CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1008Introduced by Assembly Member GraysonFebruary 18, 2021 An act to amend Section 650 of the Unemployment Insurance Code, relating to unemployment insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1008, as introduced, Grayson. Unemployment insurance: employee status: definition. Existing law governing unemployment insurance defines employment for those purposes, and exempts from this definition the services performed by certain persons, including various types of brokers or salespersons meeting specified conditions, including that the sale or demonstration of the product takes place in the buyers home. Existing law limits the exemption to sales that take place in other than a retail or wholesale establishment.This bill, among other things, would also exempt from the definition of employment, a seller that sells or demonstrates products in the buyers business. The bill would also specify that certain types of vehicles used to sell specified tools do not qualify as a retail or wholesale establishment for purposes of these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 650 of the Unemployment Insurance Code is amended to read:650. Employment does not include services performed as a real estate, mineral, oil and gas, or cemetery broker or as a real estate, cemetery cemetery, or direct sales salesperson, or a yacht broker or salesman, by an individual if all of the following conditions are met:(a) (1) The individual is licensed under the provisions of Chapter 19 (commencing with Section 9600) 12 (commencing with Section 7600) of Division 3 of, or Part 1 (commencing with Section 10000) of Division 4 of, the Business and Professions Code, Article 2 (commencing with Section 700) of Chapter 5 of Division 3 of the Harbors and Navigation Code, or is engaged in the trade or business of primarily inperson demonstration and sales presentation of consumer of products, including services or other intangibles, in the home or business of the buyer, or sales to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis, for use or resale by the buyer or any other person in the home or otherwise than from a retail or wholesale establishment.(2) For purposes of this subdivision, a bus, a van, or a truck from which the individual seller sells products to its customers, the majority of which consist of tools and equipment used for the repair and maintenance of motorized vehicles, does not qualify as a retail or wholesale establishment.(b) Substantially all of the remuneration (whether or not paid in cash) for products sold or the services performed by that individual is directly related to sales or other output (including the performance of services) rather than to the number of hours worked by that individual.(c) The services performed by the individual are performed pursuant to a written contract between that individual and the person for whom the services are performed and the contract provides that the individual will not be treated as an employee with respect to those sales or services for state tax purposes. CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1008Introduced by Assembly Member GraysonFebruary 18, 2021 An act to amend Section 650 of the Unemployment Insurance Code, relating to unemployment insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1008, as introduced, Grayson. Unemployment insurance: employee status: definition. Existing law governing unemployment insurance defines employment for those purposes, and exempts from this definition the services performed by certain persons, including various types of brokers or salespersons meeting specified conditions, including that the sale or demonstration of the product takes place in the buyers home. Existing law limits the exemption to sales that take place in other than a retail or wholesale establishment.This bill, among other things, would also exempt from the definition of employment, a seller that sells or demonstrates products in the buyers business. The bill would also specify that certain types of vehicles used to sell specified tools do not qualify as a retail or wholesale establishment for purposes of these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1008 Introduced by Assembly Member GraysonFebruary 18, 2021 Introduced by Assembly Member Grayson February 18, 2021 An act to amend Section 650 of the Unemployment Insurance Code, relating to unemployment insurance. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 1008, as introduced, Grayson. Unemployment insurance: employee status: definition. Existing law governing unemployment insurance defines employment for those purposes, and exempts from this definition the services performed by certain persons, including various types of brokers or salespersons meeting specified conditions, including that the sale or demonstration of the product takes place in the buyers home. Existing law limits the exemption to sales that take place in other than a retail or wholesale establishment.This bill, among other things, would also exempt from the definition of employment, a seller that sells or demonstrates products in the buyers business. The bill would also specify that certain types of vehicles used to sell specified tools do not qualify as a retail or wholesale establishment for purposes of these provisions. Existing law governing unemployment insurance defines employment for those purposes, and exempts from this definition the services performed by certain persons, including various types of brokers or salespersons meeting specified conditions, including that the sale or demonstration of the product takes place in the buyers home. Existing law limits the exemption to sales that take place in other than a retail or wholesale establishment. This bill, among other things, would also exempt from the definition of employment, a seller that sells or demonstrates products in the buyers business. The bill would also specify that certain types of vehicles used to sell specified tools do not qualify as a retail or wholesale establishment for purposes of these provisions. