Bill Text: IN SB0143 | 2013 | Regular Session | Introduced
Bill Title: False statements to state agencies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-01-07 - First reading: referred to Committee on Corrections & Criminal Law [SB0143 Detail]
Download: Indiana-2013-SB0143-Introduced.html
Citations Affected: IC 6-3-7-5; IC 22-3; IC 22-4-34-2; IC 35-51-22-1.
Synopsis: False statements to state agencies. Provides that a person
who knowingly or intentionally makes a false statement of independent
contractor status to the department of state revenue commits a Class D
felony. Provides that an employer or employee who misclassifies a
person as an independent contractor for the sole or primary purpose of
avoiding the worker's compensation law commits a Class A
misdemeanor. Provides that a person who makes a false representation
that an employee is an independent contractor to avoid liability under
the unemployment compensation law commits a Class C misdemeanor.
Makes technical corrections. Makes conforming amendments.
Effective: July 1, 2013.
January 7, 2013, read first time and referred to Committee on Corrections & Criminal Law.
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A BILL FOR AN ACT to amend the Indiana Code concerning labor
and safety.
(b) As used in this section, "person" means an individual, a proprietorship, a partnership, a joint venture, a firm, an association, a corporation, or other legal entity.
(c) An independent contractor who does not make an election under:
(1) IC 22-3-6-1(b)(4) or IC 22-3-6-1(b)(5) is not subject to the compensation provisions of IC 22-3-2 through IC 22-3-6; or
(2) IC 22-3-7-9(b)(2) or IC 22-3-7-9(b)(3) is not subject to the compensation provisions of IC 22-3-7;
and must file a statement with the department with supporting documentation of independent contractor status and obtain a certificate of exemption under this section.
(d) An independent contractor shall file with the department, in the form prescribed by the department, a statement providing the following
information:
(1) The independent contractor's name, trade name, address, and
telephone number.
(2) The independent contractor's federal identification number or
Social Security number.
(3) The name and:
(A) Social Security number;
(B) federal employer identification number (FEIN); or
(C) taxpayer identification number (TIN);
of each person or entity with whom the independent contractor
has contracted.
(e) Along with the statement required in subsection (d), an
independent contractor shall file annually with the department
documentation in support of independent contractor status before being
granted a certificate of exemption. The independent contractor must
obtain clearance from the department of state revenue before issuance
of the certificate.
(f) An independent contractor shall pay a filing fee of five dollars
($5) with the statement required in subsection (d). The fees collected
under this subsection shall be deposited into a special account in the
state general fund known as the independent contractor information
account. Money in the independent contractor information account is
annually appropriated to the department for its use in carrying out the
purposes of this section.
(g) The department shall keep each statement and supporting
documentation received under this section on file and on request may
verify that a certificate of exemption is on file.
(h) The certificate of exemption required by this section must be on
a form prescribed and provided by the department. A certificate issued
under this section is valid for one (1) year. The department shall
maintain the original certificate on file.
(i) A certificate of exemption must certify the following
information:
(1) That the independent contractor has worker's compensation
coverage for the independent contractor's employees in
accordance with IC 22-3-2 through IC 22-3-7.
(2) That the independent contractor desires to be exempt from
being able to recover under the worker's compensation policy or
self-insurance of a person for whom the independent contractor
will perform work only as an independent contractor.
(j) The department shall provide the certificate of exemption to the
person requesting it not less than seven (7) business days after
verifying the accuracy of the supporting documentation. To be given
effect, a certificate of exemption must be filed with the worker's
compensation board of Indiana in accordance with IC 22-3-2-14.5(f)
IC 22-3-2-14.5(g) and IC 22-3-7-34.5(g). IC 22-3-7-34.5(h).
(k) Not more than thirty (30) days after the department receives an
independent contractor's statement and supporting documentation and
issues a certificate of exemption, the department shall provide the
independent contractor with an explanation of the department's tax
treatment of independent contractors and the duty of the independent
contractor to remit any taxes owed.
(l) The information received from an independent contractor's
statement and supporting documentation is to be treated as confidential
by the department and is to be used solely for the purposes of this
section.
(m) A contractor who knowingly or intentionally causes or assists
employees, including temporary employees, to file a false statement
and supporting documentation of independent contractor status
commits a Class D felony.
(n) A person who knowingly or intentionally files a false
statement or false supporting documentation of independent
contractor status commits a Class D felony.
(b) All insurance carriers, companies who carry risk without insurance, and third party administrators reporting accident information
to the board in compliance with subsection (a) shall report the
information using electronic data interchange standards prescribed by
the board.
(c) The report shall contain the name, nature, and location of the
business of the employer, the name, age, sex, wages, and occupation
of the injured employee, the date and hour of the accident causing the
alleged injury, the nature and cause of the injury, and such other
information as may be required by the board.
(d) A person who violates any provision of this article, except
IC 22-3-5-1, IC 22-3-6-4, IC 22-3-7-34(b), or IC 22-3-7-34(c),
commits a Class C misdemeanor. A person who violates IC 22-3-5-1,
IC 22-3-6-4, IC 22-3-7-34(b), or IC 22-3-7-34(c) commits a Class A
misdemeanor. The worker's compensation board in the name of the
state may seek relief from any court of competent jurisdiction to enjoin
any violation of this article.
