BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   AB 274|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 274
          Author:   Garrick (R)
          Amended:  6/14/11 in Senate
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMM.  :  5-0, 6/8/11
          AYES:  Lieu, DeSaulnier, Leno, Runner, Yee
          NO VOTE RECORDED:  Wyland, Padilla

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rules 28.8

           ASSEMBLY FLOOR  :  74-0, 5/23/11 - See last page for vote


           SUBJECT  :    Unemployment insurance benefits:  claims: right 
          to respond

           SOURCE  :     Author


           DIGEST  :    This bill requires that employers be notified of 
          the circumstances that establish good cause under which an 
          employer may get an extension from the director (from the 
          current 10 day period) to submit information to Employment 
          Development Department (EDD) regarding a claim for 
          unemployment insurance benefits. Specifically, (1) requires 
          EDD, when notifying an employer that an unemployment 
          insurance claim has been filed, to provide the employer 
          with a direct Internet Web site link to the page that 
          describes the circumstances that establish "good cause" for 
          an extension of the 10 day period, (2) specifies that the 
          link is available at (or its successor Web site address, as 
                                                           CONTINUED





                                                                AB 274
                                                                Page 
          2

          updated):  
          http://www.edd.ca.gov/UIBDG/Miscellaneous_MI_40.htm, and 
          (3) specifies that EDD shall not be required to update its 
          standard forms, publications, and signs to comply with 
          these requirements until all of its existing materials for 
          this purpose are depleted.

           ANALYSIS  :    Existing law provides for the Unemployment 
          Insurance (UI) program administered by the EDD.  The UI 
          program provides weekly unemployment insurance payments for 
          workers who lose their job through no fault of their own.  
          Eligibility for benefits requires that the claimant be able 
          to work, be seeking work, and be willing to accept a 
          suitable job.  The UI program is a federal-state program, 
          based on federal law, but executed through state law.  

          Existing law provides several definitions for good cause 
          under which an employee can leave their place of employment 
          and qualify for benefits, and establishes procedures and 
          presumption for the administration of benefits. Individuals 
          are disqualified from receiving UI benefits if it is found 
          they left work voluntarily without good cause or are 
          discharged for misconduct.  

          Existing law authorizes each employer affected by a claim 
          of UI benefits 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, 
          consumption of alcoholic beverages or other intoxicants.  
          Existing law requires each employer, after being notified 
          by EDD of a UI claim, to submit within 10 days, any facts 
          that may affect the claimant's eligibility for benefits.  
          The period during which the employer may submit these facts 
          may be extended by the director for "good cause."   

          This bill requires that employers be notified of the 
          circumstances that establish "good cause" under which an 
          employer may get an extension from the director (from the 
          current 10 day period) to submit information to EDD 
          regarding a claim for UI benefits. 

          Specifically, this bill: 


                                                           CONTINUED





                                                                AB 274
                                                                Page 
          3

          1. Requires EDD, when notifying an employer that a UI claim 
             has been filed, to provide the employer with a direct 
             Internet Web site link to the page that describes the 
             circumstances that establish "good cause" for an 
             extension of the 10 day period, during which the 
             employer may submit facts on the claim, in accordance 
             with specified procedures.

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

          3. Specifies that EDD shall not be required to update its 
             standard forms, publications, and signs to comply with 
             these requirements until all of its existing materials 
             for this purpose are depleted.

           Comments
           
          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.  Existing law also 
          authorizes the director of EDD to extend for "good cause" 
          the period during which the employer may submit these 
          facts.  On its Internet Web site, EDD states that to 
          establish good cause, the employer must present a 
          substantial reason for the delay and provides examples and 
          criteria for the extension to be granted.  

          This bill clarifies the circumstances that constitute "good 
          cause" to request and obtain a time extension by requiring 
          that EDD provide employers with a direct Internet Web site 
          link to the page that describes this criterion.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No


           ASSEMBLY FLOOR  :   74-0, 5/23/11
          AYES:  Achadjian, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 

                                                           CONTINUED





                                                                AB 274
                                                                Page 
          4

            Carter, Cedillo, Chesbro, Conway, Davis, Donnelly, Eng, 
            Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, 
            Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hern�ndez, Hill, 
            Huber, Hueso, Huffman, Jeffries, Jones, Knight, Logue, 
            Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Perea, 
            V. Manuel P�rez, Portantino, Silva, Skinner, Smyth, 
            Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, 
            Williams, Yamada, John A. P�rez
          NO VOTE RECORDED:  Alejo, Cook, Dickinson, Gorell, Lara, 
            Pan


          PQ:do  7/11/11   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

                                ****  END  ****


























                                                           CONTINUED