BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2188|
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THIRD READING
Bill No: AB 2188
Author: Bradford (D)
Amended: 8/20/10 in Senate
Vote: 27 - Urgency
SENATE LAB. & INDUS. RELATIONS COMMITTEE : 5-0, 6/23/10
AYES: DeSaulnier, Ducheny, Hollingsworth, Leno, Yee
NO VOTE RECORDED: Wyland
ASSEMBLY FLOOR : 55-17, 6/2/10 - See last page for vote
SUBJECT : Unemployment compensation: disability
benefits: electronic
payments
SOURCE : California Labor Federation
DIGEST : This bill allows the Employment Development
Department to contract with a vendor to deliver Disability
Insurance benefits through direct deposit and debit card.
Senate Floor Amendments of 8/20/10 clarifies the definition
of "practitioner".
Senate Floor Amendments of 8/16/10 make clarifying and
technical changes.
ANALYSIS :
Existing law
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1. Requires claims for unemployment compensation benefits
to be made in accordance with regulations adopted by the
Director of the Employment Development Department (EDD).
2. Requires EDD to promptly pay unemployment compensation
benefits if it finds the claimant is eligible or deny
benefits if it finds the claimant is ineligible.
3. Requires the payment of Disability Insurance (DI)
benefits to be paid by checks drawn on a disability
benefit payment account from a bank or public depository
selected by the director of EDD, with the approval of
the Department of Finance.
This bill removes the requirement that DI benefits be paid
by check, thereby allowing for electronic or other forms of
DI benefit delivery.
Existing law requires a claim for disability benefits to be
supported by a certification of a treating physician or
practitioner, and defines a practitioner as a person duly
licensed or certified in California acting within the scope
of his or her license or certification who is a dentist,
podiatrist, or as to normal pregnancy or childbirth, a
midwife, nurse midwife, or a nurse practitioner.
This bill modifies the definition of practitioner, as
prescribed.
Similar Legislation
AB 2538 (Niello), Session 2009-10, also removes the
requirement that the Employment Development Department pays
all Disability Insurance benefits with a check.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/23/10)
California Labor Federation (source)
American Federation of State, County and Municipal
Employees, AFL-CIO
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California Alliance for Retired Americans
California Bankers Association
California Nurses Association/National Nurses Organizing
Committee
California State Pipe Trades Council
Service Employees International Union - California State
Council
State Association of Electrical Workers
State Building and Construction Trades Council, AFL-CIO
Western State Council of Sheet Metal Workers
ARGUMENTS IN SUPPORT : According to the author's office
and the California Labor Federation, as many Californians
face an economic crisis, access to unemployment benefits is
more important than ever. Electronic pay cards can benefit
"unbanked" individuals who do not have access to a bank
account and resort to payday lenders and check cashers that
charge exorbitant fees. The author's office and the
California Federation of Labor believe that this bill
allows EDD to consummate its relationship and contract with
vendor Bank of America, and that this contract will protect
California's unemployed and disabled workers.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Bass, Beall, Bill
Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Coto, Davis, De La Torre, De Leon, Emmerson, Eng, Evans,
Feuer, Fong, Fuentes, Furutani, Galgiani, Gilmore, Hall,
Hayashi, Hernandez, Hill, Huber, Huffman, Jones, Bonnie
Lowenthal, Ma, Mendoza, Monning, Nava, Niello, V. Manuel
Perez, Portantino, Ruskin, Salas, Saldana, Skinner,
Solorio, Swanson, Torlakson, Torres, Torrico, Villines,
Yamada, John A. Perez
NOES: Anderson, Blakeslee, DeVore, Fuller, Gaines, Garrick,
Hagman, Harkey, Jeffries, Knight, Logue, Miller,
Nestande, Nielsen, Silva, Smyth, Tran
NO VOTE RECORDED: Tom Berryhill, Conway, Cook, Fletcher,
Lieu, Norby, Audra Strickland, Vacancy
PQ:do 8/23/10 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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