5 1 ❝SEC. 3310. STATE LAW COVERAGE OF CERTAIN SERVICES 2 PERFORMED FOR NONPROFIT ORGANIZA 3 4 5 TIONS AND FOR STATE HOSPITALS AND IN STITUTIONS OF HIGHER EDUCATION. "(a) STATE LAW REQUIREMENTS.-For purposes of 6 section 3304 (a) (6)— "(1) except as otherwise provided in subsections (b) and (c), the services to which this paragraph applies are "(A) service excluded from the term 'employment' solely by reason of paragraph (8) of section 3306 (c), and "(B) service performed in the employ of a State, or any instrumentality of one or more States, for a hospital or institution of higher education, if such service is excluded from the term 'employ ment' solely by reason of paragraph (7) of section 3306 (c); and "(2) the State law shall provide that an organiza tion (or group of organizations) which, but for the re quirements of this paragraph, would be liable for con 22 tributions with respect to service to which paragraph 23 24 25 (1) (A) applies may elect, for such minimum period and at such time as may be provided by State law, to pay (in lieu of such contributions) into the State unem 1 2 3 4 5 6 8 9 6 ployment fund amounts equal to the amounts of compensation attributable under the State law to such service. The State law may provide safeguards to ensure that organizations so electing will make the payments required under such elections. "(b) SECTION NOT TO APPLY TO CERTAIN SERV7 ICE. This section shall not apply to service performed"(1) in the employ of (A) a church or convention or association of churches, or (B) an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of 10 11 221 13 14 churches; "(2) by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order; "(3) in the employ of an educational institution which is not an institution of higher education; "(4) in a facility conducted for the purpose of carrying out a program of— "(A) rehabilitation for individuals whose earning capacity is impaired by age or physical or men tal deficiency or injury, or 1 2 3 4 5 6 7 8 9 10 11 12 7 "(B) providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market, by an individual receiving such rehabilitation or remu nerative work; and "(5) as part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any Federal agency or an agency of a State or political subdivision thereof, by an individual receiving such work relief or work training. "(c) NONPROFIT ORGANIZATIONS MUST EMPLOY 4 OR MORE.-This section shall not apply to service performed 14 during any calendar year in the employ of any organization 15 unless on each of some 20 days during such calendar year 16 or the preceding calendar year, each day being in a different 17 calendar week, the total number of individuals who were em 18 ployed by such organization in employment (determined 19 without regard to section 3306 (c) (8) and by excluding 20 service to which this section does not apply by reason of 21 subsection (b)) for some portion of the day (whether or not at the same moment of time) was 4 or more." (2) The table of sections for such chapter 23 is amended by inserting at the end thereof the following: 85-277 0-69- -3 8 1 ❝SEC. 3310. STATE LAW COVERAGE OF CERTAIN SERVICE 2 3 4 5 PERFORMED FOR NONPROFIT ORGANIZA TIONS AND FOR STATE HOSPITALS AND IN STITUTIONS OF HIGHER EDUCATION." (c) Section 3303 of the Internal Revenue Code of 1954 6 is amended by adding at the end thereof the following new 7 subsections: 8 "(e) PAYMENTS BY CERTAIN NONPROFIT ORGANIZA9 TIONS.-A State may, without being deemed to violate the 10 standards set forth in subsection (a), permit an organiza11 tion (or a group of organizations) described in section 12 501 (c) (3) which is exempt from income tax under sec13 tion 501 (a) to elect (in lieu of paying contributions) to 14 pay into the State unemployment fund amounts equal to the 15 amounts of compensation attributable under the State law to 16 service performed in the employ of such organization (or 17 group). 18 "(f) TRANSITION.-To facilitate the orderly transition 19 to coverage of service to which section 3310(a) (1) (A) 20 applies, a State law may provide that an organization (or 21 group of organizations) which elects, when such election first 22 becomes available under the State law, to make payments 23 (in lieu of contributions) into the State unemployment fund 9 1 as provided in section 3310 (a) (2), and which had paid 2 contributions into such fund under the State law with re3 spect to such service performed in its employ before January 4 1, 1969, is not required to make any such payment (in lieu 5 of contributions) on account of compensation paid after its 6 election as heretofore described which is attributable under 7 the State law to service performed in its employ, until the 8 total of such compensation equals the amount 9 10 11 12 23 13 14 15 16 17 18 "(1) by which the contributions paid by such organization (or group) with respect to a period not to exceed five years before the election provided by section 3310 (a) (2) exceed "(2) the unemployment compensation for the same period which was charged to the experience-rating account of such organization (or group) or paid under the State law on the basis of wages paid by it or service performed in its employ, whichever is appropriate." (d) The amendments made by subsections (a) and (b) 19 shall apply with respect to certifications of State laws for 20 1972 and subsequent years, but only with respect to service 21 performed after December 31, 1971. The amendment made 22 by subsection (c) shall take effect January 1, 1970. |