2003 -- S 0526
A N A C T
RELATING TO PUBLIC OFFICERS AND EMPLOYEES - FEDERAL OLD - AGE AND
Introduced By: Senators DaPonte, and Ruggerio
Date Introduced: February 13, 2003
It is enacted by the General Assembly as follows:
SECTION 1. Section 36-7-2 of the General Laws in Chapter 36-7 entitled "Federal Old-
Age and Survivors' Insurance" is hereby amended to read as follows:
36-7-2. Definitions. -- For the purposes of sections 36-7-1 -- 36-7-31 and 36-7-35, the
following terms shall have the meanings indicated unless different meanings are clearly expressed
or required by the context:
(1) "Agency of the state" shall mean:
(i) All departments, divisions, agencies, and instrumentalities of the state which are not
juristic entities, legally separate and distinct from the state;
(ii) Civilian employees of the Rhode Island national guard; or
(iii) Any instrumentality of the state such as fire districts, water districts, water
authorities, sewer commissions and authorities, housing authorities, or other instrumentality of
the state which are a juristic entity and legally separate and distinct from the state and if the
employees of the instrumentality are not by virtue of their relation to juristic entity employees of
the state. Without limiting the generality of the foregoing, examples of those agencies would be
the Kent County water authority, the Providence housing authority, the Blackstone Valley sewer
district commission, and other like instrumentalities of the state.
(2) "City or town" shall mean:
(i) Any city or town of the state of Rhode Island, inclusive of any department, division,
agency, board, commission, or bureau thereof;
(ii) Any instrumentality of a city or town which is a juristic entity and legally separate
and distinct from the city or town and if its employees are not by virtue of their relation to the
juristic entity employees of the city or town; or
(iii) Any instrumentality of two or more citizens and/or towns which is a juristic entity as
provided in subdivision (ii) hereof.
(3) "Coverage group" shall mean:
(i) All employees of the state other than those engaged in performing service in
connection with a proprietary function;
(ii) All employees of a city or town other than those engaged in performing service in
connection with a single proprietary function;
(iii) All employees of the state engaged in performing service in connection with a single
(iv) All employees of an agency of the state;
(v) All employees of a city or town of the state engaged in performing service in
connection with a single proprietary function. If under the preceding sentence an employee would
be included in more than one coverage group by reason of the fact that he or she performs service
in connection with two (2) or more proprietary functions or in connection with both a proprietary
function and a nonproprietary function, he or she shall be included in only one coverage group.
The determination of the coverage group in which the employee shall be included shall be made
in such manner as may be specified in the agreement. Members of retirement systems shall
constitute separate coverage groups as provided in section 36-7-10.
(4) "Employee" shall mean any officer or employee of any city, town, or agency of the
state receiving salaries or wages for employment.
(5) "Employment" shall mean any service performed by an employee for wages as a
member of a coverage group as herein defined, including service of an emergency nature, service
in any class or classes of elective positions and service in part-time positions, but excluding the
(i) Service in a position the compensation for which is on a fee basis;
(ii) Service performed by election officials or election workers for
quarter in which
the remuneration paid for that service is less than fifty dollars ($50.00);
one thousand two hundred fifty dollars ($1,250), and for each calendar year after 2003 in which
the remuneration paid is less than the adjusted amount in accordance with section 218(c)(8)(B) of
the Social Security Act;
(iii) Service which under the federal Social Security Act may not be included in an
agreement between the state and the secretary entered into under this chapter;
(iv) (A) Service which, in the absence of an agreement entered into under sections 36-7-
1 -- 36-7-31, would constitute "employment" as defined in the federal Social Security Act.
Service which under the federal Social Security Act may be included in an agreement only upon
certification by the governor in accordance with section 218(d)(3) of the federal Social Security
Act, 42 U.S.C. section 418(d)(3), shall be included in the term "employment" if and when the
governor issues, with respect to that service, a certificate to the secretary, pursuant to section 36-
(B) Notwithstanding any of the foregoing, if pursuant to section 141 of P.L. 92-603, 42
U.S.C. section 418, the state agreement with the federal government referred to in section 36-7-3
is modified appropriately at any time prior to January 1, 1974, the term "employment" with
respect to any coverage group specified in the modification shall, effective after the effective date
specified in the modification, include services in designated part-time positions but not services
performed in the employ of a school, college, or university by a student who is enrolled and
regularly attending classes at that school, college, or university.
(6) "Federal Insurance Contributions Act" shall mean subchapter A of chapter 9 of the
federal Internal Revenue Code of 1939, subchapters A and B of chapter 21 of the federal Internal
Revenue Code of 1954, and subchapters A and B of chapter 21 of the federal Internal Revenue
Code of 1986 as those codes have been and may from time to time be amended; and the term
"employee tax" shall mean the tax imposed by section 1400 of the code of 1939, section 3101 of
the code of 1954, and section 3101 of the code of 1986.
(7) "Federal Social Security Act", 42 U.S.C. section 301 et seq., shall mean the act of
congress approved August 14, 1935, officially cited as the "Social Security Act", including any
amendments thereto, and any regulations, directives, or requirements interpretative or
(8) "Part-time employment" shall mean any employment by those who work on a
regularly scheduled basis regardless of hours.
(9) "Retirement board" shall mean the retirement board as provided in chapter 8 of this
(10) "Secretary", except when used in the title "secretary of the treasury", shall mean the
secretary of health and human services and any individual to whom the secretary of health and
human services has delegated any of his or her functions under the federal Social Security Act, 42
U.S.C. section 301 et seq., with respect to coverage under that act of employees of states and their
(11) "Sick pay" shall mean the amount of any payment (including any amount paid by an
employer for insurance or annuities, or into a fund to provide for any sick pay) made to, or on
behalf of, an employee or any of his or her dependents under a plan or system established by an
employer which makes provision for his employees generally (or for his or her employees
generally and their dependents) or for a class or classes of his employees (or for a class or classes
of his employees and their dependents), on account of sickness or accident disability.
(12) "State" shall mean the state of Rhode Island.
(13) "Wages" or "salaries" shall mean all compensation received by an employee for
employment as defined herein, including the cash value of all remuneration received by an
employee in any medium other than cash, except that this term shall not include that part of the
renumeration which, even if it were for "employment" within the meaning of the Federal
Insurance Contributions Act, 26 U.S.C. section 3101 et seq., would not constitute "wages" within
the meaning of that act.
SECTION 2. This act shall take effect retroactive to January 1, 2003.