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HomeMy WebLinkAbout05291991SEBASTIAN CONSTRUCTION BOARD SPECIAL MEETING MAY. ~ 1991 - 2:00 P.M. MEETING WAS CALLED TO ORDER BY CHAIRMAN CAREY AT 2:00 P~M. ROLL CALL: PRESENT: MR. KELLEY MR. NEUBERGER MR. CAPP VICE CHAIRMAN LAMAN MR. HANEY CHAIRMAN CAREY MR. DERNBACH CANE IN AT 2:1~ P.M. ABSENT: NONE ALSO PRESENT: BRUCE COOPER, DIRECTOR OF COMMUNITY DEVELOPMENT/BUILDING OFFICIAL; GEORGE BONACCI, CHIEF B~iLDING INSPECTOR; RICK TORPY, ASSISTANT CITY ATTORNEY. MR. COOPER EXPLAINED THAT THE MEETING WOULD BE IN TWO PARTS. FIRST THERE WOULD BE A WORKSHOP BETWEEN THE AGENCIES BEING REPRESENTED FROM WORKMAN'S COMPENSATION, DEPARTMENT OF PROFESSIONAL REGULATION AND THE INTERNAL REVENUE SERVICE. THE MEETING WILL THEN BE OPENED UP'TO THE PUBLIC. MR. COOPER ASKED EVERYONE TO INTRODUCE THEMSELVES, WHERE THEY WERE FROM AND WHO THEY WERE REPRESENTING. MR. COOPER EXPLAINED SOME OF THE PROBLEMS THE CITY OF SEBASTIAN WAS HAVING WITH UNLICENSED CONTRACTORS. MR. MARK CARLIN, BUREAU OF WORKMAN'S COMPENSATION WAS ASKED ABOUT THE CAPABILITY OF ANYONE OBTAINING WORKMAN'S COMPENSATION. HE EXPLAINED THAT NO WHERE IN THE INSURANCE UNDERWRITING LAWS WAS ANYTHING WRITTEN TO PROHIBIT ANYBODY FROM PURCHASING A WORKMAN'S COMPENSATION POLICY. AT THE PRESENT, ANYONE IN THE CONSTRUCTION INDUSTRY, IF THEY ARE A SOLE PROPRIETOR, A PARTNER OR CORPORATE OFFICER CAN ELECT TO EXEMPT THEMSELVES FROM EMPLOYEE STATUS. ONLY BUSINESSES WITH AN EMPLOYEE ARE REQUIRED TO CARRY WORKERS COMPENSATION. PAGE 2 SEBASTIAN CONSTRUCTION BOARD, SPECIAL MEETING - 5/29/91 MR. COOPER EXPLAINED THAT THE NEW FORM (BCM-204), THAT IS REQUIRED ON THE EXEMPTION HAS TO BE SENT TO THE BUREAU TO BE PROCESSED AND RETORNED BEFORE A BUILDING PERMIT CAN BE ISSUED. TOM B~TLER, POLK COUNTY SAID THAT STATE STATUTE 489 AND DPR AGREES WITH THE DEFINITION OF EMPLOYEE. HE ASKED IF IRS TOOK THE SAME POSITION. TOM MCGOVERN, IRS/CID SAID THAT BASICALLY THE DEFINITIONS WERE THE SAME ALTHOUGH IRS GOES INTO IT IN A GREATER EXTENT. HE SAID THAT THEY HAVE APPROXIMATELY 20 ITEMS THAT HAVE TO BE ANSWERED IN ORDER TO ADDRESS THE ISSUE OF WHETHER OR NOT A PERSON IS AN EMPLOYEE OR INDEPENDENT CONTRACTOR. BASICALLY, IF THAT PERSON IS UNDER THE DIRECTION AND CONTROL OF THE PERSON WHO HAS HIRED HIM, AND HE DIRECTS THE END RESULTS AND THE MEANS OF HOW IT IS GOING TO BE PUT TOGETHER, THEN' HE IS AN EMPLOYEE. IF THE PERSON WHO HIRES HIM CAN ONLY DETERMINE WHAT THE END RESULTS ARE, THEN THEY ARE A SOB- CONTRACTOR. MR. COOPER NOTED THAT IF A CONTRACTOR HIRES AN EMPLOYEE, HE WILL BE FILING A W-2 FORM AND IF NOT, HE HAS TO FILE A 1099 FORM. MR. MCGOVERN SA'ID THAT IF THE CONTRACTOR PAYS THE EMPLOYEE OVER $600.00, HE HAS TO ISSUE HIM A 1099. THERE WAS A LENGTHY DISCUSSION BETWEEN THE BOARD AND THE INVITED GUESTS CONCERNING UNLICENSED ACTIVITY. EACH PERSON TOLD THE BOARD THE PROCEDURES THAT WERE USED IN THEIR AREA TO DEAL WITH