Article 4. Elective Coverage of California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 3. >> Article 4.
An employing unit, not otherwise subject to this division,
which files with the director its written election to become an
employer for not less than two calendar years, shall, with the
written approval of the election by the director, become an employer
subject to this division to the same extent as other employers as of
the date stated in the approval.
Except as provided by Sections 702.1, 709, and 710, any
employing unit for which services that do not constitute employment
are performed, may file with the director a written election that all
such services performed by individuals in its employ in one or more
distinct establishments or places of business shall be deemed to
constitute employment by an employer for all the purposes of this
division for not less than two calendar years. Upon the written
approval of the election by the director, such services shall be
deemed to constitute employment subject to this division from and
after the date stated in the approval.
(a) As used in this section, "nonprofit organization" means
any corporation, community chest, fund, or foundation for which
services that constitute employment under Section 608 are performed
and for which other services that do not constitute employment are
performed, or any nonprofit organization described in Section 608 for
which all services performed do not constitute employment.
(b) No election filed by a nonprofit organization under Section
702 shall be effective for service performed after December 31, 1971.
All elections for coverage filed by a nonprofit organization under
Section 702 prior to January 1, 1972, shall be terminated effective
December 31, 1971.
(c) Any nonprofit organization for which any services that do not
constitute employment are performed may, when requested by a written
petition signed by a majority of its employees to be covered by the
election, file with the director a written election that the services
performed in one or more distinct establishments or places of
business and to be covered by the election shall be deemed to
constitute employment by an employer for all the purposes of this
division for not less than two calendar years. If the director finds
that a majority of the employees to be covered by the election have
signed the petition, a nonprofit organization shall, upon the written
approval of the director, become an employer with respect to such
services subject to this division to the same extent as other
employers, and services performed by its employees covered by the
election, shall constitute employment subject to this division.
Beginning at that time it shall withhold from the wages of employees
covered by the election the contributions required for unemployment
compensation disability benefits.
(d) A nonprofit organization may exclude from coverage under an
election pursuant to this section any service excluded under Section
634.5.
(e) Notwithstanding the provisions of subdivision (d), a nonprofit
organization shall not exclude from unemployment compensation
disability coverage under an election pursuant to this section any
service that is included in "employment" for the purposes of Part 2
(commencing with Section 2601) of this division.
(f) In lieu of the contributions required of employers, each
nonprofit organization that has elected coverage under this section
may elect any method of financing coverage by an election under this
section that is permitted under Section 803. Subdivision (c) of
Section 801 shall apply to any such election under Section 803.
(g) Except as inconsistent with the provisions of this section,
the provisions of this division and authorized regulations shall
apply to any matter arising pursuant to this section.
Any employing unit for which services that do not constitute
employment under Section 631 are performed, may file with the
director a written election, agreed to by both the employing unit and
the individuals in its employ specified in Section 631, that all
such services performed by such individuals in one or more distinct
establishments or places of business shall be deemed to constitute
employment by an employer for all the purposes of Part 2 (commencing
with Section 2601) of this division. Upon the written approval of the
election by the director, such services shall be deemed to
constitute employment subject to such part from and after the date
stated in the approval. Sections 704 and 707 shall apply to elections
under this section.
(a) Any employing unit who is an employer under this
division may file with the director a written election to cover, for
the purposes of Part 2 (commencing with Section 2601) only, services
performed by any of the following:
(1) All eligible employees who are a part of a labor organization,
provided the election is the result of a negotiated agreement
between the employer and the recognized employee organization.
(2) All eligible employees in its employ in one or more distinct
establishments or places of business who are not part of a labor
organization, when the election is requested by a written petition
signed by a majority of the eligible employees to be covered by the
election.
(b) "Eligible employee," as used in this section, means an
employee who is a California resident whose services are covered
under the unemployment compensation laws of another state which does
not have a disability insurance program, and who is an "employee," as
defined in Section 13004, for whom the employer complies with the
personal income tax withholding provisions of Division 6 (commencing
with Section 13000).
(c) Upon the filing of an election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees who are subject to the
election shall be deemed to constitute employment subject to that
part. Sections 704, 707, 986, and 2903 shall apply to elections under
this section.
Services not included within "employment" and performed
entirely without this State, with respect to no part of which
contributions are required and paid under an unemployment
compensation law of any other state or of the Federal Government,
shall be deemed to be employment if the individual performing such
services is a resident of this State and the director approves the
election of the employing unit for whom the services are performed
that the entire service of such individual shall be deemed to be
employment subject to this division. Such election shall be for the
period, made in the manner, and subject to termination as provided in
this article for other elections of coverage.
