Bill Text: IN SB0573 | 2011 | Regular Session | Introduced
Bill Title: Construction industry employer-union agreements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-20 - First reading: referred to Committee on Pensions and Labor [SB0573 Detail]
Download: Indiana-2011-SB0573-Introduced.html
Citations Affected: IC 22-4.
Synopsis: Construction industry employer-union agreements. Provides
that a construction industry employer may enter into an agreement with
a union or other labor organization that represents the employer's
workers to allow the union or other labor organization to become the
employer of the union's or other labor organization's members only for
purposes of unemployment insurance. Permits the employer and the
union or other labor organization to negotiate as a term of the
agreement the amount that the employer pays for unemployment
insurance coverage. Establishes an initial employer contribution rate
for a union or other labor organization that has entered into an
agreement. Provides that an individual whose union or other labor
organization is the individual's employer for purposes of
unemployment insurance is automatically entitled to a work search
waiver.
Effective: July 1, 2011.
January 20, 2011, read first time and referred to Committee on Pensions and Labor.
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Chapter 7.5. Construction Industry Employer-Union Agreements
Sec. 1. This chapter applies, after December 31, 2011, to the following:
(1) An employer in the construction industry:
(A) that is subject to this article for wages paid; and
(B) whose contribution rate is determined under IC 22-4-11, IC 22-4-11.5, or IC 22-4-37-3.
(2) A union or other labor organization:
(A) whose members are regularly placed in employment in the construction industry through a union hall or other hiring service; and
(B) that maintains health insurance or a pension program for its members using an independent administrator.
Sec. 2. (a) An employer that:
(1) regularly hires as employees members of a union or other labor organization; or
(2) enters into an agreement with a union or other labor organization for purposes of employing as employees members of that union or other labor organization;
may enter into an agreement with a union or other labor organization to permit the union or other labor organization to be considered, only for purposes of this article, the employer of the union's members who provide services as employees to the employer.
(b) An agreement described in subsection (a) must require that the employer pay to the union or other labor organization an amount for unemployment insurance coverage for each member who provides services as an employee to the employer during a calendar year. The employer and the union or other labor organization may negotiate the amount of the payment, but the amount may not exceed the result obtained by:
(1) subtracting two thousand dollars ($2,000) from the part of remuneration paid in a calendar year to the member by the employer, or the employer's predecessor, for employment and included in wages (as defined in IC 22-4-4-2) for that calendar year; and
(2) multiplying the difference obtained in subdivision (1) by ten percent (10%).
(c) For purposes of this article only, the union or other labor organization is considered the employer of a member covered by an agreement described in subsection (a).
(d) Amounts paid by an employer under an agreement described in subsection (a) do not affect and may not be charged to the employer's experience account.
Sec. 3. (a) A union or other labor organization holds employer amounts paid under section 2 of this chapter in trust for the state and shall pay the amounts to the department not more than two (2) times each calendar year in the manner and at the times provided by this article and by rules adopted by the department.
(b) The department shall deposit the amounts received under this section into the unemployment insurance benefit fund established under IC 22-4-26.
Sec. 4. A union or other labor organization shall maintain an up-to-date list of all members placed with each employer with which the union or other labor organization has an agreement
under this chapter. The union or other labor organization shall
provide this information to the department in the manner and at
the times provided by this article and by rules adopted by the
department.
Sec. 5. (a) Notwithstanding IC 22-4-10-3 and IC 22-4-11-2, and
except as otherwise provided in IC 22-4-37-3, a union's or other
labor organization's employer contribution rate under this article
for a calendar year, unless and until the union or other labor
organization has been subject to this article as an employer for
thirty-six (36) consecutive calendar months immediately preceding
the computation date, is equal to:
(1) the part of remuneration paid in the preceding calendar
year to a member by an employer, or the employer's
predecessor, for employment and included in wages (as
defined in IC 22-4-4-2) for that calendar year; multiplied by
(2) twenty percent (20%).
(b) After the initial thirty-six (36) calendar month period
described in subsection (a), this article applies to a union or other
labor organization to the same extent as this article applies to an
employer:
(1) that is subject to this article for wages paid; and
(2) whose contribution rate is determined under IC 22-4-11,
IC 22-4-11.5, or IC 22-4-37-3.
Sec. 6. A union or other labor organization is considered to be
an employer under this article for purposes of receiving notice of
a claim for benefits under IC 22-4-17-2 and may appeal a claim
under the same procedure that applies to any other employer to
which this article applies.
Sec. 7. An individual who:
(1) is a member of a union or other labor organization; and
(2) provides services as an employee to an employer that has
entered into an agreement under this chapter with the
member's union or other labor organization;
is automatically entitled to a work search waiver under
IC 22-4-14-2.
(b) This subsection applies after December 31, 2010, and before January 1, 2012. Except as provided in section 1(b) through 1(e) of this chapter, each employer shall pay contributions equal to twelve percent (12%) of wages, except as otherwise provided in IC 22-4-11-2, IC 22-4-11-3.5, IC 22-4-11.5, and IC 22-4-37-3.
(c) This subsection applies after December 31, 2011. Except as provided in section 1(b) through 1(e) of this chapter, each employer shall pay contributions equal to twelve percent (12%) of wages, except as otherwise provided in IC 22-4-7.5, IC 22-4-11-2, IC 22-4-11-3.5, IC 22-4-11.5, and IC 22-4-37-3.
(1) the Congress of the United States amend, repeal, or authorize the implementation of a demonstration project under 29 U.S.C. 49 et seq., 26 U.S.C. 3301 through 3311, 42 U.S.C. 301 et seq., or 26 U.S.C. 3101 through 3504, or any statute or statutes supplemental to or in lieu thereof or any part or parts of said statutes, or should any or all of said statutes or any part or parts thereof be held invalid, to the end and with such effect that appropriations of funds by the said Congress and grants thereof to the state for the payment of costs of administration of the department are or no longer shall be available for such purposes;
(2) the primary responsibility for the administration of 26 U.S.C. 3301 through 26 U.S.C. 3311 be transferred to the state as a demonstration project authorized by Congress; or
(3) employers in Indiana subject to the payment of tax under 26 U.S.C. 3301 through 3311 be granted full credit upon such tax for contributions or taxes paid to the department;
then, beginning with the effective date of such change in liability for payment of such federal tax and for each year thereafter, the normal contribution rate under this article shall be established by the department and may not exceed three and one-half percent (3.5%) per year of each employer's payroll subject to contribution. With respect to each employer having a rate of contribution for such year pursuant to terms of IC 22-4-7.5, IC 22-4-11-2(b)(2)(A), IC 22-4-11-2(b)(2)(B), IC 22-4-11-2(c), IC 22-4-11-3, IC 22-4-11-3.3, IC 22-4-11-3.5, and IC 22-4-11.5, to the rate of contribution, as determined for such year in which such change occurs, shall be added not more than eight-tenths percent (0.8%) as prescribed by the department.
(b) The amount of the excess of tax for which such employer is or may become liable by reason of this section over the amount which
such employer would pay or become liable for except for the provisions of this section, together with any interest or earnings thereon, shall be paid and transferred into the employment and training services administration fund to be disbursed and paid out under the same conditions and for the same purposes as is other money provided to be paid into such fund. If the commissioner shall determine that as of January 1 of any year there is an excess in said fund over the money and funds required to be disbursed therefrom for the purposes thereof for such year, then and in such cases an amount equal to such excess, as determined by the commissioner, shall be transferred to and become part of the unemployment insurance benefit fund, and such funds shall be deemed to be and are hereby appropriated for the purposes set out in this section.
