CALIFORNIA STATUTES AND CODES
SECTIONS 3251-3272
UNEMPLOYMENT INSURANCE CODE
SECTION 3251-3272
3251. An employer, a majority of the employees employed in this
state of an employer, or both, may apply to the Director of
Employment Development for approval of a voluntary plan for the
payment of disability benefits to the employees so electing. The
benefits payable as indemnification for loss of wages under any
voluntary plan shall be separately stated and designated in the plan
"unemployment compensation disability benefits" separate and distinct
from other benefits, if any.
3252. (a) Except as provided by subdivision (b) of this section,
neither an employee nor his or her employer shall be liable for the
worker contributions required under this division with respect to
wages paid by the employer while the employee is covered by an
approved voluntary plan.
(b) Each voluntary plan shall pay to the department for the
Disability Fund 14 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
voluntary plan for disability benefit coverage for each calendar
year. Such payments shall not constitute a part of the voluntary plan
premium for purposes of any tax under any provision of law. Payments
under this section shall be deposited in the Disability Fund.
(c) The payments made under subdivision (b) of this section in
excess of the credit to the unemployed disabled account made pursuant
to Section 3012 shall reimburse the Disability Fund for the amounts
paid for administrative costs arising out of voluntary plans as
determined pursuant to Section 3269, and the aggregate amount paid as
refunds and credits made to employees applicable to voluntary plans
pursuant to Section 1176 as determined pursuant to Section 3266.
(d) Each voluntary plan shall file with the director within the
time required for payments under subdivision (e) of this section, a
return containing the employer's business name, address, and account
number, and such other information as the director shall prescribe.
The director shall prescribe the form for the return.
(e) Payments required under this section are due and payable on
the first day of the calendar month following the close of each
calendar quarter and shall become delinquent if not paid on or before
the last day of such month.
(f) The provisions of Article 8 (commencing with Section 1126) of
Chapter 4 of Part 1 of this division with respect to the assessment
of contributions and the provisions of Chapter 7 (commencing with
Section 1701) of Part 1 of this division with respect to the
collection of contributions shall apply to payments required by this
section.
(g) Whenever the director believes that a change in the percentage
rate of payment specified in subdivision (b) may be necessary, he or
she shall inform the Governor and the Legislature thereof and make
recommendations accordingly.
3253. Except as provided in this part, an employee covered by an
approved voluntary plan at the commencement of a disability benefit
period shall not be entitled to benefits from the Disability Fund.
Benefits payable to that employee shall be the liability of the
approved voluntary plan under which the employee was covered at the
commencement of the disability benefit period, regardless of any
subsequent disabling condition which may occur during that disability
benefit period. The Director of Employment Development shall
prescribe authorized regulations to allow benefits to individuals
simultaneously covered by one or more approved voluntary plans and
the Disability Fund.
3254. The Director of Employment Development shall approve any
voluntary plan, except one filed pursuant to Section 3255, as to
which he or she finds that there is at least one employee in
employment and all of the following exist:
(a) The rights afforded to the covered employees are greater than
those provided for in Chapter 2 (commencing with Section 2625),
including those provided for in Chapter 7 (commencing with Section
3300).
(b) The plan has been made available to all of the employees of
the employer employed in this state or to all employees at any one
distinct, separate establishment maintained by the employer in this
state. "Employees" as used in this subdivision includes those
individuals in partial or other forms of short-time employment and
employees not in employment as the Director of Employment Development
shall prescribe by authorized regulations.
(c) A majority of the employees of the employer employed in this
state or a majority of the employees employed at any one distinct,
separate establishment maintained by the employer in this state have
consented to the plan.
(d) If the plan provides for insurance the form of the insurance
policies to be issued have been approved by the Insurance
Commissioner and are to be issued by an admitted disability insurer.
(e) The employer has consented to the plan and has agreed to make
the payroll deductions required, if any, and transmit the proceeds to
the plan insurer, if any.
