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1585.  There is in the State Treasury a special fund known as the
Employment Development Department Contingent Fund.  The Employment
Development Department Contingent Fund is the successor of the
Department of Human Resources Development Contingent Fund.  There
shall be deposited in or transferred to this fund:
   (a) All interest on contributions collected under this division,
except as provided in Section 1595 and in Article 6 (commencing with
Section 821) of Chapter 3.
   (b) All penalties collected under this division, except as
provided in Sections 1375.1, 1958, and 3654.2, and in Article 6
(commencing with Section 821) of Chapter 3.
   (c) Notwithstanding any other provision of law, all penalties and
interest collected by the department pursuant to Division 6
(commencing with Section 13000)  relating to the withholding of
personal income tax.
   (d) Rental payments or proceeds attributable to property derived
from amounts expended from this fund.
   (e) Interest on amounts expended from this fund.



1585.5.  The director shall estimate the amount of penalties and
interest collected by the department pursuant to Division 6
(commencing with Section 13000) relating to the withholding of
personal income tax and shall transfer such amount to the Personal
Income Tax Fund on a quarterly basis.



1586.  All amounts in the Contingent Fund are hereby continuously
appropriated without regard to fiscal years for refund of amounts
collected and erroneously deposited therein, for interest payable
under this division on refunds and judgments and for the
administration of the department.



1586.5.  There is hereby appropriated from the Contingent Fund to
the Employment Development Department an amount sufficient to augment
an appropriation available from the Unemployment Trust Fund pursuant
to Section 1528.5 for acquisition of real property, or for
construction and equipment of state public works projects, in order
to provide for payment of such public work projects for which an
appropriation is available where such project cannot be undertaken
because the estimate exceeds the amount available or bids received
are in excess of the estimate, and upon such augmentation, contracts
may be awarded therefor, notwithstanding the provisions of Section
14275 of the Government Code.
   Allocations may be made for acquisition of real property in
augmentation of appropriations made for acquisition of real property
and which cannot be acquired because acquisition costs are in excess
of the amounts provided in the appropriation.
   Allocations may be made for purchase of equipment in augmentation
of appropriations made from which purchase of equipment is
authorized.
   Expenditures shall be pursuant to executive orders of the Director
of Finance upon approval of the State Public Works Board.




1588.  Any amount authorized to be expended from the Contingent Fund
for administration may be transferred to the Unemployment
Administration Fund, but any amount not needed for the purpose for
which authorized shall, upon order of the Director of Finance, be
retransferred to the Contingent Fund.



1589.  In lieu of filing claims for refund and interest payable on
refunds against each of the funds from which an amount has been
determined to be due under this division, the director may file a
single claim with the State Controller showing the amount payable
from each fund for payment from the Contingent Fund, and the
Controller shall thereupon draw his warrant on the Contingent Fund
and transfer the amounts certified by the director to be due from the
Clearing Account--Unemployment Fund, the Employment Training Fund,
the Unemployment Compensation Disability Fund, and the Personal
Income Tax Fund, to the Contingent Fund.


1590.  Except as provided by Section 1585.5, the director shall from
time to time determine, and the State Controller shall from time to
time transfer, the unencumbered balance of the Contingent Fund which
at any time during any calendar year exceeds one million dollars
($1,000,000) to the Unemployment Fund and the Disability Fund in the
proportion that the year's estimated revenues for penalties and
interest relating to employer contributions attributable to the
Unemployment Fund bear to the year's estimated revenues for penalties
and interest relating to worker contributions attributable to the
Disability Fund.


1590.5.  It is the intent of the Legislature that the Budget Act for
each fiscal year shall appropriate the entire amount available in
the Contingent Fund during the fiscal year for the purposes of this
article.

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1591.  (a) There is in the State Treasury the Employment Development
Department Building Fund.  There shall be deposited in, or
transferred to, the fund the following:
   (1) All money received from the sale or lease of real property,
the purchase, acquisition, or construction of which was made by an
appropriation to the Employment Development Department for that
specific purpose, which was amortized with federal funds paid out of
the Unemployment Administration Fund.
   (2) All interest earned by the fund.
   (b) Money in the fund shall only be expended pursuant to
appropriations by the Legislature.



