California Unemployment Insurance Code

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1.  This act is known and may be cited as the Unemployment Insurance
Code.


2.  The provisions of this code insofar as they are substantially
the same as existing statutory provisions relating to the same
subject matter shall be construed as restatements and continuations,
and not as new enactments.


3.  Any action or proceeding commenced before this code takes
effect, or any right accrued, is not affected by this code, but all
procedure taken shall conform to the provisions of this code as far
as possible.


4.  Unless the context otherwise requires, the general provisions
hereinafter set forth govern the construction of this code.



5.  Division, part, chapter, article, and section headings do not in
any manner affect the scope, meaning, or intent of the provisions of
this code.


6.  Whenever a power is granted to, or a duty imposed on any person
or board by any provision of this code, it may be exercised or
performed by any deputy or person authorized by the person or board
to whom the power is granted or on whom the duty is imposed, unless
it is expressly provided that the power or duty shall be exercised or
performed only by the person or board to whom the power is granted
or on whom the duty is imposed.



7.  Whenever any reference is made to any portion of this code or of
any other law, the reference applies to all amendments and additions
thereto, now or hereafter made.



8.  "Writing" includes any form of recorded message capable of
comprehension by ordinary visual means. Whenever any notice, report,
petition, permit, statement, or record is required by this code, it
shall be made in writing in the English language.




9.  "Section" means a section of this code unless some other statute
is specifically mentioned, and "subdivision" means a subdivision of
the section in which the term occurs unless some other section is
expressly mentioned.


10.  The present tense includes the past and future tenses; and the
future, the present.



11.  The masculine gender includes the feminine and neuter.



12.  The singular number includes the plural and the plural the
singular.


13.  "City" includes incorporated city, city and county, municipal
corporation, municipality, town and incorporated town.



14.  "County" includes city and county.



15.  "Shall" is mandatory and "may" is permissive.



16.  "Oath" includes affirmation and written certification or
declaration subscribed to be true under penalty of perjury.



17.  "Signature" or "subscription" includes mark. The mark shall be
made as required in the Civil Code.



18.  If any provision of this code, or its application to any person
or circumstance is held invalid, the remainder of the code, or the
application of the provision to other persons or circumstances is not
affected.


19.  All persons who, at the time this code goes into effect, hold
office under any of the acts repealed by this code, which offices are
continued by this code, continue to hold them according to their
former tenure.


20.  Whenever any reference is made to any person, officer, board,
or agency by any provision of this code, the reference applies to any
other person, officer, board, or agency to whom the functions vested
in the person, officer, board, or agency referred to are
transferred.



21.  The Legislature hereby declares its intent that the term
"workmen's compensation" shall hereafter also be known as "workers'
compensation." In furtherance of this policy it is the desire of the
Legislature that references to the term "workmen's compensation" in
this code be changed to "workers' compensation" when such code
sections are being amended for any purpose. This act is declaratory
and not amendatory of existing law.

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100.  As a guide to the interpretation and application of this
division the public policy of this State is declared as follows:
   Experience has shown that large numbers of the population of
California do not enjoy permanent employment by reason of which their
purchasing power is unstable. This is detrimental to the interests
of the people of California as a whole.
   The benefit to all persons resulting from public and private
enterprise is realized in the final consumption of goods and
services. It is contrary to public policy to permit the supply of
consumption goods and services at prices which do not provide against
that harm to the population consequent upon periods of unemployment
of those who contribute to the production and distribution of such
goods and services.
   Experience has shown that private charity and local relief cannot
alone prevent the effects of unemployment. Experience has shown that
if the State awaits the coming of excessive unemployment it can
neither create immediately the organization necessary to orderly,
economical and effective relief nor bear the financial burden of
relief without disrupting its whole system of ordinary revenues and
without jeopardizing its credit.
   The Legislature therefore declares that in its considered judgment
the public good and the general welfare of the citizens of the State
require the enactment of this measure under the police power of the
State, for the compulsory setting aside of funds to be used for a
system of unemployment insurance providing benefits for persons
unemployed through no fault of their own, and to reduce involuntary
unemployment and the suffering caused thereby to a minimum.
   It is the intent of the Legislature that unemployed persons
claiming unemployment insurance benefits shall be required to make
all reasonable effort to secure employment on their own behalf.



101.  This part is a part of a national plan of unemployment
reserves and social security, and is enacted for the purpose of
assisting in the stabilization of employment conditions. The
imposition of the tax herein imposed upon California industry alone,
without a corresponding tax being imposed upon all industry in the
United States, would, by the corresponding penalty upon California
industry, defeat the very purposes of this law as set forth in this
article. Therefore when existing federal legislation which provides
for a tax upon the payment of wages by employers in this State,
against which all or any part of the employer contributions required
under this part may be credited is repealed, amended, interpreted,
affected or otherwise changed in such manner that no portion of such
contributions may be thus credited, then upon the date of such
change, the provisions of this part requiring employer contributions
and providing for payment of unemployment compensation benefits shall
cease to be operative and any assets in the Unemployment Fund or
Unemployment Administration Fund shall in the discretion of the State
Treasurer be held in the then existing depositaries or otherwise in
the State Treasury. In the case of the Unemployment Administration
Fund, such money may thereafter be dealt with by the State Treasurer
pursuant to the conditions of the grant thereof to the State by the
United States Government or agency thereof.



102.  All the rights, privileges or immunities conferred by this
division or by acts deemed pursuant thereto shall exist subject to
the power of the Legislature to amend or repeal this division at any
time.

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125.  Except where the context otherwise clearly indicates, the
definitions set forth in this article shall govern the construction
of the provisions of this division.



125.3.  "American aircraft" means an aircraft registered under the
laws of the United States.



125.4.  "American employer" means any of the following:
   (a) An individual who is a resident of the United States.
   (b) A partnership, if two-thirds or more of the partners are
residents of the United States.
   (c) A trust, if all of the trustees are residents of the United
States.
   (d) A corporation organized under the laws of the United States or
of any state.
   (e) A limited liability company organized under the laws of the
United States or of any state.
   (f) Any Indian tribe as described by subsection (u) of Section
3306 of Title 26 of the United States Code.



125.5.  "American vessel" means any vessel documented or numbered
under the laws of the United States, and includes any vessel which is
neither documented or numbered under the laws of the United States
nor documented under the laws of any foreign country, if its crew is
employed solely by one or more citizens or residents of the United
States or corporations organized under the laws of the United States
or of any state.



126.  "Appeals Board" means the California Unemployment Insurance
Appeals Board.



127.  "Authorized regulations" means regulations promulgated
pursuant to the provisions of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code, as
modified by the provisions of this division, and "regulation"
includes the amendment or repeal of a regulation.



128.  "Benefits" means the money payments payable to an individual,
pursuant to this division, with respect to his unemployment and
includes unemployment compensation benefits, federal-state extended
benefits, or extended duration benefits, or disability benefits, or
all of them.



129.  "Calendar quarter" means the period of three consecutive
calendar months ending on March 31st, June 30th, September 30th, or
December 31st, or the equivalent thereof as may be prescribed by
authorized regulations.


130.  "Contingent fund" means the Department of Employment
Development Contingent Fund.



130.5.  "Benefit Audit Fund" means the Employment Development
Department Benefit Audit Fund.



131.  "Contributions" means the money payments to the Unemployment
Fund, Employment Training Fund, or Unemployment Compensation
Disability Fund which are required by this division.



133.  Except as otherwise provided, "department" means the
Employment Development Department, which also may be referred to as
the Department of Employment Development.



133.5.  "Department of Benefit Payments" or "State Department of
Benefit Payments" shall be construed to refer to and mean the
Employment Development Department.



134.  Except as otherwise provided, "director" means the Director of
Employment Development.



134.1.  "Director of Benefit Payments" shall be construed to refer
to and mean Director of Employment Development.



134.5.  "Disability fund" means the "Unemployment Compensation
Disability Fund."



135.  (a) "Employing unit" means any individual or type of
organization that has in its employ one or more individuals
performing services for it within this state, and includes but is not
limited to, the following individuals and organizations:
   (1) Any individual or type of organization or public entity that
elects coverage pursuant to any provision of this division.
   (2) Any joint venture, partnership, association, trust, estate,
joint stock company, insurance company, corporation whether domestic
or foreign, limited liability company, whether domestic or foreign,
community chest, fund, or foundation.
   (3) Any public entity. As used in this section, "public entity"
means the State of California (including the Trustees of the
California State University), any instrumentality of this state
(including the Regents of the University of California), any
political subdivision of this state or any of its instrumentalities,
a county, city, district (including the governing board of any school
district or community college district, any county board of
education, any county superintendent of schools, or any personnel
commission of a school district or community college district that
has a merit system pursuant to any provision of the Education Code),
entities receiving state money to conduct county fairs and
agricultural fairs pursuant to Sections 25905 and 25906 of the
Government Code and that perform no other functions, any public
authority, public agency, or public corporation of this state, any
instrumentality of more than one of the foregoing, and any
instrumentality of any of the foregoing and one or more other states
or political subdivisions.
   (4) Any instrumentality of the United States required to make
payments under this division.
   (5) The receiver, trustee in bankruptcy, trustee or successor
thereof, and the legal representative of a deceased person.
   (6) Any Indian tribe as described by subsection (u) of Section
3306 of Title 26 of the United States Code.
   (b) All individuals performing services within this state for any
employing unit that maintains two or more separate establishments
within this state shall be deemed to be employed by a single
employing unit for all the purposes of this division. This
subdivision does not apply to any Indian tribe (as described by
subsection (u) of Section 3306 of Title 26 of the United States Code)
and the subdivisions, subsidiaries, or other business enterprises
wholly owned by the Indian tribe if the tribe chooses to treat those
subdivisions, subsidiaries, or other business enterprises as separate
business entities for the purposes of Section 803.




135.1.  (a) A new employing unit shall not be created when there is
an acquisition or change in the form or organization of an existing
business enterprise, or severable portion thereof, and there is a
continuity of control of the business enterprise.
   (b) Control of a business enterprise may occur by means of
ownership of the organization conducting the business enterprise,
ownership of assets necessary to conduct the business enterprise,
security arrangements or lease arrangements covering assets necessary
to conduct the business enterprise, or a contract when the
ownership, stated arrangements or contract provide for or allow
direction of the internal affairs or conduct of the business
enterprise.
   (c) A continuity of control will exist if one or more persons,
entities, or other organizations controlling the business enterprise
remains in control of the business enterprise after an acquisition or
change in form. Evidence of continuity of control shall include, but
not be limited to, changes of an individual proprietorship to a
corporation, partnership, limited liability company, association, or
estate; a partnership to an individual proprietorship, corporation,
limited liability company, association, estate, or the addition,
deletion, or change of partners; a limited liability company to an
individual proprietorship, partnership, corporation, association,
estate, or to another limited liability company; a corporation to an
individual proprietorship partnership, limited liability company,
association, estate, or to another corporation or from any form to
another form.
   (d) An employing unit described in subdivision (a) shall continue
to be the same employer for the purposes of this code as before the
acquisition or change in form.
   (e) This section shall not modify the provisions of Article 2
(commencing with Section 1731) of Chapter 7.
   (f) This section shall be subject to subdivision (e) of Section
982 and subdivision (d) of Section 1127.5.



135.2.  (a) If two or more business enterprises are united by
factors of control, operation, and use, the director may determine
that the business enterprises are one employing unit.
   (1) Control of a business enterprise shall include, but not be
limited to, ownership of a majority interest in an organization,
ownership of the assets used to conduct the business enterprise of
the organization, security arrangements or lease arrangements
regarding the assets used to conduct the business enterprise of the
organization, or contract when the ownership, stated arrangements, or
contract provide for or allow operation of the business enterprise.
   (2) Operation of the business enterprise, includes, but is not
limited to, management, personnel policies, operating procedures,
pricing, collections, and financing of the business enterprise.
   (3) Control of two or more business enterprises shall be united if
the majority interest in, or control of, each organization is in one
individual, entity, association, or other organization.
   (4) Unity of operation is evidenced by central financing,
accounting, and management of each business enterprise which
includes, but is not limited to, common management, personnel
policies, operating procedures, pricing, collections, and financing.
   (5) The use of two or more business enterprises shall be united if
they share a general system of operation and the enterprises are
organized for common purposes, and each is coordinated with, or is a
part of, the entire operation.
   (b) This section shall be subject to subdivision (e) of Section
982 and subdivision (d) of Section 1127.5.



136.  "Federal Unemployment Tax Act" means Chapter 23 of Subtitle C
of the Internal Revenue Code of 1954, or the corresponding provisions
of any other federal act into which such provisions may hereafter be
incorporated.


137.  "Public employment office" means a free public employment
office or branch thereof operated by this State or maintained as a
part of a state-controlled system of public employment offices.



139.  "State" includes the Commonwealth of Puerto Rico, the Virgin
Islands, and the District of Columbia, as well as each of the states
of the United States.


140.  "Unemployment compensation benefits" refers to benefits
payable under Part 1 of this division.



140.5.  "Unemployment compensation disability benefits" or
"disability benefits" refers to money payments payable under Part 2
(commencing with Section 2601) to either of the following:
   (a) An eligible unemployed individual with respect to his or her
wage losses due to unemployment as a result of illness or other
disability, resulting in that individual being unavailable or unable
to work.
   (b) An eligible individual with respect to his or her wage losses
who is unable to work due to caring for a seriously ill or injured
family member or bonding with a minor child within one year of the
birth or placement of the child in connection with foster care or
adoption.



141.  "Unemployment insurance" wherever it appears in this division
means "unemployment compensation."



142.  "Unemployment Trust Fund" means the Unemployment Trust Fund
established and maintained pursuant to Section 904 of the Federal
Social Security Act as amended.



142.5.  "United States" includes the states, the District of
Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands. An
individual who is a citizen of the Commonwealth of Puerto Rico or
the Virgin Islands (but not otherwise a citizen of the United States)
shall be considered as a citizen of the United States.




143.  "Week" means a period of seven consecutive days as prescribed
by authorized regulation. Such regulation may prescribe that a week
shall be deemed to be "in," "within," or "during" that benefit year
which includes the greater part of such week.



144.  "Worker contributions," "contributions by workers," "employee
contributions," or "contributions by employees" mean contributions to
the Disability Fund.

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301.  There is in the Labor and Workforce Development Agency the
Employment Development Department, which is vested with the duties,
purposes, responsibilities, and jurisdiction heretofore exercised by
the State Department of Benefit Payments or the California Health and
Human Services Agency with respect to job creation activities. The
Employment Development Department shall be administered by an
executive officer known as the Director of Employment Development who
is vested with the duties, purposes, responsibilities, and
jurisdiction heretofore exercised by the Director of Benefit Payments
with respect to the following functions:
   (a) Job creation activities.
   (b) Making manual computations and making or denying
recomputations of the amount and duration of benefits.
   (c) Determination of contribution rates and the administration and
collection of contributions, penalties and interest, including but
not limited to filing and releasing liens.
   (d) Establishment, administration, and transfer of reserve
accounts.
   (e) Making assessments and the administration of credits and
refunds.
   (f) Approving elections for coverage or for financing unemployment
and disability insurance coverage.



301.6.  The Employment Development Department shall have the
possession and control of all records, papers, offices, equipment,
supplies, moneys, appropriations, land, and other property real or
personal held for the benefit or use of the State Department of
Benefit Payments in the performance of the duties, powers, purposes,
responsibilities, and jurisdiction that are vested in the Employment
Development Department by Section 301.



301.7.  All officers and employees of the State Department of
Benefit Payments who, on the operative date of the statute amending
this section at the 1977 portion of the 1977-78 Regular Session of
the Legislature, are serving in the state civil service, other than
as temporary employees, and engaged in the performance of a function
vested in the Employment Development Department by Section 301 shall
be transferred to the Employment Development Department. The status,
positions, and rights of such persons shall not be affected by the
transfer and shall be retained by them as officers and employees of
the Employment Development Department pursuant to the State Civil
Service Act, except as to positions exempt from civil service.




302.  The Director of Employment Development shall be appointed by
the Governor, subject to the approval of the Senate, and shall serve
as director at the pleasure of the Governor. The annual salary of the
Director of Employment Development shall be as provided for by
Chapter 6 of Part 1 of Division 3 of Title 2 of the Government Code.




303.  There shall be five deputy directors in the Employment
Development Department who shall be appointed by the Governor subject
to the approval of the Senate and shall hold office at the pleasure
of the Governor. The salary of the deputy directors shall be fixed in
accordance with law.



304.  Whenever a reference to this division is made in this article
it shall also include all other divisions of this code.



305.  Regulations for the administration of the functions of the
Employment Development Department under this code shall be adopted,
amended, or repealed by the Director of Employment Development as
provided in Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.



305.5.  All regulations heretofore adopted by the Director of the
Department of Human Resources Development shall remain in effect and
shall be fully enforceable unless and until readopted, amended or
repealed by the Director of Employment Development.




