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821.  (a) Each school employer may, in lieu of the contributions
required of employers, elect 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 an employing unit 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.  The
provisions of this article shall apply to school employers who have
elected financing under this section.
   (b) 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 employing unit under subdivision (a).
  The cost of benefits charged to a school employer 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.
   (c) In making the payments prescribed by subdivision (a), 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 employing unit 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 that should have been paid to the fund.  These
estimates may be made upon the basis of a statistical sampling, or
other method as may be determined by the director.
   Upon making the determination, the director shall mail notice of
the determination, pursuant to Section 1206, to the employing unit.
   The director may cancel any contributions or portion thereof that
he or she finds have been erroneously determined.  The contributions
due from the employing units shall be paid, transferred, or credited
from the School Employees Fund established in the State Treasury by
Section 822 to the Unemployment Fund by the State Treasurer, State
Controller, or other officer or person responsible for disbursements
on behalf of the employing unit within 30 days of the date of mailing
of the director's notice of determination to the employing unit.
   Each employing unit shall send a copy of any and all notices,
billings, or correspondence not normally routed to the administrator
and the Superintendent of Public Instruction, regarding unemployment
insurance for the school employees, to the administrator, the
Superintendent of Public Instruction, and the county superintendent
of schools, or agent thereof, with timely documentation of charges or
determination.  Article 8 (commencing with Section 1126) of Chapter
4 with respect to the assessment of contributions, and Chapter 7
(commencing with Section 1701) with respect to the collection of
contributions, shall apply to the assessments provided by this
article.  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.
   (d) Notwithstanding any other provision of this section, no
employing unit 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.
   (e) To the extent permitted by federal law, including Section 121
(e) of Public Law 94-566, any school employer that elects a method of
financing under this article shall not be liable to reimburse the
cost of benefits paid to any individual whose base period wages
include wages for services performed prior to January 1, 1978, if the
benefits are reimbursable by the federal government under Section
121 of Public Law 94-566 and to the extent that the individual would
not have been eligible for the benefits had this state not provided
for benefits payable based on services performed prior to January 1,
1978.
   (f) The administrator and the Superintendent of Public Instruction
shall adopt rules and regulations for the administration of their
respective functions under this article in accordance with Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.  Regulations of the administrator shall be
subject to Article 1 (commencing with Section 301) of Chapter 2 of
Part 1 of Division 1.  Rules and regulations of the Superintendent of
Public Instruction shall not be subject to the provisions of Article
1 (commencing with Section 301) of Chapter 2 of Part 1 of Division
1.
   (g) Any election 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.  Thereafter, the election under this section may
be terminated as of January 1 of any calendar year only if the
school employer, 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.  School employers shall be prohibited from making a
subsequent reelection under this section for 10 years from the date
of termination of an election under this section.  An election for
financing coverage under this section is deemed to have been filed by
every school employer effective as of January 1, 1976, is deemed to
have been in effect for two calendar years prior to January 1, 1978,
and may be terminated as of January 1, 1978, or as of January 1,
1980, or any later January 1 pursuant to this section.  Upon the
termination of any election under this section, the school employer
shall be and remain liable for all benefits paid based upon wages
paid by the school employer during the period of an election under
this section.


821.3.  As used in this article, "administrator" means the Director
of Employment Development.



821.4.  As used in this article, "employing unit" and "school
employer" means the governing board of any school district or
community college district, any county board of education, any county
superintendent of schools, or any personnel commission of a school
district or community college district which has a merit system
pursuant to any provision of the Education Code, or any
instrumentality of the foregoing, or any instrumentality of more than
one of the foregoing, which employs one or more employees.



821.5.  The provisions of Article 3 (commencing with Section 1326)
of Chapter 5 of this part relating to filing, determination, and
payments of unemployment compensation benefit claims, and all other
provisions of this part not inconsistent with this article, shall
apply to all claims and matters arising under this article.




822.  There is hereby established in the State Treasury the "School
Employees Fund."  The School Employees Fund is the successor of the
"Classified School Employees Fund."  Moneys received pursuant to
Section 823, together with any charges, notices, fees, interest,
penalties, assessments, or other revenue, shall be deposited in this
fund.  All money in the fund is hereby appropriated to the
administrator without regard to fiscal year for carrying out the
purposes of this article, for administrative costs, for making
refunds, and for investment through the Surplus Money Investment
Fund, with any interest or earnings credited to the School Employees
Fund.  Funds to be used for administrative costs shall be budgeted
and expended in accordance with existing state law.



823.  (a) For the purpose of payment by each school employer of all
or part of the charges for unemployment compensation benefits, fees,
assessments, interest, penalties, billings, notices, and other
expenses of unemployment insurance for school employees pursuant to
this part, moneys budgeted pursuant to subdivisions (b) and (c) of
this section shall be remitted by the school employer or on the
school employer's behalf by the county auditor to the Treasurer
pursuant to this article, and shall be deposited in the School
Employees Fund.
   (b) (1) For each fiscal year, except as provided in subdivisions
(c) and (d), each school employer shall budget and remit on or before
the last day of the calendar month following the close of each
calendar quarter to the Treasurer for deposit in the School Employees
Fund in the State Treasury an amount determined by multiplying the
contribution rate for the fiscal year by the total wages, including
taxable wages as well as wages which would be taxable except for the
limitation on taxable wages provided under Section 930, but
excluding, to the extent permitted by federal law, wages paid to any
individual to the extent that federal law provides for reimbursement
to the State of California for all benefits paid from the
Unemployment Fund to the individual based on the wages.
   The administrator shall, not later than March 31 each year, notify
all school employers participating in the School Employees Fund of
the contribution rate for the succeeding fiscal year.
   (2) The contribution rate for the fiscal year beginning July 1,
1988, and for each subsequent fiscal year shall be two times the
amount disbursed for claims management fees, unemployment insurance
benefit charges, and School Employees Fund administrative
expenditures from the School Employees Fund during the 12-month
period ending December 31 and immediately preceding the fiscal year
for which the rate is to be effective, less the amount in the School
Employees Fund on that December 31, with the resulting figure divided
by total wages as described in paragraph (1) for the 12-month period
ending June 30 and immediately preceding that December 31, and then
rounded to the nearest one-hundredth of 1 percent.  In no event shall
the contribution rate be less than five one-hundredths of 1 percent.

   (c) If the administrator finds that the ability of the School
Employees Fund to meet its estimated obligations promptly when due
will become endangered, he or she shall increase the contribution
rate otherwise provided by this section to a level estimated to be
needed to protect the solvency of the fund,  except that the rate
shall not be increased to more than three-tenths of 1 percent.  If
the administrator finds that the School Employees Fund balance is in
excess of an adequate reserve to meet its estimated obligations
promptly when due, he or she shall, after consultation with the fund'
s School Advisory Committee, decrease the contribution rate otherwise
provided by this section, except that the rate shall not be
decreased to less than one-tenth of 1 percent.  The administrator
shall notify all school employers participating in the fund of any
increased or decreased contribution rate under this authority.



826.  The administrator of the School Employees Fund shall, based on
the total number of covered employees reflected on reports received
by March 31, 1978, and by November 30, 1978, and each year thereafter
by November 30, make a transfer from available interest earnings
pursuant to investments authorized by Section 822 to the
Superintendent of Public Instruction or Chancellor of the California
Community Colleges to support an Unemployment Insurance Management
System and appeals program as set forth in Section 1330 of the
Education Code. Such transfers shall be equal to two dollars ($2) per
covered employee, less administrative costs of the Superintendent of
Public Instruction and the Chancellor of the California Community
Colleges, and shall be made by April 30, 1978, and by December 31,
1978, and each year thereafter by December 31, to the Superintendent
of Public Instruction or Chancellor of the California Community
Colleges, as appropriate, and expended only for the purposes set
forth in Section 1330 of the Education Code.




827.  Whenever the unencumbered balance of interest deposited in or
earned by the School Employees Fund, after deducting administrative
expenses paid or encumbered, exceeds two million dollars ($2,000,000)
as of the close of each fiscal year, the unencumbered balance shall
be credited as of the close of that fiscal year to the account of
each school employer which has a positive balance in the fund, in the
proportion that each positive account balance bears to the total of
all positive account balances.



828.  Each school employer shall be responsible for a quarterly
local experience charge as set forth below, together with the charges
or penalties set by the administrator for administrative
indiscretions, including tardiness and error, as well as all costs
for benefits and administration resulting from failure to properly
cover an employee.  The reimbursement for charges shall be delinquent
30 days from the date of notice and if not paid within the time
required, the school employer shall pay a penalty of 10 percent of
the unpaid amount, plus interest at the adjusted annual rate
established pursuant to Section 19521 of the Revenue and Taxation
Code from and after the date of delinquency until paid. The local
experience charge to be levied against each school employer shall be
computed as follows:
      Local Experience Charge

   (a) The local experience charge rate shall be 10 percent for the
first three complete fiscal years of participation in the School
Employees Fund.
   (b) The local experience charge rate for the fourth fiscal year,
and each succeeding fiscal year, shall be determined by dividing the
reserve balance at the end of the fiscal year which began 24 months
prior to the fiscal year for which the rate is being calculated by
the benefits paid for that same prior fiscal year.
   The factor derived is the employer's reserve ratio. If, as of the
computation date, the school employer's reserve ratio equals or
exceeds that which appears on any line in column 1 of the following
table, but is less than that which appears in column 2 of that table,
the local experience charge rate shall be the figure appearing on
that same line in column 3 of that table.




