California Unemployment Insurance Code 2775 - 3656

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2775.  Notwithstanding any inconsistent provisions of this part, the
benefit rights of industrially disabled persons shall be determined
in accordance with the provisions of this article for the period and
with respect to the matters specified in this article. Except as
otherwise provided in this article, all of the provisions of this
part shall continue to be applicable in connection with such
benefits.



2776.  As used in this article:
   (a) "Industrially disabled person" means an individual who has
received or is entitled to receive benefits under Division 4
(commencing with Section 3201) of the Labor Code, and who is unable
to perform his regular or customary work for 60 consecutive days or
more, but not to exceed two calendar years from the date of
commencement of his industrial disability.
   (b) "Industrial disability" means a disability compensable under
Division 4 (commencing with Section 3201) of the Labor Code.



2777.  Except as provided in subdivision (b) of Section 2611, in
determining the benefit rights of any industrially disabled person
the disability base period shall exclude those quarters during which
such person was industrially disabled for 60 days or more. For all
quarters so excluded there shall be substituted an equal number of
quarters immediately preceding the commencement of his or her
industrial disability. In the event the base period so determined
includes wages in calendar quarters for which the records have been
destroyed under proper approval, a claimant may establish the amount
of wages by affidavit in accordance with authorized regulations. The
quarter of commencement of an industrial disability shall be counted
as a completed quarter if the director finds that the inclusion
thereof would be more equitable to the industrially disabled person.



2778.  No disqualification shall be applied to any industrially
disabled person after the termination of his industrial disability,
by reason of any act or course of action on his part prior to the
date on which his industrial disability commenced.

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2781.  Except as provided in this chapter and Chapter 2.5
(commencing with Section 19878) of Part 2.6 of Division 5 of Title 2
of the Government Code, a state employee shall be eligible for
nonindustrial disability benefits on the same terms and conditions as
are specified by this part. Except as inconsistent with the
provisions of this chapter and Chapter 2.6 (commencing with Section
19878) of Part 2.6 of Division 5 of Title 2 of the Government Code,
the provisions of this division and authorized regulations shall
apply to any matter arising pursuant to this chapter.




2782.  (a) The provisions of Chapter 4 (commencing with Section
2901), Chapter 5 (commencing with Section 3001), and Chapter 6
(commencing with Section 3251) of Part 2 do not apply to this
chapter.
   (b) The provisions of Article 2 (commencing with Section 2652),
Article 6 (commencing with Section 2765) and Article 7 (commencing
with Section 2775) of Chapter 2 of Part 2 do not apply to this
chapter.
   (c) Sections 2609, 2610, 2611, 2625, 2712, and 2712.5 do not apply
to this chapter.



2783.  (a) Nonindustrial disability benefits are payable by the
Controller upon authorization by the Employment Development
Department to individuals who are eligible to receive such benefit
payments under this chapter.
   (b) In lieu of the contributions required of employees, the State
of California shall pay into the Disability Fund in the State
Treasury at the times and in the manner provided in subdivision (c),
an amount equal to the additional cost to the Disability Fund for
added administrative work arising out of nonindustrial disability
insurance for state employees.
   (c) In making the payments prescribed by subdivision (b), there
shall be paid or credited to the Disability Fund, either in advance
or by way of reimbursement, as may be determined by the director,
such sums as he estimates the Disability Fund will be entitled to
receive from the State of California under this section for each
fiscal year, reduced or increased by any sum by which he finds that
his estimates for any prior fiscal year were greater or less than the
amounts which should have been paid to the fund. Such estimates may
be made upon the basis of statistical sampling, or other method as
may be determined by the director.
   Upon making such determination, the director shall certify to the
Controller the amount determined with respect to the State of
California. The Controller shall pay to the Disability Fund the
contributions due from the State of California.
   (d) The director may require from each state agency such
employment, wage, financial, statistical, or other information and
reports, properly verified, as may be deemed necessary by the
director to carry out his duties under this chapter, which shall be
filed with the director at the time and in the manner prescribed by
him.
   (e) The director may tabulate and publish information obtained
pursuant to this chapter in statistical form and may divulge the name
of the employing unit.
   (f) Each state agency shall keep such work records as may be
prescribed by the director for the proper administration of this
chapter.

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2901.  Each individual performing services for an employer in
employment shall contribute to the Disability Fund the contributions
required of such individual by Sections 984 and 985.



2902.  Notwithstanding any other provision of this division, any
individual who adheres to the faith or teaching of any bona fide
religious sect, denomination, or organization, and in accordance with
its creed, tenets, or principles, depends for healing upon prayer in
the practice of religion, upon filing with the department and with
each of his employers a statement declaring such adherence and
dependence and disclaiming any benefits under this part, shall be
exempt from contributions under this division in respect to any wages
paid to him by any such employer in the calendar quarter in which
such statement is filed, in all subsequent calendar quarters while
such statement is in effect, and, if the individual so elects, in any
prior calendar quarter for which wages are reported to the
department on or after the date such statement is filed. Such
individual shall be ineligible to receive benefits under this part
based upon such wages.


2903.  The time, procedure, manner of payment and collection of
contributions under this part shall be in accordance with the
provisions of Part 1 of this division.

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3001.  (a) The Unemployment Compensation Disability Fund is
continued in existence as a special fund in the State Treasury,
separate and apart from all other public money or funds of this
state. The moneys and assets of this fund shall be held in trust by
the State Treasurer and administered under the direction of the
director exclusively, for the purpose of this part.
   (b) Notwithstanding any other law, the Controller may use the
moneys in the Unemployment Compensation Disability Fund for loans to
the General Fund as provided in Sections 16310 and 16381 of the
Government Code. However, interest shall be paid on all moneys loaned
to the General Fund from the Unemployment Compensation Disability
Fund. Interest payable shall be computed at a rate determined by the
Pooled Money Investment Board to be the current earning rate of the
fund from which loaned. This subdivision does not authorize any
transfer that will interfere with the carrying out of the object for
which the Unemployment Compensation Disability Fund was created.




3002.  The State Treasurer is the treasurer of the Disability Fund
and shall have the custody of all money belonging to the Disability
Fund and not otherwise held, deposited or invested under this part.
The official bond of the State Treasurer shall cover the faithful
performance of his or her duties as treasurer of the Disability Fund.
The State Treasurer shall invest or otherwise deal with the
Disability Fund under the supervision of the director. The State
Treasurer may, pursuant to Section 16470 of the Government Code, file
with the Pooled Money Investment Board a notice of election that
investment of surplus money in the Disability Fund shall come under
the provisions of the Surplus Money Investment Fund, and may revoke
such election pursuant to Section 16470 of the Government Code. As of
the effective date of any election with respect to the Disability
Fund filed pursuant to Section 16470 of the Government Code, the
State Treasurer shall transfer the surplus money in the Disability
Fund to the Surplus Money Investment Fund, and may transfer all or
any portion of the investments held by the Disability Fund at the
date of such election, from the Disability Fund to the Surplus Money
Investment Fund. As of the effective date of the revocation of any
such election, the State Treasurer shall transfer from the Surplus
Money Investment Fund to the Disability Fund the surplus money and
earnings attributable to the Disability Fund.



