Bill Text: IN SB0207 | 2010 | Regular Session | Introduced
Bill Title: False statements to state agencies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-05 - First reading: referred to Committee on Pensions and Labor [SB0207 Detail]
Download: Indiana-2010-SB0207-Introduced.html
Citations Affected: IC 6-3-7-5; IC 22-3; IC 22-4-34-2.
Synopsis: False statements to state agencies. Provides that an
employee 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 shall
not classify an employee as an independent contractor for the sole or
primary purpose of avoiding the worker's compensation law, and that
a violation is a Class A infraction. Provides that a person who makes
a false representation that an employee is an independent contractor for
the purpose of avoiding the unemployment compensation law commits
a Class C misdemeanor. Makes technical corrections. Makes
conforming amendments.
Effective: July 1, 2010.
January 5, 2010, read first time and referred to Committee on Pensions and Labor.
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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) An employee 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:
(1) report the information using electronic data interchange
standards prescribed by the board no later than June 30, 1999; or
(2) in the alternative, the reporting entity shall have an
implementation plan approved by the board no later than June 30,
2000, that provides for the ability to report the information using
electronic data interchange standards prescribed by the board no
later than December 31, 2000.
Prior to the June 30, 2000, and December 31, 2000, deadlines, the
reporting entity may continue to report accidents to the board by mail
in compliance with subsection (a).
(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 infraction. 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
infraction. 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 criminal 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 (c) (d) the court may:
(1) order the employer to cease doing business in Indiana until the
employer 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);
(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 any 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 provisions of subsection
(1) rights and remedies due to the employee under IC 22-3-2-6 or IC 22-3-7-6; or
(2) liability due under IC 22-3-5-1(a) or IC 22-3-7-34(c)(1).
(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, or of the federal government or of a foreign government; or
(3) knowingly fails to:
(A) make any such contributions or other payment;
(B) keep or furnish any reports required under this article; or
(C) produce or permit the inspection or copying of records as required under this article;
commits a Class C misdemeanor. Each day of a failure constitutes a separate offense.
