SECTIONS 3001-3015 - California Statutes

UNEMPLOYMENT INSURANCE CODE

SECTION 3001-3015

3001. (a) The Unemployment Compensation Disability Fund is
continued in existence as a special fund in the State Treasury,
separate and apart from all other public money or funds of this
state. The moneys and assets of this fund shall be held in trust by
the State Treasurer and administered under the direction of the
director exclusively, for the purpose of this part.
(b) Notwithstanding any other law, the Controller may use the
moneys in the Unemployment Compensation Disability Fund for loans to
the General Fund as provided in Sections 16310 and 16381 of the
Government Code. However, interest shall be paid on all moneys loaned
to the General Fund from the Unemployment Compensation Disability
Fund. Interest payable shall be computed at a rate determined by the
Pooled Money Investment Board to be the current earning rate of the
fund from which loaned. This subdivision does not authorize any
transfer that will interfere with the carrying out of the object for
which the Unemployment Compensation Disability Fund was created.

3002. The State Treasurer is the treasurer of the Disability Fund
and shall have the custody of all money belonging to the Disability
Fund and not otherwise held, deposited or invested under this part.
The official bond of the State Treasurer shall cover the faithful
performance of his or her duties as treasurer of the Disability Fund.
The State Treasurer shall invest or otherwise deal with the
Disability Fund under the supervision of the director. The State
Treasurer may, pursuant to Section 16470 of the Government Code, file
with the Pooled Money Investment Board a notice of election that
investment of surplus money in the Disability Fund shall come under
the provisions of the Surplus Money Investment Fund, and may revoke
such election pursuant to Section 16470 of the Government Code. As of
the effective date of any election with respect to the Disability
Fund filed pursuant to Section 16470 of the Government Code, the
State Treasurer shall transfer the surplus money in the Disability
Fund to the Surplus Money Investment Fund, and may transfer all or
any portion of the investments held by the Disability Fund at the
date of such election, from the Disability Fund to the Surplus Money
Investment Fund. As of the effective date of the revocation of any
such election, the State Treasurer shall transfer from the Surplus
Money Investment Fund to the Disability Fund the surplus money and
earnings attributable to the Disability Fund.

3003. (a) Except as provided in subdivision (c), all surplus money
in the Disability Fund may be invested solely in securities set forth
in subdivision (b) of this section, and all interest or earnings
therefrom shall be deposited in the Disability Fund.
(b) Eligible securities for the investment of surplus money shall
be:
(1) Bonds or interest-bearing notes or obligations of the United
States, or those for which the faith and credit of the United States
are pledged for the payment of principal and interest.
(2) Bonds of this state, or those for which the faith and credit
of this state are pledged for the payment of principal and interest.
(3) Bonds of any county, city, metropolitan water district,
municipal utility district, or school district of this state.
(4) Bonds, consolidated bonds, collateral trust debentures,
consolidated debentures, or other obligations issued by federal land
banks or federal intermediate credit banks established under the
Federal Farm Loan Act.
(5) Debentures and consolidated debentures issued by the Central
Bank for Cooperatives and banks for cooperatives established under
the Farm Credit Act of 1933.
(6) Bonds or debentures of the Federal Home Loan Bank Board
established under the Federal Home Loan Bank Act.
(7) Bonds of any federal home loan bank established under the
Federal Home Loan Bank Act.
(8) Stock, bonds, debentures and other obligations of the Federal
National Mortgage Association established under the National Housing
Act.
(9) Bonds, notes, and other obligations issued by the Tennessee
Valley Authority under the Tennessee Valley Authority Act.
(c) This section shall not apply during the period of any election
under Section 16470 of the Government Code for investment of surplus
money in the Disability Fund under the provisions of the Surplus
Money Investment Fund.

3004. The Disability Fund consists of all contributions required of
individuals under Section 984 with respect to wages paid by
employers for employment; all money received for the purpose of
disability benefits from the United States of America or any agency
thereof, or from any other source; and any property or securities
acquired through the use of money belonging to the Disability Fund
and all earnings of such money or securities.