3003.  (a) Except as provided in subdivision (c), all surplus money
in the Disability Fund may be invested solely in securities set forth
in subdivision (b) of this section, and all interest or earnings
therefrom shall be deposited in the Disability Fund.
   (b) Eligible securities for the investment of surplus money shall
be:
   (1) Bonds or interest-bearing notes or obligations of the United
States, or those for which the faith and credit of the United States
are pledged for the payment of principal and interest.
   (2) Bonds of this state, or those for which the faith and credit
of this state are pledged for the payment of principal and interest.
   (3) Bonds of any county, city, metropolitan water district,
municipal utility district, or school district of this state.
   (4) Bonds, consolidated bonds, collateral trust debentures,
consolidated debentures, or other obligations issued by federal land
banks or federal intermediate credit banks established under the
Federal Farm Loan Act.
   (5) Debentures and consolidated debentures issued by the Central
Bank for Cooperatives and banks for cooperatives established under
the Farm Credit Act of 1933.
   (6) Bonds or debentures of the Federal Home Loan Bank Board
established under the Federal Home Loan Bank Act.
   (7) Bonds of any federal home loan bank established under the
Federal Home Loan Bank Act.
   (8) Stock, bonds, debentures and other obligations of the Federal
National Mortgage Association established under the National Housing
Act.
   (9) Bonds, notes, and other obligations issued by the Tennessee
Valley Authority under the Tennessee Valley Authority Act.
   (c) This section shall not apply during the period of any election
under Section 16470 of the Government Code for investment of surplus
money in the Disability Fund under the provisions of the Surplus
Money Investment Fund.



3004.  The Disability Fund consists of all contributions required of
individuals under Section 984 with respect to wages paid by
employers for employment; all money received for the purpose of
disability benefits from the United States of America or any agency
thereof, or from any other source; and any property or securities
acquired through the use of money belonging to the Disability Fund
and all earnings of such money or securities.



3005.  All money received from the Federal Government for disability
benefit purposes or for the administration of this part shall be
deposited in the Disability Fund in accordance with the terms of the
federal grant. Unless the Federal Government approves, no money made
available to this State under Title 3 of the Social Security Act
shall be used for disability benefits or for the administration of
this part.



3006.  There shall be no further transfer of money from the
Unemployment Trust Fund to the Disability Fund.



3008.  All money collected under Section 984 shall be deposited in
the Disability Fund.



3009.  Refunds, credits, or judgments, and interest thereon, payable
for contributions erroneously collected under Sections 984 and 985
may be paid from the Disability Fund on warrants issued by the
Controller under the direction of the director.




3010.  Any amounts determined by the director or his authorized
representatives to be payable to employing units or workers as
refunds of amounts deposited in the various accounts of the
Disability Fund which are unclaimed at the end of three years from
such determination, shall be included in the revenue to the account
in the Disability Fund in which they were deposited. The employing
unit or person entitled to such payment shall not thereafter maintain
any claim, action or proceeding with respect to such amounts.



3011.  Whenever any warrant is drawn on an account in the Disability
Fund by the Controller, and the same remains unclaimed after one
year, the amount thereof shall revert to that account in the
Disability Fund from which the amount was payable.




3012.  (a) Notwithstanding Section 13340 of the Government Code, all
money in the Disability Fund is continuously appropriated for the
purpose of providing disability benefits pursuant to this part,
including the payment of refunds, credits, or judgments, and interest
thereon, the payment of disability benefits to all eligible persons
not covered exclusively by an approved voluntary plan, and the
payment of the expenses of administration of this part and Section
17061 of the Revenue and Taxation Code by the department and the
Franchise Tax Board. "Eligible persons" as used in this section,
means those individuals who are covered by the Disability Fund at the
time his or her disability benefit period commences, or whose
employment has terminated or who is in noncovered employment at the
time his or her disability benefit period commences, and who is
otherwise eligible for benefits under this part.
   (b) For the purpose of keeping a record of the payments to and the
disbursements from the Disability Fund with respect to the payment
of benefits to persons whose employment has terminated or who are in
noncovered employment at the time his or her disability period
commences, the director shall maintain the Unemployed Disabled
Account in the Disability Fund. This account shall be credited with
12 percent of the product obtained by multiplying the rate of worker
contributions as determined in Section 984, by the amount of the
taxable wages paid to employees covered by voluntary plans for
disability benefits for each calendar year. This account shall also
be credited with an amount equal to 12 percent of the product
obtained by multiplying the rate of worker contributions, as
determined in Section 984, by the amount of the taxable wages paid to
employees covered by the Disability Fund for each calendar year.
This account shall be charged each calendar year with disbursements
from the Disability Fund for the payment of benefits and the
additional administrative costs of the payment of benefits to persons
whose employment has terminated or who are in noncovered employment
at the time his or her disability benefit period commences.




3013.  A sum to be determined by the Director of Finance, of amounts
deposited in the disability fund, may be used for the necessary
expenses of administration of this part and Sections 17061 and
17061.5 of the Revenue and Taxation Code in addition to any other
fund or money available for such purpose. Such sum shall be available
to the department for the payment of the expenses of administration
of this part and Sections 17061 and 17061.5 of the Revenue and
Taxation Code by the department and the Franchise Tax Board only to
the extent that money received from the United States or any of its
agencies is not available for such purposes.




3014.  Withdrawals by the director from the Disability Fund for the
payment of refunds, credits, or judgments, and disability benefits
are exempted from the operation of Section 925.6 of the Government
Code.


3015.  The department shall have priority to occupy any space in the
buildings and facilities financed by the Disability Fund, which
comprise any space in the department's central office building and
related parking facilities in Sacramento and the department's branch
office in Los Angeles, at rental rates not exceeding the cost of
providing maintenance and other services.

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3051.  There is a Disability Administration Account within the
Disability Fund. The director may, without at the time furnishing
vouchers and itemized statements, withdraw from this account sums not
to exceed in the aggregate an amount equal to three percent of the
total disbursements made from the fund during the immediately
preceding fiscal year to be used as a revolving fund where payment of
compensation earned, traveling expense advances, or other cash
payments are necessary. At the close of each fiscal year or at any
other time, upon the demand of the Department of Finance, the money
so drawn shall be accounted for and substantiated by vouchers and
itemized statements submitted to and audited by the Controller.

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3075.  The director shall, without presenting vouchers and itemized
statements, withdraw from the Disability Fund any sums that he or she
deems necessary for the payment of disability benefits for a
reasonable future period. The Controller shall draw his or her
warrant for any claim presented by the director for the payment and
the Treasurer shall pay the warrant. Upon the withdrawal thereof,
those sums shall be deposited in a disability benefit payment account
in such bank or public depositary and under those conditions as the
director determines, with the approval of the Department of Finance.
The bank or public depositary shall be one in which general funds of
the state may be deposited, but no public deposit insurance charge or
premium shall be paid out of that account. Money in this account
shall be used solely to pay disability benefits by the department
pursuant to authorized regulations and no other disbursement shall be
made from that account, except that amounts erroneously and
illegally deposited in that account may be refunded. The procedure
prescribed by those regulations shall satisfy and be in lieu of any
and all statutory requirements of specific appropriation or other
form of release by state officers of money in their custody prior to
expenditure that might otherwise be applicable to withdrawals from
that account.

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3251.  An employer, a majority of the employees employed in this
state of an employer, or both, may apply to the Director of
Employment Development for approval of a voluntary plan for the
payment of disability benefits to the employees so electing. The
benefits payable as indemnification for loss of wages under any
voluntary plan shall be separately stated and designated in the plan
"unemployment compensation disability benefits" separate and distinct
from other benefits, if any.



