BILL NUMBER: AB 1298 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Coto and Arambula
(Principal coauthor: Assembly Member Swanson)
FEBRUARY 27, 2009
An act to amend Sections 930, 977, 982, 1252, and 1279 of the
Unemployment Insurance Code, relating to unemployment insurance,
making an appropriation therefor, and declaring the urgency thereof,
to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1298, as introduced, Coto. Unemployment Insurance Program.
(1) Existing law excludes from the definition of "wages," for
purposes of the unemployment insurance law, remuneration in excess of
$7,000 paid to an individual by an employer during any calendar
year, with respect to employment.
This bill would, for the calendar year beginning on January 1,
2009, revise this provision to exclude remuneration in excess of
$16,600 paid to an individual by an employer during that calendar
year and would, for each calendar year thereafter, exclude
remuneration paid to an individual by an employer during that
calendar year in excess of the greater of $16,600 or an amount equal
to 1/3 of the annualized state average weekly wage, as defined.
(2) Existing law requires every employer, with specified
exceptions, to pay contributions to the Unemployment Fund at
specified rates according to specified contribution rate schedules.
This bill would modify these provisions by increasing the
contribution rates, as specified, pursuant to a new contribution rate
schedule.
(3) Existing law provides that no employer or new employer, as
defined, is eligible for a contribution rate of more or less than
3.4% for any rating period unless, among other things, his or her
reserve account has been subject to benefit charges.
This bill would revise these provisions by increasing the
contribution rate to 4.5%.
(4) Existing law provides that an individual is considered
"unemployed" for the purpose of eligibility for unemployment
compensation benefits if, for any week of less than full-time work,
the wages payable to the individual for that week, when reduced by
the greater of $25 or 25% of the wages payable, do not equal or
exceed the individual's unemployment weekly benefit amount. Existing
law provides for the payment of unemployment compensation to an
individual in a weekly amount equal to his or her weekly benefit
amount less the amount of wages in excess of the smaller of $25 or
25% of the wages payable.
This bill would instead provide that an individual is unemployed
in any week of less than full-time work only if the wages payable to
him or her with respect to the week, when reduced by the greater of
$200 or 25% of wages payable, do not equal or exceed his or her
weekly unemployment compensation benefit amount. This bill would also
provide the payment of unemployment compensation to an individual in
a weekly amount equal to his or her weekly benefit amount less the
amount of wages in excess of the smaller of $200 or 25% of wages
payable for that week.
(5) Because this measure would increase the amount of unemployment
compensation paid, it would make an additional amount payable from
the Unemployment Fund, a continuously appropriated special fund, and
thereby would make an appropriation.
(6) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 930 of the Unemployment Insurance Code is
amended to read:
930. (a) "Wages" does not include
remuneration in excess of seven thousand dollars ($7,000) paid to an
individual by an employer during any calendar year, with respect to
employment.
(b) For the calendar year beginning on January 1, 2009, "wages"
does not include remuneration in excess of sixteen thousand six
hundred dollars ($16,600) paid to an individual by an employer during
that calendar year, with respect to employment.
(c) (1) For each calendar year thereafter, "wages" does not
include remuneration in excess of the greater of the following
amounts paid to an individual by an employer during that calendar
year, with respect to employment:
(A) Sixteen thousand six hundred dollars ($16,600).
(B) An amount equal to one-third of the annualized state average
weekly wage.
(2) The Employment Development Department shall determine the
annualized state average weekly wage before January 1, 2010, and
before January 1 of each calendar year thereafter.
(d) For purposes of this section, "annualized state average weekly
wage" means the average weekly wage in the State of California, as
determined by the United States Department of Labor in the most
recent calendar quarter available at the time of determination,
multiplied by 52.
SEC. 2. Section 977 of the Unemployment Insurance Code is amended
to read:
977. (a) Except as provided in subdivision (c), if, as of the
computation date, the employer's net balance of reserve equals or
exceeds that percentage of his or her average base payroll
which that appears on any line in column 1 of
the following table, but is less than that percentage of his or her
average base payroll which that appears
on the same line in column 2 of that table, his or her contribution
rate shall be the figure appearing on that same line in the
appropriate schedule, as defined in subdivision (b), which shall be a
percentage of the wages specified in Section 930.
