Athletic Contest Officials

Exempts from the definition of "employment" under Hawaii
Employment security law, service performed by athletic contest

THE SENATE                              S.B. NO.22
TWENTIETH LEGISLATURE, 1997                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 383-7, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "383-7 Excluded service."Employment" does not include
 4 the following service:
 5      (1)  Agricultural labor as defined in section 383-9 if it is
 6           performed by an individual who is employed by an
 7           employing unit:
 8           (A)  Which, during each calendar quarter in both the
 9                current and the preceding calendar years, paid
10                less than $20,000 in cash remuneration to
11                individuals employed in agricultural labor; and
12           (B)  Which had, in each of the current and the
13                preceding calendar years:
14                (i)  No more than nineteen calendar weeks, whether
15                     consecutive or not, in which agricultural
16                     labor was performed by its employees; or
17               (ii)  No more than nine individuals in its employ
18                     performing agricultural labor in any one
19                     calendar week, whether or not the same 

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 1 individuals performed the labor in each week;
 2      (2)  Domestic service in a private home, local college club,
 3           or local chapter of a college fraternity or sorority as
 4           set forth in section 3306(c)(2) of the Internal Revenue
 5           Code of 1986, as amended;
 6      (3)  Service not in the course of the employing unit's trade
 7           or business performed in any calendar quarter by an
 8           individual, unless the cash remuneration paid for the
 9           service is $50 or more and the service is performed by
10           an individual who is regularly employed by the
11           employing unit to perform the service.  For the
12           purposes of this paragraph, an individual shall be
13           deemed to be regularly employed to perform service not
14           in the course of an employing unit's trade or business
15           during a calendar quarter only if:
16           (A)  On each of some twenty-four days during the
17                quarter the individual performs the service for
18                some portion of the day; or
19           (B)  The individual was regularly employed as
20                determined under subparagraph (A) by the employing
21                unit in the performance of the service during the
22                preceding calendar quarter;
23      (4)  (A)  Service performed on or in connection with a

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 1                vessel not an American vessel, if the individual
 2                performing the service is employed on and in
 3                connection with the vessel when outside the United
 4                States;
 5           (B)  Service performed by an individual in (or as an
 6                officer or member of the crew of a vessel while it
 7                is engaged in) the catching, taking, harvesting,
 8                cultivating, or farming of any kind of fish,
 9                shellfish, crustacea, sponges, seaweeds, or other
10                aquatic forms of animal and vegetable life,
11                including service performed as an ordinary
12                incident thereto, except:
13                (i)  The service performed in connection with a
14                     vessel of more than ten net tons (determined
15                     in the manner provided for determining the
16                     register tonnage of merchant vessels under
17                     the laws of the United States);
18               (ii)  The service performed in connection with a
19                     vessel of ten net tons or less (determined in
20                     the manner provided for determining the
21                     register tonnage of merchant vessels under
22                     the laws of the United States) by an
23                     individual who is employed by an employing

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                                     S.B. NO.           

 1                     unit which had in its employ one or more
 2                     individuals performing the service for some
 3                     portion of a day in each of twenty calendar
 4                     weeks all occurring, whether consecutive or
 5                     not, in either the current or the preceding
 6                     calendar year; and
 7              (iii)  Service performed in connection with the
 8                     catching or taking of salmon or halibut for
 9                     commercial purposes;
10      (5)  Service performed by an individual in the employ of the
11           individual's son, daughter, or spouse, and service
12           performed by a child under the age of twenty-one in the
13           employ of the child's father or mother;
14      (6)  Service performed in the employ of the United States
15           government or an instrumentality of the United States
16           exempt under the Constitution of the United States from
17           the contributions imposed by this chapter, except that
18           to the extent that the Congress of the United States
19           permits states to require any instrumentalities of the
20           United States to make payments into an unemployment
21           fund under a state unemployment compensation law, all
22           of the provisions of this chapter shall apply to those
23           instrumentalities, and to services performed for those

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 1           instrumentalities, in the same manner, to the same
 2           extent, and on the same terms as to all other
 3           employers, employing units, individuals, and services;
 4           provided that if this State is not certified for any
 5           year by the Secretary of Labor under section 3304(c) of
 6           the federal Internal Revenue Code, the payments
 7           required of those instrumentalities with respect to
 8           that year shall be refunded by the department of labor
 9           and industrial relations from the fund in the same
10           manner and within the same period as is provided in
11           section 383-76 with respect to contributions
12           erroneously collected;
13      (7)  Service performed in the employ of any other state, or
14           any political subdivision thereof, or any
15           instrumentality of any one or more of the foregoing
16           which is wholly owned by one or more states or
17           political subdivisions; and any service performed in
18           the employ of any instrumentality of one or more other
19           states or their political subdivisions to the extent
20           that the instrumentality is, with respect to the
21           service, exempt from the tax imposed by section 3301 of
22           the Internal Revenue Code of 1986, as amended;
23      (8)  Service with respect to which unemployment compensation

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                                     S.B. NO.           

 1           is payable under an unemployment system established by
 2           an act of Congress; 
 3      (9)  (A)  Service performed in any calendar quarter in the
 4                employ of any organization exempt from income tax
 5                under section 501(a) of the federal Internal
 6                Revenue Code (other than an organization described
 7                in section 401(a) or under section 521 of the
 8                Code), if:
 9                (i)  The remuneration for the service is less than
10                     $50; or
11               (ii)  The service is performed by a fully ordained,
12                     commissioned, or licensed minister of a
13                     church in the exercise of the minister's
14                     ministry or by a member of a religious order
15                     in the exercise of duties required by the
16                     order; 
17           (B)  Service performed in the employ of a school,
18                college, or university, if the service is
19                performed by a student who is enrolled and is
20                regularly attending classes at the school,
21                college, or university; or
22           (C)  Service performed by an individual who is enrolled
23                at a nonprofit or public educational institution

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                                     S.B. NO.           