3252.  (a) Except as provided by subdivision (b) of this section,
neither an employee nor his or her employer shall be liable for the
worker contributions required under this division with respect to
wages paid by the employer while the employee is covered by an
approved voluntary plan.
   (b) Each voluntary plan shall pay to the department for the
Disability Fund 14 percent of the product obtained by multiplying the
rate of worker contributions, as determined in Section 984, by the
amount of the taxable wages paid to employees covered by the
voluntary plan for disability benefit coverage for each calendar
year. Such payments shall not constitute a part of the voluntary plan
premium for purposes of any tax under any provision of law. Payments
under this section shall be deposited in the Disability Fund.
   (c) The payments made under subdivision (b) of this section in
excess of the credit to the unemployed disabled account made pursuant
to Section 3012 shall reimburse the Disability Fund for the amounts
paid for administrative costs arising out of voluntary plans as
determined pursuant to Section 3269, and the aggregate amount paid as
refunds and credits made to employees applicable to voluntary plans
pursuant to Section 1176 as determined pursuant to Section 3266.
   (d) Each voluntary plan shall file with the director within the
time required for payments under subdivision (e) of this section, a
return containing the employer's business name, address, and account
number, and such other information as the director shall prescribe.
The director shall prescribe the form for the return.
   (e) Payments required under this section are due and payable on
the first day of the calendar month following the close of each
calendar quarter and shall become delinquent if not paid on or before
the last day of such month.
   (f) The provisions of Article 8 (commencing with Section 1126) of
Chapter 4 of Part 1 of this division with respect to the assessment
of contributions and the provisions of Chapter 7 (commencing with
Section 1701) of Part 1 of this division with respect to the
collection of contributions shall apply to payments required by this
section.
   (g) Whenever the director believes that a change in the percentage
rate of payment specified in subdivision (b) may be necessary, he or
she shall inform the Governor and the Legislature thereof and make
recommendations accordingly.



3253.  Except as provided in this part, an employee covered by an
approved voluntary plan at the commencement of a disability benefit
period shall not be entitled to benefits from the Disability Fund.
Benefits payable to that employee shall be the liability of the
approved voluntary plan under which the employee was covered at the
commencement of the disability benefit period, regardless of any
subsequent disabling condition which may occur during that disability
benefit period. The Director of Employment Development shall
prescribe authorized regulations to allow benefits to individuals
simultaneously covered by one or more approved voluntary plans and
the Disability Fund.



3254.  The Director of Employment Development shall approve any
voluntary plan, except one filed pursuant to Section 3255, as to
which he or she finds that there is at least one employee in
employment and all of the following exist:
   (a) The rights afforded to the covered employees are greater than
those provided for in Chapter 2 (commencing with Section 2625),
including those provided for in Chapter 7 (commencing with Section
3300).
   (b) The plan has been made available to all of the employees of
the employer employed in this state or to all employees at any one
distinct, separate establishment maintained by the employer in this
state. "Employees" as used in this subdivision includes those
individuals in partial or other forms of short-time employment and
employees not in employment as the Director of Employment Development
shall prescribe by authorized regulations.
   (c) A majority of the employees of the employer employed in this
state or a majority of the employees employed at any one distinct,
separate establishment maintained by the employer in this state have
consented to the plan.
   (d) If the plan provides for insurance the form of the insurance
policies to be issued have been approved by the Insurance
Commissioner and are to be issued by an admitted disability insurer.
   (e) The employer has consented to the plan and has agreed to make
the payroll deductions required, if any, and transmit the proceeds to
the plan insurer, if any.
   (f) The plan provides for the inclusion of future employees.
   (g) The plan will be in effect for a period of not less than one
year and, thereafter, continuously unless the Director of Employment
Development finds that the employer or a majority of its employees
employed in this state covered by the plan have given notice of
withdrawal from the plan. The notice shall be filed in writing with
the Director of Employment Development 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 time of the filing of the notice; except that the plan may be
withdrawn on the operative date of any law increasing the benefit
amounts provided by Sections 2653 and 2655 or 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 of Employment Development not less than 30 days
prior to the operative date of that law or change. If the plan is not
withdrawn on the 30 days' notice because of the enactment of a law
increasing benefits 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.
   (h) The amount of deductions from the wages of an employee in
effect for any plan shall not be increased on other than an
anniversary 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.
   (i) The approval of the plan or plans will not result in a
substantial selection of risks adverse to the Disability Fund.



3254.1.  (a) For the purposes of this section,
"small-business-third-party administrator" (hereafter SBTPA), means
an applicant that the director finds meets all of the following
criteria at the time of application:
   (1) The SBTPA administers voluntary disability plans on behalf of
its clients pursuant to a written agreement in a form and manner
approved by the director.
   (2) The SBTPA has at least 1,000 California domiciled clients, 80
percent of whom have fewer than 20 employees.
   (3) The SBTPA processes payroll for its California domiciled
clients.
   (4) The SBTPA offers workers' compensation insurance to its
California domiciled clients through an affiliated California
domiciled insurance company.
   (b) Except as modified by this section, "voluntary plan" shall be
defined as, and shall be subject to the same provisions as, a
"voluntary plan," as set forth in Chapter 6 (commencing with Section
3251) of Part 2 of Division 1.
   (c) The director may approve a single voluntary plan for all of an
SBTPA's clients and their employees where all of the following
criteria are met:
   (1) The plan is administered by the SBTPA.
   (2) The plan establishes a master trust account that is
administered by the SBTPA, but requires each individual employer that
is a client of the SBTPA to have a subtrust account that reflects
that client's employees' specific plan contributions and is not
commingled with any other funds. The master trust account shall be
held in a federally insured bank.
   (3) (A) If a voluntary plan does not provide for the assumption by
an admitted disability insurer of the liability of the employer to
pay the benefits afforded by the plan, the director shall not approve
it unless the employer meets the financial security requirements of
Section 3258.
   (B) In addition to the security required by subparagraph (A), the
director may require additional security from the SBTPA, consisting
of the same types of financial instruments, and deposited in the same
manner as in Section 3258, in an amount determined by the director
to be adequate to pay disability claims of the SBTPA's clients'
employees should the client's subaccount or the financial security
provided in subparagraph (A) be inadequate.
   (4) (A) The single voluntary plan will be in effect for a period
of not less than one year and, thereafter, continuously, unless the
Director of Employment Development finds that the SBTPA has given
notice of withdrawal of the plan. The notice filed by the SBTPA shall
be filed in writing with the Director of Employment Development and
shall be effective on the anniversary of the effective date of the
plan next following the filing of the notice, but in any event shall
not be less than 30 days from the time of the filing of the notice;
except that the plan may be withdrawn on the operative date of any
law increasing the benefit amounts provided by Sections 2563 and 2655
or 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 of Employment
Development not less than 30 days prior to the operative date of
that law or change. If the plan is not withdrawn on the 30 days'
notice because of the enactment of a law increasing benefits 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.
   (B) Any individual employer who is a client of the SBTPA, or a
majority of that client's employees employed in this state covered by
the plan, may also terminate their participation in the plan by
giving written notice of withdrawal from the plan to the SBTPA and to
the Director of Employment Development not less than 30 days prior
to the date of withdrawal.
   (5) The rights afforded to the covered employees are greater than
those provided for in Chapter 2 (commencing with Section 2625),
including those provided for in Chapter 7 (commencing with Section
3300).
   (6) The plan has been made available to all of the employees of
the employer employed in this state or to all employees at any one
distinct, separate establishment maintained by the employer in this
state. "Employees" as used in this paragraph includes those
individuals in partial or other forms of short-time employment and
employees not in employment as the director shall prescribe by
authorized regulations.
   (7) A majority of the employees of the client employed in this
state or a majority of the employees employed at any one distinct,
separate establishment maintained by the client in this state have
consented to the plan.
   (8) If the plan provides for insurance, the form of the insurance
policies to be issued has been approved by the Insurance Commissioner
and is to be issued by an admitted disability insurer.
   (9) The client has consented to the plan and has authorized the
SBTPA to make the payroll deductions required, if any, and deposit
the proceeds in each client's subtrust account.
   (10) The plan provides for the inclusion of future employees.
   (11) The amount of deductions from the wages of an employee of any
client in effect for the plan shall not be increased on other than
an anniversary 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.
   (12) The approval of the plan or plans will not result in a
substantial selection of risks adverse to the Disability Fund.
   (d) The department may adopt application forms and procedures as
deemed necessary to ensure compliance with this section, and shall
adopt any application forms and procedures within 60 days of the
enactment of this section.
   (e) It is the intent of the Legislature in enacting paragraph (3)
of subdivision (c) that, in the event of the insolvency of an
employer-client of the SBTPA, or of the SBTPA, the disability claims
against the subaccount of any employer-client arising prior to the
date of the insolvency shall be satisfied by first accessing the
security of the SBTPA, as described in subparagraph (B) of paragraph
(3) of subdivision (c), rather than satisfying the claims from the
Disability Fund.
   (f) This section shall remain in effect through December 31, 2014,
and as of that date is repealed.



