SB 321-1_ Filed 02/23/2006, 10:19
Adopted 2/23/2006


Text Box

Adopted Rejected


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COMMITTEE REPORT

        
                                                        YES:

6

                                                        NO:
4

MR. SPEAKER:

    Your Committee on       Employment and Labor     , to which was referred       Senate Bill 321     , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:

SOURCE: Page 1, line 1; (06)CR032101.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 5-28-27-3; (06)CR032101.1. -->     "SECTION 1. IC 5-28-27-3, AS ADDED BY P.L.202-2005, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2007]: Sec. 3. (a) The skills 2016 training fund is established to do the following:
        (1) Administer the costs of the skills 2016 training program established under IC 22-4-10.5.
        (2) Undertake any program or activity that furthers the purposes of IC 22-4-10.5.
        (3) Refund skills 2016 training assessments erroneously collected and deposited in the fund.
    (b) The money in the fund shall be allocated as follows:
        (1) An amount to be determined annually shall be set aside for the payment of refunds from the fund.
        (2) The remainder of the money in the fund shall be allocated to

employers or consortiums for incumbent worker training grants that enable workers to obtain recognizable credentials or certifications and transferable employment skills that improve employer competitiveness.
    (c) Special consideration shall be given to the state educational institution established under IC 20-12-61 to be the provider of the training funded under this chapter whenever the state educational institution:
        (1) meets the identified training needs of an employer or a consortium with an existing credentialing or certification program; and
        (2) is the most cost effective provider.
    (d) For the incumbent worker training grants described in subsection (b), the department of workforce development shall do the following:
        (1) Provide grant applications to interested employers and consortiums.
        (2) Accept completed applications for the grants.
        (3) Obtain all information necessary or appropriate to determine whether an applicant qualifies for a grant, including information concerning:
            (A) the applicant;
            (B) the training to be offered;
            (C) the training provider; and
            (D) the workers to be trained.
        (4) Prepare summaries or other reports to assist the secretary of commerce in reviewing the grant applications.
    (e) The department of workforce development shall forward the grant applications and other information collected or received by the department under subsection (d) to the secretary of commerce who shall allocate the money in the fund in accordance with subsections (b) and (c), after considering the information provided by the department of workforce development.
    (f) The corporation shall enter into an agreement with the department of workforce development for the department of workforce development to administer the fund using money appropriated from the fund.
    (g) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner

as other public money may be invested.
    (h) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    (i) The fund consists of the following:
        (1) Assessments deposited in the fund.
        (2) Earnings acquired through the use of money belonging to the fund.
        (3) Money deposited in the fund from any other source.
        (4) Interest and penalties collected.
    (j) Any balance in the fund does not lapse but is available continuously to the corporation for expenditures for the program established under IC 22-4-10.5 consistent with this chapter, after considering any information concerning an expenditure provided by the department of workforce development.
     (k) An employer who makes the election described in IC 22-4-10.5-3.2 is not eligible to receive an allocation from the fund.".

SOURCE: Page 3, line 26; (06)CR032101.3. -->     Page 3, line 26, strike "his".
    Page 3, line 26, after "his" insert " the employing unit's".
    Page 5, between lines 11 and 12, begin a new paragraph and insert:
SOURCE: IC 22-4-8-3; (06)CR032101.8. -->     "SECTION 8. IC 22-4-8-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. "Employment" shall not include the following:
        (a) (1) Except as provided in section 2(i) of this chapter, service performed prior to January 1, 1978, in the employ of this state, any other state, any town or city, or political subdivision, or any instrumentality of any of them, other than service performed in the employ of a municipally owned public utility as defined in this article; or service performed in the employ of the United States of America, or an instrumentality of the United States immune under the Constitution of the United States from the contributions imposed by this article, except that to the extent that the Congress of the United States shall permit states to require any instrumentalities of the United States to make payments into an unemployment fund under a state unemployment compensation statute, all of the provisions of this article shall be applicable to such instrumentalities, in the same manner, to the same extent, and on the same terms as to all other employers, employing units,