305.6.  All regulations heretofore adopted by the Director of
Benefit Payments pursuant to this code and in effect immediately
preceding the operative date of the amendment of this section enacted
by the Legislature during the 1977-78 Regular Session, shall remain
in effect and shall be fully enforceable unless and until readopted,
amended or repealed by the Director of Employment Development.



306.  The Director of Employment Development may adopt, amend, or
repeal such regulations as are reasonably necessary to enforce his
functions under this code.



307.  The department shall provide, upon the request of any person
or entity, any or all of the department's rules, regulations,
guidelines, bulletins, manuals, standards of general application, or
the departmental responsibilities under any state or federal law,
along with any subscription service necessary to assure prompt
receipt of additional amendments to any of the above materials. The
department shall charge a fee to cover (1) the costs of reproducing
the materials and (2) postage associated with a subscription service;
however, one free copy of the materials shall be provided to each
state legislator, upon request.
   Any documents properly classified as confidential shall be exempt
from the requirements of this section.



310.  The Director of Employment Development or the Department of
Employment Development may prescribe the extent, if any, to which any
rule, regulation or interpretation issued or promulgated in
accordance with the provisions of this code shall be applied without
retroactive effect.



311.  The Director of Employment Development shall appoint such
assistants except personnel of the appeals division as he finds
necessary for the administration of this division, subject to the
provisions of the Government Code, and may delegate to any of the
officers or employees of the department such powers and duties as he
considers necessary for the proper administration of this division.
   The Director of Employment Development and his authorized
representatives in the enforcement of the division shall have all the
powers of a head of a department as set forth in Article 2
(commencing with Section 11180) of Chapter 2, Part 1, Division 3,
Title 2 of the Government Code. For the purpose of any investigation,
hearing, or proceeding under this division, the Director of
Employment Development may delegate his power in relation thereto to
any deputy, or other person properly authorized in writing by him.



315.  The appeals division within the department includes the
appeals board and its clerical staff and assistants and the
administrative law judges and their supervisors and clerical staff
and assistants.



316.  There shall be maintained within an appropriate division of
the department, a bureau, section or unit relating to education and
public instruction for the purpose of informing employers and workers
of their rights and responsibilities under this code, and of
instructing the public generally concerning its basic purposes,
provisions and operations. All standard information employee
pamphlets concerning unemployment and disability insurance programs
shall be printed in English and separately in Spanish, or at the
discretion of the director, in English and Spanish, in such number as
he may determine.


317.  The Director of Employment Development shall maintain a field
investigating staff, whose function shall embrace investigation
throughout the state of violations of this code, to the end that its
provisions are more adequately and strictly enforced.




318.  The Director of Employment Development shall comply with all
applicable provisions of the Government Code relating to contracts,
budgets and other fiscal matters, including Sections 13320 to 13324,
inclusive, of that code, in the same manner and to the same extent as
other state agencies, insofar as such provisions are not
inconsistent with the provisions of the Social Security Act and the
rules and regulations of the Secretary of Labor.



320.  The Director of Employment Development shall make such reports
in such form and containing such information as the Secretary of
Labor may from time to time require, and shall comply with such
provisions as the secretary may from time to time find necessary to
assure the correctness and verification of such reports.




320.5.  The director may by authorized regulations prescribe the
information required to be reported to the department by employing
units under this division and employers subject to withholding tax
under Division 6 (commencing with Section 13000) in order to make
reports required by the Secretary of Labor, to provide information
necessary to administer this code, to estimate unemployment rates or
to make other estimates required for the purpose of dispensing or
withholding money payments under the Welfare Reform Act of 1971, the
Employment Security Amendments of 1970, the Emergency Unemployment
Compensation Act of 1971, or the Workforce Investment Act of 1998,
and to make any other reports or estimates that may be required by
any other state or federal law. The authorized regulations of the
director may include requirements for the reporting of employment,
unemployment, hours, wages, earnings, the location and nature of the
industrial, business, or other activity of each establishment for the
conduct of business, performance of services, or industrial
operations, and such other requirements as are necessary to comply
with this section.



321.  The Director of Employment Development shall make available,
upon request, to any agency of the United States government charged
with the administration of public works or assistance through public
employment, the following information relating to recipients of
unemployment compensation:
   (a) The recipient's name.
   (b) The recipient's address.
   (c) The ordinary occupation and employment status of each such
recipient of unemployment benefits.
   (d) A statement of such recipient's rights to further compensation
under this division.


322.  The department may exchange information with other
governmental departments and agencies, both federal and state, which
are concerned with the administration of unemployment insurance, or
the collection of taxes which may be used to finance the
administration of unemployment insurance, or the relief of unemployed
or destitute individuals, or legislation concerning, regulating, or
in any manner affecting the obligations arising out of an
employer-employee relation, and with other departments or agencies of
government as the department deems necessary or desirable for the
proper administration of this division in accordance with authorized
regulations.



323.  The Director of Employment Development may apply for an
advance to the Unemployment Fund and accept the responsibility for
the repayment of such advance in accordance with the conditions
specified in Title XII of the Social Security Act, as amended, to
secure to this state and its citizens the advantages available under
the provisions of that title.



324.  The expense of the administration of this division shall be
paid out of the Unemployment Administration Fund, unless otherwise
provided for in this division.



325.  (a) The department may study and make recommendations as to
action which might tend to:
   (1) Promote the prevention of unemployment and the stabilization
of employment.
   (2) Encourage and assist in the adoption of practical methods of
vocational training, retraining and guidance.
   (3) Promote the establishment and operation by governmental units
and agencies of reserves for public work to be prosecuted in time of
business depression and unemployment.
   (4) Promote the reemployment of unemployed workers throughout the
state in any way that may seem feasible.
   (5) Reduce and prevent unemployment.
   (6) Establish the most effective methods of providing economic
security through all forms of social insurance.
   (b) To accomplish the ends set forth in subdivision (a) of this
section, the department may carry on and publish the results of
investigations and research studies.



325.5.  The department, in consultation and coordination with
veterans' organizations and veteran service providers, shall do all
of the following:
   (a) Research the needs of veterans throughout the state and
develop a profile of veterans' employment and training needs.
   (b) Develop a statewide plan for the equitable distribution of
employment funds for veterans' employment services.
   (c) Seek federal funding for purposes of subdivision (a).



325.6.  (a) It is the intent of the Legislature that state supported
Veterans Employment Training services meet the same performance
standards as those required by the federal Workforce Investment Act
for services provided to veterans.
   (b) Following any fiscal year in which state funds support the
Veterans Employment Training services program, the Employment
Development Department shall provide an annual report to the
Legislature, on or before November 1, regarding the following
performance measures:
   (1) The number of veterans receiving individualized, case managed
services.
   (2) The number of veterans who receive individualized, case
managed services entering employment.
   (3) The retention rate for veterans who enter employment.
   (4) The average earnings for veterans entering employment.




326.  The department shall investigate and report upon the degree of
unemployment hazard in various industries and occupations and their
cost to the Unemployment Fund. It shall recommend to employers in
industries or occupations showing an excessive cost to that fund,
means for stabilizing employment. It shall also, if necessary,
recommend to the Legislature a higher rate of contribution for any
classification of industries or occupations in which unemployment is
excessive or chronic.



327.  The department is authorized to enter into negotiations with
the United States Bureau of the Census to expand the current
population survey for a sample of up to 35,000 households in
California. The department shall report its findings and the result
of the negotiations to the Legislature. At such time as the Bureau of
the Census is prepared to undertake the workload involved in
expanding California's portion of the population survey, the
department shall submit to the Legislature a budget request for funds
not available from other sources to finance a contract with the
Bureau of the Census. When sufficient funds are made available
through the budget process or from other sources, the department is
authorized to contract with the Bureau of the Census for the purpose
of expanding the current population survey to a sample of up to
35,000 households in California. Based on the results of the expanded
survey, the department shall compile and publish monthly information
pertaining to employment and unemployment and shall provide such
information to state governmental entities, including the
Legislature, which are responsible for preparing state economic
projections and revenue estimates.



329.  (a) The director, or his or her designee, shall serve as
Chairperson of the Joint Enforcement Strike Force on the Underground
Economy provided for in Executive Order W-66-93. The strike force
shall include, but not be limited to, representatives of the
Employment Development Department, the Department of Consumer
Affairs, the Department of Industrial Relations, the Department of
Insurance, and the Office of Criminal Justice Planning. Other
agencies that are not part of the administration, such as the
Franchise Tax Board, the State Board of Equalization, and the
Department of Justice, are encouraged to participate in the strike
force.
   (b) The strike force shall have the following duties:
   (1) To facilitate and encourage the development and sharing of
information by the participating agencies necessary to combat the
underground economy.
   (2) To improve the coordination of activities among the
participating agencies.
   (3) To develop methods to pool, focus, and target the enforcement
resources of the participating agencies in order to deter tax evasion
and maximize recoveries from blatant tax evaders and violators of
cash-pay reporting laws.
   (4) To reduce enforcement costs wherever possible by eliminating
duplicative audits and investigations.
   (c) In addition, the strike force shall be empowered to:
   (1) Form joint enforcement teams when appropriate to utilize the
collective investigative and enforcement capabilities of the
participating members.
   (2) Establish committees and rules of procedure to carry out the
activities of the strike force.
   (3) To solicit the cooperation and participation of district
attorneys and other state and local agencies in carrying out the
objectives of the strike force.
   (4) Establish procedures for soliciting referrals from the public,
including, but not limited to, an advertised telephone hotline.
   (5) Develop procedures for improved information sharing among the
participating agencies, such as shared automated information database
systems, the use of a common business identification number, and a
centralized debt collection system.
   (6) Develop procedures to permit the participating agencies to use
more efficient and effective civil sanctions in lieu of criminal
actions wherever possible.
   (7) Evaluate, based on its activities, the need for any statutory
change to do any of the following:
   (A) Eliminate barriers to interagency information sharing.
   (B) Improve the ability of the participating agencies to audit,
investigate, and prosecute tax and cash-pay violations.
   (C) Deter violations and improve voluntary compliance.
   (D) Eliminate duplication and improve cooperation among the
participating agencies.
   (E) Establish shareable information databases.
   (F) Establish a common business identification number for use by
participating agencies.
   (G) Establish centralized, automated debt collection services for
the participating agencies.
   (H) Strengthen civil penalty procedures to allow the strike force
to emphasize civil rather than criminal penalties wherever possible.
   (d) The strike force shall report to the Governor and the
Legislature annually during the period of its existence, by June 30,
of each year, regarding its activities.
   The report shall include, but not be limited to, all of the
following:
   (1) The number of cases of blatant violations and noncompliance
with tax and cash-pay laws identified, audited, investigated, or
prosecuted through civil action or referred for criminal prosecution.
   (2) Actions taken by the strike force to publicize its activities.
   (3) Efforts made by the strike force to establish an advertised
telephone hotline for receiving referrals from the public.
   (4) Procedures for improving information sharing among the
agencies represented on the strike force.
   (5) Steps taken by the strike force to improve cooperation among
participating agencies, reduce duplication of effort, and improve
voluntary compliance.
   (6) Recommendations for any statutory changes needed to accomplish
the goals described in paragraph (7) of subdivision (c).



333.  (a) The department shall place a high priority on the
automation of the Benefit Payment Control Program, specifically
including, but not limited to, automating the ledger and collection
functions.
   (b) An automated system for the Benefit Payment Control Program
shall include a function which provides for the automatic issuance of
monthly collection letters to unemployment insurance claimants who
have received benefit overpayments.
   (c) Personnel savings from automation of the Benefit Payment
Control Program, notwithstanding any other provision of law, shall be
redirected to the processing of additional willful overpayment
cases.



334.  The director shall pursue the following methods to increase
the collection of unemployment insurance benefit overpayments:
   (a) Developing administrative or automated procedures to insure
that field offices appropriately refer cases to the central office
for the timely interception of a claimant's state tax refund.
   (b) Modifying the automated overpayment detection system so that
it will identify more overpayments.
   (c) Increasing the number of potential overpayments which are
reviewed by the department.
   (d) Working with the Legislature and the Governor to adequately
staff the Benefit Payment Control Program.



335.  The department, in consultation and coordination with the film
and movie industry, the Business, Transportation and Housing Agency,
and the California Film Commission shall do all of the following,
contingent upon the appropriation of funds in the annual Budget Act
for these specified purposes:
   (a) Research and maintain data on the employment and output of the
film industry, including full-time, part-time, contract, and short
duration or single event employees.
   (b) Examine the ethnic diversity and representation of minorities
in the entertainment industry.
   (c) Determine the overall direct and indirect economic impact of
the film industry.
   (d) Monitor film industry employment and activity in other states
and countries that compete with California for film production.
   (e) Review the effect that federal and state laws and local
ordinances have on the filmed entertainment industry.
   (f) Prepare and release biannually a report to the chairpersons of
the appropriate Senate and Assembly policy committees that details
the information required by this section.



336.  The director shall establish procedures to identify the
transfer or acquisition of a business that is undertaken for purposes
of obtaining a lower unemployment insurance contribution rate.

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401.  (a) There is in the department an Appeals Division consisting
of the California Unemployment Insurance Appeals Board and its
employees. The appeals board consists of five members. Three members
shall be appointed by the Governor, subject to the approval of the
Senate. One member shall be appointed by the Speaker of the Assembly,
and one member shall be appointed by the Senate Committee on Rules.
All of the members of the appeals board shall be attorneys at law
admitted to practice in any state of the United States, and shall
have, at a minimum, one year of experience in conducting judicial or
administrative hearings or five years of experience in the practice
of law. Each member of the board shall devote his or her full time to
the performance of his or her duties. The chairperson and each
member of the board shall receive the annual salary provided for by
Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of
Title 2 of the Government Code. The Governor shall designate the
chairperson of the appeals board from the membership of the appeals
board. The person so designated shall hold the office of chairperson
at the pleasure of the Governor. The chairperson shall designate a
member of the appeals board to act as chairperson in his or her
absence.
   (b) The amendments made to this section by the act adding this
subdivision shall apply to appointments made on or after January 1,
2013.
   (c) It is the intent of the Legislature that the two California
Unemployment Insurance Appeals Board member positions that are
eliminated pursuant to this act be those board member positions that
could have been appointed by the Governor, but were not, and that are
currently vacant and have been vacant since October 2011.



402.  Each member of the appeals board shall serve for a term of
four years and until his successor is appointed and qualifies. The
term of office of each member of the board appointed pursuant to the
1967 amendment to this section shall also be for four years;
provided, however, that of the two board members first appointed
pursuant to such amendments, one shall be appointed for a term which
shall expire July 1, 1970, and one for a term which shall expire July
1, 1971.
   A vacancy shall be filled by the appointing power by appointment
for the unexpired term. A vacancy filled by the Governor shall be
subject to the approval of the Senate.



403.  All personnel of the Appeals Division shall be appointed,
directed and controlled only by the appeals board or its authorized
deputies or agents to whom it may delegate such powers.
   The appeals board shall prepare a budget covering the necessary
administrative costs of the Appeals Division. Such budget shall not
be subject to change by the director except as agreed to by the
appeals board. In the event that agreement cannot be reached, the
final decision shall rest with the Governor. The director shall
furnish the equipment, supplies, housing and nonpersonal and
housekeeping services required by the Appeals Division and shall
perform such other mechanics of administration as the appeals board
and the director may agree upon.



404.  The appeals board, or the executive officer subject to its
direction and control to whom it delegates such responsibility, shall
appoint and direct the activities of one or more impartial
administrative law judges who shall hear and render a decision in
every matter in which a petition is filed with, or an appeal is taken
to, an administrative law judge as provided in this division. The
compensation of the administrative law judges shall be fixed by the
State Personnel Board at a rate comparable to that of other
administrative law judges or hearing officers in state service whose
duties and responsibilities are comparable, without regard to whether
such other positions have membership in the State Bar of California
as a prerequisite to appointment. No administrative law judge shall
participate in any case in which he is an interested party.



405.  The appeals board shall appoint a chief administrative law
judge who shall be a member in good standing of the State Bar of
California.


406.  The duties of the chief administrative law judge include:
   (a) Serving as the chief executive of the board in the
administration of the activities of administrative law judges and
their staffs.
   (b) Maintaining a continuous review of the decisions of
administrative law judges from which no appeal is taken to uncover
decisions which appear inconsistent with the law, with established
judicial decisions, with prior decisions of the board or with each
other and recommending such cases to the appeals board for
certification to itself for a further hearing.




407.  In any case before it, the appeals board may delegate to any
one of its members or to a special examiner or administrative law
judge the taking or hearing of evidence. The appeals board and its
duly authorized representatives in the performance of its duties
under this division shall have the powers of a head of a department
as set forth in Sections 11180 to 11191, inclusive, of the Government
Code.



