Bill Text: CA AB2577 | 2009-2010 | Regular Session | Introduced

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Bill Title: Employment: taxes and contributions: aerospace industry.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-04-21 - In committee: Set, second hearing. Hearing canceled at the request of author. [AB2577 Detail]

Download: California-2009-AB2577-Introduced.html

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BILL NUMBER: AB 2577	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Knight

                        FEBRUARY 19, 2010

   An act to add Section 13004.2 to the Unemployment Insurance Code,
relating to employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2577, as introduced, Knight. Employment: taxes and
contributions: aerospace industry.
   Existing law requires employers to make specified payments and
withholdings from wages paid for employment. Existing law requires
that employer payments and withholdings be paid to the Employment
Development Department. Existing law excludes certain services,
including sales presentations of services and other intangibles in
the home, from those employer payments and withholdings.
   This bill would also exclude from those employer payments and
withholdings the services performed by a nonresident who is working
temporarily in this state for no more than 120 days and is employed
in the aerospace industry, as defined.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 13004.2 is added to the Unemployment Insurance
Code, to read:
   13004.2.  (a) "Employee" does not include an individual if all of
the following conditions exist:
   (1) The individual is a nonresident who is working temporarily in
this state for no more than 120 days in any 12-month period and is
employed in the aerospace industry.
   (2) Substantially all of the remuneration, whether or not paid in
cash, for the services performed by that individual are for services
directly related to the aerospace industry.
   (3) The services performed by the individual are performed
pursuant to a written employment contract that provides that the
individual will not be treated as an employee with respect to those
services for state income tax purposes.
   (b) For purposes of this section, "aerospace industry" means
businesses primarily engaged in one or more of the following:
   (1) Manufacturing complete aircraft, missiles, or space vehicles.
   (2) Manufacturing aerospace engines, propulsion units, auxiliary
equipment, or parts.
   (3) Developing and making prototypes of aerospace products.
   (4) Aircraft conversion, by which major modifications are made to
aircraft systems.
   (5) Complete aircraft or propulsion systems overhaul and
rebuilding, including, but not limited to, periodic restoration of
aircraft to original design specifications.