People v. Belnick

184 Cal. App. 3d 1449, 229 Cal. Rptr. 414, 1986 Cal. App. LEXIS 1978
CourtCalifornia Court of Appeal
DecidedAugust 28, 1986
DocketNo. D003328
StatusPublished

This text of 184 Cal. App. 3d 1449 (People v. Belnick) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Belnick, 184 Cal. App. 3d 1449, 229 Cal. Rptr. 414, 1986 Cal. App. LEXIS 1978 (Cal. Ct. App. 1986).

Opinion

Opinion

BUTLER, J.

The People charged Reuben Belnick with nine counts of reporting or registering of a fictitious employer, employee and of wages in [1451]*1451order to obtain unemployment benefits in violation of section 2114 of the Unemployment Insurance Code1 and three counts of forgery, utterance of a legal instrument and falsification of records in violation of section 470 (forgery) of the Penal Code. The court denied Belnick’s motion to dismiss on grounds the 10-day notice requirement of section 2113 was not given before the complaint was filed. The parties then stipulated to the facts underlying count two: In April of 1983, Belnick registered a fictitious employer with the Employment Development Department (Department) (§ 133); he also registered himself as employee and as a recipient of fictitious wages making him eligible for benefits under the code which he eventually collected in excess of $400. Following appropriate waivers, the judge, based on the stipulated facts, found Belnick guilty of count two, violating section 2114, and sentenced him to a middle term of two years in prison. The court, pursuant to the stipulation, found him not guilty of the remaining counts.

Appealing, Belnick repeats the argument made to the trial court. He contends section 21132, requiring the Department to give 10 days’ written notice of intent to file a criminal complaint, applies to section 21143 prosecutions; as such notice was not given, the information failed to state an offense and the evidence is insufficient to sustain the conviction. We shall hold the 10-day notice not applicable to section 2114 prosecutions and affirm.

[1452]*1452I

The Legislature enacted unemployment compensation as part 1 of division 1 of the Unemployment Insurance Code to provide for benefits for persons unemployed through no fault of their own and to reduce involuntary unemployment and the suffering caused by it to a minimum (§ 100). The code is remedial in nature and is to be construed liberally to effect the purposes of the act, to insure the “‘diligent worker against the vicissitudes of enforced unemployment not voluntarily created by the worker without good cause.’ [Citation.]” (Tomlin v. Unemployment Ins. Appeals Bd. (1978) 82 Cal.App.3d 642, 646 [147 Cal.Rptr. 403].)

“Internal ambiguities and conflicts should be resolved to promote the objective exhibited by the entire plan. ’ ’ (Smith v. Unemployment Ins. Appeals Bd. (1975) 52 Cal.App.3d 405, 411 [125 Cal.Rptr. 35].) Section 2101 provides in relevant part: “(a) It is a misdemeanor to willfully make a false statement or representation or knowingly fail to disclose a material fact to obtain, increase, reduce, or defeat any benefit or payment, whether for the maker or for any other person, under any of the following statutes administered by the department: [1Í] (1) The provisions of this division.” Section 2101 is a special statute. This means prosecution under a general statute is precluded by the special statute which is so characterized when, from the entire context in which the special statute is placed, a violation of the special statute will commonly result in a violation of the general statute. (People v. Jenkins (1980) 28 Cal.3d 494, 503 [170 Cal.Rptr. 1, 620 P.2d 587].) Thus, an unemployment insurance fraud may not be prosecuted as theft by false pretensions (Pen. Code, § 484) or forgery (Pen. Code, § 470) and, as of April 1976, violations of provisions of division 1 of the code were misdemeanors. (People v. Raster (1976) 16 Cal.3d 690, 697-698 [129 Cal.Rptr. 153, 548 P.2d 353, 80 A.L.R.3d 1269].)