3005. All money received from the Federal Government for disability
benefit purposes or for the administration of this part shall be
deposited in the Disability Fund in accordance with the terms of the
federal grant. Unless the Federal Government approves, no money made
available to this State under Title 3 of the Social Security Act
shall be used for disability benefits or for the administration of
this part.

3006. There shall be no further transfer of money from the
Unemployment Trust Fund to the Disability Fund.

3008. All money collected under Section 984 shall be deposited in
the Disability Fund.

3009. Refunds, credits, or judgments, and interest thereon, payable
for contributions erroneously collected under Sections 984 and 985
may be paid from the Disability Fund on warrants issued by the
Controller under the direction of the director.

3010. Any amounts determined by the director or his authorized
representatives to be payable to employing units or workers as
refunds of amounts deposited in the various accounts of the
Disability Fund which are unclaimed at the end of three years from
such determination, shall be included in the revenue to the account
in the Disability Fund in which they were deposited. The employing
unit or person entitled to such payment shall not thereafter maintain
any claim, action or proceeding with respect to such amounts.

3011. Whenever any warrant is drawn on an account in the Disability
fund by the Controller, and the same remains unclaimed after one
year, the amount thereof shall revert to that account in the
Disability Fund from which the amount was payable.

3012. (a) Notwithstanding Section 13340 of the Government Code, all
money in the Disability Fund is continuously appropriated for the
purpose of providing disability benefits pursuant to this part,
including the payment of refunds, credits, or judgments, and interest
thereon, the payment of disability benefits to all eligible persons
not covered exclusively by an approved voluntary plan, and the
payment of the expenses of administration of this part and Section
17061 of the Revenue and Taxation Code by the department and the
Franchise Tax Board. "Eligible persons" as used in this section,
means those individuals who are covered by the Disability Fund at the
time his or her disability benefit period commences, or whose
employment has terminated or who is in noncovered employment at the
time his or her disability benefit period commences, and who is
otherwise eligible for benefits under this part.
(b) For the purpose of keeping a record of the payments to and the
disbursements from the Disability Fund with respect to the payment
of benefits to persons whose employment has terminated or who are in
noncovered employment at the time his or her disability period
commences, the director shall maintain the Unemployed Disabled
Account in the Disability Fund. This account shall be credited with
12 percent of the product obtained by multiplying the rate of worker
contributions as determined in Section 984, by the amount of the
taxable wages paid to employees covered by voluntary plans for
disability benefits for each calendar year. This account shall also
be credited with an amount equal to 12 percent of the product
obtained by multiplying the rate of worker contributions, as
determined in Section 984, by the amount of the taxable wages paid to
employees covered by the Disability Fund for each calendar year.
This account shall be charged each calendar year with disbursements
from the Disability Fund for the payment of benefits and the
additional administrative costs of the payment of benefits to persons
whose employment has terminated or who are in noncovered employment
at the time his or her disability benefit period commences.

3013. A sum to be determined by the Director of Finance, of amounts
deposited in the disability fund, may be used for the necessary
expenses of administration of this part and Sections 17061 and
17061.5 of the Revenue and Taxation Code in addition to any other
fund or money available for such purpose. Such sum shall be available
to the department for the payment of the expenses of administration
of this part and Sections 17061 and 17061.5 of the Revenue and
Taxation Code by the department and the Franchise Tax Board only to
the extent that money received from the United States or any of its
agencies is not available for such purposes.

3014. Withdrawals by the director from the Disability Fund for the
payment of refunds, credits, or judgments, and disability benefits
are exempted from the operation of Section 925.6 of the Government
Code.

3015. The department shall have priority to occupy any space in the
buildings and facilities financed by the Disability Fund, which
comprise any space in the department's central office building and
related parking facilities in Sacramento and the department's branch
office in Los Angeles, at rental rates not exceeding the cost of
providing maintenance and other services.