Bill Text: CA SB339 | 2015-2016 | Regular Session | Introduced

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Bill Title: Unemployment compensation: payroll tax.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB339 Detail]

Download: California-2015-SB339-Introduced.html

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BILL NUMBER: SB 339	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Gaines

                        FEBRUARY 23, 2015

   An act to amend Section 101 of the Unemployment Insurance Code,
relating to unemployment compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 339, as introduced, Gaines. Unemployment compensation: payroll
tax.
   Existing federal law, the Federal Unemployment Tax Act, levies a
payroll tax on employers and provides a credit against this tax for
contributions made to certified state unemployment compensation
programs. Existing law requires employers to contribute to the
Unemployment Fund for the purpose of funding unemployment benefits
for qualified individuals. Existing law provides that the provisions
requiring employer contributions to the Unemployment Fund will become
inoperative, and the provisions for payment of unemployment benefits
will cease, if the federal law establishing the state credit against
the federal payroll tax is repealed or otherwise affected in such a
way that all or any part of an employer's contributions to the
Unemployment Fund are no longer credited against the federal tax.
   This bill would make technical, nonsubstantive changes to these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 101 of the Unemployment Insurance Code is
amended to read:
   101.  This part is a part of a national plan of unemployment
reserves and social security, and is enacted for the purpose of
assisting in the stabilization of employment conditions. The
imposition of the tax herein imposed upon California industry alone,
without a corresponding tax being imposed upon all industry in the
United States, would, by the corresponding penalty upon California
industry, defeat the  very  purposes of this law as
set forth in this article. Therefore when existing federal
legislation which provides for a tax upon the payment of wages by
employers in this State, against which all or any part of the
employer contributions required under this part may be credited is
repealed, amended, interpreted, affected or otherwise changed in such
manner that no portion of such   the employer's
 contributions may be  thus  credited, then
upon the date of  such   that  change, the
provisions of this part requiring employer contributions and
providing for payment of unemployment compensation benefits shall
cease to be operative and any assets in the Unemployment Fund or
Unemployment Administration Fund shall in the discretion of the State
Treasurer be held in the then existing depositaries or otherwise in
the State Treasury. In the case of the Unemployment Administration
Fund,  such   the  money may 
thereafter  be dealt with by the State Treasurer pursuant to
the conditions of the grant thereof to the State by the United
States Government or agency thereof.