II

105TH CONGRESS

1ST SESSION S. 1123

To amend the Internal Revenue Code of 1986 relating to the unemployment

tax for individuals employed in the entertainment industry.

IN THE SENATE OF THE UNITED STATES

JULY 31, 1997

Mr. HATCH (for himself, Mr. BAUCUS, Mr. D’AMATO, and Mrs. BOXER) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 relating to

the unemployment tax for individuals employed in the

entertainment industry.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. INDIVIDUALS EMPLOYED IN ENTERTAINMENT

4 INDUSTRY.

5 (a) IN GENERAL.—Section 3304(a)(15) of the Inter6 nal Revenue Code of 1986 (relating to reductions in tax)

7 is amended—

8 (1) by striking ‘‘and’’ at the end of subpara9 graph (A),
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1 (2) by striking the period at the end of sub2 paragraph (B) and inserting ‘‘; and’’, and

3 (3) by adding at the end the following:

4 ‘‘(C) in the case of a pension, retirement

5 or retired pay, annuity, or other similar periodic

6 payment under an entertainment industry plan

7 contributed to by an employer—

8 ‘‘(i) such a reduction shall not be re9 quired by reason of such a payment un10 less—

11 ‘‘(I) such individual worked for

12 such employer before the base period,

13 and

14 ‘‘(II) such employer contributed

15 to such plan on account of such indi16 vidual’s work for such employer before

17 the base period, and

18 ‘‘(ii) subject to subparagraph (B),

19 such reduction shall not exceed the amount

20 (if any) of the increase referred to in sub21 paragraph (A)(ii) in such payment which is

22 attributable to services performed by such

23 individual for such employer;’’.
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1 (b) ENTERTAINMENT INDUSTRY PLAN AND EM2 PLOYER.—Section 3304 of such Code is amended by add3 ing at the end the following new subsection:

4 ‘‘(g) ENTERTAINMENT INDUSTRY PLANS AND EM5 PLOYERS.—For purposes of subsection (a)(15)(C)—

6 ‘‘(1) ENTERTAINMENT INDUSTRY PLAN.—The

7 term ‘entertainment industry plan’ means any multi8 employer plan substantially all of the contributions

9 to which are made by entertainment industry em10 ployers.

11 ‘‘(2) ENTERTAINMENT INDUSTRY EMPLOYER.—

12 The term ‘entertainment industry employer’ means

13 any employer substantially all of the trades or busi14 nesses of which consists of either or both—

15 ‘‘(A) radio or television broadcasting, and

16 ‘‘(B) the production or distribution of vis17 ual images or sound on—

18 ‘‘(i) video or audiotape,

19 ‘‘(ii) film, or

20 ‘‘(iii) computer-generated or other vis21 ual or audio media,

22 for public dissemination (whether for entertainment,

23 informational, commercial, educational, religious, or

24 other purposes).’’

25 (c) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—The amendments made by

2 this section shall apply to weeks beginning after De3 cember 31, 1997.

4 (2) SPECIAL RULE.—In the case of any State

5 the legislature of which has not been in session for

6 at least 30 calendar days (whether or not successive)

7 between the date of the enactment of this Act and

8 December 31, 1997, the amendments made by this

9 section shall apply to weeks beginning after the date

10 which is 30 calendar days after the first day on

11 which such legislature is in session on or after De12 cember 31, 1997.

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