N.Y. Labor Law § 565: Governmental entities

§ 565. Governmental entities. 1. Definition. A governmental entity

shall mean the state of New York, municipal corporations and other

governmental subdivision and any instrumentality of one or more of the

foregoing.

2. Exclusions. In addition to services not included pursuant to the

provisions of section five hundred eleven of this article, the term

"employment" does not include services rendered for a governmental

entity by:

(a) an elected official;

(b) a member of a legislative body or of the judiciary;

(c) a member of the state national guard or air national guard, except

a person who renders such services as a regular state employee;

(d) a person serving on a temporary basis in case of fire, storm,

snow, earthquake, flood or similar emergency;

(e) a person in a major nontenured policymaking or advisory position;

(f) a person in a policymaking or advisory position, the duties of

which ordinarily do not require more than eight hours per week to

perform; and

(g) an incarcerated individual of a custodial or penal institution.

3. Coverage. A governmental entity shall be liable for contributions

under this article unless it becomes liable for payments in lieu of

contributions.

4. Election of payments in lieu of contributions. A governmental

entity or a group of such entities liable for contribution under this

article may elect to become liable for payments in lieu of contributions

as of the first day of any calendar year by filing with the commissioner

a written notice to this effect before the beginning of such year or, if

the governmental entity was not liable in the preceding calendar year,

by filing the notice not later than thirty days after the end of the

calendar quarter in which it first became liable. The commissioner may

for good cause shown extend the time for the filing of such notice.

5. Obligation upon election. (a) A governmental entity which has

elected to become liable for payments in lieu of contributions shall pay

into the fund an amount equal to the amount of benefits paid to

claimants and charged to its employer's account in accordance with the

provisions of paragraph (e) of subdivision one of section five hundred

eighty-one of this article on the basis of remuneration paid on or

after the date on which such liability became effective. The amount of

payments so required shall be determined by the commissioner as soon as

practicable after the end of each calendar quarter or any other period.

Such amount shall be payable quarterly or at such times and in such

manner as the commissioner shall prescribe and, when paid, the

employer's account of the governmental entity shall be discharged

accordingly.

(b) If governmental entities elect payments in lieu of contributions

as a group, the members of the group shall be severally and jointly

liable for payments of amounts equal to the amounts of benefits paid to

claimants and charged to the employer's accounts of all members of the

group. The commissioner may prescribe conditions and methods for such

group elections and for the discharge of the obligations and

responsibilities of the group and its members.

6. Termination of election. (a) A governmental entity may terminate

its election to become liable for payments in lieu of contributions as

of the first day of any calendar year by filing a written notice to this

effect with the commissioner before the beginning of such year.

(b) The commissioner may cancel at any time the election of a

governmental entity which has failed to make any of the payments

required hereunder within thirty days after the commissioner has

notified it of the liability for and the amount of such payment. Such

cancellation shall remain in force and effect until the governmental

entity files a new notice of election in accordance with the provisions

of subdivision four of this section after having satisfied conditions

and requirements prescribed by the commissioner for this purpose.

(c) If such election is terminated by a governmental entity or

cancelled by the commissioner, the governmental entity shall remain

liable for payments in lieu of contributions with respect to all

benefits charged to its account on the basis of remuneration paid before

the date on which such termination or cancellation took effect.

7. Joint accounts. Any two or more governmental entities may form a

joint account by complying with rules and regulations prescribed by the

commissioner for the establishment, maintenance and dissolution of such

accounts.

8. Assessment and collection of payments in lieu of contributions. The

amount of payments in lieu of contributions due hereunder from

governmental entities but not paid upon notice shall be assessed and

collected by the commissioner, together with interest and penalties, if

any, in the same manner and subject to the same conditions under which

contributions due from other employers may be assessed and collected

under provisions of this article.

9. Special provisions applicable to the state. (a) In lieu of

contributions, the state of New York shall pay into the fund an amount

equivalent to the amount of benefits paid to claimants and charged to

the account of the state of New York in accordance with the provisions

of paragraph (e) of subdivision one of section five hundred eighty-one

of this article.

(b) The amount of payments into the fund required shall be ascertained

by the commissioner as soon as practicable after the end of each

calendar year or any other shorter period and shall be payable from the

general funds of the state, except if a claimant to whom benefits were

paid remuneration by the state of New York during his base period from a

special or administrative fund provided for by law, other than an income

fund of the state university or the mental hygiene services fund, the

payment into the fund shall be made from such special or administrative

fund with the approval of the director of the budget. Such payments by

the state shall be made at such times and in such manner as the

commissioner, with the approval of the director of the budget, may

determine and prescribe.