BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1211|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 1211
Author: Romero (D), Dutton (R), et al
Amended: 6/29/10 in Assembly
Vote: 21
SENATE LAB. & INDUS. RELATIONS COMMITTEE : 6-0, 4/19/10
AYES: DeSaulnier, Wyland, Ducheny, Hollingsworth, Leno,
Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 78-0, 8/12/10 (Consent) - See last page
for vote
SUBJECT : Unemployment insurance: elected officials
SOURCE : Author
DIGEST : This bill requires the Employment Development
Department (EDD) to determine an individual has been
overpaid unemployment insurance (UI) benefits if those
benefits are based on employment income from serving as an
elected official. This bill authorizes EDD to file a
related civil action for recovery of UI benefit
overpayments and requires EDD to adopt related regulations
by July 1, 2011.
Assembly Amendments make clarifying and technical changes.
ANALYSIS : Existing law establishes the Unemployment
CONTINUED
SB 1211
Page
2
Insurance (UI) program administered by the Employment
Development Department (EDD). The UI program is a
federal-state program that provides weekly unemployment
insurance payments to eligible workers who lose their jobs
through no fault of their own. The UI program is financed
by employers who pay unemployment taxes on the first $7,000
to wages paid to each employee in a calendar year.
Under existing law, any "employment" is defined for
purposes of funding and establishing eligibility under the
UI program. With respect to certain public entities, the
definition of "employment" exempts service performed by an
individual in the exercise of his/her duties as:
1. An elected official.
2. An election official or election worker, if not expected
to earn at least $1,000 in a calendar year.
3. A member of a legislative body or the judiciary of a
state.
4. A member of the State National Guard or Air National
Guard.
5. An employee hired on a temporary basis in case of fire,
storm, snow, earthquake, flood, or other similar
emergency.
6. An official in a major nontenured policymaking or
advisory position.
7. A policymaker or in an advisory position whose duties do
not require more than eight hours per week, as
specified, among others.
Under existing law, any person who receives an overpayment
of unemployment compensation benefits is liable for the
amount overpaid, unless a specified criterion applies.
Existing law also allows the Director of EDD to take
specified steps to recover overpayment of unemployment
compensation benefits, including civil action against the
liable person within one year after certain actions have
been taken. EDD is required to send out a notice of
SB 1211
Page
3
overpayment to a UI claimant who received benefits that
he/she was not eligible to receive. The notice of
overpayments shows the amount of the overpayment and
penalties, if any, explains why the claimant was overpaid
and provides information on appeal rights.
Existing law also permits the Director of EDD to initiate
summary judgment proceedings against a liable person to
recover overpayment of unemployment compensation benefits
due to fraud, misrepresentation, or willful nondisclosure
on the part of the recipient. EDD is authorized to deduct
the money owed from future weekly unemployment or state
insurance benefits, reduce or totally withhold state income
tax refunds, lottery winnings, or any other money owed by
the state. And lastly, existing law also permits the
Director of EDD to file a claim against the claimant in
court, charge court costs, and interest, and record a lien
on the claimant's property.
This bill:
1. Requires EDD to determine an individual has been
overpaid UI benefits if those benefits are based on
employment income from serving as an elected official.
2. Authorizes EDD to file a related civil action for
recovery of UI benefit overpayments and requires EDD to
adopt related regulations by July 1, 2011.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/17/10) (unable to reverify)
California Special Districts Association
City of Rosemead
ARGUMENTS IN SUPPORT : According to the author's office,
the duties of an elected official are to serve the public
and prudently manage the public's resources. The author's
office believes this bill is necessary to ensure that
elected officials at all levels of government in California
are not eligible to receive unemployment benefits in
SB 1211
Page
4
relation to their service in public office. Furthermore,
proponents argue that elected officials have been placed in
office through the will of the voters and should not be
entitled to any unemployment related benefits should they
be removed from office either by voters or due to term
limits.
Proponents argue that as California struggles toward
economic recovery and millions remain unemployed, we need
to be certain that the limited resources of unemployment
insurance benefits will be held in reserve for the
displaced workers who truly need them. The author's office
believes this bill empowers EDD to automatically take
action to recover future unemployment payments if they were
incorrectly paid to elected official. Lastly, the author's
office believes this bill is entirely consistent with the
spirit and the letter of the law, and is geared toward
preventing both inadvertent mistakes and deliberate abuse
of the system set up solely for the protection of
California's workers.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
La Torre, De Leon, DeVore, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Gatto, Gilmore, Hagman, Hall, Harkey, Hayashi,
Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,
Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza, Miller,
Monning, Nava, Nestande, Niello, Nielsen, V. Manuel
Perez, Portantino, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada, John
A. Perez
NO VOTE RECORDED: Norby, Vacancy
PQ:do 8/17/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
SB 1211
Page
5
**** END ****