BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2055
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                           ASSEMBLY COMMITTEE ON INSURANCE
                                 Jose Solorio, Chair
              AB 2055 (De La Torre) - As Introduced:  February 18, 2010
           
          SUBJECT  :   Unemployment insurance benefits: domestic partners

           SUMMARY  :   Allows a person that imminently will be in a  
          registered domestic partnership to become eligible to receive  
          unemployment insurance (UI) benefits.  Specifically,  this bill:

           1)Defines "domestic partner" to include a person to whom a  
            registered domestic partnership is imminent and to be deemed  
            to have left their work with good cause if he or she  
            accompanies their intended domestic partner to a place from  
            which it is impractical to commute. 
           
          2)Allows a person to whom a domestic partnership is imminent, as  
            defined above, to become eligible to receive UI benefits.

          3)Permits an employer to submit facts to EDD disclosing that the  
            UI claimant left employment to accompany his or her imminent  
            domestic partner to join him or her at a place from which it  
            is impractical to commute. 

          4)Provides that an employer's account will not be charged for  
            the UI benefits received by a former employee if the UI  
            claimant left employment to accompany his or her imminent  
            domestic partner to join him or her at place from which it is  
            impractical to commute.

           EXISTING LAW  :

          1)Disqualifies a person for unemployment insurance (UI) benefits  
            if the Director of the Employment Development (EDD) finds that  
            he or she left his or her most recent work voluntarily without  
            good cause or that he or she has been discharged for  
            misconduct.

          2)Provides that a person may be deemed to have left his or her  
            most recent work with good cause if he or she leaves  
            employment to accompany his or her spouse or domestic partner  
            to a place from which it is impractical to commute to the  
            employment. 








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          3)Permits an employer who is entitled to receive notice that a  
            person has filed a claim of regular UI benefits or extended UI  
            benefits to submit to EDD facts disclosing that the claimant  
            left employment voluntarily or left due to specified  
            circumstances.  One of the circumstances is that the claimant  
            left employment to accompany his or her spouse or domestic  
            partner to join him at a place from which it is impractical to  
            commute to the employment, to which a transfer of the claimant  
            by the employer is not available. 

          4)Provides that if a UI claimant left their employment  
            voluntarily or under specified circumstances, then the  
            benefits paid to the claimant shall not be charged to the  
            account of the employer.  One of these circumstances is that  
            the claimant left the employer's employ to accompany his or  
            her spouse or domestic partner to join him at place from which  
            it is impractical to commute.  

          5)Defines "spouse" for the above purposes to include a person to  
            whom marriage is imminent. 

           FISCAL EFFECT  :   Undetermined.

           COMMENTS  : 

           1)Purpose.   The purpose of this bill is to preserve the family  
            unit by providing the same unemployment benefits to imminent  
            domestic partners that married couples, registered domestic  
            partners, and persons who will imminently marry, currently  
            receive.

           2)Background.   According to the author and the bill sponsor,  
            Equality California, existing law provides that persons who  
            are unemployed through no fault of their own can receive  
            unemployment insurance (UI) benefits.  UI benefits are  
            available to an employee when he or she leaves his or her job  
            for good cause, including when he or she leaves the area to  
            accompany their spouse or registered domestic partner.  As  
            defined in existing law, the term "spouse" includes  
            individuals/couples where marriage is imminent.  Therefore,  
            soon-to-be married couples can also receive UI benefits.   
            However, the law does not cover imminent domestic partners.

          The Employment Development Department reports the following:








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          In 1988, the state Supreme Court ruled in Altaville Drug Stores  
            v. California Unemployment Insurance Appeals Board and EDD  
            that an employer's reserve account may be relieved of charges  
            when a person who is about to be married leaves work to join  
            his or her fianc?e, the couple is later married, the finance  
            lives in a place from which it is impractical for the claimant  
            to commute to the former employment, the new place is one to  
            which the claimant could not be transferred, and the spouse or  
            imminent spouse has secured employment at the new location.

          The state Supreme Court also addressed the relationship of  
            Section 1032 (employer accounts for purposes of UI payments)  
            to Section 1256 (UI eligibility) of the Unemployment Insurance  
            Code and held that . . . "the purpose of the 1979 amendment to  
            Section 1032 was to remedy the unfair situation imposed on an  
            employer of a "domestic quit" whose employee left work with  
            good cause to follow his or her spouse.  The situation is  
            similarly unfair when an employee leaves with good cause to  
            follow an "imminent spouse."

          Also in 1988, AB 3602 (Chapter 781, Statutes of 1988) amended  
            Section 1256 by providing that an individual may be deemed to  
            have left his or her most recent work with good cause if he or  
            she leaves to accompany or join his or her spouse or  
            "imminent" spouse to a place from which it is impractical to  
            commute to the employment.  

          In 2001, AB 25 (Chapter 893, Statutes of 2001) authorized the  
            establishment of registered domestic partnerships and amended  
            Section 1256 of the Unemployment Insurance Code to provide  
            that a domestic partner is equal to a spouse for purposes of  
            UI eligibility and may leave his or her employment if he or  
            she leaves to accompany or join the domestic partner to a  
            place from which it is impractical to commute.  Sections 1030  
            and 1032, which are also the subject of this bill, were  
            amended to allow an individual employer's account to not be  
            charged when an employee leaves due to this reason.

           3)Arguments in Support.   The author and sponsor state that this  
            bill will preserve the family unit by providing the same UI  
            benefits to imminent domestic partners that married couples,  
            registered domestic partners, and soon-to-be married couples  
            currently receive.  By guaranteeing this right to imminent  
            domestic partners, this bill will bring parity to the law,  








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            family unity will be preserved, and all committed  
            relationships will be given equal opportunity to unemployment  
            benefits.

          The California Labor Federation, AFL-CIO, states that in  
            California's current economic crisis, with unemployment at  
            12.5%, and long-term unemployment (i.e., out of work for 6  
            months or longer) up 170% from last year, people are searching  
            for jobs in every corner of the state and are more willing  
            than ever to move for work.  

           4)Technical Note:  Legislation Affecting the Same Section of  
            Law.   This bill affects one section of law (Section 1256 of  
            the Unemployment Insurance Code) that is proposed to be  
            amended by another bill of this Session (AB 2364, Nava) that  
            has been approved by this Committee.  While there is no policy  
            conflict between the two bills, it will important to monitor  
            the status of these bills if they both move forward in order  
            to avoid any chaptering out problems.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Equality California (Sponsor)
          American Civil Liberties Union 
          California Labor Federation, AFL-CIO
          California Teachers Association
          Consumer Attorneys of California

           Opposition 
           
          None received.
           
          Analysis Prepared by  :    Manny Hernandez / INS. / (916) 319-2086