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 650 of the Unemployment Insurance Code is amended to read:650. Employment does not include services performed as a real estate, mineral, oil and gas, or cemetery broker or as a real estate, cemetery cemetery, or direct sales salesperson, or a yacht broker or salesman, by an individual if all of the following conditions are met:(a) (1) The individual is licensed under the provisions of Chapter 19 (commencing with Section 9600) 12 (commencing with Section 7600) of Division 3 of, or Part 1 (commencing with Section 10000) of Division 4 of, the Business and Professions Code, Article 2 (commencing with Section 700) of Chapter 5 of Division 3 of the Harbors and Navigation Code, or is engaged in the trade or business of primarily inperson demonstration and sales presentation of consumer of products, including services or other intangibles, in the home or business of the buyer, or sales to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis, for use or resale by the buyer or any other person in the home or otherwise than from a retail or wholesale establishment.(2) For purposes of this subdivision, a bus, a van, or a truck from which the individual seller sells products to its customers, the majority of which consist of tools and equipment used for the repair and maintenance of motorized vehicles, does not qualify as a retail or wholesale establishment.(b) Substantially all of the remuneration (whether or not paid in cash) for products sold or the services performed by that individual is directly related to sales or other output (including the performance of services) rather than to the number of hours worked by that individual.(c) The services performed by the individual are performed pursuant to a written contract between that individual and the person for whom the services are performed and the contract provides that the individual will not be treated as an employee with respect to those sales or services for state tax purposes. 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 650 of the Unemployment Insurance Code is amended to read:650. Employment does not include services performed as a real estate, mineral, oil and gas, or cemetery broker or as a real estate, cemetery cemetery, or direct sales salesperson, or a yacht broker or salesman, by an individual if all of the following conditions are met:(a) (1) The individual is licensed under the provisions of Chapter 19 (commencing with Section 9600) 12 (commencing with Section 7600) of Division 3 of, or Part 1 (commencing with Section 10000) of Division 4 of, the Business and Professions Code, Article 2 (commencing with Section 700) of Chapter 5 of Division 3 of the Harbors and Navigation Code, or is engaged in the trade or business of primarily inperson demonstration and sales presentation of consumer of products, including services or other intangibles, in the home or business of the buyer, or sales to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis, for use or resale by the buyer or any other person in the home or otherwise than from a retail or wholesale establishment.(2) For purposes of this subdivision, a bus, a van, or a truck from which the individual seller sells products to its customers, the majority of which consist of tools and equipment used for the repair and maintenance of motorized vehicles, does not qualify as a retail or wholesale establishment.(b) Substantially all of the remuneration (whether or not paid in cash) for products sold or the services performed by that individual is directly related to sales or other output (including the performance of services) rather than to the number of hours worked by that individual.(c) The services performed by the individual are performed pursuant to a written contract between that individual and the person for whom the services are performed and the contract provides that the individual will not be treated as an employee with respect to those sales or services for state tax purposes. SECTION 1. Section 650 of the Unemployment Insurance Code is amended to read: ### SECTION 1. 650. Employment does not include services performed as a real estate, mineral, oil and gas, or cemetery broker or as a real estate, cemetery cemetery, or direct sales salesperson, or a yacht broker or salesman, by an individual if all of the following conditions are met:(a) (1) The individual is licensed under the provisions of Chapter 19 (commencing with Section 9600) 12 (commencing with Section 7600) of Division 3 of, or Part 1 (commencing with Section 10000) of Division 4 of, the Business and Professions Code, Article 2 (commencing with Section 700) of Chapter 5 of Division 3 of the Harbors and Navigation Code, or is engaged in the trade or business of primarily inperson demonstration and sales presentation of consumer of products, including services or other intangibles, in the home or business of the buyer, or sales to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis, for use or resale by the buyer or any other person in the home or otherwise than from a retail or wholesale establishment.(2) For purposes of this subdivision, a bus, a van, or a truck from which the individual seller sells products to its customers, the majority of which consist of tools and equipment used for the repair and maintenance of motorized vehicles, does not qualify as a retail or wholesale establishment.(b) Substantially all of the remuneration (whether or not paid in cash) for products sold or the services performed by that individual is directly related to sales or other output (including the performance of services) rather than to the number of hours worked by that individual.