1592.  The Employment Development Department Building Fund shall be
used for the acquisition, construction, or renovation of department
facilities, necessary for the director to administer this code and
laws relating thereto.

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1595.  There is in the State Treasury a special fund known as the
Employment Development Department Benefit Audit Fund.  There shall be
deposited in, or transferred to, this fund all sums collected
pursuant to Section 1375.1 and all interest from these sums.




1596.  All amounts in the Benefit Audit Fund are hereby continuously
appropriated without regard to fiscal years for the refund of
amounts collected and erroneously deposited therein, and shall be
appropriated annually in the Budget Act by the Legislature for the
financing of administrative costs associated with the discovery and
collection of unemployment compensation benefit overpayments.

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1601.  When money other than Disability Fund money is used in the
purchase of property and in the construction of buildings, and
appurtenant facilities, or in the purchase of property, or in the
construction of buildings, and appurtenant facilities, for the use of
the department, or for the use of the department and other state
agencies, the director may do any and all things necessary to protect
the property including purchasing insurance against the loss of or
damage to the property or the loss of use and occupancy of the
property.  Any transaction entered into by the director under this
section shall be subject to the approval of the Department of General
Services.



1602.  The department shall comply with all federal regulations with
regard to the sale of property in which the federal government has
an equity.

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1610.  There is in the State Treasury a special fund known as the
Employment Training Fund.  There shall be deposited in or transferred
to this fund all contributions collected from employers pursuant to
Section 976.6. Costs incurred for the purposes specified in Section
1611 in fiscal year 1982-83 shall be reimbursed, and thereafter shall
be annually appropriated by the Legislature from the Employment
Training Fund.



1611.  Money in the Employment Training Fund shall be expended only
for the purposes of Chapter 3.5 (commencing with Section 10200) of
Part 1 of Division 3, and for the costs of administering this article
and Section 976.6, except:
   (a) With the approval of the Legislature, the fund or
contributions to it may be used to pay interest charged on federal
loans to the Unemployment Fund.
   (b) Commencing with allocations made to the Employment Training
Panel in the 1992-93 fiscal year, any moneys allocated to the panel
in a fiscal year that are not encumbered by the panel in that fiscal
year, shall revert to the Unemployment Insurance Fund.
   (c) It is the intent of the Legislature that the panel shall
closely monitor program performance and expenditures for employment
training programs administered by the panel, and that the panel shall
expeditiously disencumber funds that are not needed for employment
training program completion.  Commencing with the 1992-93 fiscal
year, those moneys that are disencumbered during the fiscal year that
are not reencumbered during the same fiscal year shall revert to the
Unemployment Insurance Fund.



1611.5.  Notwithstanding Section 1611, the Legislature may
appropriate from the Employment Training Fund an amount specified in
the annual Budget Act to fund the local assistance portion of
welfare-to-work activities under the CalWORKs program, provided for
pursuant to Article 3.2 (commencing with Section 11320) of Chapter 2
of Part 3 of Division 9 of the Welfare and Institutions Code, as
administered by the State Department of Social Services.

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1701.  The wage earner and employer contributions required to be
paid by any employing unit under this division, together with
interest and penalties, shall be satisfied first in any of the
following cases:
   (a) Whenever the employing unit is insolvent.
   (b) Whenever the employing unit makes a voluntary assignment of
its assets.
   (c) Whenever the estate of the employing unit in the hands of the
executors, administrators, or heirs is insufficient to pay all the
debts due from the deceased.
   (d) Whenever the estate and effects of an absconding, concealed,
or absent employing unit required to pay any amount under this
division are levied upon by process of law.



1702.  Section 1701 does not give the state a preference over any
lien or security interest which was recorded or perfected prior to
the time when the state records or files its lien as provided in
Section 7171 of the Government Code.  The preference given to the
state by Section 1701 is subordinate to the preferences given to
claims for personal services by Sections 1204 and 1206 of the Code of
Civil Procedure.