(f) The plan provides for the inclusion of future employees.
(g) The plan will be in effect for a period of not less than one
year and, thereafter, continuously unless the Director of Employment
Development finds that the employer or a majority of its employees
employed in this state covered by the plan have given notice of
withdrawal from the plan. The notice shall be filed in writing with
the Director of Employment Development and shall be effective only on
the anniversary of the effective date of the plan next following the
filing of the notice, but in any event not less than 30 days from
the time of the filing of the notice; except that the plan may be
withdrawn on the operative date of any law increasing the benefit
amounts provided by Sections 2653 and 2655 or the operative date of
any change in the rate of worker contributions as determined by
Section 984, if notice of the withdrawal from the plan is transmitted
to the Director of Employment Development not less than 30 days
prior to the operative date of that law or change. If the plan is not
withdrawn on the 30 days' notice because of the enactment of a law
increasing benefits or because of a change in the rate of worker
contributions as determined by Section 984, the plan shall be amended
to conform to that increase or change on the operative date of the
increase or change.
(h) The amount of deductions from the wages of an employee in
effect for any plan shall not be increased on other than an
anniversary of the effective date of the plan except to the extent
that any increase in the deductions from the wages of an employee
allowed by Section 3260 permits that amount to exceed the amount of
deductions in effect.
(i) The approval of the plan or plans will not result in a
substantial selection of risks adverse to the Disability Fund.
3254.1. (a) For the purposes of this section,
"small-business-third-party administrator" (hereafter SBTPA), means
an applicant that the director finds meets all of the following
criteria at the time of application:
(1) The SBTPA administers voluntary disability plans on behalf of
its clients pursuant to a written agreement in a form and manner
approved by the director.
(2) The SBTPA has at least 1,000 California domiciled clients, 80
percent of whom have fewer than 20 employees.
(3) The SBTPA processes payroll for its California domiciled
clients.
(4) The SBTPA offers workers' compensation insurance to its
California domiciled clients through an affiliated California
domiciled insurance company.
(b) Except as modified by this section, "voluntary plan" shall be
defined as, and shall be subject to the same provisions as, a
"voluntary plan," as set forth in Chapter 6 (commencing with Section
3251) of Part 2 of Division 1.
(c) The director may approve a single voluntary plan for all of an
SBTPA's clients and their employees where all of the following
criteria are met:
(1) The plan is administered by the SBTPA.
(2) The plan establishes a master trust account that is
administered by the SBTPA, but requires each individual employer that
is a client of the SBTPA to have a subtrust account that reflects
that client's employees' specific plan contributions and is not
commingled with any other funds. The master trust account shall be
held in a federally insured bank.
(3) (A) If a voluntary plan does not provide for the assumption by
an admitted disability insurer of the liability of the employer to
pay the benefits afforded by the plan, the director shall not approve
it unless the employer meets the financial security requirements of
Section 3258.
(B) In addition to the security required by subparagraph (A), the
director may require additional security from the SBTPA, consisting
of the same types of financial instruments, and deposited in the same
manner as in Section 3258, in an amount determined by the director
to be adequate to pay disability claims of the SBTPA's clients'
employees should the client's subaccount or the financial security
provided in subparagraph (A) be inadequate.
(4) (A) The single voluntary plan will be in effect for a period
of not less than one year and, thereafter, continuously, unless the
Director of Employment Development finds that the SBTPA has given
notice of withdrawal of the plan. The notice filed by the SBTPA shall
be filed in writing with the Director of Employment Development and
shall be effective on the anniversary of the effective date of the
plan next following the filing of the notice, but in any event shall
not be less than 30 days from the time of the filing of the notice;
except that the plan may be withdrawn on the operative date of any
law increasing the benefit amounts provided by Sections 2563 and 2655
or the operative date of any change in the rate of worker
contributions as determined by Section 984, if notice of the
withdrawal from the plan is transmitted to the Director of Employment
Development not less than 30 days prior to the operative date of
that law or change. If the plan is not withdrawn on the 30 days'
notice because of the enactment of a law increasing benefits or
because of a change in the rate of worker contributions as determined
by Section 984, the plan shall be amended to conform to that
increase or change on the operative date of the increase or change.
