BILL ANALYSIS Ó AB 1514 Page 1 Date of Hearing: April 8, 2015 ASSEMBLY COMMITTEE ON INSURANCE Tom Daly, Chair AB 1514 Committee on Insurance - As Amended March 26, 2015 SUBJECT: Employment Development Department: reports SUMMARY: Makes minor technical changes to the California Training Benefits Program (CTB) and updates EDD reporting requirements. Specifically, this bill: 1)Updates references to outdated federal workforce statutes in sections governing the California Training Benefits (CTB) program. AB 1514 Page 2 2)Requires the Employment Development Department (EDD) to automatically qualify individuals participating in an employer sponsored training program for benefits through the CTB program. 3)Requires the Employment Development Department (EDD) to automatically qualify individuals participating in an apprenticeship program approved by either the state or federal government. 4)Provides that benefits granted through the CTB program shall be reduced by the amount of any other unemployment insurance benefits for which the individual is eligible during the period of training. 5)Eliminates the requirement that claimants receiving CTB benefits have their weekly certification of benefits signed by their training provider. 6)Updates existing EDD reporting requirements. EXISTING LAW: 1)Provides unemployment insurance (UI) benefits to workers who are laid off or leave their jobs for good cause. 2)Requires recipients of UI benefits to answer the following AB 1514 Page 3 questions for each week of benefits claimed: a. Were you were healthy enough to work? b. Were you available to accept full-time work? c. Did you look for work? d. Did you refuse any work? e. Did you begin attending school or training? f. Did you earn any money? 3)Establishes the CTB within the UI program to provide workers with extended unemployment benefits if they are enrolled in an approved training program. FISCAL EFFECT: Undetermined COMMENTS: 1)Purpose . The bill makes the following minor changes to the California Training Benefits (CTB) program: a. Updates reference to Workforce Investment Act which was superseded by the recently enacted Workforce Innovation and Opportunity Act. AB 1514 Page 4 b. Streamlines the approval process for individuals in apprenticeship training and for journey-level members of employer or trade associations. These individuals are typically approved for participation under current law, but this bill would streamline the process by adding them to the "automatic" approval category. c. Clarifies the calculations for CTB Training Extensions by clarifying that training extension benefits cannot be paid when other types of UI benefits are available. d. Streamlines the process to verify an individual's ongoing attendance in a training program by eliminating the requirement for a signature from the training instructor on every bi-weekly claim form. This will allow claimants receiving CTB benefits to certify for benefits online or by phone. 2)Training Benefits . The CTB program allows unemployed Californians who need further job training to be competitive in the California labor market to receive UI benefits without complying with the usual requirement to look for other work and receive up to one year of benefits. The CTB program provides financial support to individuals while they are participating in a qualified job training program instead of providing partial wage replacement while the individual looks for work. REGISTERED SUPPORT / OPPOSITION: Support AB 1514 Page 5 Employment Development Department (sponsor) Opposition None received Analysis Prepared by:Paul Riches / INS. / (916) 319-2086