1703.  (a) If any employing unit or other person fails to pay any
amount imposed under this division at the time that it becomes due
and payable, the amount thereof, including penalties and interest,
together with any costs, shall be a perfected and enforceable state
tax lien.  This lien is subject to Chapter 14 (commencing with
Section 7150) of Division 7 of Title 1 of the Government Code.
   (b) For purposes of this section, amounts are "due and payable" on
the following dates:
   (1) For amounts disclosed on a return or report received by the
director, the date of the notice by the director to the taxpayer of
the amount due.
   (2) For penalties imposed pursuant to Sections 1112.5, 1114, and
13052.5, the date of the notice by the director to the taxpayer of
the amount due.
   (3) For any amounts reestablished under Section 1875, the date of
the written notice of rescission provided under subdivision (c) of
that section.
   (4) For all other amounts, the date the assessment is final.
   (c) The lien provided by this section shall not arise during any
period that Section 362 of the United States Bankruptcy Code applies
to the employing unit or other person against whom the lien would
otherwise apply.

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1731.  Any person or employing unit that acquires the organization,
trade or business, or substantially all the assets thereof, of an
employer shall withhold in trust money or other property sufficient
in amount or value to cover the amount of any contributions, interest
and penalties due or unpaid from such employer until such employer
produces a certificate from the department stating that no
contributions, interest or penalties are due.  If such employer does
not produce such certificate, the acquiring person or employing unit
shall pay the amount or the value of the property so withheld to the
department at the time of such acquisition.



1732.  (a) Upon request of either of the parties to an acquisition
as described in Section 1731, the department shall within 30 days
issue a certificate, or a statement showing the amount of any
contributions, interest and penalties claimed to be due.  The failure
to issue a certificate or a statement within the period of 30 days
shall be deemed equivalent to the issuance of a certificate stating
that no contributions, interest or penalties are due.
   (b) If the department issues a statement showing the amount of
contributions, interest and penalties claimed to be due, the amount
stated therein shall be withheld and paid to the department such
amount, however, not to exceed the purchase price.  The issuance of
any certificate stating that no contributions, interest and penalties
are due, or the failure to issue such certificate or statement
within the period of 30 days shall not release the employer from
liability on account of any contributions, interest and penalties
then or thereafter determined to be due from him, but shall release
the acquiring person or employing unit from any further liability on
account of any such contributions, interest and penalties.



1733.  Any person or employing unit that fails to withhold money or
other property or fails to pay the amount or value of the property
withheld as provided in Sections 1731 and 1732 shall be personally
liable for the payment of the contributions, interest and penalties
due from the employer up to but not exceeding the purchase price.
The director shall assess such amount to the acquiring person or
employing unit and shall give a written notice of the assessment
pursuant to Section 1206.  Sections 1135, 1136, 1137, 1221, 1222,
1223, and 1224 apply to assessments under this section.



1734.  The director shall have all of the remedies for collection
against any person or employing unit that acquires the organization,
trade or business, or substantially all the assets thereof of an
employer as are provided by this division against any employer liable
for contributions, interest and penalties due.  The time within
which the obligation may be enforced against the person or employing
unit acquiring the organization, trade or business, or substantially
all the assets thereof of an employer shall start to run with the day
the assessment against such person or employing unit becomes final.



1735.  Any officer, major stockholder, or other person, having
charge of the affairs of a corporate, association, registered limited
liability partnership or foreign limited liability partnership, or
limited liability company employing unit, who willfully fails to pay
contributions required by this division or withholdings required by
Division 6 (commencing with Section 13000) on the date on which they
become delinquent, shall be personally liable for the amount of the
contributions, withholdings, penalties, and interest due and unpaid
by such employing unit.  The director may assess such officer,
stockholder, or other person for the amount of such contributions,
withholdings, penalties, and interest.  The provisions of Article 8
(commencing with Section 1126) and Article 9 (commencing with Section
1176) of Chapter 4 of Part 1 apply to assessments made pursuant to
this section.  Sections 1221, 1222, 1223, and 1224 shall apply to
assessments made pursuant to this section.  With respect to such
officer, stockholder, or other person, the director shall have all
the collection remedies set forth in this chapter.




