Reference is to the bill as introduced.
Amend the bill, as and if amended, by striking all after the enacting clause and inserting:
/ SECTION 1. Article 9, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1220.
(A)(1) If a participating employer in
the system engages an active, inactive, former, or retired
member of the system to perform services for the employer, but
has not reported the member to the system as an employee, the
participating employer shall pay to the system the employer
contribution that would be required if the member received the
compensation as an active contributing member of the system.
Contributions are required under this section if the member is
engaged to perform services for the employer for compensation in
any capacity, regardless of whether the member is classified as
an employee, independent contractor, leased employee, joint
employee, or other classification of worker.
(2)
The contribution requirements of this section do not apply
if the member is engaged to perform services that traditionally
have not been provided by employees of the participating
employer. In making a determination on whether a service
traditionally has been performed by employees of the
participating employer, the board shall consider who has the
right to exercise control over the member in the performance of
the service, how the member is paid for the service, who
furnishes equipment to perform the service, and who has the
right to terminate the member's performance of the service. A
participating employer shall submit any certifications and
information required by the board to determine whether this
exception applies.
(B) A retired member
engaged to perform services is not considered an active member
of the system and does not accrue service credit in the system
by reason of the contributions remitted pursuant to this
section. An active, inactive, or former member engaged to
perform services is not considered an active member of the
system and does not accrue service credit in the system by
reason of the contributions remitted pursuant to this section,
unless the participating employer has reported the member as an
active employee to the system and the required member
contributions also are made.
(C) Compensation
received by a retired member of the system that is subject to
the contribution requirements of this section is considered
compensation earned from covered employment for the purposes of
the earnings limitations set out in Section 9-1-1790(A).
(D) The requirements of
this section are in addition to, and not in lieu of, any other
requirements of this title.
(E) This section does
not require a member or employer to make contributions if the
member is eligible to opt out of participation in the system in
connection with the services provided and the member makes a
timely and valid election to decline participation.
(F) The board is
authorized to audit participating employers in the system,
including any contracts or arrangements with third parties, to
verify compliance with the requirements of this section or any
other provision of this title. The provisions of this title
related to the collection of employer contributions to the
system apply to any contributions required by this
section."
SECTION 2. Article 1, Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-240.
(A)(1) If a participating employer in
the system engages an active, inactive, former, or retired
member of the system to perform services for the employer, but
has not reported the member to the system as an employee, the
participating employer shall pay to the system the employer
contribution that would be required if the member received the
compensation as an active contributing member of the system.
Contributions are required under this section if the member is
engaged to perform services for the employer for compensation in
any capacity, regardless of whether the member is classified as
an employee, independent contractor, leased employee, joint
employee, or other classification of worker.
(2)
The contribution requirements of this section do not apply
if the member is engaged to perform services that traditionally
have not been provided by employees of the participating
employer. In making a determination on whether a service
traditionally has been performed by employees of the
participating employer, the board shall consider who has the
right to exercise control over the member in the performance of
the service, how the member is paid for the service, who
furnishes equipment to perform the service, and who has the
right to terminate the member's performance of the service. A
participating employer shall submit any certifications and
information required by the board to determine whether this
exception applies.
(B) A retired member
engaged to perform services is not considered an active member
of the system and does not accrue service credit in the system
by reason of the contributions remitted pursuant to this
section. An active, inactive, or former member engaged to
perform services is not considered an active member of the
system and does not accrue service credit in the system by
reason of the contributions remitted pursuant to this section,
unless the participating employer has reported the member as an
active employee to the system and the required member
contributions also are made.
(C) Compensation
received by a retired member of the system that is subject to
the contribution requirements of this section is considered
compensation earned from covered employment for the purposes of
the earnings limitations set out in Section 9-11-90(4)(A).
(D) The requirements of
this section are in addition to, and not in lieu of, any other
requirements of this title.
(E) This section does
not require a member or employer to make contributions if the
member is eligible to opt out of participation in the system in
connection with the services provided and the member makes a
timely and valid election to decline participation.
(F) The board is
authorized to audit participating employers in the system,
including any contracts or arrangements with third parties, to
verify compliance with the requirements of this section or any
other provision of this title. The provisions of this title
related to the collection of employer contributions to the
system apply to any contributions required by this
section."
SECTION 3. Section 9-1-1790(A)(2) of the 1976 Code of Laws is amended to read:
"(2)
The earnings limitation imposed pursuant to this
item does not apply if the member meets at least one of the
following qualifications:
(a)
the member retired before January 2, 2013;
(b)
the member has attained the age of sixty-two years at
retirement; or
(c)
compensation received by the retired member from the
covered employer is for service in a public office filled by the
appointment of the Governor and with confirmation by the Senate,
by appointment or election by the General Assembly, or by
election of the qualified electors of the applicable
jurisdiction; or
(d)
the member has not been engaged to perform
services for a participating employer in the system or any other
system provided in this title for compensation in any capacity,
whether as an employee, independent contractor, leased employee,
joint employee, or other classification of worker, for a period
of at least twelve consecutive months subsequent to retirement.
The exemption provided under this subitem does not apply unless
the member first certifies to the system that he satisfies the
requirements for the exemption. If a member inaccurately
certifies that he satisfies the requirements for the exemption
provided in this subitem, the member is responsible for
reimbursing the system for any benefits wrongly paid to the
member."
SECTION 4. Section 9-11-90(4)(a)(ii) of the 1976 Code of Laws is amended to read:
"(ii)
The earnings limitation imposed pursuant to this
item does not apply if the member meets at least one of the
following qualifications:
(A)
the member retired before January 2, 2013;
(B)
the member has attained the age of fifty-seven years at
retirement; or (C)
compensation received by the retired member from
the covered employer is for service in a public office filled by
the appointment of the Governor and with confirmation by the
Senate, by appointment or election by the General Assembly, or
by election of the qualified electors of the applicable
jurisdiction; or
(D)
the member has not been engaged to perform
services for a participating employer in the system or any other
system provided in this title for compensation in any capacity,
whether as an employee, independent contractor, leased employee,
joint employee, or other classification of worker, for a period
of at least twelve consecutive months subsequent to retirement.
The exemption provided under this subitem does not apply unless
the member first certifies to the system that he satisfies the
requirements for the exemption. If a member inaccurately
certifies that he satisfies the requirements for the exemption
provided in this subitem, the member is responsible for
reimbursing the system for any benefits wrongly paid to the
member."
SECTION 5. This act takes effect on July 1, 2019. /
Renumber sections to conform.
Amend title to conform.