SECTIONS 1521-1537 - California Statutes

UNEMPLOYMENT INSURANCE CODE

SECTION 1521-1537

1521. The Unemployment Fund is continued in existence as a special
fund, separate and apart from all public money or funds of this
state. This fund shall consist of (1) all employer contributions
collected under this division; (2) interest earned upon any money in
the fund; (3) any property or securities acquired through the use of
money belonging to the fund; (4) all earnings of such property or
securities; (5) all money credited to this state's account in the
Unemployment Trust Fund pursuant to Section 903 of the Social
Security Act, as amended; and (6) all other money received for the
fund from any other source. All money in the fund shall be mingled
and undivided.
Notwithstanding Section 13340 of the Government Code, all money in
the Unemployment Fund and in the various accounts of that fund,
except any money deposited pursuant to Section 1528.5, is
continuously appropriated for the purposes authorized in this
article.

1522. The Unemployment Fund shall be administered by the director
exclusively for the purposes of this division without liability upon
the part of the State beyond the amounts paid into and earned by the
fund.

1523. Withdrawals by the director from the Unemployment Fund are
exempted from the operation of Sections 925.4 and 925.6 of the
Government Code.

1524. The State Treasurer is ex officio the treasurer and custodian
of the Unemployment Fund. He shall administer the fund in accordance
with the directions of the director. The official bond of the State
Treasurer shall cover the faithful performance of his duties as
treasurer of the Unemployment Fund.

1525. There shall be maintained within the fund three separate
accounts:
(a) A clearing account.
(b) An Unemployment Trust Fund account.
(c) A benefit account.

1526. All contributions and amounts payable to the Unemployment
Fund after proper clearance shall be forwarded to the Treasurer who
shall immediately deposit them in the clearing account.

1526.1. All withheld income taxes and amounts payable to the
Personal Income Tax Fund after proper clearance shall be forwarded to
the Treasurer who shall immediately deposit them in that fund.

1526.2. All worker contributions and amounts payable to the
Disability Fund after proper clearance shall be forwarded to the
Treasurer who shall immediately deposit them in that fund.

1526.3. All amounts specified in Section 1585 payable to the
Contingent Fund after proper clearance shall be forwarded to the
Treasurer who shall immediately deposit them in that fund.

1526.4. All amounts payable to the Unemployment Administration Fund
after proper clearance shall be forwarded to the Treasurer who shall
immediately deposit them in that fund.

1527. Immediately after clearance, all money in the clearing
account except interest on contributions, and penalties collected
shall be deposited in or invested in the obligations of the
Unemployment Trust Fund of the United States of America or its
authorized agent to the credit of this State, any provisions of law
in this State relating to the deposit, administration, release, or
disbursement of money in the possession or custody of this State to
the contrary notwithstanding. The amounts so deposited or invested
shall be entered in the Unemployment Trust Fund Account.

1528. The benefit account consists of all money requisitioned from
this State's account in the Unemployment Trust Fund, except money
requisitioned for administration pursuant to Section 1528.5, and any
money so requisitioned, except money requisitioned for administration
pursuant to Section 1528.5, shall be transferred out of the
Unemployment Trust Fund account into the benefit account.

1528.5. (a) Money credited to the account of this state in the
Unemployment Trust Fund by the Secretary of the Treasury of the
United States of America pursuant to Section 903 of the Social
Security Act, as amended, may not be requisitioned from this state's
account or used except for the payment of benefits and for the
payment of expenses incurred for the administration of this part.
Such money may be requisitioned pursuant to Section 1529 for the
payment of benefits. Such money may also be requisitioned and used
for the payment of expenses incurred for the administration of this
part but only pursuant to a specific appropriation by the Legislature
and only if the expenses are incurred and the money is requisitioned
after the enactment of an appropriation law which:
(1) Specifies the purposes for which such money is appropriated
and the amounts appropriated therefor.
(2) Limits the period within which such money may be obligated to
a period ending not more than two years after the date of the
enactment of the appropriation law.
(3) Provides that the total amount which may be obligated shall be
limited to the restrictions specified by, and charged in accordance
with, Section 903(c)(2)(D) of the Social Security Act, as amended.
(b) Money appropriated pursuant to this section for the payment of
expenses of administration shall be requisitioned as needed for the
payment of obligations incurred under such appropriation and, upon
requisition, shall be deposited in the Unemployment Administration
Fund, but, until expended, shall remain a part of the Unemployment
Fund. The director and the Controller shall maintain a separate
record of the deposit, obligation, expenditure, and return of funds
so deposited. Any money so deposited which will not be expended shall
be returned promptly to the account of this state in the
Unemployment Trust Fund.

1529. Except as provided in Section 1528.5, money shall be
requisitioned from this State's account in the Unemployment Trust
Fund solely for the payment of benefits and in accordance with
authorized regulations. The director shall from time to time
requisition from the Unemployment Trust Fund such amounts, not
exceeding the amounts standing to this State's account therein, as he
deems necessary for the payment of benefits for a reasonable future
period. Upon receipt thereof the Treasurer shall deposit such money
in the benefit account of the Unemployment Fund. Any balance of money
requisitioned from the Unemployment Trust Fund which remains
unclaimed or unpaid in the benefit account after the expiration of
the period for which such sums were requisitioned shall either be
considered in preparing subsequent estimates and may be utilized for
the payment of benefits during succeeding periods, or, in the
discretion of the director, shall be redeposited with the Secretary
of the Treasury of the United States of America, to the credit of
this State's account in the Unemployment Trust Fund.