1735.1.  (a) An individual who has been assessed under the
provisions of Section 1128.1, or any officer, major stockholder, or
other person having charge of the affairs of a business entity that
has been assessed under the provisions of that section, shall be
personally liable for the amount of contributions, withholdings,
penalties, and interest due and unpaid by the employer, other than
those under subdivisions (a) and (b) of Section 1128, for whom money
was exchanged as described in Section 1128.1.  The director may
assess that person for the amount of contributions, withholdings, all
penalties other than those under Section 1128, and interest.  The
provisions of Article 8 (commencing with Section 1126) and Article 9
(commencing with Section 1176) of Chapter 4 of Part 1 shall apply to
assessments made pursuant to this section.  Sections 1221, 1222,
1223, and 1224 shall apply to assessments made pursuant to this
section.  With respect to that person, the director shall have all
the collection remedies set forth in this chapter.
   (b) For purposes of this section, "business entity" means a
partnership, corporation, association, limited liability company, or
Indian tribe (as described by subsection (u) of Section 3306 of Title
26 of the United States Code).



1736.  In addition to other penalties prescribed in this division,
failure to file the notice required by Section 1090 shall cause the
assignee, receiver, trustee in bankruptcy, or other representative of
an insolvent employing unit, or the administrator or executor of the
estate of the deceased employing unit to be personally responsible
for all loss in contributions, penalties and interest attributable to
such failure.  This liability may be enforced by civil action in the
name of the State of California against the assignee, receiver,
trustee in bankruptcy, or other representative of the insolvent
employing unit, and against the administrator or executor of the
deceased employing unit.

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1755.  If any person or employing unit is delinquent in the payment
of any contributions, penalties or interest provided for in this
division, the director may, not later than three years after the
payment became delinquent or within 10 years after the last entry of
a judgment under Article 5 (commencing with Section 1815) or within
10 years after the last recording or filing of a notice of state tax
lien under Section 7171 of the Government Code, collect the
delinquency or enforce any liens by levy served either personally or
by certified mail, to all persons having in their possession or under
their control any credits or personal property belonging to the
delinquent person or employing unit, or owing any debts to the person
or employing unit at the time of the receipt of the notice of levy
or coming into their possession or under their control for the period
of one year from the time of receipt of the notice of levy.  Any
person upon whom a levy has been served having in his or her
possession or under his or her control any credits or personal
property belonging to the delinquent person or employing unit or
owing any debts to the person or employing unit at the time of the
receipt of the levy or coming into his or her possession or under his
or her control for the period of one year from the time of receipt
of the notice of levy, shall surrender the credits or personal
property to the director or pay to the director the amount of any
debt owing the delinquent employer within five days of service of the
levy, and shall surrender the credits or personal property, or the
amount of any debt owing to the delinquent employer coming into his
or her possession or under his or her control within one year of
receipt of the notice of levy within five days of the date of coming
into possession or control of the credits or personal property, or
the amount of any debt owing to the delinquent employer is incurred.
Any person in possession of any credits or personal property or
owing any debts to the delinquent person or employing unit who
surrenders the credits or personal property or pays the debts owing
the delinquent person or employing unit shall be discharged from any
obligation or liability to the delinquent person or employing unit
with respect to the credits or personal property surrendered or debts
paid to the director.  If the levy is made on a deposit or credits
or personal property in the possession or under the control of a bank
or savings and loan association, the notice of levy shall be
delivered or mailed to the branch or office of the bank or savings
and loan association at which the deposit is carried or at which
credits or personal property is held.  If the levy is made on a bank
or savings and loan association it will apply to all credits or
personal property as provided in this section, except that it will
apply to credits and personal property in a deposit account, as
defined in paragraph (29) of subdivision (a) of Section 9102 of the
Commercial Code, only at the time the notice of levy is received by
the bank or savings and loan association.



1756.  Notices of levy to the state, pursuant to Section 1755, shall
be given to the state department, board, office or commission prior
to the time it presents the claim of the person or employing unit to
the State Controller.


1757.  Any person notified pursuant to Section 1755 who fails or
refuses to surrender any credits or other personal property, or pay
any debts owing to the delinquent employer, up to the amount
specified in the levy, shall be liable in his own person and estate
to the director in an amount equal to the value of the credits or
other personal property in the amount of the debt, but not exceeding
the amount specified in the notice of levy, if solely by reason of
such failure or refusal, the department is unable to recover the
contributions, penalties, or interest owing by the person with
respect to which the notice was given.


1758.  As used in this article "person" includes this State and any
county, city and county, municipality, district or other political
subdivision thereof.