The director shall not approve an election under Section 701,
702, 702.1, 702.5, 703, 708, or 708.5 if he or she finds that any of
the following conditions exist:
(a) The self-employed individual is currently unable to perform
his or her regular and customary work due to injury or illness.
(b) The employing unit or self-employed individual is not normally
and continuously engaged in a regular trade, business, or
occupation.
(c) The employing unit or self-employed individual intends to
discontinue the regular trade, business or occupation within eight
calendar quarters.
(d) The regular trade, business, or occupation of the employing
unit or self-employed individual is seasonal in its operations.
(e) The major portion of the self-employed individual's
remuneration is not derived from his or her trade, business, or
occupation.
(f) The self-employed individual is unable to provide a copy of
his or her Internal Revenue Service Schedule SE as reported on or
before April 15 of the preceding year showing a net profit of at
least four thousand six hundred dollars ($4,600) or to certify to an
average net profit of at least one thousand one hundred fifty dollars
($1,150) per quarter since becoming self-employed or for the
preceding four quarters, whichever period is less.
(g) The employing unit or self-employed individual has failed to
make a return or report, or to pay contributions within the time
required by this division and there is an unpaid amount of
contributions owing by the employing unit or self-employed
individual.
(h) (1) A prior elective coverage agreement entered into pursuant
to Section 708 or 708.5 has been terminated by the department under
Section 704.1 or by means of a written application for termination as
required by this division, and the individual has not completed a
waiting period of 18 consecutive months from the date of termination.
(2) The waiting period for reinstatement to the elective coverage
program may be waived for any individual who becomes eligible for
coverage after being terminated under paragraph (1), (2), (4), or (5)
of subdivision (a) of Section 704.1, upon receipt by the department
of an application for coverage to be effective the first day of the
quarter in which the application is received.
(i) The employing unit or any officer or agent of or person having
charge of the affairs of the employing unit, or the self-employed
individual has been convicted within the preceding eight consecutive
calendar quarters of any violation under Chapter 10 (commencing with
Section 2101). For the purposes of this subdivision, a plea or
verdict of guilty or a conviction following a plea of nolo contendere
is deemed to be a conviction irrespective of whether an order
granting probation or other order is made suspending the imposition
of the sentence or whether sentence is imposed but execution thereof
is suspended.
(j) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.
(a) Notwithstanding any other provision of this division,
the director may terminate any elective coverage agreement under this
article if he or she finds that any of the following conditions
exist:
(1) The employing unit or self-employed individual is not normally
and continuously engaged in a regular trade, business, or
occupation.
(2) The employing unit or self-employed individual has
discontinued the regular trade, business, or occupation.
(3) The regular trade, business, or occupation of the employing
unit or self-employed individual is seasonal in its operations.
This paragraph shall not apply to any public entity.
(4) The major portion of the self-employed individual's
remuneration is not derived from his or her trade, business, or
occupation.
(5) The self-employed individual reports a net profit of less than
four thousand six hundred dollars ($4,600) on his or her Internal
Revenue Service Schedule SE for a third consecutive year.
(6) The employing unit or self-employed individual has failed to
make a return or report, or to pay contributions within the time
required by this division and there is an unpaid amount of
contributions owing by the employing unit or self-employed
individual, except when the elective coverage agreement has been in
effect for less than two complete calendar years.
(7) The employing unit or self-employed individual, or a
representative thereof, is found by the director to have filed a
false statement in order to be considered eligible for elective
coverage.
(8) The employing unit or any officer or agent of or person having
charge of the affairs of the employing unit, or the self-employed
individual is convicted of any violation pursuant to Chapter 10
(commencing with Section 2101). For the purposes of this paragraph, a
plea or verdict of guilty or a conviction following a plea of nolo
contendere is deemed to be a conviction irrespective of whether an
order granting probation or other order is made suspending the
imposition of the sentence or whether sentence is imposed but
execution thereof is suspended.
(b) The director shall give to the employing unit, or to the
self-employed individual, a written notice pursuant to Section 1206
of the director's termination of the elective coverage agreement
under this section. The date of termination may be the end of the
calendar quarter immediately preceding the existence of any condition
specified in subdivision (a), or the end of any subsequent calendar
quarter thereafter, as determined by the director.
Any termination of elective coverage shall not affect the
liability of the employing unit or self-employed individual for any
contributions due, owing, and unpaid to the department.
(c) Sections 1222, 1223, and 1224 shall apply to matters arising
under this section.
(d) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.
