BILL ANALYSIS
AB 1827
Page 1
ASSEMBLY THIRD READING
AB 1827 (Arambula and Solorio)
As Amended June 1, 2010
Majority vote
INSURANCE 11-1 APPROPRIATIONS 12-0
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|Ayes:|Solorio, Blakeslee, |Ayes:|Fuentes, Ammiano, |
| |Caballero, | |Bradford, |
| |Charles Calderon, Carter, | |Charles Calderon, Coto, |
| |Feuer, Hagman, Hayashi, | |Davis, |
| |Niello, Salas Torres | |Monning, Ruskin, Skinner, |
| | | |Solorio, Torlakson, |
| | | |Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Anderson | | |
| | | | |
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SUMMARY : Requires the Department of Employment Development
Department (EDD) to provide in-person unemployment insurance
(UI) benefits assistance at designated comprehensive one-stop
career centers. Specifically, this bill :
1)Requires EDD by July 1, 2011, to provide in-person UI benefits
assistance in at least one comprehensive one-stop career
center in each workforce area as follows:
a) EDD shall ensure that customer service personnel at
these 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; and,
b) Printed information regarding eligibility and the
process for filing UI claims shall be made available.
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 one-stop career center partners
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to use existing resources and office space in one-stop career
centers to accommodate customer service personnel.
4)Sunsets on December 31, 2014.
EXISTING LAW :
1)Requires 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 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 : $20 million (100% federal funds) to $30 million
(100% federal funds) to provide five staff in each of the 50
one-stop career centers. With lower staffing levels, costs
would range from $12 million (100% federal funds) to $20 million
(100% federal funds).
COMMENTS :
1)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)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 12.6% of the
state labor force.
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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
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.
The latest version of the bill will result in 50 career centers
throughout the state having the ability to provide in-person
UI assistance to unemployed people.
3)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)According to the California Manufacturers & Technology
Association, the California Chamber of Commerce, and the
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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)In 2009, the Assembly approved AB 857 (Galgiani) which
proposed to require EDD to provide in-person unemployment
benefit assistance at all 150 comprehensive state one-stop
career centers and the 16 workforce service offices. That
bill was later held under submission by the Senate
Appropriations Committee.
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086
FN: 0004751