BILL ANALYSIS Ó SB 1314 Page 1 SENATE THIRD READING SB 1314 (Monning) As Amended June 19, 2014 Majority vote SENATE VOTE :36-0 INSURANCE 13-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Perea, Hagman, Allen, |Ayes:|Gatto, Bigelow, | | |Bradford, | |Bocanegra, Bradford, Ian | | |Ian Calderon, Cooley, | |Calderon, Campos, | | |Dababneh, Frazier, Beth | |Donnelly, Eggman, Gomez, | | |Gaines, Gonzalez, Olsen, | |Holden, Jones, Linder, | | |V. Manuel Pérez, | |Pan, Quirk, | | |Wieckowski | |Ridley-Thomas, Wagner, | | | | |Weber | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Extends the time to appeal unemployment insurance (UI) decisions from 20 to 30 days. EXISTING LAW : 1)Establishes the UI system to provide partial wage replacement benefits to workers who lost their job through no fault of their own. 2)Permits employers and claimants to appeal UI determinations made by the Employment Development Department (EDD). 3)Requires appeals to be filed within 20 days of the claimant or employer receiving notice of EDD's determination. 4)Establishes the California Unemployment Insurance Appeals Board to hear appeals of UI determinations made by EDD. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Minor and absorbable costs to EDD to revise various forms, notices, and publications with the new response timeframe SB 1314 Page 2 (Unemployment Administration Fund). 2)Because EDD currently has flexibility to grant benefits if appeals are submitted late, this bill is not expected to affect a large number of people. EDD submits all appeals received to the California UI Appeals Board, even they are received them after the 20-day deadline. If an appeal is submitted late, the claimant must explain to the Administrative Law Judge why the appeal was late, and the Judge may decide the claimant had good cause for the late submission, and grant UI benefits regardless of missing the deadline. However, on the margins, the bill could increase the number of individuals receiving UI benefits. If 100 individuals statewide, out of the approximately 400,000 appeals closed annually, are able to appeal and receive an average of 15 weeks of UI benefits as a result of the increased time this bill allows for appeals, increased costs of about $450,000 (Unemployment Fund). COMMENTS : Purpose. According to the author, many Californians who have been denied unemployment benefits are not able to meet the current 20-day deadline to file an appeal because they have been unable to contact an EDD representative or because they were not able to receive call-backs from their caseworkers. Unfortunately, these delays have resulted in claimants missing an appeals deadline to challenge the unemployment insurance benefit decision. This bill will extend the deadline to appeal the denial by EDD of unemployment insurance benefits from 20 to 30 days. This extension will allow sufficient time for claimants to: 1) consult with English-as-a-second-language interpreters; 2) seek outside professional or legal counsel; 3) seek accommodation for special-needs; and/or 4) if corrections or revisions are necessary, provide enough time to submit the required documents by mail. Analysis Prepared by : Paul Riches / INS. / (916) 319-2086 FN: 0004935 SB 1314 Page 3