Resolve, To Require the Depart:ment of Labor, in Consultation and Practices Purposes of wi th Interested Parties, To bamine the Laws Reqardin9 the Definition of Employment for Unemployment Compensation Further amend the bill by striking out everything after the title and before the summary and inserting in its place the following: Sec. 1. Definition of employment. Resolved: That the Department of Labor, in consultation with interested parties, shall study the laws and practices used in defining "employment" for purposes of unemployment compensation. The study must include an examination of the following issues and any others the department or an interested party determines to be appropriate: 1. The adequacy of current laws and standards that define employment" for purposes of unemployment compensation, including the Maine Revised Statutes, Title 26, section 1043, subsection 11, paragraph E, to distinguish accurately between persons who are bona fide independent contractors and those who should be considered employees; 2. The need for, or benefit of, revising the Department of Labor survey instrument used to determine who is a bona fide independent contractor; Page 1-LR2986(4) COMMITTEE AMENDMENT
Maine Legislature, Session 122, LD 1847
Committee Amendment CA_B_H937 (House)

AMENDMENT ,g" to H.P. 1287, L.D. 1847, Bill, "An 
the Unemployment Laws Relating to Subcontractors" 
Amend the bill by striking out the title and substituting 
the following: 
, Resolve, To Require the Depart:ment of Labor, in Consultation 
and Practices 
Purposes 
of 
wi th Interested Parties, 
To 
bamine the 
Laws 
Reqardin9 
the 
Definition 
of 
"Employment" 
for 
Unemployment Compensation' 
Further amend the bill by striking out everything after the 
title and before the summary and inserting in its place the 
following: 
'Sec. 1. Definition of employment. Resolved: That the Department 
of Labor, in consultation with interested parties, shall study 
the laws and practices used in defining "employment" for purposes 
of 
unemployment 
compensation. 
The 
study 
must 
include 
an 
examination of the following issues and any others the department 
or an interested party determines to be appropriate: 
1. 
The adequacy of current laws and standards that define 
"employment" for purposes of unemployment compensation, including 
the Maine Revised Statutes, Title 26, section 1043, subsection 
11, paragraph E, to distinguish accurately between persons who 
are bona fide independent contractors and those who should be 
considered employees; 
2. 
The need for, or benefit of, revising the Department of 
Labor survey instrument used to determine who is a 
bona fide 
independent contractor; 
COMMITTEE AMENDMENT 
~~ .. 
COMMITTEE AMENDMENT;:/5 .. to H.P. 1287, L.D. 1847 
3. 
The 
need for, 
or benefit of, 
the State's adopting 
Internal Revenue Service guidelines for determining who is a bona 
fide independent contractor; 
4. 
The need for, or benefit of, the State's adopting the 
same criteria for determining who is a bona fide independent 
contractor for purposes of unemployment compensation that it now 
follows for purposes of workers' compensation; and 
5. 
The need for, or benefit of, the State's instituting a 
precertification program for bona fide independent contractors 
similar to programs in Montana and other states; and be it further 
Sec. 2. Report. Resolved: 
That the Department of Labor, after 
consultation 
with interested parties, shall submit a report to 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction over labor matters by January 15, 
2007 regarding 
this resolve. 
The report must include findings, recommendations 
and any proposed implementing 
l~gislation. 
The joint standing 
committee 
of 
the 
Legislature having 
jurisdiction over 
labor 
matters may report out legislation relating to the subject matter 
of this resolve to 
the First Regular 
Session of 
the 
123rd 
Legislature; and be it further 
Sec. 3. Participants in study. Resolved: 
That, in conducting the 
study under section 1 a,nd px:eparing the report under section 2, 
the Department of Labor shall call upon interested parties to 
participate and offer comment and shall offer equal participation 
to 
representatives 
of 
both 
management 
and 
labor 
interests, 
including, but not limited to, representatives of: 
1. 
Contractors who employ the services of subcontractors; 
2. 
Self-employed, unincorporated subcontractors; 
3. 
Persons 
engaged 
in 
the 
installation 
of 
flooring 
materials: and 
4. 
Attorneys who practice in labor law, including the areas 
of unemployment compensation and workers' compensation law; and 
be it further 
Sec. 4. Funding. Resolved: 
That the Department of Labor 
shall seek outside funds from the Federal Government, nonprofit 
foundations and other appropriate public or private sources to 
fund the costs of the study. 
Contributions to support the study 
may not be accepted from any party having a pecuniary or other 
COMMITTEE AMENDMENT 
"'~" 
COMMITTEE AMENDMENT~" to H.P. 1287, L.D. 1847 
vested interest in the outcome of the matters being studied. 
To 
the extent that outside contributions are inadequate to pay for 
all costs of the study, the department shall make every effort to 
complete the study and report within existing budgeted resources.' 
SUMMARY 
This amendment strikes the bill and replaces it with 
a 
resolve. 
The resolve requires the Department of Labor to conduct 
a study of the laws and practices regarding the definition of 
"employment" 
for 
purposes 
of 
unemployment 
compensation. 
The 
department shall call upon interested parties in conducting its 
study and shall submit a report to the joint standing committee 
of the Legislature having jurisdiction over labor matters with 
its 
findings, 
recommendations 
and 
any 
proposed 
implementing 
legislation. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/29/06 ~aC!-
LD 1847 
LR2986(04) 
An Act to Clarify the Unemployment Laws Relating to Subcontractors 
Fiscal Note for Bill as Amended by Committee Amendment ~" 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
Additional costs to the Department of Labor to conduct the required study and issue the required report can be 
absorbed utilizing existing budgeted resources and the outside contribution provisions included in this legislation. 
LR2986(4) - Fiscal Note - Page 1 of 1