CHAPTER 33

FORMERLY

SENATE SUBSTITUTE NO. 1

FOR

SENATE BILL NO. 68

AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO WORKERS' COMPENSATION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend §2308(a) Title 19 of the Delaware Code by deleting the subsection in its entirety and substituting in lieu thereof the following:

“(a) Executive officers of covered employers are included within this chapter; provided, however, that as many as eight officers who are stockholders of a corporation or as many as four individuals who are members of a limited liability company may be exempted from this chapter if the corporation and the exempted corporate officers or the limited liability company and the exempted members agree in writing to such an exemption. Anyone or all of the officers who are stockholders of a corporation or anyone or all members of the limited liability company who elect an exemption shall for the purposes of §2306 of this Title be considered employees.”

Section 2. Amend §2311(a)(4) Title 19 of the Delaware Code by deleting the last sentence in its entirety and substituting in lieu thereof the following:

“Executive officers who are stockholders of a corporation and individuals who are members of a limited liability company may elect to be exempted from the above and this Chapter, pursuant to and by complying with §2308(a) of this Title. However, for purposes of this subsection the exemption provided in §2308(a) for executive officers who are stockholders of a corporation shall be limited to no more than four executive officers. Partners and sole proprietors, when working in an independent contractor role, shall be subject to the requirements of this subsection and may not rely upon §2308(b) and (c) of this title. This subsection applies to insurance policies issued or renewed on or after July 17, 2007.”

Section 3. Amend §2311(a)(5) Title 19 of the Delaware Code by deleting the paragraph (5) in its entirety and substituting in lieu thereof the following:

“(5) Any contracting entity shall obtain from an independent contractor or subcontractor and shall retain for three (3) years from the date of the contract the following: a notice of exemption of executive officers or limited liability company members and/or a certification of insurance in force under this chapter. If the contracting entity shall fail to do so, the contracting entity shall not be deemed the employer of any independent contractor or subcontractor or their employees but shall be deemed to insure any workers' compensation claims arising under this chapter.”

Approved May 23, 2007