2004 Legislation
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SENATE BILL NO. 1390 – Employmnt security law/broker exmpt


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Bill Status

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

Bill Text

  ]]]]              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
  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
  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 / Fiscal Impact

                       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

Name: Senator John Goedde 
Phone: 332-1000

STATEMENT OF PURPOSE/FISCAL NOTE                      S 1390