26 U.S.C. § 3305 : US Code - Section 3305: Applicability of State law

Search 26 U.S.C. § 3305 : US Code - Section 3305: Applicability of State law

(a) Interstate and foreign commerce
No person required under a State law to make payments to an
unemployment fund shall be relieved from compliance therewith on
the ground that he is engaged in interstate or foreign commerce, or
that the State law does not distinguish between employees engaged
in interstate or foreign commerce and those engaged in intrastate
commerce.
(b) Federal instrumentalities in general
The legislature of any State may require any instrumentality of
the United States (other than an instrumentality to which section
3306(c)(6) applies), and the individuals in its employ, to make
contributions to an unemployment fund under a State unemployment
compensation law approved by the Secretary of Labor under section
3304 and (except as provided in section 5240 of the Revised
Statutes, as amended (12 U.S.C., sec. 484), and as modified by
subsection (c)), to comply otherwise with such law. The permission
granted in this subsection shall apply (A) only to the extent that
no discrimination is made against such instrumentality, so that if
the rate of contribution is uniform upon all other persons subject
to such law on account of having individuals in their employ, and
upon all employees of such persons, respectively, the contributions
required of such instrumentality or the individuals in its employ
shall not be at a greater rate than is required of such other
persons and such employees, and if the rates are determined
separately for different persons or classes of persons having
individuals in their employ or for different classes of employees,
the determination shall be based solely upon unemployment
experience and other factors bearing a direct relation to
unemployment risk; (B) only if such State law makes provision for
the refund of any contributions required under such law from an
instrumentality of the United States or its employees for any year
in the event such State is not certified by the Secretary of Labor
under section 3304 with respect to such year; and (C) only if such
State law makes provision for the payment of unemployment
compensation to any employee of any such instrumentality of the
United States in the same amount, on the same terms, and subject to
the same conditions as unemployment compensation is payable to
employees of other employers under the State unemployment
compensation law.
(c) National banks
Nothing contained in section 5240 of the Revised Statutes, as
amended (12 U.S.C. 484), shall prevent any State from requiring any
national banking association to render returns and reports relative
to the association's employees, their remuneration and services, to
the same extent that other persons are required to render like
returns and reports under a State law requiring contributions to an
unemployment fund. The Comptroller of the Currency shall, upon
receipt of a copy of any such return or report of a national
banking association from, and upon request of, any duly authorized
official, body, or commission of a State, cause an examination of
the correctness of such return or report to be made at the time of
the next succeeding examination of such association, and shall
thereupon transmit to such official, body, or commission a complete
statement of his findings respecting the accuracy of such returns
or reports.
(d) Federal property
No person shall be relieved from compliance with a State
unemployment compensation law on the ground that services were
performed on land or premises owned, held, or possessed by the
United States, and any State shall have full jurisdiction and power
to enforce the provisions of such law to the same extent and with
the same effect as though such place were not owned, held, or
possessed by the United States.
[(e) Repealed. Sept. 1, 1954, ch. 1212, Sec. 4(c), 68 Stat. 1135]
(f) American vessels
The legislature of any State in which a person maintains the
operating office, from which the operations of an American vessel
operating on navigable waters within or within and without the
United States are ordinarily and regularly supervised, managed,
directed and controlled, may require such person and the officers
and members of the crew of such vessel to make contributions to its
unemployment fund under its State unemployment compensation law
approved by the Secretary of Labor under section 3304 and otherwise
to comply with its unemployment compensation law with respect to
the service performed by an officer or member of the crew on or in
connection with such vessel to the same extent and with the same
effect as though such service was performed entirely within such
State. Such person and the officers and members of the crew of such
vessel shall not be required to make contributions, with respect to
such service, to the unemployment fund of any other State. The
permission granted by this subsection is subject to the condition
that such service shall be treated, for purposes of wage credits
given employees, like other service subject to such State
unemployment compensation law performed for such person in such
State, and also subject to the same limitation, with respect to
contributions required from such person and from the officers and
members of the crew of such vessel, as is imposed by the second
sentence (other than clause (B) thereof) of subsection (b) with
respect to contributions required from instrumentalities of the
United States and from individuals in their employ.
(g) Vessels operated by general agents of United States
The permission granted by subsection (f) shall apply in the same
manner and under the same conditions (including the obligation to
comply with all requirements of State unemployment compensation
laws) to general agents of the Secretary of Commerce with respect
to service performed by officers and members of the crew on or in
connection with American vessels -
(1) owned by or bareboat chartered to the United States, and
(2) whose business is conducted by such general agents.
As to any such vessel, the State permitted to require contributions
on account of such service shall be the State to which the general
agent would make contributions if the vessel were operated for his
own account. Such general agents are designated, for this purpose,
instrumentalities of the United States neither wholly nor partially
owned by it and shall not be exempt from the tax imposed by section
3301. The permission granted by this subsection is subject to the
same conditions and limitations as are imposed in subsection (f),
except that clause (B) of the second sentence of subsection (b)
shall apply.
(h) Requirement by State of contributions
Any State may, as to service performed on account of which
contributions are made pursuant to subsection (g) -
(1) require contributions from persons performing such service
under its unemployment compensation law or temporary disability
insurance law administered in connection therewith, and
(2) require general agents of the Secretary of Commerce to make
contributions under such temporary disability insurance law and
to make such deductions from wages or remuneration as are
required by such unemployment compensation or temporary
disability insurance law.
(i) General agent as legal entity
Each general agent of the Secretary of Commerce making
contributions pursuant to subsection (g) or (h) shall, for purposes
of such subsections, be considered a legal entity in his capacity
as an instrumentality of the United States, separate and distinct
from his identity as a person employing individuals on his own
account.
(j) Denial of credits in certain cases
Any person required, pursuant to the permission granted by this
section, to make contributions to an unemployment fund under a
State unemployment compensation law approved by the Secretary of
Labor under section 3304 shall not be entitled to the credits
permitted, with respect to the unemployment compensation law of a
State, by subsections (a) and (b) of section 3302 against the tax
imposed by section 3301 for any taxable year if, on October 31 of
such taxable year, the Secretary of Labor certifies to the
Secretary of the Treasury his finding, after reasonable notice and
opportunity for hearing to the State agency, that the unemployment
compensation law of such State is inconsistent with any one or more
of the conditions on the basis of which such permission is granted
or that, in the application of the State law with respect to the 12-
month period ending on such October 31, there has been a
substantial failure to comply with any one or more of such
conditions. For purposes of section 3310, a finding of the
Secretary of Labor under this subsection shall be treated as a
finding under section 3304(c).