BILL NUMBER: AB 2538 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 28, 2010
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 1755.1
to, the Unemployment Insurance Code, relating to unemployment
insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2538, as amended, 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 collect the
delinquency or enforce any state tax liens against a
delinquent account if proper notice is given by levy
served personally or by certified mail . 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 authorize the director to serve the levy by
first-class mail instead of certified mail. 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 other benefits,
as defined, in the form of cash payments, 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 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 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 1755.1 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.
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.
(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) 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 permanent disability indemnity if the 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 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.