 1                which normally maintains a regular faculty and
 2                curriculum and normally has a regularly organized
 3                body of students in attendance at the place where
 4                its educational activities are carried on as a
 5                student in a full-time program, taken for credit
 6                at such institution, which combines academic
 7                instruction with work experience, if such service
 8                is an integral part of such program, and such
 9                institution has so certified to the employer,
10                except that this subparagraph shall not apply to
11                service performed in a program established for or
12                on behalf of an employer or group of employers;
13     (10)  Service performed in the employ of a foreign government
14           (including service as a consular or other officer or
15           employee of a nondiplomatic representative);
16     (11)  Service performed in the employ of an instrumentality
17           wholly owned by a foreign government:
18           (A)  If the service is of a character similar to that
19                performed in foreign countries by employees of the
20                United States government or of an instrumentality
21                thereof; and
22           (B)  If the United States Secretary of State has
23                certified or certifies to the United States

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                                     S.B. NO.           

 1                Secretary of the Treasury that the foreign
 2                government, with respect to whose instrumentality
 3                exemption is claimed, grants an equivalent
 4                exemption with respect to similar service
 5                performed in the foreign country by employees of
 6                the United States government and of
 7                instrumentalities thereof;
 8     (12)  Service performed as a student nurse in the employ of a
 9           hospital or a nurses' training school by an individual
10           who is enrolled and is regularly attending classes in a
11           nurses' training school chartered or approved pursuant
12           to state law; and service performed as an intern in the
13           employ of a hospital by an individual who has completed
14           a four-year course in a medical school chartered or
15           approved pursuant to state law;
16     (13)  Service performed by an individual for an employing
17           unit as an insurance agent or as an insurance
18           solicitor, if all service performed by the individual
19           for the employing unit is performed for remuneration
20           solely by way of commission;
21     (14)  Service performed by an individual under the age of
22           eighteen in the delivery or distribution of newspapers
23           or shopping news, not including delivery or

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                                     S.B. NO.           

 1           distribution to any point for subsequent delivery or
 2           distribution;
 3     (15)  Service covered by an arrangement between the
 4           department and the agency charged with the
 5           administration of any other state or federal
 6           unemployment compensation law pursuant to which all
 7           services performed by an individual for an employing
 8           unit during the period covered by the employing unit's
 9           duly approved election, are deemed to be performed
10           entirely within the agency's state;
11     (16)  Service performed by an individual who, pursuant to the
12           Federal Economic Opportunity Act of 1964, is not
13           subject to the federal laws relating to unemployment
14           compensation;
15     (17)  Service performed by an individual for an employing
16           unit as a real estate salesperson, if all service
17           performed by the individual for the employing unit is
18           performed for remuneration solely by way of commission;
19     (18)  Service performed by a registered sales representative
20           for a registered travel agency, when the service
21           performed by the individual for the travel agent is
22           performed for remuneration by way of commission;
23     (19)  Service performed by a vacuum cleaner salesperson for

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                                     S.B. NO.           

 1           an employing unit, if all services performed by the
 2           individual for the employing unit are performed for
 3           remuneration solely by way of commission;
 4     (20)  Service performed for a family-owned private
 5           corporation organized for profit that employs only
 6           members of the family who each own at least fifty per
 7           cent of the shares issued by the corporation, provided
 8           that:
 9           (A)  The private corporation elects to be excluded from
10                coverage under this chapter;
11           (B)  The election for exclusion shall apply to all
12                shareholders and under the same circumstances;
13           (C)  No more than two members of a family may be
14                eligible per entity for exclusion under this
15                paragraph;
16           (D)  The exclusion shall be irrevocable for five years;
17           (E)  The family-owned private corporation presents to
18                the department proof that it has paid federal
19                unemployment insurance taxes as required by
20                federal law; and
21           (F)  The election to be excluded from coverage shall be
22                effective the first day of the calendar quarter in
23                which the application and all substantiating

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                                     S.B. NO.           

 1                documents requested by the department are filed
 2                with the department; [and]
 3     (21)  Service performed by a direct seller as defined in
 4           section 3508 of the Internal Revenue Code of 1986[.];
 5           and
 6     (22)  Service performed by any individual who serves in the
 7           capacity of an athletic contest official at a publicly-
 8           exhibited athletic contest as defined in section 708-
 9           881(2)(a), and includes any person who acts as an
10           umpire, referee, judge, linesperson, timer, score
11           keeper, or other similar capacity who receives
12           remuneration  solely by way of a game fee.
13      None of the foregoing exclusions (1) to [(21)] (22) shall
14 apply to any service with respect to which a tax is required to
15 be paid under any federal law imposing a tax against which credit
16 may be taken for contributions required to be paid into a state
17 unemployment fund or which as a condition for full tax credit
18 against the tax imposed by the federal Unemployment Tax Act is
19 required to be covered under this chapter."
20      SECTION 2.  Statutory material to be repealed is bracketed.
21 New statutory material is underscored.

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                                     S.B. NO.           

 1      SECTION 3.  This Act shall take effect upon its approval.
 3                           INTRODUCED BY:  _______________________