BILL ANALYSIS
AB 2058
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2058 (Block)
As Amended August 18, 2010
Majority vote
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|ASSEMBLY: |58-19|(June 3, 2010) |SENATE: |24-8 |(August 20, |
| | | | | |2010) |
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Original Committee Reference: INS.
SUMMARY : Modifies the requirements for participating in the
state's retraining benefits program in order to allow unemployed
people to receive unemployment insurance (UI) benefits while
enrolled in a training program on a full-time basis.
The Senate amendments :
1)Require the Employment Development Department (EDD) by
September 1, 2016, to prepare and submit to the Governor and
Legislature a report evaluating the effectiveness of the
California Training Benefits Program. The report shall
include data on the number of individuals eligible for the
program and the number of individuals who participated in the
program and earned subsequent wages in the following calendar
year.
2)Define the terms "accredited" and "accrediting agency."
3)Provide that the bill shall become effective on January 1,
2011, unless EDD determines that implementation by that date
is not feasible, in which case EDD shall implement the bill no
later than July 1, 2011.
EXISTING LAW :
1)Declares the policy of this state to assist individuals with
UI benefits if these individuals need training in demand
occupations to become competitive in the labor market.
2)Provides that UI benefits shall not be denied to an otherwise
qualified unemployed worker because he or she is in training
approved by the EDD Director.
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3)Allows an unemployed person who files a UI claim to apply to
EDD for a determination of potential eligibility for
"retraining benefits" during a period of training. Retraining
benefits allow people who qualify for UI benefits to
participate in training programs on a full-time basis and
receive UI benefits while being relieved of the obligations to
be available for work and to actively search for work each
week.
4)Requires EDD to issue a determination of potential eligibility
for retraining benefits to an unemployed individual if the EDD
Director finds that the training is authorized by the federal
Workforce Investment Act, the state Employment Training Panel,
the federal Trade Act of 1974, as amended, or the individual
is a participant in the California Work Opportunity and
Responsibility to Kids (CalWORKs) Program and has entered into
a contract with the county welfare department to participate
in an education or training program.
5)Requires EDD to issue a determination of potential eligibility
for retraining benefits if the EDD Director finds that all of
the following facts apply:
a) The person has been unemployed for four or more
continuous weeks, or the person is unemployed and unlikely
to return to his or her most recent workplace because of a
plant closure or a substantial reduction in employment, or
because of a mental or physical disability which prohibits
the individual form utilizing existing occupational skills;
b) There is a lack of demand in the labor market area for
his or her occupational skills and the lack of employment
opportunities is expected to continue for an extended
period of time;
c) The training course of instruction relates to an
occupation or skill for which there are, or are expected to
be in the immediate future, reasonable employment
opportunities in the labor market area in this state in
which the individual intends to seek work;
d) If the person is a journey level union member, the
training course of instruction is specific job-related
training necessary due to changes in the technology, or
necessary to retain employment or to become more
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competitive in obtaining employment;
e) The training or retraining course of instruction is one
approved by the EDD Director and can be completed within
one year;
f) The training or retraining course is a full-time course
prescribed for the primary purpose of training the
applicant in skills that will allow him or her to obtain
immediate employment in a demand occupation and is not
primarily intended to meet the requirements of any degree
from a college, community college, or university;
g) The individual can be reasonably expected to complete
the training or retraining successfully; and,
h) The beginning date of training is more than three years
after the beginning date of training last approved for the
individual.
6)Provides that an unemployed individual receiving UI benefits,
who applies for retraining benefits no later than the 16th
week of receiving UI benefits, and is determined eligible for
the retraining benefits shall be entitled to a training
extension on his her UI claim to complete the approved
training.
7)Requires EDD to inform all UI claimants of the retraining
benefits. This information shall be conveyed verbally or in
written form.
8)Limits access to retraining benefits to instances when the EDD
Director finds that the person is potentially eligible for
retraining benefits or a training extension of UI benefits,
and the person submits with each claim a written certification
executed by a responsible person connected with the training
program certifying that the individual is enrolled in and
satisfactorily pursuing the training course of instruction.