For purposes of Sections 704 and 704.1:
(a) "Normally and continuously engaged in a regular trade,
business, or occupation" means both of the following:
(1) Regularly performing services and engaging in an uninterrupted
pattern of work that is customary for the individual's trade,
business, or occupation.
(2) In the case of a self-employed individual or individual who is
an employer is in a trade, business, or occupation that requires a
valid and active license, that individual has been issued that
license. An individual operating a business without a required
license shall not be considered normally engaged in a trade,
business, or occupation.
(b) "Seasonal in its operations" means any of the following:
(1) The trade, business, or occupation is not continuous or
carried on throughout the year.
(2) The operation of the trade, business, or occupation is
temporarily or intermittently suspended for regularly recurring
periods of time.
(3) The performance of services in the trade, business, or
occupation is regularly suspended due to weather, climate, or other
conditions.
(a) An elective coverage agreement approved by the director
pursuant to any section of this article may be terminated as of
January 1st of any calendar year only if the agreement has been in
effect for two calendar years and if the employing unit or
self-employed individual, on or before the 31st day of January of
that year, has filed with the director a written application for
termination.
(b) An elective coverage agreement entered into prior to January
1, 1994, pursuant to Section 708 or 708.5 may be terminated on
January 1, 1994, if the self-employed individual files a written
application for termination with the director on or before June 30,
1994.
The director may for good cause waive the requirement of
Section 705 that a written application for termination shall be filed
on or before the thirty-first day of January.
Every employing unit which files an election to become an
employer pursuant to Section 701, 702, 702.1, 702.5, 703, 709, or
710, or an application for termination pursuant to Section 705, shall
post and maintain printed notices of such election or application on
his or her premises, as prescribed by authorized regulation.
Individuals in the employ of any employing unit which files an
election to become an employer shall be given a reasonable
opportunity to file objections or to be heard in the matter prior to
the director's approval of the election.
(a) Any individual who is an employer under this division or
any two or more individuals who have so qualified may file with the
director a written election that their services shall be deemed to be
services performed by individuals in employment for an employer for
all the purposes of this division. Upon the approval of the election
by the director, the services of those individuals shall be deemed to
constitute employment for an employer for all of the purposes of
this division. Regardless of their actual earnings, for the purposes
of computing benefit rights and contributions under this division,
they shall be deemed to have received the following remuneration for
each calendar quarter:
(1) For purposes of unemployment insurance, the highest amount of
wages required to be entitled to the maximum benefit amount provided
in Section 1280.
(2) For purposes of disability insurance, the highest amount of
wages required to be entitled to the maximum benefit amount provided
in Section 2655.
(A) For disability insurance contributions on or after July 1,
1994, the quarterly contribution shall be the product of one-fourth
of the amount of net profit, but not less than one thousand one
hundred fifty dollars ($1,150) except when subparagraph (B) applies,
reported on or before April 15 of the preceding year as declared on
the Internal Revenue Service Schedule SE filed by an individual who
is an employer under this division and the contribution rate
established pursuant to Section 984.5, except as provided by Section
985. On January 1, 1995, quarterly income credits for the period from
July 1, 1993, to June 30, 1994, inclusive, shall be changed to
one-fourth of the amount of the net profit or four thousand six
hundred dollars ($4,600), whichever is greater, reported on or before
April 15, 1993, as declared on the Internal Revenue Service Schedule
SE for the 1992 taxable year filed by each individual having an
elective coverage agreement in effect for that period or any portion
thereof. If no Internal Revenue Service Schedule SE was filed, the
individual shall be assigned a quarterly income credit of one
thousand one hundred fifty dollars ($1,150). Quarterly income credits
for this period shall not exceed seven thousand nine hundred
forty-two dollars ($7,942). If any quarterly income credit for the
period from July 1, 1993, to June 30, 1994, inclusive, was reduced
prior to January 1, 1995, the amended income credit shall be reduced
proportionately. Benefits payable for periods of disability
commencing on or after January 1, 1995, shall be based on Section
2655. For purposes of this division, income credits shall be included
in the term "wages."
(B) The self-employed individual shall not pay contributions for
periods of any disability, including periods for which some services
are performed while disabled. The self-employed individual shall file
a quarterly report of wages and certify as to the period of
disability in order to maintain eligibility for elective disability
insurance coverage and benefits. During periods of disability, the
self-employed individual shall reduce his or her quarterly
contributions by dividing the quarterly contribution amount by 91 to
compute the daily contribution amount, and the daily contribution
amount shall be multiplied by the number of days disabled to compute
the amount by which the quarterly contributions shall be reduced. The
department shall reduce income credits utilizing the same
calculation method.