       (Column 1)         (Column 2)      (Column 3)

Line                    Reserve Ratio       Rate

1.......negative  to        1.00            15%

2...........1.00  to        2.00            10%

3...........2.00  to        3.00             5%

4...........3.00  or        more             0%


   (c) The rate determined in subdivision (a) or (b) shall be
multiplied by the employer's quarterly benefit charges to compute the
local experience charges.
   The administrator shall, not later than March 31 of each year,
notify each school employer participating in the School Employees
Fund of their local experience charge rate for the succeeding fiscal
year.



829.  The total amount of the local experience charge computed for
each school employer pursuant to Section 828 shall be the amount that
the school employer, county superintendent of schools, or empowered
entity shall, on behalf of the employers under that jurisdiction,
reimburse the School Employees Fund in the State Treasury.  However,
this amount shall not exceed 1.7 percent of the actual annual wages
paid by a school employer in the immediately preceding calendar year
as indicated in the four quarterly reports to the department.



831.  There is hereby created a School Employer Advisory Committee
of five persons.  The committee shall consist of one person appointed
by each of the following:  the State Superintendent of Public
Instruction, Chancellor of the California Community Colleges,
Association of School Administrators, California School Business
Officials, and the California School Board Association.
   All such members shall serve at the pleasure of the appointing
power and their only compensation shall be per diem expenses for
attending meetings, which shall be a cost of administration of the
School Employees Fund.  The advisory committee shall select a
chairperson and meet at least semiannually with the administrator to
consider and recommend improvements concerning the administration of
this article.


832.  The administrator shall at least annually calculate, as of the
close of and for the immediately preceding fiscal year, the
experiences of school employers relative to usage of the Unemployment
Fund.  The calculations shall include tabulations on the experience
of each school employer in relation to the expenditures from and the
income to the School Employees Fund from the wages paid by the
employer.  All school employers shall be listed and ranked by ratio
of use.  The report shall contain comments and recommendations on
improvements to the administration, enforcement, and financing of the
provisions relative to this article.  The report by the
administrator on the above shall be made each year to the affected
school employer and governing board thereof prior to March 31.
   The administrator shall develop experience relationships on all
benefits paid to employees via the School Employees Fund and on
school employers' experience related to use and exposure.  Data shall
relate to numbers of employees and types of programs and shall be
calculated as of the close of and for the immediately preceding
fiscal year.  A report by the administrator on the above shall be
made each year to the Legislature prior to March 31 containing
comments and recommendations on improvement to administration,
enforcement and financing of the provisions relative thereto.

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901.  The definitions set forth in this article are applicable to
this chapter only.



902.  "Computation date" means the close of business on June 30th,
of each calendar year for the purpose of establishing contribution
rates for the next succeeding calendar year.



903.  "Rating period" means the full calendar year next succeeding
any computation date.



904.  "Net balance of reserve" means the excess, if any, of credits
required to be made to any employer's account over the charges
against that account as of any computation date.



905.  "Average base pay roll" means the quotient obtained by
dividing by three the total amount of taxable wages paid by an
employer during the most recent period of three consecutive calendar
years immediately preceding the computation date.




906.  "Contributions paid on his own behalf" means:
   (a) All contributions paid under this part to the Unemployment
Fund on behalf of an employer with respect to wages paid by him on or
before the computation date for any rating period, which have been
paid on or before the end of the calendar month next succeeding such
computation date.
   (b) Any additional amount of contributions paid under this part to
the Unemployment Fund on behalf of an employer with respect to wages
paid by him on or before the computation date for any rating period,
which have been assessed pursuant to Section 1036 and have been paid
before the delinquent date for the calendar quarter in which he is
given notice of the assessment pursuant to Section 1036.
   (c) Any additional contributions paid pursuant to Section 976.5.

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926.  Except as otherwise provided in this article "wages" means all
remuneration payable to an employee for personal services, whether
by private agreement or consent or by force of statute, including
commissions and bonuses, and the reasonable cash value of all
remuneration payable to an employee in any medium other than cash.




926.5.  "Wages" also means all remuneration payable for personal
services, as specified in Section 926, when the legal obligation for
the payment of such wages is assumed by an employer specified in
Section 678, and the first or prior employer for whom the personal
services were originally performed is relieved of the legal
obligation for the payment of such remuneration.



927.  "Wages" also means all tips which are received while
performing services which constitute employment and included in a
written statement furnished to the employer pursuant to Section 6053
(a) of the Internal Revenue Code.
   The changes in law made in this section by Chapter 1461 of the
Statutes of 1985 shall apply with respect to wages earned on and
after January 1, 1986, in conformity with the provisions of federal
law.



928.  Unless otherwise specifically provided, the definitions and
qualifications of deferred compensation plans shall be determined for
purposes of this part in accordance with Subchapter D (commencing
with Section 401) of Chapter 1 of Subtitle A of the Internal Revenue
Code.  When applying the Internal Revenue Code for the purposes of
this part, any reference to regulations of the Internal Revenue
Service shall not apply if the Employment Development Department has
adopted and issued regulations on this subject.  In the absence of
regulations issued by the Employment Development Department,
regulations issued under the Internal Revenue Code shall govern the
interpretation of this part.



928.5.  "Wages" also includes all of the following:
   (a) Any employer contributions under a qualified cash or deferred
arrangement, as defined by Section 401(k) of the Internal Revenue
Code, to the extent the amount is excluded from the gross income of
the employee under Section 402(e)(3) of the Internal Revenue Code.
   (b) Any amount treated as an employer contribution under a state
pickup plan as defined by Section 414(h)(2) of the Internal Revenue
Code, only if the payments are made pursuant to a salary reduction
arrangement.
   (c) Any amount deferred under a nonqualified deferred compensation
plan shall be taken into account, for purposes of this article, on
the later of the following:
   (1) When the services are performed.
   (2) When there is no substantial risk of forfeiture of the right
to the amount.
   (d) Any amount taken into account as "wages" by reason of
subdivision (c), and the income attributable thereto, shall be taxed
only once and shall not thereafter be treated as "wages" for purposes
of this article.
   (e) For the purposes of this section, the term "nonqualified
deferred compensation plan" means any plan or arrangement for
deferral of compensation other than a plan described under Section
934.


929.  "Wages" does not include the actual amount of any required or
necessary business expense incurred by an individual in connection
with his employment, or, in lieu of the actual amount of such
expenses, the reasonably estimated amount allowed therefor pursuant
to authorized regulations.



930.  "Wages" does not include remuneration in excess of seven
thousand dollars ($7,000) paid to an individual by an employer during
any calendar year, with respect to employment.



930.1.  For the purpose of determining whether an employer has paid
remuneration with respect to employment in excess of the limitation
prescribed by Section 930 to an individual during any calendar year,
the remuneration shall be deemed to include any remuneration paid to
the individual by the employer for services constituting employment
under the unemployment compensation law of another state which the
employer has reported to the other state as wages for contribution
purposes.  As used in this section, "remuneration" does not include
the remuneration of the type described in Sections 931, 931.5, 933,
934, 935, 936, 937, 938, 938.1, and 938.3 when paid by the employer
in another state.


930.5.  If an employer during any calendar year acquires
substantially all the property used in a trade or business of another
employer, or used in a separate unit of a trade or business of the
other employer, and immediately after the acquisition employs in his
or her trade or business an individual who immediately prior to the
acquisition was employed in the trade or business of the employer
from whom the property was acquired, then, for the purpose of
determining whether the acquiring employer has paid remuneration with
respect to employment in excess of the limitation prescribed by
Section 930, or the limitation prescribed by Section 985, to the
individual during the calendar year, any remuneration with respect to
employment paid to the individual by the employer from whom the
property was acquired during the calendar year and prior to the
acquisition shall be considered as having been paid by the acquiring
employer. As used in this section, "remuneration" does not include
the remuneration referred to in Sections 931, 931.5, 933, 934, 935,
936, 937, 938, 938.1, and 938.3.



931.  "Wages" does not include the amount of any payment, including
any amount paid by an employer for insurance or annuities, or into a
fund, to provide for any payment, made to or on behalf of an employee
or any of his or her dependents under a plan or system established
by an employer which makes provision for his or her employees
generally, or for his or her employees generally and their
dependents, or for a class or classes of his or her employees, or for
a class or classes of his or her employees and their dependents, on
account of any of the following:
   (a) Sickness or accident disability, but in the case of payments
made to an employee or any of his or her dependents, this subdivision
shall exclude from "wages" only those payments which are received
under a workers' compensation law.
   (b) Medical or hospitalization expenses in connection with
sickness or accident disability.
   (c) Death.



