Alabama 2022 Regular Session

Alabama Senate Bill SB150 Compare Versions

OldNewDifferences
11 1 SB150
2-2 215030-5
2+2 215030-4
33 3 By Senators Orr, Livingston and Butler
44 4 RFD: Fiscal Responsibility and Economic Development
55 5 First Read: 01-FEB-22
66
7-Page 0 SB150
8-1 SB150
7+Page 0 1 SB150
98 2
109 3
11-4 ENROLLED, An Act,
12-5 Relating to industrial relations and labor; to amend
13-6 Section 25-4-10, Code of Alabama 1975, to exclude certain
14-7 marketplace contractors who work for certain marketplace
15-8 platforms from the definition of employment; to repeal Section
16-9 3 of Act 2021-6, 2021 Regular Session, now appearing as
17-10 Section 25-4-121, Code of Alabama 1975; and to make
18-11 nonsubstantive, technical revisions to update the existing
19-12 code language to current style.
20-13 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
21-14 Section 1. Section 25-4-10 and Section 25-5-1, Code
22-15 of Alabama 1975, are amended to read as follows:
23-16 "§25-4-10.
24-17 "(a) Subject to other provisions of this chapter,
25-18 "employment" means any of the following:
26-19 "(1) Any service performed prior to January 1, 1978,
27-20 which was employment as defined in this section prior to such
28-21 date and, subject to the other provisions of this section, or
29-22 services performed for remuneration after December 31, 1977,
30-23 including service in interstate commerce, by any of the
31-24 following:
32-25 "a. Any officer of a corporation; or.
33-Page 1 SB150
34-1 "b. Any individual who, under the usual common law
35-2 rules applicable in determining the employer-employee
36-3 relationship, has the status of an employee; or.
37-4 "c. Any individual other than an individual who is
38-5 an employee under paragraphs a. or b. of this subdivision (1)
39-6 who performs services for remuneration for any person:
40-7 "1. As an agent-driver or commission-driver engaged
41-8 in distributing meat products, bakery products, beverages
42-9 (other than milk), or laundry or dry cleaning services for a
43-10 principal; or
44-11 "2. As a traveling or city salesman engaged upon a
45-12 full-time basis in the solicitation on behalf of, and the
46-13 transmission to, his or her principal (except for sideline
47-14 sales activities on behalf of some other person) of orders
48-15 from wholesalers, retailers, contractors, or operators of
49-16 hotels, restaurants, or other similar establishments for
50-17 merchandise for resale or supplies for use in their business
51-18 operations.
52-19 "For purposes of paragraph c. of this subdivision,
53-20 the term "employment" shall include services described in
54-21 subparagraphs 1 and 2 of paragraph c. of this subdivision,
55-22 performed after December 31, 1971, only if all of the
56-23 following apply:
57-Page 2 SB150
58-1 "(i) The contract of service contemplates that
10+4 ENGROSSED
11+5
12+6
13+7 A BILL
14+8 TO BE ENTITLED
15+9 AN ACT
16+10
17+11 Relating to industrial relations and labor; to amend
18+12 Section 25-4-10, Code of Alabama 1975, to exclude certain
19+13 marketplace contractors who work for certain marketplace
20+14 platforms from the definition of employment; to repeal Section
21+15 3 of Act 2021-6, 2021 Regular Session, now appearing as
22+16 Section 25-4-121, Code of Alabama 1975; and to make
23+17 nonsubstantive, technical revisions to update the existing
24+18 code language to current style.
25+19 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
26+20 Section 1. Section 25-4-10 and Section 25-5-1, Code
27+21 of Alabama 1975, are amended to read as follows:
28+22 "§25-4-10.
29+23 "(a) Subject to other provisions of this chapter,
30+24 "employment" means any of the following:
31+25 "(1) Any service performed prior to January 1, 1978,
32+26 which was employment as defined in this section prior to such
33+27 date and, subject to the other provisions of this section, or
34+Page 1 1 services performed for remuneration after December 31, 1977,
35+2 including service in interstate commerce, by any of the
36+3 following:
37+4 "a. Any officer of a corporation; or.
38+5 "b. Any individual who, under the usual common law
39+6 rules applicable in determining the employer-employee
40+7 relationship, has the status of an employee; or.
41+8 "c. Any individual other than an individual who is
42+9 an employee under paragraphs a. or b. of this subdivision (1)
43+10 who performs services for remuneration for any person:
44+11 "1. As an agent-driver or commission-driver engaged
45+12 in distributing meat products, bakery products, beverages
46+13 (other than milk), or laundry or dry cleaning services for a
47+14 principal; or
48+15 "2. As a traveling or city salesman engaged upon a
49+16 full-time basis in the solicitation on behalf of, and the
50+17 transmission to, his or her principal (except for sideline
51+18 sales activities on behalf of some other person) of orders
52+19 from wholesalers, retailers, contractors, or operators of
53+20 hotels, restaurants, or other similar establishments for
54+21 merchandise for resale or supplies for use in their business
55+22 operations.
56+23 "For purposes of paragraph c. of this subdivision,
57+24 the term "employment" shall include services described in
58+25 subparagraphs 1 and 2 of paragraph c. of this subdivision,
59+26 performed after December 31, 1971, only if all of the
60+27 following apply:
61+Page 2 1 "(i) The contract of service contemplates that
5962 2 substantially all of the services are to be performed
6063 3 personally by such individual;.
6164 4 "(ii) The individual does not have a substantial
6265 5 investment in facilities used in connection with the
6366 6 performance of the services (other than in facilities for
6467 7 transportation); and.
6568 8 "(iii) The services are not in the nature of a
6669 9 single transaction that is not part of a continuing
6770 10 relationship with the person for whom the services are
6871 11 rendered.
6972 12 "(2) Service performed:
7073 13 "a. After December 31, 1971, but prior to January 1,
7174 14 1978, by an individual in the employ of this state or any of
7275 15 its instrumentalities or political subdivisions or their
7376 16 instrumentalities (or in the employ of any of the foregoing
7477 17 and one or more other states or their instrumentalities or
7578 18 political subdivisions) for a hospital or institution of
7679 19 higher education located in this state; provided, however,
7780 20 that such service is excluded from "employment" as defined in
7881 21 the Federal Unemployment Tax Act solely by reason of Section
7982 22 3306(c)(7) of that act, and is not excluded from "employment"
8083 23 under subsection (b) of this section; provided further, that
8184 24 such service in the employ of a political subdivision or any
8285 25 of its instrumentalities shall be deemed to be "employment"
83-Page 3 SB150
84-1 within the meaning of this chapter only if the political
85-2 subdivision or its instrumentalities has elected to become an
86-3 employer subject to this chapter pursuant to Section 25-4-131
87-4 for all such service in the employ of the political
88-5 subdivision and its instrumentalities and has not ceased to be
89-6 an employer subject hereto pursuant to Section 25-4-130 or
90-7 Section 25-4-131; and
91-8 "b. After December 31, 1977, in the employ of this
92-9 state or any of its instrumentalities or of any political
93-10 subdivision thereof or any of its instrumentalities or any
94-11 instrumentality of more than one of the foregoing or any
95-12 instrumentality of any one of the foregoing and one or more
96-13 other states or political subdivisions, provided, however,
97-14 that such service is excluded from "employment" as defined in
98-15 the Federal Unemployment Tax Act by Section 3306(c)(7) of that
99-16 act and is not excluded from "employment" under subsection (b)
100-17 of this section.
101-18 "c. For the purposes of this chapter, the term
102-19 "governmental entity" in reference to this state is defined as
103-20 the entirety of state government, but for the purposes of
104-21 reporting, accounting, or other administrative procedures,
105-22 such entity shall be divided into each department, agency,
106-23 board, commission, and any other separately organized division
107-24 or instrumentality of this state. The state Comptroller of
108-25 this state shall make such payments to the secretary as are
109-Page 4 SB150
110-1 required by the other provisions of this chapter as they
111-2 pertain to the various organizational components of the state.
112-3 The state Comptroller is hereby authorized to require of such
113-4 components such payments as are necessary to discharge his or
114-5 her responsibilities and shall enforce such payments under the
115-6 provisions of subsection (b) of Section 25-4-51.
116-7 "d. The term "governmental entity" in reference to
117-8 any political subdivision is defined as each county and its
118-9 instrumentalities and each municipality and its
119-10 instrumentalities, except that each instrumentality of a
120-11 political subdivision which is separately incorporated or
121-12 otherwise removed from the control of the governing body of
122-13 the political subdivision shall be a separate governmental
123-14 entity. Instrumentalities organized and operated jointly by
124-15 any combination of two or more of the aforementioned entities
125-16 shall be considered as constituting a separate governmental
126-17 entity. The foregoing notwithstanding, each separate public
127-18 school system shall constitute a separate governmental entity.
128-19 "(3) Service performed after December 31, 1971, by
129-20 an individual in the employ of a religious, charitable,
130-21 educational, or other organization but only if all of the
131-22 following conditions are met:
132-23 "a. The service is excluded from "employment" as
133-24 defined in the Federal Unemployment Tax Act solely by reason
134-25 of Section 3306(c)(8) of that act, and is not excluded from
135-Page 5 SB150
136-1 "employment" under subdivisions (8) and (21) of subsection (b)
137-2 of this section; and.
138-3 "b. The organization had four or more individuals in
139-4 employment for some portion of a day in each of 20 different
140-5 weeks, whether or not such weeks were consecutive, within
141-6 either the current or preceding calendar year, regardless of
142-7 whether they were employed at the same moment of time.
143-8 "(4)a. Service performed after December 31, 1977, by
144-9 an individual in agricultural labor, as defined in subdivision
145-10 (b)(1) of subsection (b) of this section, when:
146-11 "1. Such service is performed for an employing unit
147-12 which:
148-13 "(i) During any calendar quarter in either the
149-14 current or the preceding calendar year paid remuneration in
150-15 cash of $20,000 or more to individuals employed in
151-16 agricultural labor (not taking into account service in
152-17 agricultural labor performed before January 1, 1984, by an
153-18 alien referred to in subparagraph 2.). of this paragraph a.;
154-19 or
155-20 "(ii) For some portion of a day in each of 20
156-21 different calendar weeks, whether or not such weeks were
157-22 consecutive, in either the current or the preceding calendar
158-23 year, employed in agricultural labor (not taking into account
159-24 service in agricultural labor performed before January 1,
160-25 1984, by an alien referred to in subparagraph 2.) of this
161-Page 6 SB150
162-1 paragraph a., 10 or more individuals, regardless of whether
163-2 they were employed at the same moment of time.
164-3 "2. For the purposes of this paragraph a., such
165-4 service is not considered to be performed in agricultural
166-5 labor if performed before January 1, 1984, by an individual
167-6 who is an alien admitted to the United States to perform
168-7 service in agricultural labor pursuant to Sections 214(c) and
169-8 101(a)(15)(H) of the Immigration and Nationality Act.
170-9 "3. For the purposes of this paragraph a., any
171-10 individual who is a member of a crew furnished by a crew
172-11 leader to perform service in agricultural labor for any other
173-12 person shall be treated as an employee of such crew leader.
174-13 "(i) If such crew leader holds a valid certificate
175-14 of registration under the Farm Labor Contractor Registration
176-15 Act of 1963, or substantially all the members of such crew
177-16 operate or maintain tractors, mechanized harvesting or crop
178-17 dusting equipment, or any other mechanized equipment, which is
179-18 provided by such crew leader; and
180-19 "(ii) If such individual is not an employee of any
181-20 other person within the meaning of subdivision (1) of this
182-21 subsection.
183-22 "4. For the purposes of this subdivision (4) in the
184-23 case of any individual who is furnished by a crew leader to
185-24 perform service in agricultural labor for any other person and
186-Page 7 SB150
187-1 who is not treated as an employee of such crew leader under
188-2 subparagraph a.3. of this paragraph a.:
189-3 "(i) Such other person and not the crew leader shall
190-4 be treated as the employer of such individual; and
191-5 "(ii) Such other person shall be treated as having
192-6 paid cash remuneration to such individual in an amount equal
193-7 to the amount of cash remuneration paid to such individual by
194-8 the crew leader (either on his or her own behalf or on the
195-9 behalf of such other person) for the service in agricultural
196-10 labor performed for such other person.