individuals, and services. However, if this state shall not be certified for any year by the Secretary of Labor under Section 3304 of the Internal Revenue Code the payments required of such instrumentalities with respect to such year shall be refunded by the commissioner from the fund in the same manner and within the same period as is provided in IC 22-4-32-19 with respect to contribution erroneously paid or wrongfully assessed.
        (b) (2) Service with respect to which unemployment compensation is payable under an unemployment compensation system established by an Act of Congress; however, the board department is authorized to enter into agreements with the proper agencies under such Act of Congress which agreements shall become effective ten (10) days after publication thereof, in the manner provided in IC 22-4-19-2 for rules of the board, in accordance with rules adopted by the department under IC 4-22-2, to provide reciprocal treatment to individuals who have, after acquiring potential rights to benefits under this article, acquired rights to unemployment compensation under such Act of Congress, or who have, after having acquired potential rights to unemployment compensation under such Act of Congress, acquired rights to benefits under this article.
        (c) (3) "Agricultural labor" as provided in section 2(l)(1) of this chapter shall include only services performed:
            (i) (A) on a farm, in the employ of any person, in connection with cultivating the soil or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and furbearing animals and wildlife;
            (ii) (B) in the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment, or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of such service is performed on a farm;
            (iii) (C) in connection with the production or harvesting of any commodity defined as an agricultural commodity in Section 15(g) of the Agricultural Marketing Act (12 U.S.C. 1141j(g))

as amended, or in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for profit, used exclusively for supplying and storing water for farming purposes;
            (iv)(A) (D) in the employ of:
                 (i) the operator of a farm in handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity; but only if such operator produced more than one-half (1/2) of the commodity with respect to which such service is performed; or
                (B) in the employ of (ii) a group of operators of farms (or a cooperative organization of which such operators are members) in the performance of service described in subdivision (A), item (i), but only if such operators produce more than one-half (1/2) of the commodity with respect to which such service is performed;
            (C) except the provisions of subdivisions (A) and (B) items (i) and (ii) shall not be deemed to be applicable with respect to service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption; or
            (v) (E) on a farm operated for profit if such service is not in the course of the employer's trade or business or is domestic service in a private home of the employer.
         (4) As used in this subsection, subdivision (3), "farm" includes stock, dairy, poultry, fruit, furbearing animals, and truck farms, nurseries, orchards, greenhouses, or other similar structures used primarily for the raising of agricultural or horticultural commodities.
        (d) (5) Domestic service in a private home, local college club, or local chapter of a college fraternity or sorority, except as provided in section 2(m) of this chapter.
        (e) (6) Service performed on or in connection with a vessel or aircraft not an American vessel or American aircraft, if the

employee is employed on and in connection with such vessel or aircraft when outside the United States.
        (f) (7) Service performed by an individual in the employ of child or spouse, and service performed by a child under the age of twenty-one (21) in the employ of a parent.
        (g) (8) Service not in the course of the employing unit's trade or business performed in any calendar quarter by an individual, unless the cash remuneration paid for such service is fifty dollars ($50) or more and such service is performed by an individual who is regularly employed by such employing unit to perform such service. For the purposes of this subsection, subdivision, an individual shall be deemed to be regularly employed to perform service not in the course of an employing unit's trade or business during a calendar quarter only if:
            (i) (A) on each of some of twenty-four (24) days during such quarter such individual performs such service for some portion of the day; or
            (ii) (B) such individual was regularly employed (as determined under clause (i) (A)) by such employing unit in the performance of such service during the preceding calendar quarter.
        (h) (9) Service performed by an individual in any calendar quarter in the employ of any organization exempt from income tax under Section 501 of the Internal Revenue Code (except those services included in sections 2(i) and 2(j) of this chapter if the remuneration for such service is less than fifty dollars ($50)).
        (i) (10) Service performed in the employ of a hospital, if such service is performed by a patient of such hospital.
        (j) (11) Service performed in the employ of a school, college, or university if such service is performed:
            (i) (A) by a student who is enrolled and is regularly attending classes at such school, college, or university; or
            (ii) (B) by the spouse of such a student, if such spouse is advised, at the time such spouse commences to perform such service, that:
                (A) (i) the employment of such spouse to perform such service is provided under a program to provide financial assistance to such student by such school, college, or

