BILL NUMBER: ABX3 23 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 9, 2009
AMENDED IN ASSEMBLY MARCH 2, 2009
INTRODUCED BY Assembly Members Coto and Arambula
(Principal coauthor: Assembly Member Swanson)
( Coauthors: Assembly Members
Carter, Feuer, Hayashi, Jones,
Nava, and Torres )
( Coauthor: Senator
DeSaulnier )
JANUARY 15, 2009
An act to amend Sections 1275 and 1277.5 of, to add
Sections 1277.1 and 1329.5 to, and to add and repeal Section 4003.5
of, 1275, 1277.5, 4003, and 4004 of, and to add
Sections 1277.1 and 1329.5 to, 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) 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 July 1,
2009 January 1, 2010 , 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 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 May 31 , 2010, the period of
time during which claims for EUC benefits can be filed and paid.
The bill would provide 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 until December 6, 2009, or until a
specified provision of federal law providing for the payment of those
benefits expires, whichever is later.
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.
(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.
(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: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
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
July 1, 2009 January 1, 2010 , 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 next preceding
month of September; for benefit years beginning in January, February,
or March, the four calendar quarters ended in the next preceding
month of December; for benefit years beginning in April, May, or
June, the four calendar quarters ended in the next preceding month of
March; for benefit years beginning in July, August, or September,
the four calendar quarters ended in the 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 may 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 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. 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 Sections 1277 and 1227.1
1277.1 , whether a new claim is valid, twice the
amount 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 to 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. 5. Section 4003 of the
Unemployment Insurance Code is amended to read:
4003. (a) The provisions and definitions of terms in the
"Federal-State Extended Unemployment Compensation Act of 1970," as
amended by the federal Omnibus Budget Reconciliation Act of 1981
(Public Law 97-35), apply to this part. "Federal-state extended
benefits" means benefits payable under this part.
(b) There is an "on" indicator for purposes of federal-state
extended benefits for a week in which the rate of insured
unemployment for that week and the immediately preceding 12 weeks
equals or exceeds either any of the
following:
(1) One hundred twenty percent of the average of the rates for the
corresponding 13-week period ending in each of the preceding two
calendar years, and equals or exceeds 5 percent.
(2) Six percent.
(3) (A) With respect to weeks of unemployment beginning on or
after February 1, 2009, both of the following apply:
(i) The average rate of total unemployment in the state,
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.
(ii) The average rate of total unemployment in the state,
seasonally adjusted, as determined by the United States Secretary of
Labor, for the three month period referred to in clause (i) 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.
(B) This paragraph shall apply to benefits for weeks on or after
February 1, 2009, and shall become inoperative on December 6, 2009,
or on the date the federal sharable extended compensation and
sharable regular compensation authorized by subdivision (a) of
Section 2005 of Public Law 111-5 expires, whichever is later.
(c) There is an "off" indicator for a week if, for the period
consisting of that week, and the immediately preceeding 12 weeks,
none of the criteria specified in subdivision (b) results in an "on"
indicator.
(c) There is an "off" indicator for a week in which the rate of
insured unemployment for that week and the immediately preceding 12
weeks is less than 6 percent and also less than either of the
following:
(1) One hundred twenty percent of the average of the rates for the
corresponding 13-week period ending in each of the preceding two
calendar years.
(2) Five percent.
(d) For purposes of this section, the rate of insured unemployment
for a 13-week period shall be determined by reference to the average
monthly covered employment for the first four of the most recent six
calendar quarters ending before the close of the period. This
section shall be effective with respect to compensation for weeks of
unemployment after September 25, 1982. The provisions of
this section in effect prior to that date shall continue to apply to
weeks after March 30, 1977, but prior to September 25, 1982.
(e) The indicators specified in subdivisions (b) and (c) shall be
operative only if mandated or permitted by federal law. Any
amendments to the Federal-State Extended Unemployment Compensation
Act of 1970, enacted before January 1, 1983, which mandate or permit
any reduction in the insured unemployment rate indicator described in
this section shall be operative on the effective date of the
amendment.
(f) Notwithstanding any other provision of this part, the Governor
may, if permitted by federal law, suspend the payment of extended
duration benefits under this part, to the extent necessary to ensure
that otherwise eligible individuals are not denied, in whole or in
part, the receipt of emergency unemployment compensation benefits
authorized by the federal Emergency Unemployment Compensation Act of
1991 (P.L. 102-164) (Public Law 102-164)
or any extension of that act including, but not limited to,
(Public Law 102-244), and that the state receives maximum
reimbursement from the federal government for the payment of those
emergency benefits.
SEC. 6. Section 4004 of the
Unemployment Insurance Code is amended to read:
4004. (a) The department shall establish, for each eligible
individual who files an application therefor, an extended
compensation account with respect to such individual's benefit year.
The amount established in such that
account, subject to subdivision (b) of this section, shall be not
less than whichever of the following is the least:
(1) Fifty percent of the total amount of regular compensation
payable to him or her during such
that benefit year under this division.
(2) Thirteen times his or her average weekly benefit
amount.
(3) Thirty-nine times his or her average weekly benefit
amount, reduced by the regular compensation paid to him or her
during such that benefit year
under this division.
(b) The amount determined under subdivision (a) of this section
shall be reduced by the aggregate amount of additional compensation
paid to the individual under Part 3 (commencing with Section 3501) of
this division for prior weeks of unemployment in such benefit year
which did not begin in an extended benefit period.
(c) For purposes of subdivision (a) of this section, an individual'
s weekly benefit amount for a week is the amount of regular
compensation under Part 1 (commencing with Section 100) of this
division payable to such individual for such week of total
unemployment.
(d) (1) With respect to weeks beginning in a high-unemployment
period, the total extended compensation amount payable to an eligible
individual in the applicable benefit year shall be not less than
whichever of the following is the least:
(A) Eighty percent of the total amount of regular compensation
payable to him or her during that benefit year under this division.
(B) Twenty times his or her average weekly benefit amount.
(C) Forty-six times his or her average weekly benefit amount,
reduced by the regular compensation paid to him or her during that
benefit year under this division.
(2) For purposes of this section, "high-unemployment period" means
a period during which an extended benefit period would be in effect
if clause (i) of subparagraph (A) of paragraph (3) of subdivision (b)
of Section 4003 were applied by substituting 8 percent for 6.5
percent.
(3) To the extent permitted by federal law, if an individual
continues to meet all other applicable eligibility requirements, the
department shall not require that individual to reapply for benefits
to which he or she is entitled under this part.
(4) This subdivision shall apply to benefits for weeks on or after
February 1, 2009, and shall become inoperative on December 6, 2009,
or on the date the federal sharable extended compensation and
sharable regular compensation authorized by subdivision (a) of
Section 2005 of Public Law 111-5 expires, whichever is later.
SEC. 6. SEC. 7. 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. 7. SEC. 8. 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. 8. SEC. 9. 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.