1530. The provisions of this article to the extent that they relate
to the Unemployment Trust Fund, shall be operative only so long as
that fund continues to exist and so long as the Secretary of the
Treasury of the United States of America continues to maintain for
this State a separate book account of all funds deposited therein by
this State for benefit purposes, together with this State's
proportionate share of the earnings of the Unemployment Trust Fund,
from which no other state nor the United States is permitted to make
withdrawals. If and when such Unemployment Trust Fund ceases to
exist, or such separate book account is no longer maintained, all
money, properties, or securities therein, belonging to the
Unemployment Fund of this State shall be transferred to the treasurer
of the Unemployment Fund, who shall hold, invest, transfer, sell,
deposit, and release such money, properties, or securities in a
manner approved by the director in accordance with the provisions of
this division. Such money shall be invested in bonds or other
interest-bearing obligations of the United States of America or the
State of California. Such investment shall at all times be so made
that all the assets of the fund shall always be readily convertible
into cash when needed for the payment of benefits. The Treasurer
shall dispose of securities or other properties belonging to the
Unemployment Fund only under the direction of the director.

1531. The director shall, without presenting vouchers and itemized
statements therefor, withdraw from the benefit account any sums which
he deems necessary for the payment of benefits for a reasonable
future period. The Controller shall draw his warrant for any claim
presented by the director for the payment of benefits under this
account and the Treasurer shall pay the warrant. Upon the withdrawal
thereof, such sums shall be deposited in a benefit payment account in
such bank, savings and loan association, or public depository and
under such conditions as the director determines, with the approval
of the Department of Finance. Such bank, savings and loan
association, or public depository shall be one in which general funds
of the state may be deposited, but no public deposit insurance
charge or premium shall be paid out of the benefit payment account.
The director may, out of funds available for administration, pay
premiums on insurance for the protection of money in his possession.

1532. Money in the benefit payment account shall be used solely to
pay benefits pursuant to authorized regulations and no other
disbursement shall be made therefrom, but amounts erroneously and
illegally deposited in such account may be refunded therefrom, except
that money credited to this State's account pursuant to Section 903
of the Social Security Act, as amended, shall be used exclusively as
provided in Section 1528.5. The procedure prescribed by such
regulations shall be deemed to satisfy and shall be in lieu of any
and all statutory requirements not contained in this division of
specific appropriation or other form of release by state officers of
money in their custody prior to expenditure which might otherwise be
applicable to withdrawals from the benefit payment account. Any
balance of money withdrawn from the benefit account which remains
unclaimed or unpaid in the benefit payment account after the
expiration of the period for which such sums were withdrawn shall be
considered in preparing subsequent estimates and may be utilized for
the payment of benefits during succeeding periods or, in the
discretion of the director, shall be redeposited in the benefit
account.

1533. Except as otherwise provided in this chapter, money in the
clearing and benefit accounts may be deposited by the Treasurer,
under the direction of the director, in any bank, savings and loan
association, or public depositary in which public funds of the state
may be deposited, but no public deposit insurance charge or premium
shall be paid out of the fund. Money in the clearing and benefit
accounts shall not be commingled with other state funds, but shall be
maintained in a separate account on the books of the depositary.
Such money shall be secured by the bank or public depositary to the
same extent and in the same manner as required under Chapter 4, Part
2, Division 4, Title 2 of the Government Code if deposited in a bank
or public depository, not a savings and loan association or to the
same extent and in the same manner as required under Chapter 4.5
(commencing with Section 16600) of Part 2 of Division 4 of Title 2 of
the Government Code if deposited in a savings and loan association
and collateral pledged shall be maintained in a separate custody
account.

1534. Refunds or judgments payable pursuant to this part, may be
paid from the clearing account or from the benefit account with
respect to any money erroneously deposited therein, upon warrants
issued by the Controller under the direction of and in accordance
with authorized regulations, except that money credited to this state'
s account pursuant to Section 903 of the Social Security Act, as
amended, shall be used exclusively as provided in Section 1528.5.
Refunds of interest, penalties, and fines and interest payable on
refunds and judgments pursuant to this division may not be paid from
the benefit account but may be paid from the clearing account to the
extent that interest, penalties, and fines collected are currently on
deposit in that account.

1535. During such time as the Federal Social Security Act and
Federal Unemployment Tax Act are amended so as to remove the
requirement that all money withdrawn from the Unemployment Fund be
used solely in the payment of unemployment compensation, exclusive of
expenses of administration, and for refunds of sums erroneously paid
into such fund and refunds paid in accordance with the provisions of
Section 3305(b) of the Federal Unemployment Tax Act, then
notwithstanding any other provisions of this division to the contrary
there is hereby continuously appropriated out of the Unemployment
Fund for the purpose of administering this division, including
salaries and other expenses of the department and the acquisition of
necessary real property, all amounts collected under Section 993.

1536. Any amounts determined by the director or his authorized
representatives to be payable to employing units as refunds of
contributions erroneously paid which are unclaimed at the end of
three years from such determination shall be included in the revenue
to the Unemployment Fund or in the case of interest or penalties, to
the Contingent Fund. The employing unit or person entitled to such
payment shall not thereafter maintain any claim, action or proceeding
with respect to such amounts.

1537. Whenever any warrant drawn on an account in the Unemployment
Fund or on the Unemployment Administration Fund or the Contingent
Fund by the Controller remains unclaimed after one year the amount
thereof shall revert to the account and the fund from which the
amount was payable.