197-11 "5. For the purposes of this paragraph a., the term
198-12 "crew leader" shall mean an individual who:
199-13 "(i) Furnishes individuals to perform service in
200-14 agricultural labor for any other persons;
201-15 "(ii) Pays (either on his or her own behalf or on
202-16 behalf of such other person) the individuals so furnished by
203-17 him or her for the service in agricultural labor performed by
204-18 them; and
205-19 "(iii) Has not entered into a written agreement with
206-20 the farm operator under which such crew leader is designated
207-21 as an employee of such farm operator.
208-22 "b. Domestic service after December 31, 1977, in a
209-23 private home, local college club, or local chapter of a
210-24 college fraternity or sorority performed for a person, their
211-25 his or her spouse, or estate who paid cash remuneration of one
212-Page 8 SB150
213-1 thousand dollars ($1,000) or more in any calendar quarter in
214-2 the current calendar year or the preceding calendar year to
215-3 individuals employed in such domestic service.
216-4 "For the purposes of this paragraph b. the term
217-5 "domestic service" includes all service for a person in the
218-6 operation and maintenance of a private household, local
219-7 college club, or local chapter of a college fraternity or
220-8 sorority as distinguished from service as an employee in the
221-9 pursuit of an employer's trade, occupation, profession,
222-10 enterprise, or vocation.
223-11 "(5) The term "employment" shall include the service
224-12 of an individual who is a citizen of the United States,
225-13 performed outside the United States after December 31, 1971,
226-14 (except in Canada or in the case of the Virgin Islands after
227-15 December 31, 1971, and prior to January 1 of the year
228-16 following the year in which the U.S. Secretary of Labor
229-17 approves the Unemployment Compensation Law of the Virgin
230-18 Islands under Section 3304(a) of the Internal Revenue Code of
231-19 1954) in the employ of an American employer (other than
232-20 service which is deemed "employment" under the provisions of
233-21 subdivision (8) or (9) of this subsection (a) or the parallel
234-22 provisions of another state's law), if:
235-23 "a. The employer's principal place of business in
236-24 the United States is located in this state; or
237-Page 9 SB150
238-1 "b. The employer has no place of business in the
239-2 United States, but:
240-3 "1. The employer is an individual who is a resident
241-4 of this state; or
242-5 "2. The employer is a corporation which is organized
243-6 under the laws of this state; or
244-7 "3. The employer is a partnership or a trust and the
245-8 number of the partners or trustees who are residents of this
246-9 state is greater than the number who are residents of any
247-10 other state; or
248-11 "c. None of the criteria of paragraphs a. and b. of
249-12 this subdivision (5) is met but the employer has elected
250-13 coverage in this state, or the employer having failed to elect
251-14 coverage in any state, the individual has filed a claim for
252-15 benefits, based on such service, under the law of this state.
253-16 "d. An "American employer," for the purpose of this
254-17 subsection, means a person who is:
255-18 "1. An individual who is a resident of the United
256-19 States; or
257-20 "2. A partnership, if two-thirds or more of the
258-21 partners are residents of the United States; or
259-22 "3. A trust, if all of the trustees are residents of
260-23 the United States; or
261-24 "4. A corporation organized under the laws of the
262-25 United States or of any state.
263-Page 10 SB150
264-1 "e. For the purposes of this subdivision (5), the
265-2 term "United States" includes the states of the United States,
266-3 the District of Columbia, the Commonwealth of Puerto Rico, and
267-4 in the case of the Virgin Islands, after December 31 of the
268-5 year in which the U.S. Secretary of Labor approves the Virgin
269-6 Islands' Unemployment Insurance Law for the first time.
270-7 "(6) Notwithstanding subdivision (8) of this
271-8 subsection (a), all service performed by an officer or a
272-9 member of the crew of an American vessel on or in connection
273-10 with such vessel, if the operating office from which the
274-11 operations of such vessel operating on navigable waters
275-12 within, or within and without, the United States are
276-13 ordinarily and regularly supervised, managed, directed, and
277-14 controlled, is within this state.
278-15 "(7) Notwithstanding any other provisions of this
279-16 section, service with respect to which a tax is required to be
280-17 paid under any federal law imposing a tax against which credit
281-18 may be taken for contributions required to be paid into a
282-19 state unemployment fund or which as a condition for full tax
283-20 credit against the tax imposed by the Federal Unemployment Tax
284-21 Act is required to be covered under this chapter.
285-22 "(8) Subject to the other provisions of this
286-23 section, the term "employment" shall include an employee's
287-24 entire service, performed within or both within and without
288-25 this state if:
289-Page 11 SB150
290-1 "a.1. The service is localized in this state; or
291-2 "b. 2. The service is not localized in any state but
292-3 some of the service is performed in this state and the base of
293-4 operations, or, if there is no base of operations, then the
294-5 place from which such service is directed or controlled is in
295-6 this state, or the base of operations or place from which such
296-7 service is directed or controlled is not in any state in which
297-8 some part of the service is performed, but the employee's
298-9 residence is in this state;
299-10 "c. b. Service shall be deemed to be localized
300-11 within a state if the service is performed entirely within
301-12 such state, or the service is performed both within and
302-13 without such state, but the service performed without such
303-14 state is incidental to the employee's service within the
304-15 state; for example, service which is temporary or transitory
305-16 in nature or consists of isolated transactions;.
306-17 "d. c. The service shall be deemed to be localized
307-18 in this state wherever such service is performed within the
308-19 United States, as defined in paragraph (a)(5)e. of subdivision
309-20 (5) of this subsection, if such service is not covered under
310-21 the unemployment compensation law of any other state, as
311-22 defined in Section 25-4-14, and the place from which such
312-23 service is directed or controlled is in this state.
313-24 "(9) Services not covered under subdivision (8) of
314-25 this subsection (a) and performed entirely without the state,
315-Page 12 SB150
316-1 with respect to no part of which contributions are required
317-2 and paid under an unemployment compensation law of any other
318-3 state or of the federal government, shall be deemed to be
319-4 employment subject to this chapter if the employee performing
320-5 such service is a resident of this state and the secretary
321-6 approves the election of the employing unit for whom such
322-7 services are performed. The entire service of such employee
323-8 shall be deemed to be "employment" subject to this chapter.
324-9 "(10) The term "employment" includes a person's
325-10 entire services if such service is deemed performed in this
326-11 state by virtue of reciprocal agreements pursuant to the
327-12 provisions of Section 25-4-120 and does not include any
328-13 service which by virtue of such agreement is deemed performed
329-14 in another state.
330-15 "(11) The term "employment" includes services in the
331-16 employ of an Indian tribe. The term "Indian tribe" has the
332-17 meaning given the term by Section 4(e) of the Indian
333-18 Self-Determination and Education Assistance Act, (25 USC
334-19 450b(c)) 25 U.S.C. § 5304, and includes any subdivision,
335-20 subsidiary, or business enterprise wholly owned by the Indian
336-21 tribe.
337-22 "(b) The term "employment" shall not include:
338-23 "(1) Except as provided in paragraph (a)(4)a. of
339-24 subdivision (4) of subsection (a) of this section, service
340-25 performed by an individual in agricultural labor. For purposes
341-Page 13 SB150
342-1 of this chapter, the term "agricultural labor" means any
343-2 service performed prior to January 1, 1978, which was
344-3 agricultural labor as defined in this section prior to such
345-4 date, and remunerated service performed after December 31,
346-5 1977, if such service was performed:
347-6 "a. On a farm, in the employ of any employing unit,
348-7 in connection with cultivating the soil, or in connection with
349-8 raising or harvesting any agricultural or horticultural
350-9 commodity, including the raising, shearing, feeding, caring
351-10 for, training, and management of livestock, bees, poultry, and
352-11 fur-bearing animals and wildlife.
353-12 "b. In the employ of the owner or tenant or other
354-13 operator of a farm, in connection with the operation,
355-14 management, conservation, improvement, or maintenance of such
356-15 farm and its tools and equipment, or in salvaging timber or
357-16 clearing land of brush and other debris left by a hurricane,
358-17 if the major part of such service is performed on a farm.
359-18 "c. In connection with the production or harvesting
360-19 of any commodity defined as an agricultural commodity in
361-20 Section 15(g) of the Agricultural Marketing Act, as amended
362-21 (46 Stat. 1550, Sec. 3; 12 U.S.C. § 1141j), or in connection
363-22 with the ginning of cotton, or in connection with the
364-23 operation or maintenance of ditches, canals, reservoirs, or
365-24 waterways, not owned or operated for profit, used exclusively
366-25 for supplying and storing water for farming purposes.
367-Page 14 SB150
368-1 "d. In the employ of the operator of a farm, a group
369-2 of operators of farms (or a cooperative organization of which
370-3 such operators are members) in handling, planting, drying,
371-4 packing, packaging, processing, freezing, grading, storing, or
372-5 delivering to storage or to market or to a carrier for
373-6 transportation to market, in its unmanufactured state, any
374-7 agricultural or horticultural commodities, but only if such
375-8 operator or group of operators (or a cooperative organization
376-9 of which such operators are members) produced more than one
377-10 half of the commodity with respect to which service is
378-11 performed; provided, however, the provisions of this paragraph
379-12 shall not be deemed to be applicable with respect to service
380-13 performed in connection with commercial canning or commercial
381-14 freezing or in connection with any agricultural or
382-15 horticultural commodity after its delivery to a terminal
383-16 market for distribution for consumption.
384-17 "e. On a farm operated for profit if such service is
385-18 not in the course of the employer's trade or business.
386-19 "As used in this subdivision, the term "farm"
387-20 includes stock, dairy, poultry, fruit, fur-bearing animal and
388-21 truck farms, plantations, ranches, nurseries, ranges,
389-22 greenhouses, or other similar structures used primarily for
390-23 the raising of agricultural or horticultural commodities, and
391-24 orchards.
392-Page 15 SB150
393-1 "(2) Prior to January 1, 1978, domestic services in
394-2 a private home, local college club, or local chapter of a
395-3 college fraternity or sorority and after December 31, 1977, if
396-4 the provisions of paragraph (a)(4)b. of subdivision (4) of
397-5 subsection (a) of this section are not met.
398-6 "(3) Casual labor not in the usual course of the
399-7 employer's trade or business performed after December 31,
400-8 1971, in any calendar quarter by an individual, unless the
401-9 cash remuneration paid for such service is fifty dollars ($50)
402-10 or more and such service is performed by an individual who is
403-11 regularly employed by such employing unit to perform such
404-12 service. For the purposes of this subdivision, an individual
405-13 shall be deemed to be regularly employed to perform service
406-14 not in the course of an employing unit's trade or business
407-15 during a calendar quarter only if either of the following
408-16 apply:
409-17 "a. On each of some 24 days during such quarter such
410-18 individual performs such service for some portion of the day;
411-19 or.
412-20 "b. Such individual was regularly employed (,as
413-21 determined under paragraph a., of this subdivision) by such
414-22 employing unit in the performance of such service during the
415-23 preceding calendar quarter.
416-24 "(4) Service performed by an individual in the
417-25 employ of his or her son, daughter, or spouse, and service
418-Page 16 SB150
419-1 performed by an individual under the age of 21 in the employ
86+26 within the meaning of this chapter only if the political
87+27 subdivision or its instrumentalities has elected to become an
88+Page 3 1 employer subject to this chapter pursuant to Section 25-4-131
89+2 for all such service in the employ of the political
90+3 subdivision and its instrumentalities and has not ceased to be
91+4 an employer subject hereto pursuant to Section 25-4-130 or
92+5 Section 25-4-131; and
93+6 "b. After December 31, 1977, in the employ of this
94+7 state or any of its instrumentalities or of any political
95+8 subdivision thereof or any of its instrumentalities or any
96+9 instrumentality of more than one of the foregoing or any
97+10 instrumentality of any one of the foregoing and one or more
98+11 other states or political subdivisions, provided, however,
99+12 that such service is excluded from "employment" as defined in
100+13 the Federal Unemployment Tax Act by Section 3306(c)(7) of that
101+14 act and is not excluded from "employment" under subsection (b)
102+15 of this section.
103+16 "c. For the purposes of this chapter, the term
104+17 "governmental entity" in reference to this state is defined as
105+18 the entirety of state government, but for the purposes of
106+19 reporting, accounting, or other administrative procedures,
107+20 such entity shall be divided into each department, agency,
108+21 board, commission, and any other separately organized division
109+22 or instrumentality of this state. The state Comptroller of
110+23 this state shall make such payments to the secretary as are
111+24 required by the other provisions of this chapter as they
112+25 pertain to the various organizational components of the state.
