BILL NUMBER: SB 1211	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 22, 2010

INTRODUCED BY   Senators Romero and Dutton
    (   Coauthor:   Assembly Member  
Hagman   ) 

                        FEBRUARY 18, 2010

   An act to amend Section 634.5 of the Unemployment Insurance Code,
relating to unemployment insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1211, as amended, Romero. Unemployment insurance: benefits:
eligibility: elected officials.
   Existing law requires every employer, with specified exceptions,
to pay contributions to the Unemployment Fund at specified rates, for
the purpose of funding unemployment insurance benefits for eligible
unemployed workers. Existing law defines "employment" for those
purposes and, with respect to certain public entities, exempts from
that definition certain services performed by an individual in the
exercise of his or her duties as an elected official.
   This bill would specify that  a state or local government
  an  elected official is prohibited from receiving
unemployment compensation benefits under those provisions based on
his or her income derived from employment as an elected official 
and would deem an elected official to have constructive knowledge of
this provision, as specified  .  The bill would require the
Employment Development Department, by July 1, 2011, to adopt
regulations to clarify that the above-described provision governing
eligibility for unemployment compensation excludes elected officials
from coverage under the unemployment insurance compensation system
for purposes of benefit eligibility. T   he bill would also
require the department to revise language in a specified California
employment guide with regard to the exclusion of elected officials
from unemployment insurance coverage and benefit eligibility, as
specified. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

  SECTION 1.  Section 634.5 of the Unemployment Insurance Code is
amended to read:
   634.5.  Notwithstanding any other provision of law, no provision
excluding service from "employment" shall apply to any entity defined
by Section 605 or to any nonprofit organization described by Section
608, except as provided by this section. With respect to any entity
defined by Section 605 or any nonprofit organization described by
Section 608, "employment" does not include service excluded under
Sections 629, 631, 635, and 639 to 648, inclusive, or service
performed in any of the following:
   (a) In the employ of either of the following:
   (1) A church or convention or association of churches.
   (2) An organization which is operated primarily for religious
purposes and which is operated, supervised, controlled, or
principally supported by a church or convention or association of
churches.
   (b) By a duly ordained, commissioned, or licensed minister of a
church in the exercise of his or her ministry or by a member of a
religious order in the exercise of duties required by the order.
   (c) In the employ of any entity defined by Section 605, if the
service is performed by an individual in the exercise of his or her
duties as any of the following:
   (1) An elected official.  A state or local government
  An  elected official is prohibited from receiving
unemployment compensation benefits under this chapter based on his
or her  ,  income derived from employment as an
elected official.  An elected official is deemed to have
constructive knowledge of this section, establishing a prima facie
case of fraud, if that elected official collects unemployment
compensation benefits pursuant to this division. 
   (2) A member of a legislative body or a member of the judiciary of
a state or a political subdivision of a state.
   (3) A member of the tribal council of an Indian tribe as described
by subsection (u) of Section 3306 of Title 26 of the United States
Code.
   (4) A member of a State National Guard or Air National Guard.
   (5) An employee serving on a temporary basis in case of fire,
storm, snow, earthquake, flood, or other similar emergency.
   (6) An employee in a position that, under or pursuant to state or
tribal law, is designated as either of the following:
   (A) A major nontenured policymaking or advisory position.
   (B) A policymaking or advisory position, the performance of the
duties of which ordinarily does not require more than eight hours per
week.
   (7) (A) Except as otherwise provided in subparagraph (B), an
election official or election worker if the amount of remuneration
reasonably expected to be received by the individual during the
calendar year for services as an election official or election worker
is less than one thousand dollars ($1,000).
   (B) This paragraph shall not take effect unless and until the
service is excluded from service to which paragraph (1) of
subdivision (a) of Section 3309 of Title 26 of the United States Code
applies by reason of exemption under subdivision (b) of Section 3309
of that act.
   (d)  By an individual receiving rehabilitation or remunerative
work in a facility conducted for the purpose of carrying out a
program of either:
   (1) Rehabilitation for individuals whose earning capacity is
impaired by age or physical or mental deficiency or injury.
   (2) Providing remunerative work for individuals who because of
their impaired physical or mental capacity cannot be readily absorbed
in the competitive labor market.
   (e) By an individual receiving work relief or work training as
part of an unemployment work relief or work training program assisted
or financed in whole or in part by any of the following:
   (1) A federal agency.
   (2) An agency of a state or a political subdivision thereof.
   (3) An Indian tribe, as described by subsection (u) of Section
3306 of Title 26 of the United States Code.
   (f) By a ward or an inmate of a custodial or penal institution
pursuant to Article 1 (commencing with Section 2700), Article 4
(commencing with Section 2760), and Article 5 (commencing with
Section 2780) of Chapter 5 of, and Article 1 (commencing with Section
2800) of Chapter 6 of, Title 1 of Part 3 of the Penal Code, Section
4649 and Chapter 1 (commencing with Section 4951) of Part 4 of
Division 4 of the Public Resources Code, and Sections 883, 884, and
1768 of the Welfare and Institutions Code.
   (g) By an individual under the age of 18 years in the delivery or
distribution of newspapers or shopping news, not including delivery
or distribution to any point for subsequent delivery or distribution.

   (h) By an individual in the sale of newspapers or magazines to
ultimate consumers, under an arrangement that includes the following
conditions:
   (1) The newspapers or magazines are to be sold by the individual
at a fixed price.
   (2) The individual's compensation is based on retention of the
excess of the price over the amount at which the newspapers or
magazines are charged to the individual, whether or not he or she is
guaranteed a minimum amount of compensation for the service or is
entitled to be credited with the unsold newspapers or magazines that
he or she returns.
   (i) (1) Except as otherwise provided in paragraph (2), as a
substitute employee whose employment does not increase the size of
the employer's normal workforce, whose employment is required by law,
and whose employment as a substitute employee does not occur on more
than 60 days during the base period.
   (2) This subdivision shall not take effect unless and until the
United States Secretary of Labor, or his or her designee, finds that
this subdivision is in conformity with federal requirements.
   (j) As a participant in a national service program carried out
using assistance provided under Section 12571 of Title 42 of the
United States Code.
   SEC. 2.    Not later than July 1, 2011, the
Employment Development Department shall adopt regulations to clarify
that paragraph (1) of subdivision (c) of Section 634.5 of the
Unemployment Insurance Code excludes elected officials from coverage
under the unemployment insurance compensation system for purposes of
benefit eligibility. The department shall also revise current
language in the California Employment Guide to state that an elected
official is not eligible to collect unemployment benefits based on
income earned from his or her service as an elected official.