BILL NUMBER: AB 2058 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Block
(Coauthors: Assembly Members Arambula and Solorio)
FEBRUARY 18, 2010
An act to amend Sections 1266, 1267, 1268, 1271, 1271.5, and
1272.5 of, to add Section 1266.1 to, to repeal Sections 1270, 1272,
and 1273 of, and to repeal and add Section 1269 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 2058, as introduced, Block. Unemployment insurance: retraining
benefits.
Existing law provides unemployment compensation benefits to
eligible persons who are unemployed through no fault of their own.
Existing law, until January 1, 2015, provides for retraining benefits
to eligible individuals pursuant to the federal Trade Act of 1974,
as amended by the federal Trade Act of 2002. Existing law authorizes
an unemployed individual who files a claim for unemployment
compensation benefits or extended duration benefits, or an
application for federal-state extended benefits or any federally
funded unemployment compensation benefits, to apply to the Employment
Development Department for benefits during a period of training or
retraining. Existing law also requires that a determination of
potential eligibility for specified training and retraining benefits
be issued to an unemployed individual if the Director of Employment
Development finds that specified conditions apply.
This bill would revise those eligibility requirements to, instead,
specify that an unemployed individual who files a claim for
unemployment compensation benefits or extended duration benefits, or
an application for federal-state extended benefits or any federally
funded unemployment compensation benefits shall be deemed to
automatically be eligible for benefits during a period of training or
retraining. The bill would require that if the director determines
that the average state unemployment rate, seasonally adjusted, as
determined by the United States Secretary of Labor, for the period
consisting of the most recent 3 months for which data for all states
are published for the close of that week equals or exceeds 8.5%,
recipients of unemployment compensation benefits also be eligible to
participate in training or retraining programs.
Existing law specifies that any unemployed individual receiving
certain unemployment compensation benefits, who applies for a
determination of potential eligibility for those benefits no later
than the 16th week of his or her receiving those benefits, and is
determined to be eligible for those benefits, is entitled to a
training extension on his or her unemployment claim, if necessary, to
complete approved training.
This bill would eliminate that requirement that an individual
apply for a determination of potential eligibility no later than the
16th week of his or her receiving those benefits, and would instead
require that any training extension granted pursuant to those
provisions provide the claimant with a specified weekly benefit
amount, as prescribed.
Existing law requires the department to inform all individuals who
claim unemployment compensation benefits in this state of the
benefits potentially available, and permits the department to convey
this information verbally or in written form, as provided.
This bill would, instead, require the department to convey that
information verbally, in written form, and on-line, and would require
that the information be made available on the department's Internet
Web site in close proximity to information on unemployment
compensation claim forms.
Existing law makes an individual ineligible for benefits in any
week during a period of training or retraining if he or she fails to
submit a specified certification.
This bill would make an individual ineligible for benefits in any
week during a period of training or retraining if he or she fails to
submit biweekly information documenting his or her eligibility for
benefits for any week during a period of training or retraining.
Existing law prohibits the payment of benefits during a period of
training or retraining to any individual for any week or part of any
week with respect to which he or she receives training or retraining
benefits, allowances, or stipends pursuant to specified federal laws
that provide for the payment of those benefits.
This bill would eliminate that prohibition on the payment of those
benefits.
Because the bill would make various changes to existing
eligibility requirements for training and retraining benefits, which
would result in additional amounts being payable from the
Unemployment Fund for those benefits, the bill would make an
appropriation.
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: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1266 of the Unemployment Insurance Code is
amended to read:
1266. Experience has shown that the ability of a large number of
the population of California to compete for jobs in the labor market
is impaired by advancement in technological improvements, the
widespread effects of automation and relocation in our economy, and
foreign competition as set forth in petitions certified under the
federal Trade Act of 1974, as amended (Title 19, United States Code,
Sections 2101 et seq.). The Legislature finds that many individuals
in California are lacking in skills which
that would make them competitive in the labor market. They are
in need of training or retraining in to
upgrade their skills required in demand occupations
. It is the policy of this state to assist these
individuals by providing unemployment compensation benefits, extended
duration benefits, and other federally funded unemployment
compensation benefits, including those available under the federal
Trade Act of 1974 (Public Law 93-618), as amended by the federal
Trade Act of 2002 (Public Law 107-210), during a period of retraining
to qualify them for new jobs in demand
occupations and thus avoid long-term unemployment.