113+26 The state Comptroller is hereby authorized to require of such
114+27 components such payments as are necessary to discharge his or
115+Page 4 1 her responsibilities and shall enforce such payments under the
116+2 provisions of subsection (b) of Section 25-4-51.
117+3 "d. The term "governmental entity" in reference to
118+4 any political subdivision is defined as each county and its
119+5 instrumentalities and each municipality and its
120+6 instrumentalities, except that each instrumentality of a
121+7 political subdivision which is separately incorporated or
122+8 otherwise removed from the control of the governing body of
123+9 the political subdivision shall be a separate governmental
124+10 entity. Instrumentalities organized and operated jointly by
125+11 any combination of two or more of the aforementioned entities
126+12 shall be considered as constituting a separate governmental
127+13 entity. The foregoing notwithstanding, each separate public
128+14 school system shall constitute a separate governmental entity.
129+15 "(3) Service performed after December 31, 1971, by
130+16 an individual in the employ of a religious, charitable,
131+17 educational, or other organization but only if all of the
132+18 following conditions are met:
133+19 "a. The service is excluded from "employment" as
134+20 defined in the Federal Unemployment Tax Act solely by reason
135+21 of Section 3306(c)(8) of that act, and is not excluded from
136+22 "employment" under subdivisions (8) and (21) of subsection (b)
137+23 of this section; and.
138+24 "b. The organization had four or more individuals in
139+25 employment for some portion of a day in each of 20 different
140+26 weeks, whether or not such weeks were consecutive, within
141+Page 5 1 either the current or preceding calendar year, regardless of
142+2 whether they were employed at the same moment of time.
143+3 "(4)a. Service performed after December 31, 1977, by
144+4 an individual in agricultural labor, as defined in subdivision
145+5 (b)(1) of subsection (b) of this section, when:
146+6 "1. Such service is performed for an employing unit
147+7 which:
148+8 "(i) During any calendar quarter in either the
149+9 current or the preceding calendar year paid remuneration in
150+10 cash of $20,000 or more to individuals employed in
151+11 agricultural labor (not taking into account service in
152+12 agricultural labor performed before January 1, 1984, by an
153+13 alien referred to in subparagraph 2.). of this paragraph a.;
154+14 or
155+15 "(ii) For some portion of a day in each of 20
156+16 different calendar weeks, whether or not such weeks were
157+17 consecutive, in either the current or the preceding calendar
158+18 year, employed in agricultural labor (not taking into account
159+19 service in agricultural labor performed before January 1,
160+20 1984, by an alien referred to in subparagraph 2.) of this
161+21 paragraph a., 10 or more individuals, regardless of whether
162+22 they were employed at the same moment of time.
163+23 "2. For the purposes of this paragraph a., such
164+24 service is not considered to be performed in agricultural
165+25 labor if performed before January 1, 1984, by an individual
166+26 who is an alien admitted to the United States to perform
167+Page 6 1 service in agricultural labor pursuant to Sections 214(c) and
168+2 101(a)(15)(H) of the Immigration and Nationality Act.
169+3 "3. For the purposes of this paragraph a., any
170+4 individual who is a member of a crew furnished by a crew
171+5 leader to perform service in agricultural labor for any other
172+6 person shall be treated as an employee of such crew leader.
173+7 "(i) If such crew leader holds a valid certificate
174+8 of registration under the Farm Labor Contractor Registration
175+9 Act of 1963, or substantially all the members of such crew
176+10 operate or maintain tractors, mechanized harvesting or crop
177+11 dusting equipment, or any other mechanized equipment, which is
178+12 provided by such crew leader; and
179+13 "(ii) If such individual is not an employee of any
180+14 other person within the meaning of subdivision (1) of this
181+15 subsection.
182+16 "4. For the purposes of this subdivision (4) in the
183+17 case of any individual who is furnished by a crew leader to
184+18 perform service in agricultural labor for any other person and
185+19 who is not treated as an employee of such crew leader under
186+20 subparagraph a.3. of this paragraph a.:
187+21 "(i) Such other person and not the crew leader shall
188+22 be treated as the employer of such individual; and
189+23 "(ii) Such other person shall be treated as having
190+24 paid cash remuneration to such individual in an amount equal
191+25 to the amount of cash remuneration paid to such individual by
192+26 the crew leader (either on his or her own behalf or on the
193+Page 7 1 behalf of such other person) for the service in agricultural
194+2 labor performed for such other person.
195+3 "5. For the purposes of this paragraph a., the term
196+4 "crew leader" shall mean an individual who:
197+5 "(i) Furnishes individuals to perform service in
198+6 agricultural labor for any other persons;
199+7 "(ii) Pays (either on his or her own behalf or on
200+8 behalf of such other person) the individuals so furnished by
201+9 him or her for the service in agricultural labor performed by
202+10 them; and
203+11 "(iii) Has not entered into a written agreement with
204+12 the farm operator under which such crew leader is designated
205+13 as an employee of such farm operator.
206+14 "b. Domestic service after December 31, 1977, in a
207+15 private home, local college club, or local chapter of a
208+16 college fraternity or sorority performed for a person, their
209+17 his or her spouse, or estate who paid cash remuneration of one
210+18 thousand dollars ($1,000) or more in any calendar quarter in
211+19 the current calendar year or the preceding calendar year to
212+20 individuals employed in such domestic service.
213+21 "For the purposes of this paragraph b. the term
214+22 "domestic service" includes all service for a person in the
215+23 operation and maintenance of a private household, local
216+24 college club, or local chapter of a college fraternity or
217+25 sorority as distinguished from service as an employee in the
218+26 pursuit of an employer's trade, occupation, profession,
219+27 enterprise, or vocation.
220+Page 8 1 "(5) The term "employment" shall include the service
221+2 of an individual who is a citizen of the United States,
222+3 performed outside the United States after December 31, 1971,
223+4 (except in Canada or in the case of the Virgin Islands after
224+5 December 31, 1971, and prior to January 1 of the year
225+6 following the year in which the U.S. Secretary of Labor
226+7 approves the Unemployment Compensation Law of the Virgin
227+8 Islands under Section 3304(a) of the Internal Revenue Code of
228+9 1954) in the employ of an American employer (other than
229+10 service which is deemed "employment" under the provisions of
230+11 subdivision (8) or (9) of this subsection (a) or the parallel
231+12 provisions of another state's law), if:
232+13 "a. The employer's principal place of business in
233+14 the United States is located in this state; or
234+15 "b. The employer has no place of business in the
235+16 United States, but:
236+17 "1. The employer is an individual who is a resident
237+18 of this state; or
238+19 "2. The employer is a corporation which is organized
239+20 under the laws of this state; or
240+21 "3. The employer is a partnership or a trust and the
241+22 number of the partners or trustees who are residents of this
242+23 state is greater than the number who are residents of any
243+24 other state; or
244+25 "c. None of the criteria of paragraphs a. and b. of
245+26 this subdivision (5) is met but the employer has elected
246+27 coverage in this state, or the employer having failed to elect
247+Page 9 1 coverage in any state, the individual has filed a claim for
248+2 benefits, based on such service, under the law of this state.
249+3 "d. An "American employer," for the purpose of this
250+4 subsection, means a person who is:
251+5 "1. An individual who is a resident of the United
252+6 States; or
253+7 "2. A partnership, if two-thirds or more of the
254+8 partners are residents of the United States; or
255+9 "3. A trust, if all of the trustees are residents of
256+10 the United States; or
257+11 "4. A corporation organized under the laws of the
258+12 United States or of any state.
259+13 "e. For the purposes of this subdivision (5), the
260+14 term "United States" includes the states of the United States,
261+15 the District of Columbia, the Commonwealth of Puerto Rico, and
262+16 in the case of the Virgin Islands, after December 31 of the
263+17 year in which the U.S. Secretary of Labor approves the Virgin
264+18 Islands' Unemployment Insurance Law for the first time.
265+19 "(6) Notwithstanding subdivision (8) of this
266+20 subsection (a), all service performed by an officer or a
267+21 member of the crew of an American vessel on or in connection
268+22 with such vessel, if the operating office from which the
269+23 operations of such vessel operating on navigable waters
270+24 within, or within and without, the United States are
271+25 ordinarily and regularly supervised, managed, directed, and
272+26 controlled, is within this state.
273+Page 10 1 "(7) Notwithstanding any other provisions of this
274+2 section, service with respect to which a tax is required to be
275+3 paid under any federal law imposing a tax against which credit
276+4 may be taken for contributions required to be paid into a
277+5 state unemployment fund or which as a condition for full tax
278+6 credit against the tax imposed by the Federal Unemployment Tax
279+7 Act is required to be covered under this chapter.
280+8 "(8) Subject to the other provisions of this
281+9 section, the term "employment" shall include an employee's
282+10 entire service, performed within or both within and without
283+11 this state if:
284+12 "a.1. The service is localized in this state; or
285+13 "b. 2. The service is not localized in any state but
286+14 some of the service is performed in this state and the base of
287+15 operations, or, if there is no base of operations, then the
288+16 place from which such service is directed or controlled is in
289+17 this state, or the base of operations or place from which such
290+18 service is directed or controlled is not in any state in which
291+19 some part of the service is performed, but the employee's
292+20 residence is in this state;
293+21 "c. b. Service shall be deemed to be localized
294+22 within a state if the service is performed entirely within
295+23 such state, or the service is performed both within and
296+24 without such state, but the service performed without such
297+25 state is incidental to the employee's service within the
298+26 state; for example, service which is temporary or transitory
299+27 in nature or consists of isolated transactions;.
300+Page 11 1 "d. c. The service shall be deemed to be localized
301+2 in this state wherever such service is performed within the
302+3 United States, as defined in paragraph (a)(5)e. of subdivision
303+4 (5) of this subsection, if such service is not covered under
304+5 the unemployment compensation law of any other state, as
305+6 defined in Section 25-4-14, and the place from which such
306+7 service is directed or controlled is in this state.
307+8 "(9) Services not covered under subdivision (8) of
308+9 this subsection (a) and performed entirely without the state,
309+10 with respect to no part of which contributions are required
310+11 and paid under an unemployment compensation law of any other
311+12 state or of the federal government, shall be deemed to be
312+13 employment subject to this chapter if the employee performing
313+14 such service is a resident of this state and the secretary
314+15 approves the election of the employing unit for whom such
315+16 services are performed. The entire service of such employee
316+17 shall be deemed to be "employment" subject to this chapter.
317+18 "(10) The term "employment" includes a person's
318+19 entire services if such service is deemed performed in this
319+20 state by virtue of reciprocal agreements pursuant to the
320+21 provisions of Section 25-4-120 and does not include any
321+22 service which by virtue of such agreement is deemed performed
322+23 in another state.
323+24 "(11) The term "employment" includes services in the
324+25 employ of an Indian tribe. The term "Indian tribe" has the
325+26 meaning given the term by Section 4(e) of the Indian
326+27 Self-Determination and Education Assistance Act, (25 USC
327+Page 12 1 450b(c)) 25 U.S.C. § 5304, and includes any subdivision,
328+2 subsidiary, or business enterprise wholly owned by the Indian
329+3 tribe.
330+4 "(b) The term "employment" shall not include:
331+5 "(1) Except as provided in paragraph (a)(4)a. of
332+6 subdivision (4) of subsection (a) of this section, service
333+7 performed by an individual in agricultural labor. For purposes
334+8 of this chapter, the term "agricultural labor" means any
335+9 service performed prior to January 1, 1978, which was
336+10 agricultural labor as defined in this section prior to such
337+11 date, and remunerated service performed after December 31,
338+12 1977, if such service was performed:
339+13 "a. On a farm, in the employ of any employing unit,
340+14 in connection with cultivating the soil, or in connection with
341+15 raising or harvesting any agricultural or horticultural
342+16 commodity, including the raising, shearing, feeding, caring
343+17 for, training, and management of livestock, bees, poultry, and
344+18 fur-bearing animals and wildlife.
345+19 "b. In the employ of the owner or tenant or other
346+20 operator of a farm, in connection with the operation,
347+21 management, conservation, improvement, or maintenance of such
348+22 farm and its tools and equipment, or in salvaging timber or
349+23 clearing land of brush and other debris left by a hurricane,
350+24 if the major part of such service is performed on a farm.