(b) Any individual who is an employer under this division or any
two or more individuals who have so qualified may file with the
director a written election that their services shall be deemed to be
services performed by individuals in employment for an employer for
the purposes of Part 2 (commencing with Section 2601) only. Upon the
approval of the election by the director, the services of those
individuals shall be deemed to constitute employment for an employer
for the purposes of Part 2 (commencing with Section 2601) only.
Regardless of their actual earnings, for the purposes of computing
disability benefit rights and worker contributions, they shall be
deemed to have received remuneration for each calendar quarter the
highest amount of wages required to be entitled to the maximum
benefit award provided in Section 2655. For contributions on or after
July 1, 1994, the quarterly contribution shall be the product of
one-fourth of the amount of net profit, but not less than one
thousand one hundred fifty dollars ($1,150), except when subparagraph
(B) of paragraph (2) of subdivision (a) applies, reported on or
before April 15 of the preceding year as declared on the Internal
Revenue Service Schedule SE filed by an individual who is an employer
under this division and the contribution rate established pursuant
to Section 984.5, except as provided by Section 985. The quarterly
contribution shall be reduced as set forth in subparagraph (B) of
paragraph (2) of subdivision (a) if a disability occurred during the
quarter for which payment is being made. On January 1, 1995,
quarterly income credits for the period from July 1, 1993, to June
30, 1994, inclusive, shall be changed to one-fourth of the amount of
the net profit or four thousand six hundred dollars ($4,600),
whichever is greater, reported on or before April 15, 1993, as
declared on the Internal Revenue Service Schedule SE for the 1992
taxable year filed by each individual having an elective coverage
agreement in effect for that period or any portion thereof. If no
Internal Revenue Service Schedule SE was filed, the individual shall
be assigned a quarterly income credit of one thousand one hundred
fifty dollars ($1,150). Quarterly income credits for this period
shall not exceed seven thousand nine hundred forty-two dollars
($7,942). If quarterly income credits were reduced prior to January
1, 1995, the amended income credits shall be reduced proportionately.
Benefits payable for periods of disability commencing on or after
January 1, 1995, shall be based on Section 2655. For purposes of this
division, income credits shall be included in the term "wages."
(c) (1) Any individual applying for or continuing elective
coverage under this section shall be requested to sign an annual
statement authorizing the department to verify the net profit
declared on his or her Internal Revenue Service Schedule SE. Failure
of the individual to sign a statement authorizing the department to
verify income shall result in the individual being assigned an annual
income level of four thousand six hundred dollars ($4,600) for
contribution and benefit purposes.
(2) Any individual applying for elective coverage shall submit a
copy of his or her Internal Revenue Service Schedule SE filed on or
before April 15 of the preceding year with his or her application for
elective coverage in order to establish first-year contributions and
benefits in excess of the minimum required to qualify for elective
coverage.
(d) Any self-employed individual continuing elective coverage who
fails to file an Internal Revenue Service Schedule SE by April 15 of
each calendar year is required to remit contributions based upon the
last year the self-employed individual filed an Internal Revenue
Service Schedule SE.
(e) Any self-employed individual who has not yet filed an Internal
Revenue Service Schedule SE shall be assigned an annual income level
of four thousand six hundred dollars ($4,600) for contribution and
benefit purposes.
(f) Contributions required under this division are payable on and
after the date stated in the approval of the director. The director
may levy assessments under this division for any amount due when an
elective coverage agreement has been in effect for less than two
complete calendar years. Chapter 7 (commencing with Section 1701),
relating to the collection of amount due, shall apply to this
section.
(g) No benefits shall be paid to any individual based upon
remuneration deemed to have been received pursuant to this section
unless all contributions due with respect to all remuneration deemed
to have been received by the individual pursuant to this section have
been paid to the department.
(h) No benefits shall be paid to any individual based on elective
coverage income credits in his or her base period if his or her
elective coverage agreement has been terminated under paragraph (6)
of subdivision (a) of Section 704.1.
(i) Notwithstanding subdivision (b) of Section 2627, no benefits
shall be paid to any individual covered under this section, with
respect to periods of disability commencing on or after January 1,
1994, until he or she has been unemployed and disabled for a waiting
period of seven consecutive days during each disability benefit
period.
(j) Notwithstanding Section 2653, with respect to periods of
disability commencing on or after January 1, 1994, the maximum amount
of benefits payable to an individual covered under this section
during any one disability benefit period shall be 39 times his or her
weekly benefit amount, but in no case shall the total amount of
benefits payable be more than the total wages credited to the
individual during his or her disability base period. If the benefit
is not a multiple of one dollar ($1), it shall be computed to the
next higher multiple of one dollar ($1).
