BILL NUMBER: AB 226	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 6, 2011

INTRODUCED BY   Assembly Member Solorio

                        FEBRUARY 2, 2011

   An act to amend Section 995 of the Unemployment Insurance Code,
relating to unemployment insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 226, as amended, Solorio. Unemployment insurance: reporting
requirements: status of funds.
   Existing unemployment insurance law requires the Employment
Development Department to submit to the Legislature in May and
October of each year a report on the status of the Unemployment Fund
and the Unemployment Compensation Disability Fund, containing actual
and forecasted information on  the   each 
fund, as specified.
   This bill would additionally require the department, whenever the
Unemployment Fund  contains   indicates  a
negative balance, to include in the status report on the Unemployment
Fund  an estimate of the change in the taxable wage ceiling
or tax rates necessary to return this fund to solvency within 5 years
  the estimated impact on employers from the changes in
a specified federal tax credit, any estimated impact on employees,
and the estimated impact on the General Fund that would result
pursuant to existing law if the Unemployment Fund is not returned to
solvency within 7 years  .
   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 995 of the Unemployment Insurance Code is
amended to read:
   995.  (a) Notwithstanding Section 10231.5 of the Government Code,
the department shall submit to the Legislature in May and October of
each year a report on the status of the Unemployment Fund and the
Unemployment Compensation Disability Fund. Each report shall include
both actual and forecasted information on the fund balances,
receipts, disbursements, claim data, tax rates, and employment
levels. 
   (b) Whenever the Unemployment Fund contains a negative balance,
the department shall include in the status report on the Unemployment
Fund an estimate of the change in the taxable wage ceiling or tax
rates necessary to return this fund to solvency within five years.
 
   (b) Whenever the Unemployment Fund indicates a negative balance,
the department shall include in the status report on the Unemployment
Fund the estimated impact on employers from the changes in the
Federal Unemployment Tax Act (FUTA) tax credit, any estimated impact
on employees, and the estimated impact on the General Fund that would
result pursuant to existing law if the Unemployment Fund is not
returned to solvency within seven years.  
   (c) For purposes of this section, "solvency" means that the
Unemployment Fund contains a positive balance so that this fund is
able to pay all of its obligations during the calendar year.