(B) Any individual employer who is a client of the SBTPA, or a
majority of that client's employees employed in this state covered by
the plan, may also terminate their participation in the plan by
giving written notice of withdrawal from the plan to the SBTPA and to
the Director of Employment Development not less than 30 days prior
to the date of withdrawal.
(5) The rights afforded to the covered employees are greater than
those provided for in Chapter 2 (commencing with Section 2625),
including those provided for in Chapter 7 (commencing with Section
3300).
(6) The plan has been made available to all of the employees of
the employer employed in this state or to all employees at any one
distinct, separate establishment maintained by the employer in this
state. "Employees" as used in this paragraph includes those
individuals in partial or other forms of short-time employment and
employees not in employment as the director shall prescribe by
authorized regulations.
(7) A majority of the employees of the client employed in this
state or a majority of the employees employed at any one distinct,
separate establishment maintained by the client in this state have
consented to the plan.
(8) If the plan provides for insurance, the form of the insurance
policies to be issued has been approved by the Insurance Commissioner
and is to be issued by an admitted disability insurer.
(9) The client has consented to the plan and has authorized the
SBTPA to make the payroll deductions required, if any, and deposit
the proceeds in each client's subtrust account.
(10) The plan provides for the inclusion of future employees.
(11) The amount of deductions from the wages of an employee of any
client in effect for the plan shall not be increased on other than
an anniversary of the effective date of the plan except to the extent
that any increase in the deductions from the wages of an employee
allowed by Section 3260 permits that amount to exceed the amount of
deductions in effect.
(12) The approval of the plan or plans will not result in a
substantial selection of risks adverse to the Disability Fund.
(d) The department may adopt application forms and procedures as
deemed necessary to ensure compliance with this section, and shall
adopt any application forms and procedures within 60 days of the
enactment of this section.
(e) It is the intent of the Legislature in enacting paragraph (3)
of subdivision (c) that, in the event of the insolvency of an
employer-client of the SBTPA, or of the SBTPA, the disability claims
against the subaccount of any employer-client arising prior to the
date of the insolvency shall be satisfied by first accessing the
security of the SBTPA, as described in subparagraph (B) of paragraph
(3) of subdivision (c), rather than satisfying the claims from the
Disability Fund.
(f) This section shall remain in effect through December 31, 2014,
and as of that date is repealed.
3254.5. A voluntary plan in force and effect at the time a
successor employing unit acquires the organization, trade, or
business, or substantially all the assets thereof, or a distinct and
severable portion of the organization, trade, or business, and
continues its operation without substantial reduction of personnel
resulting from the acquisition, shall not withdraw without specific
request for withdrawal thereof. The successor employing unit and the
insurer shall be deemed to have consented to the provisions of the
plan unless written request for withdrawal, effective as of the date
of acquisition, is transmitted to the Director of Employment
Development, by the employer or the insurer, within 30 days after the
acquisition date, or within 30 days after notification from the
Director of Employment Development that the plan is to continue,
whichever is later. Unless the plan is withdrawn as of the date of
acquisition by the successor employer or the insurer, a written
request for withdrawal shall be effective only on the anniversary of
the effective date of the plan next occurring on or after the date of
acquisition, except that the plan may be withdrawn on the operative
date of any law increasing the benefit amounts provided by Sections
2653 and 2655 or the operative date of any change in the rate of
worker contributions as determined by Section 984, if notice of the
withdrawal of the plan is transmitted to the Director of Employment
Development not less than 30 days prior to the operative date of law
or change. If the plan is not withdrawn on 30 days' notice because of
the enactment of a law increasing benefits or because of a change in
the rate of worker contributions as determined by Section 984, the
plan shall be amended to conform to the increase or change on the
operative date of the increase or change. Promptly, upon notice of
change in ownership, any insurer of a plan shall prepare and issue
policy forms and amendments as required, unless the plan is
withdrawn. Nothing contained in this section shall prevent future
withdrawal of any plans on an anniversary of the effective date of
the plan upon 30 days' notice, except that the plan may be withdrawn
on the operative date of any law increasing the benefit amounts
provided by Sections 2653 and 2655 or the operative date of any
change in the rate of worker contributions as determined by Section
984, if notice of the withdrawal of the plan is transmitted to the
Director of Employment Development not less than 30 days prior to the
operative date of the law or change. If the plan is not withdrawn on
30 days' notice because of the enactment of a law increasing
benefits or because of a change in the rate of worker contributions
as determined by Section 984, the plan shall be amended to conform to
the increase or change on the operative date of the increase or
change.
