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) 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.
(e) 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.
(f) 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.
(g) (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.
(h) 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.
(i) 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.
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) 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.
(e) 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.
(f) 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.
(g) (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.
(h) 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.
(i) 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.
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) 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.
(e) 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.
(f) 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.
(g) (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.
(h) 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.
(i) 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.