THIS PROBLEM. THEY ALL FELT THAT EDUCATING THE HOMEOWNER IN THE USE OF LICENSED CONTRACTORS IS A BIG PART OF THE BATTLE. A RECESS WAS TAKEN AT 4:02 P.M. MEETING REOPENED AT 4:20 P.M. WITH ALL PRESENT. DUKE RUSSELL, MERRITT ISLAND, BREVARD COUNTY, PRESIDENT OF ROOF AND SHEET METAL CONTRACTORS ASSOCIATION FELT THE ATTORNEYS COULD TRY TO GIVE A MORE EXPLICIT INTERPRETATION OF THE LAWS IN WHAT WE CAN DO. PAGE 3 SEBASTIAN CONSTRUCTION BOARD - SPECIAL MEETING - 6/29/91 HE DID NOTE THAT UNDER CHAPTER 489 THERE IS A SECTION, THAT IF ADOPTED BY THE LOCAL LICENSING AGENCIES, ENABLES A CITATION TO BE ISSUED IF AN INDIVIDUAL CONTRACTOR IS FOUND ON A JOB. AT THAT POINT IT IS UP TO THAT PERSON TO PROVE WHETHER OR NOT HE IS ON THE JOB AS AN EMPLOYEE. ATTORNEY TORPY SAID THAT IF A CITY WRITES A CITATION, THAT PERSON HAS TO BE ABLE TO TAKE IT TO THE COUNTY COURT SYSTEM LIKE A TRAFFIC TICKET. YOU EITHER PAY' THE' TICKET OR GO TO COURT. YOU HAVE TO HAVE THE ABILITY TO GO TO COURT. HE ALSO NOTED THAT THE FINES THROUGH A CITATION WERE MINIMAL. CLAYTON CROSIER, CLAYTON'S DRYWALL, ADDR'ESSED HIS QUESTION TO IRS AND WORKER'S COMPENSATION. HE ASKED IF IT IS LEGAL FOR A LICENSED SUB-CONTRACTOR TO NOT TAKE OUT TAXES ON SOMEONE WHO IS NOT LICENSED' AND YET WORKED FOR THEM IN A SUB CAPACITY, A PIECE WORKER. KAREN WARFEL, IRS, SAID THAT THEIR DEFINITIONS ARE GOVERNED BY CODE SEC. 530 AND THERE ARE 20 COMMON LAW FACTORS. THE BASIS IS THE CONTROL EXERCISED OVER THAT PERSON. IF THEY ARE ACTING LIKE AN EMPLOYEE, TREATED LIKE AN EMPLOYEE, THEY ARE AN EMPLOYEE WHETHER YOU CALL THEM A SUB-CONTRACTOR OR NOT. WITH IRS, THEORETICALLY IT IS POSSIBLE TO HAVE A LICENSED SUB-CONTRACTOR WORKING FOR ANOTHER CONTRACTOR THAT COULD BE AN EMPLOYEE. IT IS HOW MUCH CONTROL IS BEING EXCERCISED OVER THAT PERSON. IT WAS NOTED THAT THE ABOVE COMMENTS ARE BASED ON THE FEDERAL LEVEL. WHERE FEDERAL HAS A GENERAL DEFINITION OF AN EMPLOYEE, THE STATE HAS TO FURTHER REFINE IT AND LOCAL LEVEL REFINING IT EVEN FURTHER. ATTORNEY TORPY SAID THAT THE ONLY THING THE IRS COULD DO TO HELP US IN THIS SITUATION WAS TO VERIFY HOW A PARTICULAR CONTRACTOR WAS REPORTING WHAT A PERSON WAS WORKING AS - EMPLOYEE OR SUB-CONTRACTOR. WORKER'S COMPENSATION WAS ASKED IF IT WAS LEGAL TO TAKE WORKER'S COMP OUT OF AN EMPLOYEES CHECK. THE ANSWER WAS NO. MR. COOPER STATED THAT SEBASTIAN HAD AN ORDINANCE REQUIRING EVERYONE TO BE LICENSED AND THAT WE WOULD CONTINUE FOLLOWING THAT ORDINANCE. PAGE 4 SEBASTIAN CONSTRUCTION BOARD - SPECIAL MEETING MR. COOPER ASKED THAT BEFORE THE MEETING ADJOURNED, THE BOARD MAKE A MOTION TO. CITY COUNCIL TO REOPEN THE GRANDFATHERING FOR COMPETENCE AGAIN. HE WAS ALSO GOING TO HAVE THE ATTORNEY LOOK INTO THE ISSUING OF CITATIONS. MOTION BY MR. CAPP, SECONDED BY MR. HANEY TO TABLE THE DISCUSSION ON THE GRANDFATHER CLAUSE FOR OUR NEXT REGULAR SCHEDULED MEETING. CARRIED. THERE BEING NO FURTHER DISCUSSIONS, THE MEETING ADJOURNED AT 5:30 P.M.