931.5.  (a) Except for Part 2 (commencing with Section 2601) of this
division and Division 6 (commencing with Section 13000), any third
party which makes a payment included in the term "wages" solely by
reason of subdivision (a) of Section 931 shall be the employer with
respect to those wages unless the third-party payer notifies the last
employer, who is a member of the plan and for whom the services were
performed, within 15 days of payment, and provides all of the
following information to that last employer:
   (1) The name and social security account number of the recipients
of the wages paid pursuant to subdivision (a) of Section 931.
   (2) The amount of gross wages paid pursuant to subdivision (a) of
Section 931.
   (b) The special rule prescribed by this subdivision applies to the
payment of sick pay made by a third-party payer, such as an insurer,
under a contract of insurance pursuant to a multiple employer plan
that is obligated to make payments for sick pay to employees of
participating employers.  If the third-party payer provides the plan
with the notification required by subdivision (a) within the time
required, the plan, not the third-party payer, shall be treated as
the employer under subdivision (a).  If within six business days
after receipt of the notification the plan similarly notifies the
last employer for whom the services are performed, and who is a plan
member, that employer, not the plan, shall be required to report and
pay the contributions due with respect to the wages.
   (c) The employer, as determined by subdivision (a) or (b), shall
pay contributions, required by this part, except as provided in
Sections 984 and 986, and shall comply with the requirements of
subdivision (a) of Section 1088.
   (d) When an employer receives the notification prescribed in
subdivision (a) or (b), the wages described therein shall be deemed
paid when the notice is received.
   (e) The director shall not make an assessment pursuant to Section
1126, 1127, or 1137 to assess employee contributions required by
Sections 984 and 13020 on third-party sick pay as described in
subdivision (a) for the period from January 1, 1987, through the date
on which this subdivision became effective.
   (f) Except as provided by Section 1176 and Section 19301 of the
Revenue and Taxation Code, no refunds may be made for employee
contributions required by Sections 984 and 13020 paid on third-party
sick pay as described in subdivision (a) for the period from January
1, 1987, through the date on which this subdivision became effective.




933.  "Wages" does not include any payment on account of sickness or
accident disability, or medical or hospitalization expenses in
connection with sickness or accident disability made by an employer
to, or on behalf of, an employee after the expiration of six calendar
months following the last calendar month in which the employee
worked for such employer.



934.  "Wages" does not include any payment made to, or on behalf of,
an employee or his or her beneficiary:
   (a) From or to a trust described in Section 401(a) of the Internal
Revenue Code which is exempt from tax under Section 501(a) of that
code at the time of the payment, unless the payment is made to an
employee of the trust as remuneration for services rendered as an
employee and not as a beneficiary of the trust.
   (b) Under or to an annuity plan which, at the time of the payment,
is a plan described in Section 403(a) of the Internal Revenue Code.

   (c) Under a simplified employee pension, as defined in Section 408
(k)(1) of the Internal Revenue Code, other than any contributions
described in Section 408(k)(6) of the Internal Revenue Code.
   (d) Under a simple retirement account, as described in Section 408
(p) of the Internal Revenue Code, other than any elective
contributions under Section 408(p)(2)(A)(i) of the Internal Revenue
Code.
   (e) Under or to an annuity contract described in Section 403(b) of
the Internal Revenue Code, other than a payment for the purchase of
the contract which is made by reason of a salary reduction agreement,
whether evidenced by a written instrument or otherwise.
   (f) Under or to an exempt governmental deferred compensation plan,
as defined in Section 3121(v)(3) of the Internal Revenue Code.
   (g) To supplement pension benefits under a plan or trust described
in any of the foregoing provisions of this section to take into
account some portion or all of the increase in the cost of living, as
determined by the Secretary of Labor, since retirement, but only if
the supplemental payments are under a plan which is treated as a
welfare plan under Section 3(2)(B)(ii) of the Employee Retirement
Income Security Act of 1974.



935.  "Wages" does not include the payment by an employer, without
deduction from the remuneration of the employee, of the tax imposed
upon an employee under Section 3101 of the Internal Revenue Code with
respect to remuneration paid to an employee for domestic service in
a private home of the employer or for agricultural labor, as defined
in subsection (g) of Section 3121 of the Internal Revenue Code.




936.  "Wages" does not include remuneration paid in any medium other
than cash to an employee for service not in the course of the
employer's trade or business, except that this section shall not
apply to remuneration paid for domestic service in a private home or
in a local college club or local chapter of a college fraternity or
sorority.



937.  "Wages" does not include the payment to, or on behalf of, an
employee for moving expenses, if at the time of the payment it is
reasonable to believe that a corresponding deduction from income is
allowable to the employee under Section 217 of the Internal Revenue
Code.



938.  (a) "Wages" does not include any payment or series of payments
by an employer to an employee or any of his or her dependents which
is paid:
   (1) Upon or after the termination of an employee's employment
relationship because of death or retirement for disability, and
   (2) Under a plan established by the employer which makes provision
for his or her employees generally or a class or classes of his or
her employees, or  for the employees or class or classes of employees
and their dependents.
   (b) This section shall not apply to any payment or series of
payments which would have been paid if the employee's employment
relationship had not been terminated as prescribed by this section.



938.1.  "Wages" does not include any contribution, payment, or
service provided by an employer which may be excluded from the gross
income of an employee, his or her spouse, or his or her dependents,
under the provisions of Section 120 of the Internal Revenue Code,
relating to amounts received under a qualified group legal services
plan.



938.3.  "Wages" does not include any payment made, or benefit
furnished to, or for the benefit of, an employee, for any of the
following:
   (a) An educational assistance program if, at the time of payment
or the furnishing, it is reasonable to believe that the employee will
be able to exclude the payment or benefit from income under Section
127 of the Internal Revenue Code.
   (b) A dependent care assistance program if, at the time of payment
or the furnishing, it is reasonable to believe that the employee
will be able to exclude the payment or benefit from income under
Section 129 of the Internal Revenue Code.
   (c) Any benefit provided to or on behalf of an employee if at the
time the benefit is provided it is reasonable to believe that the
employee will be able to exclude the benefit from income under
Section 74(c), 117, or 132 of the Internal Revenue Code.
   (d) Any benefit under a cafeteria plan, as described in Section
125 of the Internal Revenue Code, if the benefit is excludable from
wages pursuant to any other provision of this article, except Section
930.


938.5.  "Wages" does not include any payment received by a member of
the National Guard or reserve component of the armed forces for
inactive duty training, annual training, or emergency state active
duty.


938.7.  "Wages," does not include any payment made by an employer to
a survivor, or the estate of a former employee, after the calendar
year in which the employee died.



939.  Types of payments excluded from the definition of wages by
Sections 931, 931.5, 933, 934, 935, 936, 937, 938, 938.1, 938.3, and
938.7 shall be excluded from the definition of wages only during the
time that the respective type or types of payments set forth in those
sections are similarly excluded from the definition of wages
contained in the Federal Unemployment Tax Act.



940.  For the purposes of this section, of Sections 977 and 977.5 to
the extent specified by those sections, and of Sections 1026, 1088,
1280, 1281, 1282, 2652, 2654, 2655, and 2657, "wages" means taxable
wages as well as wages which would be taxable except for the
limitations on taxable wages provided under Sections 930 and 985.

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976.  Employer contributions to the Unemployment Fund shall accrue
and become payable by every employer, except an employer as defined
by Section 676, for each calendar year with respect to wages paid for
employment.  The contributions are due and shall be paid to the
department for the Unemployment Fund by each employer in accordance
with this division and shall not be deducted in whole or in part from
the wages of individuals in his employ.



976.5.  (a) Except as provided in subdivision (b), in addition to
other contributions required by this division, every employer, except
an employer to which subdivision (c) is applicable, may submit a
voluntary unemployment insurance contribution for the purpose of
redetermining its unemployment insurance contribution rate.  No
redetermination of a contribution rate shall be made unless the
voluntary contribution is submitted as required in subdivision (c) of
Section 1110.  No redetermination shall reduce an employer's
unemployment insurance contribution rate by more than three rates as
provided in Section 977.
   (b) This section shall not be operative in calendar years in which
Contribution Rate Schedules E and F in Section 977 are in effect, or
in calendar years to which the emergency solvency surcharge provided
in Section 977.5 is in effect.
   (c) This section does not apply to any of the following:
   (1) An employer not eligible for a contribution rate other than
that provided pursuant to Section 982 or subdivision (c) of Section
977.
   (2) An employer with a negative reserve account balance on the
computation date.
   (3) An employer who was notified prior to September 1 of any
unpaid amount owed to the department which is not the subject of a
timely petition for reassessment pending before the appeals board on
September 30 preceding the year to which a contribution rate is
applicable.


