BILL NUMBER: ABX3 23 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Coto and Arambula
(Principal coauthor: Assembly Member Swanson)
JANUARY 15, 2009
An act to amend Sections 1252, 1275, and 1279 of the Unemployment
Insurance Code, relating to unemployment insurance, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 23, as introduced, Coto. Unemployment insurance.
(1) Existing law provides that an individual is considered
"unemployed" for the purpose of eligibility for unemployment
compensation benefits if, for any week of less than full-time work,
the wages payable to the individual for that week, when reduced by
$25 or 25% of the wages payable, whichever is greater, do not equal
or exceed the individual's unemployment weekly benefit amount.
Existing law provides for the payment of unemployment compensation to
an individual in a weekly amount equal to his or her weekly benefit
amount, less the amount of wages in excess of the smaller of $25 or
25% of the wages payable.
This bill would instead provide that an individual is unemployed
in any week of less than full-time work only if the wages payable to
him or her with respect to the week, when reduced by the greater of
$200 or 25% of wages payable, do not equal or exceed his or her
weekly unemployment compensation benefit amount. This bill would also
provide the payment of unemployment compensation to an individual in
a weekly amount equal to his or her weekly benefit amount, less the
amount of wages in excess of the smaller of $200 or 25% of the wages
payable for that week.
(2) Under existing law, unemployment compensation benefits are
based on wages paid in a base period that is calculated according to
the month within which the benefit year begins.
This bill would, for new claims filed on or after January 1, 2009,
for which a valid claim or benefit year cannot be established under
the currently defined base periods, establish alternative base
periods, as provided. The bill also would provide that these
provisions shall become operative only if the federal legislation,
known and cited as the Unemployment Insurance Modernization Act, is
passed by Congress and signed by the President.
Because this measure would increase the amount of unemployment
compensation paid, it would make an additional amount payable from
the Unemployment Fund, a continuously appropriated special fund, and
thereby would make an appropriation.
(3) The California Constitution authorizes the Governor to
declare a fiscal emergency and to call the Legislature into special
session for that purpose. The Governor issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 19, 2008.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution.
(4) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1252 of the Unemployment Insurance Code is
amended to read:
1252. (a) An individual is "unemployed" in any week in which he
or she meets any of the following conditions:
(1) Any week during which he or she performs no services and with
respect to which no wages are payable to him or her.
(2) Any week of less than full-time work, if the wages payable to
him or her with respect to the week, when reduced by
twenty-five dollars ($25) two hundred dollars ($200)
or 25 percent of the wages payable, whichever is greater, do
not equal or exceed his or her weekly benefit amount.
(3) Any week for which, except for the requirements of subdivision
(d) of Section 1253, he or she would be eligible for benefits under
Section 1253.5.
(4) Any week during which he or she performs full-time work for
five days as a juror, or as a witness under subpoena.
(b) Authorized regulations shall be prescribed making such
distinctions as may be necessary in the procedures applicable to
unemployed individuals as to total unemployment, part-total
employment, partial unemployment of individuals attached to their
regular jobs, and other forms of short-time work.
(c) For the purpose of this section only "wages" includes any and
all compensation for personal services whether performed as an
employee or as an independent contractor or as a juror or as a
witness, but does not include any payment received by a member of the
National Guard or reserve component of the armed forces
Armed Forces for inactive duty training, annual
training, or emergency state active duty.
SEC. 2. Section 1275 of the Unemployment Insurance Code is amended
to read:
1275. (a) Unemployment compensation benefit
award computations shall be based on wages paid in the base period.
"Base period" means: for benefit years beginning in October,
November, or December, the four calendar quarters ended in the next
preceding month of June; for benefit years beginning in January,
February, or March, the four calendar quarters ended in the next
preceding month of September; for benefit years beginning in April,
May, or June, the four calendar quarters ended in the next preceding
month of December; for benefit years beginning in July, August, or
September, the four calendar quarters ended with the next preceding
month of March. Wages used in the determination of benefits payable
to an individual during any benefit year may not be used in
determining that individual's benefits in any subsequent benefit
year.
(b) For any new claim filed with an effective date on or after
January 1, 2009, if an individual has not been paid sufficient wages
in the first four of the last five completed calendar quarters to
entitle the individual to establish a benefit year, then "base period"
means: for benefit years beginning in October, November, or
December, the four calendar quarters ended in the prior preceding
month of September; for benefit years beginning in January, February,
or March, the four calendar quarters ended in the prior preceding
month of December; for benefit years beginning in April, May, or
June, the four calendar quarters ended in the prior preceding month
of March; for benefit years beginning in July, August, or September,
the four calendar quarters ended in the prior preceding month of
June. As provided in Section 1280, the quarter with the highest wages
shall be used to determine the individual's weekly benefit amount.
(c) The amendments made to this section by the act adding this
subdivision shall become operative only if the federal legislation,
known and cited as the Unemployment Insurance Modernization Act, is
passed by Congress and signed by the President.
SEC. 3. Section 1279 of the Unemployment Insurance Code is amended
to read:
1279. (a) Each individual eligible under this chapter who is
unemployed in any week shall be paid with respect to that week an
unemployment compensation benefit in an amount equal to his or her
weekly benefit amount less the smaller of the following:
(1) The amount of wages in excess of twenty-five dollars
($25) two hundred dollars ($200) payable to him
or her for services rendered during that week.
(2) The amount of wages in excess of 25 percent of the amount of
wages payable to him or her for services rendered during that week.
(b) The benefit payment, if not a multiple of one dollar ($1),
shall be computed to the next higher multiple of one dollar ($1).
(c) For the purpose of this section only , "wages"
includes any and all compensation for personal services whether
performed as an employee or as an independent contractor or as a
juror or as a witness, but does not include any payments, regardless
of their designation, made by a city of this state to an elected
official thereof as an incident to public office, nor any payment
received by a member of the National Guard or reserve component of
the armed forces Armed Forces for
inactive duty training, annual training, or emergency state active
duty.
SEC. 4. This act addresses the fiscal emergency declared by the
Governor by proclamation on December 19, 2008, pursuant to
subdivision (f) of Section 10 of Article IV of the California
Constitution.
SEC. 5. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to stimulate the state's weakening economy as soon as
possible, it is necessary that this act take effect immediately.