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1785.  If any amount required to be paid under this division is not
paid when due, the director or the director's authorized
representative may, not later than three years after the payment
became delinquent, or within 10 years after the last entry of a
judgment under Article 5 (commencing with Section 1815) or within 10
years after the last recording or filing of a notice of state tax
lien under Section 7171 of the Government Code, issue a warrant for
the enforcement of any liens and for the collection of any amount
required to be paid to the state under this division.  The warrant
shall be directed to any sheriff, marshal, or peace officer of the
Department of the California Highway Patrol and shall have the same
effect as a writ of execution.  The warrant shall be levied and sale
made pursuant to it in the same manner and with the same effect as a
levy of and a sale pursuant to a writ of execution.



1786.  The department may pay or advance to the sheriff, marshal, or
peace officer of the Department of the California Highway Patrol the
same fees, commissions, and expenses for his or her services under
this article as are provided by law for similar services pursuant to
a writ of execution.  The director, and not the court, shall approve
the fees for publication in a newspaper.



1787.  The fees, commissions, and expenses incurred in connection
with the levying and execution of a warrant are the obligation of the
person or employing unit required to pay any amount under this
division and may be collected from him by virtue of the warrant or in
any other manner provided in this chapter for the collection of the
tax.

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1815.  If any employing unit is delinquent in the payment of any
contributions, penalties or interest provided for in this division,
the director may, not later than 10 years after the payment became
delinquent or within 10 years after the last entry of a judgment
under this article or within 10 years after the last recording or
filing of a notice of state tax lien under Section 7171 of the
Government Code, file in the office of the Clerk of the Superior
Court of Sacramento County, or with the clerk of the superior court
of the county in which the employer has its principal place of
business, a certificate specifying the amount of the contributions,
interest and penalty due and the name and last known address of the
employer liable therefor.  The certificate shall also contain a
statement that the director has complied with all the provisions of
this division in relation to the computation and levy of the
contributions, interest and penalty, and a request that judgment be
entered against the employer in the amount set forth in the
certificate.  The clerk immediately upon the filing of the
certificate shall enter a judgment for the State of California
against the employer in the amount set forth in the certificate.
Such judgment may be filed by the clerk in a looseleaf book entitled
"Unemployment Contributions Judgments."



1816.  An abstract of a judgment secured pursuant to this article or
a copy thereof may be recorded with the county recorder of any
county and from the time of the recording, the amount of the judgment
shall constitute a lien upon all the real property of the employer
in that county, owned or acquired by him during the life of the lien.
  The lien shall have the force, effect and priority of a judgment
lien and shall continue for 10 years after the last entry of a
judgment under this article unless sooner released or otherwise
discharged.  The lien may, within 10 years after the last entry of a
judgment under this article or within 10 years from the date of the
last extension of the lien, be extended by recording a new abstract
in the office of the county recorder of any county and from the time
of such recording, the lien shall be extended to all the real
property in such county for 10 years unless sooner released or
otherwise discharged.  Execution shall issue upon such a judgment
upon request of the director in the same manner as execution may
issue upon other judgments and sales shall be held under such
execution as prescribed in the Code of Civil Procedure.  In all
proceedings under this section the director or his authorized agents
may act on behalf of the state.



1817.  (a) If the director determines that the amount of any
contributions, interest, and penalties are sufficiently secured by a
lien on other property or that the release or subordination of the
lien imposed under Section 1816 will not jeopardize the collection of
the amount of the contributions, interest, and penalties, the
director may at any time release all or any portion of the property
subject to the lien imposed by Section 1816 from the lien or may
subordinate the lien imposed by Section 1816 to other liens and
encumbrances.
   (b) If the director finds that the liability represented by the
lien imposed under Section 1816, including any interest accrued
thereon, is legally unenforceable, the director may release the lien.

   (c) A certificate by the director to the effect that any property
has been released from a lien or that the lien has been subordinated
to other liens and encumbrances is conclusive evidence that such
property has been released or that the lien has been subordinated as
provided in the certificate.



1818.  The right of the director to use the summary judgment
procedure contained in this article shall be in addition to any other
collection procedure contained in this division.  No action taken by
the director shall be construed to be an election to pursue the
summary judgment procedure to the exclusion of any other collection
procedure in this division.

