BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 274
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          ASSEMBLY THIRD READING
          AB 274 (Garrick)
          As Amended  May 10, 2011
          Majority vote 

           INSURANCE           12-0        APPROPRIATIONS      16-0        
           
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          |Ayes:|Solorio, Hagman, Charles  |Ayes:|Fuentes, Harkey,          |
          |     |Calderon, Carter, Feuer,  |     |Blumenfield, Bradford,    |
          |     |Grove, Hayashi, Miller,   |     |Campos, Davis, Donnelly,  |
          |     |Olsen, Skinner, Torres,   |     |Gatto, Hall, Hill, Lara,  |
          |     |Wieckowski                |     |Mitchell, Nielsen, Smyth, |
          |     |                          |     |Solorio, Wagner           |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires that employers be notified of the definition 
          of "good cause" to extend the time to answer a claim for 
          unemployment benefits.  Specifically,  this bill  : 

          1)Requires the Employment Development Department (EDD), when 
            notifying an employer that an unemployment claim has been 
            filed, to provide them with a direct Internet Web site link to 
            the page that describes the circumstances that establish good 
            cause.  

          2)Specifies that the link is available at 
            http://www.edd.ca.gov/UIBDG/Miscellaneous_MI_40.htm or its 
            successor Web site address.

          3)Provides that EDD shall not be required to update its standard 
            forms, publications, and signs to comply with the above 
            requirement until all of its existing stock of forms, 
            publications, and signs for this purpose are depleted.

           EXISTING LAW  :

          1)Authorizes each employer affected by a claim of unemployment 
            insurance (UI) benefits, within 10 days after the mailing of 
            the notice of the UI claim, to submit to EDD any facts within 
            its possession disclosing whether the claimant left the 
            employer's employ voluntarily and without good cause or left 
            due to specified circumstances including misconduct, or 
            consumption of alcoholic beverages or other intoxicants.  
           








                                                                  AB 274
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          2)Requires each employer, after being notified by EDD of a UI 
            claim, to submit within 10 days any facts known that may 
            affect the claimant's eligibility for benefits, and allows for 
            an extension for good cause. 
           
          3)Provides that if, after the 10-day period, the employer 
            acquires knowledge of facts that could not reasonably have 
            been known within the period, the employer shall within 10 
            days of acquiring that knowledge submit the facts to EDD, and 
            the 10-day period may also be extended for good cause.   
           
          4)Provides that if, after a notice of determination of UI 
            eligibility, the employer acquires knowledge of facts that may 
            affect the eligibility of the UI claimant and those facts 
            could not have reasonably been known within the 10-day period, 
            the employer shall within 10 days of acquiring that knowledge 
            submit those facts to EDD, and the 10-day period may be 
            extended for good cause.  

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, the costs associated with this bill would be minor 
          and absorbable within existing EDD resources.

           COMMENTS  : 

          1)According to the author, the existing law requires EDD to 
            provide notice of the filing of an unemployment claim to the 
            claimant's last employing unit, and requires the employer to 
            submit, within 10 days after the mailing of the notice, any 
            facts that may affect the claimant's eligibility for benefits. 
             
           
           2)The author states this bill is needed because in many 
            instances an employer is required to travel for business, and 
            it is not clear what circumstances constitute good cause to 
            extend the 10-day period to provide the required facts to EDD. 
             This bill will clarify the circumstances that constitute good 
            cause to request and obtain a time extension.  
             
             
          Analysis Prepared by  :    Manny Hernandez / INS. / (916) 319-2086


                                                                FN: 0000756








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