BILL NUMBER: AB 1804	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hagman

                        FEBRUARY 10, 2010

   An act to amend Section 1611 of the Unemployment Insurance Code,
relating to employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1804, as introduced, Hagman. Employment Training Fund.
   Existing law specifies that moneys in the Employment Training Fund
are to be expended only for particular purposes relating to
employment training and related administrative costs, but authorizes
those moneys to be used for, among other purposes, loans to the
General Fund, in accordance with specified provisions.
   This bill would prohibit moneys in the Employment Training Fund
from being used for loans to the General Fund.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1611 of the Unemployment Insurance Code is
amended to read:
   1611.  Moneys in the Employment Training Fund shall be expended
only for the purposes of Chapter 3.5 (commencing with Section 10200)
of Part 1 of Division 3, and for the costs of administering this
article and Section 976.6, except those moneys may be used for any of
the following:
   (a) With the approval of the Legislature, the fund or
contributions to it may be used to pay interest charged on federal
loans to the Unemployment Fund.
   (b) Commencing with allocations made to the Employment Training
Panel in the 1992-93 fiscal year, any moneys allocated to the panel
in a fiscal year that are not encumbered by the panel in that fiscal
year, shall revert to the Unemployment Insurance Fund.
   (c) It is the intent of the Legislature that the panel shall
closely monitor program performance and expenditures for employment
training programs administered by the panel, and that the panel shall
expeditiously disencumber funds that are not needed for employment
training program completion. Commencing with the 1992-93 fiscal year,
those moneys that are disencumbered during the fiscal year that are
not reencumbered during the same fiscal year shall revert to the
Unemployment Insurance Fund. 
   (d) Notwithstanding any other law, the Controller may use the
moneys in the Employment Training Fund for loans to the General Fund
as provided in Sections 16310 and 16381 of the Government Code.
However, interest shall be paid on all moneys loaned to the General
Fund from the Employment Training Fund. Interest payable shall be
computed at a rate determined by the Pooled Money Investment Board to
be the current earning rate of the fund from which loaned. This
subdivision does not authorize any transfer that will interfere with
the carrying out of the object for which the Employment Training Fund
was created.