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1851.  No injunction or writ of mandate or other legal or equitable
process shall issue in any suit, action or proceeding, in any court
against this State or against any officer thereof to prevent or
enjoin the collection of any contribution sought to be collected
under this division.



1852.  In addition to any other tax administration and collection
procedures authorized in this division, the director may bring an
action in the courts of this or any other state or of the United
States, in the name of the State of California, to administer the
provisions of, and to collect the amount of any delinquent
contributions or taxes, together with penalties and interest, due
under this code.  No such action shall be commenced later than:
   (a) Three years after the date on which any amount due on a return
or report filed by an employing unit or on an assessment made by the
director becomes delinquent.
   (b) Ten years after:
   (1) The date on which a judgment is last entered under Article 5
of this chapter.
   (2) The date on which a notice of state tax lien is last recorded
or filed under Section 7171 of the Government Code.



1853.  The courts of this State shall give preference on their
calendar to any civil action brought by or against the director over
all other civil litigation except equity cases, cases involving
extraordinary writs, or summary proceedings.




1854.  In any civil action brought by or against the director a
certificate under oath by the director or his authorized agent
showing the delinquency shall be prima facie evidence of the levy of
the contributions, of the delinquency of the amounts set forth, and
of the compliance by the director with all the provisions of this
division relating to the computation and levy of the amounts.



1855.  (a) A civil action may be commenced at the request of the
director in the name of the State of California to enjoin any
individual or entity from conduct that, by solicitation, sale, or
advertising, is inducing or otherwise attempting to persuade
employers or employees, or potential employers or employees, to
violate this code or to otherwise attempt to evade contributions or
taxes provided for under this code by scheme, device, or similar
activity. Any action under this section shall be brought in the
Superior Court of the County of Sacramento or in the superior court
of the county in which that individual or entity resides, has its
principal place of business, or has engaged in conduct subject to
penalty under this code.
   (b) In any action under subdivision (a), the court may enjoin the
person from engaging in the conduct or in any other activity
specified in subdivision (a), if the court finds both of the
following:
   (1) That the person has engaged in any conduct specified in
subdivision (a).
   (2) That injunctive relief is appropriate to prevent recurrence of
that conduct.
   (c) For purposes of the civil action referred to in subdivisions
(a) and (b), the court may issue without bond, a temporary
restraining order upon the filing of a statement, certified by the
director, which contains both of the following:
   (1) That a determination has been made that the individual or
entity is engaging in conduct described in subdivision (a),
accompanied by a detailed description of the reasons for the
determination.
   (2) That the activity of the individual or entity will result in
the nonpayment of contributions or taxes required under this code and
that the contributions or taxes would be otherwise payable.
   (d) The director shall provide the court clerk with an exact copy
of the certified statement upon filing, which copy will be endorsed
or certified by the court clerk and returned to the director, along
with a certified copy of the court's order. From the time of service
of the endorsed or certified copy of the statement and order, that
individual or entity shall be temporarily restrained from the
activity set forth in the statement. That temporary restraining order
will continue in effect unless dissolved after a hearing on a
preliminary injunction in the Superior Court of Sacramento County or
the county in which the individual or entity resides, has its place
of business, or has engaged in the conduct specified in the
statement. That hearing or preliminary injunction shall be held under
the rules of the superior court.

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1860.  (a) For the purpose of collecting delinquent contributions,
interest, and penalties, the director may enter into an agreement
with one or more private persons, companies, associations, or
corporations providing debt collection services outside this state
with respect to the collection of delinquent contributions, interest,
and penalties.  That agreement may provide, at the discretion of the
director, the rate of payment and the manner in which compensation
for services shall be paid.  The compensation, fees, and expenses may
be added to the amount of the delinquent contributions, interest,
and penalties and may be collected by the contractor from the debtor.
  The director shall provide the necessary information for the
contractor to fulfill its obligation under the agreement.
   (b) At the discretion of the director, the contractor may, as part
of the collection process, refer the debt  to legal representatives
for litigation in the name of the director.
   (c) No action taken by the director, pursuant to this section,
shall be construed to be an election to forego other collection
procedures in this division.