transient employers, proof and financial assurance required--list of contractors to be published.
Construction contractors, who are transient employers, proof andfinancial assurance required--list of contractors to be published.
285.232. 1. Subject to the provisions of section 285.230, anycounty, city, town, village or any other political subdivision whichrequires a building permit for a person to perform certain constructionprojects shall require a transient employer to show proof that the employerhas been issued a tax clearance and has filed a financial assuranceinstrument as required by section 285.230 before such entity issues abuilding permit to the transient employer. If any transient employerobtains a building permit without providing such proof, provides afraudulently obtained tax clearance or a fraudulent financial assuranceinstrument or through any misrepresentation or any other fraudulent act orin any way violates the provisions of sections 285.230 to 285.234, theMissouri department of revenue shall request a temporary restraining orderor seek injunctive relief to immediately prohibit further performance ofwork by the transient employer on such contract or project. The court maydirect that any payments due such transient employer be equitablydistributed in satisfaction of the transient employer's obligationspursuant to sections 285.230 to 285.234. Upon issuance of such order by acourt of competent jurisdiction, the person for whom the work is beingperformed may engage another contractor as provided by law or any provisionof contract and the person shall not be deemed to be in violation of thecontract with such transient employer removed by the court. Nothing inthis section shall be construed to create or constitute a liability to or acause of action against a city or county in regard to the issuance of anylicense pursuant to this section.
2. Any contractor for private or public construction work in thisstate which contracts with or otherwise engages a subcontractor, which isdeemed a transient employer as defined in section 285.230, to perform anyportion of such work, shall require such subcontractor to show proof ofhaving filed a financial assurance instrument with the director of revenueas required by section 285.230 and to show proof that the subcontractorholds a current valid certificate of insurance for workers' compensationcoverage in this state, prior to the subcontractor performing any work onthe project. If the subcontractor is self-insured for purposes of workers'compensation, the contractor shall require proof that such self-insuranceby the subcontractor has been approved by the division of workers'compensation. The contractor shall not allow the subcontractor to performon such contract until proof of compliance as required by this section hasbeen provided to the contractor. If a subcontractor which is deemed to bea transient employer has previously submitted proof of compliance asrequired by this section to a state agency or political subdivision forwhich the contract is being performed as a condition of being qualified toperform work for such agency or political subdivision, the generalcontractor shall not be required to obtain the proofs required by thissection. If at any time prior to final payment to a subcontractor for workperformed on a project, a contractor is notified in writing by the directorof revenue or the director of the division of workers' compensation that asubcontractor is in violation of sections 285.230 to 285.234, thecontractor shall withhold all or part of any payment to the subcontractorunder the contract for payment in satisfaction of the subcontractor'sobligations as a transient employer if so directed by the director ofrevenue or the director of the division of workers' compensation. Anycontractor withholding payment and paying such funds in satisfaction of thesubcontractor's obligations as a transient employer if so directed by thedirector of revenue or the director of the division of workers'compensation. Any contractor withholding payment and paying such funds insatisfaction of the subcontractor's obligations as a transient employershall be deemed in compliance with the contract with the subcontractor tothe extent of the amount paid to fulfill such obligation and with the lawsof this state regarding timely payment under construction contracts andshall not be subject to any civil or criminal penalty for withholding suchpayment.
3. Notwithstanding the provision of section 32.057, RSMo, theMissouri department of revenue shall at least quarterly submit forpublication in the Missouri Register a list of construction contractorsperforming work on construction projects in Missouri who are known by thedepartment to be deemed transient employers pursuant to section 285.230.The department shall also update such list monthly and make such listavailable upon request without cost to any person.
(L. 1997 H.B. 472)