Reserve Contribution
Ratio Rate
Column Column Schedules
Line 1 2 AA A B C D E F
less than
-20
-20 to
-18
01 -18 to 5.4 5.4 5.4 5.4 5.4 5.4 5.4
02 -16 5.2 5.3 5.4 5.4 5.4 5.4 5.4
03 -16 to 5.1 5.2 5.4 5.4 5.4 5.4 5.4
04 -14 5.0 5.1 5.3 5.4 5.4 5.4 5.4
05 -14 to 4.9 5.0 5.3 5.4 5.4 5.4 5.4
06 -12 4.8 4.9 5.2 5.4 5.4 5.4 5.4
07 -12 to 4.7 4.8 5.1 5.3 5.4 5.4 5.4
08 -11 4.6 4.7 5.1 5.3 5.4 5.4 5.4
09 -11 to 4.5 4.6 4.9 5.2 5.4 5.4 5.4
10 -10 4.4 4.5 4.8 5.1 5.3 5.4 5.4
-10 to
-09
-09 to
-08
-08 to -07
-07 to
-06
11 -06 to 4.3 4.4 4.7 5.0 5.3 5.4 5.4
12 -05 4.2 4.3 4.6 4.9 5.2 5.4 5.4
13 -05 to 4.1 4.2 4.5 4.8 5.1 5.3 5.4
14 -04 4.0 4.1 4.4 4.7 5.0 5.3 5.4
15 -04 to 3.9 4.0 4.3 4.6 4.9 5.2 5.4
-03
-03 to -02
-02 to
-01
16 -01 to 3.8 3.9 4.2 4.5 4.8 5.1 5.4
17 00 3.7 3.8 4.1 4.4 4.7 5.0 5.4
18 00 to 3.4 3.6 3.9 4.2 4.5 4.8 5.1
19 01 3.2 3.4 3.7 4.0 4.3 4.6 4.9
20 01 to 3.0 3.2 3.5 3.8 4.1 4.4 4.7
02
02 to 03
03 to
04
21 04 to 2.8 3.0 3.3 3.6 3.9 4.2 4.5
22 05 2.6 2.8 3.1 3.4 3.7 4.0 4.3
23 05 to 2.4 2.6 2.9 3.2 3.5 3.8 4.1
24 06 2.2 2.4 2.7 3.0 3.3 3.6 3.9
25 06 to 2.0 2.2 2.5 2.8 3.1 3.4 3.7
07
07 to 08
08 to
09
26 09 to 1.8 2.0 2.3 2.6 2.9 3.2 3.5
27 10 1.6 1.8 2.1 2.4 2.7 3.0 3.3
28 10 to 1.4 1.6 1.9 2.2 2.5 2.8 3.1
29 11 1.2 1.4 1.7 2.0 2.3 2.6 2.9
30 11 to 1.0 1.2 1.5 1.8 2.1 2.4 2.7
12
12 to 13
13 to
31 14 0.8 1.0 1.3 1.6 1.9 2.2 2.5
32 14 to 0.7 0.9 1.1 1.4 1.7 2.0 2.3
33 15 0.6 0.8 1.0 1.2 1.5 1.8 2.1
34 15 to 0.5 0.7 0.9 1.1 1.3 1.6 1.9
16
16 to 17
17 to
35 18 0.4 0.6 0.8 1.0 1.2 1.4 1.7
36 18 to 0.3 0.5 0.7 0.9 1.1 1.3 1.5
37 19 0.2 0.4 0.6 0.8 1.0 1.2 1.4
38 19 to 0.1 0.3 0.5 0.7 0.9 1.1 1.3
20
20 or more
Reserve Contribution
Ratio Rate
Column Column Schedules
Line 1 2 A B C D E F
less than
-20
-20 to
-18
01 -18 to 7.5 7.5 7.5 7.5 7.5 7.5
02 -16 7.4 7.5 7.5 7.5 7.5 7.5
03 -16 to 7.3 7.5 7.5 7.5 7.5 7.5
04 -14 7.2 7.4 7.5 7.5 7.5 7.5
05 -14 to 7.1 7.3 7.5 7.5 7.5 7.5
06 -12 7.0 7.2 7.5 7.5 7.5 7.5
07 -12 to 6.9 7.1 7.4 7.5 7.5 7.5
08 -11 6.8 7.0 7.3 7.5 7.5 7.5
09 -11 to 6.7 6.9 7.2 7.5 7.5 7.5
10 -10 6.6 6.8 7.1 7.4 7.5 7.5
-10 to
-09
-09 to
-08
-08 to -07
-07 to
-06
11 -06 to 6.5 6.7 7.0 7.3 7.5 7.5
12 -05 6.4 6.6 6.9 7.2 7.5 7.5
13 -05 to 6.3 6.5 6.8 7.1 7.4 7.5
14 -04 6.2 6.4 6.7 7.0 7.3 7.5
15 -04 to 6.1 6.3 6.6 6.9 7.2 7.5
-03
-03 to -02
-02 to
-01
16 -01 to 6.0 6.2 6.5 6.8 7.1 7.5
17 00 5.9 6.1 6.4 6.7 7.0 7.5
18 00 to 5.6 5.8 6.1 6.4 6.7 7.1
19 01 5.3 5.5 5.8 6.1 6.4 6.7
20 01 to 5.0 5.2 5.5 5.8 6.1 6.4
02
02 to 03
03 to
04
21 04 to 4.7 4.9 5.2 5.5 5.8 6.1
22 05 4.4 4.6 4.9 5.2 5.5 5.8
23 05 to 4.1 4.3 4.6 4.9 5.2 5.5
24 06 3.8 4.0 4.3 4.6 4.9 5.2
25 06 to 3.5 3.7 4.0 4.3 4.6 4.9
07
07 to 08
08 to
09
26 09 to 3.2 3.4 3.7 4.0 4.3 4.6
27 10 2.9 3.1 3.4 3.7 4.0 4.3
28 10 to 2.6 2.8 3.1 3.4 3.7 4.0
29 11 2.3 2.5 2.8 3.1 3.4 3.7
30 11 to 2.0 2.2 2.5 2.8 3.1 3.4
12
12 to13
13 to
31 14 1.7 1.9 2.2 2.5 2.8 3.1
32 14 to 1.4 1.6 1.9 2.2 2.5 2.8
33 15 1.1 1.3 1.6 1.9 2.2 2.5
34 15 to 0.8 1.1 1.4 1.6 1.9 2.2
16
16 to 17
17 to
35 18 0.6 0.9 1.2 1.4 1.7 1.9
36 18 to 0.5 0.7 1.0 1.2 1.5 1.7
37 19 0.4 0.6 0.8 1.0 1.3 1.5
38 19 to 0.3 0.5 0.7 0.9 1.1 1.3
20
20 or more
(b) (1) Whenever the balance in the Unemployment Fund on September