3254.5.  A voluntary plan in force and effect at the time a
successor employing unit acquires the organization, trade, or
business, or substantially all the assets thereof, or a distinct and
severable portion of the organization, trade, or business, and
continues its operation without substantial reduction of personnel
resulting from the acquisition, shall not withdraw without specific
request for withdrawal thereof. The successor employing unit and the
insurer shall be deemed to have consented to the provisions of the
plan unless written request for withdrawal, effective as of the date
of acquisition, is transmitted to the Director of Employment
Development, by the employer or the insurer, within 30 days after the
acquisition date, or within 30 days after notification from the
Director of Employment Development that the plan is to continue,
whichever is later. Unless the plan is withdrawn as of the date of
acquisition by the successor employer or the insurer, a written
request for withdrawal shall be effective only on the anniversary of
the effective date of the plan next occurring on or after the date of
acquisition, except that the plan may be withdrawn on the operative
date of any law increasing the benefit amounts provided by Sections
2653 and 2655 or the operative date of any change in the rate of
worker contributions as determined by Section 984, if notice of the
withdrawal of the plan is transmitted to the Director of Employment
Development not less than 30 days prior to the operative date of law
or change. If the plan is not withdrawn on 30 days' notice because of
the enactment of a law increasing benefits or because of a change in
the rate of worker contributions as determined by Section 984, the
plan shall be amended to conform to the increase or change on the
operative date of the increase or change. Promptly, upon notice of
change in ownership, any insurer of a plan shall prepare and issue
policy forms and amendments as required, unless the plan is
withdrawn. Nothing contained in this section shall prevent future
withdrawal of any plans on an anniversary of the effective date of
the plan upon 30 days' notice, except that the plan may be withdrawn
on the operative date of any law increasing the benefit amounts
provided by Sections 2653 and 2655 or the operative date of any
change in the rate of worker contributions as determined by Section
984, if notice of the withdrawal of the plan is transmitted to the
Director of Employment Development not less than 30 days prior to the
operative date of the law or change. If the plan is not withdrawn on
30 days' notice because of the enactment of a law increasing
benefits or because of a change in the rate of worker contributions
as determined by Section 984, the plan shall be amended to conform to
the increase or change on the operative date of the increase or
change.


3255.  When workers are engaged in an employment that normally
involves working for several employers in the same industry
interchangeably, and several employers or some of them cooperate to
establish a plan for the payment of wages at a central place or
places, and have appointed an agent under Section 1096, that agent,
or a majority of workers regularly paid through a central place or
places, or both, may apply to the Director of Employment Development
for approval of a voluntary plan for the payment of disability
benefits applicable to all employees whose wages are paid at one or
more central place or places. The Director of Employment Development
shall approve any voluntary plan under this section as to which he or
she finds that all of the following exist:
   (a) The rights afforded to the covered employees are greater than
those provided for in Chapter 2 (commencing with Section 2625) of
this part, and are separately stated and designated "unemployment
compensation disability benefits" separate and distinct from other
benefits, if any.
   (b) The plan applies to all employees whose wages are paid at a
central place or places with respect to all employment for which
wages are paid at central place or places.
   (c) Seventy-five percent of the workers regularly paid at the
central place or places have consented to the plan prior to the
filing of the initial application for approval.
   (d) If the plan provides for insurance the form of the insurance
policies to be issued have been approved by the Insurance
Commissioner and are to be issued by an admitted disability insurer.
   (e) All employers paying wages through the central place or places
have agreed to participate in the plan and the agent appointed under
Section 1096 has agreed to make the payroll deductions required, if
any, and transmit the proceeds to the plan insurer, if any.
   (f) The plan provides for the inclusion of all future employees
paid at the central place or places.
   (g) The plan is to be in effect for a period of not less than one
year and, thereafter, continuously unless the Director of Employment
Development finds that the agent or a majority of the employees
regularly paid at the central place or places has given written
notice of withdrawal from the plan. The notice shall be filed in
writing with the Director of Employment Development at least 30 days
before it is to become effective and, upon the filing, will be
effective only as to wages paid after the beginning of the calendar
quarter next occurring on or after the anniversary of the effective
date of the plan; except that the plan may be withdrawn on the
operative date of any law increasing the benefit amounts provided by
Sections 2653 and 2655 or 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 of
Employment Development 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 benefits 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.
   (h) The amount of deductions from the wages of an employee in
effect for any plan shall not be increased on other than an
anniversary 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.
   (i) The approval of the plan or plans will not result in a
substantial selection of risks adverse to the Disability Fund.




3256.  During the effective period of a plan approved under Section
3255 the employer, or his agent appointed under Section 1096, may
make the pay roll deductions provided for by the plan, with respect
to all employment covered by the plan.



3257.  Whenever eighty-five percent (85%) of the employees to whom a
plan is available have consented to the plan, the employer, or
seventy-five percent (75%) of the employees who have consented to the
plan, or both, may elect to make the plan applicable to all
employees to whom it is available, except those who reject the plan.
In such case, there shall be filed with the Director of Employment
Development a notice stating that the requisite percentage of
employees has consented to the plan and fixing the date upon which
the plan will become applicable to all employees to whom it is
available. At least 10 days before the date fixed in the notice, a
notice shall be posted and circulated in a manner reasonably
calculated to bring it to the attention of all employees to whom the
plan is available but who have not consented thereto. The notice to
such employees shall set forth the date the plan is to become
applicable and the manner in which an employee may reject it.
   From the time fixed in the notice filed with the Director of
Employment Development all employees to whom the plan is available
shall be deemed to have elected to be covered by the plan, except
those who advise the employer in writing of their rejection within
the time fixed.
   Every person employed after the date the plan becomes applicable
and to whom the plan is available, shall be deemed to have elected to
be covered by the plan from the time of employment unless he rejects
the plan prior to or at the time of employment. Each employee at the
time of employment shall be given a written notice specifying his
right to consent to or to reject such plan and a written statement
setting forth the essential features of the plan.
   Any employee covered by a plan may withdraw from the plan as of
the beginning of any calendar quarter upon giving reasonable notice
in writing directed to the employer.
   The form of the statement and the forms of the notices required
under this Section shall be approved by the Director of Employment
Development.



3258.  If a voluntary plan does not provide for the assumption by an
admitted disability insurer of the liability of the employer to pay
the benefits afforded by the plan, the director shall not approve it
unless the employer files with the director the bond of an admitted
surety insurer conditioned on the payment by the employer of its
obligations under the plan, deposits with the director securities
approved by the director to secure the payment of the obligations, or
deposits with the director an irrevocable letter of credit. The
penal sum of the bond or the amount of the deposit of securities or
letter of credit shall be determined by the director and shall be not
less than the product obtained by multiplying the rate of worker
contributions in the ensuing year, as determined in Section 984, by
0.5 of the estimated taxable wages prescribed by Section 985 to be
paid to the employees for the ensuing year. Upon approval, the bond,
money, or securities shall upon the director's written order be
deposited with the Treasurer for the purpose specified in this
section. The Treasurer shall give a receipt for the deposits and the
state shall be responsible for the custody and safe return of any
securities so deposited.



3259.  Whenever an approved voluntary plan is insured by an admitted
disability insurer, the insurer shall be substituted for the
employer with respect to any assessments under this part which relate
to the portion of the voluntary plan insured by such insurer.




3260.  An employer may, but need not, assume all or part of the cost
of the plan, and may deduct from the wages of an employee covered by
the plan, for the purpose of providing the disability benefits
specified in this part, an amount not in excess of that which would
be required by Sections 984 and 985 if the employee were not covered
by the plan.