351+25 "c. In connection with the production or harvesting
352+26 of any commodity defined as an agricultural commodity in
353+27 Section 15(g) of the Agricultural Marketing Act, as amended
354+Page 13 1 (46 Stat. 1550, Sec. 3; 12 U.S.C. § 1141j), or in connection
355+2 with the ginning of cotton, or in connection with the
356+3 operation or maintenance of ditches, canals, reservoirs, or
357+4 waterways, not owned or operated for profit, used exclusively
358+5 for supplying and storing water for farming purposes.
359+6 "d. In the employ of the operator of a farm, a group
360+7 of operators of farms (or a cooperative organization of which
361+8 such operators are members) in handling, planting, drying,
362+9 packing, packaging, processing, freezing, grading, storing, or
363+10 delivering to storage or to market or to a carrier for
364+11 transportation to market, in its unmanufactured state, any
365+12 agricultural or horticultural commodities, but only if such
366+13 operator or group of operators (or a cooperative organization
367+14 of which such operators are members) produced more than one
368+15 half of the commodity with respect to which service is
369+16 performed; provided, however, the provisions of this paragraph
370+17 shall not be deemed to be applicable with respect to service
371+18 performed in connection with commercial canning or commercial
372+19 freezing or in connection with any agricultural or
373+20 horticultural commodity after its delivery to a terminal
374+21 market for distribution for consumption.
375+22 "e. On a farm operated for profit if such service is
376+23 not in the course of the employer's trade or business.
377+24 "As used in this subdivision, the term "farm"
378+25 includes stock, dairy, poultry, fruit, fur-bearing animal and
379+26 truck farms, plantations, ranches, nurseries, ranges,
380+27 greenhouses, or other similar structures used primarily for
381+Page 14 1 the raising of agricultural or horticultural commodities, and
382+2 orchards.
383+3 "(2) Prior to January 1, 1978, domestic services in
384+4 a private home, local college club, or local chapter of a
385+5 college fraternity or sorority and after December 31, 1977, if
386+6 the provisions of paragraph (a)(4)b. of subdivision (4) of
387+7 subsection (a) of this section are not met.
388+8 "(3) Casual labor not in the usual course of the
389+9 employer's trade or business performed after December 31,
390+10 1971, in any calendar quarter by an individual, unless the
391+11 cash remuneration paid for such service is fifty dollars ($50)
392+12 or more and such service is performed by an individual who is
393+13 regularly employed by such employing unit to perform such
394+14 service. For the purposes of this subdivision, an individual
395+15 shall be deemed to be regularly employed to perform service
396+16 not in the course of an employing unit's trade or business
397+17 during a calendar quarter only if either of the following
398+18 apply:
399+19 "a. On each of some 24 days during such quarter such
400+20 individual performs such service for some portion of the day;
401+21 or.
402+22 "b. Such individual was regularly employed (,as
403+23 determined under paragraph a., of this subdivision) by such
404+24 employing unit in the performance of such service during the
405+25 preceding calendar quarter.
406+26 "(4) Service performed by an individual in the
407+27 employ of his or her son, daughter, or spouse, and service
408+Page 15 1 performed by an individual under the age of 21 in the employ
420409 2 of his or her father or mother.
421410 3 "(5) Prior to January 1, 1978, except to the extent
422411 4 set forth in subdivision (a)(2) of subsection (a) of this
423412 5 section, service performed in the employ of this state, or any
424413 6 political subdivision thereof, or of any instrumentality of
425414 7 this state or its political subdivisions.
426415 8 "(6) Prior to January 1, 1978, except as provided in
427416 9 subdivision (a)(2) of subsection (a) of this section, service
428417 10 performed in the employ of any other state or any political
429418 11 subdivisions thereof, or any instrumentality of any one or
430419 12 more of the foregoing which is wholly owned by one or more
431420 13 such states or political subdivisions, and any service
432421 14 performed in the employ of any instrumentality of any one or
433422 15 more other states or their political subdivisions to the
434423 16 extent that the instrumentality is, with respect to such
435424 17 service, immune, under the Constitution of the United States
436425 18 from the tax imposed by Section 26 U.S.C. § 3301 of the
437426 19 Federal Internal Revenue Code.
438427 20 "(7) Service performed in the employ of the United
439428 21 States government or of any instrumentality wholly owned by
440429 22 the United States, except that if the Congress of the United
441430 23 States shall permit states to require any instrumentalities of
442431 24 the United States to make payments into an unemployment fund
443432 25 under this chapter, then to the extent permitted by Congress
444-Page 17 SB150
445-1 and from and after the date as of which such permission
446-2 becomes effective, all of the provisions of this chapter shall
447-3 be applicable to such instrumentalities and to services
448-4 performed by employees for such instrumentalities in the same
449-5 manner, to the same extent, and on the same terms as to all
450-6 other employers and employing units; provided, however, if
451-7 this state should not be certified by the Secretary of Labor
452-8 under Section 26 U.S.C. § 3304(c) of the Federal Internal
453-9 Revenue Code for any year, then the payment required of such
454-10 instrumentality with respect to such year shall be deemed to
455-11 have been erroneously collected within the meaning of Article
456-12 3 of this chapter and shall be refunded by the secretary from
457-13 the fund in accordance with the provisions of Section
458-14 25-4-137.
459-15 "(8) Except to the extent set forth in subdivision
460-16 (a)(3) of subsection (a) of this section, service performed in
461-17 the employ of a corporation, community chest, fund, or
462-18 foundation organized and operated exclusively for religious,
463-19 charitable, scientific, literary, or educational purposes, or
464-20 for the prevention of cruelty to children or animals, no part
465-21 of the net earnings of which inures to the benefit of any
466-22 private shareholder or individual, and no substantial part of
467-23 the activities of which is carrying on propaganda, or
468-24 otherwise attempting to influence legislation.
469-Page 18 SB150
470-1 "(9) Service performed after June 30, 1939, with
471-2 respect to which unemployment compensation is payable under
472-3 the Railroad Unemployment Insurance Act of Congress (52 Stat.
473-4 1094, as amended) and services with respect to which
474-5 unemployment compensation is payable under any other
475-6 unemployment compensation system established by an act of
476-7 Congress; provided, however, that the secretary is hereby
477-8 authorized and directed to enter into agreements with the
478-9 proper agencies under such act or acts of Congress, which
479-10 agreements shall become effective 10 days after publication
480-11 thereof in the manner provided in Section 25-4-111 for general
481-12 rules to provide reciprocal treatment to individuals who have,
482-13 after acquiring potential rights to benefits under this
483-14 chapter acquired rights to unemployment compensation under
484-15 such act or acts of Congress, or who have, after acquiring
485-16 potential rights to unemployment compensation under such act
486-17 or acts of Congress, acquired rights to benefits under this
487-18 chapter.
488-19 "(10) Service performed by an individual as an
489-20 insurance agent or as an insurance solicitor, if all such
490-21 service performed by such individual is performed for
491-22 remuneration solely by way of commission.
492-23 "(11) Service performed, in the employ of a school,
493-24 college, or university, if such service is performed by either
494-25 of the following:
495-Page 19 SB150
496-1 "a. By a student who is enrolled and is regularly
497-2 attending classes at such school, college, or university; or.
498-3 "b. By the spouse of such a student, if such spouse
499-4 is advised at the time such spouse commences to perform such
500-5 service, that:
501-6 "1. The employment of such spouse to perform such
502-7 service is provided under a program to provide financial
503-8 assistance to such student by such school, college, or
504-9 university; and
505-10 "2. Such employment will not be covered by any
506-11 program of unemployment insurance.
507-12 "(12) Service performed by an individual who is
508-13 enrolled at a nonprofit or public educational institution
509-14 which normally maintains a regular faculty and curriculum and
510-15 normally has a regularly organized body of students in
511-16 attendance at the place where its educational activities are
512-17 carried on, as a student in a full-time program, taken for
513-18 credit at such institution, which combines academic
514-19 instruction with work experience, if such service is an
515-20 integral part of such program, and such institution has so
516-21 certified to the employer, except this paragraph subdivision
517-22 shall not apply to service performed in a program established
518-23 for or on behalf of an employer or group of employers.
519-24 "(13) Service performed in the employ of a hospital,
520-25 if such service is performed by a patient of the hospital, as
521-Page 20 SB150
522-1 defined in subsection (e) of this section, or service
523-2 performed as a student nurse in the employ of a hospital or a
524-3 nurses' training school by an individual who is enrolled and
525-4 is regularly attending classes in a nurses' training school
526-5 chartered or approved pursuant to state laws, and service
527-6 performed as an intern in the employ of a hospital by an
528-7 individual who has completed a four-year course in a medical
529-8 school chartered or approved pursuant to state law.
530-9 "(14) Service performed by an individual under the
531-10 age of 18 in the delivery or distribution of newspapers or
532-11 shopping news, not including delivery or distribution to any
533-12 point for subsequent delivery or distribution.
534-13 "(15) Except as provided in subdivisions (2) and (3)
535-14 of subsection (a) of this section, any employment or service
536-15 which is excluded by the express statutory provisions of
537-16 Section 26 U.S.C. § 3306 of the Federal Internal Revenue Code
538-17 as amended.
539-18 "(16) Service performed by an officer or member of
540-19 the crew of a vessel which is not an American vessel. The term
541-20 "American vessel" means any vessel documented or numbered
542-21 under the law of the United States, and includes any vessel
543-22 which is neither documented nor numbered under the laws of the
544-23 United States nor documented under the laws of any foreign
545-24 country, if its crew is employed solely by one or more
546-Page 21 SB150
547-1 citizens or residents of the United States or corporations
548-2 organized under the laws of the United States or of any state.
549-3 "(17) Service performed by an individual in (or as
550-4 an officer or member of the crew of a vessel while it is
551-5 engaged in) the catching, taking, harvesting, cultivating, or
552-6 farming of any kind of fish, shellfish, crustacea, sponges,
553-7 seaweeds, or other aquatic forms of animal and vegetable life
554-8 (including service performed by any such individual as an
555-9 ordinary incident to any such activity), except:
556-10 "a. Service performed in connection with the
557-11 catching or taking of salmon or halibut for commercial
558-12 purposes; and
559-13 "b. Service performed on or in connection with a
560-14 vessel of more than 10 net tons (determined in the manner
561-15 provided for determining the register tonnage of merchant
562-16 vessels under the laws of the United States).
563-17 "(18) Service performed in the employ of a foreign
564-18 government (including service as a consular or other officer
565-19 or employee or a nondiplomatic representative).
566-20 "(19) Service performed in the employ of an
567-21 instrumentality wholly owned by a foreign government if both
568-22 of the following apply:
569-23 "a. The service is of a character similar to that
570-24 performed in foreign countries by employees of the United
571-25 States government or of an instrumentality thereof; and.
572-Page 22 SB150
573-1 "b. The secretary finds that the United States
574-2 Secretary of State has certified to the United States
575-3 Secretary of the Treasury that the foreign government, with
576-4 respect to whose instrumentality exemption is claimed, grants
577-5 an equivalent exemption with respect to similar service
578-6 performed in the foreign country by employees of the United
579-7 States government and of instrumentalities thereof.
580-8 "(20) Except to the extent set forth in subdivision
581-9 (a)(3) of subsection (a) of this section, service performed in
582-10 any calendar quarter in the employ of any organization exempt
583-11 from income tax under Section 26 U.S.C. § 501(a) of the
584-12 Federal Internal Revenue Code (other than organizations
585-13 described in Section 26 U.S.C. § 401(a)) or under Section 26
586-14 U.S.C. § 521 of such Code, if the remuneration for such
587-15 service is less than fifty dollars ($50).
588-16 "(21) Services performed for any governmental
589-17 entity, institution, or organization described in subdivisions
590-18 (2) and (3) of subsection (a) of this section:
591-19 "a. In the employ of either of the following:
592-20 "1. A church or convention or association of
593-21 churches; or.
594-22 "2. An organization that is operated primarily for
595-23 religious purposes and which is either operated, supervised,
596-24 controlled, or principally supported by a church or convention
597-25 or association of churches; or
598-Page 23 SB150
599-1 "b. By a duly ordained, commissioned, or licensed
600-2 minister of a church in the exercise of his or her ministry or
601-3 by a member of a religious order in the exercise of duties
602-4 required by such order; or
603-5 "c. Except as provided in subdivision (a)(7) of
604-6 subsection (a) of Section 25-4-8:
605-7 "1. Prior to January 1, 1978, in the employ of a
606-8 school which is not an institution of higher education;
607-9 "2. After December 31, 1977, in the employ of a
608-10 governmental entity referred to in paragraph (a)(2)b. of
609-11 subdivision (2) of subsection (a) of this section, if such
610-12 service is performed by an individual in the exercise of any
611-13 of the following duties:
612-14 "(i) As an elected official;.
