BILL NUMBER: AB 2058	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 21, 2010
	AMENDED IN ASSEMBLY  JUNE 2, 2010
	AMENDED IN ASSEMBLY  MAY 28, 2010
	AMENDED IN ASSEMBLY  APRIL 29, 2010
	AMENDED IN ASSEMBLY  APRIL 6, 2010

INTRODUCED BY   Assembly Member Block
   (Coauthors: Assembly Members Arambula, Beall, Blumenfield,
Hayashi, Bonnie Lowenthal, Solorio, and Torrico)
   (Coauthors: Senators Correa and DeSaulnier)

                        FEBRUARY 18, 2010

   An act to amend Sections 1266, 1267, 1269, 1271.5, and 1272 of, to
amend the heading of Article 1.5 (commencing with Section 1266) of
Chapter 5 of Part 1 of Division 1 of, and to add Sections 1266.1
 and 1269.1   , 1269.1, and 1274.5  to, the
Unemployment Insurance Code, relating to unemployment insurance, and
making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2058, as amended, 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 establish the California Training Benefits
Program, which, among other things, would revise those eligibility
requirements to, instead, specify that an unemployed individual who
qualifies for unemployment compensation benefits, extended duration
benefits, or federal-state extended benefits or any federally funded
unemployment compensation benefits, and applies for the program shall
be deemed to automatically be eligible for the program during a
period of training or retraining.
   Existing law requires that a determination of potential
eligibility for training or retraining benefits be issued to an
unemployed individual if the director makes a specified finding.
   This bill would, instead, require that a determination of
automatic eligibility for training or retraining be issued to an
unemployed individual if any of specified conditions apply. The bill
would also require that, if training or retraining is not authorized
under those provisions governing automatic eligibility for those
benefits, a determination of potential eligibility for benefits be
issued to the unemployed individual if the director finds that
specified criteria apply.
   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, or online, 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.
   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.  The bill would require the department, not later
than September 1, 2016, to prepare and submit to the Governor and the
Legislature a report evaluating the effectiveness of the program,
containing data and information as prescribed. 
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The heading of Article 1.5 (commencing with Section
1266) of Chapter 5 of Part 1 of Division 1 of the Unemployment
Insurance Code is amended to read:

      Article 1.5.   California Training Benefits Program


  SEC. 2.  Section 1266 of the Unemployment Insurance Code is amended
to read:
   1266.  This article shall be known, and may be cited, as the
California Training Benefits Program.
  SEC. 3.  Section 1266.1 is added to the Unemployment Insurance
Code, to read:
   1266.1.  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 that would make them competitive
in the labor market. They are in need of training or retraining 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 jobs in demand
occupations and thus avoid long-term unemployment.
  SEC. 4.  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,
those benefits shall not be denied to an individual for any week
because he or she is in eligible training or retraining, as described
in Section 1269 or 1269.1, 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. 5.  Section 1269 of the Unemployment Insurance Code is amended
to read:
   1269.  A determination of automatic 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 (Public Law 106-220) 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), and as those acts may be amended by the
Trade and Globalization Adjustment Assistance Act of 2009, enacted
under the American Recovery and Reinvestment Act of 2009 (Public Law
111-5), 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) The individual is a participant in training with a provider
that is certified and on the state's Eligible Training Provider List
(ETPL), as authorized by the federal Workforce Investment Act
 (Public Law 106-220)   (Public Law 105-220)
 .
   (e) The individual is a journey level union member and the
training or retraining course of instruction is industry-related
training necessary due to changes in technology, or industry demands,
or is necessary to retain employment or to become more competitive
in obtaining employment.
  SEC. 6.  Section 1269.1 is added to the Unemployment Insurance
Code, to read:
   1269.1.  If the training is not authorized under Section 1269, a
determination of potential eligibility for benefits under this
article shall be issued to an unemployed individual if the director
finds that all of the following apply:
   (a) 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
mental or physical disability that prohibits the individual from
utilizing existing occupational skills.
   (b) 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.
   (c) 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.
   (d) The training or retraining course of instruction is one
approved by the director and can be completed within a reasonable
period of time.
   (e) 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 employment in a demand
occupation.
   (f) The individual can be reasonably expected to complete the
training or retraining successfully.
   (g) The beginning date of training is more than three years after
the beginning date of training last approved for the individual under
this subdivision.
   (h)  (1)    If a determination of potential
eligibility for benefits is issued under this section, except under
subdivision (c), and when federal extended unemployment insurance
benefits are in effect, the director may find that an unemployed
individual is eligible for training benefits if the individual is
enrolled in a community college or other accredited postsecondary
education program with the purpose of preparing the applicant in
academic or job skills, including remedial training, that will
increase employment opportunities or that leads to an
industry-recognized credential or certificate designed for a specific
occupation. If an individual is approved for training benefits under
this subdivision and the federal extended unemployment insurance
benefits are subsequently no longer in effect, the individual shall
remain eligible as long as he or she is attending the training and is
meeting the provisions of this article. 
   (2) For purposes of this section, the following terms have the
following meanings:  
   (A) "Accredited" means an institution recognized or approved by an
accrediting agency recognized by the United States Department of
Education.  
   (B) "Accrediting agency" is an agency recognized by the United
States Department of Education. 
  SEC. 7.  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 shall convey this information verbally, in written form,
or online. 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.
Information required by this section shall be made available on the
department's Internet Web 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. 8.  Section 1272 of the Unemployment Insurance Code is amended
to read:
   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, 1269.1, or 1271.
   (b) He or she submits a certification, as prescribed by the
Employment Development Department through regulations, 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. 9.    Section 1274.5 is added to the  
Unemployment Insurance Code   , to read:  
   1274.5.   Not later than September 1, 2016, the department shall
prepare and submit to the Governor and the Legislature a report
evaluating the effectiveness of the California Training Benefits
Program required to be implemented pursuant to this article. The
report shall include, at a minimum, all of the following data for
calendar years 2007 through 2014, inclusive:
   (a) The number of individuals determined to be eligible for the
program as of December 31, 2015.
   (b) The number of individuals determined to be eligible for the
program under each subdivision of Section 1269.
   (c) The number of individuals determined to be eligible for the
program under Section 1269.1.
   (d) The number of individuals who participated in the program and
earned subsequent wages in the following calendar year.
   (e) Recommendations to improve the effectiveness and efficiency of
the program.