3255. When workers are engaged in an employment that normally
involves working for several employers in the same industry
interchangeably, and several employers or some of them cooperate to
establish a plan for the payment of wages at a central place or
places, and have appointed an agent under Section 1096, that agent,
or a majority of workers regularly paid through a central place or
places, or both, may apply to the Director of Employment Development
for approval of a voluntary plan for the payment of disability
benefits applicable to all employees whose wages are paid at one or
more central place or places. The Director of Employment Development
shall approve any voluntary plan under this section as to which he or
she finds that all of the following exist:
(a) The rights afforded to the covered employees are greater than
those provided for in Chapter 2 (commencing with Section 2625) of
this part, and are separately stated and designated "unemployment
compensation disability benefits" separate and distinct from other
benefits, if any.
(b) The plan applies to all employees whose wages are paid at a
central place or places with respect to all employment for which
wages are paid at central place or places.
(c) Seventy-five percent of the workers regularly paid at the
central place or places have consented to the plan prior to the
filing of the initial application for approval.
(d) If the plan provides for insurance the form of the insurance
policies to be issued have been approved by the Insurance
Commissioner and are to be issued by an admitted disability insurer.
(e) All employers paying wages through the central place or places
have agreed to participate in the plan and the agent appointed under
Section 1096 has agreed to make the payroll deductions required, if
any, and transmit the proceeds to the plan insurer, if any.
(f) The plan provides for the inclusion of all future employees
paid at the central place or places.
(g) The plan is to be in effect for a period of not less than one
year and, thereafter, continuously unless the Director of Employment
Development finds that the agent or a majority of the employees
regularly paid at the central place or places has given written
notice of withdrawal from the plan. The notice shall be filed in
writing with the Director of Employment Development at least 30 days
before it is to become effective and, upon the filing, will be
effective only as to wages paid after the beginning of the calendar
quarter next occurring on or after the anniversary of the effective
date of the plan; except that the plan may be withdrawn on the
operative date of any law increasing the benefit amounts provided by
Sections 2653 and 2655 or the operative date of any change in the
rate of worker contributions as determined by Section 984, if notice
of the withdrawal from the plan is transmitted to the Director of
Employment Development not less than 30 days prior to the operative
date of that law or change. If the plan is not withdrawn on 30 days'
notice because of the enactment of a law increasing benefits or
because of a change in the rate of worker contributions as determined
by Section 984, the plan shall be amended to conform to that
increase or change on the operative date of the increase or change.
(h) The amount of deductions from the wages of an employee in
effect for any plan shall not be increased on other than an
anniversary of the effective date of the plan except to the extent
that any increase in the deductions from the wages of an employee
allowed by Section 3260 permits that amount to exceed the amount of
deductions in effect.
(i) The approval of the plan or plans will not result in a
substantial selection of risks adverse to the Disability Fund.
3256. During the effective period of a plan approved under Section
3255 the employer, or his agent appointed under Section 1096, may
make the pay roll deductions provided for by the plan, with respect
to all employment covered by the plan.