408.  All decisions and orders of the Appeals Board shall be in
writing.


409.  The chairperson shall assign cases before the board to any two
members of the board for consideration and decision. Assignments by
the chairperson of members to the cases shall be rotated so as to
equalize the workload of the members, but with the composition of the
members so assigned being varied and changed to assure that there
shall never be a fixed and continuous composition of members. Except
as otherwise provided, the decision of the two members assigned the
case shall be the decision of the appeals board. In the event that
the two members do not concur in the decision, the chairperson or
another member of the board designated by the chairperson shall be
assigned to the panel and shall resolve the impasse. A case shall be
considered and decided by the appeals board acting as a whole at the
request of any member of the appeals board.
   The appeals board shall meet as a whole when the chairperson may
direct to consider and pass on any matters that the chairperson may
bring before it, and to consider and decide cases that present issues
of first impression or that will enable the appeals board to achieve
uniformity of decisions by the respective members.
   The appeals board, acting as a whole, may designate certain of its
decisions as precedents. Precedent decisions of the appeals board
are subject to Section 11425.60 of the Government Code. The appeals
board, acting as a whole, may, on its own motion, reconsider a
previously issued decision solely to determine whether or not the
decision shall be designated as a precedent decision. Decisions of
the appeals board acting as a whole shall be by a majority vote of
its members. The director and the appeals board administrative law
judges shall be controlled by those precedents except as modified by
judicial review. If the appeals board issues decisions other than
those designated as precedent decisions, anything incorporated in
those decisions shall be physically attached to and be made a part of
the decisions. The appeals board may make a reasonable charge as it
deems necessary to defray the costs of publication and distribution
of its precedent decisions and index of precedent decisions.



409.1.  If a final judgment of a court of competent jurisdiction
reverses or declares invalid a precedent decision of the appeals
board issued under Section 409 or this section, the appeals board,
acting as a whole, shall promptly modify the precedent decision to
conform in all respects to the judgment of the court. The modified
precedent decision shall supersede the prior precedent decision for
all purposes. The appeals board shall promptly notify the director,
the administrative law judges of the appeals board, and all other
subscribers to the precedent decisions, of the modified precedent
decision.


409.2.  Any interested person or organization may bring an action
for declaratory relief in the superior court in accordance with the
provisions of the Code of Civil Procedure to obtain a judicial
declaration as to the validity of any precedent decision of the
appeals board issued under Section 409 or 409.1.



410.  A decision of the appeals board is final, except for such
action as may be taken by a judicial tribunal as permitted or
required by law.
   A decision of the appeals board is binding on the director with
respect to the parties involved in the particular appeal.
   The director shall have the right to seek judicial review from an
appeals board decision irrespective of whether or not he or she
appeared or participated in the appeal to the administrative law
judge or to the appeals board.
   Notwithstanding any other provision of law, the right of the
director, or of any other party except as provided by Sections 1241,
1243, and 5313, to seek judicial review from an appeals board
decision shall be exercised not later than six months after the date
of the decision of the appeals board or the date on which the
decision is designated as a precedent decision, whichever is later.
   The appeals board shall attach to all of its decisions where a
request for review may be taken, an explanation of the party's right
to seek such review.



411.  The appeals board, acting as a whole, may promulgate rules or
amend or rescind rules pertaining to hearing appeals and other
matters falling within its jurisdiction. All these rules, amendments
thereto, or repeals thereof, shall be made in accordance with the
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.



412.  (a) The appeals board acting as a whole may, by notice mailed
to the director and the parties prior to the mailing of an
administrative law judge's decision on an appeal or petition under
this division pending before any administrative law judge, on its own
motion either:
   (1) Transfer the proceedings to another administrative law judge;
or
   (2) Remove the proceedings to itself for review and decision.
   (b) If the appeals board removes any proceedings to itself for
review and decision pursuant to this section, the appeals board may
order the taking of additional evidence and may affirm, reverse,
modify, or set aside any findings or action of the department from
which the appeal or petition to the administrative law judge was
taken in the proceedings. The appeals board shall promptly notify the
department and the parties to the proceedings of its order or
decision.



413.  (a) The appeals board acting as a whole may, by notice mailed
to the director and the parties not later than 30 days after the
mailing of an administrative law judge's decision on an appeal or
petition under this division to the administrative law judge, on its
own motion either:
   (1) Set aside the decision of the administrative law judge and
remand the proceedings to another administrative law judge for review
and decision; or
   (2) Remove the proceedings to itself for review and decision.
   (b) If the appeals board removes any proceedings to itself for
review and decision pursuant to this section, the appeals board may
order the taking of additional evidence and may affirm, reverse,
modify or set aside the decision of the administrative law judge. The
appeals board shall promptly notify the department and the parties
to the proceedings of its order or decision.
   (c) Notwithstanding any other provision of this division, no
decision of an administrative law judge under this division shall be
final if the appeals board pursuant to this section sets aside such
decision or removes the proceedings to itself for review and
decision.

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451.  The administration of this division and of other state and
federal unemployment compensation and public employment service laws
will be promoted by cooperation between this State and such other
states and the appropriate federal agencies in exchanging services,
and making available facilities and information. The director may
make investigations, secure and transmit information, make available
services and facilities and exercise the other powers provided with
respect to the administration of this division which he finds
necessary or appropriate to facilitate the administration of any
state or federal unemployment compensation or public employment
service law, and may accept and utilize information, services and
facilities made available to this State by an agency charged with the
administration of any such other state or federal law.



452.  To the extent permissible under the laws and Constitution of
the United States, the director may enter into or cooperate in
arrangements whereby facilities and services provided under the
unemployment compensation law of any foreign government, may be
utilized for the taking of claims and the payment of benefits under
the Unemployment Insurance Law of this State or a similar law of such
government.



453.  To encourage cooperation between this state and other states
in the enforcement of the unemployment insurance law of each state
and to further coordinate the nationwide system of unemployment
insurance in the United States and its territories:
   (a) The courts of this state shall recognize and enforce
liabilities for unemployment contributions, penalties, interest, and
benefit overpayments imposed by other states which extend a like
comity to this state.
   (b) The Attorney General may commence action in any other
jurisdiction by and in the name of the department to collect
unemployment contributions, penalties, interest, and benefit
overpayments legally due this state. The officials of other states
which extend a like comity to this state may sue for the collection
of such contributions, penalties, interest, and benefit overpayments
in the courts of this state. A certificate by the Secretary of State
under the Great Seal of the state that the officers of the department
designated by the director have authority to collect the
contributions, penalties, interest, and benefit overpayments is
conclusive evidence of such authority.
   (c) The Attorney General may commence action in this state as
agent for and on behalf of any other state to enforce judgments and
liabilities for unemployment insurance contributions, penalties,
interest and benefit overpayments due such state which extends a like
comity to this state. The requesting state shall pay the court
costs.


454.  The director may enter into reciprocal arrangements with
authorized agencies of other states or of the Federal Government, or
both, whereby:
   (a) Services customarily performed in more than one state by an
individual for a single employer shall be deemed to be services
performed entirely within any one of the states (i) in which any part
of the individual's service is performed, or (ii) in which the
individual has his residence, or (iii) in which the employer
maintains a place of business, if there is in effect as to such
services an election by the employing unit with the acquiescence of
the individual, approved by the agency charged with the
administration of such state's unemployment compensation law pursuant
to which all the services performed by such individual for such
employer are deemed to be performed entirely within such state.
   (b) Services on vessels engaged in interstate commerce wherever
performed shall be deemed performed within this State or any other
state on the basis of the location of the operating office of the
employer from which the operations of the vessel are ordinarily and
regularly supervised, managed, directed, and controlled.



455.  The director may enter into reciprocal arrangements with
authorized agencies of other states or of the Federal Government, or
both, whereby:
   (a) Potential rights to benefits accumulated under the
unemployment compensation laws of one or more states or of the
Federal Government, or both, may constitute the basis for the payment
of benefits through a single appropriate agency under terms which
the director finds will be fair and reasonable to all affected
interests and which will not result in any substantial loss to the
fund.
   (b) Wages or services in employment subject to an unemployment
compensation law of another state or of the Federal Government shall
be deemed to be wages in employment for employers for the purpose of
determining an individual's rights to unemployment compensation
benefits under this part, and wages in employment for employers as
defined in this part shall be deemed to be wages or services on the
basis of which unemployment compensation under the law of another
state or of the Federal Government is payable, but no such
arrangement shall be entered into unless it contains provisions for
reimbursements to the Unemployment Fund for such of the unemployment
compensation benefits paid under this part upon the basis of such
wages or services, and provisions for reimbursements from the
Unemployment Fund for such of the compensation paid under such other
law upon the basis of wages for employment as defined in this part as
the director finds will be fair and reasonable to all affected
interests. Reimbursements paid from the Unemployment Fund pursuant to
this subdivision shall be deemed to be unemployment compensation
benefits for the purposes of this part. The director may make to
other state and federal agencies and receive from such other state or
federal agencies reimbursements from or to the fund, in accordance
with arrangements entered into pursuant to this subdivision.




455.5.  This state shall participate in any arrangements for the
payment of compensation on the basis of combining an individual's
wages and employment covered under this division with his wages and
employment covered under the unemployment compensation law of other
states which are approved by the Secretary of Labor in consultation
with the state unemployment compensation agencies as reasonably
calculated to assure the prompt and full payment of compensation in
such situations. Any such arrangement shall include provisions for
both of the following:
   (a) Applying the base period of a single state law to a claim
involving the combining of an individual's wages and employment
covered under two or more state laws.
   (b) Avoiding duplicate use of wages and employment by reason of
such combining.



455.7.  Notwithstanding any other provision of this division,
benefits shall not be denied or reduced to an individual solely
because he files a claim in another state, or a contiguous country
with which the United States has an agreement with respect to
unemployment compensation, or because he resides in another state or
such a contiguous country at the time he files a claim for
unemployment compensation.



456.  The director may enter into reciprocal arrangements with
authorized agencies of other states or of the Federal Government, or
both, whereby employer contributions due under this part with respect
to wages for employment shall be deemed to have been paid to the
Unemployment Fund of this State as of the date payment of such
contributions was made under another state or federal unemployment
compensation law. No arrangement shall be entered into pursuant to
this section unless it contains provisions for such reimbursement to
the fund of such contributions and the actual earnings thereon as the
director finds will be fair and reasonable to all affected
interests. The director may collect contributions in like manner for
such agencies of other states and the Federal Government
administering unemployment compensation laws and remit such
contributions to such agencies under appropriate reciprocal
arrangements.

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601.  "Employment" means service, including service in interstate
commerce, performed by an employee for wages or under any contract of
hire, written or oral, express or implied.



601.5.  For the purpose of this division only, "employment" includes
any service in an artistic or literary capacity performed by an
individual pursuant to a collective bargaining agreement between an
employer and a labor organization in the motion picture, radio or
television industry where the employer has the right to control and
direct the services to be performed and the individual is defined as
an employee under the terms of the collective bargaining agreement.



602.  "Employment" includes an individual's entire service,
performed within, or both within and without, this State if:
   (a) The service is localized in this State; or
   (b) The service is not localized in any state but some of the
service is performed in this State and (1) the base of operations,
or, if there is no base of operations, then the place from which such
service is directed or controlled, is in this State; or (2) the base
of operations or place from which such service is directed or
controlled is not in any state in which some part of the service is
performed, but the individual's residence is in this State.



603.  Service is localized within a state if:
   (a) The service is performed entirely within the state; or
   (b) The service is performed both within and without the state,
but the service performed without the state is incidental to the
individual's service within the state; for example, is temporary or
transitory in nature, or consists of isolated transactions.



603.5.  "Employment" includes an individual's entire service,
wherever performed within the United States or Canada, if such
service is not covered under the unemployment compensation law of any
other state or Canada, and the place from which the service is
directed or controlled is in this state.



604.  "Employment" includes an individual's entire service, if such
service is deemed performed in this State by virtue of an arrangement
made pursuant to this division and does not include any service
which by virtue of such an arrangement is deemed performed in another
state.


605.  (a) Except as provided by Section 634.5, "employment" for the
purposes of this part and Parts 3 (commencing with Section 3501) and
4 (commencing with Section 4001) includes all service performed by an
individual (including blind and otherwise disabled individuals) for
any public entity or Indian tribe, if the service is excluded from
"employment" under the federal Unemployment Tax Act solely by reason
of paragraph (7) of Section 3306(c) of that act.
   (b) For purposes of this section:
   (1) "Public entity" means the State of California (including the
Trustees of the California State University and Colleges, and the
California Industries for the Blind), any instrumentality of this
state (including the Regents of the University of California), any
political subdivision of this state or any of its instrumentalities,
a county, city, district (including the governing board of any school
district or community college district, any county board of
education, any county superintendent of schools, or any personnel
commission of a school district or community college district that
has a merit system pursuant to any provision of the Education Code),
entities conducting fairs as identified in Sections 19418 to 19418.3,
inclusive, of the Business and Professions Code, any public
authority, public agency, or public corporation of this state, any
instrumentality of more than one of the foregoing, and any
instrumentality of any of the foregoing and one or more other states
or political subdivisions.
   (2) "Indian tribe" means any Indian tribe described by subsection
(u) of Section 3306 of Title 26 of the United States Code.



606.  Each individual employed to perform or to assist in performing
the work of any individual employed by an employing unit shall be
deemed to be employed by that employing unit for all the purposes of
this division, whether or not he was hired or paid directly by the
employing unit if the employing unit had actual or constructive
knowledge of the work.



606.5.  (a) Whether an individual or entity is the employer of
specific employees shall be determined under common law rules
applicable in determining the employer-employee relationship, except
as provided in subdivisions (b) and (c).
   (b) As used in this section, a "temporary services employer" and a
"leasing employer" is an employing unit that contracts with clients
or customers to supply workers to perform services for the client or
customer and performs all of the following functions:
   (1) Negotiates with clients or customers for such matters as time,
place, type of work, working conditions, quality, and price of the
services.
   (2) Determines assignments or reassignments of workers, even
though workers retain the right to refuse specific assignments.
   (3) Retains the authority to assign or reassign a worker to other
clients or customers when a worker is determined unacceptable by a
specific client or customer.
   (4) Assigns or reassigns the worker to perform services for a
client or customer.
   (5) Sets the rate of pay of the worker, whether or not through
negotiation.
   (6) Pays the worker from its own account or accounts.
   (7) Retains the right to hire and terminate workers.
   (c) If an individual or entity contracts to supply an employee to
perform services for a customer or client, and is a leasing employer
or a temporary services employer, the individual or entity is the
employer of the employee who performs the services. If an individual
or entity contracts to supply an employee to perform services for a
client or customer and is not a leasing employer or a temporary
services employer, the client or customer is the employer of the
employee who performs the services. An individual or entity that
contracts to supply an employee to perform services for a customer or
client and pays wages to the employee for the services, but is not a
leasing employer or a temporary services employer, pays the wages as
the agent of the employer.
   (d) In circumstances which are in essence the loan of an employee
from one employer to another employer wherein direction and control
of the manner and means of performing the services changes to the
employer to whom the employee is loaned, the loaning employer shall
continue to be the employer of the employee if the loaning employer
continues to pay remuneration to the employee, whether or not
reimbursed by the other employer. If the employer to whom the
employee is loaned pays remuneration to the employee for the services
performed, that employer shall be considered the employer for the
purposes of any remuneration paid to the employee by the employer,
regardless of whether the loaning employer also pays remuneration to
the employee.



607.  If the services performed during one-half or more of any pay
period by an employee for the person employing him constitute
employment, all the services of the employee for that period shall be
deemed to be employment; but if the services performed during more
than one-half of any pay period by an employee for the person
employing him do not constitute employment, then none of the services
of the employee for that period shall be deemed to be employment.
   As used in this section "pay period" means a period of not more
than 31 consecutive days for which a payment of remuneration is
ordinarily made to the employee by the person employing him.




608.  "Employment", except as provided by Section 634.5, includes
service excluded from "employment" under the Federal Unemployment Tax
Act solely by reason of paragraph (8) of Section 3306(c) of that act
because it is service performed in the employ of a religious,
charitable, educational, or other nonprofit organization described in
Section 501(c)(3) of the Internal Revenue Code of 1954 which is
exempt from income tax under Section 501(a) of that code.



609.  (a) "Employment" includes service performed for an employing
unit on or in connection with an American vessel operating on
navigable waters within or within and without the United States or on
or in connection with an American aircraft operating within or
within and without the United States, if the employing unit maintains
in this state an operating office from which the operations of the
American vessel or American aircraft are ordinarily and regularly
supervised, managed, directed, and controlled, and such services are
included in "employment" under the Federal Unemployment Tax Act.
   (b) All of the provisions of this division shall be applicable to
an employing unit and to service performed in "employment" under this
section in the same manner and to the same extent as to all other
employers, and the wage credits given to, and the payment of benefits
to, any employee of an employing unit under this section shall be in
the same amount, on the same terms, and subject to the same
conditions as applied to employees of other employers under this
division.



