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S1390................................................by JUDICIARY AND RULES
EMPLOYMENT SECURITY LAW - Amends existing law relating to Employment
Security Law to provide that "exempt employment" includes service performed
for a mortgage broker or lender as a loan originator if all service is
performed for remuneration solely by way of commission.
02/24 Senate intro - 1st rdg - to printing
02/25 Rpt prt - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE SENATE
SENATE BILL NO. 1390
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING SECTION 72-1316A, IDAHO
3 CODE, TO PROVIDE THAT "EXEMPT EMPLOYMENT" INCLUDES SERVICE PERFORMED FOR A
4 MORTGAGE BROKER OR LENDER AS A LOAN ORIGINATOR IF ALL SERVICE IS PERFORMED
5 FOR REMUNERATION SOLELY BY WAY OF COMMISSION AND TO MAKE TECHNICAL CORREC-
6 TIONS.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 72-1316A, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 72-1316A. EXEMPT EMPLOYMENT. "Exempt employment" means service performed:
11 (1) By an individual in the employ of his spouse or child.
12 (2) By a person under the age of twenty-one (21) years in the employ of
13 his father or mother.
14 (3) By an individual under the age of twenty-two (22) years who is
15 enrolled as a student in a full-time program at an accredited nonprofit or
16 public education institution for which credit at such institution is earned in
17 a program which combines academic instruction with work experience. This sub-
18 paragraph subsection shall not apply to service performed in a program estab-
19 lished at the request of an employer or group of employers.
20 (4) In the employ of the United States government or an instrumentality
21 of the United States exempt under the constitution of the United States from
22 the contributions imposed by this chapter.
23 (5) In the employ of a governmental entity in the exercise of duties:
24 (a) As an elected official;
25 (b) As a member of a legislative body, or a member of the judiciary, of a
26 state or political subdivision thereof;
27 (c) As a member of the state national guard or air national guard;
28 (d) As an employee serving on a temporary basis in case of fire, storm,
29 snow, earthquake, flood, or similar emergency; or
30 (e) In a position which, pursuant to the laws of this state, is desig-
31 nated as (i) a major nontenured policy making policymaking or advisory
32 position, or (ii) a policy making policymaking or advisory position which
33 ordinarily does not require more than eight (8) hours per week.
34 (6) By an inmate of a correctional, custodial or penal institution, if
35 such services are performed for or within such institution.
36 (7) In the employ of:
37 (a) A church or convention or association of churches; or
38 (b) An organization which is operated primarily for religious purposes
39 and which is operated, supervised, controlled, or principally supported by
40 a church, or convention or association of churches; or
41 (c) In the employ of an institution of higher education, if it is devoted
42 primarily to preparation of a student for the ministry or training candi-
43 dates to become members of a religious order; or
2
1 (d) By a duly ordained, commissioned, or licensed minister of a church in
2 the exercise of his ministry or by a member of a religious order in the
3 exercise of duties required by such order.
4 (8) By a program participant in a facility that provides rehabilitation
5 for individuals whose earning capacity is impaired by age, physical or mental
6 deficiency, or injury or provides remunerative work for individuals who,
7 because of their impaired physical or mental capacity, cannot be readily
8 absorbed into the labor market.
9 (9) As part of an unemployment work relief program or as part of an unem-
10 ployment work training program assisted or financed in whole or in part by any
11 federal agency or an agency of a state or political subdivision thereof, by an
12 individual receiving such work relief or work training.
13 (10) Service with respect to which unemployment insurance is payable under
14 an unemployment insurance system established by an act of congress other than
15 the social security act.
16 (11) As a student nurse in the employ of a hospital or nurses' training
17 school by an individual who is enrolled and is regularly attending courses in
18 a nurses' training school approved pursuant to state law, and service per-
19 formed as an intern in the employ of a hospital by an individual who has com-
20 pleted a course in a medical school approved pursuant to state law.
21 (12) By an individual under the age of eighteen (18) years of age in the
22 delivery or distribution of newspapers or shopping news not including delivery
23 or distribution to any point for subsequent delivery or distribution.
24 (13) By an individual for a person as an insurance agent or as an insur-
25 ance solicitor, if all such service performed by such individual for such per-
26 son is performed for remuneration solely by way of commission.
27 (14) By an individual for a mortgage broker/lender as a loan originator,
28 if all such service performed by such individual for such mortgage broker is
29 performed for remuneration solely by way of commission.
30 (15) By an individual for a real estate broker as an associate real estate
31 broker or as a real estate salesman, if all such service performed by such
32 individual for such person is performed for remuneration solely by way of com-
33 mission.
34 (156) Service covered by an election approved by the agency charged with
35 the administration of any other state or federal unemployment insurance law,
36 in accordance with an arrangement pursuant to section 72-1344, Idaho Code.
37 (167) In the employ of a school or college by a student who is enrolled
38 and regularly attending classes at such school or college.
39 (178) In the employ of a hospital by a resident patient of such hospital.
40 (189) By a member of an AmeriCorps program.
STATEMENT OF PURPOSE
RS 14133
The purpose of this legislation is define the independent
contractor relationship of loan originators and mortgage brokers,
making that relationship similar to Idaho Code describing the
relationship of real estate broker and sales associates and
insurance broker and sales associates.
FISCAL NOTE
This bill is revenue neutral, simply clarifying the relationship
of loan originators to brokers when acting as an independent
contractor.
Contact
Name: Senator John Goedde
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE S 1390