Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1514

Introduced by Committee on Insurance

March 5, 2015

An act to amend Sections begin insert 1269, 1271, 1272, end insert 2614, 4902, and 4903 of the Unemployment Insurance Code, relating to unemployment insurance begin insert , and making an appropriation therefor end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 1514, as amended, Committee on Insurance. Employment Development Department: begin insert training benefits end insert begin insert : end insert reports.

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Existing law provides unemployment compensation benefits to eligible persons who are unemployed through no fault of their own. Existing law, the California Training Benefits Program, until January 1, 2019, authorizes an unemployed individual, who is otherwise eligible for unemployment benefits, to apply to the Employment Development Department for a determination of potential eligibility for benefits during a period of training or retraining.

end insert begin insert

Existing law sets forth the eligibility criteria for the program, including that 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.

end insert begin insert

This bill would recast these provisions to permit eligibility for a member of a union or trade association, a participant in training sponsored by an employer, or an individual who is a participant in a state or federally approved apprenticeship program.

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Existing law sets the maximum benefit amount under the program at 52 times the weekly benefit amount, including the maximum award under the parent compensation claim, as defined, and requires that benefits received under any federal unemployment compensation law be included as benefits payable under these provisions.

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This bill recast those provisions to set forth certain federally funded unemployment benefits to be included within these benefits. Because the bill would make changes to existing eligibility requirements for training and benefits, which would result in additional amounts being payable from the Unemployment Fund for those benefits, the bill would make an appropriation.

end insert begin insert

This bill would make changes to delete references to the repealed federal Workforce Investment Act of 1998 and instead refer to the successor federal Workforce Innovation and Opportunity Act.

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Existing law requires the Director of Employment Development to report to the Legislature by June 30 of each year on the Employment Development Department’s fraud deterrence and detection activities.

This bill would instead require the report to be made to specified committees of the Legislature.

Existing law requires the director to prepare and report to specified committees of the Legislature and the State Office of Information Technology on the department’s automation plans, including recommendations on improvements and long-term goals and strategies. Existing law requires the report to provide a strategic information plan.

This bill would revise what committees are to receive the report, as specified, and replace references to the State Office of Information Technology with the California Department of Technology.

Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 1269 of the end insert begin insert Unemployment Insurance
Code end insert begin insert is amended to read: end insert

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 applies:

(a) The training is authorized by the federal begin delete Workforce
Investment Act of 1998 (Public Law 105-220) end delete begin insert Workforce
Innovation and Opportunity Act (Public Law 113-128) end insert 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 begin delete amended by the federal Trade
Act of 2002 (Public Law 107-210), and as those acts may be
amended by the federal Trade and Globalization Adjustment
Assistance Act of 2009, enacted under the federal American
Recovery and Reinvestment Act of 2009 (Public Law 111-5), end delete
begin insert amended, end insert 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) 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) (1) 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 begin delete Workforce Investment Act
of 1998 (Public Law 105-220), or end delete begin insert Workforce Innovation and
Opportunity Act (Public Law 113-128), or the individual end insert is a
permanent or probationary public school teacher who is a
participant in a credential preparation program or training program
approved or accredited by the Commission on Teacher
Credentialing for additional certification in math, science, or special
education, for kindergarten and grades 1 to 12, inclusive, and was
laid off. The credential preparation program or training program
shall only be approved if a permanent or probationary public school
teacher enrolls in the training within three years of being laid off
from the public school employer.

(2) The changes made to this subdivision by begin delete the act adding this
paragraph end delete begin insert Chapter 278 of the Statutes of 2012, end insert shall become
operative on January 1, 2014.

(e) The individual is a journey level begin delete union end delete member begin insert of a union
or trade association, or is a participant in training sponsored by
an employer, end insert 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 begin delete employment. end delete begin insert employment,
or the individual is a participant in a state or federally approved
apprenticeship program. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1271 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
amended to read: end insert

1271.  

(a) Any unemployed individual receiving unemployment
compensation benefits payable under this division, who applies
for a determination of potential eligibility for benefits under this
article no later than the 16th week of his or her receiving these
benefits, and is determined eligible for benefits under this article,
is entitled to a training extension on his or her unemployment
compensation claim, if necessary, to complete approved training.