Section 2114 was enacted in 1982 after Ruster. The Legislature declared the misdemeanor penalties previously provided (e.g., §§ 2101, 2103, 2104 & 2107 et seq.) were inadequate for certain types of fraud under the code and enacted several sections with felony penalties for such fraud (Stats. 1982, ch. 999, pp. 3679-3680; §§ 2114 & 2115; § 2116 was enacted in 1983 (Stats. 1983, ch. 711, §§ 1 & 3, p. 2704; see also § 2112; Review of Selected 1982 California Legislation (1982) 14 Pacific L.J. 661).

II

Section 21134 gives the Department discretionary power (Manning v. Municipal Court (1978) 87 Cal.App.3d 932, 936 [151 Cal.Rptr. 453]; see [1453]*1453also Cal. Admin. Code, tit. 22, §2113-1, subds. (a) & (d); 50 Ops.Cal.Atty.Gen. 128, 130 (1967)) to accept restitution in lieu of a prosecution if a person has not previously claimed any right under the section, not had a section 2101 conviction within three years and “has willfully made a false statement or representation or knowingly failed to disclose a material fact to obtain or increase any benefit under any provision of this division.” Further, “[t]he department shall by mail or personal service give such person written notice of intent to file a criminal complaint not less than 10 days prior to the filing of the criminal complaint.” (§ 2113.)

Section 2113 was in place when section 2114 was enacted. The People argue the Legislature had no intent section 2113 should apply to prosecutions pursuant to section 2114. Thus, the Department was not required to give the 10-day notice. They urge we give the statutory provisions reasonable and commonsense interpretations and argue connecting the two sections results in unwise policy and absurdity. To bolster the argument, the People cite to us longstanding administrative policies of not offering restitution when a person has established fictitious employer, employee and wage accounts. (Cal. Admin. Code, tit. 22, § 2113-1, subd. (b).)

We avoid unreasonable and absurd applications of law (DeYoung v. City of San Diego (1983) 147 Cal.App.3d 11, 18 [194 Cal.Rptr. 722]) and give great weight to administrative policy and interpretations (Manning v. Municipal Court, supra, 87 Cal.App.3d 932 at p. 936).

The language of section 2113, with insignificant differences, exactly tracks the operative language of section 2101 concerning willfully making a false statement or representation or knowingly failing to disclose a material fact to obtain or increase any benefits. Together, the two sections compel the conclusion violations of the code with respect to willfully making a false statement or representation or knowingly to fail to disclose a material fact or obtain or increase any benefits are prosecutable only as misdemeanors (People v. Ruster, supra, 16 Cal.3d 690 at pp. 697-698) and offenders are required to be offered an opportunity to make restitution before misdemeanor complaints are filed.5

Section 2114, however, tracks neither section 2113 nor section 2101. While section 2101 speaks generally to violations of provisions of division 1 and characterizes such violations as misdemeanors, section 2114 is specific in its narrow definition of the offense punishable as a felony. [1454]*1454The offense is the obtaining of benefits or the increase in benefits or payments aggregating $400 or more by a person who, with the intent to defraud, reports or registers a fictitious employer or fictitious employee, and fictitious wages.

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Related

People v. Jenkins
620 P.2d 587 (California Supreme Court, 1980)
People v. Ruster
548 P.2d 353 (California Supreme Court, 1976)
Gay Law Students Ass'n v. Pacific Telephone & Telegraph Co.
595 P.2d 592 (California Supreme Court, 1979)
Select Base Materials, Inc. v. Board of Equalization
335 P.2d 672 (California Supreme Court, 1959)
DeYoung v. City of San Diego
147 Cal. App. 3d 11 (California Court of Appeal, 1983)
United Business Commission v. City of San Diego
91 Cal. App. 3d 156 (California Court of Appeal, 1979)
Smith v. Unemployment Insurance Appeals Board
52 Cal. App. 3d 405 (California Court of Appeal, 1975)
Tomlin v. Unemployment Ins. Appeals Bd.
82 Cal. App. 3d 642 (California Court of Appeal, 1978)
Manning v. Municipal Court
87 Cal. App. 3d 932 (California Court of Appeal, 1978)

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Bluebook (online)
184 Cal. App. 3d 1449, 229 Cal. Rptr. 414, 1986 Cal. App. LEXIS 1978, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-belnick-calctapp-1986.