SEC. 2. Section 1266.1 is added to the Unemployment Insurance
Code, to read:
1266.1. If the director determines that the average state
unemployment rate, 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 for
the close of that week, equals or exceeds 8.5 percent, recipients of
unemployment compensation benefits shall also be eligible to
participate in training or retraining programs.
SEC. 3. Section 1267 of the Unemployment Insurance Code is amended
to read:
1267. Notwithstanding any other provision of this division, with
respect to an unemployed individual otherwise eligible for benefits,
such those benefits shall not be denied
to an individual for any week because he or she is in training or
retraining with the approval of the director , or
because of the application to any such week in training or retraining
of any law of this state relating to availability for work, active
search for work, refusal to accept work, or for leaving his or her
most recent work, if continuing the most recent work would require
the individual to terminate his or her training or retraining course
of instruction. The individual is considered to be in training or
retraining during regularly scheduled vacation or recess periods,
such as Christmas and Thanksgiving holidays, or semester breaks, but
not during a summer vacation period. As used in this article,
"individual" includes an exhaustee as defined in Section 3503, and
any individual claiming federal-state extended benefits under Part 4
(commencing with Section 4001), and anyone receiving federally funded
unemployment compensation benefits.
SEC. 4. Section 1268 of the Unemployment Insurance Code is amended
to read:
1268. An unemployed individual who files a claim for unemployment
compensation benefits or extended duration benefits, or an
application for federal-state extended benefits or any federally
funded unemployment compensation benefits , may apply to the
department for a determination of potential eligibility
shall be deemed automatically to be eligible for benefits
during a period of training or retraining.
SEC. 5. Section 1269 of the Unemployment Insurance Code is
repealed.
1269. A determination of potential eligibility for benefits under
this article shall be issued to an unemployed individual if the
director finds that any of the following apply:
(a) The training is authorized by the federal Workforce Investment
Act or by the Employment Training Panel established pursuant to
Chapter 3.5 (commencing with Section 10200) of Part 1 of Division 3.
(b) The training is authorized by the federal Trade Act of 1974,
(19 U.S.C. Sec. 2101 et seq.), as amended by the federal Trade Act of
2002 (Public Law 107-210), pursuant to a certified petition.
(c) The individual is a participant in the California Work
Opportunity and Responsibility to Kids (CalWORKs) program pursuant to
Article 3.2 (commencing with Section 11320) or Article 3.3
(commencing with Section 11330) of Chapter 2 of Part 3 of Division 9
of the Welfare and Institutions Code, and has entered into a contract
with the county welfare department to participate in an education or
training program.
(d) That all of the following apply:
(1) The individual has been unemployed for four or more continuous
weeks, or the individual is unemployed and unlikely to return to his
or her most recent workplace because work opportunities in the
individual's job classification are impaired by a plant closure or a
substantial reduction in employment at the individual's most recent
workplace, by advancement in technological improvements, by the
effects of automation and relocation in the economy, or because of a
mental or physical disability which prohibits the individual from
utilizing existing occupational skills.
(2) One of the substantial causes of the individual's unemployment
is a lack of sufficient current demand in the individual's labor
market area for the occupational skills for which the individual is
fitted by training and experience or current physical or mental
capacity and that the lack of employment opportunities is expected to
continue for an extended period of time, or, if the individual's
occupation is one for which there is a seasonal variation in demand
in the labor market and the individual has no other skill for which
there is current demand.
(3) The training or retraining course of instruction relates to an
occupation or skill for which there are, or are expected to be in
the immediate future, reasonable employment opportunities in the
labor market area in this state in which the individual intends to
seek work and there is not a substantial surplus of workers with
requisite skills in the occupation in that area.
(4) If the individual is a journey level union member, the
training or retraining course of instruction is specific job-related
training necessary due to changes in technology, or necessary to
retain employment or to become more competitive in obtaining
employment.
(5) The training or retraining course of instruction is one
approved by the director and can be completed within one year.
(6) The training or retraining course is a full-time course
prescribed for the primary purpose of training the applicant in
skills that will allow him or her to obtain immediate employment in a
demand occupation and is not primarily intended to meet the
requirements of any degree from a college, community college, or
university.
(7) The individual can be reasonably expected to complete the
training or retraining successfully.
(8) The beginning date of training is more than three years after
the beginning date of training last approved for the individual under
this subdivision.
SEC. 6. Section 1269 is added to the Unemployment Insurance Code,
to read:
1269. Notwithstanding subdivision (c) of Section 1253, an
unemployed individual who is able to work is eligible to receive
benefits under this article, if he or she certifies on the claim form
for benefits that he or she is enrolled in a training program
designed to increase or improve their job skills and employability.
