BILL NUMBER: AB 2188	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Bradford

                        FEBRUARY 18, 2010

   An act to amend Section 3075 of, and to add Sections 1326.5,
1326.6, and 2702.5 to, the Unemployment Insurance Code, relating to
unemployment insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2188, as introduced, Bradford. Unemployment compensation:
disability benefits: electronic payment.
   Existing law authorizes the Employment Development Department to
administer the state unemployment insurance and the disability
compensation programs. Existing law requires the department, among
other duties, to make unemployment compensation payments as
prescribed by the Director of Employment Development, and to make
disability benefit payments by checks drawn on a specified bank, as
provided.
   The bill would authorize the director to make these payments using
electronic technology, and if using a vendor to provide electronic
payments, prescribe criteria for a contract between the department
and the vendor.
   This bill would require the State Auditor to prepare and submit a
report to specified legislative committees, as provided, evaluating
the implementation of these electronic payments.
   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 1326.5 is added to the Unemployment Insurance
Code, to read:
   1326.5.  Any contract entered into between the department and a
vendor for the electronic payment of benefits shall include the
following criteria:
   (a) Provide claimants a process to resolve disputes with the
vendor in a timely manner.
   (b) Require that claimants have free and unlimited access to
customer service that meets or exceeds the services provided by the
department prior to the implementation of electronic payment of
benefits.
   (c) Prohibit the assessment of any fees to a claimant for
accessing the electronic payment of benefits under all of the
following circumstances:
   (1) A transaction with a teller at any bank, credit union, or
other similar financial institution.
   (2) A point of sale transaction where an electronic benefit card
is utilized to purchase goods or services.
   (3) A transaction at any automatic teller machine in the vendor's
financial network.
   (d) Allow for inquiries on account balances from automotive teller
machines.
   (e) Charge no fees wherever the vendor can exercise that option.
   (f) Require the vendor to meet or exceed all federal and state
laws for financial privacy and language access requirements.
   (g) Meet the requirements set forth in Section 19130 of the
Government Code.
   (h) Create a procedure to prevent overdraft fees.
   (i) Prohibit the deduction of any fees, charges, or debt from
future unemployment benefits.
  SEC. 2.  Section 1326.6 is added to the Unemployment Insurance
Code, to read:
   1326.6.  The State Auditor shall complete an evaluation of the
implementation of electronic payment of unemployment insurance and
disability insurance benefits and report to the Joint Legislative
Budget Committee, the Assembly Insurance Committee, and the Senate
Labor and Industrial Relations Committee within 18 months of the
implementation of Section 1326.5.
  SEC. 3.  Section 2702.5 is added to the Unemployment Insurance
Code, to read:
   2702.5.  Any contract entered into between the department and a
vendor for the electronic payment of disability benefits shall
include the following criteria:
   (a) Provide claimants a process to resolve disputes with the
vendor in a timely manner.
   (b) Require that claimants have free and unlimited access to
customer service that meets or exceeds the services provided by the
department prior to the implementation of electronic payment of
disability benefits.
   (c) Prohibit the assessment of any fees to a claimant for
accessing the electronic payment of disability benefits under all of
the following circumstances:
   (1) A transaction with a teller at any bank, credit union, or
other similar financial institution.
   (2) A point of sale transaction where an electronic benefit card
is utilized to purchase goods or services.
   (3) A transaction at any automatic teller machine in the vendor's
financial network.
   (d) Allow for inquiries on account balances from automotive teller
machines.
   (e) Charge no fees wherever the vendor can exercise that option.
   (f) Require the vendor to meet or exceed all federal and state
laws for financial privacy and language access requirements.
   (g) Meet the requirements set forth in Section 19130 of the
Government Code.
   (h) Create a procedure to prevent overdraft fees.
   (i) Prohibit the deduction of any fees, charges, or debt from
future disability benefits.
  SEC. 4.  Section 3075 of the Unemployment Insurance Code is amended
to read:
   3075.  The director shall, without presenting vouchers and
itemized statements, withdraw from the Disability Fund any sums
 which   that  he  or she  deems
necessary for the payment of disability benefits for a reasonable
future period. The Controller shall draw his  or her 
warrant for any claim presented by the director for  such
  the  payment and the Treasurer shall pay the
warrant. Upon the withdrawal thereof,  such  
those  sums shall be deposited in a disability benefit payment
account in such bank or public depositary and under  such
  those  conditions as the director determines,
with the approval of the Department of Finance.  Such
  The  bank or public depositary shall be one in
which general funds of the state may be deposited, but no public
deposit insurance charge or premium shall be paid out of 
such   that  account. Money in this account shall
be used solely to pay disability benefits  by checks drawn on
the account  by the department pursuant to authorized
regulations and no other disbursement shall be made from that
account, except that amounts erroneously and illegally deposited in
 such   that  account may be refunded. The
procedure prescribed by  such   those 
regulations shall satisfy and be in lieu of any and all statutory
requirements of specific appropriation or other form of release by
state officers of money in their custody prior to expenditure
 which   that  might otherwise be
applicable to withdrawals from  such   that
 account.