BILL ANALYSIS                                                                                                                                                                                                    



          
           AB 2364
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2364 (Nava)
          As Amended  August 12, 2010
          Majority vote
           
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          |ASSEMBLY:  |74-0 |(April 22,      |SENATE: |25-10|(August 23,    |
          |           |     |2010)           |        |     |2010)          |
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           Original Committee Reference:    INS.

          SUMMARY  :  Clarifies the scope of the law that defines "good  
          cause" to voluntarily leave employment and retain eligibility  
          for unemployment insurance (UI) benefits.  

           The Senate amendments  merely adopt double-jointing language to  
          avoid chaptering out problems with AB 2055.

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Replaced 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)Directed 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)Conformed 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          4)Repealed an obsolete portion of the UI Code that addresses the  
            Leisure Sharing program that has not existed for over 25  
            years.

          5)Codified a long-standing judicial stipulation that determines  
            the conditions that must exist for an open claim to be  
            cancelled. 


           EXISTING LAW  :








          
           AB 2364
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          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.

          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.


           Analysis Prepared by  :    Mark Rakich / INS. / (916) 319-2086


                                                               FN: 0006264 









          
           AB 2364
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