BILL NUMBER: ABX3 23 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 16, 2009
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, Galgiani,
Hayashi, Jones, Nava, and Torres)
(Coauthor: Senator DeSaulnier)
JANUARY 15, 2009
An act to amend Sections 1275, 1277.5, 4003, and 4004 of,
and to add Sections 1277.1 and 1329.5 to, 4003 and
4004 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 : extended
benefits .
(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 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. 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
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 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. Because the bill would
provide for the payment or additional amounts from the Unemployment
Fund, a continuously appropriated special fund, it would make an
appropriation.
(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
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
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 no .
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
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 may not be used in determining that individual's benefits in
any subsequent benefit 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 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 1. 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 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.
(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.
(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 (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. SEC. 2. 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 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 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 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. 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. 8. SEC. 3. 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. 9. SEC. 4. 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.