Section 704 Of Article 4. Elective Coverage From California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 3. >> Article 4.
704
. The director shall not approve an election under Section 701,
702, 702.1, 702.5, 703, 708, or 708.5 if he or she finds that any of
the following conditions exist:
(a) The self-employed individual is currently unable to perform
his or her regular and customary work due to injury or illness.
(b) The employing unit or self-employed individual is not normally
and continuously engaged in a regular trade, business, or
occupation.
(c) The employing unit or self-employed individual intends to
discontinue the regular trade, business or occupation within eight
calendar quarters.
(d) The regular trade, business, or occupation of the employing
unit or self-employed individual is seasonal in its operations.
(e) The major portion of the self-employed individual's
remuneration is not derived from his or her trade, business, or
occupation.
(f) The self-employed individual is unable to provide a copy of
his or her Internal Revenue Service Schedule SE as reported on or
before April 15 of the preceding year showing a net profit of at
least four thousand six hundred dollars ($4,600) or to certify to an
average net profit of at least one thousand one hundred fifty dollars
($1,150) per quarter since becoming self-employed or for the
preceding four quarters, whichever period is less.
(g) The employing unit or self-employed individual has failed to
make a return or report, or to pay contributions within the time
required by this division and there is an unpaid amount of
contributions owing by the employing unit or self-employed
individual.
(h) (1) A prior elective coverage agreement entered into pursuant
to Section 708 or 708.5 has been terminated by the department under
Section 704.1 or by means of a written application for termination as
required by this division, and the individual has not completed a
waiting period of 18 consecutive months from the date of termination.
(2) The waiting period for reinstatement to the elective coverage
program may be waived for any individual who becomes eligible for
coverage after being terminated under paragraph (1), (2), (4), or (5)
of subdivision (a) of Section 704.1, upon receipt by the department
of an application for coverage to be effective the first day of the
quarter in which the application is received.
(i) The employing unit or any officer or agent of or person having
charge of the affairs of the employing unit, or the self-employed
individual has been convicted within the preceding eight consecutive
calendar quarters of any violation under Chapter 10 (commencing with
Section 2101). For the purposes of this subdivision, a plea or
verdict of guilty or a conviction following a plea of nolo contendere
is deemed to be a conviction irrespective of whether an order
granting probation or other order is made suspending the imposition
of the sentence or whether sentence is imposed but execution thereof
is suspended.
(j) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.