976.6.  In addition to other contributions required by this
division, every employer, except an employer defined by Section 676,
684, or 685, and except an employer that has elected an alternate
method of financing its liability for unemployment compensation
benefits pursuant to Article 5 (commencing with Section 801), or
Article 6 (commencing with Section 821) of Chapter 3, shall pay into
the Employment Training Fund contributions at the rate of 0.1 percent
of wages specified in Section 930.  The contributions shall be
collected in the same manner and at the same time as any
contributions required under Sections 977 and 977.5.



976.8.  (a) Section 976.6 does not apply to any employer who has a
negative reserve account balance on the computation date.
   (b) Subdivision (a) does not apply to an employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.




977.  (a) Except as provided in subdivision (c), if, as of the
computation date, the employer's net balance of reserve equals or
exceeds that percentage of his or her average base payroll which
appears on any line in column 1 of the following table, but is less
than that percentage of his or her average base payroll which appears
on the same line in column 2 of that table, his or her contribution
rate shall be the figure appearing on that same line in the
appropriate schedule, as defined in subdivision (b), which shall be a
percentage of the wages specified in Section 930.


       Reserve Ratio                  Contribution Rate
      Column   Column                     Schedules
Line     1       2       AA     A      B      C      D      E      F

01   less than -20     5.4    5.4    5.4    5.4    5.4    5.4    5.4

02      -20 to -18     5.2    5.3    5.4    5.4    5.4    5.4    5.4

03      -18 to -16     5.1    5.2    5.4    5.4    5.4    5.4    5.4

04      -16 to -14     5.0    5.1    5.3    5.4    5.4    5.4    5.4

05      -14 to -12     4.9    5.0    5.3    5.4    5.4    5.4    5.4

06      -12 to -11     4.8    4.9    5.2    5.4    5.4    5.4    5.4

07      -11 to -10     4.7    4.8    5.1    5.3    5.4    5.4    5.4

08      -10 to -09     4.6    4.7    5.1    5.3    5.4    5.4    5.4

09      -09 to -08     4.5    4.6    4.9    5.2    5.4    5.4    5.4

10      -08 to -07     4.4    4.5    4.8    5.1    5.3    5.4    5.4

11      -07 to -06     4.3    4.4    4.7    5.0    5.3    5.4    5.4

12      -06 to -05     4.2    4.3    4.6    4.9    5.2    5.4    5.4

13      -05 to -04     4.1    4.2    4.5    4.8    5.1    5.3    5.4

14      -04 to -03     4.0    4.1    4.4    4.7    5.0    5.3    5.4

15      -03 to -02     3.9    4.0    4.3    4.6    4.9    5.2    5.4

16      -02 to -01     3.8    3.9    4.2    4.5    4.8    5.1    5.4

17      -01 to  00     3.7    3.8    4.1    4.4    4.7    5.0    5.4

18       00 to  01     3.4    3.6    3.9    4.2    4.5    4.8    5.1

19       01 to  02     3.2    3.4    3.7    4.0    4.3    4.6    4.9

20       02 to  03     3.0    3.2    3.5    3.8    4.1    4.4    4.7

21       03 to  04     2.8    3.0    3.3    3.6    3.9    4.2    4.5

22       04 to  05     2.6    2.8    3.1    3.4    3.7    4.0    4.3

23       05 to  06     2.4    2.6    2.9    3.2    3.5    3.8    4.1

24       06 to  07     2.2    2.4    2.7    3.0    3.3    3.6    3.9

25       07 to  08     2.0    2.2    2.5    2.8    3.1    3.4    3.7

26       08 to  09     1.8    2.0    2.3    2.6    2.9    3.2    3.5

27       09 to  10     1.6    1.8    2.1    2.4    2.7    3.0    3.3

28       10 to  11     1.4    1.6    1.9    2.2    2.5    2.8    3.1

29       11 to  12     1.2    1.4    1.7    2.0    2.3    2.6    2.9

30       12 to  13     1.0    1.2    1.5    1.8    2.1    2.4    2.7

31       13 to  14     0.8    1.0    1.3    1.6    1.9    2.2    2.5

32       14 to  15     0.7    0.9    1.1    1.4    1.7    2.0    2.3

33       15 to  16     0.6    0.8    1.0    1.2    1.5    1.8    2.1

34       16 to  17     0.5    0.7    0.9    1.1    1.3    1.6    1.9

35       17 to  18     0.4    0.6    0.8    1.0    1.2    1.4    1.7

36       18 to  19     0.3    0.5    0.7    0.9    1.1    1.3    1.5

37       19 to  20     0.2    0.4    0.6    0.8    1.0    1.2    1.4

38       20 or more    0.1    0.3    0.5    0.7    0.9    1.1    1.3


   (b) (1) Whenever the balance in the Unemployment Fund on September
30 of any calendar year is greater than 1.8 percent of the wages (as
defined by Section 940) in employment subject to this part paid
during the 12-month period ending upon the computation date,
employers shall pay into the Unemployment Fund contributions for the
succeeding calendar year upon all wages with respect to employment at
the rates specified in Schedule AA.
   (2) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.8 percent and greater
than 1.6 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule A.
   (3) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.6 percent and greater
than 1.4 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule B.
   (4) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.4 percent and greater
than 1.2 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule C.
   (5) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.2 percent and greater
than 1.0 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule D.
   (6) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.0 percent and greater
than or equal to 0.8 percent of the wages (as defined by Section
940) in employment subject to this part paid during the 12-month
period ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year
upon all wages with respect to employment at the rates specified in
Schedule E.
   (7) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is less than 0.8 percent and greater than or
equal to 0.6 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule F.
   (c) For each rating period beginning on or after January 1, 2005,
in which an employer obtains or attempts to obtain a more favorable
rate of contributions under this section due to deliberate ignorance,
reckless disregard, fraud, intent to evade, misrepresentation, or
willful nondisclosure, the director shall assign the maximum
contribution rate plus 2 percent for each applicable rating period,
the current rating period, and the subsequent rating period.



977.5.  Whenever the balance in the Unemployment Fund on September
30 of any calendar year is less than 0.6 percent of the wages (as
defined by Section 940) in employment, subject to this part, paid
during the 12-month period ending on the computation date, employers
shall pay into the Unemployment Fund contributions for the succeeding
calendar year upon all wages with respect to employment at an
emergency solvency surcharge rate.  The emergency solvency surcharge
rate shall be 1.15 times the rate the employer would have paid in
Schedule F of subdivision (a) of Section 977, rounded to the nearest
one-tenth of 1 percent.


979.  On or before January 10 of each calendar year, the director
shall prepare a statement based on records of the department
declaring which of the employer tax schedules contained in Section
977 shall be in effect for that calendar year and whether the
emergency solvency surcharge pursuant to Section 977.5 shall be
added.  The statement shall be a public record and shall be final and
binding for that calendar year.  The statement shall include the
official tabulation of wages in subject employment made by the
department for the purpose of Sections 977 and 977.5, a summary of
the data upon which that tabulation was based, and the sources from
which those data were obtained, and shall further include a summary
of the data upon which the computation of the balance in the
Unemployment Fund was based, and their source.  The director's action
under Sections 977, 977.5, and this section shall not constitute an
authorized regulation.


980.  (a) In determining the balance in the Unemployment Fund for
the purpose of Sections 977 and 977.5, there shall be excluded all of
the following:
   (1) Any amount credited to this state's account in the
Unemployment Trust Fund pursuant to Section 903 of the federal Social
Security Act, as amended, which has been appropriated for expenses
of administration other than for capital assets, whether or not that
amount has been withdrawn from that fund.
   (2) Any unexpended advance from the federal unemployment account
in the Unemployment Trust Fund received in accordance with Section
323 of this division and Title XII of the federal Social Security
Act, as amended.
   (3) Any amount paid in advance into the Unemployment Fund by an
employer under any type of coverage pursuant to which reimbursement
of benefits is permitted or required in lieu of the contributions
required of employers.
   (4) Any amount paid in advance into the Unemployment Fund by the
federal government under any federal law that requires or permits
this state to pay benefits from the Unemployment Fund and provides
for advances by the federal government for reimbursement of all or
part of those benefits.
   (b) In determining the balance in the Unemployment Fund for the
purpose of Sections 977 and 977.5, there shall also be excluded any
estimated or other contributions not legally due and payable with
respect to the final calendar quarter of the calendar year, except
any payment of contributions made under Sections 976.5 and 1137 and
except any payment of contributions by employers terminating business
during any calendar quarter.



