BILL NUMBER: ABX3 23 ENROLLED
BILL TEXT
PASSED THE SENATE MARCH 26, 2009
PASSED THE ASSEMBLY MARCH 23, 2009
AMENDED IN ASSEMBLY MARCH 23, 2009
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 Beall, Carter, Feuer, Galgiani,
Hayashi, Jones, Nava, Portantino, and Torres)
(Coauthors: Senators Cedillo, DeSaulnier, and Ducheny)
JANUARY 15, 2009
An act to amend Sections 4003, 4004, and 4552 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, Coto. Unemployment insurance: extended benefits.
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 for weeks of unemployment on or after
February 1, 2009, and continuing until the week ending 3 weeks prior
to the last week for which specified provisions providing for 100%
federal sharing authorized under the American Recovery and
Reinvestment Act of 2009, except as provided, if specified economic
indicators trigger the payment of those benefits. Because the bill
would provide for the payment of additional amounts from the
Unemployment Fund, a continuously appropriated special fund, it would
make an appropriation.
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.
This bill would declare that it is to take effect immediately as
an urgency statute.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
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) To the extent that the provisions and definitions of terms in
the American Recovery and Reinvestment Act of 2009 (Public Law 111-5)
are in conflict with, or supplement the provisions and definitions
applicable pursuant to subdivision (a), the provisions and
definitions of the American Recovery and Reinvestment Act of 2009
shall apply to this part.
(c) There is an "on" indicator for purposes of federal-state
extended benefits for a week if one of the following applies:
(1) The rate of insured unemployment under this part for the
period consisting of that week and the 12 weeks immediately preceding
the week equaled or exceeded 120 percent of the average of the rates
for the corresponding 13-week period ending in each of the preceding
two calendar years, and equaled or exceeded 5 percent.
(2) The rate of insured unemployment under this part for the
period consisting of that week and the 12 weeks immediately preceding
the week equaled or exceeded 6 percent, regardless of the rate of
insured unemployment in the two previous years.
(3) With respect to weeks of unemployment beginning on or after
February 1, 2009, and continuing until the week ending three weeks
prior to the last week for which 100 percent federal sharing is
authorized by subdivision (a) of Section 2005 of Public Law 111-5 for
all claims, except for reimbursable entities described in Section
3306(c)(7) of the Internal Revenue Code, both of the following apply:
(A) The average rate of total unemployment in this 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.
(B) The average rate of total unemployment in this state,
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 rate of total
unemployment for either or both of the corresponding three-month
periods ending in the two preceding calendar years.
(d) There is an "off" indicator for a week if, for the period
consisting of that week, and the 12 weeks immediately preceding the
week, none of the criteria specified in subdivision (c) results in an
"on" indicator.
(e) 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.
(f) The indicators specified in subdivisions (c) and (d) shall be
operative only if mandated or permitted by federal law.
(g) 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 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 (Public Law 111-5), and that the state receives maximum
reimbursement from the federal government for the payment of those
emergency benefits.
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) With respect to weeks beginning in a high unemployment period,
subdivision (a) shall be applied in accordance with the following
percentages:
(1) In paragraph (1) of subdivision (a), 80 percent shall be
substituted for 50 percent.
(2) In paragraph (2) of subdivision (a), 20 times shall be
substituted for 13 times.
(3) In paragraph (3) of subdivision (a), 46 times shall be
substituted for 39 times.
(e) For purposes of subdivision (d), "high unemployment period"
means a period during which an extended benefit period would be in
effect if subparagraph (A) of paragraph (3) of subdivision (c) of
Section 4003 were applied by substituting 8 percent for 6.5 percent.
SEC. 3. Section 4552 of the Unemployment Insurance Code is amended
to read:
4552. An unemployed individual is eligible to receive
federal-state extended benefits with respect to any week only if the
director finds that:
(a) An extended compensation claim has been established for him or
her.
(b) The week is within an extended benefit period and his or her
eligibility period.
(c) He or she meets the eligibility requirements of Part 1
(commencing with Section 100), except those excluded under
subdivision (b) of Section 4002.
(d) He or she is not subject to disqualification for normal
benefits under any provision of Part 1 (commencing with Section 100).
If the individual has been subject to disqualification under
subdivision (b) of Section 1257, he or she has satisfied subdivision
(b) of Section 1260 and, during a week following the first week of
disqualification, has done either of the following:
(1) Performed service in bona fide employment during a week on a
full-time basis.
(2) Performed service in bona fide employment during a week from
which service he or she earned remuneration at least equal to his or
her weekly benefit amount.
(e) With respect to compensation payable to any individual for any
week, he or she had earnings from employment subject to the
provisions of this division which exceed 40 times his or her most
recent weekly benefit amount or 1.5 times the highest quarter, in the
base period in which he or she exhausted all rights to regular
compensation.
(f) An individual subject to disqualification under subdivision
(a) of Section 1256.4 has satisfied subdivision (a) of Section 1260.
(g) The amendments to subdivision (e) made by the act adding this
subdivision shall not be implemented unless the director determines
that those amendments have been approved by the United States
Department of Labor. The director shall immediately seek approval of
the amendments to subdivision (e) from the United States Department
of Labor.
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.