613-15 "(ii) As a member of a legislative body, or a member
614-16 of the judiciary of this state or any of its political
615-17 subdivisions or of an Indian tribe;.
616-18 "(iii) As a member of the State National Guard or
617-19 Air National Guard;.
618-20 "(iv) As an employee serving on a temporary basis in
619-21 case of fire, storm, snow, earthquake, flood, or similar
620-22 emergency (this exclusion does not apply to permanent
621-23 employees whose usual responsibilities include emergency
622-24 situations);.
623-Page 24 SB150
624-1 "(v) In a position which, under or pursuant to the
625-2 laws of this state or of an Indian tribe, is designated as a
626-3 major nontenured policymaking or advisory position or a
627-4 policymaking or advisory position the performance of the
628-5 duties of which ordinarily does not require more than 8 hours
629-6 per week; or.
630-7 "d. In a facility conducted for the purpose of
631-8 carrying out a program of rehabilitation for individuals whose
632-9 earning capacity is impaired by age or physical or mental
633-10 deficiency or injury or providing remunerative work for
634-11 individuals who because of their impaired physical or mental
635-12 capacity cannot be readily absorbed in the competitive labor
636-13 market by an individual receiving such rehabilitation or
637-14 remunerative work; provided however, if an individual's
638-15 employment is otherwise characterized as employment under
639-16 subsection (a) and the individual is performing work under the
640-17 Javits Wagner O'Day Act or a similar set-aside program under
641-18 the laws of the United States, the individual's employment
642-19 shall be considered employment under subsection (a) as of the
643-20 date of such written election.
644-21 "e. As part of an unemployment work relief or work
645-22 training program assisted or financed in whole or in part by
646-23 any federal agency or an agency of a state or political
647-24 subdivision thereof or of an Indian tribe, by an individual
648-25 receiving such work relief or work training; or
649-Page 25 SB150
650-1 "f. For a hospital in a state prison or other state
651-2 correctional institution prior to January 1, 1978, by an
652-3 inmate of the prison or correctional institution and, after
653-4 December 31, 1977, by an inmate of a custodial or penal
654-5 institution.
655-6 "(22) Services performed by an individual as a
656-7 qualified real estate agent. For the purposes of this chapter
657-8 the term "qualified real estate agent" shall mean an
658-9 individual who is a sales person if all of the following
659-10 apply:
660-11 "a. Such individual is a licensed real estate agent;
661-12 and.
662-13 "b. Substantially all of the remuneration for
663-14 services performed as a real estate agent (whether or not paid
664-15 in cash) is directly related to sales or other output
665-16 (including the performance of services), rather than the
666-17 number of hours worked, and.
667-18 "c. The services performed by the individual are
668-19 performed pursuant to a written contract between such
669-20 individual and the person for whom the services are performed
670-21 and such contract provides that the individual will not be
671-22 treated as an employee with respect to such services for
672-23 federal tax purposes.
673-Page 26 SB150
674-1 "(23) Services performed by an individual as a
675-2 direct seller. For the purposes of this chapter the term
676-3 "direct seller" shall mean any individual who:
677-4 "a. Is engaged in the trade or business of selling
678-5 (or soliciting the sale of) consumer products to any buyer on
679-6 a:
680-7 "1. Buy-sell basis, or
681-8 "2. Deposit-commission basis, or
682-9 "3. Any similar basis which the U.S. Secretary of
683-10 the Treasury prescribes by regulations, for resale (by the
684-11 buyer or any other individual), in the home or otherwise than
685-12 in a permanent retail establishment; or
686-13 "b. Is engaged in the trade or business of selling
687-14 (or soliciting the sale of) consumer products to a consumer in
688-15 the home or otherwise than in a permanent retail
689-16 establishment, and
690-17 "c. Substantially all of the remuneration for the
691-18 services performed by such individual as a direct seller
692-19 (whether or not paid in cash) is directly related to sales or
693-20 output (including the performance of services) rather than to
694-21 the number of hours worked, and
695-22 "d. The services performed by such individual are
696-23 performed pursuant to a written contract between such
697-24 individual and the person for whom the services are performed
698-25 and such contract provides that the individual will not be
699-Page 27 SB150
700-1 treated as an employee with respect to such services for
701-2 federal tax purposes.
702-3 "(24) Services performed by an individual as a
703-4 product demonstrator. For the purposes of this chapter, the
704-5 term "product demonstrator" shall mean any individual who
705-6 satisfies both of the following requirements:
706-7 "a. Is engaged in the trade or business of
707-8 demonstrating, exhibiting, or soliciting the purchase of food,
708-9 food-related products offered for sale, or other consumer
709-10 products offered for sale to any buyer on the premises of a
710-11 grocery store, dry good store, or similar retail
711-12 establishment, or trade show;.
712-13 "b. Who performs those services pursuant to a
713-14 written contract between the individual and a person whose
714-15 principal business is providing demonstrators to third parties
715-16 for such purposes and the contract provides that the
716-17 individual will not be treated as an employee with respect to
717-18 the services for federal tax purposes.
718-19 "(25) Services performed by an individual committed
719-20 to a penal institution.
720-21 "(26) A marketplace contractor that interfaces with
721-22 a marketplace platform in the provision of some service to the
722-23 public.
723-24 "a. For the purposes of this chapter, "marketplace
724-25 contractor" means a person or entity that enters into an
725-Page 28 SB150
726-1 agreement with a marketplace platform to use its digital
727-2 network or mobile application to receive connections to
728-3 third-party individuals or entities seeking services.
729-4 "b. For purposes of this chapter, "marketplace
730-5 platform" means a person or entity that does either of the
731-6 following:
732-7 "1. Offers a digital network or mobile application
733-8 that connects marketplace contractors to third-party
734-9 individuals or entities seeking the type of services offered
735-10 by a marketplace contractor.
736-11 "2. Accepts service requests from the public
737-12 exclusively through its digital network or mobile application
738-13 and does not accept service requests by telephone, facsimile,
739-14 or in person at a physical retail location.
740-15 "c. A marketplace contractor shall not be deemed to
741-16 be an employee of a marketplace platform for any purpose under
742-17 this chapter so long as all of the following apply:
743-18 "1. The marketplace contractor and the marketplace
744-19 platform agree in writing that the marketplace contractor is
745-20 an independent contractor with respect to the marketplace
746-21 platform.
747-22 "2. The marketplace platform does not unilaterally
748-23 prescribe specific hours during which the marketplace
749-24 contractor must be available to accept service requests from
750-25 third-party individuals or entities submitted solely through
751-Page 29 SB150
752-1 the online-enabled application, software, website, or system
433+26 and from and after the date as of which such permission
434+27 becomes effective, all of the provisions of this chapter shall
435+Page 16 1 be applicable to such instrumentalities and to services
436+2 performed by employees for such instrumentalities in the same
437+3 manner, to the same extent, and on the same terms as to all
438+4 other employers and employing units; provided, however, if
439+5 this state should not be certified by the Secretary of Labor
440+6 under Section 26 U.S.C. § 3304(c) of the Federal Internal
441+7 Revenue Code for any year, then the payment required of such
442+8 instrumentality with respect to such year shall be deemed to
443+9 have been erroneously collected within the meaning of Article
444+10 3 of this chapter and shall be refunded by the secretary from
445+11 the fund in accordance with the provisions of Section
446+12 25-4-137.
447+13 "(8) Except to the extent set forth in subdivision
448+14 (a)(3) of subsection (a) of this section, service performed in
449+15 the employ of a corporation, community chest, fund, or
450+16 foundation organized and operated exclusively for religious,
451+17 charitable, scientific, literary, or educational purposes, or
452+18 for the prevention of cruelty to children or animals, no part
453+19 of the net earnings of which inures to the benefit of any
454+20 private shareholder or individual, and no substantial part of
455+21 the activities of which is carrying on propaganda, or
456+22 otherwise attempting to influence legislation.
457+23 "(9) Service performed after June 30, 1939, with
458+24 respect to which unemployment compensation is payable under
459+25 the Railroad Unemployment Insurance Act of Congress (52 Stat.
460+26 1094, as amended) and services with respect to which
461+27 unemployment compensation is payable under any other
462+Page 17 1 unemployment compensation system established by an act of
463+2 Congress; provided, however, that the secretary is hereby
464+3 authorized and directed to enter into agreements with the
465+4 proper agencies under such act or acts of Congress, which
466+5 agreements shall become effective 10 days after publication
467+6 thereof in the manner provided in Section 25-4-111 for general
468+7 rules to provide reciprocal treatment to individuals who have,
469+8 after acquiring potential rights to benefits under this
470+9 chapter acquired rights to unemployment compensation under
471+10 such act or acts of Congress, or who have, after acquiring
472+11 potential rights to unemployment compensation under such act
473+12 or acts of Congress, acquired rights to benefits under this
474+13 chapter.
475+14 "(10) Service performed by an individual as an
476+15 insurance agent or as an insurance solicitor, if all such
477+16 service performed by such individual is performed for
478+17 remuneration solely by way of commission.
479+18 "(11) Service performed, in the employ of a school,
480+19 college, or university, if such service is performed by either
481+20 of the following:
482+21 "a. By a student who is enrolled and is regularly
483+22 attending classes at such school, college, or university; or.
484+23 "b. By the spouse of such a student, if such spouse
485+24 is advised at the time such spouse commences to perform such
486+25 service, that:
487+26 "1. The employment of such spouse to perform such
488+27 service is provided under a program to provide financial
489+Page 18 1 assistance to such student by such school, college, or
490+2 university; and
491+3 "2. Such employment will not be covered by any
492+4 program of unemployment insurance.
493+5 "(12) Service performed by an individual who is
494+6 enrolled at a nonprofit or public educational institution
495+7 which normally maintains a regular faculty and curriculum and
496+8 normally has a regularly organized body of students in
497+9 attendance at the place where its educational activities are
498+10 carried on, as a student in a full-time program, taken for
499+11 credit at such institution, which combines academic
500+12 instruction with work experience, if such service is an
501+13 integral part of such program, and such institution has so
502+14 certified to the employer, except this paragraph subdivision
503+15 shall not apply to service performed in a program established
504+16 for or on behalf of an employer or group of employers.
505+17 "(13) Service performed in the employ of a hospital,
506+18 if such service is performed by a patient of the hospital, as
507+19 defined in subsection (e) of this section, or service
508+20 performed as a student nurse in the employ of a hospital or a
509+21 nurses' training school by an individual who is enrolled and
510+22 is regularly attending classes in a nurses' training school
511+23 chartered or approved pursuant to state laws, and service
512+24 performed as an intern in the employ of a hospital by an
513+25 individual who has completed a four-year course in a medical
514+26 school chartered or approved pursuant to state law.
515+Page 19 1 "(14) Service performed by an individual under the
516+2 age of 18 in the delivery or distribution of newspapers or
517+3 shopping news, not including delivery or distribution to any
518+4 point for subsequent delivery or distribution.
519+5 "(15) Except as provided in subdivisions (2) and (3)
520+6 of subsection (a) of this section, any employment or service
521+7 which is excluded by the express statutory provisions of
522+8 Section 26 U.S.C. § 3306 of the Federal Internal Revenue Code
523+9 as amended.
524+10 "(16) Service performed by an officer or member of
525+11 the crew of a vessel which is not an American vessel. The term
526+12 "American vessel" means any vessel documented or numbered
527+13 under the law of the United States, and includes any vessel
528+14 which is neither documented nor numbered under the laws of the
529+15 United States nor documented under the laws of any foreign
530+16 country, if its crew is employed solely by one or more
531+17 citizens or residents of the United States or corporations
532+18 organized under the laws of the United States or of any state.
533+19 "(17) Service performed by an individual in (or as
534+20 an officer or member of the crew of a vessel while it is
535+21 engaged in) the catching, taking, harvesting, cultivating, or
536+22 farming of any kind of fish, shellfish, crustacea, sponges,
537+23 seaweeds, or other aquatic forms of animal and vegetable life
538+24 (including service performed by any such individual as an
539+25 ordinary incident to any such activity), except:
540+Page 20 1 "a. Service performed in connection with the
541+2 catching or taking of salmon or halibut for commercial
542+3 purposes; and
543+4 "b. Service performed on or in connection with a
544+5 vessel of more than 10 net tons (determined in the manner
545+6 provided for determining the register tonnage of merchant
546+7 vessels under the laws of the United States).