980.5.  In determining the balance in the Unemployment Fund for the
purpose of Sections 977 and 977.5, there shall be included both of
the following:
   (a) The unreimbursed balance of all benefits paid from the
Unemployment Fund to claimants when those benefits are based upon
wages in employment under any type of coverage pursuant to which
reimbursement of benefits is permitted or required in lieu of the
contributions required of employers, whether or not the director has
certified the benefits to the employer as due or payable.
   (b) The unreimbursed balance of all benefits paid from the
Unemployment Fund to claimants when, and to the extent that, the
benefits are subject to reimbursement by the federal government under
any federal law that requires or permits this state to pay benefits
from the Unemployment Fund and provides for reimbursement by the
federal government of all or part of those benefits.



981.  In determining wages in employment, for the purpose of
Sections 977 and 977.5, there shall be excluded all wages paid in
employment under any type of coverage pursuant to which reimbursement
of benefits is permitted or required in lieu of the contributions
required of employers.



982.  (a) Except as provided in subdivision (b), no employer shall
be eligible for a contribution rate of more or less than 3.4 percent
for any rating period unless his or her reserve account has been
subject to benefit charges during the period of 12 complete
consecutive calendar quarters ending on the computation date for that
rating period and he or she is qualified under Sections 977 and
977.5.
   (b) No new employer shall be eligible for a contribution rate of
more or less than 3.4 percent unless his or her reserve account has
been subject to benefit charges during the period of 12 complete
consecutive calendar months ending on the computation date and the
new employer is qualified under Sections 977 and 977.5.
   (c) For the purposes of this section "new employer" means any of
the following:
   (1) An employer who first qualifies as an employer after the 1969
calendar year, and whose account is continuously subject to benefit
charges from the date of first chargeability, except that a successor
employer under Section 1051 is not a new employer if the successor
applies for or obtains the transfer of the reserve account or part
thereof of a predecessor who is not a new employer.
   (2) An employer whose entire reserve account has been transferred
to a successor under Article 5 (commencing with Section 1051) of
Chapter 4 of this part.
   (3) An employer whose reserve account has been canceled pursuant
to Section 1029.
   (d) Section 905 applies to a new employer, except that for the
purposes of this section "average base payroll" means:
   (1) The payroll in the calendar year immediately preceding the
computation date for a new employer with a payroll only in that
calendar year.
   (2) The quotient obtained by dividing by two the total amount of
taxable wages paid by a new employer during the most recent period of
two consecutive calendar years immediately preceding the computation
date, for a new employer with a payroll only in each of, or only in
the first of, the two consecutive calendar years.
   (e) The contribution rate of an employer, for any period prior to
January 1, 1988, shall not be changed, other than by the provisions
of Sections 977 and 977.5, when the director makes a determination,
pursuant to Section 135.1 or 135.2, because of arrangements entered
into or business activities conducted between January 1, 1984, and
January 1, 1986.
   (f) This section does not apply to an employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.



984.  (a) (1) Each worker shall pay worker contributions at the rate
determined by the director pursuant to this section with respect to
wages, as defined by Sections 926, 927, and 985.  On or before
October 31 of each calendar year, the director shall prepare a
statement, which shall be a public record, declaring the rate of
worker contributions for the calendar year and shall notify promptly
all employers of employees covered for disability insurance of the
rate.
   (2) (A) Except as provided in paragraph (3), the rate of worker
contributions for calendar year 1987 and for each subsequent calendar
year shall be 1.45 times the amount disbursed from the Disability
Fund during the 12-month period ending September 30 and immediately
preceding the calendar year for which the rate is to be effective,
less the amount in the Disability Fund on that September 30, with the
resulting figure divided by total wages paid pursuant to Sections
926, 927, and 985 during the same 12-month period, and then rounded
to the nearest one-tenth of 1 percent.
   (B) The director shall increase the rate of worker contributions
by .08 percent for the 2004 and 2005 calendar years to cover the
initial cost of family temporary disability insurance benefits
provided in Chapter 7 (commencing with Section 3300) of Part 2.
   (3) The rate of worker contributions shall not exceed 1.5 percent
or be less than 0.1 percent.  The rate of worker contributions shall
not decrease from the rate in the previous year by more than
two-tenths of 1 percent.
   (b) Worker contributions required under Sections 708 and 708.5
shall be at a rate determined by the director to reimburse the
Disability Fund for unemployment compensation disability benefits
paid and estimated to be paid to all employers and self-employed
individuals covered by those sections.  On or before November 30th of
each calendar year, the director shall prepare a statement, which
shall be a public record, declaring the rate of contributions for the
succeeding calendar year for all employers and self-employed
individuals covered under Sections 708 and 708.5 and shall notify
promptly the employers and self-employed individuals of the rate.
The rate shall be determined by dividing the estimated benefits and
administrative costs paid in the prior year by the product of the
annual remuneration deemed to have been received under Sections 708
and 708.5 and the estimated number of persons who were covered at any
time in the prior year.  The resulting rate shall be rounded to the
next higher one-hundredth percentage point.  The rate may also be
reduced or increased by a factor estimated to maintain as nearly as
practicable a cumulative zero balance in the funds contributed
pursuant to Sections 708 and 708.5.  Estimates made pursuant to this
subdivision may be made on the basis of statistical sampling, or
another method determined by the director.
   (c) The director's action in determining a rate under this section
shall not constitute an authorized regulation.
   (d) (1) Notwithstanding subdivision (a), and except as provided in
paragraph (2), the director may, at his or her discretion, increase
or decrease, by not to exceed 0.1 percent, the rate of worker
contributions determined pursuant to subdivision (a), up to a maximum
worker contribution rate of 1.5 percent, if he or she determines the
adjustment is necessary to reimburse the Disability Fund for
disability benefits paid or estimated to be paid to individuals
covered by this section or to prevent the accumulation of funds in
excess of those needed to maintain an adequate fund balance.
   (2) Notwithstanding paragraph (1), for the 2004, 2005, and 2006
calendar years, the director may not decrease the rate of worker
contributions, regardless of whether the director determines that a
decrease is necessary to prevent the accumulation of funds in excess
of those needed to maintain the adequacy of the Disability Fund
during program implementation.


984.5.  (a) Effective January 1, 1994, the director shall prepare a
statement on or before November 30 of each calendar year, which shall
be a public record, declaring the rate of contributions of the
succeeding calendar year for all employers and self-employed
individuals covered under Section 708 or 708.5 and shall notify
promptly the employers and self-employed individuals of the rate.
For calendar years 1994 to 1996, inclusive, worker contributions
required under Section 708 or 708.5 shall be at a rate determined by
the director to reimburse the Disability Fund for the sum of
estimated administrative costs due to those sections and unemployment
compensation disability benefits estimated to be paid to all
employers and self-employed individuals covered by those sections.
The rate shall be determined by dividing the sum of the benefits
expected to be paid in the following calendar year and the
administrative costs expected to be incurred under Section 708 or
708.5 during that calendar year by earnings estimated to be reported
under those sections for that same calendar year.  The resulting rate
shall be rounded to the next higher one-hundredth percentage point.
This rate may also be reduced or increased by a factor estimated to
maintain as nearly as practicable a cumulative zero balance in funds
contributed pursuant to Section 708 or 708.5.
   For calendar year 1997, and each calendar year thereafter, the
rate established each November 30 shall be determined by multiplying
the current year's rate by the ratio of 1.10 times the current year
disbursements divided by contributions for the same period, under
Sections 708 and 708.5.  If in any calendar year the cumulative
balance of contributions minus disbursements equals or exceeds 20
percent of annual disbursements, the contribution rate for the
succeeding year shall be adjusted to a level necessary to maintain
revenues at no more than 20 percent over annual disbursements.  If
legislation is enacted necessitating adjustments in the benefit
levels for employers and self-employed individuals covered under
Section 708 or 708.5, the rate may be adjusted by a factor estimated
to provide that funds contributed pursuant to Section 708 or 708.5
cover disbursements pursuant to these sections.
   For the purpose of this subdivision, disbursements are defined as
the sum of unemployment compensation disability benefits paid to
employers and self-employed individuals covered under Section 708 or
708.5, plus administrative costs related to those sections.
Estimates made pursuant to this subdivision shall be available for
public inspection.
   (b)  The director's action in determining a rate under this
section shall not constitute an authorized regulation.



985.  Section 984 shall not apply to that part of the remuneration
which, after remuneration with respect to employment equal to four
times the maximum weekly benefit for each calendar year specified in
Section 2655 multiplied by 13 and divided by 55 percent has been paid
to an individual by an employer, is paid to the individual by the
employer.



986.  (a) Notwithstanding any provision of law in this state to the
contrary, each employer shall:
   (1) Except as provided in subdivision (a)(2) of this section,
withhold in trust the amount of his workers' contributions from their
wages at the time the wages are paid, shall show the deduction on
his payroll records, and shall furnish each worker with a statement
in writing showing the amount which has been deducted, in such form
and at such times as may be prescribed.
   (2) Hold in trust the amount of his workers' contributions, at the
time their wages are paid, where he undertakes or agrees to pay
without deduction from the wages of his workers the amount of worker
contributions required of his workers under this division.
   (b) Each employer shall transmit all such contributions withheld
or held in trust to the department for the Disability Fund, in
addition to his own contributions for the Unemployment Fund, pursuant
to authorized regulations.