3260.5.  (a) All deductions from the wages of an employee remaining
in the possession of the employer upon its voluntary withdrawal of
the plan as a result of plan contributions being in excess of plan
costs, that are not disposed of in conformity with authorized
regulations of the Director of Employment Development, shall be
remitted to the department and deposited in the Disability Fund. If
an employer fails to remit any deductions to the Disability Fund, the
Director of Employment Development shall assess the amount thereof
against the employer.
   (b) The provisions of Article 8 (commencing with Section 1126) of
Chapter 4 of Part 1, with respect to the assessment of contributions,
and the provisions of Chapter 7 (commencing with Section 1701) of
Part 1, with respect to the collection of contributions, shall apply
to assessments provided by this section, except that interest may not
accrue until 30 days after issuance of the notice of assessment.
   (c) With respect to individuals covered by a voluntary plan on
January 1 of any calendar year for which the limitation on wages
under Section 985 is increased or the tax rate under Section 984 is
increased, the amount of the deduction on or after that date may be
increased to apply to not more than the maximum limitation on taxable
wages or to not more than the maximum tax rate, as applicable,
without any further consent of the individual or approval of the
Director of Employment Development, but only if such increase in the
amount of the deductions is made effective as of January 1 of the
affected calendar year.


3261.  All employee contributions and income arising therefrom
received or retained by an employer under an approved voluntary plan
are trust funds that are not considered to be part of an employer's
assets. An employer shall either maintain a separate, specifically
identifiable account for voluntary plan trust funds in a financial
institution, or an employer may transmit voluntary plan trust funds,
including any earned interest or income, directly to the admitted
disability insurer. If an employer, with prior approval from the
Director of Employment Development, invests voluntary plan trust
funds in securities purchased through a commercial bank under Article
4 of Chapter 10 of Division 1 of the Financial Code, the securities
account shall be separately identifiable from any other securities
accounts maintained by the employer. In the event of commingling of
voluntary plan trust funds, or the bankruptcy or insolvency of the
employer, or the appointment of a receiver for the business of the
employer, those voluntary plan trust funds are entitled to the same
preference as are the claims of the state under Sections 1701 and
1702.



3262.  (a) The Director of Employment Development may terminate any
voluntary plan if the director finds that there is danger that the
benefits accrued or to accrue will not be paid, that the security for
the payment is insufficient, or for other good cause shown. The
Director of Employment Development shall give notice of his or her
intention to terminate a plan to the employer, employee group, and
insurer. The notice shall state the effective date and the reason for
the withdrawal. The Director of Employment Development may change or
stay the effective date of the termination.
   (b) Notwithstanding Section 3260.5, on the effective date of the
termination of a plan by the Director of Employment Development, all
moneys in the plan, including moneys paid by the employer, moneys
paid by the employee, moneys owed to the voluntary plan by the
employer but not yet paid to the plan, and any interest accrued on
all these moneys, shall be remitted to the department and deposited
into the Disability Fund.
   (c) If an employer fails to remit all moneys owed to the
Disability Fund after termination of the plan, the Director of
Employment Development shall make an assessment against the employer
equal to the amount of the moneys owed. The Director of Employment
Development shall also make an assessment against the employer for
all benefits paid from the Disability Fund after the termination of
the plan, less any moneys received from the employer after the
termination of the plan.
   (d) The provisions of Article 8 (commencing with Section 1126) of
Chapter 4 of Part 1, with respect to the assessment of moneys, and
the provisions of Chapter 7 (commencing with Section 1701) of Part 1,
with respect to the collection of moneys owed, shall apply to
assessments authorized under this section, except that interest may
not accrue until 30 days after issuance of the notice of assessment.
   (e) The employer, employee group or insurer may, within 10 days
from mailing or personal service of the notice, appeal to the Appeals
Board. The 10-day period may be extended for good cause. The Appeals
Board may prescribe by regulation the time, manner, method and
procedure through which it may determine appeals under this section.
   (f) The payment of benefits from the Disability Fund and the
transfer of moneys in the voluntary plan may not be delayed during an
employer's appeal of the termination of a voluntary plan.



3263.  (a) An employee is no longer covered by an approved voluntary
plan if a disability arose after the employment relationship with
the voluntary plan employer ends, or if the Director of Employment
Development terminates a voluntary plan in accordance with Section
3262.
   (b) An employee who has ceased to be covered by an approved
voluntary plan shall, if otherwise eligible, thereupon immediately
become entitled to benefits from the Disability Fund to the same
extent as though there had been no exemption from contributions as
provided in this chapter.



3264.  If any employer or insurer wholly or partially denies
liability upon the claim of an employee for disability benefits under
an approved plan, the employee may appeal the denial in the manner
provided by law and authorized regulations for an appeal on a claim
for benefits payable out of the Disability Fund. All decisions of the
Appeals Board denying benefits under this section shall be subject
to review by the courts of this State by the exclusive remedy of
filing a petition for writ of mandate. No such petition may be filed,
however, until the employee exhausts the administrative remedies
provided for in this division, nor may any other action be commenced
by an employee upon a denial of his claim by his employer or insurer,
as the case may be, other than that prescribed herein.



3265.  (a) If, on appeal, it is decided that an employee is entitled
to receive disability benefits under an approved voluntary plan and
the employer or insurer fails to pay the same within 15 days after
notice of a decision by an administrative law judge or the appeals
board, the director shall pay such benefits and shall assess the
amount thereof against the employer or the insurer, and the
provisions of Article 8 (commencing with Section 1126) of Chapter 4
of Part 1 of this division with respect to the assessment of
contributions and the provisions of Chapter 7 (commencing with
Section 1701) of Part 1 of this division with respect to the
collection of contributions shall apply to the recovery of such
benefit payments. Amounts so collected shall be deposited in the
Disability Fund.
   (b) If an approved voluntary plan is not terminated because of the
enactment of any law increasing the benefit amounts provided by
Sections 2653 and 2655, and the employer or insurer fails to pay such
increase under the plan, the director shall pay such benefits to an
employee, if otherwise eligible, and shall assess the amount thereof
against the employer or the insurer and the provisions of Article 8
(commencing with Section 1126) of Chapter 4 of Part 1 of this
division with respect to the assessment of contributions and the
provisions of Chapter 7 (commencing with Section 1701) of Part 1 of
this division with respect to the collection of contributions shall
apply to the recovery of such benefit payments. Amounts so collected
shall be deposited in the Disability Fund.



3266.  The director shall in accordance with his or her authorized
regulations determine the portion of the aggregate amount of refunds
and credits to employees made under Section 1176 during any calendar
year which is applicable to voluntary plans for which deductions were
made under Section 3260, such determination to be based upon the
relation during the preceding calendar year of the amount of wages
subject to contributions to the Disability Fund to the amount of
wages exempt from contributions to the Disability Fund under Section
3252.


3267.  Employers whose employees are participating in an approved
voluntary plan and any insurer of an approved plan shall furnish such
reports and information and make available to the department such
records as the director may by authorized regulations require for the
proper administration of this part.


3268.  The Director of Employment Development shall, in accordance
with his authorized regulations, promptly furnish to employers,
employees, or insurers, such information as may be required for the
proper administration of an approved voluntary plan.




3269.  The director shall in accordance with his or her authorized
regulations, determine each fiscal year the total amount expended for
added administrative work arising out of voluntary plans.



3270.  The provisions of subdivision (i) of Section 3254 and
subdivision (i) of Section 3255, dealing with substantial selection
of risks adverse to the Disability Fund, shall be operative as of
January 1, 1962.


