72-1352A. CORPORATE OFFICERS — EXEMPTION FROM COVERAGE — NOTIFICATION — REINSTATEMENT. (1) A corporation that is a public company, other than those covered in sections 72-1316A, 72-1322D and 72-1349C, Idaho Code, may elect to exempt from coverage pursuant to this chapter any bona fide corporate officer who is voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation, is a shareholder of the corporation, exercises substantial control in the daily management of the corporation and whose primary responsibilities do not include the performance of manual labor.

(2) A corporation that is not a public company, other than those covered in sections 72-1316A, 72-1322D and 72-1349C, Idaho Code, may elect to exempt from coverage pursuant to this chapter any bona fide corporate officer, without regard to the corporate officer’s performance of manual labor, if the corporate officer is a shareholder of the corporation, voluntarily agrees to be exempted from coverage and exercises substantial control in the daily management of the corporation.

(3) For purposes of this section, a "public company" is a corporation that has a class of shares registered with the federal securities and exchange commission pursuant to section 12 or 15 of the Securities and Exchange Act of 1934 or section 8 of the Investment Company Act of 1940, or any successor statute.

(4) To make the election, a corporation with qualifying corporate officers pursuant to subsection (1) or (2) of this section must register with the department each qualifying corporate officer it elects to exempt from coverage. The registration must be in a format prescribed by the department and be signed and dated by the corporate officer being exempted from coverage. Registration forms received and approved by the department on or before December 15 shall become effective the first day of the next calendar year and shall remain in effect for at least two (2) consecutive calendar years. Registration forms received and approved by the department after December 15, 2011, and on or before July 31, 2012, shall become effective January 1, 2012, and shall remain in effect for at least two (2) consecutive calendar years. Except for elections made after December 15, 2011, and on or before July 31, 2012, exemptions from coverage shall not be retroactive and the corporation requesting the exemption shall not be eligible for a refund or credit for contributions paid for corporate officers before the effective date of the exemption.

(5) A newly formed corporation with qualifying corporate officers pursuant to subsections (1) and (2) of this section shall register with the department each corporate officer it elects to exempt within forty-five (45) calendar days after submitting its Idaho business registration form to the department as required by section 72-1337, Idaho Code. The registration must be in a format prescribed by the department and be signed and dated by the corporate officer being exempted from coverage. Registration forms received and approved by the department shall become effective as of the date the Idaho business registration form was submitted to the department and shall remain in effect for at least two (2) consecutive calendar years.

(6) A corporation may elect to reinstate coverage for one (1) or more corporate officers previously exempted pursuant to this section. Reinstatement requires written notice from the corporation to the department in a format prescribed by the department. Reinstatement requests received by the department on or before December 15 shall become effective the first day of the calendar year following the end of the exemption’s two (2) year effective date. Coverage shall not be reinstated retroactively.

History:

[72-1352A, added 2011, ch. 82, sec. 2, p. 173; am. 2012, ch. 165, sec. 1, p. 446.]