3257. Whenever eighty-five percent (85%) of the employees to whom a
plan is available have consented to the plan, the employer, or
seventy-five percent (75%) of the employees who have consented to the
plan, or both, may elect to make the plan applicable to all
employees to whom it is available, except those who reject the plan.
In such case, there shall be filed with the Director of Employment
Development a notice stating that the requisite percentage of
employees has consented to the plan and fixing the date upon which
the plan will become applicable to all employees to whom it is
available. At least 10 days before the date fixed in the notice, a
notice shall be posted and circulated in a manner reasonably
calculated to bring it to the attention of all employees to whom the
plan is available but who have not consented thereto. The notice to
such employees shall set forth the date the plan is to become
applicable and the manner in which an employee may reject it.
From the time fixed in the notice filed with the Director of
Employment Development all employees to whom the plan is available
shall be deemed to have elected to be covered by the plan, except
those who advise the employer in writing of their rejection within
the time fixed.
Every person employed after the date the plan becomes applicable
and to whom the plan is available, shall be deemed to have elected to
be covered by the plan from the time of employment unless he rejects
the plan prior to or at the time of employment. Each employee at the
time of employment shall be given a written notice specifying his
right to consent to or to reject such plan and a written statement
setting forth the essential features of the plan.
Any employee covered by a plan may withdraw from the plan as of
the beginning of any calendar quarter upon giving reasonable notice
in writing directed to the employer.
The form of the statement and the forms of the notices required
under this Section shall be approved by the Director of Employment
Development.
3258. If a voluntary plan does not provide for the assumption by an
admitted disability insurer of the liability of the employer to pay
the benefits afforded by the plan, the director shall not approve it
unless the employer files with the director the bond of an admitted
surety insurer conditioned on the payment by the employer of its
obligations under the plan, deposits with the director securities
approved by the director to secure the payment of the obligations, or
deposits with the director an irrevocable letter of credit. The
penal sum of the bond or the amount of the deposit of securities or
letter of credit shall be determined by the director and shall be not
less than the product obtained by multiplying the rate of worker
contributions in the ensuing year, as determined in Section 984, by
0.5 of the estimated taxable wages prescribed by Section 985 to be
paid to the employees for the ensuing year. Upon approval, the bond,
money, or securities shall upon the director's written order be
deposited with the Treasurer for the purpose specified in this
section. The Treasurer shall give a receipt for the deposits and the
state shall be responsible for the custody and safe return of any
securities so deposited.
3259. Whenever an approved voluntary plan is insured by an admitted
disability insurer, the insurer shall be substituted for the
employer with respect to any assessments under this part which relate
to the portion of the voluntary plan insured by such insurer.
3260. An employer may, but need not, assume all or part of the cost
of the plan, and may deduct from the wages of an employee covered by
the plan, for the purpose of providing the disability benefits
specified in this part, an amount not in excess of that which would
be required by Sections 984 and 985 if the employee were not covered
by the plan.
3260.5. (a) All deductions from the wages of an employee remaining
in the possession of the employer upon its voluntary withdrawal of
the plan as a result of plan contributions being in excess of plan
costs, that are not disposed of in conformity with authorized
regulations of the Director of Employment Development, shall be
remitted to the department and deposited in the Disability Fund. If
an employer fails to remit any deductions to the Disability Fund, the
Director of Employment Development shall assess the amount thereof
against the employer.
(b) The provisions of Article 8 (commencing with Section 1126) of
Chapter 4 of Part 1, with respect to the assessment of contributions,
and the provisions of Chapter 7 (commencing with Section 1701) of
Part 1, with respect to the collection of contributions, shall apply
to assessments provided by this section, except that interest may not
accrue until 30 days after issuance of the notice of assessment.
(c) With respect to individuals covered by a voluntary plan on
January 1 of any calendar year for which the limitation on wages
under Section 985 is increased or the tax rate under Section 984 is
increased, the amount of the deduction on or after that date may be
increased to apply to not more than the maximum limitation on taxable
wages or to not more than the maximum tax rate, as applicable,
without any further consent of the individual or approval of the
Director of Employment Development, but only if such increase in the
amount of the deductions is made effective as of January 1 of the
affected calendar year.