547+8 "(18) Service performed in the employ of a foreign
548+9 government (including service as a consular or other officer
549+10 or employee or a nondiplomatic representative).
550+11 "(19) Service performed in the employ of an
551+12 instrumentality wholly owned by a foreign government if both
552+13 of the following apply:
553+14 "a. The service is of a character similar to that
554+15 performed in foreign countries by employees of the United
555+16 States government or of an instrumentality thereof; and.
556+17 "b. The secretary finds that the United States
557+18 Secretary of State has certified to the United States
558+19 Secretary of the Treasury that the foreign government, with
559+20 respect to whose instrumentality exemption is claimed, grants
560+21 an equivalent exemption with respect to similar service
561+22 performed in the foreign country by employees of the United
562+23 States government and of instrumentalities thereof.
563+24 "(20) Except to the extent set forth in subdivision
564+25 (a)(3) of subsection (a) of this section, service performed in
565+26 any calendar quarter in the employ of any organization exempt
566+27 from income tax under Section 26 U.S.C. § 501(a) of the
567+Page 21 1 Federal Internal Revenue Code (other than organizations
568+2 described in Section 26 U.S.C. § 401(a)) or under Section 26
569+3 U.S.C. § 521 of such Code, if the remuneration for such
570+4 service is less than fifty dollars ($50).
571+5 "(21) Services performed for any governmental
572+6 entity, institution, or organization described in subdivisions
573+7 (2) and (3) of subsection (a) of this section:
574+8 "a. In the employ of either of the following:
575+9 "1. A church or convention or association of
576+10 churches; or.
577+11 "2. An organization that is operated primarily for
578+12 religious purposes and which is either operated, supervised,
579+13 controlled, or principally supported by a church or convention
580+14 or association of churches; or
581+15 "b. By a duly ordained, commissioned, or licensed
582+16 minister of a church in the exercise of his or her ministry or
583+17 by a member of a religious order in the exercise of duties
584+18 required by such order; or
585+19 "c. Except as provided in subdivision (a)(7) of
586+20 subsection (a) of Section 25-4-8:
587+21 "1. Prior to January 1, 1978, in the employ of a
588+22 school which is not an institution of higher education;
589+23 "2. After December 31, 1977, in the employ of a
590+24 governmental entity referred to in paragraph (a)(2)b. of
591+25 subdivision (2) of subsection (a) of this section, if such
592+26 service is performed by an individual in the exercise of any
593+27 of the following duties:
594+Page 22 1 "(i) As an elected official;.
595+2 "(ii) As a member of a legislative body, or a member
596+3 of the judiciary of this state or any of its political
597+4 subdivisions or of an Indian tribe;.
598+5 "(iii) As a member of the State National Guard or
599+6 Air National Guard;.
600+7 "(iv) As an employee serving on a temporary basis in
601+8 case of fire, storm, snow, earthquake, flood, or similar
602+9 emergency (this exclusion does not apply to permanent
603+10 employees whose usual responsibilities include emergency
604+11 situations);.
605+12 "(v) In a position which, under or pursuant to the
606+13 laws of this state or of an Indian tribe, is designated as a
607+14 major nontenured policymaking or advisory position or a
608+15 policymaking or advisory position the performance of the
609+16 duties of which ordinarily does not require more than 8 hours
610+17 per week; or.
611+18 "d. In a facility conducted for the purpose of
612+19 carrying out a program of rehabilitation for individuals whose
613+20 earning capacity is impaired by age or physical or mental
614+21 deficiency or injury or providing remunerative work for
615+22 individuals who because of their impaired physical or mental
616+23 capacity cannot be readily absorbed in the competitive labor
617+24 market by an individual receiving such rehabilitation or
618+25 remunerative work; provided however, if an individual's
619+26 employment is otherwise characterized as employment under
620+27 subsection (a) and the individual is performing work under the
621+Page 23 1 Javits Wagner O'Day Act or a similar set-aside program under
622+2 the laws of the United States, the individual's employment
623+3 shall be considered employment under subsection (a) as of the
624+4 date of such written election.
625+5 "e. As part of an unemployment work relief or work
626+6 training program assisted or financed in whole or in part by
627+7 any federal agency or an agency of a state or political
628+8 subdivision thereof or of an Indian tribe, by an individual
629+9 receiving such work relief or work training; or
630+10 "f. For a hospital in a state prison or other state
631+11 correctional institution prior to January 1, 1978, by an
632+12 inmate of the prison or correctional institution and, after
633+13 December 31, 1977, by an inmate of a custodial or penal
634+14 institution.
635+15 "(22) Services performed by an individual as a
636+16 qualified real estate agent. For the purposes of this chapter
637+17 the term "qualified real estate agent" shall mean an
638+18 individual who is a sales person if all of the following
639+19 apply:
640+20 "a. Such individual is a licensed real estate agent;
641+21 and.
642+22 "b. Substantially all of the remuneration for
643+23 services performed as a real estate agent (whether or not paid
644+24 in cash) is directly related to sales or other output
645+25 (including the performance of services), rather than the
646+26 number of hours worked, and.
647+Page 24 1 "c. The services performed by the individual are
648+2 performed pursuant to a written contract between such
649+3 individual and the person for whom the services are performed
650+4 and such contract provides that the individual will not be
651+5 treated as an employee with respect to such services for
652+6 federal tax purposes.
653+7 "(23) Services performed by an individual as a
654+8 direct seller. For the purposes of this chapter the term
655+9 "direct seller" shall mean any individual who:
656+10 "a. Is engaged in the trade or business of selling
657+11 (or soliciting the sale of) consumer products to any buyer on
658+12 a:
659+13 "1. Buy-sell basis, or
660+14 "2. Deposit-commission basis, or
661+15 "3. Any similar basis which the U.S. Secretary of
662+16 the Treasury prescribes by regulations, for resale (by the
663+17 buyer or any other individual), in the home or otherwise than
664+18 in a permanent retail establishment; or
665+19 "b. Is engaged in the trade or business of selling
666+20 (or soliciting the sale of) consumer products to a consumer in
667+21 the home or otherwise than in a permanent retail
668+22 establishment, and
669+23 "c. Substantially all of the remuneration for the
670+24 services performed by such individual as a direct seller
671+25 (whether or not paid in cash) is directly related to sales or
672+26 output (including the performance of services) rather than to
673+27 the number of hours worked, and
674+Page 25 1 "d. The services performed by such individual are
675+2 performed pursuant to a written contract between such
676+3 individual and the person for whom the services are performed
677+4 and such contract provides that the individual will not be
678+5 treated as an employee with respect to such services for
679+6 federal tax purposes.
680+7 "(24) Services performed by an individual as a
681+8 product demonstrator. For the purposes of this chapter, the
682+9 term "product demonstrator" shall mean any individual who
683+10 satisfies both of the following requirements:
684+11 "a. Is engaged in the trade or business of
685+12 demonstrating, exhibiting, or soliciting the purchase of food,
686+13 food-related products offered for sale, or other consumer
687+14 products offered for sale to any buyer on the premises of a
688+15 grocery store, dry good store, or similar retail
689+16 establishment, or trade show;.
690+17 "b. Who performs those services pursuant to a
691+18 written contract between the individual and a person whose
692+19 principal business is providing demonstrators to third parties
693+20 for such purposes and the contract provides that the
694+21 individual will not be treated as an employee with respect to
695+22 the services for federal tax purposes.
696+23 "(25) Services performed by an individual committed
697+24 to a penal institution.
698+25 "(26) A marketplace contractor that interfaces with
699+26 a marketplace platform in the provision of some service to the
700+27 public.
701+Page 26 1 "a. For the purposes of this chapter, "marketplace
702+2 contractor" means a person or entity that enters into an
703+3 agreement with a marketplace platform to use its digital
704+4 network or mobile application to receive connections to
705+5 third-party individuals or entities seeking services.
706+6 "b. For purposes of this chapter, "marketplace
707+7 platform" means a person or entity that does either of the
708+8 following:
709+9 "1. Offers a digital network or mobile application
710+10 that connects marketplace contractors to third-party
711+11 individuals or entities seeking the type of services offered
712+12 by a marketplace contractor.
713+13 "2. Accepts service requests from the public
714+14 exclusively through its digital network or mobile application
715+15 and does not accept service requests by telephone, facsimile,
716+16 or in person at a physical retail location.
717+17 "c. A marketplace contractor shall not be deemed to
718+18 be an employee of a marketplace platform for any purpose under
719+19 this chapter so long as all of the following apply:
720+20 "1. The marketplace contractor and the marketplace
721+21 platform agree in writing that the marketplace contractor is
722+22 an independent contractor with respect to the marketplace
723+23 platform.
724+24 "2. The marketplace platform does not unilaterally
725+25 prescribe specific hours during which the marketplace
726+26 contractor must be available to accept service requests from
727+27 third-party individuals or entities submitted solely through
728+Page 27 1 the online-enabled application, software, website, or system
753729 2 of the marketplace platform.
754730 3 "3. The marketplace platform does not contractually
755731 4 prohibit the marketplace contractor from using any
756732 5 online-enabled application, software, website, or system
757733 6 offered by another marketplace platform, except while
758734 7 performing services through the marketplace platform's
759735 8 online-enabled application or platform.
760736 9 "4. The marketplace platform does not restrict the
761737 10 marketplace contractor from engaging in another occupation or
762738 11 business.
763739 12 "5. The marketplace contractor bears all or
764740 13 substantially all of the expenses incurred by the marketplace
765741 14 contractor in performing the services. Automobile liability
766742 15 insurance premiums will not be considered an expense to be
767743 16 evaluated under this subparagraph.
768744 17 "6. The marketplace platform does not mandate
769745 18 furnished equipment or tools essential for the performance of
770746 19 the work, unless otherwise required by law or for safety
771747 20 purposes.
772748 21 "d. For services performed by a marketplace
773749 22 contractor prior to August 1, 2022, the marketplace contractor
774750 23 shall be treated as an independent contractor of the
775751 24 marketplace platform and not an employee of the marketplace
776-Page 30 SB150
777-1 platform if the requirements set forth in paragraph c. were
778-2 met at the time the services were performed.
779-3 "(c) "Institution of higher education," for the
780-4 purposes of this chapter, means an educational institution to
781-5 which all of the following applies:
782-6 "(1) Admits as regular students only individuals
783-7 having a certificate of graduation from a high school, or the
784-8 recognized equivalent of such a certificate;.
785-9 "(2) Is legally authorized in this state to provide
786-10 a program of education beyond high school;.
787-11 "(3) Provides an educational program for which it
788-12 awards a bachelor's or higher degree, or provides a program
789-13 which is acceptable for full credit toward such a degree, or a
790-14 program of postgraduate or postdoctoral studies, or a program
791-15 of training to prepare students for gainful employment in a
792-16 recognized occupation.
793-17 "(d) For the purposes of this chapter, the term
794-18 "educational institution" means an educational institution,
795-19 (including an institution of higher education as defined in
796-20 subsection (c), of this section) in which all of the following
797-21 apply:
798-22 "(1) Participants, trainees, or students are offered
799-23 an organized course of study or training designed to transfer
800-24 to them knowledge, skills, information, doctrines, attitudes,
801-25 or abilities from, by, or under the guidance of an
802-Page 31 SB150
803-1 instructor(s) or teacher(s) one or more instructors or
804-2 teachers.
805-3 "(2) It is approved, licensed, or issued a permit to
806-4 operate as a school by the State Department of Education or
807-5 other government agency that is authorized within the state to
808-6 approve, license, or issue a permit for the operation of a
809-7 school.
810-8 "(3) The courses of study or training which it
811-9 offers may be academic, technical, trade, or preparation for
812-10 gainful employment in a recognized occupation, as opposed to
813-11 study or training in the social graces or skills or whose
814-12 primary purpose is to provide baby-sitting or day care
815-13 services although some learning activities may be included.
816-14 "In any particular case, the question of whether or
817-15 not an institution is an educational institution (other than
818-16 an institution of higher education) within the meaning of the
819-17 criteria described above will depend on what that particular
820-18 institution actually does.
821-19 "(e) "Hospital" means an institution which has been
822-20 licensed, certified, or approved by the State Board of Health
823-21 or the State Department of Mental Health as a hospital or a
824-22 similar institution operated by the state or any of its
825-23 political subdivisions or by an instrumentality of either of
826-24 the foregoing.
