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Article 12. Judicial Review of California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 12.
(a) No suit or proceeding shall be maintained in any court
for the recovery of any amount of contributions, interest or
penalties alleged to have been erroneously or illegally assessed or
collected unless a claim for refund or credit has been filed pursuant
to this chapter. Within 90 days after the service of the notice of
the decision of the appeals board upon an appeal, the claimant may
bring an action against the director on the grounds set forth in the
claim in a court of competent jurisdiction in the County of
Sacramento for the recovery of the whole or any part of the amount
with respect to which the claim has been denied. The director may, in
writing, extend for a period of not exceeding two years the time
within which such action may be instituted if written request for
such extension is filed with the director within the 90-day period.
Failure to bring action within the time specified constitutes a
waiver of any demand against the state on account of alleged
overpayments. If the appeals board fails to serve notice of its
decision on the appeal within 90 days after an appeal is filed, the
claimant may consider the claim denied and may bring an action
against the director under this section.
(b) To the extent permitted by federal law, any entity or organization which has made a bona fide claim that it is a church or convention or association of churches, or an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches, may bring suit to challenge a decision of the appeals board denying an exemption as a church or religious organization by paying the amount of the last quarter assessed immediately preceding the initial appeals board decision denying the exemption and then making a claim for refund or credit pursuant to this section. An entity or organization shall be deemed to have made a bona fide claim that it is a church or religious entity for purposes of this section if either of the following is established:
(1) That it has been recognized as a church or religious organization by any entity of state or federal government.
(2) That the appeals board found that the department has failed to show by a preponderance of the evidence admitted at the proceedings to determine tax liability that the petitioner has not made a bona fide claim of coverage under subdivision (a) as a church or religious entity.
(c) A petition for writ of mandate shall lie to challenge any decision denying eligibility under subdivision (b), and shall not be deemed an action proscribed by or within the meaning of Section 32 of Article XIII of the California Constitution or Section 1851. The time within which to file any claim or action under subdivision (a) shall be extended during the pendency of any action brought pursuant to this subdivision.
(b) To the extent permitted by federal law, any entity or organization which has made a bona fide claim that it is a church or convention or association of churches, or an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches, may bring suit to challenge a decision of the appeals board denying an exemption as a church or religious organization by paying the amount of the last quarter assessed immediately preceding the initial appeals board decision denying the exemption and then making a claim for refund or credit pursuant to this section. An entity or organization shall be deemed to have made a bona fide claim that it is a church or religious entity for purposes of this section if either of the following is established:
(1) That it has been recognized as a church or religious organization by any entity of state or federal government.
(2) That the appeals board found that the department has failed to show by a preponderance of the evidence admitted at the proceedings to determine tax liability that the petitioner has not made a bona fide claim of coverage under subdivision (a) as a church or religious entity.
(c) A petition for writ of mandate shall lie to challenge any decision denying eligibility under subdivision (b), and shall not be deemed an action proscribed by or within the meaning of Section 32 of Article XIII of the California Constitution or Section 1851. The time within which to file any claim or action under subdivision (a) shall be extended during the pendency of any action brought pursuant to this subdivision.
If, in any action authorized by Section 1241, judgment is
rendered for the plaintiff, the amount of the judgment shall first be
credited on any contributions, interest, and penalties due from the
plaintiff under this division, and the balance of the judgment shall
be refunded to the plaintiff. In any such judgment, interest shall be
allowed and paid only to the extent that interest and penalties
collected under this division are available therefor, at the rate of
12 percent per annum upon the amount of contributions found to have
been illegally collected from the date of the payment of the
contributions to the date of the judgment.
A decision of the appeals board on an appeal from a denial of
a protest under Section 1034 or on an appeal from a denial or
granting of an application for transfer of reserve account under
Article 5 (commencing with Section 1051) shall be subject to judicial
review if an appropriate proceeding is filed by the employer within
90 days of the service of notice of the decision. The director may,
in writing, extend for a period of not exceeding two years the time
within which such proceeding may be instituted if written request for
such extension is filed with the director within the 90-day period.
