Sec. 1. 39-A MRSA §401, sub-§3-A is enacted to read:

3-A.__Cancellation notice requirements.__Any person engaged in harvesting forest products not exempt under subsection 1 shall provide within 3 business days of the cancellation written notification to the landowner to whom the person is under contract of a cancellation of that person's workers' compensation insurance policy.__That person shall provide identical notice to any employee who was covered by the cancelled workers' compensation insurance policy.__A person engaged in harvesting forest products not exempt under subsection 1 who is found in noncompliance with these notification requirements is liable for a civil forfeiture of not less than $50 nor more than $100 for each day of noncompliance.

Sec. 2. Review of enforcement policies and practices. The Workers' Compensation Board shall study its enforcement policies and activities concerning any persons engaged in harvesting forest products not exempt under the Maine Workers' Compensation Act of 1992 who fail to maintain mandated workers' compensation insurance coverage for their employees. In studying its enforcement efforts, the board shall examine its current enforcement practices in the area of policy cancellations, identify ways to enhance its enforcement efforts in this area and determine staffing requirements for additional enforcement efforts. In addition to studying its enforcement practices, the board shall redirect its staff's attention to the forest products harvesting industry and work with the industry to develop incentive-based systems that will continue efforts to reduce the number and frequency of accidents in the industry. The board shall report its findings and recommendations, including any implementing legislation, to the joint standing committee of the Legislature having jurisdiction over labor matters and the joint standing committee of the Legislature having jurisdiction over agriculture, conservation and forestry matters by January 15, 2003. Each of the 2 joint standing committees may report out legislation based upon the report to the First Regular Session of the 121st Legislature.

SUMMARY

This bill requires any person engaged in harvesting wood products and not exempt from carrying workers' compensation coverage for that person's employees to notify landowners and employees within 3 business days of canceling a workers' compensation insurance policy. The bill also requires the Workers' Compensation Board to study its enforcement policies and practices concerning persons engaged in harvesting wood products