285.233. Transient employers not filing financial assurance, escrow requirements--failure of political subdivision or private entity to escrow funds, penalties--transient employer not in compliance wi - Missouri Statutes

Transient employers not filing financial assurance, escrowrequirements--failure of political subdivision or private entity toescrow funds, penalties--transient employer not in compliance withlaw, writ of attachment or injunction authorized.

285.233. 1. Any transient employer, as defined in thischapter, failing to conclusively show at any time that he hascomplied with the provisions of section 285.230, relating to thefiling of a financial assurance instrument, shall, beforebeginning performance on any contract made with a politicalsubdivision, deposit with that political subdivision an amountequal to twenty percent of labor costs as specified in suchcontract which will be held in escrow by the politicalsubdivision and payable only to the department of revenue, thedivision of employment security or the division of workers'compensation after the actual amount of tax liability isdetermined. In the event that labor costs are not separatelystated in the contract, the amount to be held in escrow shall beten percent of the contract amount. Any amount remaining in theescrow fund after payments are made shall be refunded to thecontractor. Failure of a political subdivision to properlyescrow funds required under this section will make it ineligibleto receive state funds for public works projects for a period ofone year from the date the infraction is discovered.

2. Any transient employer failing to conclusively show atany time that he has complied with the provisions of section285.230, relating to the filing of a financial assuranceinstrument, shall, before beginning performance on any contractmade with a private entity deposit with that private entity anamount equal to twenty percent of labor costs as specified insuch contract which will be held in escrow by the private entityand payable only to the department of revenue, the division ofemployment security or the division of workers' compensationafter the actual amount of tax liability is determined. In theevent that labor costs are not separately stated in the contract,the amount to be held in escrow shall be ten percent of thecontract amount. Any amount remaining in the escrow fund afterpayments are made shall be refunded to the contractor. Failureof a private entity to properly escrow funds required under thissection shall make such entity liable for the full amount of thestate withholding, workers' compensation, and employment securitytax liability resulting from the transient employers' contractwith that private entity.

3. In addition to any other penalty, interest, or remedyimposed by this section, any transient employer that fails topost a financial assurance instrument or escrow funds as providedfor in this section shall be subject to a writ of attachment asprovided for in chapter 521, RSMo, or any other injunctive reliefprovided for by law.

(L. 1991 H.B. 80 § 2)