3271.  (a) The director shall approve any amendment to a voluntary
plan adjusting the provisions thereof as to periods after the
effective date of the amendment as to which he or she finds that the
plan, as amended, will conform to the standards set forth in Section
3254, and that any of the following exist:
   (1) A majority of the employees covered by the plan have consented
in writing to the amendment.
   (2) All of the employees covered by the plan who are adversely
affected by the amendment have consented in writing to the amendment.
   (3) The insurer of such plan, if any, has certified to the
director that notice of the amendment either separately or as a part
of a new certificate or statement of coverage, has, at least 10 days
prior to the effective date of the proposed amendment, been delivered
to the employer for distribution to his or her employees within 10
days thereafter and has further certified that such notice
specifically included notification to the employees covered by the
plan of their right to withdraw from the plan.
   (b) Nothing contained in this section is intended to deny or limit
the right of the director to make regulations supplementary thereto,
nor on the general subject of requirements for amendments of
voluntary plans.


3272.  The provisions of Article 9 (commencing with Section 1176) of
Chapter 4 of Part 1 of this division shall apply to amounts
collected under Sections 3252, 3260, and 3265, to amounts remitted to
the Disability Fund under Section 3260, and to amounts paid to an
employee by an employer or insurer after a final decision on appeal
under Section 3264 to an administrative law judge or the appeals
board that the employee is entitled to disability benefits.

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3300.  The Legislature finds and declares all of the following:
   (a) It is in the public benefit to provide family temporary
disability insurance benefits to workers to care for their family
members. The need for family temporary disability insurance benefits
has intensified as the participation of both parents in the workforce
has increased, and the number of single parents in the workforce has
grown. The need for partial wage replacement for workers taking
family care leave will be exacerbated as the population of those
needing care, both children and parents of workers, increases in
relation to the number of working age adults.
   (b) Family Temporary Disability Insurance shall be known as Paid
Family Leave.
   (c) Developing systems that help families adapt to the competing
interests of work and home not only benefits workers, but also
benefits employers by increasing worker productivity and reducing
employee turnover.
   (d) The federal Family and Medical Leave Act (FMLA) and California'
s Family Rights Act (CFRA) entitle eligible employees working for
covered employers to take unpaid, job-protected leave for up to 12
workweeks in a 12-month period. Under the FMLA and the CFRA, unpaid
leave may be taken for the birth, adoption, or foster placement of a
new child; to care for a seriously ill child, parent, or spouse; or
for the employee's own serious health condition.
   (e) State disability insurance benefits currently provide wage
replacement for workers who need time off due to their own
non-work-related injuries, illnesses, or conditions, including
pregnancy, that prevent them from working, but do not cover leave to
care for a sick or injured child, spouse, parent, domestic partner,
or leave to bond with a new child.
   (f) The majority of workers in this state are unable to take
family care leave because they are unable to afford leave without
pay. When workers do not receive some form of wage replacement during
family care leave, families suffer from the worker's loss of income,
increasing the demand on the state unemployment insurance system and
dependence on the state's welfare system.
   (g) It is the intent of the Legislature to create a family
temporary disability insurance program to help reconcile the demands
of work and family. The family temporary disability insurance program
shall be a component of the state's unemployment compensation
disability insurance program, shall be funded through employee
contributions, and shall be administered in accordance with the
policies of the state disability insurance program created pursuant
to this part. Initial and ongoing administrative costs associated
with the family temporary disability insurance program shall be
payable from the Disability Fund.



3301.  (a) (1) The purpose of this chapter is to establish, within
the state disability insurance program, a family temporary disability
insurance program. Family temporary disability insurance shall
provide up to six weeks of wage replacement benefits to workers who
take time off work to care for a seriously ill child, spouse, parent,
domestic partner, or to bond with a minor child within one year of
the birth or placement of the child in connection with foster care or
adoption.
   (2) Nothing in this chapter shall be construed to abridge the
rights and responsibilities conveyed under the CFRA or pregnancy
disability leave.
   (b) An individual's "weekly benefit amount" shall be the amount
provided in Section 2655. An individual is eligible to receive family
temporary disability insurance benefits equal to one-seventh of his
or her weekly benefit amount for each full day during which he or she
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.
   (c) The maximum amount payable to an individual during any
disability benefit period for family temporary disability insurance
shall be six times his or her "weekly benefit amount," but in no case
shall the total amount of benefits payable be more than the total
wages paid 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).
   (d) No more than six weeks of family temporary disability
insurance benefits shall be paid within any 12-month period.
   (e) An individual shall file a claim for family temporary
disability insurance benefits not later than the 41st consecutive day
following the first compensable day with respect to which the claim
is made for benefits, which time shall be extended by the department
upon a showing of good cause. If a first claim is not complete, the
claim form shall be returned to the claimant for completion and it
shall be completed and returned not later than the 10th consecutive
day after the date it was mailed by the department to the claimant,
except that such time shall be extended by the department upon a
showing of good cause.



3302.  For purposes of this part:
   (a) "Care recipient" means the family member who is receiving care
for a serious health condition or the new child with whom the care
provider is bonding.
   (b) "Care provider" means the family member who is providing the
required care for a serious health condition or the family member who
is bonding with the new child.
   (c) "Child" means a biological, adopted, or foster son or
daughter, a stepson or stepdaughter, a legal ward, a son or daughter
of a domestic partner, or the person to whom the employee stands in
loco parentis.
   (d) "Domestic partner" has the same meaning as defined in Section
297 of the Family Code.
   (e) "Family care leave" means any of the following:
   (1) Leave to bond with a minor child within the first year of the
child's birth or placement in connection with foster care or
adoption.
   (2) Leave to care for a child, parent, spouse, or domestic partner
who has a serious health condition.
   (f) "Family member" means child, parent, spouse, or domestic
partner as defined in this section.
   (g) "Parent" means a biological, foster, or adoptive parent, a
stepparent, a legal guardian, or other person who stood in loco
parentis to the employee when the employee was a child.
   (h) "Serious health condition" means an illness, injury,
impairment, or physical or mental condition that involves inpatient
care in a hospital, hospice, or residential health care facility, or
continuing treatment or continuing supervision by a health care
provider, as defined in Section 12945.2 of the Government Code.
   (i) "Spouse" means a partner to a lawful marriage.
   (j) "Valid claim" means any claim for family temporary disability
insurance benefits made in accordance with the provisions of this
code, and any rules and regulations adopted thereunder, if the
individual claiming benefits is unemployed and has been paid the
necessary wages in employment for employers to qualify for benefits
under Section 2652 and is caring for a seriously ill family member,
or bonding with a minor child during the first year after the birth
or placement of the child in connection with foster care or adoption.
   (k) "Twelve-month period," with respect to any individual, means
the 365 consecutive days that begin with the first day the individual
first establishes a valid claim for family temporary disability
benefits.


3302.1.  For purposes of this chapter:
   (a) "Disability benefit period" with respect to any individual,
means the period of unemployment beginning with the first day an
individual establishes a valid claim for family temporary disability
insurance benefits to care for a seriously ill family member, or to
bond with a minor child during the first year after the birth or
placement of the child in connection with foster care or adoption.
   (b) Periods of family care leave for the same care recipient
within a 12-month period shall be considered one disability benefit
period.
   (c) Periods of disability for pregnancy, as defined in Section
2608, and periods of family care leave for bonding associated with
the birth of that child shall be considered one disability benefit
period.


3303.  An individual shall be deemed eligible for family temporary
disability insurance benefits equal to one-seventh of his or her
weekly benefit amount on any day in which he or she is unable to
perform his or her regular or customary work because he or she is
bonding with a minor child during the first year after the birth or
placement of the child in connection with foster care or adoption or
caring for a seriously ill child, parent, spouse, or domestic
partner, only if the director finds all of the following:
   (a) The individual has made a claim for temporary disability
benefits as required by authorized regulations.
   (b) The individual has been unable to perform his or her regular
or customary work for a seven-day waiting period during each
disability benefit period, with respect to which waiting period no
family temporary disability insurance benefits are payable.
   (c) The individual has filed a certificate, as required by
Sections 2708 and 2709.



