Bill Text: HI SB40 | 2010 | Regular Session | Introduced
Bill Title: Workers' Compensation; Employment Exclusion
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB40 Detail]
Download: Hawaii-2010-SB40-Introduced.html
Report Title:
Workers' Compensation; Employment Exclusion
Description:
Excludes services for a limited liability company from the definition of "employment" if the person performing services has a 50% or greater transferable interest in the limited liability company and has personal health insurance coverage.
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THE SENATE |
S.B. NO. |
40 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO WORKERS' COMPENSATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that requiring owners of limited liability companies to carry workers' compensation insurance imposes duplicative burdens upon owners who already carry personal health insurance coverage. The purpose of this Act is to exempt owners of limited liability companies who have their own health insurance coverage and have a distributional interest of at least fifty per cent in the company from mandatory workers' compensation coverage.
SECTION 2. Section 386-1, Hawaii Revised Statutes, is amended by amending the definition of "employment" to read as follows:
""Employment" means any service performed by an individual for another person under any contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully entered into. It includes service of public officials, whether elected or under any appointment or contract of hire, express or implied.
"Employment" does not include:
(1) Service for a religious, charitable, educational, or nonprofit organization if performed in a voluntary or unpaid capacity;
(2) Service for a religious, charitable, educational, or nonprofit organization if performed by a recipient of aid therefrom and the service is incidental to or in return for the aid received;
(3) Service for a school, college, university, college club, fraternity, or sorority if performed by a student who is enrolled and regularly attending classes and in return for board, lodging, or tuition furnished, in whole or in part;
(4) Service performed by a duly ordained, commissioned, or licensed minister, priest, or rabbi of a church in the exercise of the minister's, priest's, or rabbi's ministry or by a member of a religious order in the exercise of nonsecular duties required by the order;
(5) Service performed by an individual for another person solely for personal, family, or household purposes if the cash remuneration received is less than $225 during the current calendar quarter and during each completed calendar quarter of the preceding twelve-month period;
(6) Domestic, in-home and community-based services for persons with developmental disabilities and mental retardation under the medicaid home and community-based services program pursuant to title 42 Code of Federal Regulations sections 440.180 and 441.300, and title 42 Code of Federal Regulations, part 434, subpart A, as amended, and identified as chore, personal assistance and habilitation, residential habilitation, supported employment, respite, and skilled nursing services, as the terms are defined by the department of human services, performed by an individual whose services are contracted by a recipient of social service payments and who voluntarily agrees in writing to be an independent contractor of the recipient of social service payments;
(7) Service performed without wages for a corporation without employees by a corporate officer in which the officer is at least a twenty-five per cent stockholder;
(8) Service performed by an individual for a
corporation if the individual owns at least fifty per cent of the corporation;
provided that no employer shall require an employee to incorporate as a
condition of employment; [and]
(9) Service performed by an individual for another
person as a real estate salesperson or as a real estate broker, if all the
service performed by the individual for the other person is performed for
remuneration solely by way of commission[.]; and
(10) Service performed by a member of a limited liability company, if the member is an individual, carries a health insurance policy, and has a distributional interest, within the meaning of section 428-501, in the limited liability company of at least fifty per cent; provided that no employer shall require an employee to form a limited liability company as a condition of employment.
As used in this paragraph, "religious, charitable, educational, or nonprofit organization" means a corporation, unincorporated association, community chest, fund, or foundation organized and operated exclusively for religious, charitable, or educational purposes, no part of the net earnings of which inure to the benefit of any private shareholder or individual."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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