[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2129 Introduced in Senate (IS)]

  2d Session
                                S. 2129

  To amend the Internal Revenue Code of 1986 to clarify that any home-
based service worker is an employee of the administrator of home-based 
                    service worker program funding.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 15, 2002

 Mr. Bingaman introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to clarify that any home-
based service worker is an employee of the administrator of home-based 
                    service worker program funding.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF EMPLOYEE STATUS OF HOME-BASED SERVICE 
              WORKERS.

    (a) In General.--Section 3121(d)(3) of the Internal Revenue Code of 
1986 (defining employee) is amended by striking ``and'' at the end of 
subparagraph (C), by adding ``or'' at the end of subparagraph (D), and 
by inserting after subparagraph (D) the following new subparagraph:
                    ``(E) any qualified home-based service worker;''.
    (b) Definition.--Section 3121(d) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new flush sentence:
``For purposes of paragraph (3)(E), the term `qualified home-based 
service worker' means an individual providing in-home household or 
personal care services for disabled and elderly individuals under a 
program the funding of which is administered by a State, State agency, 
or an intermediate services organization.''.
    (c) Program Agent Treated as Employer of Qualified Home-Based 
Service Worker.--Section 3504 of the Internal Revenue Code of 1986 
(relating to acts to be performed by agents) is amended--
            (1) by striking ``In case a fiduciary'' and inserting:
    ``(a) In General.--In case of a fiduciary'', and
            (2) by adding at the end the following new subsection:
    ``(b) Home-Based Service Worker Programs.--For purposes of 
subsection (a), in the case of any program under which is provided 
funding for the employment of qualified home-based service workers (as 
defined in section 3121(d)), the administrator of such funding shall be 
treated as the agent for any employer of such worker and such employer 
shall not remain subject to the provisions of law (including penalties) 
applicable in respect of such an employer.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to services performed after December 31, 2002.
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