(c) The services performed by the individual are performed pursuant to a written contract between that individual and the person for whom the services are performed and the contract provides that the individual will not be treated as an employee with respect to those sales or services for state tax purposes. 650. Employment does not include services performed as a real estate, mineral, oil and gas, or cemetery broker or as a real estate, cemetery cemetery, or direct sales salesperson, or a yacht broker or salesman, by an individual if all of the following conditions are met:(a) (1) The individual is licensed under the provisions of Chapter 19 (commencing with Section 9600) 12 (commencing with Section 7600) of Division 3 of, or Part 1 (commencing with Section 10000) of Division 4 of, the Business and Professions Code, Article 2 (commencing with Section 700) of Chapter 5 of Division 3 of the Harbors and Navigation Code, or is engaged in the trade or business of primarily inperson demonstration and sales presentation of consumer of products, including services or other intangibles, in the home or business of the buyer, or sales to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis, for use or resale by the buyer or any other person in the home or otherwise than from a retail or wholesale establishment.(2) For purposes of this subdivision, a bus, a van, or a truck from which the individual seller sells products to its customers, the majority of which consist of tools and equipment used for the repair and maintenance of motorized vehicles, does not qualify as a retail or wholesale establishment.(b) Substantially all of the remuneration (whether or not paid in cash) for products sold or the services performed by that individual is directly related to sales or other output (including the performance of services) rather than to the number of hours worked by that individual.(c) The services performed by the individual are performed pursuant to a written contract between that individual and the person for whom the services are performed and the contract provides that the individual will not be treated as an employee with respect to those sales or services for state tax purposes. 650. Employment does not include services performed as a real estate, mineral, oil and gas, or cemetery broker or as a real estate, cemetery cemetery, or direct sales salesperson, or a yacht broker or salesman, by an individual if all of the following conditions are met:(a) (1) The individual is licensed under the provisions of Chapter 19 (commencing with Section 9600) 12 (commencing with Section 7600) of Division 3 of, or Part 1 (commencing with Section 10000) of Division 4 of, the Business and Professions Code, Article 2 (commencing with Section 700) of Chapter 5 of Division 3 of the Harbors and Navigation Code, or is engaged in the trade or business of primarily inperson demonstration and sales presentation of consumer of products, including services or other intangibles, in the home or business of the buyer, or sales to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis, for use or resale by the buyer or any other person in the home or otherwise than from a retail or wholesale establishment.(2) For purposes of this subdivision, a bus, a van, or a truck from which the individual seller sells products to its customers, the majority of which consist of tools and equipment used for the repair and maintenance of motorized vehicles, does not qualify as a retail or wholesale establishment.(b) Substantially all of the remuneration (whether or not paid in cash) for products sold or the services performed by that individual is directly related to sales or other output (including the performance of services) rather than to the number of hours worked by that individual.(c) The services performed by the individual are performed pursuant to a written contract between that individual and the person for whom the services are performed and the contract provides that the individual will not be treated as an employee with respect to those sales or services for state tax purposes. 650. Employment does not include services performed as a real estate, mineral, oil and gas, or cemetery broker or as a real estate, cemetery cemetery, or direct sales salesperson, or a yacht broker or salesman, by an individual if all of the following conditions are met: (a) (1) The individual is licensed under the provisions of Chapter 19 (commencing with Section 9600) 12 (commencing with Section 7600) of Division 3 of, or Part 1 (commencing with Section 10000) of Division 4 of, the Business and Professions Code, Article 2 (commencing with Section 700) of Chapter 5 of Division 3 of the Harbors and Navigation Code, or is engaged in the trade or business of primarily inperson demonstration and sales presentation of consumer of products, including services or other intangibles, in the home or business of the buyer, or sales to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis, for use or resale by the buyer or any other person in the home or otherwise than from a retail or wholesale establishment. (2) For purposes of this subdivision, a bus, a van, or a truck from which the individual seller sells products to its customers, the majority of which consist of tools and equipment used for the repair and maintenance of motorized vehicles, does not qualify as a retail or wholesale establishment. (b) Substantially all of the remuneration (whether or not paid in cash) for products sold or the services performed by that individual is directly related to sales or other output (including the performance of services) rather than to the number of hours worked by that individual. (c) The services performed by the individual are performed pursuant to a written contract between that individual and the person for whom the services are performed and the contract provides that the individual will not be treated as an employee with respect to those sales or services for state tax purposes.