610.  "Employment" shall include the service of an individual who is
a citizen of the United States, performed outside the United States
(except in Canada), after December 31, 1971, in the employ of an
American employer as defined in Section 125.4 other than service that
is deemed "employment" under Section 602 or 603 or the equivalent
provisions of another state's unemployment compensation law, if:
   (a) The employer's principal place of business in the United
States is located in this state; or
   (b) The employer has no place of business in the United States,
but:
   (1) The employer is an individual who is a resident of this state;
or
   (2) The employer is a corporation or limited liability company
that is organized under the laws of this state; or
   (3) The employer is a partnership or a trust and the number of the
partners or trustees who are residents of this state is greater than
the number who are residents of any one other state; or
   (c) None of the criteria of subdivisions (a) and (b) of this
section is met but the employer has elected coverage in this state
or, the employer having failed to elect coverage in any state, the
individual has filed a claim for benefits, based on such service,
under this division.



611.  "Employment" includes agricultural labor.

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629.  (a) "Employment" does not include domestic service in a
private home, except that "employment" includes domestic service in a
private home if performed for an employing unit or a person who paid
in cash remuneration of one thousand dollars ($1,000) or more to
individuals employed in the domestic service in any calendar quarter
in the calendar year or the preceding calendar year.
   (b) For purposes of subdivision (a), "employment" does not include
work performed by a domestic worker for whom an employment agency,
as defined in paragraph (3) of subdivision (a) or subdivision (h) of
Section 1812.501 of the Civil Code, procures, offers, refers,
provides, or attempts to provide domestic work in a private home, if
all of the factors set forth in Section 687.2 characterize the nature
of the relationship between the employment agency and the domestic
worker for whom the agency procures, offers, refers, provides, or
attempts to provide domestic work.



630.  Notwithstanding subparagraph (C) of paragraph (1) of
subdivision (c) of Section 621 or Section 13004, "employment" does
not include service as a transcriber of depositions, court
proceedings, and hearings performed away from the office of the
person, firm, or association obligated to produce a transcript of
these proceedings.



631.  "Employment" does not include service performed by a child
under the age of 18 years in the employ of his father or mother, or
service performed by an individual in the employ of his son,
daughter, or spouse, except to the extent that the employer and the
employee have, pursuant to Section 702.5, elected to make
contributions to the Unemployment Compensation Disability Fund.



632.  "Employment" does not include service performed in the employ
of any other state or its political subdivisions or in the employ of
the United States government or of any instrumentality of the United
States, but if Congress permits the states to require any
instrumentalities of the United States to make payments into a fund
under a state unemployment compensation act, and to comply with state
regulations thereunder, then, to the extent permitted by Congress,
all of the provisions of this division shall be applicable to the
instrumentalities and to services performed for the instrumentalities
in the same manner, to the same extent, and on the same terms as to
all other employers, employing units, individuals, and services.
   If this state is not certified by the Secretary of Labor under
Section 3304 of the Internal Revenue Code of 1986 for any year, then
the payments required of the instrumentalities and their workers with
respect to the year shall be refunded from the Unemployment Fund
without interest.


633.  (a) For purposes of coverage under Part 2 (commencing with
Section 2601) of Division 1, "employment" does not include services
performed as an intermittent or adjunct instructor at a postsecondary
educational institution which meets the requirements of Article 8
(commencing with Section 94900) of Chapter 7 of Part 59 of the
Education Code if the intermittent or adjunct instructor and the
employing unit enter a written contract with the following
provisions:
   (1) That any federal or state income tax liability shall be the
responsibility of the party providing the services.
   (2) That no disability insurance coverage is provided under the
contract.
   (3) That the party performing the services certifies that he or
she is doing so as a secondary occupation or as a supplemental source
of income.
   (b) This section shall not apply to services performed under a
collective bargaining agreement.
   (c) This section shall become operative on January 1, 1997.




633.1.  For purposes of coverage under Part 2 (commencing with
Section 2601), "employment" shall not include:
   (a) Services performed for any public entity, nonprofit or for
profit entity, organization, or business by an inmate of a state
prison under the jurisdiction of the Department of Corrections, by an
individual who is otherwise in the custody of the Department of
Corrections, or by an individual who is otherwise incarcerated in any
of the institutions set forth in Section 2680.
   (b) Services performed for any public entity, nonprofit or for
profit entity, organization, or business by a ward in the custody of
the Department of the Youth Authority.



634.5.  Notwithstanding any other provision of law, no provision
excluding service from "employment" shall apply to any entity defined
by Section 605 or to any nonprofit organization described by Section
608, except as provided by this section. With respect to any entity
defined by Section 605 or any nonprofit organization described by
Section 608, "employment" does not include service excluded under
Sections 629, 631, 635, and 639 to 648, inclusive, or service
performed in any of the following:
   (a) In the employ of either of the following:
   (1) A church or convention or association of churches.
   (2) An organization which is operated primarily for religious
purposes and which is operated, supervised, controlled, or
principally supported by a church or convention or association of
churches.
   (b) By a duly ordained, commissioned, or licensed minister of a
church in the exercise of his or her ministry or by a member of a
religious order in the exercise of duties required by the order.
   (c) In the employ of any entity defined by Section 605, if the
service is performed by an individual in the exercise of his or her
duties as any of the following:
   (1) An elected official.
   (2) A member of a legislative body or a member of the judiciary of
a state or a political subdivision of a state.
   (3) A member of the tribal council of an Indian tribe as described
by subsection (u) of Section 3306 of Title 26 of the United States
Code.
   (4) A member of a State National Guard or Air National Guard.
   (5) An employee serving on a temporary basis in case of fire,
storm, snow, earthquake, flood, or other similar emergency.
   (6) An employee in a position that, under or pursuant to state or
tribal law, is designated as either of the following:
   (A) A major nontenured policymaking or advisory position.
   (B) A policymaking or advisory position, the performance of the
duties of which ordinarily does not require more than eight hours per
week.
   (7) (A) Except as otherwise provided in subparagraph (B), an
election official or election worker if the amount of remuneration
reasonably expected to be received by the individual during the
calendar year for services as an election official or election worker
is less than one thousand dollars ($1,000).
   (B) This paragraph shall not take effect unless and until the
service is excluded from service to which paragraph (1) of
subdivision (a) of Section 3309 of Title 26 of the United States Code
applies by reason of exemption under subdivision (b) of Section 3309
of that act.
   (d)  By an individual receiving rehabilitation or remunerative
work in a facility conducted for the purpose of carrying out a
program of either:
   (1) Rehabilitation for individuals whose earning capacity is
impaired by age or physical or mental deficiency or injury.
   (2) Providing remunerative work for individuals who because of
their impaired physical or mental capacity cannot be readily absorbed
in the competitive labor market.
   (e) By an individual receiving work relief or work training as
part of an unemployment work relief or work training program assisted
or financed in whole or in part by any of the following:
   (1) A federal agency.
   (2) An agency of a state or a political subdivision thereof.
   (3) An Indian tribe, as described by subsection (u) of Section
3306 of Title 26 of the United States Code.
   (f) By a ward or an inmate of a custodial or penal institution
pursuant to Article 1 (commencing with Section 2700), Article 4
(commencing with Section 2760), and Article 5 (commencing with
Section 2780) of Chapter 5 of, and Article 1 (commencing with Section
2800) of Chapter 6 of, Title 1 of Part 3 of the Penal Code, Section
4649 and Chapter 1 (commencing with Section 4951) of Part 4 of
Division 4 of the Public Resources Code, and Sections 883, 884, and
1768 of the Welfare and Institutions Code.
   (g) By an individual under the age of 18 years in the delivery or
distribution of newspapers or shopping news, not including delivery
or distribution to any point for subsequent delivery or distribution.
   (h) By an individual in the sale of newspapers or magazines to
ultimate consumers, under an arrangement that includes the following
conditions:
   (1) The newspapers or magazines are to be sold by the individual
at a fixed price.
   (2) The individual's compensation is based on retention of the
excess of the price over the amount at which the newspapers or
magazines are charged to the individual, whether or not he or she is
guaranteed a minimum amount of compensation for the service or is
entitled to be credited with the unsold newspapers or magazines that
he or she returns.
   (i) (1) Except as otherwise provided in paragraph (2), as a
substitute employee whose employment does not increase the size of
the employer's normal workforce, whose employment is required by law,
and whose employment as a substitute employee does not occur on more
than 60 days during the base period.
   (2) This subdivision shall not take effect unless and until the
United States Secretary of Labor, or his or her designee, finds that
this subdivision is in conformity with federal requirements.
   (j) As a participant in a national service program carried out
using assistance provided under Section 12571 of Title 42 of the
United States Code.


635.  "Employment" does not include service under any unemployment
compensation system established by a law of the United States.



636.  "Employment" does not include services performed in the employ
of either a candidate for public office or a committee as defined in
Section 82013 of the Government Code, where such services are
performed in connection with an election campaign.




637.  "Employment" does not include service performed by any of the
following:
   (a) The officers and director of a corporation who are the sole
shareholders of the corporation and it is not subject to the Federal
Unemployment Tax Act.
   (b) The officers and director of a corporation engaged in
agriculture who are shareholders of the corporation and it is not
subject to the Federal Unemployment Tax Act.
   (c) An officer of a corporation who is the sole shareholder, or
the only shareholder other than his or her spouse, and the service is
not subject to the Federal Unemployment Tax Act.



637.1.  In a private corporation, any individual who is included
within the meaning of "employee" pursuant to subdivision (a) of
Section 621 and who is the sole shareholder, or the only shareholder
other than his or her spouse, may file a statement electing to be
excluded from disability insurance coverage for benefits and
contributions under this division. The election shall be effective on
the first day of the calendar quarter in which the statement is
filed. The election shall be effective during the remainder, if any,
of the calendar year in which the statement is filed and not less
than the two succeeding complete calendar years, and in all
subsequent calendar quarters while the statement is in effect.



638.  Sections 639 to 648, inclusive, shall be operative only during
such time as the respective type or types of service set forth in
those sections are similarly excluded from the definition of
"employment," in the Federal Unemployment Tax Act.




639.  "Employment" does not include domestic service in a local
college club, or local chapter of a college fraternity or sorority,
except that "employment" includes domestic service in a local college
club, or local chapter of a college fraternity or sorority if
performed for a club, chapter, or person who paid in cash
remuneration of one thousand dollars ($1,000) or more to individuals
employed in such domestic service in any calendar quarter in the
calendar year or the preceding calendar year.



640.  "Employment" does not include service not in the course of the
employing unit's trade or business performed in any calendar quarter
by an employee, unless the cash remuneration paid for such service
is fifty dollars ($50) or more and such service is performed by an
individual who is regularly employed by such employing unit to
perform such service. For the purposes of this subdivision, an
individual shall be deemed to be regularly employed by an employing
unit during a calendar quarter only if on each of some 24 days during
that quarter or the preceding calendar quarter such individual
performs for such employing unit for some portion of the day service
not in the course of the employing unit's trade or business.




641.  "Employment" does not include service performed in any
calendar quarter in the employ of any organization exempt from
federal income tax under Section 501(a) of the Internal Revenue Code
of 1954, as amended (other than an organization described in Section
401(a) of that code), or under Section 521 of the Internal Revenue
Code of 1954, as amended, if the remuneration for such service is
less than fifty dollars ($50).



642.  "Employment" does not include service performed in the employ
of a school, college, or university, if such service is performed:
   (a) By a student who is enrolled and is regularly attending
classes at such school, college, or university, or
   (b) By the spouse of such a student, if such spouse is advised, at
the time such spouse commences to perform such service, that:
   (1) The employment of such spouse to perform such service is
provided under a program to provide financial assistance to such
student by such school, college, or university, and
   (2) Such employment will not be covered by any program of
unemployment insurance or disability compensation.



642.1.  (a) "Employment" does not include service performed by a
full-time student employed by an organized camp, as defined in
Section 18897 of the Health and Safety Code and Section 3306(c)(20)
of Title 26 of the United States Code.
   (b) "Full-time student" for purposes of this section means either
of the following:
   (1) The individual is enrolled as a full-time student of an
educational institution.
   (2) The individual is between academic years or terms under both
of the following criteria:
   (A) The individual was enrolled as a full-time student at an
educational institution for the immediately preceding academic year
or term.
   (B) There is a reasonable assurance that the individual will be so
enrolled for the immediately succeeding academic year or term after
the period described in subparagraph (A).
   (c) For purposes of determining whether an individual is a
full-time student under this section the construction given to the
corresponding definition of "full-time student" contained in Section
3306(q) of Title 26 of the United States Code shall apply.



643.  "Employment" does not include service performed in the employ
of a foreign government (including service as a consular or other
officer or employee or a nondiplomatic representative).



644.  "Employment" does not include service performed in the employ
of an instrumentality wholly owned by a foreign government:
   (a) If the service is of a character similar to that performed in
foreign countries by employees of the United States Government or of
an instrumentality thereof; and
   (b) If the Secretary of State shall certify to the Secretary of
the Treasury that the foreign government, with respect to whose
instrumentality exemption is claimed, grants an equivalent exemption
with respect to similar service performed in the foreign country by
employees of the United States Government and of instrumentalities
thereof.



644.5.  "Employment" does not include services performed in the
employ of an international organization.



645.  "Employment" does not include service performed as a student
nurse in the employ of a hospital or a nurses' training school by an
individual who is enrolled and is regularly attending classes in a
nurses' training school chartered or approved pursuant to state law;
and service performed as an intern in the employ of a hospital by an
individual who has completed a four years' course in a medical school
chartered or approved pursuant to state law.



646.  "Employment" does not include service performed by an
individual under the age of 22 who is enrolled at a nonprofit or
public educational institution which normally maintains a regular
faculty and curriculum and normally has a regularly organized body of
students in attendance at the place where its educational activities
are carried on as a student in a full-time program, taken for credit
at such institution, which combines academic instruction with work
experience, if such service is an integral part of such program, and
such institution has so certified to the employer, except that this
section shall not apply to service performed in a program established
for or on behalf of an employer or group of employers.




647.  "Employment" does not include service performed in the employ
of a hospital, if such service is performed by a patient of such
hospital.


648.  "Employment" does not include service performed on or in
connection with a vessel or aircraft not an American vessel or an
American aircraft, if the employee is employed on and in connection
with such vessel or aircraft when outside the United States.




649.  "Employment" does not include service performed by an
individual if:
   (a) Such service is performed by an individual under the age of 18
in the delivery or distribution of newspapers, shopping news, or
magazines, not including delivery or distribution to any point for
subsequent delivery or distribution, unless such service is performed
by an individual under the age of 18 whose principal occupation is
regular full-time work and whose attendance at school is incidental
to full-time employment.
   (b) Such service is performed by an individual in, and at the time
of, the sale of newspapers or magazines to ultimate consumers, under
an arrangement under which the newspapers or magazines are to be
sold by him at a fixed price, his compensation being based on the
retention of the excess of such price over the amount at which the
newspapers or magazines are charged to him whether or not he is
guaranteed a minimum amount of compensation for such service, or is
entitled to be credited with the unsold newspapers or magazines
turned back.



650.  "Employment" does not include services performed as a real
estate, mineral, oil and gas, or cemetery broker or as a real estate,
cemetery or direct sales salesperson, or a yacht broker or salesman,
by an individual if all of the following conditions are met:
   (a) The individual is licensed under the provisions of Chapter 19
(commencing with Section 9600) of Division 3 of, or Part 1
(commencing with Section 10000) of Division 4 of, the Business and
Professions Code, Article 2 (commencing with Section 700) of Chapter
5 of Division 3 of the Harbors and Navigation Code, or is engaged in
the trade or business of primarily inperson demonstration and sales
presentation of consumer products, including services or other
intangibles, in the home or sales to any buyer on a buy-sell basis, a
deposit-commission basis, or any similar basis, for resale by the
buyer or any other person in the home or otherwise than from a retail
or wholesale establishment.
   (b) Substantially all of the remuneration (whether or not paid in
cash) for the services performed by that individual is directly
related to sales or other output (including the performance of
services) rather than to the number of hours worked by that
individual.
   (c) The services performed by the individual are performed
pursuant to a written contract between that individual and the person
for whom the services are performed and the contract provides that
the individual will not be treated as an employee with respect to
those services for state tax purposes.



651.  "Employment" does not include services performed by an
individual as a golf caddy in caddying or carrying a golf player's
clubs.


652.  "Employment" does not include service performed as an elected
or appointed official in any calendar quarter in the employ of any
nonprofit fraternal corporation or association which is not subject
to the Federal Unemployment Tax Act if the remuneration for such
service does not exceed one hundred dollars ($100) a month.
   The provisions of this section shall be applicable with
retrospective effect.



653.  "Employment" does not include services performed in the employ
of a baseball club pursuant to a contract or agreement under which
the baseball player agrees to perform for expenses and a share of the
profits of the club, rather than for a fixed salary.



654.  "Employment" does not include service performed by a
free-lance jockey or exercise boy who is regularly licensed by the
California Horse Racing Board.


655.  "Employment" does not include services performed by a
professional athlete who is neither a citizen of nor a resident of
the United States or any state when he comes to the State of
California for occasional or incidental professional engagements.




