BILL ANALYSIS
AB 2364
Page 1
Date of Hearing: March 24, 2010
ASSEMBLY COMMITTEE ON INSURANCE
Jose Solorio, Chair
AB 2364 (Nava) - As Introduced: February 19, 2010
SUBJECT : Unemployment insurance: Good cause to leave work
SUMMARY : Clarifies the scope of the law that defines "good
cause" to voluntarily leave employment and retain eligibility
for unemployment insurance (UI) benefits. Specifically, this
bill:
1)Replaces the word "children" with the word "family" in the
domestic violence good cause exception to the general rule
that a person who voluntarily leaves employment is not
eligible for UI benefits.
2)Directs the Employment Development Department (EDD) to notify
claimants upon the filing of a claim about the method of
computation to be used in determining the amount to be paid.
3)Conforms the UI Code to the Government Code by changing from
three years to one year the period of time that an uncashed
state check is valid.
4)Repeals an obsolete portion of the UI Code that addresses the
Leisure Sharing program that has not existed for over 25
years.
5)Codifies a long-standing judicial stipulation that determines
the conditions that must exist for an open claim to be
cancelled.
EXISTING LAW
1)Establishes a UI program that is a federal-state partnership
to provide partial wage replacement benefits to people who are
unemployed through no fault of their own.
2)Provides that a person remains eligible for UI benefits even
though he or she voluntarily resigns, if the resignation was
due to the fact that the claimant left the employment to
protect himself or herself or his or her children from
domestic violence.
AB 2364
Page 2
3)Establishes, as a matter of federal law, so-called "stimulus"
funding (the American Recovery and Reinvestment Act of 2009 -
Public Law 111-5) to states for purposes of paying UI
benefits, but conditions that funding on the adoption by a
state of certain requirements, including a domestic violence
"good cause" exception for voluntary resignations. The
federal Department of Labor (DOL) has the authority to
determine whether a state meets these requirements.
4)Includes a domestic violence good cause exception that was
deemed by the DOL to be inadequate.
5)Establishes an "alternative base period" (ABP) method for
calculating eligibility for UI benefits to which certain
claimants are entitled. Adoption of the ABP last year ensures
that California would be eligible for 1/3 of the potential
$839 million of federal stimulus money.
6)Provides broadly that no state issued check is valid for more
than one year, but also states that an uncashed warrant drawn
from the Unemployment Fund or the Unemployment Administration
Fund reverts to the fund after 3 years.
FISCAL EFFECT : Adoption of this bill will assure that
California is eligible for $$559 million of the $839 million in
potentially available federal stimulus funds.
COMMENTS :
1)Purpose . According to the author, the purpose of the bill is
simple - minor corrections to California's UI law are needed
to respond to DOL determinations that the law is not quite
sufficient to qualify for the final 2/3 of the available UI
stimulus money. The remaining provisions contain technical
clean-up of unnecessary or obsolete statutes.
2)Background . Last year, the Legislature passed and the
Governor signed AB X3 23 (Coto, which adopted the ABP method
for calculating certain claimants' UI benefits.
Implementation of ABP was delayed, for reasons not relevant
here, but in a way that still met the federal criteria for
obtaining the federal stimulus money. At that time, it was
generally believed that, despite the fact that the DOL had to
approve a specific application for the funds, California law
AB 2364
Page 3
was adequate in all respects upon adopting the ABP to qualify
for the full $839 million. However, when EDD submitted
California's application to DOL, DOL concluded that
California's definition of who qualifies for the domestic
violence good cause exception was too narrow. EDD has
determined in consultation with DOL that the adoption of the
word "family" assures California's eligibility for the
remaining.
3)Support . The California Labor Federation supports the bill,
noting that according to the AARP, there are 6.2 million
multi-generational households in America, and that due to the
recession, there are many more extended families residing
together. The rationale remains the same - if you have to
leave to protect a grandchild or a parent from an abuser, it
is no different in terms of "good cause" than having to move
to protect yourself or a child.
REGISTERED SUPPORT / OPPOSITION :
Support
California Labor Federation, AFL-CIO
Opposition
None received.
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086