REFERENCE TITLE: independent business status; declaration
State of Arizona
House of Representatives
Second Regular Session
Representatives Petersen, Cobb: Allen J, Fann, Finchem, Norgaard, Olson, Shope, Senator Lesko
Amending title 23, Arizona Revised Statutes, by adding chapter 10; relating to employment relationships.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 23, Arizona Revised Statutes, is amended by adding chapter 10, to read:
ARTICLE 1. GENERAL PROVISIONS
23-1601. Declaration of independent business status
A. Any employing unit contracting with an independent contractor may prove the existence of an independent contractor relationship for the purposes of this title by the independent contractor executing a declaration of independent business status, as provided by this section, and by the employing unit and the independent contractor acting in a manner consistent with the declaration. To the extent allowed by federal law, a declaration of independent business status executed in compliance with this subsection creates a rebuttable presumption of an independent contractor relationship between the independent contractor and the employing unit with whom the independent contractor contracts. Any declaration of independent business status shall be signed by the independent contractor, be dated and, unless otherwise provided by law, substantially comply with the following form:
This declaration of independent business status is made by (contractor) in relation to services performed by the contractor for (contracting party) . The contractor states and declares the following:
1. The contractor operates the contractor's own independent business and is providing services for the contracting party as an independent contractor.
2. The contractor understands that the contractor is not an employee of the contracting party and the services rendered for the contracting party do not establish any right to unemployment benefits or any other right arising from an employment relationship.
3. The contractor understands that the contractor is not insured under any of contracting party's insurance coverage, including workers' compensation insurance.
4. The contractor understands that the contractor is responsible for any and all tax liability associated with payments received from the contracting party and that the contracting party will not withhold any taxes from payments to the contractor.
5. The contractor understands that the contracting party does not restrict the contractor's ability to perform services for other parties. The contractor is authorized to accept work from and perform work for other businesses and individuals besides the contracting party.
6. The contractor acknowledges that the contracting party expects that the contractor provides services for other parties and is therefore not economically dependent on the services performed for the contracting party.
7. The contractor has the right to accept or decline requests for services by the contracting party.
8. The contractor has the right to subcontract the services provided to the contracting party to qualified employees or subcontractors of the contractor.
9. The contractor recognizes that the contracting party does not dictate the time of performance or the methods or process the contractor uses to perform services for the contracting party. The contracting party has the right to impose quality standards or a deadline for completion of services performed, or both, but the contractor is authorized to determine the days worked, the time of work and other aspects of performance.
10. The contractor recognizes that the contractor is responsible for obtaining and maintaining any required registration, licenses or other authorization necessary for the services rendered by the contractor.
11. The contractor understands that the contractor will be paid by the contracting party based on the work the contractor is contracted to perform and that the contracting party is not guaranteeing or otherwise providing the contractor with a regular salary or any minimum, regular payment.
12. The contractor understands that the contractor is responsible for providing and maintaining all tools and equipment associated with the services performed for the contracting party.
13. The contractor understands that the contractor is responsible for all expenses incurred by the contractor in performing the services for the contracting party.
14. The contractor acknowledges that the terms set forth in this declaration apply to the contractor, the contractor's employees and the contractor's independent contractors.
B. This section does not require an independent contractor to execute a declaration of independent business status to be considered an independent contractor. Any employing unit or independent contractor may rely on any provision in this title for the purposes of establishing an employment or independent contractor relationship.
23-1602. Determination of employment relationship; prohibition
Any supervision or control exercised by an employing unit to comply with any statute, rule or code adopted by this state or a political subdivision of this state or any professional licensing requirement may not be considered for the purposes of determining the independent contractor or employment status of any relationship or individual for the purposes of this title.