656.  "Employment" does not include professional services performed
by a consultant working as an independent contractor.
   For the purpose of this section, there shall be a rebuttable
presumption that services provided by an individual engaged in work
requiring specialized knowledge and skills attained through
completion of recognized courses of instruction or experience are
rendered as an independent contractor. These services shall be
limited to those provided by attorneys, physicians, dentists,
engineers, architects, accountants, chiropractors, and the various
types of physical, chemical, natural, and biological scientists.
Professional services shall not include services generally provided
by persons who do not have a degree from a four-year institution of
higher learning relating to the specialized knowledge and skills of
the professional service being provided.
   For the purposes of this section, the rebuttable presumption shall
not apply to an individual who enters into a contract agreement with
the recipient of the professional services which establishes an
employer-employee relationship. However, the existence of a contract
between a nonprofit, licensed, primary care clinic, as defined in
subdivision (a) of Section 1204 of the Health and Safety Code, and a
health care practitioner who is licensed as a physician and surgeon,
osteopathic physician and surgeon, podiatrist, optometrist,
chiropractor, or psychologist shall not constitute an
employer-employee relationship if the contract stipulates that the
professional services rendered to the clinic are by an independent
contractor, not an employee. Independent contractors who conform to
the provisions of this section or primary care clinics that contract
with these individuals or organizations shall not be liable for any
payments that may be required under an employer-employee relationship
pursuant to this code.


657.  The department shall adopt regulations by July 1, 1996, to
establish clear criteria which specify under what conditions amateur
athletic officials may be considered employees.

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675.  "Employer" means any employing unit, which for some portion of
a day, has within the current calendar year or had within the
preceding calendar year in employment one or more employees and pays
wages for employment in excess of one hundred dollars ($100) during
any calendar quarter.



676.  "Employer" also means any employing unit, for which services
are performed that are included in "employment" solely for the
purposes of Part 2 (commencing with Section 2601) of this division,
which for some portion of a day, has within the current calendar year
or had within the preceding calendar year one or more employees
performing such services, and pays wages for such service in excess
of one hundred dollars ($100) during any calendar quarter.



677.  "Employer" also means any employing unit for which service is
performed in "employment" as defined by Section 605.



678.  "Employer" means any employing unit which pursuant to a
collective bargaining agreement between an employer and a labor
organization in the motion picture, radio, or television industry,
pays wages as provided in Section 926.5.


679.  (a) Notwithstanding Sections 606.5 and 678, for the purposes
of this code, "employer" means any employing unit that is a motion
picture payroll services company that pays and controls the payment
of wages of a motion picture production worker for services either to
a motion picture production company or to an allied motion picture
services company, and files a timely statement of its intent to be
the employer of motion picture production workers pursuant to
subdivision (b).
   (b) (1) Any employing unit meeting the requirements of a motion
picture payroll services company that intends to be treated as an
employer of motion picture production workers pursuant to subdivision
(a) shall file a statement with the department that declares its
intent to be the employer of motion picture production workers,
pursuant to this section, within 15 days after first paying wages to
the workers. The statement shall include identification of each
affiliated entity.
   (2) Any employing unit operating as a motion picture payroll
services company as of January 1, 2007, that intends to be treated as
an employer of motion picture production workers pursuant to this
section, shall file a statement with the department that declares its
intent to be the employer of motion picture production workers,
pursuant to this section, by January 15, 2007. The statement shall
include identification of each affiliated entity.
   (3) Any motion picture payroll company that quits business shall:
   (A) Within 10 days of quitting business:
   (i) File with the director a final return and report of wages of
its workers, as required by Section 1116.
   (ii) File all statements required by this subdivision.
   (B) Forty-five days in advance of quitting business, notify each
motion picture production company and allied motion picture services
company, with respect to which they have been treated as the employer
of the motion picture production workers, of its intent to quit
business.
   (4) The director may prevent a motion picture payroll services
company that fails to file a timely statement from being treated as
an employer of motion picture production workers, for a period not to
exceed the period for which the statement is required.
   (5) Any statement filed by a motion picture payroll services
company pursuant to this subdivision shall be applied to each
affiliated entity of the motion picture payroll services company in
existence at the time the statement is filed.
   (c) For each rating period beginning on or after January 1, 2007,
in which an employer operating as a motion picture payroll services
company obtains or attempts to obtain a more favorable rate of
contributions under this section in a manner that is due to
deliberate ignorance, reckless disregard, fraud, intent to evade,
misrepresentation, or willful nondisclosure, the director shall
assign the maximum contribution rate plus 2 percent for each
applicable rating period, the current rating period, and the
subsequent rating period. Contributions paid in excess of the maximum
rate under this section shall not be credited to the employing unit'
s reserve account.
   (d) (1) On and after January 1, 2007, whenever a motion picture
payroll services company creates or acquires a motion picture payroll
services company, or acquires substantially all of the assets of a
motion picture payroll services company, the created or acquired
motion picture payroll services company shall:
   (A) Constitute a separate employing unit, notwithstanding Sections
135.1 and 135.2.
   (B) Have its reserve account and rate of contributions determined
in accordance with subdivision (e).
   (C) Notify the department of the entity being created or acquired
and the nature of its affiliation to that entity.
   (2) The department may promulgate regulations requiring a motion
picture payroll services company, prior to the creation or
acquisition of a motion picture payroll services company that will be
an affiliated entity, to seek the approval of the department to
apply this section to the created or acquired entity.
   (e) When a motion picture payroll services company transfers all
or part of its business or payroll to another motion picture payroll
services company the reserve account attributable to the transferor
shall be transferred to the transferee motion picture payroll
services company, and the transferee's rate of contribution shall be
determined in accordance with Section 1052. The transferee shall
notify the department within 15 days of the transfer of the business
or payroll.
   (f) For purposes of this section:
   (1) "Affiliated entity" means any one or more motion picture
payroll services company or companies that are united by factors of
common ownership, management, or control as prescribed by Section
1061.
   (2) "Allied motion picture services company" means any person
engaged in an industry closely allied with, and whose work is
integral to, a motion picture production company in the development,
production, or postproduction of a motion picture, excluding the
distribution of the completed motion picture and any activity
occurring thereafter, and who hires from the same pool of craft and
guild or union workers, actors, or extras as a motion picture
production company.
   (3) "Motion picture" means a motion picture of any type,
including, but not limited to, a theatrical motion picture, a
television production, a television commercial, or a music video,
regardless of its theme or the technology used in its production or
distribution.
   (4) (A) "Motion picture payroll services company" means any
employing unit that directly or through its affiliated entities meets
all of the following criteria:
   (i) Contractually provides the services of motion picture
production workers to a motion picture production company or to an
allied motion picture services company.
   (ii) Is a signatory to a collective bargaining agreement for one
or more of its clients.
   (iii) Controls the payment of wages to the motion picture
production workers and pays those wages from its own account or
accounts.
   (iv) Is contractually obligated to pay wages to the motion picture
production workers without regard to payment or reimbursement by the
motion picture production company or allied motion picture services
company.
   (v) At least 80 percent of the wages paid by the motion picture
payroll services company each calendar year are paid to workers
associated between contracts with motion picture production companies
and motion picture payroll services companies.
   (B) If the director determines that any employing unit is
operating as a motion picture payroll services company but is failing
to comply with any of the provisions of subparagraph (A) of
paragraph (4), the employing unit is subject to determination of the
employer-employee relationship pursuant to this code. When the
director's ruling becomes final, the director may preclude the
employing unit from being classified as a motion picture payroll
services company pursuant to this section for up to three years from
the date of the determination.
   (5) "Motion picture production company" means any employing unit
engaged in the development, production, and postproduction of a
motion picture, excluding the distribution of the completed motion
picture and any activities occurring thereafter.
   (6) "Motion picture production worker" means an individual who
provides services to a motion picture production company or allied
motion picture services company and who, with regard to those
services, is reported under this part as an employee by the motion
picture payroll services company. An individual who has been reported
as an employee by the motion picture payroll services company,
without regard to the individual's status as an employee or
independent contractor, shall be the employee of the motion picture
payroll services company for the purposes of this code throughout the
contractual period with the motion picture payroll services company.
   (7) "Wages" shall have the same meaning given the term in Article
2 (commencing with Section 926) of Chapter 4 of Part 1 of Division 1,
and shall include residual payments.
   (g) If the director determines that an entity does not meet any
requirement of this section, the director shall give notice of its
determination to that entity pursuant to Section 1206. The notice
shall contain a statement of the facts and circumstances upon which
the determination was made. The entity so noticed shall have the
right to petition for review of the director's determination within
30 days of the notice, as provided in Section 1222.
   (h) The director shall prescribe the form and manner of the
statements and information required to be filed or reported by this
section.



680.  (a) Notwithstanding any other provision of law, when motion
picture production workers are employed by one or more affiliated
entities of a motion picture payroll services company that has
elected to be treated and is being treated as the employer of those
motion picture production workers pursuant to Section 679, the motion
picture payroll services company may apply to the director for
approval of the extension of an existing voluntary plan or plans for
the payment of disability benefits to all motion picture production
workers employed by all of the affiliated entities of the motion
picture payroll services company. The director shall approve the
extension of the voluntary plan to all of the motion picture
production workers of all of the affiliated entities if he or she
finds all of the following exist:
   (1) The voluntary plan to be extended was in existence at the time
of the election of the motion picture payroll services company to be
treated as the employer of motion picture production workers
pursuant to Section 679.
   (2) The rights afforded to the covered employees are greater than
those provided for in Chapter 2 (commencing with Section 2625) and
Chapter 7 (commencing with Section 3300) of Part 2 of Division 1.
   (3) The plan has been made available to all of the motion picture
production workers of the employer employed in this state.
   (4) If the plan provides for insurance, the form of the insurance
policies to be issued has been approved by the Insurance Commissioner
and the policies are to be issued by an admitted disability insurer.
   (5) The motion picture payroll services company has consented to
the extension of the plan and has agreed to make the payroll
deductions required, if any, and transmit the proceeds to the plan
insurer, if any.
   (6) The plan provides for the inclusion of future employees in the
manner described in subparagraph (A) of paragraph (2) of subdivision
(b).
   (7) (A) The plan will be in effect for a period of not less than
one year and, thereafter, continuously, unless the director finds
that the motion picture payroll services company or a majority of
motion picture production workers employed in this state covered by
the plan has given notice of withdrawal from the plan. The notice
shall be filed in writing with the director and shall be effective
only on the anniversary of the effective date of the plan next
following the filing of the notice, but in any event not less than 30
days from the date of the filing of the notice.
   (B) Notwithstanding the provisions of subparagraph (A), the plan
may be withdrawn on the operative date of any law increasing the
benefit amounts provided by Sections 2653 and 2655 or on the
operative date of any change in the rate of worker contributions as
determined by Section 984, if notice of the withdrawal from the plan
is transmitted to the director not less than 30 days prior to the
operative date of that law or change. If the plan is not withdrawn on
30 days' notice because of the enactment of a law increasing the
benefit amounts provided by Sections 2653 and 2655 or because of a
change in the rate of worker contributions as determined by Section
984, the plan shall be amended to conform to that increase or change
on the operative date of the increase or change.
   (8) The amount of deductions from the wages of an employee in
effect for any plan shall not be increased on a date other than an
anniversary date of the effective date of the plan, except to the
extent that any increase in the deductions from the wages of an
employee allowed by Section 3260 permits that amount to exceed the
amount of deductions in effect. The amount of deductions, for the
purpose of providing coverage under the plan, shall not exceed that
which would be required by Sections 984 and 985 if the employee were
not covered by the plan.
   (9) The approval of the extension of the plan will not result in a
substantial selection of risks adverse to the Disability Fund.
   (b) The extension of a plan approved by the director pursuant to
subdivision (a) shall be deemed to have also met the consent
requirements of Section 3257 if both of the following requirements
are met:
   (1) The plan met the consent requirements of Section 3257 when
initially adopted.
   (2) The plan provides for both of the following:
   (A) Each employee to whom the plan is applicable shall be given
written notice of his or her right to reject coverage under the plan
and a written statement setting forth the essential features of the
plan prior to or at the time of employment. The form of the notice
and of the statement shall be approved by the director.
   (B) On or before January 31 of each calendar year, each employee
shall be given written notice, in a form approved by the director, of
his or her right to withdraw from the plan at the beginning of any
calendar quarter upon giving reasonable notice in writing directed to
the motion picture payroll services company.



682.  (a) "Employer" also means any employing unit which employs
individuals to perform domestic service in a private home, local
college club, or local chapter of a college fraternity or sorority
and pays wages in cash of one thousand dollars ($1,000) or more for
such service during any calendar quarter in the calendar year or the
preceding calendar year.
   (b) Any employing unit which qualifies as an employer under this
section shall not be treated as an employer with respect to wages
paid for any service other than domestic service specified by this
section unless such employing unit also qualifies as an employer with
respect to such other service under Section 675, 676, 677, or 678.



683.  "Employer" also means any employing unit which employs
individuals to perform domestic service comprising in-home supportive
services under Article 7 (commencing with Section 12300), Chapter 3,
Part 3, Division 9 of the Welfare and Institutions Code and pays
wages in cash of one thousand dollars ($1,000) or more for such
service during any calendar quarter in the calendar year or the
preceding calendar year, and is one of the following:
   (a) The recipient of such services, if the state or county makes
or provides for direct payment to a provider chosen by the recipient
or to the recipient of such services for the purchase of services,
subject to the provisions of Section 12302.2 of the Welfare and
Institutions Code.
   (b) The individual or entity with whom a county contracts to
provide in-home supportive services.
   (c) Any county which hires and directs in-home supportive
personnel in accordance with established county civil service
requirements or merit system requirements for those counties not
having civil service systems.



684.  (a) Solely for the purposes of Part 2 (commencing with Section
2601) of this division, "employer" also means any employing unit
which employs individuals to perform domestic service in a private
home, local college club, or local chapter of a college fraternity or
sorority and pays wages in cash of seven hundred fifty dollars
($750) or more to individuals employed in such service during any
calendar quarter in the calendar year or the preceding calendar year.
   (b) Any employing unit which qualifies as an employer under this
section shall not be treated as an employer with respect to wages
paid for any service other than domestic service specified by this
section unless such employing unit also qualifies as an employer with
respect to such other service under Section 675, 676, 677, or 678.




685.  Solely for the purposes of Part 2 (commencing with Section
2601) of this division, "employer" also means any employing unit
which employs individuals to perform domestic service comprising
in-home supportive services under Article 7 (commencing with Section
12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and
Institutions Code and pays wages in cash of seven hundred fifty
dollars ($750) or more to individuals employed in such service during
any calendar quarter in the calendar year or preceding calendar
year, and is one of the following:
   (a) The recipient of the services, if the state or county makes or
provides for direct payment to a provider chosen by the recipient or
to the recipient of the services for the purchase of services,
subject to the provisions of Section 12302.2 of the Welfare and
Institutions Code.
   (b) The individual or entity with which a county contracts to
provide in-home supportive services.
   (c) Any county which hires and directs in-home supportive
personnel in accordance with established county civil service
requirements or merit system requirements for those counties not
having civil service systems.



686.  "Employer" also means any person contracting for the creation
of a specially ordered or commissioned work of authorship when the
parties expressly agree in a written instrument signed by them that
the work shall be considered a work made for hire, as defined in
Section 101 of Title 17 of the United States Code, and the ordering
or commissioning party obtains ownership of all of the rights
comprised in the copyright in the work. The ordering or commissioning
party shall be the employer of the author of the work for the
purposes of this part.


687.2.  Notwithstanding any other provision of law, an employment
agency, as defined in paragraph (3) of subdivision (a) or subdivision
(h) of Section 1812.501 of the Civil Code, shall not be deemed to be
the employer of the domestic workers for whom it procures, offers,
refers, provides, or attempts to provide work if all of the following
factors exist:
   (a) There is a signed contract or agreement between the employment
agency and the domestic worker that contains, at a minimum,
provisions that specify all of the following:
   (1) That the employment agency shall assist the domestic worker in
securing work.
   (2) How the employment agency's referral fee shall be paid.
   (3) That the domestic worker is free to sign an agreement with
other employment agencies and to perform domestic work for persons
not referred by the employment agency.
   (b) The domestic worker informs the employment agency of any
restrictions on hours, location, conditions, or type of work he or
she will accept and the domestic worker is free to select or reject
any work opportunity procured, offered, referred, or provided by the
employment agency.
   (c) The domestic worker is free to renegotiate with the person
hiring him or her the amount proposed to be paid for the work.
   (d) The domestic worker does not receive any training from the
employment agency with respect to the performance of domestic work.
However, an employment agency may provide a voluntary orientation
session in which the relationship between the employment agency and
the domestic worker, including the employment agency's administrative
and operating procedures, and the provisions of the contract or
agreement between the employment agency and the domestic worker are
explained.
   (e) The domestic worker performs domestic work without any
direction, control, or supervision exercised by the employment agency
with respect to the manner and means of performing the domestic
work.
   The following actions exercised by an employment agency shall not
be considered to be the exercise of direction, control, or
supervision:
   (1) Informing the domestic worker about the services to be
provided and the conditions of work specified by the person seeking
to hire a domestic worker.
   (2) Contacting the person who has hired the domestic worker to
determine whether that person is satisfied with the agency's referral
service. This contact shall not be used to identify improvements
needed in a worker's performance and to then discipline or train the
worker regarding the performance of domestic work.
   (3) Informing the domestic worker of the time during which new
referrals are available.
   (4) Requesting the domestic worker to inform the employment agency
if the domestic worker is unable to perform the work accepted.
   (f) The employment agency does not provide tools, supplies, or
equipment necessary to perform the domestic work.
   (g) The domestic worker is not obligated to pay the employment
agency's referral fee, and the employment agency is not obligated to
pay the domestic worker if the person for whom the services were
performed fails or refuses to pay for the domestic work.
   (h) Payments for domestic services are made directly to either the
domestic worker or to the employment agency. Payments made directly
to the employment agency shall be deposited into a trust account
until payment can be made to the domestic worker. Payments made to
the domestic worker by the employment agency shall not be paid from
any of the employment agency's business accounts.
   (i) The relationship between a domestic worker and the person for
whom the domestic worker performs services may only be terminated by
either of those parties and not by the employment agency that
referred the domestic worker. However, an employment agency may
decline to make additional referrals to a particular domestic worker,
and the domestic worker may decline to accept a particular referral.

