BILL ANALYSIS
AB 857
Page A
ASSEMBLY THIRD READING
AB 857 (Galgiani and Mendoza)
As Amended June 1, 2009
2/3 vote. Urgency
LABOR AND EMPLOYMENT 6-1 APPROPRIATIONS 13-4
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|Ayes:|Monning, Bill Berryhill, |Ayes:|De Leon, Ammiano Charles |
| |Eng, Furutani, Ma, | |Calderon, Davis, Fuentes, |
| |Portantino | |Hall, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson, Krekorian |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Gaines |Nays:|Nielsen, Duvall, Harkey, |
| | | |Miller |
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SUMMARY : Requires the Employment Development Department (EDD)
to provide
in-person unemployment benefit assistance at all comprehensive
one-stop career centers and department workforce service
offices, as defined. Specifically, this bill :
1)Declares, not withstanding any other law, the EDD shall
provide in-person unemployment benefit assistance at all
comprehensive one-stop centers and department workforce
service offices ensuring that the customer service personnel
at those career centers and offices 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 :
AB 857
Page B
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 job seekers, 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
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 EDD to implement and
administer the unemployment compensation program.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, EDD reports that there are 150 comprehensive centers
in the state. Providing staffing at a minimal level of one
trained staff per center would require 150 employees, or about
$11 million [Unemployment Insurance (UI) fund]. Actual costs
would depend on staffing levels. Unknown but significant one
time costs for training and modification of facilities to
accommodate added services.
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
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<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
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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
troubling reality is that those JS workers are instructed to
direct unemployed Californians to a phone, to use the overloaded
automated system.
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
---------------------------
<3> The Sacramento Bee, 3/9/09
<4> The Sacramento Bee, "State can cut bill, says Verizon",
3/18/09
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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.
Analysis Prepared by : Lorie Erickson / L. & E. / (916)
319-2091
FN: 0001126