BILL ANALYSIS
AB 857
Page A
Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
William W. Monning, Chair
AB 857 (Galgiani) - As Amended: April 14, 2009
SUBJECT : Workforce development: one-stop career center systems.
SUMMARY : Requires the Employment Development Department (EDD)
to provide
in-person unemployment benefit assistance at all state one-stop
career centers, as defined. Specifically, this bill :
1)Declares, not withstanding any other law, the EDD shall
provide in-person unemployment benefit assistance at all state
one-stop centers ensuring that the customer service personnel
at those career centers are fully trained, as provided, and
that printed information regarding eligibility and the process
for filing claims for unemployment compensation benefits shall
be made available at all centers.
2)Requires that the unemployment benefit assistance services to
be provided at the one-stop career centers be funded with
existing monies available to EDD for the administration of the
unemployment compensation program.
EXISTING FEDERAL LAW: establishes the federal Workforce
Investment Act of 1998, which provides for workforce investment
activities that states may participate in.
EXISTING STATE LAW :
1)Establishes the California Workforce Investment Act, requiring
the California Workforce Investment Board (Board) to assist
the Governor in performing specified duties relating to the
development, implementation, and promotion of various
workforce development activities, job training, and employment
investment and work incentive programs, as specified.
2)Declares, under the California Workforce Investment Act, that
it is the intent of the Legislature to deliver comprehensive
workforce services to jobseekers, students, and employers
through a system of one-stop career centers to, among other
things, make job outreach, intake, job search and placement
assistance, and other related services available in one
AB 857
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location.
3)Provides for the payment of unemployment compensation benefits
to eligible unemployed persons during the period that the
person is unemployed, and requires the Employment Development
Department (EDD) to implement and administer the unemployment
compensation program.
FISCAL EFFECT : Unknown
COMMENTS :
The author's stated purpose for the bill says many customers can
utilize on-line applications and can contact workers in the call
centers, millions of unemployed Californians cannot readily
access services for unemployment benefits. In December 2008,
25.6 million callers - and an estimated 42 million callers in
January 2009 - who failed to reach operators at UI call centers
were diverted to a pre-recorded message.<1> Records show that
between 2004-2008 more than 73.3 million calls were unable to be
handled by the current UI telephone claim filing system through
the UI call centers.<2> EDD's message system has cost the state
$4.4 million for a three-month period from December through
February.<3> Plus, for the first two business days in March,
there was another 1.4 million failed calls routed to the message
at a cost of $71,000.<4>
Furthermore, when out-of-work Californians utilize the state's
one-stop centers for job services, many people turn to Job
Service (JS) employees, also known as Workforce Services, for UI
help. JS employees in one-stop centers are routinely asked
questions and are also asked for assistance in filing UI claims
and resolving UI claims problems. Reportedly, some JS staff are
directed by management to try to handle 'some' of the problems
with UI claims; however, these JS employees are not fully
trained or funded to perform the work of UI workers. The
---------------------------
<1> The Sacramento Bee, "EDD call center rings up $1.1 million
bill for 'busy' message", 3/9/09
<2> The Sacramento Bee, 2/19/09
<3> The Sacramento Bee, 3/9/09
<4> The Sacramento Bee, "State can cut bill, says Verizon",
3/18/09
AB 857
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troubling reality is that those JS workers are instructed to
direct unemployed Californians to a phone, to use the overloaded
automated system.
Assembly Bill (AB) 857 will revise the Unemployment Insurance
Code to require the state Employment Development Department to
have available in-person assistance in all comprehensive
one-stop centers.
AB 857 will further require all unemployment insurance agents
are fully trained in unemployment compensation claims and funded
through the unemployment insurance program. This is a modest
measure designed to address gaps in the law on the provision of
unemployment assistance in California.
According to the Service Employees International Union (SEIU),
sponsor of this bill, California's unemployment rate has hit a
25-year high currently standing at 10.5%. This surge has led to
a flood of calls to the state's UI call centers, which prevented
many callers from getting the assistance needed. In January
2009 alone, an estimated 42 million callers failed to reach
operators at the UI call center and were diverted to a
pre-recorded message, costing the state millions of dollars.
While many customers can utilize online applications and can
contact EDD staff in the call centers, millions of unemployed
Californians cannot readily access services for unemployment
benefits. SEIU states that this bill would allow out of work
Californians the option of in-person UI assistance provided by
UI funded and UI trained workers, which helps the online
applications, mail in and call center applications as well. It
will also provide UI employees an opportunity to once again work
in a field office to assist out of work Californians with their
claims.
SEIU also states this bill can save the state money by
redirecting the individual to a one-stop center, rather than
forcing them to call an overloaded system 25-30 times or more
before reaching a UI worker who can provide assistance.
REGISTERED SUPPORT / OPPOSITION :
Support
California Labor Federation, AFL-CIO
AB 857
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Service Employees International Union (sponsor)
Opposition
None on file.
Analysis Prepared by : Lorie Erickson / L. & E. / (916)
319-2091