I.R.C. § 3305(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.
I.R.C. § 3305(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.
I.R.C. § 3305(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.
I.R.C. § 3305(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.
I.R.C. § 3305(e) —
[Repealed. Sept. 1, 1954, ch. 1212, 4(c), 68 Stat. 1135]
I.R.C. § 3305(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.
I.R.C. § 3305(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 Transportation
with respect to service performed by officers and members of the crew on or in connection
with American vessels—
I.R.C. § 3305(g)(1) —
owned by or bareboat chartered to the United States, and
I.R.C. § 3305(g)(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.
I.R.C. § 3305(h) Requirement By State Of Contributions —
Any State may, as to service performed on account of which contributions are made
pursuant to subsection (g)—
I.R.C. § 3305(h)(1) —
require contributions from persons performing such service under its unemployment
compensation law or temporary disability insurance law administered in connection
therewith, and
I.R.C. § 3305(h)(2) —
require general agents of the Secretary of Transportation 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.R.C. § 3305(i) General Agent As Legal Entity —
Each general agent of the Secretary of Transportation 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.
I.R.C. § 3305(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).
(Aug. 16, 1954, ch. 736, 68A Stat. 445; Sept. 1, 1954,
ch. 1212, 4(c), 68 Stat. 1135; Sept. 13, 1960, Pub. L. 86-778, title V, 531(a),
(b), 74 Stat. 983; Aug. 10, 1970, Pub. L. 91-373, title I, 123, 84 Stat. 702; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1903(a)(15),
1906(b)(13)(C), 90 Stat. 1809, 1834; Pub. L. 114-92, Div. C, title XXXV, Sec. 3503, Nov. 25, 2015.)
BACKGROUND NOTES
AMENDMENTS
2015—Sec. 3305. Pub. L. 114-92 , Div. C, Sec. 3503, substituted “Secretary of Transportation” for “Secretary of
Commerce” each place it appeared.
1976--Subsec. (g). Pub. L. 94-455, Sec. 1903(a)(15)(A), struck out “on or after July 1, 1953,” after “respect to service
performed”.
Subsec. (h). Pub. L. 94-455, Sec. 1903(a)(15)(B), struck out “on or after July 1, 1953, and” after “as to service
performed”.
Subsec. (j). Pub. L. 94-455, Sec. 1903(a)(15)(C), 1906(b)(13)(C), struck out “after December 31, 1971,” after
“for any taxable year” and substituted
“to the Secretary of the Treasury” for “to the Secretary”.
1970--Subsec. (j). Pub. L. 91-373, Sec. 123, added subsec.
(j).
1960--Subsec. (b). Pub. L. 86-778, Sec. 531(a), substituted
“(other than an instrumentality to which section 3306(c)(6) applies)"
for “except such as are (1) wholly owned by the United States, or
(2) exempt from the tax imposed by section 3301 by virtue of any other provision of
law,” and added cl. (C).
Subsec. (g). Pub. L. 86-778, Sec. 531(b), substituted “neither wholly nor partially” for “not wholly”.
1954--Subsec. (e). Act Sept. 1, 1954, repealed subsec. (e) which related to the Bonneville
Power Administrator.
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Section 3503 of Pub. L. 114-92 effective on the date of the enactment of this Act [Enacted: Nov. 25, 2015].
EFFECTIVE DATE OF 1976 AMENDMENTS
Amendments by Section 1903 of Pub. L. 94-455 effective for compensation paid for services
rendered after December 31, 1976.
Amendment by Section 1906 of Pub. L. 94-455 effective February 1, 1977.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendments by Section 123 of Pub. L. 91-373 effective on the date of the enactment
of this Act [Enacted: Aug. 10, 1970].
EFFECTIVE DATE OF 1960 AMENDMENT
Section 535 of part 3 (531-535) of title V of Pub. L. 86-778 provided that: “The amendments made by this part [enacting section 3308 and amending
sections 3305 and 3306 of this title] (other than the amendments made by subsections
(e) and (f) of section 531 [amending sections 1361 and 1367 of Title 42, The Public
Health and Welfare]) shall apply with respect to remuneration paid after 1961 for
services performed after 1961. The amendments made by subsections (e) and (f) of section
531 shall apply with respect to any week of unemployment which begins after December
31, 1960."
[The second sentence of section 535 was repealed by Pub. L. 89-554, 8(a), Sept. 6, 1966, 80 Stat. 661.]
EFFECTIVE DATE OF 1954 AMENDMENT
Section 4(c) of act Sept. 1, 1954, provided that the amendment made by section 4(c)
of act Sept. 1, 1954, is effective with respect to services performed after Dec. 31,
1954.
APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT BANKS, AND BANKS
FOR COOPERATIVES
Section 531(g) of Pub. L. 86-778, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “Notwithstanding section 203(b)
of the Farm Credit Act of 1959, sections 3305(b), 3306(c)(6), and 3308 of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954], and sections 1501(a) and 1507(a) of the
Social Security Act [sections 1361(a) and 1367 of Title 42, The Public Health and
Welfare] shall be applicable, according to their terms, to the Federal land banks,
Federal intermediate credit banks, and banks for cooperatives.”