3303.1.  (a) An individual is not eligible for family temporary
disability insurance benefits with respect to any day that any of the
following apply:
   (1) The individual has received, or is entitled to receive,
unemployment compensation benefits under Part 1 (commencing with
Section 100) or under an unemployment compensation act of any other
state or of the federal government.
   (2) The individual has received, or is entitled to receive, "other
benefits" in the form of cash benefits as defined in Section 2629.
   (3) The individual has received, or is entitled to receive, state
disability insurance benefits under Part 2 (commencing with Section
2601) or under a disability insurance act of any other state.
   (4) Another family member, as defined in Section 3302, is ready,
willing, and able and available for the same period of time in a day
that the individual is providing the required care.
   (b) An individual who is entitled to leave under the FMLA and the
CFRA must take Family Temporary Disability Insurance (FTDI) leave
concurrent with leave taken under the FMLA and the CFRA.
   (c) As a condition of an employee's initial receipt of family
temporary disability insurance benefits during any 12-month period in
which an employee is eligible for these benefits, an employer may
require an employee to take up to two weeks of earned but unused
vacation leave prior to the employee's initial receipt of these
benefits. If an employer so requires an employee to take vacation
leave, that portion of the vacation leave that does not exceed one
week shall be applied to the waiting period required under
subdivision (b) of Section 3303. This subdivision may not be
construed in a manner that relieves an employer of any duty of
collective bargaining the employer may have with respect to the
subject matter of this subdivision.



3304.  Eligible workers shall receive benefits in accordance with
provisions established under this division.



3305.  If the director finds that any individual falsely certifies
the medical condition of any person in order to obtain family
temporary disability insurance benefits, with the intent to defraud,
whether for the maker or for any other person, the director shall
assess a penalty against the individual in the amount of 25 percent
of the benefits paid as a result of the false certification. The
provisions of Article 8 (commencing with Section 1126) of Chapter 4
of Part 1, with respect to assessments, the provisions of Article 9
(commencing with Section 1176) of Chapter 4 of Part 1, with respect
to refunds, and the provisions of Chapter 7 (commencing with Section
1701) of Part 1, with respect to collections, shall apply to the
assessments provided by this section. Penalties collected under this
section shall be deposited in the contingent fund.



3306.  (a) The director may request additional medical evidence to
supplement the first or any continued claim if the additional
evidence can be procured without additional cost to the care
recipient. The director may require that the additional evidence
include any or all of the following information:
   (1) Identification of diagnoses.
   (2) Identification of symptoms.
   (3) A statement setting forth the facts of the care recipient's
serious health condition that warrants the participation of the
employee. The statement shall be completed by any of the following
people:
   (A) The physician or practitioner treating the care recipient.
   (B) The registrar, authorized medical officer, or other duly
authorized official of the hospital or health facility treating the
care recipient.
   (C) An examining physician or other representative of the
department.
   (b) Except as provided in Section 2709, the director may require
the care recipient to submit to reasonable examinations for the
purpose of determining all of the following:
   (1) Whether a serious health condition exists.
   (2) Whether a care provider's participation is warranted.
   (3) The period of time that the care provider's participation is
warranted.

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3501.  The purpose of this part is to compensate in part for the
added wage loss sustained by individuals because of the extended
duration of unemployment during prolonged periods of cyclical and
technological unemployment in California. This part may be cited as
the "Miller-Collier Act."



3502.  (a) Except as otherwise provided, the provisions and
definitions of Part 1 of this division apply to this part. In case of
any conflict between the provisions of Part 1 and the provisions of
this part, the provisions of this part shall prevail with respect to
extended unemployment compensation.
   (b) Except as otherwise provided, subdivision (d) of Section 1253,
and Sections 1030, 1032, 1254, 1277, 1281, 1327, 1328, 1329, 1330,
and 1331 do not apply to this part.
   (c) The provisions of Part 2 of this division do not apply to this
part.


3503.  For the purposes of this part:
   (a) "Extended duration benefits" means the extended unemployment
compensation benefits payable under this part.
   (b) "Normal benefits" means the unemployment compensation benefits
payable under Part 1 (commencing with Section 100) of this division.
   (c) "Exhaustee" means an individual who is not entitled to normal
benefits due to either of the following:
   (1) He or she has an unexpired benefit year and has exhausted his
or her normal benefits.
   (2) His or her most recent benefit year expired in the week in
which he or she filed a primary claim or in the immediately preceding
13 calendar weeks and he or she is not entitled to establish a
benefit year.
   (d) "Insured unemployment rate" for a week means the percentage
arrived at by dividing:
   (1) The average weekly number of individuals filing claims for
regular compensation for weeks of unemployment with respect to the
period consisting of the week and the immediately preceding 12 weeks,
by
   (2) The average monthly covered employment for the same period.
   The director shall interpret this definition in accordance with
regulations and guidelines prescribed by the United States Secretary
of Labor which are applicable to subdivision (e) of Section 203 of
the federal act.
   (e) "Extended benefit period" means the period beginning with the
third week after the first week for which there is an "on" indicator,
and ending with the third week after the first week for which there
is an "off" indicator, except no extended benefit period shall last
for a period of less than 13 consecutive weeks and no extended
benefit period may begin before the 14th week after the close of a
prior extended benefit period. There is an "on" indicator for a week
if the insured unemployment rate equals or exceeds 6 percent. There
is an "off" indicator for a week if the insured unemployment rate is
less than 6 percent.
   (f) "Primary claim" means the first claim for extended duration
benefits filed by an exhaustee with an effective date within an
extended benefit period for the purpose of establishing an extended
duration award and an extended duration period.
   (g) "Extended duration award" means the maximum amount of extended
duration benefits allowable under this part to an eligible
exhaustee.
   (h) "Extended duration period" means a period beginning with the
first day of the week with respect to which an exhaustee filed a
valid primary claim and ending with the last week which begins on or
before the last day of the fifth calendar month following the
calendar month which contains the extended duration week or a major
portion of the extended duration week in which the valid primary
claim was filed.
   (i) "Parent benefit year" means the benefit year with respect to
which an individual becomes an exhaustee.
   (j) "Federal act" means the "Federal-State Extended Unemployment
Compensation Act of 1970".



3504.  The director shall during the week immediately preceding each
calendar week compute the insured unemployment rate for that
calendar week. The computation shall be a public record.



3505.  (a) Notwithstanding any other provision of this part, no
payment of extended duration benefits shall be made to any individual
for any week or part of any week with respect to which he is
entitled to receive unemployment compensation benefits as a result of
participation by this state pursuant to the provision of any federal
law providing for the payment of such benefits or as a result of the
application in any other manner to this state of any federal law
providing for the payment of such benefits.
   (b) With respect to weeks commencing on or after November 29,
1970, this subdivision shall apply and subdivision (a) of this
section shall not apply to benefits under the "Federal-State Extended
Unemployment Compensation Act of 1970".
   (1) Notwithstanding any other provision of this part, if an
individual would have rights to receive benefits under the federal
act within an "extended benefit period" under the federal act, the
director shall cancel such individual's rights to extended duration
benefits within that "extended benefit period".
   (2) A cancellation under this section does not affect extended
duration benefits paid with respect to a week preceding such
cancellation.
   (3) Notwithstanding a cancellation under this section, an
individual otherwise qualified for extended duration benefits during
an "extended benefit period" under the federal act, may, upon the
expiration of his "eligibility period" specified by the federal act,
establish rights to, and be paid, extended duration benefits subject
to the following conditions:
   (A) If the individual has filed a primary claim in the "extended
benefit period", under the federal act, he may reestablish his
extended duration benefit rights, if the extended duration period
would not have expired.
   (B) If the individual has not filed a primary claim in the
"extended benefit period", under the federal act, and he has claimed
benefits pursuant to the federal act during an extended duration week
in such "extended benefit period", he may file a primary claim
effective with that extended duration week, if the extended duration
period would not have expired.
   (C) If the individual has not filed a primary claim in the
"extended benefit period", under the federal act, and he has claimed
benefits pursuant to the federal act but not during an extended
duration week in such "extended benefit period", he may file a
primary claim in an extended duration week.
   (D) The individual shall not be paid extended duration benefits
for any week for which he receives federal benefits.
   (4) An individual may be paid extended duration benefits with
respect to a parent benefit year only to the extent that the total
amount of such extended duration benefits and benefits paid under the
federal act since the beginning of such parent benefit year does not
exceed 13 times his weekly benefit amount or one-half of the maximum
amount of normal benefits payable to him during that parent benefit
year, whichever is the lesser.



