Amended in Assembly March 29, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2886

Introduced by Committee on Insurance (Assembly Members Daly (Chair), begin insert Melendez, Travis  end insert begin insert Allen, end insert Bigelow, Calderon, begin insert Chu, end insert Cooley, begin insert Cooper, end insert Dababneh, Frazier, Gatto, Gonzalez, and Rodriguez)

February 25, 2016

An act to begin delete amend Section 2707.2 and 2737 of end delete begin insert amend, repeal, and add Sections 2707.2, 2707.4, and 2737 of, end insert begin insert to add Section 2707.8 to, and to add and repeal Sections 2707.7 and 2737.5 of, end insert the Unemployment Insurance Code, relating to disability compensation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2886, as amended, Committee on Insurance. Disability benefits: eligibility determinations: begin insert benefit computations: end insert overpayment determinations: appeals.

Existing law authorizes the Employment Development Department to administer the disability compensation program, which provides for the partial compensation for the wage losses suffered by eligible individuals unemployed because of sickness or injury. Existing law requires, after a claim for benefits is filed, the department to determine the eligibility of the claimant for benefits and to notify the claimant of the determination. Existing law allows the claimant to appeal to an administrative law judge within 20 days from mailing or personal service of the begin delete determination notice. end delete begin insert determination, which may be extended for good cause. end insert

This begin insert bill would provide that, before March 1, 2018, any individual who submits an appeal to an administrative law judge within 30 days from the mailing or personal service of the determination has good cause to extend the 20-day period. The end insert bill would begin insert , commencing March 1, 2018, end insert extend that appeal period to within 30 days from mailing or personal service of the determination notice.

begin insert

Existing law generally requires, upon the filing of a claim for disability benefits, the Employment Development Department to promptly make a computation on the claim setting forth the maximum amount of benefits potentially payable during the disability benefit period and the weekly benefit amount and to promptly notify the claimant of the computation. Existing law allows the claimant to, within 20 days after the mailing or personal service of the notice of computation or recomputation, protest the accuracy of the computation or recomputation, requires the department to consider any protest and notify the claimant of the recomputation or denial of recomputation, and allows the claimant to appeal to an administrative law judge within 20 days from mailing or personal service of the notice of denial of recomputation, which may be extended for good cause.

end insert begin insert

This bill would provide that, before March 1, 2018, any individual who submits an appeal to an administrative law judge within 30 days from the mailing or personal service of the notice has good cause to extend the 20-day period. The bill would, commencing March 1, 2018, extend that period allowed to the claimant to protest the accuracy of the computation or recomputation to the department to within 30 days of the mailing or personal service of the notice. The bill would also, commencing March 1, 2018, extend the appeal period to the administrative law judge to within 30 days from mailing or personal service of the notice of denial of recomputation.

end insert

Under existing law, any person who receives an overpayment of disability benefits is liable for the amount overpaid unless specified conditions apply. Existing law requires the Director of Employment Development to determine the amount of the overpayment and to notify the recipient of the basis of the overpayment determination by mail or personal service, as provided. Existing law allows the person affected to file an appeal to an administrative law judge within 20 days from the date of mailing or serving of the notice of overpayment determination. Existing law requires, after affording reasonable opportunity for a fair hearing, the administrative law judge to make a decision regarding the findings set forth in the overpayment determination notice, and requires that decision to be final unless within 20 days from the date of notification or mailing of the judge’s decision a further appeal is initiated to the California Unemployment Insurance Appeals Board, as specified.

This begin insert bill would provide that, before March 1, 2018, any individual who submits an appeal to an administrative law judge within 30 days from the mailing or personal service of the notice has good cause to extend the 20-day period. The end insert bill begin delete would end delete begin insert would, commencing March 1, 2018, end insert extend that appeal period to the administrative law judge to within 30 days of mailing or serving of the determination notice. The bill would begin delete also end delete begin insert also, commencing March 1, 2018, end insert extend the appeal period to the appeals board to within 30 days from the date of notification or mailing of the administrative law judge’s decision.