827-Page 32 SB150
828-1 "(f) If the services performed during one half or
829-2 more of any pay period by an employee for the employing unit
830-3 employing him or her constitute employment, all of the
831-4 services of such employee for such period shall be deemed to
832-5 be employment, but if the services performed during more than
833-6 one half of any such pay period by an employee for the
834-7 employing unit employing him or her do not constitute
835-8 employment, then none of the services of such employee for
836-9 such period shall be deemed to be employment. As used in this
837-10 subsection the term "pay period" means a period (of not more
838-11 than 31 consecutive days) for which a payment or remuneration
839-12 is ordinarily made to the employee by the employing unit
840-13 employing the employee.
841-14 "§25-5-1.
842-15 "Throughout this chapter, the following words and
843-16 phrases as used therein shall be considered to have the
844-17 following meanings, respectively, unless the context shall
845-18 clearly indicate a different meaning in the connection used:
846-19 "(1) COMPENSATION. The money benefits to be paid on
847-20 account of injury or death, as provided in Articles 3 and 4.
848-21 The recovery which an employee may receive by action at law
849-22 under Article 2 of this chapter is termed "recovery of civil
850-23 damages," as provided for in Sections 25-5-31 and 25-5-34.
851-24 "Compensation" does not include medical and surgical treatment
852-25 and attention, medicine, medical and surgical supplies, and
853-Page 33 SB150
854-1 crutches and apparatus furnished an employee on account of an
855-2 injury.
856-3 "(2) CHILD or CHILDREN. The terms include posthumous
857-4 children and all other children entitled by law to inherit as
858-5 children of the deceased; stepchildren who were members of the
859-6 family of the deceased, at the time of the accident, and were
860-7 dependent upon him or her for support; a grandchild of the
861-8 deceased employee, whose father is dead or is an invalid, and
862-9 who was supported by and a member of the family of the
863-10 deceased grandparent at the time of the accident.
864-11 "(3) DEPENDENT CHILD or ORPHAN. An unmarried child
865-12 under the age of 18 years or one over that age who is
866-13 physically or mentally incapacitated from earning.
867-14 "(4) EMPLOYER. Every person who employs another to
868-15 perform a service for hire and pays wages directly to the
869-16 person. The term shall include a service company for a
870-17 self-insurer or any person, corporation, copartnership, or
871-18 association, or group thereof, and shall, if the employer is
872-19 insured, include his or her insurer, the insurer being
873-20 entitled to the employer's rights, immunities, and remedies
874-21 under this chapter, as far as applicable. The inclusion of an
875-22 employer's insurer within the term shall not provide the
876-23 insurer with immunity from liability to an injured employee,
877-24 or his or her dependent in the case of death to whom the
878-25 insurer would otherwise be subject to liability under Section
879-Page 34 SB150
880-1 25-5-11. Notwithstanding the provisions of this chapter, in no
881-2 event shall a common carrier by motor vehicle operating
882-3 pursuant to a certificate of public convenience and necessity
883-4 be deemed the "employer" of a leased-operator or
884-5 owner-operator of a motor vehicle or vehicles under contract
885-6 to the common carrier. Pursuant to Section 25-4-10(b)(26), a
886-7 marketplace platform shall not be considered to be an employer
887-8 for purposes of this chapter.
888-9 "(5) EMPLOYEE or WORKER. The terms are used
889-10 interchangeably, have the same meaning throughout this
890-11 chapter, and shall be construed to mean the same. The terms
891-12 include the plural and all ages and both sexes. The terms
892-13 include every person in the service of another under any
893-14 contract of hire, express or implied, oral or written,
894-15 including aliens and also including minors who are legally
895-16 permitted to work under the laws of this state, and also
896-17 including all employees of Tannehill Furnace and Foundry
897-18 Commission. Any reference in this chapter to a "worker" or
898-19 "employee" shall, if the worker or employee is dead, include
899-20 his or her dependent, as defined in this chapter, if the
900-21 context so requires. Pursuant to Section 25-4-10(b)(26), a
901-22 marketplace contractor shall not be considered to be an
902-23 employee for purposes of this chapter.
903-24 "(6) WAGES or WEEKLY WAGES. The terms shall in all
904-25 cases be construed to mean "average weekly earnings", based on
905-Page 35 SB150
906-1 those earnings subject to federal income taxation and
907-2 reportable on the Federal W-2 tax form which shall include
908-3 voluntary contributions made by the employee to a
909-4 tax-qualified retirement program, voluntary contributions to a
910-5 Section 125 cafeteria program, and fringe benefits as defined
911-6 herein. Average weekly earnings shall not include fringe
912-7 benefits if and only if the employer continues the benefits
913-8 during the period of time for which compensation is paid.
914-9 "Fringe benefits" shall mean only the employer's portion of
915-10 health, life, and disability insurance premiums.
916-11 "(7) ACCIDENT. The term, as used in the phrases
917-12 "personal injuries due to accident" or "injuries or death
918-13 caused by accident" shall be construed to mean an unexpected
919-14 or unforeseen event, happening suddenly and violently, with or
920-15 without human fault, and producing at the time injury to the
921-16 physical structure of the body or damage to an artificial
922-17 member of the body by accidental means.
923-18 "(8) INJURIES BY AN ACCIDENT ARISING OUT OF AND IN
924-19 THE COURSE OF THE EMPLOYMENT. Without otherwise affecting
925-20 either the meaning or interpretation of the clause, the clause
926-21 does not cover workers except while engaged in or about the
927-22 premises where their services are being performed or where
928-23 their service requires their presence as a part of service at
929-24 the time of the accident and during the hours of service as
930-25 workers.
931-Page 36 SB150
932-1 "(9) INJURY. "Injury and personal injury" shall mean
933-2 only injury by accident arising out of and in the course of
934-3 the employment, and shall not include a disease in any form,
935-4 except for an occupational disease or where it results
936-5 naturally and unavoidably from the accident. Injury shall
937-6 include physical injury caused either by carpal tunnel
938-7 syndrome disorder or by other cumulative trauma disorder if
939-8 either disorder arises out of and in the course of the
940-9 employment, and breakage or damage to eyeglasses, hearing
941-10 aids, dentures, or other prosthetic devices which function as
942-11 part of the body, when injury to them is incidental to an
943-12 on-the-job injury to the body. Injury does not include an
944-13 injury caused by the act of a third person or fellow employee
945-14 intended to injure the employee because of reasons personal to
946-15 him or her and not directed against him or her as an employee
947-16 or because of his or her employment. Injury does not include a
948-17 mental disorder or mental injury that has neither been
949-18 produced nor been proximately caused by some physical injury
950-19 to the body.
951-20 "(10) SINGULAR and PLURAL. Wherever the singular is
952-21 used, the plural shall be included.
953-22 "(11) GENDER. Where the masculine gender is used,
954-23 the feminine and neuter shall be included.
955-24 "(12) LOSS OF HAND OR FOOT. Amputation between the
956-25 elbow and wrist shall be considered as the equivalent to the
957-Page 37 SB150
958-1 loss of a hand, and the amputation between the knee and ankle
959-2 shall be considered as the equivalent of the loss of a foot.
960-3 "(13) PROVIDERS. A medical clinic, pharmacist,
961-4 dentist, chiropractor, psychologist, podiatrist, physical
962-5 therapist, pharmaceutical supply company, rehabilitation
963-6 service, or other person or entity providing treatment,
964-7 service, or equipment, or person or entity providing
965-8 facilities at which the employee receives treatment.
966-9 "(14) MEDICAL. All services, treatment, or equipment
967-10 provided by a provider.
968-11 "(15) PREVAILING. The most commonly occurring
969-12 reimbursements for health services, other than those provided
970-13 by federal and state programs for the elderly (Medicare) and
971-14 economically disadvantaged (Medicaid). "Prevailing" shall
972-15 include not only amounts per procedure code, but also commonly
973-16 used adjudication rules as applied to multiple procedures,
974-17 global procedures, use of assistant surgeons, and others as
975-18 appropriate. For hospitals, "prevailing" rate of reimbursement
976-19 or payment shall be established by the method contained in
977-20 Section 25-5-77.
978-21 "(16) PARTICIPATING AND NONPARTICIPATING HOSPITALS.
979-22 Those hospitals that have a negotiated rate of reimbursement
980-23 or payment with the Department of Labor. "Nonparticipating
981-24 hospitals" means those hospitals that have not negotiated a
982-25 rate of reimbursement or payment with the Department of Labor.
983-Page 38 SB150
984-1 "(17) HOSPITAL. A hospital, ambulatory surgical
985-2 center, outpatient rehabilitation center licensed by the State
986-3 of Alabama, and diagnostic facilities accredited by the
987-4 Commission on Accreditation of Rehabilitation Facilities.
988-5 "(18) THE COURT. The circuit court that would have
989-6 jurisdiction in an ordinary civil action involving a claim for
990-7 the injuries or death in question, and "the judge" means a
991-8 judge of that court.
992-9 "(19) UTILIZATION REVIEW. The determination of
993-10 medical necessity for medical and surgical in-hospital,
994-11 out-patient, and alternative settings treatments for acute and
995-12 rehabilitation care. It includes precertification for elective
996-13 treatments. Concurrent review and, if necessary, retrospective
997-14 review are required for emergency cases.
998-15 "(20) BILL SCREENING. The evaluation and
999-16 adjudication of provider bills for appropriateness of
1000-17 reimbursement relative to medical necessity and prevailing
1001-18 rates of reimbursement, duplicate charges, unbundling of
1002-19 charges, relativeness of services to injury or illness,
1003-20 necessity of assistant surgeons, adjudication of multiple
1004-21 procedures, number of modalities, global procedures, and any
1005-22 other prevailing adjudication issues that may apply.
1006-23 "(21) ADJUDICATION. The review of claims to apply
1007-24 prevailing rules that adjust reimbursements for the amount of
1008-25 work required when multiple procedures are performed at the
1009-Page 39 SB150
1010-1 same time, when assisting surgeons are present, to eliminate
1011-2 duplicate billing from the unbundling of global fees, and to
1012-3 adjust for the most commonly occurring method adopted for
1013-4 total reimbursement.
1014-5 "(22) OMBUDSMAN. An individual who assists injured
1015-6 or disabled employees, persons claiming death benefits,
1016-7 employers, and other persons in protecting their rights and
1017-8 obtaining information available under the workers'
1018-9 compensation law."
1019-10 Section 2. Section 3 of Act 2021-6, 2021 Regular
1020-11 Session, now appearing as Section 25-4-121, Code of Alabama
1021-12 1975, imposing certain requirements on the Department of Labor
1022-13 during a state of emergency, is repealed.
1023-14 Section 3. This act shall become effective on the
1024-15 first day of the third month following its passage and
1025-16 approval by the Governor, or its otherwise becoming law.
1026-Page 40 SB150
1027-1
752+25 platform if the requirements set forth in paragraph c. were
753+26 met at the time the services were performed.
754+Page 28 1 "(c) "Institution of higher education," for the
755+2 purposes of this chapter, means an educational institution to
756+3 which all of the following applies:
757+4 "(1) Admits as regular students only individuals
758+5 having a certificate of graduation from a high school, or the
759+6 recognized equivalent of such a certificate;.
760+7 "(2) Is legally authorized in this state to provide
761+8 a program of education beyond high school;.
762+9 "(3) Provides an educational program for which it
763+10 awards a bachelor's or higher degree, or provides a program
764+11 which is acceptable for full credit toward such a degree, or a
765+12 program of postgraduate or postdoctoral studies, or a program
766+13 of training to prepare students for gainful employment in a
767+14 recognized occupation.
768+15 "(d) For the purposes of this chapter, the term
769+16 "educational institution" means an educational institution,
770+17 (including an institution of higher education as defined in
771+18 subsection (c), of this section) in which all of the following
772+19 apply:
773+20 "(1) Participants, trainees, or students are offered
774+21 an organized course of study or training designed to transfer
775+22 to them knowledge, skills, information, doctrines, attitudes,
776+23 or abilities from, by, or under the guidance of an
777+24 instructor(s) or teacher(s) one or more instructors or
778+25 teachers.
779+26 "(2) It is approved, licensed, or issued a permit to
780+27 operate as a school by the State Department of Education or
781+Page 29 1 other government agency that is authorized within the state to
782+2 approve, license, or issue a permit for the operation of a
783+3 school.
