BILL NUMBER: ABX3 23 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 2, 2009
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
1275 and 1277.5 of, to add Sections 1277.1 and 1329.5
to, and to add and repeal Section 4003.5 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 amended, 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)
(1) 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
July 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, specified
federal legislation is passed by Congress and signed by the
President in the 2009 calendar year. This bill would also
require a claimant to submit specified information regarding wages to
the Employment Development Department via an affidavit, under
specified conditions .
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.
Because this measure would require specified information to be
submitted to the Employment Development Department on an affidavit,
the submission of which, if false, is a misdemeanor under existing
law, it would impose a state-mandated program.
(2) Existing law provides that, for purposes of eligibility for
federal-state extended benefits, an individual have earnings that
exceed either 40 times his or her most recent weekly benefit amount
or 1.5 times the highest quarter in the base period, and precludes
the implementation of the alternative eligibility requirement for
federal-state extended benefits unless the Director of the Employment
Development Department determines that these provisions have been
approved by the United States Department of Labor.
The federal Supplemental Appropriations Act of 2008, created the
Emergency Unemployment Compensation (EUC) Program on June 30, 2008,
which provides for the payment of up to 13 weeks of federally funded
emergency unemployment compensation (EUC) benefits to eligible
unemployed individuals nationwide who had already collected all
regular state benefits for which they were eligible. The federal
Unemployment Compensation Extension Act of 2008, which was enacted on
November 21, 2008, further expanded the EUC Program to provide for
the payment of 20 weeks of benefits nationwide, and provides for the
payment of 13 more weeks of benefits to eligible unemployed
individuals in states with high unemployment rates, as determined by
specified criteria. The federal American Recovery and Reinvestment
Act of 2009, which was enacted on February 17, 2009, extends to June
30, 2010, the period of time during which claims for EUC benefits can
be filed and paid.
This bill would provide, until June 30, 2010, for the payment of
temporary federal-state EUC benefits authorized under the
Supplemental Appropriations Act of 2008, the Unemployment
Compensation Extension Act of 2008, and the American Recovery and
Reinvestment Act of 2009 to eligible individuals in this state,
during specified weeks that the state is experiencing periods of high
unemployment, as determined in accordance with prescribed indicators
that trigger the payment of those extended benefits, as provided.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(3)
(4) 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)
(5) 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 yes .
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 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 for inactive
duty training, annual training, or emergency state active duty.
SEC. 2. SECTION 1. 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 July 1, 2009, if an individual cannot establish a
claim under subdivision (a) , then "base period" means: for
benefit years beginning in October, November, or December, the four
calendar quarters ended in the prior next
preceding month of September; for benefit years beginning in
January, February, or March, the four calendar quarters ended in the
prior next preceding month of December;
for benefit years beginning in April, May, or June, the four
calendar quarters ended in the prior next
preceding month of March; for benefit years beginning in July,
August, or September, the four calendar quarters ended in the
prior next 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. Wages
used in the determination of benefits payable to an individual
during any benefit year shall not be used in determining that
individual's benefits in any subsequent benefit year.
(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, federal legislation authorizing
additional federal funding to implement an alternative base period,
as described in subdivision (b), is passed by Congress and
signed by the President in the 2009 calendar year .
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 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 for inactive duty training, annual training, or emergency
state active duty.
SEC. 2. Section 1277.1 is added to the
Unemployment Insurance Code , to read:
1277.1. (a) Notwithstanding Section 1277, if an individual has a
subsequent new claim and the previous valid claim was filed under
subdivision (b) of Section 1275, the new claim shall only be valid
if, during the 52-week period beginning with the effective date of
the previous claim, either of the following applies:
(1) The individual earned or was paid sufficient wages to meet
eligibility requirements of subdivision (a) of Section 1281 and
performed some work.
(2) The individual did not receive benefits under this part and
was disabled and was entitled to receive wage loss benefits under
Part 2 (commencing with Section 2601) of this code or under Division
4 (commencing with Section 3201) of the Labor Code, under any workers'
compensation law, under employer's liability law, or under any
disability insurance law of any other state or the federal
government.
(b) For purposes of this section, "wages" includes any and all
compensation for personal services performed as an employee for the
purpose of meeting the eligibility requirements of subdivision (a) of
Section 1281. This subdivision is not applicable to the computation
of an award for disability benefits.