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701.  An employing unit, not otherwise subject to this division,
which files with the director its written election to become an
employer for not less than two calendar years, shall, with the
written approval of the election by the director, become an employer
subject to this division to the same extent as other employers as of
the date stated in the approval.



702.  Except as provided by Sections 702.1, 709, and 710, any
employing unit for which services that do not constitute employment
are performed, may file with the director a written election that all
such services performed by individuals in its employ in one or more
distinct establishments or places of business shall be deemed to
constitute employment by an employer for all the purposes of this
division for not less than two calendar years. Upon the written
approval of the election by the director, such services shall be
deemed to constitute employment subject to this division from and
after the date stated in the approval.


702.1.  (a) As used in this section, "nonprofit organization" means
any corporation, community chest, fund, or foundation for which
services that constitute employment under Section 608 are performed
and for which other services that do not constitute employment are
performed, or any nonprofit organization described in Section 608 for
which all services performed do not constitute employment.
   (b) No election filed by a nonprofit organization under Section
702 shall be effective for service performed after December 31, 1971.
All elections for coverage filed by a nonprofit organization under
Section 702 prior to January 1, 1972, shall be terminated effective
December 31, 1971.
   (c) Any nonprofit organization for which any services that do not
constitute employment are performed may, when requested by a written
petition signed by a majority of its employees to be covered by the
election, file with the director a written election that the services
performed in one or more distinct establishments or places of
business and to be covered by the election shall be deemed to
constitute employment by an employer for all the purposes of this
division for not less than two calendar years. If the director finds
that a majority of the employees to be covered by the election have
signed the petition, a nonprofit organization shall, upon the written
approval of the director, become an employer with respect to such
services subject to this division to the same extent as other
employers, and services performed by its employees covered by the
election, shall constitute employment subject to this division.
Beginning at that time it shall withhold from the wages of employees
covered by the election the contributions required for unemployment
compensation disability benefits.
   (d) A nonprofit organization may exclude from coverage under an
election pursuant to this section any service excluded under Section
634.5.
   (e) Notwithstanding the provisions of subdivision (d), a nonprofit
organization shall not exclude from unemployment compensation
disability coverage under an election pursuant to this section any
service that is included in "employment" for the purposes of Part 2
(commencing with Section 2601) of this division.
   (f) In lieu of the contributions required of employers, each
nonprofit organization that has elected coverage under this section
may elect any method of financing coverage by an election under this
section that is permitted under Section 803. Subdivision (c) of
Section 801 shall apply to any such election under Section 803.
   (g) Except as inconsistent with the provisions of this section,
the provisions of this division and authorized regulations shall
apply to any matter arising pursuant to this section.



702.5.  Any employing unit for which services that do not constitute
employment under Section 631 are performed, may file with the
director a written election, agreed to by both the employing unit and
the individuals in its employ specified in Section 631, that all
such services performed by such individuals in one or more distinct
establishments or places of business shall be deemed to constitute
employment by an employer for all the purposes of Part 2 (commencing
with Section 2601) of this division. Upon the written approval of the
election by the director, such services shall be deemed to
constitute employment subject to such part from and after the date
stated in the approval. Sections 704 and 707 shall apply to elections
under this section.



702.6.  (a) Any employing unit who is an employer under this
division may file with the director a written election to cover, for
the purposes of Part 2 (commencing with Section 2601) only, services
performed by any of the following:
   (1) All eligible employees who are a part of a labor organization,
provided the election is the result of a negotiated agreement
between the employer and the recognized employee organization.
   (2) All eligible employees in its employ in one or more distinct
establishments or places of business who are not part of a labor
organization, when the election is requested by a written petition
signed by a majority of the eligible employees to be covered by the
election.
   (b) "Eligible employee," as used in this section, means an
employee who is a California resident whose services are covered
under the unemployment compensation laws of another state which does
not have a disability insurance program, and who is an "employee," as
defined in Section 13004, for whom the employer complies with the
personal income tax withholding provisions of Division 6 (commencing
with Section 13000).
   (c) Upon the filing of an election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees who are subject to the
election shall be deemed to constitute employment subject to that
part. Sections 704, 707, 986, and 2903 shall apply to elections under
this section.



703.  Services not included within "employment" and performed
entirely without this State, with respect to no part of which
contributions are required and paid under an unemployment
compensation law of any other state or of the Federal Government,
shall be deemed to be employment if the individual performing such
services is a resident of this State and the director approves the
election of the employing unit for whom the services are performed
that the entire service of such individual shall be deemed to be
employment subject to this division. Such election shall be for the
period, made in the manner, and subject to termination as provided in
this article for other elections of coverage.



704.  The director shall not approve an election under Section 701,
702, 702.1, 702.5, 703, 708, or 708.5 if he or she finds that any of
the following conditions exist:
   (a) The self-employed individual is currently unable to perform
his or her regular and customary work due to injury or illness.
   (b) The employing unit or self-employed individual is not normally
and continuously engaged in a regular trade, business, or
occupation.
   (c) The employing unit or self-employed individual intends to
discontinue the regular trade, business or occupation within eight
calendar quarters.
   (d) The regular trade, business, or occupation of the employing
unit or self-employed individual is seasonal in its operations.
   (e) The major portion of the self-employed individual's
remuneration is not derived from his or her trade, business, or
occupation.
   (f) The self-employed individual is unable to provide a copy of
his or her Internal Revenue Service Schedule SE as reported on or
before April 15 of the preceding year showing a net profit of at
least four thousand six hundred dollars ($4,600) or to certify to an
average net profit of at least one thousand one hundred fifty dollars
($1,150) per quarter since becoming self-employed or for the
preceding four quarters, whichever period is less.
   (g) The employing unit or self-employed individual has failed to
make a return or report, or to pay contributions within the time
required by this division and there is an unpaid amount of
contributions owing by the employing unit or self-employed
individual.
   (h) (1) A prior elective coverage agreement entered into pursuant
to Section 708 or 708.5 has been terminated by the department under
Section 704.1 or by means of a written application for termination as
required by this division, and the individual has not completed a
waiting period of 18 consecutive months from the date of termination.
   (2) The waiting period for reinstatement to the elective coverage
program may be waived for any individual who becomes eligible for
coverage after being terminated under paragraph (1), (2), (4), or (5)
of subdivision (a) of Section 704.1, upon receipt by the department
of an application for coverage to be effective the first day of the
quarter in which the application is received.
   (i) The employing unit or any officer or agent of or person having
charge of the affairs of the employing unit, or the self-employed
individual has been convicted within the preceding eight consecutive
calendar quarters of any violation under Chapter 10 (commencing with
Section 2101). For the purposes of this subdivision, a plea or
verdict of guilty or a conviction following a plea of nolo contendere
is deemed to be a conviction irrespective of whether an order
granting probation or other order is made suspending the imposition
of the sentence or whether sentence is imposed but execution thereof
is suspended.
   (j) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.



704.1.  (a) Notwithstanding any other provision of this division,
the director may terminate any elective coverage agreement under this
article if he or she finds that any of the following conditions
exist:
   (1) The employing unit or self-employed individual is not normally
and continuously engaged in a regular trade, business, or
occupation.
   (2) The employing unit or self-employed individual has
discontinued the regular trade, business, or occupation.
   (3) The regular trade, business, or occupation of the employing
unit or self-employed individual is seasonal in its operations.
   This paragraph shall not apply to any public entity.
   (4) The major portion of the self-employed individual's
remuneration is not derived from his or her trade, business, or
occupation.
   (5) The self-employed individual reports a net profit of less than
four thousand six hundred dollars ($4,600) on his or her Internal
Revenue Service Schedule SE for a third consecutive year.
   (6) The employing unit or self-employed individual has failed to
make a return or report, or to pay contributions within the time
required by this division and there is an unpaid amount of
contributions owing by the employing unit or self-employed
individual, except when the elective coverage agreement has been in
effect for less than two complete calendar years.
   (7) The employing unit or self-employed individual, or a
representative thereof, is found by the director to have filed a
false statement in order to be considered eligible for elective
coverage.
   (8) The employing unit or any officer or agent of or person having
charge of the affairs of the employing unit, or the self-employed
individual is convicted of any violation pursuant to Chapter 10
(commencing with Section 2101). For the purposes of this paragraph, a
plea or verdict of guilty or a conviction following a plea of nolo
contendere is deemed to be a conviction irrespective of whether an
order granting probation or other order is made suspending the
imposition of the sentence or whether sentence is imposed but
execution thereof is suspended.
   (b) The director shall give to the employing unit, or to the
self-employed individual, a written notice pursuant to Section 1206
of the director's termination of the elective coverage agreement
under this section. The date of termination may be the end of the
calendar quarter immediately preceding the existence of any condition
specified in subdivision (a), or the end of any subsequent calendar
quarter thereafter, as determined by the director.
   Any termination of elective coverage shall not affect the
liability of the employing unit or self-employed individual for any
contributions due, owing, and unpaid to the department.
   (c) Sections 1222, 1223, and 1224 shall apply to matters arising
under this section.
   (d) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.



704.2.  For purposes of Sections 704 and 704.1:
   (a) "Normally and continuously engaged in a regular trade,
business, or occupation" means both of the following:
   (1) Regularly performing services and engaging in an uninterrupted
pattern of work that is customary for the individual's trade,
business, or occupation.
   (2) In the case of a self-employed individual or individual who is
an employer is in a trade, business, or occupation that requires a
valid and active license, that individual has been issued that
license. An individual operating a business without a required
license shall not be considered normally engaged in a trade,
business, or occupation.
   (b) "Seasonal in its operations" means any of the following:
   (1) The trade, business, or occupation is not continuous or
carried on throughout the year.
   (2) The operation of the trade, business, or occupation is
temporarily or intermittently suspended for regularly recurring
periods of time.
   (3) The performance of services in the trade, business, or
occupation is regularly suspended due to weather, climate, or other
conditions.


705.  (a) An elective coverage agreement approved by the director
pursuant to any section of this article may be terminated as of
January 1st of any calendar year only if the agreement has been in
effect for two calendar years and if the employing unit or
self-employed individual, on or before the 31st day of January of
that year, has filed with the director a written application for
termination.
   (b) An elective coverage agreement entered into prior to January
1, 1994, pursuant to Section 708 or 708.5 may be terminated on
January 1, 1994, if the self-employed individual files a written
application for termination with the director on or before June 30,
1994.



706.  The director may for good cause waive the requirement of
Section 705 that a written application for termination shall be filed
on or before the thirty-first day of January.



707.  Every employing unit which files an election to become an
employer pursuant to Section 701, 702, 702.1, 702.5, 703, 709, or
710, or an application for termination pursuant to Section 705, shall
post and maintain printed notices of such election or application on
his or her premises, as prescribed by authorized regulation.
Individuals in the employ of any employing unit which files an
election to become an employer shall be given a reasonable
opportunity to file objections or to be heard in the matter prior to
the director's approval of the election.




708.  (a) Any individual who is an employer under this division or
any two or more individuals who have so qualified may file with the
director a written election that their services shall be deemed to be
services performed by individuals in employment for an employer for
all the purposes of this division. Upon the approval of the election
by the director, the services of those individuals shall be deemed to
constitute employment for an employer for all of the purposes of
this division. Regardless of their actual earnings, for the purposes
of computing benefit rights and contributions under this division,
they shall be deemed to have received the following remuneration for
each calendar quarter:
   (1) For purposes of unemployment insurance, the highest amount of
wages required to be entitled to the maximum benefit amount provided
in Section 1280.
   (2) For purposes of disability insurance, the highest amount of
wages required to be entitled to the maximum benefit amount provided
in Section 2655.
   (A) For disability insurance contributions on or after July 1,
1994, the quarterly contribution shall be the product of one-fourth
of the amount of net profit, but not less than one thousand one
hundred fifty dollars ($1,150) except when subparagraph (B) applies,
reported on or before April 15 of the preceding year as declared on
the Internal Revenue Service Schedule SE filed by an individual who
is an employer under this division and the contribution rate
established pursuant to Section 984.5, except as provided by Section
985. On January 1, 1995, quarterly income credits for the period from
July 1, 1993, to June 30, 1994, inclusive, shall be changed to
one-fourth of the amount of the net profit or four thousand six
hundred dollars ($4,600), whichever is greater, reported on or before
April 15, 1993, as declared on the Internal Revenue Service Schedule
SE for the 1992 taxable year filed by each individual having an
elective coverage agreement in effect for that period or any portion
thereof. If no Internal Revenue Service Schedule SE was filed, the
individual shall be assigned a quarterly income credit of one
thousand one hundred fifty dollars ($1,150). Quarterly income credits
for this period shall not exceed seven thousand nine hundred
forty-two dollars ($7,942). If any quarterly income credit for the
period from July 1, 1993, to June 30, 1994, inclusive, was reduced
prior to January 1, 1995, the amended income credit shall be reduced
proportionately. Benefits payable for periods of disability
commencing on or after January 1, 1995, shall be based on Section
2655. For purposes of this division, income credits shall be included
in the term "wages."
   (B) The self-employed individual shall not pay contributions for
periods of any disability, including periods for which some services
are performed while disabled. The self-employed individual shall file
a quarterly report of wages and certify as to the period of
disability in order to maintain eligibility for elective disability
insurance coverage and benefits. During periods of disability, the
self-employed individual shall reduce his or her quarterly
contributions by dividing the quarterly contribution amount by 91 to
compute the daily contribution amount, and the daily contribution
amount shall be multiplied by the number of days disabled to compute
the amount by which the quarterly contributions shall be reduced. The
department shall reduce income credits utilizing the same
calculation method.
   (b) Any individual who is an employer under this division or any
two or more individuals who have so qualified may file with the
director a written election that their services shall be deemed to be
services performed by individuals in employment for an employer for
the purposes of Part 2 (commencing with Section 2601) only. Upon the
approval of the election by the director, the services of those
individuals shall be deemed to constitute employment for an employer
for the purposes of Part 2 (commencing with Section 2601) only.
Regardless of their actual earnings, for the purposes of computing
disability benefit rights and worker contributions, they shall be
deemed to have received remuneration for each calendar quarter the
highest amount of wages required to be entitled to the maximum
benefit award provided in Section 2655. For contributions on or after
July 1, 1994, the quarterly contribution shall be the product of
one-fourth of the amount of net profit, but not less than one
thousand one hundred fifty dollars ($1,150), except when subparagraph
(B) of paragraph (2) of subdivision (a) applies, reported on or
before April 15 of the preceding year as declared on the Internal
Revenue Service Schedule SE filed by an individual who is an employer
under this division and the contribution rate established pursuant
to Section 984.5, except as provided by Section 985. The quarterly
contribution shall be reduced as set forth in subparagraph (B) of
paragraph (2) of subdivision (a) if a disability occurred during the
quarter for which payment is being made. On January 1, 1995,
quarterly income credits for the period from July 1, 1993, to June
30, 1994, inclusive, shall be changed to one-fourth of the amount of
the net profit or four thousand six hundred dollars ($4,600),
whichever is greater, reported on or before April 15, 1993, as
declared on the Internal Revenue Service Schedule SE for the 1992
taxable year filed by each individual having an elective coverage
agreement in effect for that period or any portion thereof. If no
Internal Revenue Service Schedule SE was filed, the individual shall
be assigned a quarterly income credit of one thousand one hundred
fifty dollars ($1,150). Quarterly income credits for this period
shall not exceed seven thousand nine hundred forty-two dollars
($7,942). If quarterly income credits were reduced prior to January
1, 1995, the amended income credits shall be reduced proportionately.
Benefits payable for periods of disability commencing on or after
January 1, 1995, shall be based on Section 2655. For purposes of this
division, income credits shall be included in the term "wages."
   (c) (1) Any individual applying for or continuing elective
coverage under this section shall be requested to sign an annual
statement authorizing the department to verify the net profit
declared on his or her Internal Revenue Service Schedule SE. Failure
of the individual to sign a statement authorizing the department to
verify income shall result in the individual being assigned an annual
income level of four thousand six hundred dollars ($4,600) for
contribution and benefit purposes.
   (2) Any individual applying for elective coverage shall submit a
copy of his or her Internal Revenue Service Schedule SE filed on or
before April 15 of the preceding year with his or her application for
elective coverage in order to establish first-year contributions and
benefits in excess of the minimum required to qualify for elective
coverage.
   (d) Any self-employed individual continuing elective coverage who
fails to file an Internal Revenue Service Schedule SE by April 15 of
each calendar year is required to remit contributions based upon the
last year the self-employed individual filed an Internal Revenue
Service Schedule SE.
   (e) Any self-employed individual who has not yet filed an Internal
Revenue Service Schedule SE shall be assigned an annual income level
of four thousand six hundred dollars ($4,600) for contribution and
benefit purposes.
   (f) Contributions required under this division are payable on and
after the date stated in the approval of the director. The director
may levy assessments under this division for any amount due when an
elective coverage agreement has been in effect for less than two
complete calendar years. Chapter 7 (commencing with Section 1701),
relating to the collection of amount due, shall apply to this
section.
   (g) No benefits shall be paid to any individual based upon
remuneration deemed to have been received pursuant to this section
unless all contributions due with respect to all remuneration deemed
to have been received by the individual pursuant to this section have
been paid to the department.
   (h) No benefits shall be paid to any individual based on elective
coverage income credits in his or her base period if his or her
elective coverage agreement has been terminated under paragraph (6)
of subdivision (a) of Section 704.1.
   (i) Notwithstanding subdivision (b) of Section 2627, no benefits
shall be paid to any individual covered under this section, with
respect to periods of disability commencing on or after January 1,
1994, until he or she has been unemployed and disabled for a waiting
period of seven consecutive days during each disability benefit
period.
   (j) Notwithstanding Section 2653, with respect to periods of
disability commencing on or after January 1, 1994, the maximum amount
of benefits payable to an individual covered under this section
during any one disability benefit period shall be 39 times his or her
weekly benefit amount, but in no case shall the total amount of
benefits payable be more than the total wages credited to the
individual during his or her disability base period. If the benefit
is not a multiple of one dollar ($1), it shall be computed to the
next higher multiple of one dollar ($1).
   (k) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.