university; and
                (B) (ii) such employment will not be covered by any program of unemployment insurance.
        (k) (12) Service performed by an individual who is enrolled at a nonprofit or public educational institution which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at such institution, which combines academic instruction with work experience, if such service is an integral part of such program, and such institution has so certified to the employer, except that this subsection shall not apply to service performed in a program established for or on behalf of an employer or group of employers.
        (l) (13) Service performed in the employ of a government foreign to the United States of America, including service as a consular or other officer or employee or a nondiplomatic representative.
        (m) (14) Service performed in the employ of an instrumentality wholly owned by a government foreign to that of the United States of America, if the service is of a character similar to that performed in foreign countries by employees of the United States of America or of an instrumentality thereof, and if the board finds that the Secretary of State of the United States has certified to the Secretary of the Treasury of the United States that the government, foreign to the United States, with respect to whose instrumentality exemption is claimed, grants an equivalent exemption with respect to similar service performed in such country by employees of the United States and of instrumentalities thereof.
        (n) (15) Service performed as a student nurse in the employ of a hospital or nurses' training school by an individual who is enrolled and is regularly attending classes in a nurses' training school chartered or approved pursuant to state law; and service performed as an intern in the employ of a hospital by an individual who has completed a four (4) year course in a medical school chartered or approved pursuant to state law.
        (o) (16) Service performed by an individual as an insurance producer or as an insurance solicitor, if all such service performed

by such individual is performed for remuneration solely by way of commission.
        (p)(A) (17) Service performed by an individual:
             (A) under the age of eighteen (18) in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution; or
            (B) Services performed by an individual in, and at the time of, the sale of newspapers or magazines to ultimate consumers, under an arrangement under which the newspapers or magazines are to be sold by him the individual at a fixed price, his the individual's compensation being based on the retention of the excess of such price over the amount at which the newspapers or magazines are charged to him, the individual, whether or not he the individual is guaranteed a minimum amount of compensation for such service, or is entitled to be credited with the unsold newspapers or magazines turned back.
        (q) (18) Service performed in the employ of an international organization.
        (r) (19) Except as provided in IC 22-4-7-1, services covered by an election duly approved by the agency charged with the administration of any other state or federal unemployment compensation law in accordance with an arrangement pursuant to IC 22-4-22-1 through IC 22-4-22-5, during the effective period of such election.
        (s) (20) If the service performed during one-half (1/2) or more of any pay period by an individual for an employing unit constitutes employment, all the services of such individual for such period shall be deemed to be employment; but if the services performed during more than one-half (1/2) of any pay period by such an individual do not constitute employment, then none of the services of such individual for such period shall be deemed to be employment. As used in this subsection, "pay period" means a period of not more than thirty-one (31) consecutive days for which a payment of remuneration is ordinarily made to the individual by the employing unit. This subsection shall not be applicable with respect to services performed in a pay period by

any such individual where any such service is excepted by subsection (b). subdivision (2).
        (t) (21) Service performed by an inmate of a custodial or penal institution.
        (u) (22) Service performed as a precinct election officer (as defined in IC 3-5-2-40.1).".

SOURCE: Page 8, line 17; (06)CR032101.8. -->     Page 8, line 17, delete "the following percentage of" and insert "the following percentage of".
    Page 10, between lines 6 and 7, begin a new paragraph and insert:
SOURCE: IC 22-4-10.5-3; (06)CR032101.15. -->     "SECTION 15. IC 22-4-10.5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2007]: Sec. 3. The skills 2016 training assessment is nine hundredths percent (0.09%) to be assessed upon the previous year's taxable wages (as defined in IC 22-4-4-2) paid by all employers except those who have:
         (1) made the election described in section 3.2 of this chapter; or
        (2)
elected to make payments in lieu of contributions (as defined in IC 22-4-2-32).
SOURCE: IC 22-4-10.5-3.2; (06)CR032101.16. -->     SECTION 16. IC 22-4-10.5-3.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2007]: Sec. 3.2. (a) This section applies to skills 2016 training assessments payable after July 1, 2007.
    (b) As used in this section, "employee" means any person employed by another for wages or salary. The term does not include a seasonal worker (as defined in IC 22-4-8-4(b)).
    (c) An employer subject to this chapter that employs less than twenty (20) full-time employees may file an election each year not to:
        (1) participate in the skills 2016 training program; and
        (2) pay the skills 2016 training assessments;
with the department on a form prescribed by the commissioner.
    (d) An employer must make the election described in subsection (c) for a calendar year not later than January 31 of the following year.
    (e) For purposes of determining whether an employer qualifies
to make the election under subsection (c), the number of employees employed by the employer is the average of the number of employees reported by the employer for each quarter of the

calendar year for which the employer wants to elect not to:
        (1) participate in the skills 2016 training program; and
        (2) pay the skills 2016 training assessments.