SEC. 3. Section 1277.5 of the
Unemployment Insurance Code is amended to read:
1277.5. In determining, under Section 1277
Sections 1277 and 1227.1 , whether a new claim is valid,
twice the amount which that an
individual was entitled to receive under Part 2 (commencing with
Section 2601) of this division or under Division 4 (commencing with
Section 3201) of the Labor Code, or under any workers' compensation
law, employer's liability law, or disability insurance law of any
other state or of the federal government, during the 52-week period
beginning with the effective date of the previous valid claim, shall
be considered as wages earned or paid to the individual during that
52-week period for purposes of meeting the eligibility requirements
of subdivision (a) of Section 1281. The amounts so included shall not
be considered wages for the purpose of computing the weekly benefit
amount of the individual under Section 1280 or the maximum amount
payable to the individual under Section 1281.
SEC. 4. Section 1329.5 is added to the
Unemployment Insurance Code , to read:
1329.5. For purposes of a claim for unemployment benefits under
subdivision (b) of Section 1275, all of the following apply:
(a) Computation using the last four completed calendar quarters
shall be based on available wage information processed as of the
close of business on the day preceding the date of application.
(b) If the wage information is not already in the department's
system, the employer shall, within 10 days after the mailing of the
request from the department, transmit to the department information
on the employee's wages and any other information relevant to the
request. The 10-day period may be extended for good cause.
(c) If the wage, and other relevant information, requested
pursuant to subdivision (b) are not received by the department, the
department shall accept an affidavit of wages and other relevant
information from the claimant in accordance with authorized
regulations. These regulations shall be adopted as emergency
regulations.
(d) A determination of benefits made pursuant to subdivision (b)
of Section 1275 shall be adjusted when the quarterly wage report from
the employer is received if that information causes a change in the
determination.
(e) Except in the event of fraud, if it is determined that any
information provided by the claimant on an affidavit is erroneous, no
penalty or refund of benefits shall be imposed on the claimant for
the period prior to the calendar week in which an employer provides
subsequent wage information.
SEC. 5. Section 4003.5 is added t o the
Unemployment Insurance Code , to read:
4003.5. (a) For purposes of this part, "federal-state extended
benefits" also includes the payment of emergency unemployment
compensation (EUC) benefits payable under the federal Supplemental
Appropriations Act of 2008 (Public Law 110-252), the Unemployment
Compensation Extension Act of 2008 (Public Law 110-449) and the
American Recovery and Reinvestment Act of 2009 (H.R. 1) pursuant to
this section.
(b) There is an "on" indicator for purposes of federal-state
extended benefits provided under this section for a week in which any
of the following apply:
(1) The rate of insured unemployment for the period consisting of
that week and the immediately preceding 12 weeks equaled or exceeded
120 percent of the average of those rates for the corresponding
13-week period in each of the preceding calendar years, and equaled
or exceeded 5 percent.
(2) The rate of insured unemployment consisting of that week and
the immediately preceding 12 weeks equaled or exceeded 6 percent,
regardless of the rate of insured unemployment during the previous
two calendar years.
(3) With respect to benefits for weeks of unemployment beginning
on or after January 1, 2009, both of the following apply:
(A) The average rate of total unemployment that is seasonally
adjusted, as determined by the United States Secretary of Labor, for
the period consisting of the most recent three months for which data
for all states are published before the close of that week equals or
exceeds 6.5 percent.
(B) The average rate of total unemployment in the state that is
seasonally adjusted, as determined by the United States Secretary of
Labor, for the three-month period referred to in subparagraph (A)
equals or exceeds 110 percent of that average for either or both of
the corresponding three-month periods ending in the two preceding
calendar years.
(4) The average rate of total unemployment in the state for any
period of a week, and the immediately preceding 12 weeks equals or
exceeds 8 percent.
(c) There is an "off" period indicator for a week if, for the
period consisting of that week and the immediately preceding 12
weeks, none of the criteria specified in subdivision (b) result in an
"on" indicator.
(d) This section shall remain in effect only until June 30, 2010,
and as of that date is repealed, unless a later enacted statute, that
is enacted before June 30, 2010, deletes or extends that date.
SEC. 6. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 4. SEC. 7. 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. SEC. 8. 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.