3261. All employee contributions and income arising therefrom
received or retained by an employer under an approved voluntary plan
are trust funds that are not considered to be part of an employer's
assets. An employer shall either maintain a separate, specifically
identifiable account for voluntary plan trust funds in a financial
institution, or an employer may transmit voluntary plan trust funds,
including any earned interest or income, directly to the admitted
disability insurer. If an employer, with prior approval from the
Director of Employment Development, invests voluntary plan trust
funds in securities purchased through a commercial bank under Article
4 of Chapter 10 of Division 1 of the Financial Code, the securities
account shall be separately identifiable from any other securities
accounts maintained by the employer. In the event of commingling of
voluntary plan trust funds, or the bankruptcy or insolvency of the
employer, or the appointment of a receiver for the business of the
employer, those voluntary plan trust funds are entitled to the same
preference as are the claims of the state under Sections 1701 and
1702.
3262. (a) The Director of Employment Development may terminate any
voluntary plan if the director finds that there is danger that the
benefits accrued or to accrue will not be paid, that the security for
the payment is insufficient, or for other good cause shown. The
Director of Employment Development shall give notice of his or her
intention to terminate a plan to the employer, employee group, and
insurer. The notice shall state the effective date and the reason for
the withdrawal. The Director of Employment Development may change or
stay the effective date of the termination.
(b) Notwithstanding Section 3260.5, on the effective date of the
termination of a plan by the Director of Employment Development, all
moneys in the plan, including moneys paid by the employer, moneys
paid by the employee, moneys owed to the voluntary plan by the
employer but not yet paid to the plan, and any interest accrued on
all these moneys, shall be remitted to the department and deposited
into the Disability Fund.
(c) If an employer fails to remit all moneys owed to the
Disability Fund after termination of the plan, the Director of
Employment Development shall make an assessment against the employer
equal to the amount of the moneys owed. The Director of Employment
Development shall also make an assessment against the employer for
all benefits paid from the Disability Fund after the termination of
the plan, less any moneys received from the employer after the
termination of the plan.
(d) The provisions of Article 8 (commencing with Section 1126) of
Chapter 4 of Part 1, with respect to the assessment of moneys, and
the provisions of Chapter 7 (commencing with Section 1701) of Part 1,
with respect to the collection of moneys owed, shall apply to
assessments authorized under this section, except that interest may
not accrue until 30 days after issuance of the notice of assessment.
(e) The employer, employee group or insurer may, within 10 days
from mailing or personal service of the notice, appeal to the Appeals
Board. The 10-day period may be extended for good cause. The Appeals
Board may prescribe by regulation the time, manner, method and
procedure through which it may determine appeals under this section.
(f) The payment of benefits from the Disability Fund and the
transfer of moneys in the voluntary plan may not be delayed during an
employer's appeal of the termination of a voluntary plan.
3263. (a) An employee is no longer covered by an approved voluntary
plan if a disability arose after the employment relationship with
the voluntary plan employer ends, or if the Director of Employment
Development terminates a voluntary plan in accordance with Section
3262.
(b) An employee who has ceased to be covered by an approved
voluntary plan shall, if otherwise eligible, thereupon immediately
become entitled to benefits from the Disability Fund to the same
extent as though there had been no exemption from contributions as
provided in this chapter.
3264. If any employer or insurer wholly or partially denies
liability upon the claim of an employee for disability benefits under
an approved plan, the employee may appeal the denial in the manner
provided by law and authorized regulations for an appeal on a claim
for benefits payable out of the Disability Fund. All decisions of the
Appeals Board denying benefits under this section shall be subject
to review by the courts of this State by the exclusive remedy of
filing a petition for writ of mandate. No such petition may be filed,
however, until the employee exhausts the administrative remedies
provided for in this division, nor may any other action be commenced
by an employee upon a denial of his claim by his employer or insurer,
as the case may be, other than that prescribed herein.