AS PASSED BY THE ASSEMBLY , this bill:
1)Declared the policy of this state to assist individuals with
UI benefits if these individuals need training to upgrade
their skills to become competitive in the labor market.
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2)Provided that UI benefits shall not be denied to an otherwise
qualified unemployed worker because he or she is participating
in, or applying for, eligible training or retraining.
3)Required a determination of automatic eligibility for
retraining benefits to be issued if the Director of EDD finds
the training is authorized by the federal Workforce Investment
Act, the state Employment Training Panel, the federal Trade
Acts of 1974 and 2002, the American Recovery and Reinvestment
Act of 2009, the individual is a participant in CalWORKs, the
individual is a participant in training with a provider that
is certified and on the state's Eligible Training Provider
List, or the individual is a journey level union member in
industry-related training that is necessary to employment.
4)Allowed the EDD Director to find that an unemployed individual
is eligible for training benefits if federal extended UI
benefits are in effect, the unemployed individual is
determined potentially eligible for retraining benefits, and
the individual is enrolled in a community college or other
accredited postsecondary education program with the purpose of
preparing the applicant in academic or job skills that will
increase employment opportunities or that leads to an
industry-recognized credential or certificate designed for a
specific occupation.
5)Allowed EDD to inform all UI claimants of the availability of
retraining benefits, by on-line means. This information would
be made available on EDD's Web site in close proximity to
information on UI claim forms.
FISCAL EFFECT : Costs of $2.5 million to $5 million from the
Unemployment Trust Fund (employer financed special fund) to
increase enrollment in the California Training Benefits Program.
COMMENTS :
1)The purpose of this bill is to allow unemployed workers
receiving UI benefits to continue their coverage while
enrolled in job training or education courses to develop the
skills necessary for the state's changing work environment.
2)This bill affects "Retraining Benefits" (as phrased in
Sections 1266 to 1274.10 of the Unemployment Insurance Code),
or the "California Training Benefits Program," as called by
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EDD on its printed materials and its Web site. It is the same
program. The retraining benefits program allows people
receiving UI benefits to participate in approved training
programs without actively seeking work. EDD is responsible
for determining whether UI recipients are eligible for
retraining benefits and may continue to receive UI
compensation.
In May 2009, the U.S. Department of Labor issued a guidance
letter to state agencies such as EDD that administer the UI
Program. Specifically, Training and Employment Guidance
Letter No. 21-08 encourages states to widen the types of
training and the conditions under which education and training
are considered "approved training" for purposes of the state's
UI law. States are also asked to reconsider their laws and
regulations, and applicable administrative requirements, to
determine if their approved training requirements are
appropriate to the current economy. That guidance letter
strongly encourages states to
broaden their definition of approved training for UI
beneficiaries during economic downturns.
Currently, until a determination of eligibility for retraining
benefits is complete, EDD will suspend the UI benefits. With
the current severe recession, many unemployed Californians are
trying to regain competitive job skills by participating in
the California Training Benefits Program. Unfortunately, the
UI benefits of many Californians who indicate on an EDD form
that they're enrolled in training have their UI benefits
suspended for a period of four to eight weeks. As a result,
many people decide to drop out of the job training to preserve
their eligibility for UI benefits. This is contrary to the
direction of the federal Department of Labor which has been
strongly encouraging states to streamline their administrative
procedures and laws, if necessary, to assist unemployed people
to regain competitive job skills for the current economy. In
fact, many people who experience a suspension of UI benefits
are found to have been eligible for both UI and retraining
benefits. This bill proposes a series of statutory changes to
improve training opportunities.
3)Current law allows for the automatic approval of training
programs funded through the federal Workforce Investment Act,
federal Trade Acts, the state Employment Training Panel, and
the CalWORKs Program. This bill will allow unemployed workers
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who enroll in programs listed in the Eligible Training
Provider List, authorized by the federal Workforce Investment
Act, to automatically qualify for California Training Benefits
without causing a break in UI benefits. This bill will also
allow individuals to enroll in community colleges or public
universities to earn degrees or certificates that will make
them more employable and become eligible for California
Training Benefits.
Analysis Prepared by : Manny Hernandez / INS. / (916)
319-2086.
FN: 0006566