BILL NUMBER: AB 384	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Ma

                        FEBRUARY 23, 2009

   An act to amend Sections 1339 and 3075 of, and to add Section 3076
to, the Unemployment Insurance Code, relating to unemployment
compensation, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 384, as introduced, Ma. Unemployment compensation: disability
benefits: payment of benefits.
   Existing law authorizes the Employment Development Department to
administer the state unemployment insurance and the disability
compensation programs. Existing law requires the department, among
other duties, to make unemployment compensation payments by a check
or pay order that is permanently imprinted with a specified
statement, as provided, and to make disability benefits payments by
checks drawn on a specified bank, as provided.
   This bill would delete the requirement to include the imprinted
statement on payments of unemployment compensation and disability
benefits. This bill would also make technical, nonsubstantive changes
to those provisions.
   This bill would also authorize the department to pay disability
compensation benefits by use of electronic technology, including, but
not limited to, benefit cards. The bill would require the
department, if it elects to pay those benefits using electronic
technology, to select a vender, by a competitive bid process, to
provide for this payment process, and would prescribe criteria for
the selection of such a vendor.
   The bill would declare that it shall take effect immediately as an
urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1339 of the Unemployment Insurance Code is
amended to read:
   1339.   (a)    The department
shall pay unemployment compensation benefits through public
employment offices or such other agency as may be prescribed by
authorized regulations of the director. 
   (b) Each check or certification (pay order) issued in payment of
unemployment insurance compensation benefits shall have prominently
imprinted upon it: "State unemployment insurance benefits under the
California Unemployment Insurance Code are paid for by employers."

  SEC. 2.  Section 3075 of the Unemployment Insurance Code is amended
to read:
   3075.  The director shall, without presenting vouchers and
itemized statements, withdraw from the Disability Fund any sums
 which   that  he  or she  deems
necessary for the payment of disability benefits for a reasonable
future period. The Controller shall draw his  or her 
warrant for any claim presented by the director for such payment and
the Treasurer shall pay the warrant. Upon the withdrawal thereof,
 such   those  sums shall be deposited in a
disability benefit payment account in such bank or public depositary
and under  such   those  conditions as the
director determines, with the approval of the Department of Finance.
 Such   The  bank or public depositary
shall be one in which general funds of the state may be deposited,
but no public deposit insurance charge or premium shall be paid out
of  such   that  account. Money in this
account shall be used solely to pay disability benefits  by
checks drawn on the account  by the department pursuant to
authorized regulations and no other disbursement shall be made from
that account, except that amounts erroneously and illegally deposited
in  such   that  account may be refunded.
The procedure prescribed by  such   those 
regulations shall satisfy and be in lieu of any and all statutory
requirements of specific appropriation or other form of release by
state officers of money in their custody prior to expenditure
 which   that  might otherwise be
applicable to withdrawals from such   that 
account.
  SEC. 3.  Section 3076 is added to the Unemployment Insurance Code,
to read:
   3076.  (a) The department may pay benefits due under this part by
use of electronic technology, including, but not limited to, benefit
cards. If the department elects to pay benefits using electronic
technology, it shall select a vendor, by a competitive bid process,
to provide for this payment process.
   (b) The selection of a vendor responsible for implementing an
electronic technology payment process pursuant to subdivision (a)
shall be based on consideration of the following criteria:
   (1) The ability of beneficiaries to obtain funds without excessive
fees, as determined by the department.
   (2) The amount of estimated fees the vendor will charge
beneficiaries for the use of electronic technology to pay benefits.
   (3) The adequacy of privacy safeguards for beneficiaries.
   (4) Vendor responsibility for user education and information
technology assistance services such as help desk services.
   (5) Methods of access to account information.
   (6) Liability.
   (7) Degree of access to funds.
  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 make necessary changes to the disability compensation
benefit program to allow for the payment of benefits by use of
electronic technology, at the earliest possible time, thereby
decreasing costs and improving the efficiency of the programs, it is
necessary that this act take effect immediately.