30 of any calendar year is greater than 1.8 percent of the wages (as
defined by Section 940) in employment subject to this part paid
during the 12-month period ending upon the computation date,
employers shall pay into the Unemployment Fund contributions for the
succeeding calendar year upon all wages with respect to employment at
the rates specified in Schedule AA.
(2)
(b) (1) Whenever the balance in
the Unemployment Fund on September 30 of any calendar year is
equal to or less than 1.8 percent and greater than
1.6 percent of the wages (as defined by Section 940) in employment
subject to this part paid during the 12-month period ending upon the
computation date, employers shall pay into the Unemployment Fund
contributions for the succeeding calendar year upon all wages with
respect to employment at the rates specified in Schedule A.
(3)
(2) Whenever the balance in the Unemployment Fund on
September 30 of any calendar year is equal to or less than 1.6
percent and greater than 1.4 percent of the wages (as defined by
Section 940) in employment subject to this part paid during the
12-month period ending upon the computation date, employers shall pay
into the Unemployment Fund contributions for the succeeding calendar
year upon all wages with respect to employment at the rates
specified in Schedule B.
(4)
(3) Whenever the balance in the Unemployment Fund on
September 30 of any calendar year is equal to or less than 1.4
percent and greater than 1.2 percent of the wages (as defined by
Section 940) in employment subject to this part paid during the
12-month period ending upon the computation date, employers shall pay
into the Unemployment Fund contributions for the succeeding calendar
year upon all wages with respect to employment at the rates
specified in Schedule C.
(5)
(4) Whenever the balance in the Unemployment Fund on
September 30 of any calendar year is equal to or less than 1.2
percent and greater than 1.0 percent of the wages (as defined by
Section 940) in employment subject to this part paid during the
12-month period ending upon the computation date, employers shall pay
into the Unemployment Fund contributions for the succeeding calendar
year upon all wages with respect to employment at the rates
specified in Schedule D.
(6)
(5) Whenever the balance in the Unemployment Fund on
September 30 of any calendar year is equal to or less than 1.0
percent and greater than or equal to 0.8 percent of the wages (as
defined by Section 940) in employment subject to this part paid
during the 12-month period ending upon the computation date,
employers shall pay into the Unemployment Fund contributions for the
succeeding calendar year upon all wages with respect to employment at
the rates specified in Schedule E.
(7)
(6) Whenever the balance in the Unemployment Fund on
September 30 of any calendar year is less than 0.8 percent and
greater than or equal to 0.6 percent of the wages (as defined by
Section 940) in employment subject to this part paid during the
12-month period ending upon the computation date, employers shall pay
into the Unemployment Fund contributions for the succeeding calendar
year upon all wages with respect to employment at the rates
specified in Schedule F.
