AB 1695: Unemployment insurance.

(1)Existing law establishes the Joint Enforcement Strike Force on the Underground Economy to combat tax violations and cash-pay employment, and requires the membership of the Strike Force to be composed of representatives of specified state agencies, including representatives from the Office of Criminal Justice Planning. Existing law abolishes the Office of Criminal Justice Planning as of January 1, 2004, and transfers all powers of the former Office of Criminal Justice Planning to the Office of Emergency Services.

This bill would remove the Office of Emergency Services from the membership of the Strike Force.

(2)Existing law establishes the Employment Development Department, within the Labor and Workforce Development Agency, and requires the department to be administered by the Director of Employment Development. Existing law requires an employer to file with the Director of Employment Development a report of unemployment contributions and a report of wages paid to his or her workers within a specified time. Existing law authorizes employers who employ individuals to perform domestic service to file reports of wages by telephone.

Existing law provides it is a violation of the unemployment insurance law for any person to, among other things, procure counsel advice, or coerce anyone to willfully make a false statement or representation, or to knowingly fail to disclose a material fact in order to lower or avoid any contribution or to avoid being or remaining subject to specified provisions of law.

This bill would repeal the authorization for an employer to file reports of wages by telephone. This bill would additionally provide it is a violation for any business entity, as defined, to, among other things, procure counsel advice, or coerce anyone to willfully make a false statement or representation, or to knowingly fail to disclose a material fact in order to lower or avoid any contribution or to avoid being or remaining subject to specified provisions of law. By expanding the application of an existing crime, this bill would impose a state-mandated local program.

(3)Existing law authorizes an additional penalty to be assessed if any person or entity fails to report amounts of paid remuneration for personal services and exempts assessments imposed under specified sections of law from this provision.

This bill would delete that exemption.

(4)This bill would make nonsubstantive changes to various provisions of law relating to unemployment insurance.

(5)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.