(e) The venue of all actions under this section lies in the county in
which the employee was injured. The prosecuting attorney of the
county shall prosecute all such violations upon written request of the
worker's compensation board. Such violations shall be prosecuted in
the name of the state.
(f) In an action before the board against an employer who at the time
of the injury to or occupational disease of an employee had failed to
comply with IC 22-3-5-1, IC 22-3-7-34(b), or IC 22-3-7-34(c), the
board may award to the employee or the dependents of a deceased
employee:
(1) compensation not to exceed double the compensation
provided by this article;
(2) medical expenses; and
(3) reasonable attorney fees in addition to the compensation and
medical expenses.
(g) In an action under subsection (d), the court may:
(1) require the employer to obtain coverage and furnish proof of
insurance as required by IC 22-3-5-1 and IC 22-3-7-34(b) or
IC 22-3-7-34(c) every six (6) months for a period not to exceed
three (3) years;
(2) require satisfactory proof of the employer's financial ability to
pay any compensation or medical expenses in the amount and
manner, and when due, as provided for in IC 22-3, for all injuries
which occurred during any period of noncompliance; and
(3) require the employer to deposit with the worker's
compensation board an acceptable security, indemnity, or bond to
secure the payment of such compensation and medical expense
liabilities.
(h) The penalty provision of subsection (d) shall apply only to the
employer and shall not apply for a failure to exact a certificate of
insurance under IC 22-3-2-14, or IC 22-3-7-34(i) IC 22-3-7-34(k), or
IC 22-3-7-34(j). IC 22-3-7-34(l).
(i) In an action under subsection (d), if a compensable worker's
compensation or occupational disease claim has been filed and the
employer fails or refuses to pay benefits when due, a court may order
the employer to temporarily cease doing business in Indiana until the
employer:
(1) furnishes proof of insurance as required by IC 22-3-5-1 and
IC 22-3-7-34(b) or IC 22-3-7-34(c); and
(2) provides any other assurances required by the board to
establish that the employer has the ability to meet all worker's
compensation liabilities incurred during the employer's period of
noncompliance.
(j) An appeal of the court's decision under subsection (i) to enjoin
the employer from doing business in Indiana automatically stays the
court's order.
(1) rights and remedies due to the employee under IC 22-3-2-6 or IC 22-3-7-6; or
(2) liability incurred under IC 22-3-5-1(a) or IC 22-3-7-34(c).
(1) Makes a false statement or representation knowing it to be false,
(2) Knowingly fails to disclose a material fact to:
(A) prevent or reduce the payment of benefits to any individual entitled
(B) avoid becoming or remaining subject to this article; or
(C) avoid or reduce any contribution or other payment required from an employing unit under:
(i) this article; or
(ii) the employment security law of any other state,
federal government, or of a foreign government. or who
(3) Knowingly fails to:
(A) make any such contributions or other payment required
under this article; or to
(B) keep or furnish any reports required under this article; or
to
(C) produce or permit the inspection or copying of records as
required under this article.
commits a Class C misdemeanor.
(b) Each day of a misrepresentation or a failure occurs or
continues constitutes a separate offense.
IC 22-1-1-22 (Concerning the department of labor).
IC 22-2-2-11 (Concerning wages, hours, and benefits).
IC 22-2-7-7 (Concerning wages, hours, and benefits).
IC 22-3-1-5 (Concerning worker's compensation system).
IC 22-3-4-13 (Concerning worker's compensation system).
IC 22-4-11.5-10 (Concerning unemployment compensation system).
IC 22-4-19-6 (Concerning unemployment compensation system).
IC 22-4-29-14 (Concerning unemployment compensation system).
IC 22-4-34-2 (Concerning unemployment compensation system).
IC 22-4-34-3 (Concerning unemployment compensation system).
IC 22-4-34-4 (Concerning unemployment compensation system).
IC 22-4-34-5 (Concerning unemployment compensation system).
IC 22-4.1-4-4 (Concerning department of workforce development).
IC 22-4.1-21-38 (Concerning postsecondary proprietary educational institution accreditation).
IC 22-5-1-1 (Concerning unlawful labor practices).
IC 22-6-2-13 (Concerning labor relations).
IC 22-7-1-3 (Concerning labor organizations).
IC 22-8-1.1-24.2 (Concerning occupational health and safety).
IC 22-8-1.1-49 (Concerning occupational health and safety).
IC 22-9.5-10-1 (Concerning Indiana fair housing).
IC 22-11-14-3 (Concerning building and safety regulations).
IC 22-11-14-6 (Concerning building and safety regulations).
IC 22-11-14.5-9 (Concerning building and safety regulations).
IC 22-11-14.5-10 (Concerning building and safety regulations).
IC 22-11-14.5-11 (Concerning building and safety regulations).
IC 22-11-14.5-12 (Concerning building and safety regulations).
IC 22-11-15-6 (Concerning building and safety regulations).
IC 22-11-17-3 (Concerning building and safety regulations).
IC 22-11-17-4 (Concerning building and safety regulations).
IC 22-11-18-5 (Concerning building and safety regulations).
IC 22-11-20-6 (Concerning building and safety regulations).
IC 22-15-4-7 (Concerning building and equipment laws).
IC 22-15-7-9 (Concerning building and equipment laws).