3265. (a) If, on appeal, it is decided that an employee is entitled
to receive disability benefits under an approved voluntary plan and
the employer or insurer fails to pay the same within 15 days after
notice of a decision by an administrative law judge or the appeals
board, the director shall pay such benefits and shall assess the
amount thereof against the employer or the insurer, and the
provisions of Article 8 (commencing with Section 1126) of Chapter 4
of Part 1 of this division with respect to the assessment of
contributions and the provisions of Chapter 7 (commencing with
Section 1701) of Part 1 of this division with respect to the
collection of contributions shall apply to the recovery of such
benefit payments. Amounts so collected shall be deposited in the
Disability Fund.
(b) If an approved voluntary plan is not terminated because of the
enactment of any law increasing the benefit amounts provided by
Sections 2653 and 2655, and the employer or insurer fails to pay such
increase under the plan, the director shall pay such benefits to an
employee, if otherwise eligible, and shall assess the amount thereof
against the employer or the insurer and the provisions of Article 8
(commencing with Section 1126) of Chapter 4 of Part 1 of this
division with respect to the assessment of contributions and the
provisions of Chapter 7 (commencing with Section 1701) of Part 1 of
this division with respect to the collection of contributions shall
apply to the recovery of such benefit payments. Amounts so collected
shall be deposited in the Disability Fund.
3266. The director shall in accordance with his or her authorized
regulations determine the portion of the aggregate amount of refunds
and credits to employees made under Section 1176 during any calendar
year which is applicable to voluntary plans for which deductions were
made under Section 3260, such determination to be based upon the
relation during the preceding calendar year of the amount of wages
subject to contributions to the Disability Fund to the amount of
wages exempt from contributions to the Disability Fund under Section
3252.
3267. Employers whose employees are participating in an approved
voluntary plan and any insurer of an approved plan shall furnish such
reports and information and make available to the department such
records as the director may by authorized regulations require for the
proper administration of this part.
3268. The Director of Employment Development shall, in accordance
with his authorized regulations, promptly furnish to employers,
employees, or insurers, such information as may be required for the
proper administration of an approved voluntary plan.
3269. The director shall in accordance with his or her authorized
regulations, determine each fiscal year the total amount expended for
added administrative work arising out of voluntary plans.
3270. The provisions of subdivision (i) of Section 3254 and
subdivision (i) of Section 3255, dealing with substantial selection
of risks adverse to the Disability Fund, shall be operative as of
January 1, 1962.
3271. (a) The director shall approve any amendment to a voluntary
plan adjusting the provisions thereof as to periods after the
effective date of the amendment as to which he or she finds that the
plan, as amended, will conform to the standards set forth in Section
3254, and that any of the following exist:
(1) A majority of the employees covered by the plan have consented
in writing to the amendment.
(2) All of the employees covered by the plan who are adversely
affected by the amendment have consented in writing to the amendment.
(3) The insurer of such plan, if any, has certified to the
director that notice of the amendment either separately or as a part
of a new certificate or statement of coverage, has, at least 10 days
prior to the effective date of the proposed amendment, been delivered
to the employer for distribution to his or her employees within 10
days thereafter and has further certified that such notice
specifically included notification to the employees covered by the
plan of their right to withdraw from the plan.
(b) Nothing contained in this section is intended to deny or limit
the right of the director to make regulations supplementary thereto,
nor on the general subject of requirements for amendments of
voluntary plans.
3272. The provisions of Article 9 (commencing with Section 1176) of
Chapter 4 of Part 1 of this division shall apply to amounts
collected under Sections 3252, 3260, and 3265, to amounts remitted to
the Disability Fund under Section 3260, and to amounts paid to an
employee by an employer or insurer after a final decision on appeal
under Section 3264 to an administrative law judge or the appeals
board that the employee is entitled to disability benefits.