(k) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.
(a) Any individual who is self-employed, who is not an
employer as defined in any provision of Article 3 (commencing with
Section 675), of Chapter 3 of this part, and who receives the major
part of his or her remuneration from the trade, business, or
occupation in which he or she is self-employed, may file with the
director a written election that his or her services in connection
with his or her trade, business, or occupation shall be deemed to be
services performed by an individual in employment for an employer for
the purposes of Part 2 (commencing with Section 2601) only. Upon the
approval of the election by the director, the services of that
self-employed individual in connection with his or her trade,
business, or occupation shall be deemed to constitute employment for
an employer for the purposes of Part 2 only of this division.
Regardless of his or her actual earnings, for the purpose of
computing disability benefit rights and worker contributions, he or
she shall be deemed to have received remuneration for each calendar
quarter the highest amount of wages required to be entitled to the
maximum benefit award provided in Section 2655. For contributions on
or after July 1, 1994, the quarterly contribution shall be the
product of one-fourth of the amount of net profit, but not less than
one thousand one hundred fifty dollars ($1,150), except when
subparagraph (B) of paragraph (2) of subdivision (a) of Section 708
applies, reported on or before April 15 of the preceding year as
declared on the Internal Revenue Service Schedule SE filed by an
individual who is an employer under this division and the
contribution rate established pursuant to Section 984.5, except as
provided by Section 985. The quarterly contribution shall be reduced
as set forth in subparagraph (B) of paragraph (2) of subdivision (a)
of Section 708 if a disability occurred during the quarter for which
payment is being made. On January 1, 1995, quarterly income credits
for the period from July 1, 1993, to June 30, 1994, inclusive, shall
be changed to one-fourth of the net profit or four thousand six
hundred dollars ($4,600), whichever is greater, reported on or before
April 15, 1993, as declared on the Internal Revenue Service Schedule
SE for the 1992 taxable year filed by each individual having an
elective coverage agreement in effect for that period or any portion
thereof. If no Internal Revenue Service Schedule SE was filed, the
individual shall be assigned a quarterly income credit of one
thousand one hundred fifty dollars ($1,150). Quarterly income credits
for this period shall not exceed seven thousand nine hundred
forty-two dollars ($7,942). If quarterly income credits for the
period from July 1, 1993, to June 30, 1994, inclusive, were reduced
prior to January 1, 1995, the amended income credits shall be reduced
proportionately. Benefits payable for periods of disability
commencing on or after January 1, 1995, shall be based on the
provisions of Section 2655. For purposes of this division, income
credits shall be included in the term "wages."
(b) (1) Any individual applying for or continuing elective
coverage under this section shall be requested to sign an annual
statement authorizing the department to verify the net profit
declared on his or her Internal Revenue Service Schedule SE. Failure
of the individual to sign a statement authorizing the department to
verify income shall result in the individual being assigned an annual
income level of four thousand six hundred dollars ($4,600) for
contribution and benefit purposes.
(2) Any individual applying for elective coverage shall submit a
copy of his or her Internal Revenue Service Schedule SE filed on or
before April 15 of the preceding year with his or her application for
elective coverage in order to establish first-year contributions and
benefits in excess of the minimum required to qualify for elective
coverage.
(c) Any self-employed individual continuing elective coverage who
fails to file an Internal Revenue Service Schedule SE by April 15 of
each calendar year is required to remit contributions based upon the
last year the self-employed individual filed an Internal Revenue
Service Schedule SE.
(d) Any self-employed individual who has not yet filed an Internal
Revenue Service Schedule SE shall be assigned an annual income level
of four thousand six hundred dollars ($4,600) for contribution and
benefit purposes.
(e) Worker contributions required under this division are payable
on and after the date stated in the approval of the director. The
director may levy assessments under this division for any amount due
when an elective coverage agreement has been in effect for less than
two complete calendar years. Chapter 7 (commencing with Section
1701), relating to the collection of amounts due, shall apply to this
section.
(f) No benefits shall be paid to any individual based on elective
coverage income credits in his or her base period if his or her
elective coverage agreement has been terminated under paragraph (6)
of subdivision (a) of Section 704.1.
(g) No benefits shall be paid to any individual based upon
remuneration deemed to have been received pursuant to this section
unless all contributions due with respect to all remuneration deemed
to have been received by that individual pursuant to this section
have been paid to the department.
(h) Notwithstanding subdivision (b) of Section 2627, no benefits
shall be paid to any individual covered under this section, with
respect to periods of disability commencing on or after January 1,
1994, until he or she has been unemployed and disabled for a waiting
period of seven consecutive days during each disability benefit
period.
