BILL ANALYSIS                                                                                                                                                                                                    Ó






                 Senate Committee on Labor and Industrial Relations
                              Senator Ben Hueso, Chair

          Date of Hearing: April 24, 2014              2013-2014 Regular  
          Session                              
          Consultant: Deanna D. Ping                   Fiscal:Yes
                                                       Urgency: No 
          
                                  Bill No: SB 1314
                                   Author: Monning
                      As Introduced/Amended: February 21, 2014
          

                                       SUBJECT
          
              Unemployment insurance benefits: determination: appeals.


                                      KEY ISSUE

            Should the legislature extend the deadline for claimants and  
              employers to appeal an unemployment benefits eligibility  
                              determination to 30 days?

                                      ANALYSIS
          
           
          Existing law  states that that the Employment Development  
          Department considers the facts submitted by an employer to make  
          a determination as to the claimant's eligibility for  
          unemployment compensation benefits. (Unemployment Insurance  
          §1328)

           Existing law  states that if after the notice of determination  
          the employer acquires knowledge of facts that may affect the  
          eligibility of the claimant, the employer shall submit the  
          acquired facts within 10 days to the Employment Development  
          Department. (Unemployment Insurance §1328)
           
          Existing law  authorizes an appeal of a determination or  
          reconsidered determination to an administrative law judge within  
          20 days from mailing or personal service of notice of the  
          determination. (Unemployment Insurance §1328)
           
          Existing law  requires an administrative law judge to affirm,  
          reverse, modify, or set aside an appeal of a determination of  









          eligibility for benefits and requires the administrative law  
          judge to notify certain parties of the decision, as specified.  
          (Unemployment Insurance §1334)
           
          Under existing law,  the California Unemployment Insurance  
          Appeals Board (CUIAB) is an independent administrative court  
          system for workers and employers seeking to challenge decisions  
          made by the Employment Development Department regarding benefits  
          for unemployment insurance or disability insurance.  Appeals are  
          the first opportunity for all parties to present evidence before  
          an Administrative Law Judge (ALJ) and have that ALJ decide the  
          case. The ALJ's decision may be appealed to a seven-member Board  
          appointed by the Governor and the Legislature. The Board's  
          decision is final, unless overturned by the California Superior  
          Court.  

          Existing law  further states that the administrative law judge's  
          decision becomes final unless a further appeal is initiated to  
          the California Unemployment Appeals Board within 20 days. 
          (Unemployment Insurance §1334)

           Existing law  states that the 20 day limitation may be extended  
          for good cause. 
           

          This Bill  would extend the deadline for appeal to an  
          administrative law judge and to the California Unemployment  
          Insurance Appeals Board to 30 days. 


                                      COMMENTS

          
           1.Background on Unemployment Insurance (UI) 
           
            UI is a federal-state program, created by federal law and  
            administered under state and federal laws by state employees.  
            It is financed by unemployment program tax contributions from  
            employers. 

            The UI program was established as a part of the New Deal under  
            the Social Security Act of 1935. Through a system of payments  
          Hearing Date:  April 24, 2013                            SB 1314  
          Consultant: Deanna D. Ping                               Page 2

          Senate Committee on Labor and Industrial Relations 
          








            made directly to unemployed workers, UI ensures that at least  
            some of life's necessities, most notably food, shelter, and  
            clothing can be met while an individual actively searches for  
            new work. 

            UI provides partial wage replacement to unemployed workers who  
          must: 

                 Have received enough wages during the base period to  
               establish a claim.
                 Be totally or partially unemployed.
                 Be unemployed through no fault of his/her own.
                 Be physically able to work.
                 Be available for work which means to be ready and  
               willing to immediately accept work.
                 Be actively looking for work.
                 Meet eligibility requirements each week benefits are  
               claimed.

          2.  Need for this bill?  
           
            Under current law, a claimant or employer has 20 days to  
            appeal an unemployment benefit eligibility determination.  
            According to the author's office, constituents have expressed  
            concern to the district office about the deadline due to  
            needing more time before submitting an appeal to seek out an  
            interpreter or legal counsel. SB 1314 would extend the  
            deadline to 30 days for an appeal, thereby giving an  
            additional 10 days for an eligibility determination appeal to  
            be submitted. 

          2.  Proponent Arguments  :
            
            According to the author's office, the introduction of SB 1314  
            was prompted by constituent concerns with the deadline for  
            submitting an eligibility determination appeal. The author's  
            district office received calls from constituents needing more  
            time before submitting an appeal due to their need to seek  
            assistance from an interpreter or professional/legal counsel.  
            The author contends that SB 1314 would extend the deadline to  
            appeal an eligibility determination from 20 days to 30 days,  
            which would provide claimants with more time in case they need  
          Hearing Date:  April 24, 2013                            SB 1314  
          Consultant: Deanna D. Ping                               Page 3

          Senate Committee on Labor and Industrial Relations 
          








            additional help.  

            Proponents, such as the California Association for Health  
            Services at Home (CAHSAH), argue that SB 1314 would provide a  
            much needed reprieve for employers by extending the time frame  
            for appealing unemployment insurance determinations to 30  
            days. CAHSAH argues that the extra ten days provides more time  
            for employers to provide a clear understanding of the causes  
            for the employee's termination, which would especially benefit  
            small businesses struggling to keep up with regulatory  
            obligations. 

          3.  Opponent Arguments  :

            None on file. 




                                       SUPPORT
          
          California Association for Health Services at Home
          

                                     OPPOSITION
          
          None on file. 














          Hearing Date:  April 24, 2013                            SB 1314  
          Consultant: Deanna D. Ping                               Page 4

          Senate Committee on Labor and Industrial Relations