BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 274
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 274 (Garrick) - As Amended:  May 10, 2011 

          Policy Committee:                              InsuranceVote:12 
          - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Employment Development Department (EDD), 
          when notifying an employer that an unemployment claim has been 
          filed, to provide the employer with the existing direct Internet 
          website link that describes the circumstances that establish 
          good cause. 

           FISCAL EFFECT  

          Costs associated with this legislation would be minor and 
          absorbable within existing EDD resources. 

           COMMENTS  

           Purpose  . Currently, when an unemployment claim has been filed, 
          the former employer is notified by EDD and the former employer 
          has 10 days to respond with any information that may affect the 
          claimant's case.  In some instances, employers for small 
          businesses travel and are not even aware EDD has contacted them 
          until after the 10 day response period has passed.  The form 
          provided by EDD to the former employer does state that an 
          employer may be granted an extension to respond past the 
          original 10 days for "good cause," but does not state what 
          constitutes a "good cause" extension.  

          AB 274 will alleviate this problem by requiring that EDD provide 
          access to where the "good cause" extension is defined on the EDD 
          website.  Currently, it is difficult for an employer to locate 
          what constitutes good cause, which could eliminate the stress 
          and anxiety small business owners face when they realize they 
          have missed the 10-day response period.  








                                                                  AB 274
                                                                  Page  2


          AB 274 does not require that EDD update forms immediately.  They 
          may wait till the current forms have been used and then update 
          accordingly on the next printing.  

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081