SEC. 7. Section 1270 of the Unemployment Insurance Code is
repealed.
1270. As used in this article:
(a) "Demand occupation" means an occupation in a labor market area
in which the director determines work opportunities are available
and there is not a surplus of qualified applicants.
(b) "Labor market area" means a county, or aggregation of counties
designated by the department that meets criteria of population,
population density, commute patterns, and social and economic
integration specified by the department.
SEC. 8. Section 1271 of the Unemployment Insurance Code is amended
to read:
1271. (a) Any unemployed individual receiving unemployment
compensation benefits payable under this division, who applies for a
determination of potential eligibility for benefits under this
article no later than the 16th week of his or her receiving these
benefits, and is determined eligible for benefits under this article,
is entitled to a training extension on his or her unemployment
compensation claim, if necessary, to complete approved training.
(b) The
1271. (a) A training
extension granted under this article shall provide the
claimant with a maximum of 52 times the weekly benefit amount, which
shall include the maximum benefit award on the parent unemployment
compensation claim.
(c)
(b) The parent unemployment compensation claim shall be
the unemployment compensation claim in existence at the time the
claimant is determined eligible for benefits pursuant to subdivision
(a).
(d)
(c) Benefits payable under this section are subject to
the following limitations:
(1) The individual shall remain eligible for benefits under this
article for all weeks potentially payable under this section.
(2) The individual shall file any unemployment compensation claim
to which he or she becomes entitled under state or federal law, and
shall draw any unemployment compensation benefits on that claim until
it has expired or has been exhausted, in order to maintain his or
her eligibility under this article.
(3) To the extent permitted by federal law, benefits payable under
any federal unemployment compensation law shall be included as
benefits payable under this section.
SEC. 9. Section 1271.5 of the Unemployment Insurance Code is
amended to read:
1271.5. (a) The department shall inform all individuals who claim
unemployment compensation benefits in this state of the benefits
potentially available under this article and Section 1271. The
department may shall convey this
information verbally or in written form. If in written form,
the department may utilize publications or handbooks that inform
individuals of their rights and duties in regard to unemployment
compensation benefits. These publications, issued by the department
pursuant to authorized regulations, may be used to satisfy the
requirements of this section , in written
form, and on-line. Information required by this section shall be made
available on the department's Internet We b site in close
proximity to information on unemployment compensation claim forms
.
(b) Benefits paid under Section 1271 shall be
charged to individual employer reserve accounts, consistent with the
provisions of this code.
SEC. 10. Section 1272 of the Unemployment Insurance Code is
repealed.
1272. Notwithstanding subdivision (c) of Section 1253, an
unemployed individual who is able to work is eligible to receive
benefits under this article with respect to any week during a period
of training or retraining only if the director finds both of the
following:
(a) He or she has been determined potentially eligible under
Section 1269 or 1271.
(b) He or she submits with each claim a written certification
executed by a responsible person connected with the training or
retraining program certifying that he or she is enrolled in and
satisfactorily pursuing the training or retraining course of
instruction.
SEC. 11. Section 1272.5 of the Unemployment Insurance Code is
amended to read:
1272.5. If an individual fails to submit biweekly
information documenting eligibility for any week during a
period of training or retraining the certification required
by Section 1272 , he or she shall be ineligible to receive
any benefits for that week. This section shall not render an
individual ineligible for benefits for any week during the period of
training or retraining if on or before Monday of that week he or she
notifies the department that his or her training or retraining course
of instruction has been or is being discontinued or terminated prior
to that week.
SEC. 12. Section 1273 of the Unemployment Insurance Code is
repealed.
1273. (a) Notwithstanding any other provision of this article, no
payment of benefits during a period of training or retraining as
described in this article shall be made to any individual for any
week or part of any week with respect to which he or she receives
training or retraining benefits, allowances, or stipends pursuant to
the provisions of any state or federal law providing for the payment
of such benefits, but excluding costs of training paid pursuant to
the federal Trade Act of 1974 ( 19 U.S.C. Sec. 2101 et seq.), as
amended by the federal Trade Act of 2002 (Public Law 107-210).
(b) "Training or retraining benefits, allowances, or stipends," as
used in this section, means discretionary use, cash in-hand payments
available to the individual to be used as he or she sees fit. Direct
and indirect compensation for training costs, such as tuition,
books, and supplies, is excluded as a condition of approval.
SEC. 13. 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 address the fiscal crisis facing the unemployment
insurance system in this state, it is necessary that this act take
effect immediately.