708.5.  (a) Any individual who is self-employed, who is not an
employer as defined in any provision of Article 3 (commencing with
Section 675), of Chapter 3 of this part, and who receives the major
part of his or her remuneration from the trade, business, or
occupation in which he or she is self-employed, may file with the
director a written election that his or her services in connection
with his or her trade, business, or occupation shall be deemed to be
services performed by an individual in employment for an employer for
the purposes of Part 2 (commencing with Section 2601) only. Upon the
approval of the election by the director, the services of that
self-employed individual in connection with his or her trade,
business, or occupation shall be deemed to constitute employment for
an employer for the purposes of Part 2 only of this division.
Regardless of his or her actual earnings, for the purpose of
computing disability benefit rights and worker contributions, he or
she shall be deemed to have received remuneration for each calendar
quarter the highest amount of wages required to be entitled to the
maximum benefit award provided in Section 2655. For contributions on
or after July 1, 1994, the quarterly contribution shall be the
product of one-fourth of the amount of net profit, but not less than
one thousand one hundred fifty dollars ($1,150), except when
subparagraph (B) of paragraph (2) of subdivision (a) of Section 708
applies, reported on or before April 15 of the preceding year as
declared on the Internal Revenue Service Schedule SE filed by an
individual who is an employer under this division and the
contribution rate established pursuant to Section 984.5, except as
provided by Section 985. The quarterly contribution shall be reduced
as set forth in subparagraph (B) of paragraph (2) of subdivision (a)
of Section 708 if a disability occurred during the quarter for which
payment is being made. On January 1, 1995, quarterly income credits
for the period from July 1, 1993, to June 30, 1994, inclusive, shall
be changed to one-fourth of the net profit or four thousand six
hundred dollars ($4,600), whichever is greater, reported on or before
April 15, 1993, as declared on the Internal Revenue Service Schedule
SE for the 1992 taxable year filed by each individual having an
elective coverage agreement in effect for that period or any portion
thereof. If no Internal Revenue Service Schedule SE was filed, the
individual shall be assigned a quarterly income credit of one
thousand one hundred fifty dollars ($1,150). Quarterly income credits
for this period shall not exceed seven thousand nine hundred
forty-two dollars ($7,942). If quarterly income credits for the
period from July 1, 1993, to June 30, 1994, inclusive, were reduced
prior to January 1, 1995, the amended income credits shall be reduced
proportionately. Benefits payable for periods of disability
commencing on or after January 1, 1995, shall be based on the
provisions of Section 2655. For purposes of this division, income
credits shall be included in the term "wages."
   (b) (1) Any individual applying for or continuing elective
coverage under this section shall be requested to sign an annual
statement authorizing the department to verify the net profit
declared on his or her Internal Revenue Service Schedule SE. Failure
of the individual to sign a statement authorizing the department to
verify income shall result in the individual being assigned an annual
income level of four thousand six hundred dollars ($4,600) for
contribution and benefit purposes.
   (2) Any individual applying for elective coverage shall submit a
copy of his or her Internal Revenue Service Schedule SE filed on or
before April 15 of the preceding year with his or her application for
elective coverage in order to establish first-year contributions and
benefits in excess of the minimum required to qualify for elective
coverage.
   (c) Any self-employed individual continuing elective coverage who
fails to file an Internal Revenue Service Schedule SE by April 15 of
each calendar year is required to remit contributions based upon the
last year the self-employed individual filed an Internal Revenue
Service Schedule SE.
   (d) Any self-employed individual who has not yet filed an Internal
Revenue Service Schedule SE shall be assigned an annual income level
of four thousand six hundred dollars ($4,600) for contribution and
benefit purposes.
   (e) Worker contributions required under this division are payable
on and after the date stated in the approval of the director. The
director may levy assessments under this division for any amount due
when an elective coverage agreement has been in effect for less than
two complete calendar years. Chapter 7 (commencing with Section
1701), relating to the collection of amounts due, shall apply to this
section.
   (f) No benefits shall be paid to any individual based on elective
coverage income credits in his or her base period if his or her
elective coverage agreement has been terminated under paragraph (6)
of subdivision (a) of Section 704.1.
   (g) No benefits shall be paid to any individual based upon
remuneration deemed to have been received pursuant to this section
unless all contributions due with respect to all remuneration deemed
to have been received by that individual pursuant to this section
have been paid to the department.
   (h) Notwithstanding subdivision (b) of Section 2627, no benefits
shall be paid to any individual covered under this section, with
respect to periods of disability commencing on or after January 1,
1994, until he or she has been unemployed and disabled for a waiting
period of seven consecutive days during each disability benefit
period.
   (i) Notwithstanding Section 2653, with respect to periods of
disability commencing on or after January 1, 1994, the maximum amount
of benefits payable to an individual covered under this section
during any one disability benefit period shall be 39 times his or her
weekly benefit amount, but in no case shall the total amount of
benefits payable be more than the total wages credited to the
individual during his or her disability base period. If the benefit
is not a multiple of one dollar ($1), it shall be computed to the
next higher multiple of one dollar ($1).
   (j) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.



709.  Any local public entity located in this state specified in
paragraph (3) of subdivision (a) of Section 135 or Indian tribe
specified in paragraph (6) of subdivision (a) of Section 135 may
elect to become an employer subject to Part 2 (commencing with
Section 2601) of this division with respect to all its employees,
including those with civil service or tenure positions, and may file
its written election with the director. That election may be made on
its own motion by the appropriate governing board of the local public
entity or Indian tribe making the election, or may be made by the
governing board pursuant to a petition signed by a majority of the
employees (including those with civil service or tenure positions)
requesting the governing board to file an election with the director.
Upon the filing of an election, the filing local public entity or
Indian tribe shall, upon approval by the director, become an employer
subject to Part 2 (commencing with Section 2601) to the same extent
as other employers, and services performed by its employees,
including those with civil service or tenure positions, shall
constitute employment subject to that part. Beginning at that time,
it shall withhold from the wages of employees the contributions
required for unemployment compensation disability benefits.



710.  (a) Any public entity or Indian tribe for which services that
do constitute employment under Section 605 are performed and for
which other services that do not constitute employment are performed
may elect to become an employer subject to this part and Parts 3
(commencing with Section 3501) and 4 (commencing with Section 4001)
of this division for not less than two calendar years with respect to
those other services and to have those other services performed by
its employees constitute employment subject to this part and Parts 3
and 4 for that period. Upon the filing of an election the filing
public entity or Indian tribe shall, upon approval by the director,
become an employer subject to this part and Parts 3 and 4 with
respect to the services covered to the same extent as other
employers, and those services performed by its employees, including
those with civil service or tenure positions, shall constitute
employment subject to this part and Parts 3 and 4 effective on the
first day of the calendar quarter following the quarter in which the
election is filed.
   (b) The public entity or Indian tribe may exclude from coverage
under an election pursuant to this section any service excluded under
Section 634.5.
   (c) Any public entity or Indian tribe that has elected coverage
under this section may elect any method of financing coverage
otherwise permitted under Section 803 or Article 6 (commencing with
Section 821), but the same method of financing coverage shall apply
to all coverage by the public entity. An Indian tribe may make
separate elections for itself and for each subdivision, subsidiary,
or business enterprise wholly owned by that Indian tribe. Subdivision
(b) of Section 802 shall apply to any election under Section 803,
except that any election under Section 803 shall be terminated on the
effective date of the termination of an election for coverage under
this section.
   (d) The director may require from the public entity or Indian
tribe employment, financial, statistical, or other information and
reports, properly verified, as may be deemed necessary by the
director to carry out his or her duties under this division, which
shall be filed with the director at the time and in the manner
prescribed by him or her.
   (e) The director may tabulate and publish information obtained
pursuant to this section in statistical form and may divulge the name
of the public entity or Indian tribe.
   (f) The public entity or Indian tribe shall keep work records as
prescribed by the director for the proper administration of this
division.
   (g) Except as inconsistent with the provisions of this section,
the provisions of this division and authorized regulations shall
apply to any matter arising pursuant to this section.



710.4.  Notwithstanding the provisions of Section 709, any public
school employer, as defined in Section 3540.1 of the Government Code,
may elect to become an employer subject to Part 2 (commencing with
Section 2601) of this division, with respect to all employees who are
a part of an appropriate unit established pursuant to the provisions
of Chapter 10.7 (commencing with Section 3540) of Division 4 of
Title 1 of the Government Code, provided such election is the result
of a negotiated agreement between the public school employer and the
certified employee organization, as such terms are defined in Section
3540.1 of the Government Code. The public school employer may elect
to provide coverage to its management and confidential employees, as
such terms are defined in Section 3540.1 of the Government Code, and
to employees not a part of an appropriate unit, but such election
shall not be contingent upon coverage of other employees of the
public school employer.
   Upon filing of such an election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) of this division to the same extent as
other employers, and services performed by its employees, including
those with civil service or tenure positions, shall constitute
employment subject to such part. Beginning at that time, the public
school employer shall withhold from the wages of employees the
contributions required for unemployment compensation disability
benefits.


710.5.  Notwithstanding Section 709, any public agency, as defined
in Section 3501 of the Government Code, may elect to become an
employer subject to Part 2 (commencing with Section 2601) with
respect to all employees who are a part of an appropriate unit
established pursuant to Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1 of the Government Code, provided the election
is the result of a negotiated agreement between the public agency and
the recognized employee organization, as those terms are defined in
Section 3501 of the Government Code. The public agency employer also
may elect to provide coverage to its management and confidential
employees and to its employees who are not a part of an appropriate
unit, but the election shall not be contingent upon coverage of other
employees of the public agency employer.
   Upon filing of such an election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees who are subject to an
election under this section shall constitute employment subject to
that part.
   Sections 986 and 2903 shall apply to an employer making an
election pursuant to this section.



710.6.  (a) Notwithstanding Section 709, any Indian tribe as
described by subsection (u) of Section 3306 of Title 26 of the United
States Code, including those tribes not covered by the Tribal-State
Gaming Compact, may elect to become an employer subject to Part 2
(commencing with Section 2601) with respect to all employees who meet
either of the following conditions:
   (1) Are employed in one or more distinct establishments or places
of business.
   (2) Are a part of an employee bargaining unit provided the
election is the result of a negotiated agreement between the Indian
tribe and the recognized employee organization. The Indian tribe also
may elect to provide coverage to its management and confidential
employees and to its employees who are not a part of an employee
bargaining unit, but the election by the bargaining unit shall not be
contingent upon coverage of other employees of the Indian tribe.
   (b) Upon filing of an election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees who are subject to an
election under this section shall constitute employment subject to
that part. Sections 986 and 2903 apply to an employer making an
election pursuant to this section.
   (c) This section does not affect the requirement that Indian
tribes covered by the Tribal-State Gaming Compact be subject to Part
2 (commencing with Section 2601).


710.7.  (a) The State of California, as defined as an employer in
Section 3513 of the Government Code, may elect to become an employer
subject to Part 2 (commencing with Section 2601) with respect to all
employees who are part of an appropriate unit established pursuant to
Chapter 10 (commencing with Section 3512) of Division 4 of Title 1
of the Government Code, provided the election is the result of a
negotiated agreement between the State of California and the
recognized employee organization, as those terms are defined in
Section 3513 of the Government Code. The State of California may
elect to provide coverage to its management and confidential
employees and to its employees who are not part of an appropriate
unit, provided that the election is not contingent upon coverage of
other employees of the State of California.
   (b) Upon filing of the election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees including those with civil
service or tenure positions who are subject to an election under this
section shall constitute employment subject to that part.
   (c) Sections 986 and 2903 apply to an employer making an election
pursuant to this section.



710.8.  (a) (1) The Trustees of the California State University, as
defined as an employer in Section 3562 of the Government Code, shall
elect to become an employer subject to Part 2 (commencing with
Section 2601) with respect to all employees who are part of an
appropriate unit established pursuant to Chapter 12 (commencing with
Section 3560) of Division 4 of Title 1 of the Government Code,
provided the election is the result of a negotiated agreement between
the Trustees of the California State University and a recognized
employee organization of the university, as those terms are defined
in Section 3562 of the Government Code, or is approved through an
election held by a recognized employee organization of the university
in accordance with the election procedures set forth in subdivision
(d) of this section.
   (2) The Trustees of the California State University may also elect
to provide coverage to its management and confidential employees and
to its employees who are not a part of an appropriate unit, provided
that the election is not contingent upon coverage of other employees
of the Trustees of the California State University.
   (b) Upon filing of the election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees, including those with civil
service or tenure positions, who are subject to an election under
this section shall constitute employment subject to that part.
   (c) Sections 986 and 2903 apply to an employer making an election
pursuant to this section.
   (d) (1) Upon an affirmative vote of the governing body of the
employee organization, that governing body shall order that an
election shall be conducted by secret ballot, placing on the ballot
the question of whether the employees of that appropriate bargaining
unit do or do not desire that the Trustees of the California State
University shall become the employer of the employees of that
appropriate bargaining unit for the purposes of being subject to Part
2 (commencing with Section 2601).
   (2) The recognized employee organization of the California State
University shall certify the results of the election on the basis of
which ballot choice receives a majority of the valid votes cast.
There shall be printed on the ballot two choices, one which specifies
the desire to be covered by state disability insurance and one which
specifies the desire to continue to be covered by nonindustrial
disability insurance.
   (3) The ballot shall present the questions in a manner that
stipulates that, if the election determination is in favor of the
employees' desire to be covered by state disability insurance, this
determination is intended to supplant the nonindustrial disability
insurance program provided for in Article 1.2 (commencing with
Section 89529.15) of Chapter 5 of Part 55 of the Education Code,
after two calendar quarters have elapsed following the effective date
of the state disability insurance coverage.