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 2707.2 of the end insert begin insert Unemployment Insurance
Code end insert begin insert is amended to read: end insert

2707.2.  

begin insert (a) end insert begin insert   end insert The department shall consider the facts submitted
by the employer pursuant to Section 2707.1 and make a
determination as to the eligibility of the claimant for benefits. The
department shall promptly notify the claimant of the determination
and the reasons therefor. The claimant may appeal therefrom to
an administrative law judge within 20 days from mailing or
personal service of the notice of determination. The 20-day period
may be extended for good cause. The director shall be an interested
party to any appeal.

begin delete

“Good

end delete

begin insert (b) end insert begin insert   end insert begin insert “Good end insert cause,” as used in this section, shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.

begin insert

(c) This section shall remain in effect only until March 1, 2018,
and as of that date is repealed.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 2707.2 is added to the end insert begin insert Unemployment
Insurance Code end insert begin insert , to read: end insert

begin insert

begin insert 2707.2. end insert   

(a) The department shall consider the facts submitted
by the employer pursuant to Section 2707.1 and make a
determination as to the eligibility of the claimant for benefits. The
department shall promptly notify the claimant of the determination
and the reasons therefor. The claimant may appeal therefrom to
an administrative law judge within 30 days from mailing or
personal service of the notice of determination. The 30-day period
may be extended for good cause. The director shall be an interested
party to any appeal.

(b) “Good cause,” as used in this section, shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.

(c) This section shall become operative on March 1, 2018.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 2707.4 of the end insert begin insert Unemployment Insurance Code end insert

begin insert is amended to read: end insert

2707.4.  

begin insert (a) end insert begin insert   end insert The claimant may, within 20 days after the mailing
or personal service of the notice of computation or recomputation,
protest the accuracy of the computation or recomputation. The
20-day period may be extended for good cause. The department
shall consider any such protest and shall promptly notify the
claimant of the recomputation or denial of recomputation. The
claimant may appeal from a notice of denial of recomputation in
the manner prescribed in Section begin delete 2707. 2. end delete begin insert 2707.2. end insert The director
shall be an interested party to any appeal.

begin delete

“Good

end delete

begin insert (b) end insert begin insert   end insert begin insert “Good end insert cause,” as used in this section, shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.

begin insert

(c) This section shall remain in effect only until March 1, 2018,
and as of that date is repealed.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 2707.4 is added to the end insert begin insert Unemployment
Insurance Code end insert begin insert , to read: end insert

begin insert

begin insert 2707.4. end insert   

(a) The claimant may, within 30 days after the mailing
or personal service of the notice of computation or recomputation,
protest the accuracy of the computation or recomputation. The
30-day period may be extended for good cause. The department
shall consider any such protest and shall promptly notify the
claimant of the recomputation or denial of recomputation. The
claimant may appeal from a notice of denial of recomputation in
the manner prescribed in Section 2707.2. The director shall be an
interested party to any appeal.

(b) “Good cause,” as used in this section, shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.

(c) This section shall become operative on March 1, 2018.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 2707.7 is added to the end insert begin insert Unemployment
Insurance Code end insert begin insert , to read: end insert

begin insert

begin insert 2707.7. end insert   

(a) Notwithstanding Sections 2707.2 and 2707.4, any
individual who submits an appeal under one or more of those
sections to an administrative law judge within 30 days from mailing
or personal service of the applicable notice shall be considered
to have good cause to extend the 20-day period.

(b) This section shall remain in effect only until March 1, 2018,
and as of that date is repealed.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 2707.8 is added to the end insert begin insert Unemployment
Insurance Code end insert begin insert , to read: end insert

begin insert

begin insert 2707.8. end insert   

(a) An administrative law judge, after affording a
reasonable opportunity for fair hearing, shall, unless the appeal
is withdrawn, affirm, reverse, modify, or set aside any
determination that is appealed under this article. The claimant
and the director shall be promptly notified in writing of the
administrative law judge’s decision, together with reasons for the
decision. The decision shall be final unless, within 30 days after
mailing of the decision, further appeal is initiated to the appeals
board pursuant to Section 1336. The 30-day limitation may be
extended for good cause.

