An Act to Exempt Contract Dance Instructors and National Service Volunteers from the Unemployment Tax
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, Maine communities presently benefit from the community service performed by state citizens participating in national service programs funded by the federal agency known as the Corporation for National Service; and
Whereas, national service participants in AmeriCorps*USA, AmeriCorps*VISTA, Learn and Service America Students and Senior Corps not only help communities carry out projects that would remain undone were it not for the assistance of national service but also engage local citizens as volunteers to build the communities' capacity to sustain the service project; and
Whereas, some national service programs require a time commitment that precludes employment and, therefore, make it possible for citizens of all socioeconomic backgrounds to serve their communities by providing a modest living allowance; and
Whereas, national service participants in AmeriCorps*USA and AmeriCorps*VISTA become eligible for educational awards held in trust under the system established by the federal National and Community Service Trust Act of 1993; and
Whereas, the federal laws and regulations pertaining to national service programs clearly state that national service participants are not employees, are not serving for the purpose of gaining employment skills and may not displace workers and that national service participants are not eligible to collect unemployment benefits from the federal system under a determination by the United States Department of Labor; and
Whereas, under the standards of Maine law, the stipend and educational award have been determined to be compensation; and
Whereas, this discrepancy creates a fiscal impact for the State which not only benefits from the service activities of these volunteers but also administers national service programs; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 26 MRSA §1043, sub-§11, ¶F, as corrected by RR 1995, c. 2, §62, is amended by amending subparagraphs (38) and (39) to read:
(38) Services performed by a person licensed as a guide as required by Title 12, section 7311, as long as that employment is not subject to federal unemployment tax; and
(39) Services performed by a direct seller as defined in 26 United States Code, Section 3508, Subsection (b), Paragraph (2). This subparagraph does not include a person selling major improvements or renovations to the structure of a home, business or property.;
Sec. 2. 26 MRSA §1043, sub-§11, ¶F, as corrected by RR 1995, c. 2, §62, is amended by adding 2 new subparagraphs to read:
(40) Services provided by a dance instructor to students of a dance studio when there is a contract between the instructor and the studio under which the instructor's services are not offered exclusively to the studio, the studio does not control the scheduling of the days and times of classes other than beginning and end dates, the instructor is paid by the class and not on an hourly or salary basis, the compensation rate is the result of negotiation between the instructor and the studio and the instructor is given the freedom to develop the curriculum; and
(41) Services performed by participants enrolled in programs or projects under the national service laws including the federal National and Community Service Act of 1990, as amended, 42 United States Code, Section 12501 et seq., and the federal Domestic Volunteer Service Act, as amended, 42 United States Code, Section 4950 et seq.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective June 10, 1997.
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