(i) Notwithstanding Section 2653, with respect to periods of
disability commencing on or after January 1, 1994, the maximum amount
of benefits payable to an individual covered under this section
during any one disability benefit period shall be 39 times his or her
weekly benefit amount, but in no case shall the total amount of
benefits payable be more than the total wages credited to the
individual during his or her disability base period. If the benefit
is not a multiple of one dollar ($1), it shall be computed to the
next higher multiple of one dollar ($1).
(j) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.
Any local public entity located in this state specified in
paragraph (3) of subdivision (a) of Section 135 or Indian tribe
specified in paragraph (6) of subdivision (a) of Section 135 may
elect to become an employer subject to Part 2 (commencing with
Section 2601) of this division with respect to all its employees,
including those with civil service or tenure positions, and may file
its written election with the director. That election may be made on
its own motion by the appropriate governing board of the local public
entity or Indian tribe making the election, or may be made by the
governing board pursuant to a petition signed by a majority of the
employees (including those with civil service or tenure positions)
requesting the governing board to file an election with the director.
Upon the filing of an election, the filing local public entity or
Indian tribe shall, upon approval by the director, become an employer
subject to Part 2 (commencing with Section 2601) to the same extent
as other employers, and services performed by its employees,
including those with civil service or tenure positions, shall
constitute employment subject to that part. Beginning at that time,
it shall withhold from the wages of employees the contributions
required for unemployment compensation disability benefits.
(a) Any public entity or Indian tribe for which services that
do constitute employment under Section 605 are performed and for
which other services that do not constitute employment are performed
may elect to become an employer subject to this part and Parts 3
(commencing with Section 3501) and 4 (commencing with Section 4001)
of this division for not less than two calendar years with respect to
those other services and to have those other services performed by
its employees constitute employment subject to this part and Parts 3
and 4 for that period. Upon the filing of an election the filing
public entity or Indian tribe shall, upon approval by the director,
become an employer subject to this part and Parts 3 and 4 with
respect to the services covered to the same extent as other
employers, and those services performed by its employees, including
those with civil service or tenure positions, shall constitute
employment subject to this part and Parts 3 and 4 effective on the
first day of the calendar quarter following the quarter in which the
election is filed.
(b) The public entity or Indian tribe may exclude from coverage
under an election pursuant to this section any service excluded under
Section 634.5.
(c) Any public entity or Indian tribe that has elected coverage
under this section may elect any method of financing coverage
otherwise permitted under Section 803 or Article 6 (commencing with
Section 821), but the same method of financing coverage shall apply
to all coverage by the public entity. An Indian tribe may make
separate elections for itself and for each subdivision, subsidiary,
or business enterprise wholly owned by that Indian tribe. Subdivision
(b) of Section 802 shall apply to any election under Section 803,
except that any election under Section 803 shall be terminated on the
effective date of the termination of an election for coverage under
this section.
(d) The director may require from the public entity or Indian
tribe employment, financial, statistical, or other information and
reports, properly verified, as may be deemed necessary by the
director to carry out his or her duties under this division, which
shall be filed with the director at the time and in the manner
prescribed by him or her.
(e) The director may tabulate and publish information obtained
pursuant to this section in statistical form and may divulge the name
of the public entity or Indian tribe.
(f) The public entity or Indian tribe shall keep work records as
prescribed by the director for the proper administration of this
division.
(g) Except as inconsistent with the provisions of this section,
the provisions of this division and authorized regulations shall
apply to any matter arising pursuant to this section.
Notwithstanding the provisions of Section 709, any public
school employer, as defined in Section 3540.1 of the Government Code,
may elect to become an employer subject to Part 2 (commencing with
Section 2601) of this division, with respect to all employees who are
a part of an appropriate unit established pursuant to the provisions
of Chapter 10.7 (commencing with Section 3540) of Division 4 of
Title 1 of the Government Code, provided such election is the result
of a negotiated agreement between the public school employer and the
certified employee organization, as such terms are defined in Section
3540.1 of the Government Code. The public school employer may elect
to provide coverage to its management and confidential employees, as
such terms are defined in Section 3540.1 of the Government Code, and
to employees not a part of an appropriate unit, but such election
shall not be contingent upon coverage of other employees of the
public school employer.
Upon filing of such an election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) of this division to the same extent as
other employers, and services performed by its employees, including
those with civil service or tenure positions, shall constitute
employment subject to such part. Beginning at that time, the public
school employer shall withhold from the wages of employees the
contributions required for unemployment compensation disability
benefits.