987.  Each employer shall be liable for any and all contributions
required to be made by his workers on account of wages which he has
paid to them regardless of whether or not he has deducted the
contributions from the workers' wages at the time they were paid, but
no employer shall be liable for worker contributions required on
behalf of himself or of any of his employees with respect to wages
paid while there is in effect at the time the wages were paid a rule
or regulation or interpretation of the director or of the department
that such wages were not subject to such contributions.



987.7.  (a) If the worker contributions required in any one month to
be made because of the receipt of cash tips and cash gratuities
exceed the wages of the worker under the control of the employer, the
worker may furnish the employer, on or before the 10th day of the
following month, or, if the amounts are estimated, on or before the
last day of the month following the calendar quarter, an amount equal
to the excess.
   (b) If the worker contributions required by Section 984 with
respect to cash tips and cash gratuities exceed the amount of worker
contributions that can be collected by the employer from the wages of
the worker, the excess shall be paid by the worker, except as
provided by Section 1088.6.  The worker shall pay the excess to the
department within 30 days from his or her receipt of the written
statement furnished by his or her employer pursuant to Section
1088.6.  If the worker fails to pay the excess within the time
required by this subdivision, the director may make an assessment for
the excess and shall give the worker a written notice of the
assessment.  Article 8 (commencing with Section 1126) with respect to
the assessment of contributions and Chapter 7 (commencing with
Section 1701) with respect to the collection of contributions shall
apply to the recovery of amounts under this subdivision.
   (c) The director may offset amounts assessed pursuant to
subdivision (b) against any refund payable to the worker under
Section 1176.5 or against any amount of disability benefits to which
he or she may become entitled under Part 2 (commencing with Section
2601) within any of the following periods:
   (1) The current disability benefit period.
   (2) One year from the beginning date of any disability benefit
period that begins during the three-year period next succeeding the
service of notice of the assessment.



988.  In case of the insolvency or bankruptcy of an employer,
contributions by workers, payable as provided in this article, shall
not be considered any part of the employer's assets and shall be paid
to the director prior to the payment of any other claim against the
employer.



989.  The annual tax rate or contribution rate which under this
division is determined to apply to any particular employee or any
particular employer, or group of employees or group of employers,
shall be made public and available for public inspection but in no
case shall the amount of tax paid by any employee or employer, or
group of employees or group of employers, be disclosed to the public.



990.  In the payment of any contributions, a fractional part of a
cent shall be disregarded unless it amounts to one-half cent ($0.005)
or more, in which case it shall be increased to one cent ($0.01).



991.  (a) Any contributions paid to the Unemployment Fund or
Disability Fund either with respect to wages on which contributions
previously have been paid in error and without negligence on the part
of the employing unit to another state having an unemployment
compensation law, or with respect to wages on which contributions
computed under the Federal Unemployment Tax Act previously have been
paid in error and without negligence on the part of the employing
unit to an agency of the federal government, shall be deemed for the
purposes of this division to have been paid to the department at the
time of the erroneous payment to the other state or to the federal
agency, if payment is made to the department by the employing unit
within 30 days after the employing unit is given notice pursuant to
Section 1206 by the director of the determination that payment shall
be made to the department.  The 30-day period for payment may be
extended by the director for good cause for a period not to exceed an
additional 90 days.
   (b) Any contributions paid to the Unemployment Fund or Disability
Fund with respect to wages on which contributions computed under this
division previously have been paid in error and without negligence
on the part of the employing unit to an admitted disability insurer,
to trustees administering a voluntary plan for the employing unit, to
a self-insured plan of the employing unit, to another agency of this
state, or to an agency of the federal government shall be deemed,
solely to the extent of the amount of contributions previously paid
in error and without negligence, for the purposes of this division to
have been paid to the department at the time of the erroneous
payment to the admitted disability insurer, to trustees administering
a voluntary plan for the employing unit, to a self-insured plan of
the employing unit, to another agency of this state, or to the
federal agency, if payment is made to the department by the employing
unit within 30 days after the employing unit is given notice
pursuant to Section 1206 by the director of the determination that
payment shall be made to the department.  The 30-day period for
payment may be extended by the director for good cause for a period
not to exceed an additional 90 days.  As used in this subdivision
"paid" includes credits made to a self-insured plan of the employing
unit.  With respect to payments by an employing unit to an admitted
disability insurer, to trustees administering a voluntary plan for
the employing unit, or to a self-insured plan of the employing unit,
this subdivision shall apply only if one or more of the following
conditions are met:
   (1) At the time of payment the employing unit has or prior to the
time of payment had an approved voluntary plan with the recipient of
the payment.
   (2) Prior to the time of payment the employing unit had applied to
the department for a voluntary plan which was subsequently approved
by the department.
   (3) At the time of payment the employing unit is a subsidiary or
affiliate of an employing unit having an approved voluntary plan.
   (4) At the time of payment the employing unit believed that a
voluntary plan had been acquired pursuant to Section 3254.5.
   (c) If payment is not made within the 30-day period or within the
period for which an extension is granted, this section shall not
apply and Article 7 (commencing with Section 1110), Article 8
(commencing with Section 1126), and Chapter 7 (commencing with
Section 1701), with respect to the payment of reported contributions,
and the assessment and collection of contributions shall apply.
   (d) If the director finds that the collection of any contributions
will be jeopardized by delay this section shall not apply and the
director may make a jeopardy assessment and collect the contributions
pursuant to Article 8 (commencing with Section 1126), and Chapter 7
(commencing with Section 1701).



992.  During such time as the Federal Unemployment Tax Act is
amended so that employers are allowed, against the tax imposed by
Section 3301 of that act, credits amounting to 100 percent of such
tax on account of contributions paid under this division, then the
additional amount of contributions provided for by Section 993 shall
be required to be paid into the Unemployment Fund.



993.  Every employer who is subject to the tax provided for by
Section 3301 of the Federal Unemployment Tax Act, shall, subject to
Section 992, pay into the Unemployment Fund in addition to the
amounts required by other provisions of this division an amount equal
to five-tenths of 1 percent, or such other percentage as applies for
a calendar year pursuant to Section 6157 of the Internal Revenue
Code of 1954, of all wages paid by him or her in employment and
included in the measure of the contributions allowed as the credit
against the tax imposed by Section 3301 of the Federal Unemployment
Tax Act.


994.  Sections 992 and 993 shall not become operative unless the
Secretary of Labor certifies that they are in conformity with the
provisions of Title III of the Social Security Act and Sections 3302,
3303, and 3304 of the Federal Unemployment Tax Act.




995.  The department shall submit to the Legislature in May and
October of each year a report on the status of the Unemployment Fund
and the Unemployment Compensation Disability Fund.  Each report shall
include both actual and forecasted information on the fund balances,
receipts, disbursements, claim data, tax rates, and employment
levels.

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1025.  The director shall keep separate records of the amounts paid
into the fund by each employer in his or her own behalf, or
chargeable to him or her as benefits; but nothing in this division
shall be construed to grant any employer or his or her employees
prior claims or rights to the amount contributed by him or her to the
fund, either on his or her own account or on behalf of his or her
employees. The amount of employer contributions, advances, or
reimbursements under Article 5 (commencing with Section 801) of
Chapter 3 of this part or Section 821, and all other amounts payable
to the fund, shall be pooled and available to pay unemployment
compensation benefits to any employee entitled thereto, regardless of
the source of contributions or any other amounts.



1026.  (a) The director shall maintain a separate reserve account
for each employer, and shall credit each reserve account with all the
contributions paid on his or her behalf.
   (b) Unemployment compensation benefits paid to an unemployed
individual during any benefit year shall be charged against the
reserve account of his or her employer during his or her base period.
  If the individual performed services in employment for more than
one employer during his or her base period, unemployment compensation
benefits paid to him or her shall be charged against the respective
reserve accounts of the employers in the proportion that the total
wages paid to the individual in employment for each employer bears to
the total wages paid to the individual in employment for all
employers during the base period.
   (c) The director shall credit the interest earned by the
Unemployment Fund to each positive reserve employer account in
proportion to the amount the account bears to the total of all
positive reserve accounts.
   (d) Except as provided by Sections 803 and 821, in proportion to
the amount each employer's taxable wages bears to the total of all
employers' taxable wages, the director shall credit to each employer
reserve account all of the following:
   (1) Benefit overpayments collected in the four quarters prior to
the computation date.
   (2) Positive balances in reserve accounts canceled pursuant to
Section 1029.
   (3) Other nontax income.
   (e) Except as provided by Sections 803 and 821, in the same
proportion as provided in subdivision (d), the director shall charge
to each employer reserve account all of the following:
   (1) The increase in the total of all negative reserve account
balances as computed by subtracting the total of all negative reserve
account balances on July 31 of each year prior to the cancellations
required by Section 1027.5 from the total of all negative reserve
account balances on the prior July 31 after the cancellations
required by Section 1027.5, except as provided by Section 1144.
   (2) Benefit overpayments established in the four quarters prior to
the computation date.
   (3) Benefits not charged to employer reserve accounts pursuant to
Section 1032, 1032.5, 1034, 1035, 1036, 1335, 1338, or 1380.
   (4) Other items of expense and benefit charges not included in
active employer reserve accounts.


