Section 801 Of Article 5. Elections For Financing Unemployment Insurance Coverage From California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 3. >> Article 5.
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.