Department of Labor And Industry Financial-Compliance Audit for the Two Fiscal Years Ended .. 2003

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Department personnel determined that if a contractor turned in an application for both services they would allocate $25 to the independent contractor exemption and $45 to the contractor registration. They reached this decision because the Independent Contractor Exemption Fund was not collecting enough revenue to cover its expenses, while it was still processing the independent contractor exemptions. At the same time the Contractor Registration Fund had sufficient revenue and an increasing cash
...balance. In fiscal year 2003 the department transferred $194,200 from the Contractor Registration Fund to the Independent Contractor Exemption Fund.
However, there is no provision in state law which would allow the department to transfer any money to fund the independent contractor exemption.
Section 39-9-206(4), MCA. states the fees collected under this section must be deposited in the state special revenue account to the credit of the department for the administration and the enforcement of the Contractor Registration Chapter.


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