BILL NUMBER: AB 2538 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Niello
FEBRUARY 19, 2010
An act to amend Sections 1755, 1757, 2124, 2626, 2629, and 3075
of, and to add Section 1755.5 to, the Unemployment Insurance Code,
relating to unemployment insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2538, as introduced, Niello. Unemployment insurance:
eligibility for benefits: notification.
Existing law requires the Employment Development Department to
implement and administer the unemployment insurance program in this
state, and provides for the payment of unemployment compensation
benefits to eligible individuals who are unemployed through no fault
of their own. Existing law provides for penalties and interest that
if any person or employing unit is delinquent in the payment of any
contributions for unemployment insurance, and authorizes the Director
of Employment Development to enforce any state tax liens against a
delinquent account if proper notice is given. Existing law requires
that, if the levy is made on a deposit or credits or personal
property in the possession or under the control of a bank or savings
and loan association, the notice of levy shall be delivered or mailed
to the branch or office of the bank or savings and loan association
at which the deposit is carried or at which credits or personal
property is held.
This bill would instead require that, if the levy is made on a
deposit or credits or personal property in the possession or under
the control of a bank or savings and loan association, the notice of
levy shall be delivered or mailed to the centralized processing unit
or location designated by that bank or savings and loan association
where the credits or other property is held. To implement those
provisions, the bill would also authorize the department to serve
notice to an address for a bank or savings and loan association by
magnetic media, electronic transmission, or other electronic
technology.
Existing law requires that the place of trial for specified
violations of unemployment insurance laws be in the county of
residence or principal place of business of the defendant or
defendants, except as provided.
This bill would also specify that the place of trial for those
violations may also be in any county where the defendants were
transacting the business that resulted in the alleged violations.
Existing law provides for the payment of disability benefits to
eligible individuals who are not able to work due to a disability,
injury, or illness. Existing law requires that an individual be
eligible to receive, for any day, if otherwise eligible, disability
benefits reduced by the amount of the maintenance allowance and
permanent disability indemnity, if specified conditions are met.
Existing law makes an individual ineligible for disability benefits
for any day of unemployment and disability for which he or she has
received, or is entitled to receive, or is entitled to including a
specified maintenance allowance paid for vocational rehabilitation.
This bill would instead require that an individual be entitled to
receive, for any day, if otherwise eligible, disability benefits
reduced by the amount of the permanent disability indemnity if the
permanent disability indemnity is less than the amount an individual
would otherwise receive as disability under those provisions. The
bill would exclude the maintenance allowance paid for vocational
rehabilitation from that definition of "other benefits" for purposes
of determining eligibility for disability benefits.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1755 of the Unemployment Insurance Code is
amended to read:
1755. If any person or employing unit is delinquent in the
payment of any contributions, penalties or interest provided for in
this division, the director may, not later than three years after the
payment became delinquent or within 10 years after the last entry of
a judgment under Article 5 (commencing with Section 1815) or within
10 years after the last recording or filing of a notice of state tax
lien under Section 7171 of the Government Code, collect the
delinquency or enforce any liens by levy served either personally or
by certified first-class mail, to all
persons having in their possession or under their control any credits
or personal property belonging to the delinquent person or employing
unit, or owing any debts to the person or employing unit at the time
of the receipt of the notice of levy or coming into their possession
or under their control for the period of one year from the time of
receipt of the notice of levy. Any person upon whom a levy has been
served having in his or her possession or under his or her control
any credits or personal property belonging to the delinquent person
or employing unit or owing any debts to the person or employing unit
at the time of the receipt of the levy or coming into his or her
possession or under his or her control for the period of one year
from the time of receipt of the notice of levy, shall surrender the
credits or personal property to the director or pay to the director
the amount of any debt owing the delinquent employer within five days
of service of the levy, and shall surrender the credits or personal
property, or the amount of any debt owing to the delinquent employer
coming into his or her possession or under his or her control within
one year of receipt of the notice of levy within five days of the
date of coming into possession or control of the credits or personal
property, or the amount of any debt owing to the delinquent employer
is incurred. Any person in possession of any credits or personal
property or owing any debts to the delinquent person or employing
unit who surrenders the credits or personal property or pays the
debts owing the delinquent person or employing unit shall be
discharged from any obligation or liability to the delinquent person
or employing unit with respect to the credits or personal property
surrendered or debts paid to the director. If the levy is made on a
deposit or credits or personal property in the possession or under
the control of a bank or savings and loan association, the notice of
levy shall be delivered or mailed to the branch or office of
the bank or savings and loan association at which the deposit is
carried or at which credits or personal property is held
centralized processing unit or location designated by that bank
or savings and loan association where the credits or other property
are held . If the levy is made on a bank or savings and loan
association it will apply to all credits or personal property as
provided in this section, except that it will apply to credits and
personal property in a deposit account, as defined in paragraph (29)
of subdivision (a) of Section 9102 of the Commercial Code, only at
the time the notice of levy is received by the bank or savings and
loan association.
