BILL ANALYSIS
AB 1827
Page 1
Date of Hearing: March 24, 2010
ASSEMBLY COMMITTEE ON INSURANCE
Jose Solorio, Chair
AB 1827 (Arambula and Solorio) - As Amended: March 10, 2010
SUBJECT : Workforce Development: One-Stop Career Centers
SUMMARY : Requires the Employment Development Department (EDD)
to provide in-person unemployment benefit assistance at all
state one-stop career centers where the customer service staff
are trained in unemployment insurance (UI) eligibility, claims
processing, and benefit payments. Specifically, this bill :
1)Requires EDD by July 1, 2011 to provide in-person unemployment
benefit assistance at all state one-stop career centers as
follows:
a) EDD shall ensure that customer service personnel at
those career centers are fully trained regarding the laws
and regulations governing eligibility, claims processing,
and procedures for the payment of UI benefits to eligible
individuals.
b) Printed information regarding eligibility and the
process for filing UI claims shall be made available at all
one-stop career centers.
2)Requires that the UI benefit assistance services (noted above)
shall be funded with existing moneys available to EDD to
administer the UI Program, and requires EDD to reallocate
existing resources to implement the new assistance.
3)Requires EDD to work with the state's one-stop career center
partners to use existing resources and office space in
one-stop career centers to accommodate customer service
personnel.
EXISTING LAW :
1)Requires the state Employment Development Department (EDD) to
administer the UI Program which is established to provide
partial wage replacement benefits for people unemployed
through no fault of their own. EDD's duties include
determining the validity of applications for UI benefits and
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paying the UI benefits to qualified applicants.
2)Requires EDD to support local one-stop career centers.
One-stop career centers are established to help people find
jobs. Specifically, they provide workforce services for
jobseekers, students, and employers including assessment of
job skills, job search and placement assistance, career
counseling, labor market information, information on eligible
providers of training services, and provision of information
on the filing of UI claims.
FISCAL EFFECT : Undetermined.
COMMENTS :
1)Purpose of bill. The purpose of this bill is to require EDD
to provide staff in at least one comprehensive One Stop Career
Center in each state workforce area, to assist unemployed
workers apply for UI benefits.
2)Background. In 1995, the state eliminated the EDD UI field
offices, and opted for telephone assistance through call
centers. The UI call centers have been unable to keep up with
the volume of calls generated by the high number of unemployed
Californians, leaving many unemployed workers unable to
navigate the state UI system and obtain UI benefits.
Currently, an estimated 2.3 million Californians are
unemployed, constituting 12.4 percent of the state labor
force.
Currently, people who want to file a UI claim are encouraged to
file on-line. While many unemployed people can use the
on-line applications, many others have questions about the
application form, don't have access to computers, or encounter
problems with their applications. People encountering
difficulties or questions need to speak with an EDD person who
is knowledgeable about UI. In December of 2008, 25.6 million
callers to UI Call Centers received busy signals or recordings
saying to try again later. During the period 2004 to 2008, a
total of 73.3 million calls could not be handled by the UI
telephone claim filing system. In January 2009, another 42
million calls went unanswered.
Unemployed people who seek assistance in finding new jobs or
referrals to training often utilize the state's One-Stop
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Career Centers for these purposes. The employees at the
One-Stop Career Centers are often asked questions about the UI
Program and for help in filling out the application form or in
resolving UI claims problems. However, these employees have
not been trained to answer UI questions and they are
instructed to direct individuals to telephones and computer
workstations located inside the One-Stop Career Center.
3)Arguments in Support . According to the authors, this bill
will make it possible for unemployed workers to more quickly
file UI claims and receive benefits, which are a lifeline to
people out of work. UI benefits are spent in communities for
necessities and supporting other jobs which would otherwise be
lost. Finally, reducing the volume of calls to the UI Call
Centers saves EDD money, as unanswered calls through the call
center system result in charges from the phone company.
Estimates are that EDD has been charged $6 million for all of
the unanswered UI calls which are met with a recorded
response. The California Labor Federation states this bill
will allow applicants and EDD workers to resolve claims issues
quickly and efficiently by allowing prompt answers to some
questions and reducing the need to make corrections later in
the process.
4)Arguments in Opposition . According to the California
Manufacturers & Technology Association, the California Chamber
of Commerce, and the National Federation of Independent
Business, this bill will significantly shift costs and
resources used to administer the UI Fund, potentially creating
a disruption in the delivery of benefits to the unemployed.
However, shifting resources from the current centralized call
center to in-person services does not guarantee more
efficiency or better access. These groups state that current
resources should be prioritized to continue upgrading the
outdated computer systems and hire more employees for the call
centers.
5)Prior Legislation . In 2009, the Assembly approved AB 857
(Galgiani) which proposed to require EDD to provide in-person
unemployment benefit assistance at all comprehensive state
one-stop career centers and workforce service offices. That
bill was later held under submission by the Senate
Appropriations Committee.
6)Scope of the Bill . AB 1827 provides that an UI trained staff
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person must be present in all one-stop career centers in order
to provide UI claims assistance. Currently, there are 256
one-stop career centers in the state. 150 of these centers
are comprehensive one-stop career centers (i.e. provides all
core employment and training services), and the remaining
other one-stop career centers are specialized one-stop sites
(e.g. a youth center or dislocated worker center), kiosk
one-stop sites (e.g. a computer station), mobile one-stop
units (e.g. van or trailer), and workforce services offices
(site staffed by EDD that offers employment and training
services). In light of the fact that some of the one-stop
career centers are either mobile vans or kiosks where it would
be difficult if not impossible to station a UI specialist, it
is suggested the bill be amended to require an EDD UI
specialist at each of the comprehensive one-stop career
centers and the workforce services offices. Accordingly, the
bill could be amended as follows:
On page 2, delete lines 5 - 6 of the bill, and insert the
following: unemployment insurance benefits assistance at all
comprehensive one-stop career centers and department workforce
service offices, as follows:
REGISTERED SUPPORT / OPPOSITION :
Support
California Labor Federation
Opposition
California Chamber of Commerce
California Manufacturers & Technology Association
National Federation of Independent Business
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086