(c) For each rating period beginning on or after January 1, 2005,
in which an employer obtains or attempts to obtain a more favorable
rate of contributions under this section due to deliberate ignorance,
reckless disregard, fraud, intent to evade, misrepresentation, or
willful nondisclosure, the director shall assign the maximum
contribution rate plus 2 percent for each applicable rating period,
the current rating period, and the subsequent rating period.
SEC. 3. Section 982 of the Unemployment Insurance Code is amended
to read:
982. (a) Except as provided in subdivision (b), no employer shall
be eligible for a contribution rate of more or less than
3.4 4.5 percent for any rating period unless his
or her reserve account has been subject to benefit charges during
the period of 12 complete consecutive calendar quarters ending on the
computation date for that rating period and he or she is qualified
under Sections 977 and 977.5.
(b) No new employer shall be eligible for a contribution rate of
more or less than 3.4 4.5 percent
unless his or her reserve account has been subject to benefit charges
during the period of 12 complete consecutive calendar months ending
on the computation date and the new employer is qualified under
Sections 977 and 977.5.
(c) For the purposes of this section "new
employer" means any of the following:
(1) An employer who first qualifies as an employer after the 1969
calendar year, and whose account is continuously subject to benefit
charges from the date of first chargeability, except that a successor
employer under Section 1051 is not a new employer if the successor
applies for or obtains the transfer of the reserve account or part
thereof of a predecessor who is not a new employer.
(2) An employer whose entire reserve account has been transferred
to a successor under Article 5 (commencing with Section 1051) of
Chapter 4 of this part.
(3) An employer whose reserve account has been canceled pursuant
to Section 1029.
(d) Section 905 applies to a new employer, except that for the
purposes of this section "average base payroll" means:
(1) The payroll in the calendar year immediately preceding the
computation date for a new employer with a payroll only in that
calendar year.
(2) The quotient obtained by dividing by two the total amount of
taxable wages paid by a new employer during the most recent period of
two consecutive calendar years immediately preceding the computation
date, for a new employer with a payroll only in each of, or only in
the first of, the two consecutive calendar years.
(e) The contribution rate of an employer, for any period prior to
January 1, 1988, shall not be changed, other than by the
provisions of Sections 977 and 977.5, when the director
makes a determination, pursuant to Section 135.1 or 135.2, because of
arrangements entered into or business activities conducted between
January 1, 1984, and January 1, 1986.
(f) This section does not apply to an employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.
SEC. 4. Section 1252 of the Unemployment Insurance Code is amended
to read:
1252. (a) An individual is "unemployed" in any week in which he
or she meets any of the following conditions:
(1) Any week during which he or she performs no services and with
respect to which no wages are payable to him or her.
(2) Any week of less than full-time work, if the wages payable to
him or her with respect to the week, when reduced by
twenty-five dollars ($25) two hundred dollars ($200)
or 25 percent of the wages payable, whichever is greater, do
not equal or exceed his or her weekly benefit amount.
(3) Any week for which, except for the requirements of subdivision
(d) of Section 1253, he or she would be eligible for benefits under
Section 1253.5.
(4) Any week during which he or she performs full-time work for
five days as a juror, or as a witness under subpoena.
(b) Authorized regulations shall be prescribed making such
distinctions as may be necessary in the procedures applicable to
unemployed individuals as to total unemployment, part-total
employment, partial unemployment of individuals attached to their
regular jobs, and other forms of short-time work.
(c) For the purpose of this section only "wages" includes any and
all compensation for personal services whether performed as an
employee or as an independent contractor or as a juror or as a
witness, but does not include any payment received by a member of the
National Guard or reserve component of the armed forces for inactive
duty training, annual training, or emergency state active duty.
SEC. 5. Section 1279 of the Unemployment Insurance Code is amended
to read:
1279. (a) Each individual eligible under this chapter who is
unemployed in any week shall be paid with respect to that week an
unemployment compensation benefit in an amount equal to his or her
weekly benefit amount less the smaller of the following:
(1) The amount of wages in excess of twenty-five dollars
($25) two hundred dollars ($200) payable to him
or her for services rendered during that week.
(2) The amount of wages in excess of 25 percent of the amount of
wages payable to him or her for services rendered during that week.
(b) The benefit payment, if not a multiple of one dollar ($1),
shall be computed to the next higher multiple of one dollar ($1).
(c) For the purpose of this section only "wages" includes any and
all compensation for personal services whether performed as an
employee or as an independent contractor or as a juror or as a
witness, but does not include any payments, regardless of their
designation, made by a city of this state to an elected official
thereof as an incident to public office, nor any payment received by
a member of the National Guard or reserve component of the armed
forces for inactive duty training, annual training, or emergency
state active duty.
SEC. 6. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to address the current funding crisis threatening the
Unemployment Fund at the earliest possible time, it is necessary that
this act take effect immediately.