Notwithstanding Section 709, any public agency, as defined
in Section 3501 of the Government Code, may elect to become an
employer subject to Part 2 (commencing with Section 2601) with
respect to all employees who are a part of an appropriate unit
established pursuant to Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1 of the Government Code, provided the election
is the result of a negotiated agreement between the public agency and
the recognized employee organization, as those terms are defined in
Section 3501 of the Government Code. The public agency employer also
may elect to provide coverage to its management and confidential
employees and to its employees who are not a part of an appropriate
unit, but the election shall not be contingent upon coverage of other
employees of the public agency employer.
Upon filing of such an election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees who are subject to an
election under this section shall constitute employment subject to
that part.
Sections 986 and 2903 shall apply to an employer making an
election pursuant to this section.
(a) Notwithstanding Section 709, an Indian tribe as
described by Section 3306(u) of Title 26 of the United States Code,
including tribes not covered by the Tribal-State Gaming Compact, may
elect to become an employer subject to Part 2 (commencing with
Section 2601) with respect to all employees who meet either of the
following conditions:
(1) Are employed in one or more distinct establishments or places
of business.
(2) Are a part of an employee bargaining unit provided the
election is the result of a negotiated agreement between the Indian
tribe and the recognized employee organization. The Indian tribe also
may elect to provide coverage to its management and confidential
employees and to its employees who are not a part of an employee
bargaining unit, but the election by the bargaining unit shall not be
contingent upon coverage of other employees of the Indian tribe.
(b) Upon filing of an election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees who are subject to an
election under this section shall constitute employment subject to
that part. Sections 986 and 2903 apply to an employer making an
election pursuant to this section.
(c) This section does not affect the requirement that Indian
tribes covered by the Tribal-State Gaming Compact be subject to Part
2 (commencing with Section 2601).
(a) The State of California, as defined as an employer in
Section 3513 of the Government Code, may elect to become an employer
subject to Part 2 (commencing with Section 2601) with respect to all
employees who are part of an appropriate unit established pursuant to
Chapter 10 (commencing with Section 3512) of Division 4 of Title 1
of the Government Code, provided the election is the result of a
negotiated agreement between the State of California and the
recognized employee organization, as those terms are defined in
Section 3513 of the Government Code. The State of California may
elect to provide coverage to its management and confidential
employees and to its employees who are not part of an appropriate
unit, provided that the election is not contingent upon coverage of
other employees of the State of California.
(b) Upon filing of the election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees including those with civil
service or tenure positions who are subject to an election under this
section shall constitute employment subject to that part.
(c) Sections 986 and 2903 apply to an employer making an election
pursuant to this section.
(a) (1) The Trustees of the California State University, as
defined as an employer in Section 3562 of the Government Code, shall
elect to become an employer subject to Part 2 (commencing with
Section 2601) with respect to all employees who are part of an
appropriate unit established pursuant to Chapter 12 (commencing with
Section 3560) of Division 4 of Title 1 of the Government Code,
provided the election is the result of a negotiated agreement between
the Trustees of the California State University and a recognized
employee organization of the university, as those terms are defined
in Section 3562 of the Government Code, or is approved through an
election held by a recognized employee organization of the university
in accordance with the election procedures set forth in subdivision
(d) of this section.
(2) The Trustees of the California State University may also elect
to provide coverage to its management and confidential employees and
to its employees who are not a part of an appropriate unit, provided
that the election is not contingent upon coverage of other employees
of the Trustees of the California State University.
(b) Upon filing of the election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees, including those with civil
service or tenure positions, who are subject to an election under
this section shall constitute employment subject to that part.
(c) Sections 986 and 2903 apply to an employer making an election
pursuant to this section.
(d) (1) Upon an affirmative vote of the governing body of the
employee organization, that governing body shall order that an
election shall be conducted by secret ballot, placing on the ballot
the question of whether the employees of that appropriate bargaining
unit do or do not desire that the Trustees of the California State
University shall become the employer of the employees of that
appropriate bargaining unit for the purposes of being subject to Part
2 (commencing with Section 2601).
(2) The recognized employee organization of the California State
University shall certify the results of the election on the basis of
which ballot choice receives a majority of the valid votes cast.
There shall be printed on the ballot two choices, one which specifies
the desire to be covered by state disability insurance and one which
specifies the desire to continue to be covered by nonindustrial
disability insurance.
