SF 715

2nd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to child support; modifying the penalties for 
  1.3             noncompliance with work reporting; requiring payors 
  1.4             who hire independent contractors to comply with the 
  1.5             work reporting laws; requiring a report from the 
  1.6             commissioner of human services; amending Minnesota 
  1.7             Statutes 2000, section 256.998, subdivision 9. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 256.998, 
  1.10  subdivision 9, is amended to read: 
  1.11     Subd. 9.  [INDEPENDENT CONTRACTORS.] (a) The state and all 
  1.12  political subdivisions of the state, when acting in the capacity 
  1.13  of an employer, shall report the hiring of any person as an 
  1.14  independent contractor to the centralized work reporting system 
  1.15  in the same manner as the hiring of an employee is reported. 
  1.16     (b) Other payors may shall also report independent 
  1.17  contractors who are individuals or sole proprietors and to whom 
  1.18  they expect to make annual payments that require the filing of a 
  1.19  1099-MISC report of more than $2,500.  Payors reporting 
  1.20  independent contractors shall report by use of the same means 
  1.21  and provide the same information required under subdivisions 4 
  1.22  and 5. 
  1.23     (c) The commissioner of human services shall establish 
  1.24  procedures for payors reporting under this section. 
  1.25     Sec. 2.  [REPORT.] 
  1.26     (a) The commissioner of human services must report to the 
  2.1   legislature on: 
  2.2      (1) the frequency that employers fail to comply with the 
  2.3   work reporting requirements of Minnesota Statutes, section 
  2.4   256.998; 
  2.5      (2) the sanctions imposed for failure; 
  2.6      (3) the overall effectiveness of the work reporting system; 
  2.7      (4) changes that should be made to improve the 
  2.8   effectiveness of the work reporting system, specifically 
  2.9   addressing whether or not the sanctions available for 
  2.10  noncompliance are sufficient to deter noncompliance; and 
  2.11     (5) the system by which the commissioner determines whether 
  2.12  or not an employer is underreporting or reporting late. 
  2.13     The public authority responsible for child support 
  2.14  enforcement may exchange private data with the department of 
  2.15  economic security and the department of revenue for the purpose 
  2.16  of determining employers' and payors' compliance with this 
  2.17  section. 
  2.18     (b) The report must be completed by January 15, 2002, and 
  2.19  must comply with Minnesota Statutes, sections 3.195 and 3.197.