Existing law establishes the Employment Development Department, administered by the Director of Employment Development who is vested with certain duties relating to unemployment compensation. Existing unemployment insurance law requires any employing unit that is a motion picture payroll services company, as defined, to be treated as an employer of a motion picture production worker, as defined, and to file a statement of intent with the Employment Development Department. Existing law makes specified violations of unemployment insurance law a misdemeanor. This bill would specify that a loan-out company is the employer of its employee-owners or members who are engaged to provide services to a motion picture production company or to an allied motion picture services company for purposes of remitting employment taxes and related obligations, as specified. The bill would prohibit a loan-out company or an individual whose services are provided by a loan-out company from being considered an employee of a motion picture payroll services company. The bill would require a motion picture payroll services company to file a quarterly report with the Director of Employment Development relating to payments made to a loan-out company, as specified. The bill would define "loan-out company" for these purposes. By expanding the scope of an existing crime, this bill would impose a state-mandated local program. 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.