784+4 "(3) The courses of study or training which it
785+5 offers may be academic, technical, trade, or preparation for
786+6 gainful employment in a recognized occupation, as opposed to
787+7 study or training in the social graces or skills or whose
788+8 primary purpose is to provide baby-sitting or day care
789+9 services although some learning activities may be included.
790+10 "In any particular case, the question of whether or
791+11 not an institution is an educational institution (other than
792+12 an institution of higher education) within the meaning of the
793+13 criteria described above will depend on what that particular
794+14 institution actually does.
795+15 "(e) "Hospital" means an institution which has been
796+16 licensed, certified, or approved by the State Board of Health
797+17 or the State Department of Mental Health as a hospital or a
798+18 similar institution operated by the state or any of its
799+19 political subdivisions or by an instrumentality of either of
800+20 the foregoing.
801+21 "(f) If the services performed during one half or
802+22 more of any pay period by an employee for the employing unit
803+23 employing him or her constitute employment, all of the
804+24 services of such employee for such period shall be deemed to
805+25 be employment, but if the services performed during more than
806+26 one half of any such pay period by an employee for the
807+27 employing unit employing him or her do not constitute
808+Page 30 1 employment, then none of the services of such employee for
809+2 such period shall be deemed to be employment. As used in this
810+3 subsection the term "pay period" means a period (of not more
811+4 than 31 consecutive days) for which a payment or remuneration
812+5 is ordinarily made to the employee by the employing unit
813+6 employing the employee.
814+7 "§25-5-1.
815+8 "Throughout this chapter, the following words and
816+9 phrases as used therein shall be considered to have the
817+10 following meanings, respectively, unless the context shall
818+11 clearly indicate a different meaning in the connection used:
819+12 "(1) COMPENSATION. The money benefits to be paid on
820+13 account of injury or death, as provided in Articles 3 and 4.
821+14 The recovery which an employee may receive by action at law
822+15 under Article 2 of this chapter is termed "recovery of civil
823+16 damages," as provided for in Sections 25-5-31 and 25-5-34.
824+17 "Compensation" does not include medical and surgical treatment
825+18 and attention, medicine, medical and surgical supplies, and
826+19 crutches and apparatus furnished an employee on account of an
827+20 injury.
828+21 "(2) CHILD or CHILDREN. The terms include posthumous
829+22 children and all other children entitled by law to inherit as
830+23 children of the deceased; stepchildren who were members of the
831+24 family of the deceased, at the time of the accident, and were
832+25 dependent upon him or her for support; a grandchild of the
833+26 deceased employee, whose father is dead or is an invalid, and
834+Page 31 1 who was supported by and a member of the family of the
835+2 deceased grandparent at the time of the accident.
836+3 "(3) DEPENDENT CHILD or ORPHAN. An unmarried child
837+4 under the age of 18 years or one over that age who is
838+5 physically or mentally incapacitated from earning.
839+6 "(4) EMPLOYER. Every person who employs another to
840+7 perform a service for hire and pays wages directly to the
841+8 person. The term shall include a service company for a
842+9 self-insurer or any person, corporation, copartnership, or
843+10 association, or group thereof, and shall, if the employer is
844+11 insured, include his or her insurer, the insurer being
845+12 entitled to the employer's rights, immunities, and remedies
846+13 under this chapter, as far as applicable. The inclusion of an
847+14 employer's insurer within the term shall not provide the
848+15 insurer with immunity from liability to an injured employee,
849+16 or his or her dependent in the case of death to whom the
850+17 insurer would otherwise be subject to liability under Section
851+18 25-5-11. Notwithstanding the provisions of this chapter, in no
852+19 event shall a common carrier by motor vehicle operating
853+20 pursuant to a certificate of public convenience and necessity
854+21 be deemed the "employer" of a leased-operator or
855+22 owner-operator of a motor vehicle or vehicles under contract
856+23 to the common carrier. Pursuant to Section 25-4-10(b)(26), a
857+24 marketplace platform shall not be considered to be an employer
858+25 for purposes of this chapter.
859+26 "(5) EMPLOYEE or WORKER. The terms are used
860+27 interchangeably, have the same meaning throughout this
861+Page 32 1 chapter, and shall be construed to mean the same. The terms
862+2 include the plural and all ages and both sexes. The terms
863+3 include every person in the service of another under any
864+4 contract of hire, express or implied, oral or written,
865+5 including aliens and also including minors who are legally
866+6 permitted to work under the laws of this state, and also
867+7 including all employees of Tannehill Furnace and Foundry
868+8 Commission. Any reference in this chapter to a "worker" or
869+9 "employee" shall, if the worker or employee is dead, include
870+10 his or her dependent, as defined in this chapter, if the
871+11 context so requires. Pursuant to Section 25-4-10(b)(26), a
872+12 marketplace contractor shall not be considered to be an
873+13 employee for purposes of this chapter.
874+14 "(6) WAGES or WEEKLY WAGES. The terms shall in all
875+15 cases be construed to mean "average weekly earnings", based on
876+16 those earnings subject to federal income taxation and
877+17 reportable on the Federal W-2 tax form which shall include
878+18 voluntary contributions made by the employee to a
879+19 tax-qualified retirement program, voluntary contributions to a
880+20 Section 125 cafeteria program, and fringe benefits as defined
881+21 herein. Average weekly earnings shall not include fringe
882+22 benefits if and only if the employer continues the benefits
883+23 during the period of time for which compensation is paid.
884+24 "Fringe benefits" shall mean only the employer's portion of
885+25 health, life, and disability insurance premiums.
886+26 "(7) ACCIDENT. The term, as used in the phrases
887+27 "personal injuries due to accident" or "injuries or death
888+Page 33 1 caused by accident" shall be construed to mean an unexpected
889+2 or unforeseen event, happening suddenly and violently, with or
890+3 without human fault, and producing at the time injury to the
891+4 physical structure of the body or damage to an artificial
892+5 member of the body by accidental means.
893+6 "(8) INJURIES BY AN ACCIDENT ARISING OUT OF AND IN
894+7 THE COURSE OF THE EMPLOYMENT. Without otherwise affecting
895+8 either the meaning or interpretation of the clause, the clause
896+9 does not cover workers except while engaged in or about the
897+10 premises where their services are being performed or where
898+11 their service requires their presence as a part of service at
899+12 the time of the accident and during the hours of service as
900+13 workers.
901+14 "(9) INJURY. "Injury and personal injury" shall mean
902+15 only injury by accident arising out of and in the course of
903+16 the employment, and shall not include a disease in any form,
904+17 except for an occupational disease or where it results
905+18 naturally and unavoidably from the accident. Injury shall
906+19 include physical injury caused either by carpal tunnel
907+20 syndrome disorder or by other cumulative trauma disorder if
908+21 either disorder arises out of and in the course of the
909+22 employment, and breakage or damage to eyeglasses, hearing
910+23 aids, dentures, or other prosthetic devices which function as
911+24 part of the body, when injury to them is incidental to an
912+25 on-the-job injury to the body. Injury does not include an
913+26 injury caused by the act of a third person or fellow employee
914+27 intended to injure the employee because of reasons personal to
915+Page 34 1 him or her and not directed against him or her as an employee
916+2 or because of his or her employment. Injury does not include a
917+3 mental disorder or mental injury that has neither been
918+4 produced nor been proximately caused by some physical injury
919+5 to the body.
920+6 "(10) SINGULAR and PLURAL. Wherever the singular is
921+7 used, the plural shall be included.
922+8 "(11) GENDER. Where the masculine gender is used,
923+9 the feminine and neuter shall be included.
924+10 "(12) LOSS OF HAND OR FOOT. Amputation between the
925+11 elbow and wrist shall be considered as the equivalent to the
926+12 loss of a hand, and the amputation between the knee and ankle
927+13 shall be considered as the equivalent of the loss of a foot.
928+14 "(13) PROVIDERS. A medical clinic, pharmacist,
929+15 dentist, chiropractor, psychologist, podiatrist, physical
930+16 therapist, pharmaceutical supply company, rehabilitation
931+17 service, or other person or entity providing treatment,
932+18 service, or equipment, or person or entity providing
933+19 facilities at which the employee receives treatment.
934+20 "(14) MEDICAL. All services, treatment, or equipment
935+21 provided by a provider.
936+22 "(15) PREVAILING. The most commonly occurring
937+23 reimbursements for health services, other than those provided
938+24 by federal and state programs for the elderly (Medicare) and
939+25 economically disadvantaged (Medicaid). "Prevailing" shall
940+26 include not only amounts per procedure code, but also commonly
941+27 used adjudication rules as applied to multiple procedures,
942+Page 35 1 global procedures, use of assistant surgeons, and others as
943+2 appropriate. For hospitals, "prevailing" rate of reimbursement
944+3 or payment shall be established by the method contained in
945+4 Section 25-5-77.
946+5 "(16) PARTICIPATING AND NONPARTICIPATING HOSPITALS.
947+6 Those hospitals that have a negotiated rate of reimbursement
948+7 or payment with the Department of Labor. "Nonparticipating
949+8 hospitals" means those hospitals that have not negotiated a
950+9 rate of reimbursement or payment with the Department of Labor.
951+10 "(17) HOSPITAL. A hospital, ambulatory surgical
952+11 center, outpatient rehabilitation center licensed by the State
953+12 of Alabama, and diagnostic facilities accredited by the
954+13 Commission on Accreditation of Rehabilitation Facilities.
955+14 "(18) THE COURT. The circuit court that would have
956+15 jurisdiction in an ordinary civil action involving a claim for
957+16 the injuries or death in question, and "the judge" means a
958+17 judge of that court.
959+18 "(19) UTILIZATION REVIEW. The determination of
960+19 medical necessity for medical and surgical in-hospital,
961+20 out-patient, and alternative settings treatments for acute and
962+21 rehabilitation care. It includes precertification for elective
963+22 treatments. Concurrent review and, if necessary, retrospective
964+23 review are required for emergency cases.
965+24 "(20) BILL SCREENING. The evaluation and
966+25 adjudication of provider bills for appropriateness of
967+26 reimbursement relative to medical necessity and prevailing
968+27 rates of reimbursement, duplicate charges, unbundling of
969+Page 36 1 charges, relativeness of services to injury or illness,
970+2 necessity of assistant surgeons, adjudication of multiple
971+3 procedures, number of modalities, global procedures, and any
972+4 other prevailing adjudication issues that may apply.
973+5 "(21) ADJUDICATION. The review of claims to apply
974+6 prevailing rules that adjust reimbursements for the amount of
975+7 work required when multiple procedures are performed at the
976+8 same time, when assisting surgeons are present, to eliminate
977+9 duplicate billing from the unbundling of global fees, and to
978+10 adjust for the most commonly occurring method adopted for
979+11 total reimbursement.
980+12 "(22) OMBUDSMAN. An individual who assists injured
981+13 or disabled employees, persons claiming death benefits,
982+14 employers, and other persons in protecting their rights and
983+15 obtaining information available under the workers'
984+16 compensation law."
985+17 Section 2. Section 3 of Act 2021-6, 2021 Regular
986+18 Session, now appearing as Section 25-4-121, Code of Alabama
987+19 1975, imposing certain requirements on the Department of Labor
988+20 during a state of emergency, is repealed.
989+21 Section 3. This act shall become effective on the
990+22 first day of the third month following its passage and
991+23 approval by the Governor, or its otherwise becoming law.
992+Page 37 1
1028993 2
1029-3
1030-4
1031-President and Presiding Officer of the Senate
1032-
1033-5
1034-6 Speaker of the House of Representatives
1035-SB1507
1036-8 Senate 15-FEB-22
1037-9 I hereby certify that the within Act originated in and passed
1038-10 the Senate, as amended.
1039-11
1040-12 Patrick Harris,
1041-13 Secretary.
994+3 Senate
995+Read for the first time and referred to the Senate4
996+5 committee on Fiscal Responsibility and Economic
997+Development.......................................6 0.1-FEB-22
998+ 7
999+Read for the second time and placed on the calen-8
1000+dar...............................................9 0.9-FEB-22
1001+ 10
1002+Read for the third time and passed as amended ....11 1.5-FEB-22
1003+Yeas 2712
1004+13 Nays 0
10421005 14
10431006 15
1044-16
1045-17 House of Representatives
1046-18 Passed: 15-MAR-22
1047-19
1048-20
1049-21 By: Senator Orr
1050-Page 41
1007+16 Patrick Harris,
1008+17 Secretary.
1009+18
1010+Page 38