SOURCE: IC 22-4-10.5-4; (06)CR032101.17. -->     SECTION 17. IC 22-4-10.5-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2007]: Sec. 4. (a) This section does not apply to an employer who has made the election described in section 3.2 of this chapter.
    (a) (b) Skills 2016 training assessments accrue and are payable by each employer under section 3 of this chapter for each calendar year in which the employer is subject to IC 22-4-10-1 with respect to wages for employment.
    (b) (c) Skills 2016 training assessments are due and payable to the department by each employer for the purposes set forth in section 2 of this chapter and are not deductible, in whole or in part, from the wages of individuals in the service of the employer.
    (c) (d) Skills 2016 training assessments paid under this chapter:
        (1) shall not be credited to the employer's experience account; and
        (2) do not affect the computation of an employer's contribution rate under IC 22-4-11-2.".
SOURCE: Page 13, line 25; (06)CR032101.13. -->     Page 13, line 25, delete "chapter" and insert "chapter.".
    Page 15, line 7, delete "special".
    Page 19, line 20, delete "decision to seek repayment of benefits or".
    Page 19, line 21, delete "a civil penalty" and insert " determination".
    Page 19, line 22, delete "IC 22-4-32-4" and insert " IC 22-4-17-2(e)".
    Page 19, line 23, delete "IC 22-4-32-1" and insert " IC 22-4-17-3".
    Page 19, line 23, delete "IC 22-4-32-15." and insert " IC 22-4-17-15.".
    Page 20, between lines 7 and 8, begin a new paragraph and insert:
    " (d) An individual who is receiving benefits as determined under IC 22-4-15-1(c)(8) is entitled to complete the reporting, counseling, or training that must be conducted in person at a one stop center selected by the individual. The department shall advise an eligible individual that this option is available.".
    Page 20, line 13, delete "abuse." and insert " or family violence (as defined in IC 31-9-2-42).".
    Page 29, line 15, strike "he".
    Page 29, line 15, after "he" insert " the member".
    Page 32, between lines 13 and 14, begin a new paragraph and insert:
    " (i) An employer or agent of an employer that becomes aware that a claim has been made under IC 22-4-15-1(c)(8) shall maintain that information as confidential.".
    Page 33, between lines 39 and 40, begin a new paragraph and insert:
SOURCE: IC 22-4-22-3; (06)CR032101.46. -->     "SECTION 46. IC 22-4-22-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. The commissioner is authorized to enter into reciprocal agreements with the proper agencies under the laws of other states or jurisdictions or of the United States, which agreements shall become effective after filing with the secretary of state pursuant to IC 22-4-19-2, in accordance with rules adopted by the department under IC 4-22-2, by the terms of which agreements:
        (1) potential rights to benefits accumulated under the unemployment compensation laws of one (1) or more states or jurisdictions or of the United States, or both, may constitute the basis for the payment of benefits through a single appropriate agency under terms which the commissioner finds will be fair and reasonable to all affected interests and which will not result in any substantial loss to the fund; and
        (2) wages or services in employment subject to an unemployment compensation law of another state or of the United States shall be deemed to be wages in employment for employers for the purpose of determining an individual's rights to unemployment compensation benefits under this article, and wages in employment for employers as defined in this article shall be deemed to be wages or services on the basis of which unemployment compensation under the law of another state or of the United States is payable, but no such arrangement shall be entered into unless it contains provisions for reimbursements to the unemployment insurance benefit fund for such of the unemployment compensation benefits paid under this part upon the basis of such wages or services, and provisions for reimbursements from the unemployment insurance benefit fund for such of the compensation paid under such other law upon the basis of wages for employment as defined in this article as the commissioner finds will be fair and reasonable to all affected interests.".
SOURCE: Page 39, line 23; (06)CR032101.39. -->     Page 39, line 23, after "for adjustment" delete "of" and insert " or".
    Page 43, delete lines 8 through 9, begin a new paragraph and insert:
SOURCE: IC 22-4-16-1; IC 22-4-19-2; IC 22-4-19-3.".
; (06)CR032101.69. -->     "SECTION 69. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2006]: IC 22-4-16-1; IC 22-4-19-2; IC 22-4-19-3.".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 321 as reprinted January 25, 2006.)

and when so amended that said bill do pass.

__________________________________

Representative Torr


CR032101/DI 96    2006