SEC. 2. Section 1755.1 is added to the Unemployment Insurance
Code, to read:
1755.1. (a) In order to implement Section 1755, the department
may serve notice to an address for any bank or savings and loan
association by means of magnetic media, electronic transmission, or
other electronic technology.
(b) For purposes of this section, the term "address" shall mean a
telephone or modem number, facsimile machine, or any other reference
number designated by the bank or savings and loan association to
receive data by electronic means.
SEC. 3. Section 1757 of the Unemployment Insurance Code is amended
to read:
1757. Any person notified pursuant to Section 1755 or 1755.5
who fails or refuses to surrender any credits or other
personal property, or pay any debts owing to the delinquent employer,
up to the amount specified in the levy, shall be liable in his own
person and estate to the director in an amount equal to the value of
the credits or other personal property in the amount of the debt, but
not exceeding the amount specified in the notice of levy, if solely
by reason of such failure or refusal, the department is unable to
recover the contributions, penalties, or interest owing by the person
with respect to which the notice was given.
SEC. 4. Section 2124 of the Unemployment Insurance Code is amended
to read:
2124. The place of trial for offenses enumerated in this chapter
shall be in the county of residence or principal place of business of
the defendant or defendants, or in any county where the
defendant or defendants were transacting business that resulted in
the alleged offenses, except that if the defendant has no
residence or principal place of business in this state, the trial
shall be held in the County of Sacramento.
SEC. 5. Section 2626 of the Unemployment Insurance Code is amended
to read:
2626. (a) An individual shall be deemed disabled on any day in
which, because of his or her physical or mental condition, he or she
is unable to perform his or her regular or customary work.
(b) For purposes of this section, "disability" or "disabled"
includes:
(1) Illness or injury, whether physical or mental, including any
illness or injury resulting from pregnancy, childbirth, or related
medical condition.
(2) Inability to work because of a written order from a state or
local health officer to an individual infected with, or suspected of
being infected with, a communicable disease.
(3) Acute alcoholism being medically treated or, to the extent
specified in Section 2626.1, resident status in an alcoholic recovery
home.
(4) Acute drug-induced illness being medically treated or, to the
extent specified in Section 2626.2, resident status in a drug-free
residential facility.
(c) For purposes of this section, if an individual participates in
a vocational rehabilitation plan under Article 2.6 (commencing with
Section 4635) of Chapter 2 of Part 2 of Division 4 of the Labor Code,
regular or customary work shall, upon completion of the plan, mean
only that employment for which the individual has been retrained
under the vocational rehabilitation plan.
SEC. 6. Section 2629 of the Unemployment Insurance Code is amended
to read:
2629. (a) Except as provided in this section, an individual is
not eligible for disability benefits under this part for any day of
unemployment and disability for which he or she has received, or is
entitled to receive, "other benefits" in the form of cash payments.
(b) "Other benefits," as used in this section and Section 2629.1,
means any of the following:
(1) Temporary disability indemnity under a workers' compensation
law of this state or of any other state or of the federal government
including, for purposes of this code and Sections 4903 and
4904 of the Labor Code, a maintenance allowance paid pursuant to
Section 139.5 of the Labor Code .
(2) Temporary disability benefits under any employer's liability
law of this state or of any other state or of the federal government.
(3) Permanent disability benefits for the same injury or illness
under the workers' compensation law of this state, any other state,
or the federal government.
(c) Except for a maintenance allowance paid pursuant to
Section 139.5 of the Labor Code, if If these
"other benefits" are less than the amount an individual would
otherwise receive as disability benefits under this part, he or she
shall be entitled to receive, for that day, if otherwise eligible,
disability benefits under this part reduced by the amount of these
"other benefits."
(d) An individual shall be entitled to receive, for any day, if
otherwise eligible, disability benefits under this part reduced by
the amount of the maintenance allowance and
permanent disability indemnity if both of the following
conditions are met: the permanent disability indemnity
is less than the amount an individual would otherwise receive as
disability benefits under this part.
(1) The individual elects to receive the maximum permanent
disability indemnity pursuant to paragraph (2) of subdivision (d) of
Section 139.5 of the Labor Code.
(2) The sum of the maintenance allowance and permanent disability
indemnity is less than the amount an individual would otherwise
receive as disability benefits under this part.
SEC. 7. 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
he deems necessary for the payment of disability benefits for a
reasonable future period. The Controller shall draw his warrant for
any claim presented by the director for such payment and the
Treasurer shall pay the warrant. Upon the withdrawal thereof, such
sums shall be deposited in a disability benefit payment account in
such bank or public depositary and under such conditions as the
director determines, with the approval of the Department of Finance.
Such 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 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 account may be refunded. The procedure prescribed by such
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
might otherwise be applicable to withdrawals from such account.