(3) The ballot shall present the questions in a manner that
stipulates that, if the election determination is in favor of the
employees' desire to be covered by state disability insurance, this
determination is intended to supplant the nonindustrial disability
insurance program provided for in Article 1.2 (commencing with
Section 89529.15) of Chapter 5 of Part 55 of the Education Code,
after two calendar quarters have elapsed following the effective date
of the state disability insurance coverage.
(a) (1) Notwithstanding Section 709, a community college
district established pursuant to Part 43 (commencing with Section
70900) of Division 7 of the Education Code may elect to become an
employer subject to Part 2 (commencing with Section 2601) with
respect to all employees who are part of an appropriate unit
established pursuant to Chapter 10.7 (commencing with Section 3540)
of Division 4 of Title 1 of the Government Code, if the election is
the result of a negotiated agreement between the community college
district and the certified employee organization, as that term is
defined in subdivision (b) of Section 3540.1 of the Government Code.
The community college district employer may also elect to provide
coverage to its management and confidential employees and to its
employees who are not part of an appropriate unit, but the election
shall not be contingent upon coverage of other employees of the
community college district employer.
(2) Notwithstanding paragraph (1), a community college district
established pursuant to Part 43 (commencing with Section 70900) of
Division 7 of the Education Code that employs an academic employee,
as defined in Section 87001 of the Education Code, may elect to
provide coverage to permanent, part-time, or temporary academic
employees, including permanent, part-time, temporary, or substitute
faculty or instructors, but the election shall not be contingent upon
coverage of other academic employees of the community college
district employer.
(b) Upon the filing of an election pursuant to subdivision (a),
the filing entity shall, upon approval by the director, become an
employer subject to Part 2 (commencing with Section 2601) to the same
extent as other employers, and services performed by its employees
who are subject to an election under this section shall constitute
employment subject to that part.
(c) Sections 986 and 2903 shall apply to an employer making an
election pursuant to this section.
No election filed by any public entity, as defined by Section
605, under any provision of this division shall be effective for
service performed after December 31, 1977, and included in
"employment" pursuant to Section 605, except that elections approved
under subdivision (b) of former Section 710 as in effect prior to
January 1, 1978, shall continue in effect as of such date with
respect to disability insurance coverage for those employee
classifications that are exempt from civil service or merit system
status who perform work equivalent to those employees of the building
trades crafts that are covered by collective-bargaining agreements
with respect to wages, hours, fringe benefits, and other terms and
conditions of employment. No election filed by any nonprofit
organization under any provision of this division shall be effective
for service performed after December 31, 1977, and included in
"employment" pursuant to Section 608. All such elections for coverage
filed prior to January 1, 1978, shall be terminated effective
December 31, 1977, except as otherwise provided by this section and
except that elections to reimburse benefits shall continue in effect,
subject to Section 803, unless terminated by the public entity or
nonprofit organization, and it shall remain liable for its
proportionate share of the additional cost of benefits paid, or of
the cost of benefits (including extended duration benefits and
federal-state extended benefits) paid and charged to its account in
the manner provided by Section 1026 which are based on wages paid for
services during the period of any election for reimbursement of
benefits.
To the extent permitted by federal law, no contributions shall
be due from any nonprofit organization organized before 1960 which
received a retroactive determination after April 1, 1981, and before
April 1, 1982, that it has been a nonprofit organization from the
date it was organized, which made contributions with respect to
service performed in its employ prior to January 1, 1982, and which
elected a method of financing and elected to use prior contributions
until the additional cost of benefits reimbursable by or the cost of
benefits paid and reimbursable by the nonprofit organization together
with the benefits charged and chargeable to the reserve account of
the nonprofit organization as the result of its prior elective
coverage agreement exceed the contributions made by the nonprofit
organization and credited to its reserve account pursuant to its
prior elective coverage agreement.
This section shall apply only to organizations which make the
elections described in this section within 120 days of the time they
are legally able to do so because of a change in federal law.
To the extent permitted by federal law, no contributions shall
be due from any nonprofit organization which first became
compulsorily subject to this part on January 1, 1978, by reason of
the enactment of the federal "Unemployment Compensation Amendments of
1976" (Public Law 94-566) and the amendment to Section 634.5 by the
1978 portion of the 1977-78 Regular Session, which elects a method of
financing under Section 803 when such election first becomes
available, but not later than April 1, 1978, and which also elects to
use contributions paid pursuant to an elective coverage agreement of
such nonprofit organization in effect prior to January 1, 1978,
until the cost of benefits paid and reimbursable by the nonprofit
organization together with the benefits charged and chargeable to the
reserve account of the nonprofit organization as the result of its
prior elective coverage agreement exceed the contributions made by
the nonprofit organization and credited to its reserve account
pursuant to its prior elective coverage agreement.