(b) The training extension shall provide the claimant with a
maximum of 52 times the weekly benefit begin delete amount, end delete begin insert of the parent
unemployment compensation claim, end insert which shall begin delete include the
maximum benefit award on the parent unemployment
compensation claim. end delete begin insert be reduced by all of the following: end insert

begin insert

(1) The maximum benefit award on the parent unemployment
compensation claim.

end insert begin insert

(2) Benefits payable during the period of approved training on
any other unemployment compensation claim filed pursuant to this
chapter, to the extent permitted by law.

end insert begin insert

(3) Benefits payable during the period of approved training
under any state or federal unemployment compensation law, to
the extent permitted by state or federal law, including, but not
limited to, all of the following:

end insert begin insert

(A) Extended unemployment compensation benefits payable
under Part 3 (commencing with Section 3501).

end insert begin insert

(B) Federal-state extended compensation benefits payable under
Part 4 (commencing with Section 4001).

end insert begin insert

(C) Trade readjustment allowance benefits payable under the
federal Trade Act of 1974 (19 U.S.C. Sec. 2101 et seq.), as
amended.

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(c) The parent unemployment compensation claim shall be the
unemployment compensation claim in existence at the time the
claimant is determined eligible for benefits pursuant to subdivision
(a).

(d) Benefits payable under this section are subject to the
following limitations:

(1) The individual shall remain eligible for benefits under this
article for all weeks potentially payable under this section.

(2) The individual shall file any unemployment compensation
claim to which he or she becomes entitled under state or federal
law, and shall draw any unemployment compensation benefits on
that claim until it has expired or has been exhausted, in order to
maintain his or her eligibility under this article.

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(3) To the extent permitted by federal law, benefits payable
under any federal unemployment compensation law shall be
included as benefits payable under this section.

end delete

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begin insert SEC. 3. end insert   

end insert

begin insert Section 1272 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
amended to read: end insert

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 begin delete regulations,
executed by a responsible person connected with the training or
retraining program end delete begin insert regulations, end insert certifying that he or she is enrolled
in and satisfactorily pursuing the training or retraining course of
instruction.

begin delete SECTION 1. end delete
begin insert SEC. 4. end insert   

Section 2614 of the Unemployment Insurance Code
is amended to read:

2614.  

The director shall report to the Assembly Committee on
Insurance, Assembly Committee on Labor and Employment, and
the Senate Committee on Labor and Industrial Relations by June
30 of each year on the department’s fraud deterrence and detection
activities.

begin delete SEC. 2. end delete
begin insert SEC. 5. end insert   

Section 4902 of the Unemployment Insurance Code
is amended to read:

4902.  

The report, required by Section 4901, shall be transmitted
to the Legislative Analyst, the Assembly Committees on Insurance,
Labor and Employment, and Budget, the Senate Committees on
Industrial Relations and Budget and Fiscal Review, the Department
of Finance, and the Governor, on or before February 1 of each
even-numbered year. The report shall do all of the following:

(a) Provide a strategic information technology plan that describes
the long-term goals and strategies which shall be undertaken by
the department to create an information technology environment
that will not only support the achievement of the department’s
strategic business mission and goals but set the foundation for
using information technology to make substantial and sustainable
improvements in how it conducts business. The plan shall cover
a 10-year planning horizon and include the department’s
information vision, its information management principles, and
long-term goals and strategies for achieving its information vision.

(b) Provide a tactical information plan of specific automation
and infrastructure projects to be undertaken within three years of
the date of the report. The plan shall include project description
and scope, consistency with the strategic information plan,
relationship to other projects, priority of development, estimated
project costs and benefits, and improvements in services. For
automation projects, it shall also provide reductions in personnel
and operating costs, and identification of how personnel and cost
savings will be used, transferred, or otherwise accounted for.

(c) Not necessarily be in addition to or replace any reports now
submitted by the director to the California Department of
Technology.

begin delete SEC. 3. end delete
begin insert SEC. 6. end insert   

Section 4903 of the Unemployment Insurance Code
is amended to read:

4903.  

(a) Thirty days prior to the release of the report identified
in Section 4901, the director shall submit it to the California
Department of Technology, which shall review and comment on
it. These comments shall be attached to the report by the director
and distributed with the report.

(b) When commenting on the report, the California Department
of Technology shall include, but not be limited to, an assessment
of whether:

(1) The requirements for the report have been met.

(2) The strategic plan is consistent with the formal strategic plan
submitted separately to the California Department of Technology.

(3) The costs and benefits identified in the report are consistent
with the projects previously submitted for approval or contained
in the Information Management Annual Plans.