(b) “Good cause,” as used in this section, shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 2737 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
amended to read: end insert

2737.  

begin insert (a) end insert begin insert   end insert Within 20 days from the date of mailing or serving
of the notice of overpayment determination, the person affected
may file an appeal to an administrative law judge. The director
shall be an interested party to any such appeal. The administrative
law judge, after affording reasonable opportunity for a fair hearing,
begin delete shall end delete begin insert shall, end insert unless the appeal is withdrawn, affirm, reverse, modify,
or set aside the findings set forth in the notice of overpayment
determination. The party and the director shall be notified of the
administrative law judge’s decision, together with his begin insert or her end insert
reasons therefor, which shall be final unless within 20 days from
the date of notification or mailing of the decision a further appeal
is initiated to the appeals board pursuant to Section 1336. The
20-day period for an appeal to the administrative law judge or to
the appeals board may be extended for good cause.

“Good

begin insert (b) end insert begin insert   end insert begin insert “Good end insert cause,” as used in this section, shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.

begin insert

(c) This section shall remain in effect only until March 1, 2018,
and as of that date is repealed.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 2737 is added to the end insert begin insert Unemployment Insurance
Code end insert begin insert , to read: end insert

begin insert

begin insert 2737. end insert   

(a) Within 30 days from the date of mailing or serving
of the notice of overpayment determination, the person affected
may file an appeal to an administrative law judge. The director
shall be an interested party to any such appeal. The administrative
law judge, after affording reasonable opportunity for a fair
hearing, shall, unless the appeal is withdrawn, affirm, reverse,
modify, or set aside the findings set forth in the notice of
overpayment determination. The party and the director shall be
notified of the administrative law judge’s decision, together with
his or her reasons therefor, which shall be final unless within 30
days from the date of notification or mailing of the decision a
further appeal is initiated to the appeals board pursuant to Section
1336. The 30-day period for an appeal to the administrative law
judge or to the appeals board may be extended for good cause.

(b) “Good cause,” as used in this section, shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.

(c) This section shall become operative on March 1, 2018.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 2737.5 is added to the end insert begin insert Unemployment
Insurance Code end insert begin insert , to read: end insert

begin insert

begin insert 2737.5. end insert   

(a) Notwithstanding Section 2737, any individual who
submits an appeal under that section to an administrative law
judge within 30 days from mailing or personal service of the notice
of overpayment determination shall be considered to have good
cause to extend the 20-day period.

(b) This section shall remain in effect only until March 1, 2018,
and as of that date is repealed.

end insert

begin delete

SECTION 1.  

Section 2707.2 of the Unemployment Insurance
Code is amended to read:

2707.2.  

The department shall consider the facts submitted by
the employer pursuant to Section 2707.1 and make a determination
as to the eligibility of the claimant for benefits. The department
shall promptly notify the claimant of the determination and the
reasons therefor. The claimant may appeal therefrom to an
administrative law judge within 30 days from mailing or personal
service of the notice of determination. The 30-day period may be
extended for good cause. The director shall be an interested party
to any appeal.

“Good cause,” as used in this section, shall include, but not be
limited to, mistake, inadvertence, surprise, or excusable neglect.

SEC. 2.  

Section 2737 of the Unemployment Insurance Code
is amended to read:

2737.  

Within 30 days from the date of mailing or serving of
the notice of overpayment determination, the person affected may
file an appeal to an administrative law judge. The director shall
be an interested party to any such appeal. The administrative law
judge, after affording reasonable opportunity for a fair hearing,
shall unless the appeal is withdrawn, affirm, reverse, modify, or
set aside the findings set forth in the notice of overpayment
determination. The party and the director shall be notified of the
administrative law judge’s decision, together with his reasons
therefor, which shall be final unless within 30 days from the date
of notification or mailing of the decision a further appeal is initiated
to the appeals board pursuant to Section 1336. The 30-day period
for an appeal to the administrative law judge or to the appeals
board may be extended for good cause.

“Good cause,” as used in this section, shall include, but not be
limited to, mistake, inadvertence, surprise, or excusable neglect.

end delete