BILL NUMBER: AB 2149	CHAPTERED  09/26/02

	CHAPTER  878
	FILED WITH SECRETARY OF STATE  SEPTEMBER 26, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2002
	PASSED THE SENATE  AUGUST 12, 2002
	PASSED THE ASSEMBLY  MAY 23, 2002
	AMENDED IN ASSEMBLY  APRIL 29, 2002

INTRODUCED BY   Assembly Member Chu
   (Coauthors:  Assembly Members Aroner, Koretz, Longville, and
Strom-Martin)

                        FEBRUARY 20, 2002

   An act to add Sections 710.7 and 710.8 to the Unemployment
Insurance Code, relating to unemployment insurance, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2149, Chu.  Unemployment insurance:  disability benefits.
   Existing law provides for the partial compensation, in a specified
amount, for the wage loss suffered by eligible individuals
unemployed because of sickness or injury, from the Unemployment
Compensation Disability Fund, a special fund in the State Treasury
that is continuously appropriated for these purposes.  The fund
consists, among other things, of contributions paid by workers
subject to these provisions, at specified rates.
   This bill would permit the state and the Trustees of the
California State University to elect to become employers whose
employees are eligible for payment of disability benefits from the
Unemployment Compensation Disability Fund.
   By increasing the pool of potential recipients of payments from,
and potential contributors into, a continuously appropriated fund,
this bill would result in an appropriation.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 710.7 is added to the Unemployment Insurance
Code, to read:
   710.7.  (a) The State of California, as defined as an employer in
Section 3513 of the Government Code, may elect to become an employer
subject to Part 2 (commencing with Section 2601) with respect to all
employees who are part of an appropriate unit established pursuant to
Chapter 10 (commencing with Section 3512) of Division 4 of Title 1
of the Government Code, provided the election is the result of a
negotiated agreement between the State of California and the
recognized employee organization, as those terms are defined in
Section 3513 of the Government Code.  The State of California may
elect to provide coverage to its management and confidential
employees and to its employees who are not part of an appropriate
unit, provided that the election is not contingent upon coverage of
other employees of the State of California.
   (b) Upon filing of the election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees including those with civil
service or tenure positions who are subject to an election under this
section shall constitute employment subject to that part.
   (c) Sections 986 and 2903 apply to an employer making an election
pursuant to this section.
  SEC. 2.  Section 710.8 is added to the Unemployment Insurance Code,
to read:
   710.8.  (a) The Trustees of the California State University, as
defined as an employer in Section 3562 of the Government Code, may
elect to become an employer subject to Part 2 (commencing with
Section 2601) with respect to all employees who are part of an
appropriate unit established pursuant to Chapter 12 (commencing with
Section 3560) of Division 4 of Title 1 of the Government Code,
provided the election is the result of a negotiated agreement between
the Trustees of the California State University and the recognized
employee organization, as those terms are defined in Section 3562 of
the Government Code.  The California State University Trustees may
elect to provide coverage to its management and confidential
employees and to its employees who are not a part of an appropriate
unit, provided that the election is not contingent upon coverage of
other employees of the California State University Trustees.
   (b) Upon filing of the election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other employers,
and services performed by its employees, including those with civil
service or tenure positions, who are subject to an election under
this section shall constitute employment subject to that part.
   (c) Sections 986 and 2903 apply to an employer making an election
pursuant to this section.