710.9.  (a) (1) Notwithstanding Section 709, a community college
district established pursuant to Part 43 (commencing with Section
70900) of Division 7 of the Education Code may elect to become an
employer subject to Part 2 (commencing with Section 2601) with
respect to all employees who are part of an appropriate unit
established pursuant to Chapter 10.7 (commencing with Section 3540)
of Division 4 of Title 1 of the Government Code, if the election is
the result of a negotiated agreement between the community college
district and the certified employee organization, as that term is
defined in subdivision (b) of Section 3540.1 of the Government Code.
The community college district employer may also elect to provide
coverage to its management and confidential employees and to its
employees who are not part of an appropriate unit, but the election
shall not be contingent upon coverage of other employees of the
community college district employer.
   (2) Notwithstanding paragraph (1), a community college district
established pursuant to Part 43 (commencing with Section 70900) of
Division 7 of the Education Code that employs an academic employee,
as defined in Section 87001 of the Education Code, may elect to
provide coverage to permanent, part-time, or temporary academic
employees, including permanent, part-time, temporary, or substitute
faculty or instructors, but the election shall not be contingent upon
coverage of other academic employees of the community college
district employer.
   (b) Upon the filing of an election pursuant to subdivision (a),
the filing entity shall, upon approval by the director, become an
employer subject to Part 2 (commencing with Section 2601) to the same
extent as other employers, and services performed by its employees
who are subject to an election under this section shall constitute
employment subject to that part.
   (c) Sections 986 and 2903 shall apply to an employer making an
election pursuant to this section.



711.  No election filed by any public entity, as defined by Section
605, under any provision of this division shall be effective for
service performed after December 31, 1977, and included in
"employment" pursuant to Section 605, except that elections approved
under subdivision (b) of former Section 710 as in effect prior to
January 1, 1978, shall continue in effect as of such date with
respect to disability insurance coverage for those employee
classifications that are exempt from civil service or merit system
status who perform work equivalent to those employees of the building
trades crafts that are covered by collective-bargaining agreements
with respect to wages, hours, fringe benefits, and other terms and
conditions of employment. No election filed by any nonprofit
organization under any provision of this division shall be effective
for service performed after December 31, 1977, and included in
"employment" pursuant to Section 608. All such elections for coverage
filed prior to January 1, 1978, shall be terminated effective
December 31, 1977, except as otherwise provided by this section and
except that elections to reimburse benefits shall continue in effect,
subject to Section 803, unless terminated by the public entity or
nonprofit organization, and it shall remain liable for its
proportionate share of the additional cost of benefits paid, or of
the cost of benefits (including extended duration benefits and
federal-state extended benefits) paid and charged to its account in
the manner provided by Section 1026 which are based on wages paid for
services during the period of any election for reimbursement of
benefits.


712.  To the extent permitted by federal law, no contributions shall
be due from any nonprofit organization organized before 1960 which
received a retroactive determination after April 1, 1981, and before
April 1, 1982, that it has been a nonprofit organization from the
date it was organized, which made contributions with respect to
service performed in its employ prior to January 1, 1982, and which
elected a method of financing and elected to use prior contributions
until the additional cost of benefits reimbursable by or the cost of
benefits paid and reimbursable by the nonprofit organization together
with the benefits charged and chargeable to the reserve account of
the nonprofit organization as the result of its prior elective
coverage agreement exceed the contributions made by the nonprofit
organization and credited to its reserve account pursuant to its
prior elective coverage agreement.
   This section shall apply only to organizations which make the
elections described in this section within 120 days of the time they
are legally able to do so because of a change in federal law.



713.  To the extent permitted by federal law, no contributions shall
be due from any nonprofit organization which first became
compulsorily subject to this part on January 1, 1978, by reason of
the enactment of the federal "Unemployment Compensation Amendments of
1976" (Public Law 94-566) and the amendment to Section 634.5 by the
1978 portion of the 1977-78 Regular Session, which elects a method of
financing under Section 803 when such election first becomes
available, but not later than April 1, 1978, and which also elects to
use contributions paid pursuant to an elective coverage agreement of
such nonprofit organization in effect prior to January 1, 1978,
until the cost of benefits paid and reimbursable by the nonprofit
organization together with the benefits charged and chargeable to the
reserve account of the nonprofit organization as the result of its
prior elective coverage agreement exceed the contributions made by
the nonprofit organization and credited to its reserve account
pursuant to its prior elective coverage agreement.

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801.  (a) As used in this section, "nonprofit organization" means
any corporation, community chest, fund, or foundation for which
services are performed that constitute employment by compulsory
coverage under Section 608.
   (b) A nonprofit organization may, in lieu of the contributions
required of employers, elect to finance its liability for
unemployment compensation benefits, extended duration benefits, and
federal-state extended benefits coverage under this division by any
method of financing coverage that is permitted under Section 803.
   (c) Any election under Section 803 of a method for financing
coverage under this section shall, upon the written approval of the
director, take effect with respect to services performed from and
after the first day of the calendar quarter in which the election is
filed with the director, and shall continue in effect for not less
than five full calendar years. Thereafter the election under Section
803 may be terminated as of January 1 of any calendar year only if
the nonprofit organization, on or before the 31st day of January of
that year, has filed with the director a written application for
termination. The director may for good cause waive the requirement
that a written application for termination shall be filed on or
before the 31st day of January. In no event shall the director
approve any method of financing coverage by an election under Section
803 that would establish any different method of financing coverage
for any calendar quarter where an election for coverage made by a
nonprofit organization under Section 702.1 elects a method of
financing coverage permitted under Section 803.
   (d) To the extent permitted by federal law, a nonprofit
organization which elects reimbursement financing pursuant to this
section and which has a favorable reserve account on the date the
election takes effect shall not be liable for the reimbursement of
benefits pursuant to the election to the extent that the cost of
benefits does not exceed the amount in the reserve account.
Notwithstanding Section 1029, the reserve account shall not be
canceled and the cost of benefits otherwise chargeable to the
organization shall be charged to the reserve account until it is
exhausted.
   (e) Except as inconsistent with the provisions of this section,
the provisions of this division and authorized regulations shall
apply to any matter arising pursuant to this section.



801.5.  To the extent permitted by federal law, a nonprofit
organization which before the operative date of this section elected
reimbursement financing pursuant to Section 801 and which has a
favorable reserve account on the operative date of this section shall
not be liable for the reimbursement of benefits pursuant to the
election to the extent that the cost of benefits does not exceed the
amount in the reserve account. Notwithstanding Section 1029, the
reserve account shall not be canceled and the cost of benefits
otherwise chargeable to the organization shall be charged to the
reserve account until it is exhausted.



802.  (a) The State of California, any other public entity (as
defined by Section 605), or any Indian tribe as described by
subsection (u) of Section 3306 of Title 26 of the United States Code,
or any subdivision, subsidiary, or business enterprise wholly owned
by that Indian tribe, for which services are performed that do
constitute employment under Section 605 may, in lieu of the
contributions required of employers, elect to finance its liability
for unemployment compensation benefits, extended duration benefits,
and federal-state extended benefits with respect to those services by
any method of financing coverage that is permitted under Section
803.
   (b) Any election under Section 803 for financing coverage under
this section shall take effect with respect to services performed
from and after the first day of the calendar quarter in which the
election is filed with the director, and shall continue in effect for
not less than two full calendar years, unless the election is
cancelled by the director pursuant to paragraph (2) of subdivision
(g) of Section 803. Thereafter the election under Section 803 may be
terminated as of January 1 of any calendar year only if the state or
other public entity or Indian tribe, on or before the 31st day of
January of that year, has filed with the director a written
application for termination. The director may for good cause waive
the requirement that a written application for termination shall be
filed on or before the 31st day of January. In no event shall
financing coverage by an election under Section 803 be valid that
would establish any different method of financing coverage for any
calendar quarter where an election for coverage has also been made by
the state or other public entity or Indian tribe under any provision
of Article 4 (commencing with Section 701) of this chapter.
   (c) The director may require from the state and other public
entity and Indian tribe, including any agent thereof, such
employment, financial, statistical, or other information and reports,
properly verified, as may be deemed necessary by the director to
carry out his or her duties under this division, which shall be filed
with the director at the time and in the manner prescribed by him or
her.
   (d) The director may tabulate and publish information obtained
pursuant to this section in statistical form and may divulge the name
of the state or other public entity or Indian tribe.
   (e) The state and other public entity and Indian tribe, including
any agent thereof, shall keep any work records as may be prescribed
by the director for the proper administration of this division.
   (f) Except as inconsistent with the provisions of this section,
the provisions of this division and authorized regulations apply to
any matter arising pursuant to this section.



803.  (a) As used in this section, "entity" means any employing unit
that is authorized by any provision of Article 4 (commencing with
Section 701) or by Section 801 or 802 to elect a method of financing
coverage permitted by this section.
   (b) In lieu of the contributions required of employers, an entity
may elect any one of the following:
   (1) To pay into the Unemployment Fund the cost of benefits,
including extended duration benefits and federal-state extended
benefits, paid based on base period wages with respect to employment
for the entity and charged to its account in the manner provided by
Section 1026, pursuant to authorized regulations that shall prescribe
the rate or amount, time, manner, and method of payment or advance
payment or providing a good and sufficient bond to guarantee payment
of contributions.
   (2) Two or more entities may, pursuant to authorized regulations,
file an application with the director for the establishment of a
joint account for the purpose of determining the rate of
contributions they shall pay into the Unemployment Fund to reimburse
the fund for benefits paid with respect to employment for those
entities. The members of the joint account may share the cost of
benefits, including extended duration benefits and federal-state
extended benefits, paid based on the base period wages with respect
to employment for those members and charged to the joint account in
the manner provided by Section 1026. The director shall prescribe
authorized regulations for the establishment, maintenance, and
dissolution of joint accounts, and for the rate or amount, time,
manner, and method of payment or advance payment or providing a good
and sufficient bond to guarantee payment of contributions by the
members of joint accounts, on the cost of benefits charged in the
manner provided by Section 1026.
   (c) Sections 1030, 1031, 1032, and 1032.5, and any provision of
this division for the noncharging of benefits to the account of an
employer, shall not apply to an election under subdivision (b). The
cost of benefits charged to an entity under this section shall
include, but not be limited to, benefits or payments improperly paid
in excess of a weekly benefit amount, or in excess of a maximum
benefit amount, or otherwise in excess of the amount that should have
been paid, due to any computational or other error of any type by
the Employment Development Department or the Department of Benefit
Payments, whether or not the error could be anticipated.
   (d) The cost of benefits charged to an entity under this section
shall include credits of benefit overpayments actually collected by
the department, unless the department determines that the payment was
made because the entity, or an agent of the entity, was at fault for
failing to respond timely or adequately to requests of the
department for information relating to the individual claim for
unemployment compensation benefits. The department shall make this
determination when the entity or agent fails to respond timely or
adequately in two instances relating to the individual claim for
unemployment compensation benefits. This subdivision shall apply to
benefit overpayments established on or after October 22, 2013.
   (e) In making the payments prescribed by subdivision (b), there
shall be paid or credited to the Unemployment Fund, either in advance
or by way of reimbursement, as may be determined by the director,
any sums he or she estimates the Unemployment Fund will be entitled
to receive from each entity for each calendar quarter, reduced or
increased by any sum by which he or she finds that his or her
estimates for any prior calendar quarter were greater or less than
the amounts which should have been paid to the fund. The estimates
may be made upon the basis of statistical sampling, or any other
method as may be determined by the director.
   Upon making that determination, the director shall give notice of
the determination, pursuant to Section 1206, to the entity. The
director may cancel any contributions or portion thereof that he or
she finds has been erroneously determined.
   The director shall charge to any special fund, that is responsible
for the salary of any employee of an entity, the amount determined
by the director for which the fund is liable pursuant to this
section. The contributions due from the entity shall be paid from the
liable special fund, the General Fund, or other liable fund to the
Unemployment Fund by the Controller or other officer or person
responsible for disbursements on behalf of the entity within 30 days
of the date of mailing of the director's notice of determination to
the entity. The director for good cause may extend for not to exceed
60 days the time for paying without penalty the amount determined and
required to be paid. Contributions are due upon the date of mailing
of the notice of determination and are delinquent if not paid on or
before the 30th day following the date of mailing of the notice.
   (f) Any entity that fails to pay the contributions required within
the time required shall be liable for interest on the contributions
at the adjusted annual rate and by the method established pursuant to
Section 19521 of the Revenue and Taxation Code from and after the
date of delinquency until paid, and any entity that without good
cause fails to pay any contributions required within the time
required shall pay a penalty of 10 percent of the amount of the
contributions. If the entity fails to pay the contributions required
on or before the delinquency date, the director may assess the entity
for the amount required by the notice of determination. This
subdivision shall not apply to employers electing financing under
Section 821, for amounts due after December 31, 1992.
   (g) Article 8 (commencing with Section 1126) of Chapter 4 of Part
1 with respect to the assessment of contributions, and Chapter 7
(commencing with Section 1701) of Part 1 with respect to the
collection of contributions, shall apply to the assessments provided
by this section. Sections 1177 to 1184, inclusive, relating to
refunds and overpayments, shall apply to amounts paid to the
Unemployment Fund pursuant to this section. Sections 1222, 1223,
1224, 1241, and 1242 shall apply to matters arising under this
section.
   (h) (1) The director may terminate the election of any entity for
financing under this section if the entity is delinquent in the
payment of advances or reimbursements required by the director under
this section. After any termination the entity may again make an
election pursuant to this section but only if it is not delinquent in
the payment of contributions and not delinquent in the payment of
advances or reimbursements required by the director under this
section.
   (2) In the case of an Indian tribe (as described by subsection (u)
of Section 3306 of Title 26 of the United States Code), the director
shall terminate all elections for the tribe and all subdivisions,
subsidiaries, and business enterprises wholly owned by that tribe if
the tribe or any subdivision, subsidiary, or business enterprise
wholly owned by that tribe is more than 90 days delinquent in the
payment of contributions, bonds, advances, reimbursements, or
applicable penalties or interest required under this code, after
notice to the tribe. After any termination the Indian tribe may again
make an election pursuant to this section but only if it is not
delinquent in the payment of contributions, bonds, advances,
reimbursements, or applicable penalties or interest required under
this code.
   (i) Notwithstanding any other provision of this section, no entity
shall be liable for that portion of any extended duration benefits
or federal-state extended benefits that is reimbursed or reimbursable
by the federal government to the State of California.
   (j) After the termination of any election under this section, the
entity shall remain liable for its proportionate share of the cost of
benefits paid and charged to its account in the manner provided by
Section 1026, which are based on wages paid for services during the
period of the election. That liability may be charged against any
remaining balance of a prior reserve account used by the entity
pursuant to Section 712 or 713. Any portion of the remaining balance
shall be included in the reserve account of the entity following any
termination of an election under this section which occurs prior to
the expiration of a period of three consecutive years commencing with
the effective date of the election. For purposes of Section 982, the
period of an election under Section 803 shall, to the extent
permitted by federal law, be included as a period during which a
reserve account has been subject to benefit charges.



803.1.  Notwithstanding any other provision of this article, if an
entity acquires or succeeds to another entity in any manner, the
method of reimbursement financing, in lieu of contributions required
of employers, elected by the acquiring entity shall apply to all
service performed in the employ of the acquiring entity. The
acquiring entity shall be liable for the reimbursement of all
benefits chargeable to the entity acquired under any method of
reimbursement financing elected by the entity acquired, except that
this provision shall not apply to the acquisition of, or succession
to, less than a total entity if the remainder of the entity partially
acquired or succeeded to remains in existence. "Entity" as used in
this section means any entity as defined by subdivision (a) of
Section 803.



803.2.  Notwithstanding any other provision of this article, a
nonprofit organization which elected reimbursement financing under
Section 803 and which has acquired a previously accumulated favorable
reserve account under Section 712 or 713 shall be liable for the
reimbursement of benefits pursuant to such election for any benefits
chargeable to the reserve account and based upon wages paid prior to
such election, to the extent that such benefits exceed the previously
accumulated favorable reserve account.



804.  The director shall notify the United States Internal Revenue
Service and the United States Department of Labor of the failure of
any Indian tribe (as described by subsection (u) of Section 3306 of
Title 26 of the United States Code) to make a payment or post a bond
as required under subdivision (b) of Section 803 within 90 days of
the delinquency date of a notice to the tribe specifying the amount
due under that subdivision. If the amount due is subsequently paid by
the Indian tribe, the director shall notify the United States
Internal Revenue Service and the United States Department of Labor of
the satisfaction of the liability.



805.  An unregistered organization described in Section 608, and
which has been determined by the Internal Revenue Service to be
exempt under Section 501(a) as an organization described in Section
501(c)(3) of the Internal Revenue Code, may elect reimbursement
financing under Section 801 when the director finds that it has good
cause for failing to register as an employer under this division. The
election under Section 801 shall be from the time the organization
became an employer. The organization shall, upon election, be liable
for reimbursement of the cost of benefits chargeable to the
organization from the time it became an employer. Payment of the cost
of benefits shall be as provided in Section 803 except that benefits
paid more than 30 days prior to the date of election under Section
801 shall accrue interest as provided in Section 1113. The election
under Section 801 shall be subject to all provisions of Section 803.



806.  (a) The department shall give notice, as required by Section
1327, to each public entity, as defined by Section 605, which has
elected a method of financing under Section 803 at a single address
to be selected by the entity.
   (b) The department shall implement subdivision (a) according to
the following schedule:
   (1) For the State of California, by July 1, 1986.
   (2) For all public entities with more than 100 employees, by
October 1, 1986.
   (3) For all other local public entities, by January 1, 1987.