CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1272Introduced by Assembly Member GallagherFebruary 17, 2017 An act to amend Section 101 of the Unemployment Insurance Code, relating to unemployment compensation. LEGISLATIVE COUNSEL'S DIGESTAB 1272, as introduced, Gallagher. Unemployment compensation.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unemployment benefits will cease, if the federal law establishing the state credit against the federal payroll tax is repealed or otherwise affected in such a way that all or any part of an employers contributions to the Unemployment Fund are no longer credited against the federal tax.This bill would make nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe 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 it 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 Therefore, when existing federal legislation which that 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in this State, against which all or any part of the employer contributions required under this part may be credited is repealed, amended, interpreted, affected or otherwise changed in such a manner that no portion of such the employers contributions may be thus credited, then upon on 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.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1272Introduced by Assembly Member GallagherFebruary 17, 2017 An act to amend Section 101 of the Unemployment Insurance Code, relating to unemployment compensation. LEGISLATIVE COUNSEL'S DIGESTAB 1272, as introduced, Gallagher. Unemployment compensation.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 employers contributions to the Unemployment Fund are no longer credited against the federal tax.This bill would make nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 1272
Introduced by Assembly Member GallagherFebruary 17, 2017
Introduced by Assembly Member Gallagher
February 17, 2017
An act to amend Section 101 of the Unemployment Insurance Code, relating to unemployment compensation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1272, as introduced, Gallagher. Unemployment compensation.
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 employers contributions to the Unemployment Fund are no longer credited against the federal tax.This bill would make nonsubstantive changes to these provisions.
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 employers contributions to the Unemployment Fund are no longer credited against the federal tax.
This bill would make nonsubstantive changes to these provisions.
## Digest Key
## Bill Text
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 it 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 Therefore, when existing federal legislation which that 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 a manner that no portion of such the employers contributions may be thus credited, then upon on 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.
The people of the State of California do enact as follows:
## 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 it 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 Therefore, when existing federal legislation which that 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 a manner that no portion of such the employers contributions may be thus credited, then upon on 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.
SECTION 1. Section 101 of the Unemployment Insurance Code is amended to read:
### SECTION 1.
101. This part is a part of a national plan of unemployment reserves and social security, and it 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 Therefore, when existing federal legislation which that 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 a manner that no portion of such the employers contributions may be thus credited, then upon on 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.
101. This part is a part of a national plan of unemployment reserves and social security, and it 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 Therefore, when existing federal legislation which that 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 a manner that no portion of such the employers contributions may be thus credited, then upon on 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.
101. This part is a part of a national plan of unemployment reserves and social security, and it 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 Therefore, when existing federal legislation which that 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 a manner that no portion of such the employers contributions may be thus credited, then upon on 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.
101. This part is a part of a national plan of unemployment reserves and social security, and it 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 Therefore, when existing federal legislation which that 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 a manner that no portion of such the employers contributions may be thus credited, then upon on 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.