3506.  Notwithstanding any other provision of this part, the
Governor may, if permitted by federal law, suspend the payment of
extended duration benefits under this part, to the extent necessary
to ensure that otherwise eligible individuals are not denied, in
whole or in part, the receipt of emergency unemployment compensation
benefits authorized by the federal Emergency Unemployment
Compensation Act of 1991 (P.L. 102-164) or any extension of that act,
including, but not limited to, Public Law 102-244, and that the
state receives maximum reimbursement from the federal government for
the payment of those emergency benefits.

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3551.  Extended duration benefits are payable from the Unemployment
Fund to unemployed individuals who are eligible under this part.



3552.  An unemployed individual is eligible to receive extended
duration benefits with respect to any week only if the director finds
that:
   (a) An extended duration award has been established for the
individual.
   (b) The week is:
   (1) Within the extended duration period of the award; and
   (2) Within an extended benefit period.
   (c) He or she meets the eligibility requirements of Part 1
(commencing with Section 100) of this division, except those excluded
under subdivision (b) of Section 3502.
   (d) He or she is not subject to disqualification, and is not under
disqualification for normal benefits, under any provision of Part 1
(commencing with Section 100) of this division.
   (e) He or she had earnings from employment subject to the
provisions of this division which exceed 40 times his or her most
recent weekly benefit amount in the base period in which he or she
exhausted all rights to regular compensation.
   For the purpose of this section "wages" includes wages due to an
individual but unpaid within the time limit provided by law.
   (f) During any week within an extended benefit period under the
federal act, the provisions of subdivision (d) of Section 4552 and
Sections 4553, 4554, 4555, and 4556 shall apply to claims filed under
this part.


3553.  The filing of a valid primary claim by an exhaustee shall
constitute an election by him to claim extended duration benefits to
the exclusion of filing a new claim for normal benefits for any week
of unemployment subsequent to the filing of such primary claim for
which extended duration benefits are payable to him.

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3601.  An exhaustee's weekly benefit amount under an extended
duration award shall be the same as his weekly benefit amount for the
parent benefit year.


3602.  An exhaustee's extended duration award during any one
extended duration period shall be 13 times his weekly benefit amount
or one-half of the maximum amount of normal benefits payable to him
during his parent benefit year, whichever is the lesser.




3603.  Only one extended duration award may be established for an
exhaustee based on any one parent benefit year.

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3651.  Claims for extended duration benefits shall be made as
provided in this article.



3652.  An exhaustee who desires to claim extended duration benefits
shall file a valid primary claim. A primary claim for extended
duration benefits shall be valid only if its effective date is within
an extended benefit period and the individual filing it is an
unemployed exhaustee. For the purpose of determining whether a
primary claim is a "valid primary claim" within the meaning of this
section, an individual otherwise unemployed shall be deemed
unemployed even though wages, as defined in Section 1252, which are
for a period subsequent to the termination of performance of services
are payable with respect to the week for which the individual files
the claim.



3653.  The effective date of a valid primary claim shall be
determined in the same manner as the effective date of a new claim
for normal benefits pursuant to Section 1326.



3654.  The department shall give a notice of the filing of a primary
claim or an additional claim to the employing unit by which the
exhaustee was last employed immediately preceding the filing of the
claim unless the additional claim is the result of the filing of a
partial claim as defined by the department, there has not been a
subsequent employing unit which is designated as the last employer,
and there is no separation issue. The employing unit so notified
shall submit within 10 days after the mailing of the notice any facts
then known which may affect the exhaustee's eligibility for extended
duration benefits. The 10-day period may be extended for good cause.
If after the 10-day period the employing unit acquires knowledge of
facts which may affect the eligibility of the exhaustee and those
facts could not reasonably have been known within the period, the
employing unit shall within 10 days of acquiring that knowledge
submit those facts to the department, and the 10-day period may also
be extended for good cause.


3654.1.  (a) For the purpose of determining whether an unemployed
individual meets the eligibility requirements of subdivision (e) of
Section 3552, the director may pursuant to his authorized regulations
require that wage and employment information shall be submitted to
the director, within 10 days after the mailing of a request by the
director, by any or all of the following:
   (1) Each employing unit subsequent to the end of the base period
of the new claim and prior to the effective date of a valid primary
claim for extended duration benefits.
   (2) Each employing unit in the four quarters immediately preceding
the beginning of the base period of the new claim.
   (b) The 10-day period may be extended for good cause.




3654.2.  Any employing unit who fails to furnish wage information
requested by the director pursuant to Section 3654.1 shall be subject
to a penalty of ten dollars ($10) for each such report not
submitted. The director shall assess the penalty and the provisions
of Part 1 (commencing with Section 100) of this division with respect
to assessments, refunds, and collections shall apply. Penalties
collected under this section shall be deposited in the Unemployment
Fund.


3654.3.  If any employing unit fails to respond to a request for
wage information within the period prescribed by Section 3654.1, the
director shall make a determination based upon available information.



3654.4.  The department shall consider the facts submitted by an
employing unit pursuant to Section 3654.1 and make a determination as
to the exhaustee's eligibility for extended duration benefits under
subdivision (e) of Section 3552. The department shall promptly notify
the exhaustee and any employing unit who prior to the determination
has submitted any facts pursuant to Section 3654.1 of the
determination and the reasons therefor. The exhaustee and any such
employing unit may appeal therefrom to an administrative law judge
within 20 days from mailing or personal service of notice of the
determination. The 20-day period may be extended for good cause. The
director shall be an interested party to any appeal.
   "Good cause," as used in this section, shall include, but not be
limited to, mistake, inadvertence, surprise, or excusable neglect.



3655.  The Employment Development Department shall consider the
facts submitted by an employer pursuant to Section 3654 and, if
benefits are claimed subsequent to the filing of the extended
duration benefits claim, make a determination as to the exhaustee's
eligibility for the extended duration benefits. The Employment
Development Department shall promptly notify the exhaustee and any
employer who prior to the determination has submitted any facts
pursuant to Section 3654 of the determination and the reasons
therefor. The exhaustee and any such employer may appeal therefrom to
an administrative law judge within 20 days from mailing or personal
service of notice of the determination. The 20-day period may be
extended for good cause. The Director of Employment Development shall
be an interested party to any appeal.
   "Good cause," as used in this section, shall include, but not be
limited to, mistake, inadvertence, surprise, or excusable neglect.




3656.  Upon the filing of a valid primary claim by an exhaustee, the
department shall promptly make an extended duration award
computation which shall set forth the maximum amount of extended
duration benefits potentially payable during the extended duration
period, the weekly benefit amount, and the expiration date of the
extended duration period. The department shall promptly notify the
exhaustee of the computation. He may, within 20 days after the
mailing or personal service of the notice of computation, protest its
accuracy. The 20-day period may be extended for good cause. The
department shall consider any such protest and shall promptly notify
the exhaustee of the recomputation or denial of recomputation. An
appeal may be taken from a notice of denial of recomputation in the
manner prescribed in Section 3655. The director shall be an
interested party to any appeal.
   "Good cause," as used in this section, shall include, but not be
limited to, mistake, inadvertence, surprise, or excusable neglect.