1027.1.  On the computation date in 1966, the portion of each
negative reserve balance which has not previously been charged to the
balancing account shall be transferred to that account and the
employer's reserve account thereupon canceled.  The computation on
such date for calendar year 1967 shall be based upon the status of
the employer's account prior to such transfer and cancellation
subject to the requirements of Section 982.  The computation for each
calendar year beginning with calendar year 1968 shall be in
accordance with the requirements of Section 982 and an employer whose
reserve account has been canceled under this section shall be
considered as first becoming a subject employer on July 1, 1966.



1027.5.  On the computation date each year, the amount each employer'
s net balance of reserve is more negative than 21 percent of the
employer's average base payroll shall be canceled from his or her
reserve balance.
   The amendment made to this section by Chapter 1296 of the Statutes
of 1984 shall be deemed to have become operative on June 30, 1984,
and the amendment shall be given retroactive effect to that date.




1027.6.  On the computation date of June 30, 1983, the amount each
employer's net balance of reserve was more negative than 12 percent
of the employer's average base payroll shall be canceled from his or
her reserve balance.


1028.  The charge of unemployment compensation benefits to an
employer's account required by Section 1026 shall be made in such
manner as to include as of each computation date all unemployment
compensation benefit payments made on or before the computation date.
  In computing the charge to employers' accounts, a fractional part
of a dollar shall be disregarded unless it amounts to one-half dollar
($0.50) or more, in which case it shall be increased to one dollar
($1).


1029.  (a) Whenever an employer ceases to pay wages in employment,
the reserve account of the employer, unless it has been transferred
under Article 5 (commencing with Section 1051), shall be canceled on
the records of the department after a period of three consecutive
years has elapsed following the latest calendar quarter in which the
employer paid wages in employment.
   (b) Whenever a period of three consecutive years has elapsed,
commencing with the effective date of an election by any entity to
finance benefits pursuant to Section 803, any portion of the reserve
account of the entity that has not been subject to use pursuant to
Section 712 or 713, unless that portion has been reacquired by the
entity by termination of the election under Section 803 prior to the
expiration of the three-year period, shall be canceled on the records
of the department.  Section 982 shall apply to that entity.
   (c) Upon the termination of an election by a school employer to
finance benefits pursuant to Article 6 (commencing with Section 821)
of Chapter 3, any favorable balance in the account of the school
employer under the election shall be canceled on the records of the
department.


1030.  (a) Any employer who is entitled under Section 1327 to
receive notice of the filing of a new or additional claim may, within
10 days after mailing of the notice, submit to the department any
facts within its possession disclosing whether the claimant left the
employer's employ voluntarily and without good cause or left under
one of the following circumstances:
   (1) The claimant was discharged from the employment for misconduct
connected with his or her work.
   (2) The claimant's discharge or quitting from his or her most
recent employer was the result of an irresistible compulsion to use
or consume intoxicants including alcoholic beverages.
   (3) The claimant was a student employed on a temporary basis and
whose employment began within, and ended with his or her leaving to
return to school at the close of, his or her vacation period.
   (4) The claimant left the employer's employ to accompany his or
her spouse or domestic partner to or join her or him at a place from
which it is impractical to commute to the employment, to which a
transfer of the claimant by the employer is not available.
   (5) The claimant left the employer's employ to protect his or her
children or himself or herself from domestic violence abuse.
   The period during which the employer may submit these facts may be
extended by the director for good cause.
   (b) Any base period employer that is not entitled under Section
1327 to receive notice of the filing of a new or additional claim and
is entitled under Section 1329 to receive notice of computation may,
within 15 days after mailing of the notice of computation, submit to
the department any facts within its possession disclosing whether
the claimant left the employer's employ voluntarily and without good
cause or left under one of the following circumstances:
   (1) The claimant was discharged from the employment for misconduct
connected with his or her work.
   (2) The claimant was a student employed on a temporary basis and
whose employment began within, and ended with his or her leaving to
return to school at the close of, his or her vacation period.
   (3) The claimant left the employer's employ to accompany his or
her spouse or domestic partner to or join her or him at a place from
which it is impractical to commute to the employment, to which a
transfer of the claimant by the employer is not available.
   (4) The claimant left the employer's employ to protect his or her
children or himself or herself from domestic violence abuse.
   The period during which the employer may submit these facts may be
extended by the director for good cause.
   (c) The department shall consider these facts together with any
information in its possession.  If the employer is entitled to a
ruling under subdivision (b) or to a determination under Section
1328, the department shall promptly notify the employer of its ruling
as to the cause of the termination of the claimant's employment.
The employer may appeal from a ruling or reconsidered ruling to an
administrative law judge within 20 days after mailing or personal
service of notice of the ruling or reconsidered ruling.  The 20-day
period may be extended for good cause, which includes, but is not
limited to, mistake, inadvertence, surprise, or excusable neglect.
The director is an interested party to any appeal.  The department
may for good cause reconsider any ruling or reconsidered ruling
within either five days after the date an appeal to an administrative
law judge is filed or, if no appeal is filed, within 20 days after
mailing or personal service of notice of the ruling or reconsidered
ruling.  However, a ruling or reconsidered ruling that relates to a
determination that is reconsidered pursuant to subdivision (a) of
Section 1332 may also be reconsidered by the department within the
time provided for reconsideration of that determination.
   (d) For purposes of this section only, if the claimant voluntarily
leaves the employer's employ without notification to the employer of
the reasons for the leaving, and if the employer submits all of the
facts within its possession concerning the leaving within the
applicable time period referred to in this section, the leaving is
presumed to be without good cause.
   (e) An individual whose employment is terminated under the
compulsory retirement provisions of a collective bargaining agreement
to which the employer is a party shall not be deemed to have
voluntarily left his or her employment without good cause.



1030.1.  (a) If the employment of an individual is terminated due to
his absence from work for a period in excess of 24 hours because of
his incarceration and he is convicted of the offense for which he was
incarcerated or of any lesser included offense, he shall be deemed
to have left his work voluntarily without good cause for the purposes
of Sections 1030, 3701, and 4701.  A plea or verdict of guilty
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, or a conviction
following a plea of nolo contendere, is deemed to be a conviction
within the meaning of this section.
   (b) Notwithstanding any other provision of this division, any
ruling made prior to a conviction or other final disposition of the
criminal complaint or accusation by the court as to whether an
individual who is terminated due to his absence from work because of
incarceration voluntarily leaves without good cause may, if no appeal
has been taken from the ruling, for good cause be reconsidered by
the department during the benefit year or extended duration period or
extended benefit period to which the ruling relates.  Notice of any
reconsidered ruling shall be given to the employer which received
notice under Section 1030 or 3701 or 4701, and the employer may
appeal therefrom in the manner prescribed in Section 1328 or 3655 or
4655.



1031.  No ruling made under Section 1030 may constitute a basis for
the disqualification of any claimant but a determination by the
department made under the provisions of Section 1328 may constitute a
ruling under Section 1030.


1032.  If it is ruled under Section 1030 or 1328 that the claimant
left the employer's employ voluntarily and without good cause, or
left under one of the following circumstances, benefits paid to the
claimant subsequent to the termination of employment that are based
upon wages earned from the employer prior to the date of the
termination of employment shall not be charged to the account of the
employer, except as provided by Section 1026, unless the employer
failed to furnish the information specified in Section 1030 within
the time limit prescribed in that section or unless that ruling is
reversed by a reconsidered ruling:
   (a) The claimant was discharged by reason of misconduct connected
with his or her work.
   (b) The claimant was a student employed on a temporary basis and
whose employment began within, and ended with his or her leaving to
return to school at the close of, his or her vacation period.
   (c) The claimant left the employer's employ to accompany his or
her spouse or domestic partner to or join her or him at a place from
which it is impractical to commute to the employment, to which a
transfer of the claimant by the employer is not available.
   (d) The claimant left the employer's employ to protect his or her
children or himself or herself from domestic violence abuse.
   (e) The claimant left the employer's employ to take a
substantially better job.
   (f) The claimant's discharge or quitting from his or her most
recent employer was the result of an irresistible compulsion to use
or consume intoxicants including alcoholic beverages.
   For purposes of this section and Section 1030 "spouse" includes a
person to whom marriage is imminent.



