BILL NUMBER: SB 1690 CHAPTERED 09/28/06 CHAPTER 519 FILED WITH SECRETARY OF STATE SEPTEMBER 28, 2006 APPROVED BY GOVERNOR SEPTEMBER 28, 2006 PASSED THE SENATE AUGUST 31, 2006 PASSED THE ASSEMBLY AUGUST 28, 2006 AMENDED IN ASSEMBLY AUGUST 23, 2006 AMENDED IN SENATE MAY 3, 2006 AMENDED IN SENATE MARCH 30, 2006 INTRODUCED BY Senator Romero FEBRUARY 24, 2006 An act to amend Sections 2655 and 10214.5 of the Unemployment Insurance Code, relating to unemployment insurance, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST SB 1690, Romero Unemployment insurance: disability compensation and employment training contracts. (1) Existing unemployment compensation disability law provides a formula for determining benefits available to qualifying disabled individuals. For an individual who has quarterly base wages of greater than $1,749.20, the weekly benefit is calculated by multiplying base wages by 55% and dividing the result by 13. For a benefit that is not a multiple of $1, existing law provides that the benefit shall be computed to the next higher multiple of $1. However, existing law provides that this amount may not exceed the maximum workers' compensation temporary disability indemnity weekly benefit amount. This bill would provide that, notwithstanding the limitation placed on the workers' compensation disability indemnity weekly benefit amount, any benefit that is not a multiple of $1 shall be computed to the next higher multiple of $1. Because this bill would increase the amount payable from the Unemployment Compensation Disability Fund, a continuously appropriated special fund, this bill would make an appropriation. (2) Under existing law, the Employment Training Panel has specified duties, including the duty to make contracts for training in job-related vocational skills, as specified. Existing law permits the panel, subject to certain requirements, to allocate a specified percentage of annual training funds for the purpose of funding special employment training projects to improve the skills of frontline workers, as defined. This bill would authorize the panel to allocate funds for training in job-related vocational skills to increase the productivity and extended retention of workers in the state's major seasonal industries, as defined, and would authorize the panel to waive certain requirements contained in existing law under specified conditions. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 2655 of the Unemployment Insurance Code is amended to read: 2655. (a) Except as provided in subdivisions (b), (c), and (d), an individual's "weekly benefit amount" shall be the amount appearing in column B in the table set forth in this subdivision on the line of which in column A of the table there appears the wage bracket containing the amount of wages paid to the individual for employment by employers during the quarter of his or her disability base period in which wages were the highest. A B Amount of wages Weekly in benefit highest quarter amount $75-1,149.99.................... $50 1,150-1,174.99................... 51 1,175-1,199.99................... 52 1,200-1,224.99................... 53 1,225-1,249.99................... 54 1,250-1,274.99................... 55 1,275-1,299.99................... 56 1,300-1,324.99................... 57 1,325-1,349.99................... 58 1,350-1,374.99................... 59 1,375-1,399.99................... 60 1,400-1,424.99................... 61 1,425-1,449.99................... 62 1,450-1,474.99................... 63 1,475-1,499.99................... 64 1,500-1,524.99................... 65 1,525-1,549.99................... 66 1,550-1,574.99................... 67 1,575-1,599.99................... 68 1,600-1,624.99................... 69 1,625-1,649.99................... 70 1,650-1,674.99................... 71 1,675-1,699.99................... 72 1,700-1,724.99................... 73 1,725-1,749.20................... 74 (b) For periods of disability commencing on or after January 1, 1990, and prior to January 1, 1991, if the amount of wages paid an individual for employment by employers during the quarter of his or her disability base period in which these wages were highest exceeds one thousand seven hundred forty-nine dollars and twenty cents ($1,749.20), the weekly benefit amount shall be 55 percent of these wages divided by 13, but not exceeding two hundred sixty-six dollars ($266) or the maximum workers' compensation temporary disability indemnity weekly benefit amount, whichever is less. If the benefit payable under this subdivision is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). (c) For periods of disability commencing on or after January 1, 1991, but before January 1, 2000, if the amount of wages paid an individual for employment by employers during the quarter of his or her disability base period in which these wages were highest exceeds one thousand seven hundred forty-nine dollars and twenty cents ($1,749.20), the weekly benefit amount shall be 55 percent of these wages divided by 13, but not exceeding three hundred thirty-six dollars ($336). If the benefit payable under this subdivision is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). (d) (1) For periods of disability commencing on or after January 1, 2000, if the amount of wages paid an individual for employment by employers during the quarter of his or her disability base period in which these wages were highest exceeds one thousand seven hundred forty-nine dollars and twenty cents ($1,749.20), the weekly benefit amount shall be equal to 55 percent of these wages divided by 13, but not exceeding the maximum workers' compensation temporary disability indemnity weekly benefit amount. (2) Notwithstanding the maximum workers' compensation temporary disability indemnity weekly benefit amount of paragraph (1) of subdivision (d), if the benefit under this subdivision is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). SEC. 2. Section 10214.5 of the Unemployment Insurance Code is amended to read: 10214.5. (a) The panel may allocate up to 10 percent of the annually available training funds for the purpose of funding special employment training projects that improve the skills and employment security of frontline workers, as defined in subdivision (a) of Section 10200. Notwithstanding any other provision of this chapter, participants in these projects are not required to meet the eligibility criteria set forth in paragraph (1) of subdivision (a) of Section 10200 or subdivision (c) of Section 10201. (b) The panel shall, on an annual basis, identify industries and occupations that shall be priorities for funding under this section. Training shall be targeted to frontline workers who earn at least the state average weekly wage. (c) The panel may waive the minimum wage provisions pursuant to subdivision (f) of Section 10201 for projects in regions of the state where the unemployment rate is significantly higher than the state average, and may waive the employment retentions provisions specified in subdivision (f) of Section 10209 and instead require that the trainee has been retained in employment for a minimum of 90 days out of 120 consecutive days after the end of training with no more than three employers. (d) (1) The panel may allocate funds pursuant to subdivision (a) to increase the productivity and extended employment retention of workers in the state's major seasonal industries. (2) In funding special employment training projects for this purpose, the panel may do all of the following: (A) When the amount of the postretention wages of each trainee who has completed training exceeds the amount of wages that the trainee earned before and during training, waive the minimum wage requirements set forth in subdivision (f) of Section 10201. (B) Waive the employment retention requirements set forth in subdivision (f) of Section 10209 and instead require that the trainee be retained in employment for not less than 500 hours within the 12-month period following the completion of the training. (C) When the panel finds that the training is necessary to achieve the objectives of vocational training, waive the limitation on job-related basic and literacy skills training set forth in subdivision (a) of Section 10209. (3) For purposes of this section, "major seasonal industries" means eligible employers who satisfy all of the following requirements: (A) Have a workforce comprised of at least 50 percent of workers whose employment period is necessarily cyclical, including, but not limited to, businesses directly involved in the harvesting, packing, or processing of goods or products. (B) Have retained at least 50 percent of the same seasonal employees for at least one season of not less than 500 hours for the preceding 12-month period. (C) Pay wages and provide benefits that exceed industry averages. (e) The panel shall adopt minimum standards for consideration of proposals to be funded pursuant to this section. (f) The panel may select contracts funded under this section based on competitive bidding. (g) It is the intent of the Legislature in providing the authority for these projects that the panel allocate these funds in a manner consistent with the objectives of this chapter as provided in Section 10200.