1032.5.  (a) Any base period employer may, within 15 days after
mailing of a notice of computation under Section 1329, submit to the
department facts within its possession disclosing that the individual
claiming benefits is rendering services for that employer in less
than full-time work, and that the individual has continuously,
commencing in or prior to the beginning of the base period, rendered
services for that employer in such less than full-time work.
   (b) The department shall consider facts submitted under
subdivision (a) of this section together with any information in its
possession and promptly notify the employer of its ruling.  If the
department finds that an individual is, under Section 1252,
unemployed in any week on the basis of his or her having less than
full-time work, and that the employer submitting facts under this
section is a base period employer for whom the individual has
continuously, commencing in or prior to the beginning of the base
period, rendered services in such less than full-time work, that
employer's account shall not be charged, except as provided by
Section 1026, for benefits paid the individual in any week in which
such wages are payable by that employer to the individual.  The
employer may appeal from a ruling or reconsidered ruling to an
administrative law judge within 20 days after mailing or personal
service of notice of the ruling or reconsidered ruling.  The 20-day
period may be extended for good cause, which shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.
The director shall be an interested party to any appeal.  The
department may for good cause reconsider any ruling or reconsidered
ruling within either five days after an appeal to an administrative
law judge is filed or, if no appeal is filed, within 20 days after
mailing or personal service of the notice of the ruling or
reconsidered ruling.



1033.  The director shall not less frequently than once each year
furnish each employer with an itemized statement of the charges to
the reserve account, and a statement of the reserve account showing
the credits and charges, the net balance of the reserve account and
the contribution rate for the applicable rating period.




1034.  (a) The employer, within 60 days after the date of mailing of
any statement of charges or credits and charges to  the reserve
account, or within an additional period not exceeding 60 days which
may for good cause be granted by the director, may file with the
director a written protest on any item shown thereon.  The protest
shall set forth the specific grounds on which it is made.  No protest
may be made on the ground that a claimant was ineligible for a
benefit payment where the employer was notified as required by this
division and any authorized regulation of the filing of a claim for
the benefits or of a determination of the claimant's eligibility
therefor and the employer failed to file a timely appeal on the
benefit claim, or a final decision of an administrative law judge or
of the appeals board affirmed the payment of the benefits.  Except as
to corrections made by the director as provided in Section 1036, the
contribution rate and other items shown on any such statement of
charges or statement of account shall be final unless a protest is
filed within the time prescribed in this section.
   (b) The employer, within 30 days after the last working day of
March, may file a protest on the grounds that the director did not
allow voluntary unemployment insurance contributions to the reserve
account in accordance with Section 976.5.



1035.  The director shall give notice pursuant to Section 1206 to
the employer of his or her action on a protest filed under Section
1034.


1036.  (a) The director shall give notice, pursuant to Section 1206,
to the employer of the correction of any error which the director
finds in any statement of account or statement of charges.  Except in
the case where fraud, intent to evade, misrepresentation, or willful
nondisclosure is found, the notice of correction shall be issued
prior to the expiration of the rating period to which a statement
relates.
   (b) Any additional amount of contributions resulting from an
increased contribution rate caused by the correction of any error
that the director finds in any statement of reserve account or
statement of charges shall be assessed within 180 days from the
postmarked date of the notice of correction. These assessments shall
be issued in accordance with Article 8 (commencing with Section
1126).  However, these assessments shall become final on the last day
of the calendar month following the calendar quarter in which the
assessment is issued.
   (c) Any overpaid amount of contributions resulting from a reduced
rate caused by the correction of an error that the director finds on
any statement of reserve account or statement of charges shall be
refunded within 180 days of the postmarked date of the notice of
correction.  These refunds shall be issued in accordance with Article
9 (commencing with Section 1176).



1037.  If a protest involving the contribution rate is pending when
any contribution to which such rate relates is due, the employer
shall pay the contribution at the rate shown in the statement
furnished by the director.  Such a protest, however, shall constitute
a claim for refund under Article 9 of this chapter, and if a final
determination on the protest reduces the contribution rate the amount
of overpayment shall be promptly credited or refunded as provided in
that article.

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1051.  Whenever any employing unit acquires the organization, trade,
or business, or substantially all of the assets thereof, or a
distinct and severable portion of such organization, trade, or
business, of any employer, excepting any assets retained by the
employer incident to the liquidation of his obligations (whether or
not the acquiring employing unit was an "employing unit" within the
meaning of Section 135 prior to such acquisition), and continues such
organization, trade, or business, or such distinct and severable
portion thereof without substantial reduction of personnel resulting
from such acquisition, an application may be made within 90 days of
such acquisition for transfer of reserve account.  The application
shall contain the name and address of the predecessor, the date of
acquisition, the name of the successor, the number of employees prior
to and subsequent to the date of acquisition, and, in case of
severable portions, such pay roll data as may be required by the
department to determine the proper amount to be transferred.




1051.5.  To the extent permitted by federal law, Sections 1051,
1052, and 1053 are applicable to acquisitions by a nonprofit
organization which has elected reimbursement financing pursuant to
Section 801 and the director shall transfer the reserve account of
the predecessor employer to the successor nonprofit organization.
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.


1052.  Upon receipt of the application the separate account, actual
contribution and benefit experience and payrolls of the predecessor
or that part thereof, as determined by authorized regulations, which
pertains to the organization, trade, or business, or portion thereof
acquired, shall be transferred to the successor employer for the
purpose of determining its rate of contribution after the acquisition
with the same effect for that purpose as if the operations of the
predecessor had at all times been carried on by the successor. The
separate account shall be transferred by the director to the
successor employer and, as of the date of the acquisition, shall
become the separate account or part of the separate account, as the
case may be, of the successor employer, and the benefits thereafter
chargeable to the predecessor employer on account of employment
relating to the transferred organization, trade, or business or
transferred portion thereof prior to the date of the acquisition
shall be charged to the separate account.  This section shall not
apply to any acquisition which is determined by the director to have
been made for the purpose of obtaining a more favorable rate of
contributions under Section 977.



1053.  Sections 1051 and 1052 are applicable to applications for
transfer of reserve accounts made after the 90-day period beginning
with the date of acquisition but prior to the cancellation of the
reserve account pursuant to Section 1029 if the reserve account has
not been reacquired by the predecessor on re-entering business or, in
the case of distinct and severable portions, if the predecessor did
not continue in business, but any amendment of the contribution rate
shall be made as of the first day of the calendar quarter next
succeeding the date of the application.



1054.  The provisions of this article requiring a specific
application for transfer of reserve account shall not apply to any
successor who through error or inadvertence continued to file
contribution reports and pay contributions for the account and at the
rate determined by the department to apply to the predecessor
employer, but such reporting and payment shall be deemed to be in
lieu of the application and shall be given the same effect as though
a specific application had been filed during the 90-day period
beginning with the date of acquisition.


1055.  In the event of a denial or granting of an application for
transfer of reserve account, the director shall give notice pursuant
to Section 1206 to the employing unit making such application, and to
the predecessor employing unit to whose reserve account the
application relates, if such predecessor employing unit has continued
in business as an employer.



1056.  The director may prescribe regulations for the establishment,
maintenance, and dissolution of joint accounts by two or more
employers and shall, in accordance with such regulations, upon
application by two or more employers to establish such account or to
merge their several individual accounts in a joint account, maintain
such joint account, as if it constituted a single employer's account.




1057.  Upon dissolution of a joint venture each participating
employer may within 90 days apply for the transfer of his
proportionate share of the reserve account.  Upon receipt of the
application the separate account, actual contribution and benefit
experience and pay rolls of such joint venture shall be apportioned
among the employers making such application in the same proportion
that assets are distributed among the participating employers, and
the portion thereof of each shall be transferred to each such
employer for the purpose of determining its rate of contribution
after the dissolution with the same effect for such purpose as if the
applicable portion of the operations of such joint venture had at
all times been carried on by such employer.  Such portion of such
separate account shall be transferred by the director to each such
employer and as of the date of such dissolution shall become the
separate account or part of the separate account, as the case may be,
of such employer. The benefits thereafter chargeable to such joint
venture on account of employment relating to such joint venture prior
to the date of such dissolution shall be charged to the separate
accounts of such employers in proportion to their participation in
the joint venture.  Any such joint venture shall promptly notify the
director of its dissolution.
   As used in this section only, "employer" includes the successor of
an employer and any subsequent successor employer or employers.



1058.  As used in this article the term "joint venture" means a
separate employing unit which has been organized by two or more
employers to accomplish a contract or project or series of contracts
or projects and which is wholly owned by such employers.  As used in
this section only, "employer" means any individual or type of
organization, including any partnership, joint venture, association,
trust, estate, joint stock company, insurance company, corporation
whether domestic or foreign, and the receiver, trustee in bankruptcy,
trustee or successor thereof, and the legal representative of a
deceased person.


1060.  A change in contribution rate caused by a transfer under this
article of all or a portion of the separate account, actual
contribution and benefit experience and pay rolls shall not become
effective earlier than the beginning of the calendar quarter next
succeeding the effective date of the transfer.



1061.  (a) For purposes of this article, the reserve account
attributable to a transferred business shall also be transferred to,
and co